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tv   Mad Money  CNBC  May 5, 2020 6:00pm-7:00pm EDT

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karen? >> yeah. with this huge nasdaq run i feel like i've got to hedge some of my exposure there. i'll it will some nasdaq qqq calls tomorrow. >> guy guy? >> pfizer drug 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 is not just to entertain you, but to educate, teach put this into contact. call me 1-800-743-cnbc tweet me @jimcramer. is this whole move up --
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whole move, just fueled by wishful thinking are we whistling past the graveyard here after a strong day dow gained 133 points, up more in the beginning. nasdaq climbed 1.3%. i think those are the wrong explanations it's not wishful thinking. it's that i keep telling you that we have two markets, right. i told you why the s&p doesn't work any more. we have two markets. we have all that stuff that went down and i'm going to go over that and then, of course, what's in the nasdaq in science and technology that's what's responsible for the phenomenal move. the nasdaq is barely down for the year yeah, and the bad market, the industrials, travel leisure stocks everything gets dinged even on a big up day like this one. right now there is genuine excitement on wall street that we could maybe be returning to something close to normalcy.
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we know it's ridiculously high people didn't get their stimulus checks, the pay row protection program, money will float, small business employees consumers have been cooped up. some will go out and eat although it's hard in the age of physical distancing. i'll go into that later. that's not what's at stake here. today we started hearing new chatter, i'm not a believer, but new chatter, we might be on the same path which is china we know they botched the response to the virus. so did we. regardless of how i feel about china, the fact is their economy is on the right trajectory they got covid under control now business is coming back. some places it's roaring back. we're only three or four months behind china if we're aware of where china
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was in february, the near term future is still pretty grim. china has been scarred by this whole experience, but they have the only fully function allie economy in the whole world and people are spending money again. that's the trajectory we want to be on. i know dr. anthony fauci hasn't been making these claims if anything, he expects a belief blow over for the summer before the virus is full blast in the fall read the national geographic interview. i'm inclined to believe it what do i know he's brilliant if a less smooth china-style rebound is a possibility, not something i'm banking on but a possibility, still a big deal. my view, look, i'm not saying about the hardest hit parts of the economy. even if we officially reopen, restaurants will only be able to operate at a fraction of their capacity same for movie theaters, shopping malls, theme parks as we'll hear from disney i doubt there is a back lock of people who want to fly or take cruises at disney. it will sting until we get a vaccine. i think it will be a timetable
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that is longer than what the president says hate him or like him, he's not the guy that will determine or even has the, let's say the team even that could explain. no one knows when we're going to get a vaccine. we have to stop being so bullish about it why? not because our team isn't the best it is. the doctors are great, the scientists are great that's because the darn thing is so pernicious. it's nefarious and it's always morphing there are industries that should do much, much better for example, did you know we're having a health care recession this is the first time we've had a health care recession in my lifetime doctors and dentists across the country have had to close their practice they're fighting the covid we'll hear more. as states start to lift their lockdowns, i think the beginning of the end for the health care recession has finally arisen look at the phenomenal run, but not far enough in the stock of abbvie, wall street loved this deal at first,
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then the outbreak started and put the kibosh on businesses botox, can't get your wrinkles smooth if your dermatologist's office is closed even though it's cash pay business now dermatologists are opening for business and pent-up demand is huge. the c.e.o. richard gonzalez predicted on the conference call last week. before the pandemic there was the selfie generation. the brilliancy of he este laude generation, zoom can make you look bad it's not flattering. the american brain foundation award ceremony, ireceived the award for advocacy looking at my face on the screen for two hours was unnerving to say the least. get me to the dermatologist for heaven's sake. you have no idea how much effort goes into making this face presentable for tv if anything, the zoom generation
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demands more than cosmetics. that's why reopening the economy is good news for the esthetic business especially with the 5.5% yield lots of people don't look -- they hate the way they look on zoom second, once the lockdown is lifted you'll finally have a reason to drive somewhere other than the closest grocery store when you drive you use gasoline. i gave my bust and buy oil trade. had a sustained run ever since be careful with oil because longer term they're not great nfr investments, but i still like chevron. they had a great quarter i'm not kidding. dividend, they've got no problem paying doing better when the economy reopens. what's really leading this market is the nasdaq right now the nasdaq is powered by tech and life science these groups have been unstoppable for the past couple of days and have been great throughout this pandemic tech, okay, we have to be thinking tech and life science keep saying those two terms when
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we're down a lot tech turned positive today thanks to the pin action from skyworks solutions had them on a bunch of times reported an amazing quarter last night. company seeing fantastic strength in wireless infrastructure the internet of things machine to machine, medical, even autos but the best part, though, was the incredible order from hand scent makers worldwide skyworks rely on skyworks to power the innered of their 5g phones the longest customers are ordering like crazy. while he's not allowed to mention appleby name, first of all, the apple supply club, you don't talk about the apple supply club, i have to believe they're a major part of it hence wh why apple rallied nicely >> buy, buy, buy >> hallelujah. >> they weren't on the same quarter i was. maybe the apple bank quarter remember those guys?
