karen? >> i want to take some risk off the table and things were opening up and you and i out of the money calls and i'll sell some of those. >> guy >> fire eye, mels. >> thanks for watching fast. se 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 context. call me 1-800-743-cnbc tweet me @jimcramer. apparently america wants to do what americans do best, shop, ca rouse, gamble, generally have a good time. when they're allowed to do those

things, our country looks a lot more like the juggernaut it used to be, and so does the stock market that's the only way to interpret the incredible pin action that we got today from adp's incredible -- their national employment report, and it showed that private sector employment decreased by just 2.76 million jobs last month, when most economists were expecting something more like 9 million. >> hallelujah. >> that and some early positive data about the opening of restaurants and casinos are how the dow surged 527 points today. s&p jumped 1.63% we're gaining back all our losses here, people. you see this kind of animal spirits of the market coalescing with the pent up demand for ravenous consumers and you get the insane gains like we saw by the way, taking us to the most overbought level, 11.1, in the s&p since july 24, 2009. any time it's been this high,

it's actually okay we'll have to do more on that later this week. look, i know there was a time really not that long ago when 2.76 million job losses would have been considered horrifying. we'd be going full pc'er i dreamed i saw him and you and me, we put mattresses on the tops of our cars grapes of wrath numbers. we cheered when we saw the adp report a number that's too bullish, we'll find out for sure monday when we get the nonfarm payroll report it may not be an outlier if this adp data is representative, it is huge the biggest problem in this economy is unemployment. i can't think of anything more positive than the job market being in much better shape than we thought no wonder we've seen a wholesale shift in what stocks people are buying and selling here.

the v for victory economy is back in play, which means many will rotate out of the covid stocks and head for greener pastures before they even see better numbers yet we're looking at a classic awaken america rotation. that's about a resurgence of shopping, chowing down and the roar of big-time commerce. a return to normalcy trade and that's how you get everything from nordstrom to kohl's along with the railroads like norfolk southern and union pacific caterpillar, honeywell and even boeing which trades at 737-max on the verge of being approved by the faa it's cheesecake time in america. that's right turns out if you open it like cheesecake factory they will come which is why the hallowed institution is crushing the numbers. remember, some of these retailers were supposed to be out of business by now cheesecake factory skipped rent in april same for the cruise lines.

save j. powell almost no major corporation goes out of business in this happy era aside from small businesses hanging on by a thread thanks to the pandemic remember that? and the looting happening in conjunction with the otherwise totally justified george floyd protests what do you do first off, you have to know where the money is coming from to buy stocks. bonds sold off hard today. hey, who needs bonds when we're looking at a genuine economic recovery maybe even a v-shaped recovery that seems a lot more likely after today's terrific payroll data from adp. investors dumped big drug stocks in the attempt to fight covid-19 also the anti-cancer plays regeneron has both it got hammered mercilessly and i think they're doing well they got pummelled like the average. they're too consistent there are golds in the crosshairs remember, you don't need a safe haven if the economy is coming out of what may be the shortest depression in history.

we just did gold earlier this week thank you, carley garner it looks like she was right to be concerned fourth, you have to suspend the stay-at-home theme, even if the work from home stocks are working, people are still working remotely but now they're allowed to go outside most places. they're not staying locked up all cooped up inside all day so people sold the video game stocks hard because now you're more likely to be out playing games with dave and buster it looked like it was at death's door a few weeks ago you stopped cooking. even though campbell's soup reports a terrific number like this morning, nobody cares i don't know about you, but i am done doing the dishes! done the wiping, you know, it's not -- you -- put it in that thing, whatever that thing is. you have to wipe them down why? the water comes down -- no, you have to wipe them -- i'm sick of that anyway, the pantry stocks are suddenly going out of style, too, with the wall street

fashion show we'll learn more when we speak to bng foods you know them as green giant sick of that -- very good stuff. and, of course, fang is out, although some of the stocks were able to rally today. apple, for example, was boosted by kdu, morgan stanley she said apple service revenues will be off the charts when the company reports. smells like an upside surprise to me. you don't sell fang. i'm giving you the lay of the land that's the essence of the rotation so what's worth buying here? okay, you need first of all, easy compares as we call it. something like stanley, black and decker this is historical the toolmaker this morning put out a statement saying they expect organic revenue to decline 15 to 20%, decline in absolute terms that's horrendous but a couple weeks ago they were ta talking about doing 20 to 30%. tools, storage and global security it jumps a quick 5%.

