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tv   Mad Money  CNBC  May 15, 2020 6:00pm-7:00pm EDT

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at 5:30 p.m. eastern time for a full show. do not go anywhere, mad money starts right now have a great weekend, everybody. stay safe. 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 my job is not only to train but also to teach. or tweet me at jim cramer. nice comeback. we started today deep in the hole after an escalation of the new
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revived trade war with china this time, the chinese are threatening to label some of our best companies as unreliable, meaning they won't be able to sell in the people's republic. then we got some mid retail sales numbers that weren't just bad. they were grapes of wrath bad. but just when it looked like it would turn into a -- the buyers came right back. plus, all sorts of companies keep reporting and telling us that april was much better than march, which bodes well for may. s&p advanced 3.9%. nasdaq gained. what a turn. now, that in mind, what's on tap for next week? well, first, i'm dreading we'll come in on monday and hear about an escalation. the president's new containment strategy against china the market got hit earlier today because we are getting tough on
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huawei, the huge chinese company that the white house views as an unofficial farm of t unofficial arm of the communist party. there is a legitimate concern and if we give it to them, it is a security risk. okay it it's something he did before back at the height of the trade view regular viewers know i think we've been and i still think it's an important thing to take a hard line against huawei. but there are two problem s with that approach. right now, there's two problems. first, leaked that several american tech companies, including cisco, they don't have much business in china, don't worry. qualcomm and apple might be investigated and end up on the unreliables list yeah that's right how unreliable is this yeah
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on the unreliable list same with boeing some think that but i don't, which needs every customer it can get. second, the timing is all wrong. it's one thing to start a trade war with china when you got 4% unemployment and booming economy. 30 maybe even 40 million people might be out of work thanks to the pandemic not us, the pandemic you know started a trade war going into a depression, don't you? herbert hoover rule of thumb. go google smoot hallie tariff. it was a disaster. you know, they gained cities after hoover they called them hoovervilles. no need to repeat that what we need is a deescalation president promising we'll have a vaccine and a huge year for the economy in 2021. i've heard him say this many times. right now, things are looking too much like the 1930s for my taste. i always felt if i got in any
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sort of position of influence, i would just shout it from the rooftops i am shouting it from the rooftops that said, if we get nothing ne in the china front, we rally into tuesday tuesday, brick and mortar season starts off with a bang when we hear from two essential retailers. home depot and walmart given that they have been allowed to stay home, i'm expecting great numbers. remember, they wiped out all the rest of the competition by closing them hence, ppp, hence terrible unemployment, hence, hence, hence. maybe we're get some positive forecasts from these guys because the spring weather i'm betting walmart will deliver fabulous digital growth. maybe 35-40% home depot however, we also hear from nonessential retailer kohl's we're not going to like what they have to say not only has kohl's had to shut down stores but fedex has capped service to these guys. given that kohl's used to handle amazon's in-person returns when they were open, losing that fedex status is a problem.