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listen, we all love zoom in addition to making us look bad, they had trouble handling the new capacity, that herky jerky thing. always look like your eyes are closed come on, it freezes at the worst possible times here's how i see it. billions of people -- i had to do that -- across the globe discovered why we need 5g. it's because of -- you know what i mean it's unreliable. it's unnerving and it's depressing again, sensational demand for tech isn't happening despite covid. it's happening because of covid! when you work from home, you need a sophisticated set-up for your home office, which means buying lots of tech hardware that means a lot of semis. a lot of semi equipment. yes, the capital equipment like lamb research, all without our economy doing much at all. china is driving the bus the last, what, seven tweets were more positive about china the last two things moments ago
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thing. meanwhile there's the other pillar of nasdaq, science, by which i mean pharma and biotech. pfizer just started human trials for the covid trial. how great is meg tirrell she was all over that thing like a cheap suit today regeneron has a two-prong approach they're working on a novel antibody cocktail that should be ready for trials in june along with an off the shelf moon shine, rheumatoid tloits that relieves symptoms. pharma i have great hopes for. remember we need to beat this virus anyway we can. not tough to make vaccine. if it gets in you, we can beat it it has everybody down, as it should regeneron rallied 32 points. surprising strength in drugs holy cow, the numbers were great. eye care franchise holding up well extraordinary new anti-cancer pipeline the pin action for regeneron
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caused it to run wayfair reported monster numbers. retail shows us what's working what a wake up call. it took amazon, etsy, pay pal, all the e commerce we have two markets. all the stuff that propelled the averages, the second the market that looks very different. once again, the banks are barely hanging in there i don't trust the bank stocks at all. the brick and mortar retailers got hit. i trust them not at all. giant containable company. aerospace is awful oh, and in-home versus outdoor entertainment, let's put it right there. activism blizzard gave us a's block buster quarter disney suspending its semiannual dividend, wow. bottom line, the part of the market that's working health care technology, life sciences, e-commerce doing so well that it steers the pain in travel, leash y leisure, banking, retail those are 0 down
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on a day like today, it feels like they simply don't matter. how about we go to giorgio in illinois. giorgio. >> caller: mr. cramer, i am an action alerts member >> thank you, buddy. thank you. >> caller: truly appreciate it with the focus of work at home stocks, this company in february said that it is aiming for profitability by the end of this year why hasn't drop box had the activity like most >> well, i think because in the end, drop box has a looming and powerful adversary microsoft that quarter i thought was okay, though i think dropbox -- i've been buying dropbox -- i like dropbox. i'm been wrong because microsoft was so powerful. i say the last quarter was good. i say hang in.
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we have two markets. the strength is what's mas maskg the pain in the other. life science and 5g because the zoom generation. it's okay to laugh for once. change higher education for good i'm talking to the c.e.o then we'll waltz back to business when things reopen. i don't know, i'll tell you why it's not going to be that easy in times of pandemic it's flying under the radar of many investors. do not miss my sit-down with the c.e.o. stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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♪ ♪ okay, look at this incredible run it was the talk of the town today. it's the on demand interconnected learning platform which racked up 30% today, and not a take-over. here's a company with a big tektd book business. they've been trying to pivot digital learning the only kind of learning we can do during the pandemic last time we learned how well they were doing, eight massive top and bottom line beat with terrific guidance the next quarter. the star of the show even better, management described the growth accelerated through march and april. that's right, accelerated revenue growth as more and more students were stuck at home. let's takea closer look at dan
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the cochairman and president and c.e.o. of chegg, known as a great guy to everybody in the valley more about the quarter and where the company is headed. welcome back to "mad money." >> mr. cramer, how are you in your honor, i'm carrying my mask >> i like that thank you for the follow, too. okay, let's go right to it i've got to ask you, what do you think are the lessons from covid-19 and the impact of the future of higher education on chegg? >> jim, when we sat down probably for the first time in three years and three months ago the stock was at 3, you're the only person that gave us an opportunity to speak and you backed up back then. we said that we believe that inevitably people were going to move online, need to learn online, need more online support and help need to learn in different languages, different subjects, different questions that need to be on demand and it needed to be high quality and it needed to be
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affordable what we saw literally almost overnight in the middle of march, we were already having a great first quarter. we were set to do our numbers. we saw a 2% overall growth rate increase just in the lat two weeks. and that is going into april on much higher number we're predicting the growth rate will be 45% for q2 on top of the biggest numbers we've ever had the lessons here are if you have things that are relevant and affordable and high quality, and people understand the value, that you can really help them out during a very difficult time >> i think we ought to talk a little more. i wasn't going to go this way, but the affordability. you've been $1495 forever, you've been giving people more of a bargain that's what samwalton taught us nobody follows it but you. >> amazon did for a long time, which is they kept lowering the prices and getting more value. >> that's true >> the reality is in the world
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of technology, things ought to be able to be cheaper. you ought to be able to be more personalized, more relevant, and add more things and respond instantly. it's one of the great things about our business model, which is we own the customer, we own the data, we own the cart, we own all the content. as a result of that we should be able to provide more value to each person individually and collectively and as you point out, we've had the same price for ten years we've been able to make more money at it because the cost to customer acquisition is declining, renewal rate has gone up, cancel rates has gone down like the old software model in march. >> right your conference call was a classic in terms of understanding things one of the things i thought was most impressive also was the great fortune magazine about you. the cost of higher education has gotten out of hand chegg seems to be the only one, not the government, not the boards because they're protecting the institution as
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you said, certainly not the professors it's just chegg. chegg is the only thing making it less expensive. >> well, you know, we learned a long time ago that by putting the student first, who is the most important person in the higher education system? it's not the institution, not the professor, not the administration, not the publishers, it's not the bookstore. it's the student and they need to be treated like they're the customer as opposed to somebody taking a toll every time they do something and so we built our business around student first as a result of that we've been able to keep lower prices, make our quality higher, add more services, and we have been rewarded handsomely by students because, as you know and your daughters were chegg users, that if you focus on them instead of try to take from them, they will become incredibly loyal and recommend you at levels we have never seen before. >> complete word of mouth, that's how they found out about
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it let me ask you, the question my friend david faber is asking, everybody is asking, what's going to happen in the fall, dan? >> yeah, well, that's not knowable at the moment, but here's what we do know we do know the economic factor is out, which is colleges have to open one way or the other because economically they'll go out of business if they don't. even when the largest schools -- and i know you're a harvard guy, stanford where we live, they have endowments of $1,000,000,027,000,000,000 and they're cutting salaries of administration we know the operating budgets of these schools are too high for their revenues so they're going to have to open no matter what the question is whether they open online first and then move in january on campus, or they do a hybrid in some states where they feel more comfortable and then what are freshmen going to do? all our research says 20% are questioning whether or not they should go in the fall anyway they can't really take a gap here there's no place to travel and
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no jobs to have. so what we think is starting to happen and what we think is going to happen, is even though they don't go, international students in particular, are going to start taking online classes like crazy and even the state of california has lowered their prices because they realize for the first time they're in a price war >> well, that's your sweet spot. once again, that's chegg >> we tend to do well in a value creation opportunity, yes. >> i spoke to my friend chuck robbins because he heard you were on. everybody likes you, in the valley he said the guy does for charity what you can't believe i know, and my daughter was a crisis counselor for a long time this crisis text line.org may be the most important thing you've done because, dan, people are the highest, most tense, challenged and upset i've ever seen it. >> jim, thank you for bringing that up. chuck has been remarkable. he created operation backyard in silicon valley
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through that we donated $250,000 to food safety because of the leadership that chuck has shown. but in this case because of his mental health awareness month, because it is giving tuesday and because we have the honor of being on "mad money," we are donating today to crisis text hotline for exactly the reasons you said, the mental health issues, anxiety issues, stress issues, issues increased alcoholism, drug use, depression these are things that we can't afford to let happen to the future of america, our children. so we're sponsoring the channel specifically for students to be able to reach the text line.org. the volume has gone up so high we don't have enough counselors. even though they don't chanch, they need money to pay the counselors we're thrilled to make that donation specifically to crisis text line.org. thank you for bringing that up because nothing matters more right now. >> when my daughter was on that suicide hot lane, it's not a very lucrative and it is one of the most stressful jobs in the world.