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of course, they are finally opening stores which is good news and i'm sure they'll talk about pent-up demand and i'm sure there will be buyers coming in i'm sure it's going to rally and there will be some sort of short squeeze. you know what? sell okay that's your opportunity. take it. wednesday, two more essential changes. again, that means they were allow today stay open. and these are target and lowe's. we know target's crushing it with online business i'm urging you not to focus on the margins. as for lowe's, we need to keep hearing about improvements in their digital division maybe a great start to their gardening season, which they used to own, by the way. and that would be enough for the stock to work. after the close, take two interactive reports. this video game maker. i want to know how well their nba 2k franchise does without the nba. is the business still hot in china? what's the strange deal with the nfl all about? ceo was not happy with this last
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quarter and i'm betting he won't be disappointed twice in a row this is a great time for vid eoe games by the way not that you need me to say that let's just say every single -- every single part of the video gaming universe. it doesn't matter whether it's nintendo, whether it's microsoft. it just doesn't matter it's hot speaking of travel trust names tjx, talk about not hot, thursday morning wipe the headline numbers as their stores have been closed. nonessential but tjx is opening up all around country now. with so many department stores going under, they'll be able to snap all sorts of merchandise for nothing. imagine going to get a neiman suit for like $40. right now, they got a lot of carcasses to pick clean. i think it's a buy i miss shopping there, by the way. i'm not downtown anymore then, there's best buy i expect good things how many electronic stores were
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deemed essential when i talk about how there is only a handful of chains left after the pandemic, i'm betting best buy is one of the survivors. could be up 8. unless somehow they give you a bad call next one is very tricky one. medtronic. so many surgeries are being postponed so this might not be their quarter. causing a healthcare bear market i'm concerned though i'm optimistic but i do worry because they're conservative, they say that what they have is a lot of covid stockpiling and now that's past, business might not be as strong that would be suboptimal and splunk and shopify. it's got the best data center chips, and also new inference chips that understand verbal commands leak an actual human. smarter than humans and also more sensitive ceo jensen wong is a visionary what's not to like maybe that the stock fell 5%, then did a u turn and finished
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up 18 for the day? as for spunk, analytic play tends to get hit because people don't understand it. then they sift the next day. finishes up three. friday's easy. one, good. two, not so good some people want me to recommend bidu on monday i'm not doing that because of containment strategy yes, by mr. x, george kent this is the time for alibaba i mean, look, they're at home, too. they got nothing to do well, they go to work and then they come home then there's deer. not so good. we keep hearing farmers are herding. when they're herding, they're not buying equipment bottom line. as unemployment keeps rising, i am betting we'll get more stimulus, more bonds bought, more money fleeing away from the markets losers and into the winners like the cramer covid-19 index. that's what works unless we have a full-blown trade war with china, in which case all bets are off, even as i sure would
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have favored it before covid, decimated u.s. economy all right. let's go to spencer in florida spencer. >> boo-ya, cramer. >> boo-ya. >> with the taiwan semiconductor recently coming out and announcing the construction of a $12 million plant in arizona. >> yes. >> and the price point coming down a little bit today, you think it's a good time to get in >> i like taiwan semi very much. that is the best builder they understand how to build better than anyone this is a foundry. don't build foundries. no taiwan semi does i like it. and i congratulate them for building one in the right country. john in pennsylvania john >> jim boo ya i want to say thank you. you've made me a wealthy man thank you. >> i like that
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thank you. well, i like to hear that. thank you. >> you've helped me so much. anyway, my question is about microsoft. maybe you've heard of 'em. okay >> i brought 'em public. >> the teams, x box, and a dominance in revenue in 360 and windows. but they're getting expensive with the t above 30. do you think they will split and at sell? at what price do you think they will >> no, they shouldn't split. remember, when we were talking about splitting, do we really create value we got a pencil, right see this not allowed to have people working here anymore because of covid. and you see you have one, right? and then we split it do you have like a lot more value? i don't think so there you go joe in washington. joe. >> how you doing today >> couldn't be better. thanks for asking the chill man. what's going on? >> not much.