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>> what could possibly be more important than that except maybe being on the front lines of corona right now >> exactly dan, thank you in three bucs, man, we got it right. you and me, all right, buddy >> you more than me, but i'm happy we delivered for you thank you, jim >> thank you that's dan i've known him for years chegg c.e.o., president and cochairman congratulations to you will a of you who stayed with dan. of course, you should have stay with cramer ♪
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there is one teensy tiny problem with in this whole plan. money in the time of covid is a nightmare. i know our government has a lot of money in small businesses, but how the heck do you run a business when it's pretty much illegal to turn a profit as a part owner of a couple restaurants, i've been itching to hit the ground running when we reopen. it's more complicated than opening our doors again. nobody knows and the rules what it's going to be like health wise we did get a glimpse with the thing called the tennessee pledge it's new rules and regulation including reopening for restaurants that we got from tennessee's governor bill lee. it's safe and healthy for the customer which is great no restaurants can possibly obey them let me give you the specs. first, when a customer shows up you have to ask if they've been in close contact with a case of covid-19, cough, shortness of breath, sore throat, a fever you have to take their temperature. they'll love that.
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over 100.4 degrees, no business. tables are 6 feet apart. 6 feet apart from one of our restaurants, the financial one, we can only use four out of 11 tables. we have to take out seven tables you can't have more than six people at any given table. make it up at the bar you ponder no bar, closed that's the biggest profit center for most restaurants it's shutdown until the states get a better handle on the virus. i take this virus very seriously. i want us to do everything in our power to beat it i'm glad the state of tennessee understands you have to choose between the health of the people and profitability of small businesses, it's the right this can to do. from the perspective of a small business owner all i can do is say, well, check, please no, not the one you give the customers. i'm talking about the check you have to write back to the federal government when you return the payroll protection money because it makes more
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financial sense to shutdown permanently. can we make it up and take out delivery, you say? unless you have the scale to make good food at reasonable prices and pick up lanes like chipotle, it's almost difficult. you have to turn a profit to have people come in with those few tables we have who is going to pay that so what's the real take away here look, i don't have a solution to this these rules are necessary to keep people from getting sick. it would be fantastic for the larger operators with deeper pockets who have the wherewithal to survive the difficult period. once we get a vaccine we'll take over the world you think we're saturated with starbucks now? most small coffee shops won't be able to survive. i can see darden picking and choosing at malls to make olive garden one of the tsu sfew sit-n restaurants people can go to you can eat by either stock of
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darden -- it's not my favorite -- certainly starbucks which is if the tennessee pledge turns out to be a model for the rest of the country these aren't the harshest rules i've seen. others are going to air flow changes to stem the flow of covid. it can be spread by air conditioners 1300 people work in the restaurant industry. they did a few months ago. i know it won't be many. i bet 20, 30% of the bar restaurants won't reopen in the country. what's the antedote? like everything else, the vaccine. can't come soon enough garrett in georgia garrett. >> caller: hey, jim, i'm sticking my call happy birthday to my mom in dallas extended giant thank you to you, your team and entire cnbc staff for the unbelievable work you guys have done in the last two months >> thank you for recognizing it's a difficult time. thank you. thank you. >> caller: you guys make it look easy >> thank you
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>> caller: given the amount of professionals and students pivoting to virtual meanings and continued growth in gaming, what do you think the return to january highs due out next monday of logitech >> i think it's good they have a lot of stuff you need for virtual zoom like guy partners of zoom it's been a very good stock. we've been behind it for a long time and we're sticking with it. all right. running a business right now a nightmare. we need a vaccine. small business obviously a big business -- much more "mad money" ahead looking fora lesser known stoc that's poise today get a tail wind from the pandemic i'll reveal the name in my sit-down with the c.e.o. a company whose product can help save the lives of the coronavirus patients running into trouble battling the virus at home. don't miss my exclusive interview. your calls rapid fire in tonight's edition of lightning round. so stay with cramer. including netflix, prime video, youtube and hulu.