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i just want to say thanks for taking my call and i want to thank your eagles. great for the chiefs so got a question about the cramer family favorite octa. >> oh, my god, octa? can you believe that that thing is a horse, isn't it? todd mckinnon. now, todd, please don't take this personally. but, todd, your stock is up 57%. it went up another $4 today. you know i have been recommending your stock. this is personally addressing todd, of course. i have been recommending your stock forever but, todd, i'm going to take a pause here i got to let it come in. i got to let it come in. and it's cramer family favorite because my daughter and i went there. caught that. not just because it's one of the greatest stocks of the decade. more money fleeing away from the market's losers. people say the market's expensive. if you look at like delta, yeah, tell me about it but if we have a full-blown
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trade war with china, all bets are off. and it's hurt by the lack of food service business. so why the heck is this so strong i am going to give you my take then, live sports are mostly gone but big betting is big business. i am talking to the ceo of draft kings after today's 15% move what is that about i got to tell you they had davy on before me on -- on missy's show well, we got the draft teams guy. and wix saw a huge surge in demand i'm going to talk with the ceo stay with cramer. >> don't miss a second of "mad money. follow @jim cramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to cnbc.com or give us a call at 1-800-743-cnbc miss something head to "mad money".cnbc.com
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this bizarre, new world? what are you supposed to pay for something like beyond meat beyond meat. what do you pay for this it's losing a lot of money, right? it's hurt by all the restaurant closures and food service business yet, its stock is on fire. how is -- how is this possible here is the thing. there are good reasons for beyond meat's incredible outperformance but they are not the kind of reasons that fly with most portfolio managers first, this is zeitgeist stock right now, the meat processors are doing things that are
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downright repulsive. not just vegetarians anymore but anyone the meatpacking business is pretty gross in the best of times and now all these plants keep turning into coronavirus hotspots how long does it even last on chicken or pork? beef i don't know like, as much as it does on here maybe the boxes from amazon? i don't know nobody wants to be asking that kind of question, though, when they sit down for dinner where's upton sinclair when we need him suddenly, seem a lot more enticing amazingly, ceo ethan brown is taking advantage of meat companies like tyson, by actually cutting prices. incurring more short-term profits. he believes if people try it, they'll like the taste like i do, and he is going to drive down the cost. and by the way, everyone who is so worried about the label does so much stuff and it's getting better and better and better okay and no gmo, either now, some portfolio managers might think the stock's going up
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because there is a deal in the works with starbucks to expand beyond their current joint venture in china maybe. could be but i don't think that's why it's going on. the real reason beyond meat's strength, what's behind it, the stocks favor the robin hood crowd. the 10 million mostly younger investors and got their eyes on the future eyes on the prize. and as far as they are concerned, the future's never been brighter than these plant-based meal alternatives. i always say it's an ethos, not a stock. think bigger than yourself, for heaven sake. every once in a while, stop being trapped by the spreadsheet. or think of it like this this is a roth co, not a rembrandt. that's why so many money managers miss this one they don't want subjective parameters they want hard and fast numbers but beyond meat doesn't give you that total cold stock if you want it to go that way it's, nevertheless, a huge winner of course, young investors love tesla, too and why not? he called out his stock for
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being too expensive. not great. he can be hot tempered rather than negotiate with the alameda county official who insist his factories close, pretty much daring authorities to arrest him. i know there are analysts who believe tesla will have a big problem next year. i don't care i love the company but that's not why you own the stock. you own it because tesla's taking over the world because the future belongs to electric cars they don't even have to advertise. they're that good. the other guys have to advertise. picasso, not polaroid. here's a company that just did $1.3 billion secondary last week at $700 and now it's 767 snap that one up ecommerce is the only kind of commerce that's working here and shopify makes it much easier for smaller operators to sell things online. but you also hear from wix later. they do it, too. these stocks cannot be valued by traditional metrics. like tesla, they are taking a mass amount of market share and
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you have to judge them by the scale of opportunity post modern versus post office i don't begrudge any of these choices. beyond meat, tesla, shopify, they're run by brilliant people. you don't buy them for sales or earnings, you buy them because they might be the next amazon or netflix. that's good with me. on some modern art especially, you young people watching or for the realist, cold stocks are only one piece of the pie. but it's a piece that's worth having especially, if you are a younger investor who can afford to take some risk. mitch in new york. mitch. >> hi, how are you mr. cramer, big boo-ya from convenienc queens, new york hope you and your family are doing well. >> what's going on >> so start with property trust. trading about half its value between january and february and with the company stating a couple of months ago that they have 800 to $870 million in
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reserve in cash. would you recommend increasing position or even purchasing shares of the company? >> i like barry's very much. but i also am hard nose about a stock that yields 16%. what that has historically said is that yield will not stand now, barry may be the sole exception to that rule and it would be the sole because he's that good. but i need to hear him come on the show, and say my board says this is a valid distribution, and we're going to pay it. then i'm interested. hey, let's go to john in kentucky john. >> hey, jim. thanks for having me, man. question in regards to texas roadhouse. what do you think the short-term impact will have on their stock now that their dividends are suspended. second-quarter earnings coming out, rise in meat prices, and limited restaurant capacity? >> didn't we hear that oh, texas roadhouse?
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since the opening, they've had some good numbers. it's obviously very difficult. you have to remodel everything in the restaurant business but they're a survivor does that mean they're a thriver? i don't know i'm in the restaurant business let's just say they're a survivor all right. valuing stocks in this world is no easy task but some of these stocks, you got to take them as, maybe, matisse, you got me? now, much more "mad money" ahead, including my exclusive with draft kings as pro sports return around the world, how is the company positioning itself if you want to bet on nascar this weekend, you know where to go with demands for websites through the roof, can the move higher in wix continue i got the ceo and he is a wild man. and how to former intel employees are fighting america's 150 million ton, single-use plastic addiction. maybe they can solve the floating -- stay with cramer
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here's the puzzle. how the heck does a fantasy, a sports stock, turn into one of the best performing stocks in the market right now at a time when sports are cancelled. three weeks ago, draft kings came public during a very complicated triple merger transaction that turned the company into a powerhouse. run even harder since the closing. wow. it combined -- started about 12 bucks at the end of march and now it's at 29 that includes of course the huge run from today four points. so what is driving this one? okay the new draft kings just reported its first quarters of public and it's also pretty solid. small earnings miss but even though most sports shut down in early march, management's confident commentary sent the stock surging. they are confident because draft kings is no longer just a daily
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fantasy sports platform. no no it's much bigger than that it's become a full-blown online casino the lack of sports obviously hurt them but all the casino closures helped. plus, some sports are finally coming back. hey. starting with nascar on sunday, and the rest may not be far behind if we're lucky enough to get an early vaccine or if they figure out how to play contactless can the stock keep climbing? let's take a look with jason robins mr. robins, congratulations, and welcome back to "mad money." >> thanks. good to see you, jim. >> i'm proud of you. and i saw your ad at the superbowl. and i was so glad about the things that are happening. you're one of the good guys. but i have to admit, at that point, we were still thinking there'd be a lot of pro sports if you were to tell me there were no pro sports, i would have said you'd lost a fortune and you'd have no revenues but you're an inventive guy.
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tell me what you did because the sales are quite good. >> hard to believe, you're right. only three months ago we saw each other it feels like a lot longer at this point you know, it's been interesting watching the team pivot to just creating content and, you know, i think, also, as you noted, we are starting to see sports come back the ufc matchup was the first fight especially was absolutely huge really, really great day for us. nascar, as you mentioned, this weekend. the match is coming up where addition to tiger and phil, they have peyton and brady this year. i think that will be really good we had really strong numbers on the nfl draft. and then people are playing things like e-sports and table tennis we actually just added live streaming for table tennis so people can watch it now while they're betting on it. >> let me ask. i mean, kyle bush favored this weekend at darlington. okay but there is these guys, timmy hall, they're 2,000 to one shots. do people just say, you know what, amy goii'm going to put fn
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it you get those kinds of gamblers? >> you know, some people like to take the long shots. other people, their preference is to create big par lays. so they take maybe less long shots but count on being right on making six, seven, eight picks correctly. so we see people, you know, approach it both ways but there's definitely an audience that love to throw a few bucks in and see if they can make, you know, thousands or more. >> my friends who know esports know that there's fascination and great gambling and that it's actually a sport that engenders a lot of transactions are you seeing that? >> well, esports was really small for us, until, you know, about two months ago and, you know, really it was the only thing for a little while that people were still playing and, you know, some sports have started to come back but esports is stuck it's been a huge growth area over the last couple months for us and hard to stay what it'll look like once, you know, the traditional sports are back. but i think a lot of people are finding it fun
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and, you know, it'sle also a matter of just getting people to try something new. you know, it's interesting we thought about how do we engage customers and esports wiz something where we knew we had a great product and if people just tried it, they would like it there was really good integration in a lot of cases with streaming and other things there. it's a really solid product i think on the fant sasy app so w were pretty excited to see that one grow we have also been running madden simulations with ea sports wher basically people can go play fantasy games and simulated nfl games using the madden technology that ea sports has. and that's been a really popular one. table tennis has really taken off. that's a sport that works contactless. so that didn't slow down too much and, you know, we are starting to see other things come back. korean baseball has actually been really popular for us i think what it shows you is there is a lot of pent-up demand for sports people are hungry for sports to