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this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over, we...will...never...quit.
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because they never quit. ♪ ♪ we've spent a lot of time telling you about companies that can survive and even thrive during the coronavirus but there is an elite group of these covid-19 winners that almost seem like they were made for this exact moment. take a company called ever bridge a software service company in a critical event management business they help public and private organizations automate and accelerate responses to horrible situations think terrorist attacks, national disasters, a pandemic they reported an amazingly strong close beat, better than expected sales. year over year, at a time many companies are pulling their guidance, these guys actually raise their full year forecast they're not profitable yet, but
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19 cent loss for 2020, down huge from previous forecast, 75 to 77 cent loss. they're in the right place we have a big win, stock under 190 when we first recommended t. let's dig deep with the c.e.o. of everbridge to get a better read on the quarter. welcome back to "mad money." >> hey, jim. thanks for having me it's great to be back. >> excellent you've done a lot of great stuff lately, and one of the things i'm really interested in hearing about is this return to work software solution because it dovetails with what mark benioff talked about you talk about contact tracing how do you help a company if i bring you in, everbridge, return to work? >> thanks, jim, i really want to talk about that.
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i first want to say thank you to our first responders, our front line health care workers and all the essential workers out there. we've got almost all of our employeesworking remotely now. not everybody can do that and they're sacrificing for all of us we appreciate all those workers. we're supporting about 3700 first responder organizations, 1500 [ inaudible ] new york city, florida, california, connecticut, vermont and i can tell you our state and local government officials are working around the clock to keep their people safe. just a lot of respect and appreciation to your question, and thanks to you, by the way, jim, because you and cnbc have been out in front on educating the public on the coronavirus from day one and you're doing a great job so thank you to your question on the return to work solution that we launched today, we have three
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major customer segments for this the first are businesses so if you're a business right now, say you're a multinational and you're trying to go back to work and you have offices in multiple countries and multiple sti cities around the world, you have different guidelines, you have to take the temperature, immunity pass if we have such things, different guidelines, different rules, you have to keep track of all that you have to keep your people safe you have to keep your operation running. and you have to keep your supply chain running at a time there are disruptions happening now. we've done an enterprise wide platform that will manage all that for you in a digital manner, digital transformation, and that does include contact tracing. so we're already integrated now with 225 out of the box system integrations including things like your physical access controls in the building, your calendaring systems, your visitor management, your travel systems. so we have a mobile app and
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other ways we can communicate to do wellness checks of employees if someone has symptoms or someone has been exposed, we're able to quickly use our system to find out who else that works at the company have they been exposed to the last couple of weeks. >> a key thing >> isolation control management, communication of that really quickly. i think it's important to point out we want a vaccine. until we get it, we've got to leverage technology to keep people safe and get back to work as best we can >> absolutely. >> on the government side, we're doing some really exciting work. the country of norway is one example. we get to work at countries around the world >> david, i think the vermont initiative -- covid-19 social distancing is a hot button in our country right now. >> vermont, it's amazing what
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they did so, the legislature in vermont for the first time ever are doing social distancing and remote voting. so they're keeping their staffers safe, keeping their legislators safe they've been able in a secure -- and fast way to manage dozens of critical votes a lot about coronavirus and keeping people safe. you can look at a lot of other legislatures across the country. i think it's a great best practice vermont has been doing. we've worked with vermont for years at the statewide level we worked with the state police. we're honored and excited to be supporting their legislature with that social distancing. >> one last question what do you do for shopify which is about to report >> so, we got a bunch of great new logos we added last quarter. shopify is one of them they keep track of their people,
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coordinate communication, help them get back to work. that's a deal that closed in the last quarter a couple other big deals, bristol myers squib, cuisine a full cem customer. also helping with their supply chain. cisco which is a giant, 75,000 employees, 500 offices, we're protecting all their employees, all their sites. that's another cm deal we won in q1 >> look, i think you're doing terrific unbelievable growth and fantastic guidance i'm glad someone gave guidance i want to thank david meredith, c.e.o. of everbridge thank you very much, sir congratulations. >> thanks for having me, jim thank you. >> this is a company that was basically set up, just set up for this moment. "mad money" is back after the break.