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come back. they are sitting at home they want sports and hopefully we'll see some of our favorites come back soon enough. >> you know, i was watching the espn site on draft day day before and day before i said, oh my god, there's just endless articles about who is going to get drafted first and then i realized i bet it was prompted by draft kings. i mean, you wanted knowledge so that you could bet on the draft king site. >> well, i think the draft this year was -- you know, same thing. it was kind of one of the only things going on. and we saw huge growth in draft betting and, you know, engagement year over year in terms of number of betters and i think that, you know, a lot of it was centered around who's going to go, you know, first for a particular team. so a a lot of people were probably betting their favorite teams and who they were going to pick first there was a lot of betting on qbs this year. great qb draft class so lot of people betting on which -- i think everybody kind of knew borough would go first
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didn't seem like we could give him short enough odds to get people to stop betting on him as the number one pick. so that was one everybody kind ever went for. but once it got past him, others were putting on a variety of different. there was also some crazy long-shot bets there was somebody who bet, you know, like 350 bucks i think it was on chase young going to the 49ers. it was this massive long-shot. they would have made like over $100,000 if they'd hit so it's pretty interesting to look at the variety of things people were betting on. >> you are too much fun. i have to ask another question you know that our friend affiliated with -- you like being independent? >> you know, i -- i got to admit. i am a fan of pen. they're a big partner of ours. barstool's great we know them quite well. so i think they'll do great things together and it's been funny watching i'm sure you've been watching
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his day trading things. >> of course it's hysterical. >> i think some people -- i don't know some of my friends have told me is that real i'm like i'm not 100% sure with him. >> he's turning it over like got these 400,000 to one bets he is making but look i want to wiv wish you the best of luck you're one of the good guys. and i just think you are having fun. and that's something i don't see a lot of business people having right now. that is jason robins he's chairman and ceo of draft kings, the symbol is dkng. you can see why the stock went up it's fascinating "mad money's" back after the break. (soft music)
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- [female vo] restaurants are facing a crisis. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love.
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retail sales numbers we got today. they were stunning they tell you everything you need to know about the consumer in the age of the coronavirus. numbers down 16.4% consumer spending online was up 8.4%, though see that divergence? because the internet is the only safe place to shop so we got a raging bull market in ecommerce arms dealers. companies like wix.com long a cramer fave a cloud-based web design company that helps individuals and small businesses maintain a digital presence wix is on fire more than 160% from its march lows including colossal run from 166 to 201 just the last two days while the headline results for the quarter were fine. gave some stunning commentary on how the business is holding up during the lockdown. a great achievement in itself. last month, wix saw triple digit
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growth pretty much across the board. as much as i hate to chase stocks, i liked this one for ages and i think it's worth buying into the next pullback. one of my restaurants is a satisfied client but do not take it from me let's go to avishai, he is the co-founder and ceo of wix.com to learn more about the quarter and where it it started. welcome back to "mad money." >> hello howe y how are you doing? >> we're struggling like everybody else but one thing that's not struggling is your customers because they need wix in order to be able to get their business through the pandemic, don't they >> well, we've been in this position where we had the opportunity to help a lot of businesses where t businesses with the struggle of this hard time to move their business online. to find ways to innovate and continue to do as much as they can for this time right? so it was a big opportunity for
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us and been very happy to be able to help for so many businesses. >> it's important to point out when i first got involved with you at my restaurants, you were terrific, helpful, and enabled us to be able to build a very nice-looking website but it looks like, during this period of -- of the pandemic, you're doing far more than just making nice websites >> well, yeah. a lot of the commerce went up. in fact, over 500% up, right and we see that across, pretty much, everything we see that mostly in the traditional ecommerce. we see online transaction. people that are teaching or fitness like yoga teachers and -- and it just seems like so much has moved, right? we see grocery stores where you would never guess they have a website. now, food ecommerce and doing delivery, we buy from the web.
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so we've seen a huge shift into more and more commerce >> were you surprised that certain businesses in this country were deemed nonessential and, therefore, they weren't allowed to open their brick and mortar and had to scramble and go to wix or else they would have no money coming in? >> yeah. i think it was -- well, the whole corona thing, right, was a big surprise i don't think anybody really estimate that's going to come. and i wouldn't give governments the best grade on how they handle it. i would, however, give lot of small business an a-plus on the innovation they came up with we had things like swimming pools that were one lane yes, one lane no. one lane yes, one lane no. so instead of six feet of separation, it was people swimming at the same time. amazing innovation. >> now, there's always been a cohort of people saying, you know what, no one's going to pay for this stuff
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it's free. and, yet, your conversion has just gotten better and better through the years. >> yes it is true our conversion has been going up we vetted 3.2 million new registry users in april. which is 63% above, right, where we used to be a year ago and -- and -- and 7.6% higher on the total users that actually converted to be paying so everything just went up. and i think it started with -- that people don't really look at internet they really want the best they can have they really want the best website, the best way to reach your customer's marketing tools. and i want to just accelerate that. >> now, i have been speaking way too locally talking about america. it's a worldwide pandemic. have you gotten calls from all over the world to help design sites and then to help manage? >> yes, we did we did we actually got pretty much
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every place on the planet. started -- first, was of course europe wi where it was -- immediately happen and korea a little before that and then europe and then united states but all happened so fast that it was amazing to see right? we don't have so much business in china so i don't know what happened there but pretty much every other country on the planet. >> so how would you describe your relationship with shopify >> well, they actually competitors. right? so there is some level where we do compete but i that's very small overall in market. when we have a lot of types of businesses running, you have lawyers with fitness teachers. we have a -- gyms. we have educations and everything commerce. why people come care about the design of the website and know about the easy functionality
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and you would go to shopify most the time over enterprise products so we have some competition but not so much. more, mostly going into -- >> okay. that's good. now, last question one of the things you did was we wanted designers, and you -- you pointed to us -- your company pointed us to great local artists because you wanted to help the local artists do you do that everywhere? >> yes, we do. we do. well, not everywhere some countries we still don't do that but i think we now cover about 70 countries with this program. so it's mostly, a lot of places. because, you know, if you live in united states, new york had one style of design. if you live in california, it's already big different. and if you live across the oegds, righoegd ocean, if you're in italy, you
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need very different things what we do is by allowing you to find somebody who is next to you, knows the wix platform very well and understand the look of internet, the look of culture, we help you become more successful, which is our goal. >> i think you just do it very right. boy, i want to congratulate you on an amazing quarter and unbelievable forecast by the way. and for all that you do for small and medium-sized business. they need your help. thank you. that's aviashai abrahami co-founder of wix.com. you can work for free. you don't even have to pay it. "mad money's" back after the break. hey! lily from at&t here. i'm back and while most stores are open, i'm working from home and here to help. here's a tip: get half-off the amazing iphone 11 on at&t,
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it is time time for the lightning round and then the lightning round is over are you ready? nathaniel in new york. nathaniel. >> boo-ya, jim. >> boo-ya. >> happy to be on. got to say what's up to dave i know he's watching you i'm between two stocks i want to know where i should put my money to work caterpillar? or ratheon technology? >> i would do raytheon but my problem with caterpillar is you never buy caterpillar going into a recession so you certainly wouldn't buy it going into the depression. how about jayman in texas? >> hey, jim. i have a quick question on right
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now a lot of companies are work from home. and that's a new norm. what do you think about cybersecurity company and also what do you think about fire eye? >> i like the cybersecurity company. i think you got to go with fourth net we got palo alto next week i expect a good quarter but stocks up a quick 40 let's go to robert in tennessee. robert. >> i'm here. jim, hello. >> robert, what's happening? >> not much. was wondering what's your opinion on jacobs engineering >> i know it much better than all the other enc companies. doesn't matter i don't buy engineering/construction when we are going into a definitive slowdown let's go to marcus in florida. marcus. >> how you doing, jim? love your show watch every day. >> thank you >> my question was about ino. >> i've known ino from plymouth