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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 ] >> and then the lightning round is over. are you ready, ski daddy start with john in california. john >> caller: booyah, jim >> booyah. >> caller: i love dexcom late march i bought a small position in a diabetes company >> these things have shortage wrong. dexcom is my fave. you know that. we talked about it ten times tandem is a good company let's go to sean in new york
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sean >> caller: booyah, jim >> booyah. >> caller: are tanker companies rolling in cash because of -- after a record april, with the stock still trading roughly 50% below january levels and not upping their dividend, do you think it's a buy back? >> no, these are trading stocks. we must always know that the tafrpgers are traders. and they don't offer necessarily a lot of value or necessarily do the right thing at various times. you have to be very care ful let's go to lori in pennsylvania lori >> caller: hi, jim, it's lori from eagles nation how are you? >> bleeding green this week. i thought we did okay frankly. what i want is the season, and that i'm not so sure about what have we got >> caller: they say we're going to get it. hopefully we'll get it
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i don't know, i think it would have been the biggest news if it wasn't for sadly this -- >> we have to go more stock oriented because dr. fauci isn't in the nfl go ahead >> caller: listen, i'm considering a numero unioo wheni comes to investing i think it will do well in this turmoil. called lpl familinancial >> it's a financial. it says everything you need to know we're not recommending any financial on the show except for the fentech stories. let's go to darcy in new jersey darcy. >> caller: booyah. >> booyah. >> caller: it's so great to talk to you >> same. hello? >> caller: can you hear me >> i'm ready for you interesting lightning round. i hear you >> caller: i just wondered based on everything that you've taught
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me and everything from your books, i mean, that's the bible. >> thank you >> caller: i'm looking at, you know, my two little kids >> love them okay okay, go ahead yeah >> caller: what are we looking at in terms of carvana >> i don't know how they make money, but a convenient way to buy a car. they need to start making money. they have an interesting business model not clear do me. it's very convenient let's go to eric in florida. eric >> caller: hey, booyah, jim, from sunny miami, florida. >> yes >> caller: i love your show, watch it every day listen, i bought a nice chunk of jpm, jpmorgan chase in mid-march and i'm looking to go for the long run >> that's what's important
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a bit of a hold right now. the market is divided between life sciences and tech against financial, industrial, travel, leisure, industry. so -- manufacturing. so that right now is an out of favor stock. one day it will be back in favor after the pandemic ends. let's go to joe in virginia. joe. >> >> caller: hey, jim, booyah. >> booyah. >> caller: thank you for all that you do for us i've been watching the show for a couple months now, i've had some great results, so thank you so much. >> you're welcome. >> caller: i've got a quick question for you >> all right >> caller: i want to know what do you think of cosar group? >> i like it, kind of a fentech. it's not the same industry i like mastercard more and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade
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♪ ♪ we keep coming back to the covid-19 winners the companies that actually benefit from the pandemic. tonight i've got another one for you, massimo here's a medical device company that makes noninvasive systems especially pulse systems that monitor your oxygen levels as the virus spread, we needed a lot more of these machines because more i.c.u. patients means more sales plus they have come up with new products like a remote patient
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monitoring platform that allows health care workers to keep track of your vitals from a safe distance oh, in march we learned they're acquiring a ventilator company we desperately need right now. no wonder the stock surged to a new all-time high. don't take it for me check in with the c.e.o. of masimo learn more how the company is handling the pandemic. welcome back to "mad money." >> great to be with you, jim >> sir, i think that your company is performing a service that i want people to understand it's two parts one, i have the masimo safety net, plus i check four times a day the pulse oximeter it's more important than the thermometer. people don't understand how contagious it is to go into a patient's room versus what you offer. explain. >> well, we have been around for 31 years as you know, jim. as my wife said, feels like
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everything we've done has been for this moment. >> yes >> from inventing a technology set pulse oximetry, when the patient is moving, has low blood flow to making it wireless so as you said, you can put the patient in the room, let's say the i.c.u. bed, bring the monitor outside of the room, and instead of walking into the room to check on the vital signs of the patient which means you've got to put the p.p.e. equipment on and maybe waste what there is, not enough to go around anyway, you can remotely monitor the patient. and when you need to go inside, you go inside the room to give care to the patient. >> joe, most people around the country do not know that it's that contagious, and that that 7 feet they walk through can be a death sentence if they don't have the right equipment and most people ran out of equipment very quickly because they never thought that you'd be