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meeting which is right down the bayou. here is my problem with ino. the stock is up like a rocket ship. if i had bought it two weeks ago, i would take half, right now, and go buy yourself a nice cashmere sweater let's go to adam in virginia adam. >> hey, jim. boo-ya >> simon property group. >> oh, david david. david. david. david. come on the show i know the stock yields too much it worries me. i know you paid out $33 billion in distributions i liked the conference call. you didn't cut the dividend but i'm nervous. call me nervous. jerry in arizona jerry. >> hey, mr. cramer i've got a position in a via holdings. >> interesting idea. interesting idea communications company that is actually doing quite well. they came back from the dead
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i'd stick with it. one more let's go to bobby in florida bobby. >> yes hi, jim. i wanted to get your take on euro nav. >> the shipping companies have come and gone. they had their move. it was a great move. we salute them and we go to greener pastures and that, ladies and gentlemen, the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade ♪ ♪
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♪ ♪ ♪ ♪ ♪ and wells fargo employees are assisting millions of customers never before ♪ across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage payment relief efforts and donating $175 million dollars to help hundreds of local organizations provide food and other critical needs... when you need us, wells fargo is here to help.
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mark my words. as soon as we beat this virus, and we will, we're going right back to the other big collective action problem of our time the fight to save the environment. we can't contain covid-19 or build a more sustainable future, unless all of us change our behavior and, as we found out over the past few months, it's really hard to do take plastic packaging we know plastics are terrible for the environment. there's a huge patch of mostly
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plastic garbage in the pacific ocean, that covers more than 600,000 miles. yet, we still use plastic packaging for just about everything as it nothing's wrong. you're not going to solve this problem by appealing to anyone's better nature. but what if someone comes up with a better science? footprint. a company on a mission to eliminate single-use plastics. they manufacture biodegradable and alternative packaging prosecutepackaging. the products aren't just better for the environment. they are superior, which is why they have partners with major players like beyond meat i have got them right here could this be the future let's dig deeper with troy, the co-founder and ceo of footprint, hear more about his company and what it's trying to accomplish welcome to "mad money." >> oh, jim, thank you very much for having me and first off, congratulations on your daughter's graduation. >> thank you so much
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she graduated today with a degree in business and fashion you are very nice to point that out. we're very proud a good online graduation ceremony i am going to ask you kind of a softball why do we need yours plastics are recyclable. >> well, i mean, jim, i don't think it's a secret that plastics are a disaster. the world is on track to have more plastic in the ocean than fish, by 2050. to put it into terms, there's trillions of units of plastic used every year. and only 9% of that plastic is recycled in north america. and it's because there's just really no value for single-use plastics at the end of the value chain. >> yeah. i was with marc benioff recently from salesforce and we both said you are not going to solve this problem trying to come up with a better plastic it's got to be science that solves it. i think i'm looking, right now, at science that's what you are. >> yeah. absolutely footprint is a material-science
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company. singly focused at developing the technologies that help our customers get out of plastic and where we've differentiated ourself is that we develop technologies that, not only compete with plastic on a performance basis but, compete with plastics on price >> now, you do one thing i always cut the six rings at the top of a beer because i know they kill dolphins i heard that from my ma, and i believe they still do. you've got something that i think is better than the six rings. i'm holding it up. tell us about it. >> well, absolutely. our focus around the six-pack ring is, one, we have to compete with price or the customers won't change and, two, the end of life. we're focused on a solution that would be biodegradable and marine degradable. so our technologies, number one, we got to make sure competes with price which means we are going to have to develop a technologythat helps companies like pepsi co.