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so contagious to just go see the patient. >> yeah, it's really hard to put your head around that. but unfortunately as a study at m.i.t. showed, when someone sneezes or coughs, it's 30 feet of air that will have the aerosol in it. that wasn't the covid-19 aerosol, but others. so 6 feet is really the minimum, so you need protective gear. and something you said earlier about the thermometer. you know, unlike the thermometer, which any thermometer you buy, whether it's got a cool u.i. or not, is going to be accurate pulse oximeters aren't all accurate unfortunately, even the good ones from the hospital suffer from patients moving or have low profusion and the knock offs coming out of china, they can't track the saturation most of them >> i have a knockoff with me and
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i tried to knockoff three times. i should be in the hospital right now, three times i'm the healthiest guy in america. there is a great difference. one "comfort" me -- yours is down $30 on amazon this is not what you want. you want the complete system one is just a thing -- it's a gimmick. but what you did do is create this system you just mentioned where you can go home, the safer place, and monitor yourself. you can't be in that hospital once you have it and you're sitting in safety zone you want to be monitored at home >> yes for many reasons one, when the surge happened like places in new york, ohio, there weren't enough beds for every patient. so the same exact technology that's been used in hospital that we developed over 30 years ago over 2 billion people are being monitored. we now have made it possible to send patients outside the hospital, including the home, which is probably the most
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comfortable in, and allow them to remotely monitor you so that if you get in trouble, like some patients have, they can bring you right in and if you're fine and recovering, you can be at your home where it's less chance of others getting the disease or less chance of you getting other disease. and hopefully recover. >> we should talk about the safety net and the reason that's so important, explain to us, it has to do with the lungs are the pressure point here. knowing how they're doing can really only be measured safely by masimo. correct? >> that is correct like the doctor said on the webinar we did a few weeks ago, he said they can only do this because they trust our monitor to give them real actionable data and not have all the false alarms they even make pulse
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oximeters -- in the home setting where the clinician can't get to the patient by quick walk. >> well, you're in a unique position you see the order book are people -- are the big hospital chains pessimistic or optimistic judging by how much they're ordering from you? >> pessimistic we got a lot of orders starting march and april has continued as i mentioned in our earnings call and a masimo safety net, we only announced the full market release of this product a little over two weeks ago and we went from at the time two hospitals implementing it, including a pilot hospital, university hospital who helped us tweak the product and get it ready for market we've gone now to 81 hospitals implementing it and another 785 hospitals in the que >> is that because of the great video you did? it was compelling.
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ultimate fight it was so explanatory. they must be ordering off the video. >> well, it is, but it's also a really low-cost way to scale, a really good way to protect the patients and protect the care providers by sending them somewhere else unless they need to be in the i.c.u >> wow one last thing i should ask you, running out of time, but the ventilator acquisition, small but valuable >> extremely look, first of all, this company makes the quietest, best high-flow ventilation. this is human air, creates its own oxygen so it's cleared not just for hospitals, but home use. >> oh, okay. >> and anecdotal data shows this product actually helps people with covid-19 do better. now, of course, in extreme situations they'll need invasive ventilator but if you can use this at the
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beginning and avoid needing that invasive ventilator it will be phenomenal the only downside is that because you're not closing the loop, there will be aerosol in the room from the patient breathing out. so might be more dangerous for the care providers but at home, when you're sending these patients home with our masimo safety to monitor them, prophylactically they might help the patient not need to come to the i.c.u. >> well, joe, you're at the front lines, most certain, and your people have done terrific thank you for coming on and explaining why masimo is just, yes, that you've worked your whole life for this moment congratulations. you've done it thank you, sir >> thanks for having me. >> that's joe kini, c.e.o. of the company. now you know why the stock has been so great. stick with cramer.
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confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org. so on at which timer, you're too negative on the morning show first, there's a pandemic. not great. but when you're watching, this is disney suspends the dividend, you're like, holy cow, west rock cuts then, sure, you have some great technology stocks doing really well and some great life science stocks that's about it. i always like to say there's a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer i'll see you tomorrow. "markets in turmoil" with my friend scott wapner is coming up now.
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good evening i'm scott wapner on day 128 of the coronavirus crisis new details on a bombshell whistle-blower complaint against the trump administration in there's no reason to rush back new fears a new out break is iminnocent how intelligence officer

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