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beverage apply them at high speed and then they'll be able to introduce that globally. >> you do not have -- look, i happen to love -- i love everything patagonia i can go that route. but i am a hard-nosed business person, like you are you have mcdonald's, molson coors, beyond meat, pepsi co these are real companies, that want to make money and, yet, are willing to work with you which tells me that they feel the price differential is such that it makes you more appealing to a whole new generation that is sick of plastic >> well, absolutely. i think, first and foremost, when you mentioned those brands, we are superproud of who we support in our customers and you say this all the time. this is an ethos and in guys like sean connolly at conagri, they know they need to transform we believe it's footprint. that footprint has to develop the technologies to help these companies change
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right? in the past, there hasn't been technologies that have worked or competed on price. we're the difference we are the company that will provide technologies that are scalable we're shipping hundreds of millions of units this year. and we'll be shipping billions of units next year. >> now, people should know that your background is not from -- as much as i love the sierra club -- it's not from that route. your background is from trying to solve plastic problems at intel. >> yeah. i like to say, jim, i'm an accidental environmentalist. you know, i ran a materials team at intel, and our focus was -- in around 2000 timeframe, 2004 -- was focused on reducing cost and in a way of reducing cost, we kept falling on technologies that were, not only better for intel from a cost-structure standpoint but, were better for the environment. and ultimately gave us the idea and concept to -- a lot of engineers and scientists that have come from intel with us to
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tackle this problem. it was a massive market and a huge problem if you got an intel background, we love the challenge. >> i am a little bit confused. jim fitterling is a terrific guy. david taylor rouns proctor. why don't they spend billions and buy footprint? >> you know, jim, i -- i ask myself that question all the time the reality is, you know, why did blockbuster not start netflix? you know, i believe that they're so beholden to their current assets and, you know, what we hear all the time is this recyclable, right? the reality is we should stop asking is it recyclable we should start asking does it get recycled huge difference. >> i cannot wait my daughter, that you saw, was making sustainable swimsuit models when she was at parson. and she wanted to make them out of the plastics that's in the pacific. it's my kids that made me be like this. you're lucky you came at it from
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the science way. i came at it because i got my head beaten in but i think you are the answer, my friend. i'm so glad -- told me about you and you got to come back again, all right? >> i'm glad to be here thank you, jim. >> it's not a hobby. it's not a dream it's an ethos. that's troy swope, ceo of footprint. remember, these are the guys from conagri, mcdonald's i mean, come on, they want to make money pepsi co, they want to do good things with the environment, too. stick with cramer. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit.
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coming up tonight. right after this on markets in turmoil. new battle breaking out over what passengers want and what airlines are going to give when it comes to safer seating. then, food fight grocers union, krogers ending its hero bonuses for frontline store works, already >> individual business owners, their struggles and how they're surviving. okay next week, big retail report it's walmart's going to win. target's going to place. and home depot's going to show everybody else maybe l maybe lowe's comes in fourth be careful with the nonessential retailers. they're all going to pop but then if you own them, may i suggest that you sell the pop. i like to say there is always a bull market somewhere and i promised i'd find it just for you, right here, on "mad money." i'm jim cramer and i will see you monday
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i'm sara on day 138 of the crisis washington gets set to vote on more stimulus as more states including new york prepare for partial reopening. >> i have very recently seen early data from a clinical trial with a coronavirus vaccine >> new optimism from the white house. we're closing in on a vaccine. >> this is an industry built on the idea you put as many people on the

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