businesses down like crazy, it makes sense we'd see record highs at home depot like we did. is it safe to go beyond individual retailers, put moan i in some of the world's largest shopping maller? bingo, simon properties which i told you is good, spg, 11.5% yield even after the stock rallied $10 today. a net dividend, retail coming back from the dead, they should pay out 33 billion in the past who does better when people are out and about thinking more positive the banks. they can finally play catch up, especially the ones with big brokerage businesses thanks to the success of the warner music ipo today. the stock exploded higher. showing you brokers are trying to entice people back into the market, which is why -- that's exactly what to do -- you better get some zoom info if you can. tomorrow morning all i can tell you is at the beginning of a run of ipos, the brokers let you win. it's kind of like a casino where

they're giving you the right cards. plus we love to gamble, speaking of that. wynn opens for business. they have the plexiglass full bets ahead looking better than expected if you think about what's working today, people are going out shopping, mingling, that means they're gathering again, another risk of outbreak people don't seem concerned about the pandemic keep people inside in march and april is easier than june. house hunting during a pandemic when we have protests and riots all over the country, look at it another way. 21 million people on unemployment, you have employed people who are desperate to go out. people spent stocks, next to nothing. as the market recovers they want a return to normalcy they're going to rh and buying furniture. bottom line, i can't tell you what normalcy looks like in a

country with systemic racism or the coronavirus. but if there's one thing i know about america, it's that normalcy is shop until you drop. and today's action says that's exactly where we're headed andy in florida, andy! >> caller: hey, jim, i'd like to talk about u.s. steel. a few years ago, the it traded $50, $60 it hit an all-time low of $4.54. i bought ptions, played it down before earnings it looked strong i know president trump is pro steel and i know there are shorts in there. i don't know how much is on there -- >> look, i don't want to trade the worst. i want to own the best, which is nucor at 44. i see steel getting a little stronger i want you to buy nucor at 44. let's go to dan in california dan! >> caller: jimmy chill >> chill man in the house. >> caller: big booyah from sunny san diego.

>> i love san diego. nice beach there >> caller: jim, did you know san diego is the birth place to one of the greatest philadelphia eagles of all time >> no, i did not know this this is a quiz and i don't know the answer >> caller: six-time pro bowler back when pro bowlers actually meant something. you still don't know >> not chuck and not -- >> caller: number 21, eric allen. born and raised in san diego >> i saw the run back touchdown. i was there for the run back touchdown. that's 103 rs, you know. it was i can actually do it right here. i can do 103 rs right here and i can do it in a half hour how can i help [ laughter ] >> caller: hey, one more thing about eric allen the guy does not have a gold blazer in the closet he's never been to canton, ohio. >> that's outrageous after the show is over, i'm going to rectify that. i'm going to put my n95 on and do you will a the stuff that you

need to get to canton and we'll get that fixed how can i help you >> caller: all right, buddy, i've taken all your advice and i profited very well over the years, especially with the fang stocks and the covid stocks lately >> i don't have any covid stocks >> caller: i want to ring the register i'm thinking about cashing out a little bit and buying a stock that actually reminds me of number 21 eric allen the stock pays a nice dividend, but it gets very little respect. it's down over 20% this year from its high. i'm talking about another california company, sempra energy >> jeff morton, jeff morton's got game i like that. he knows i'm an eagles fan he feels for me until we won the superbowl. you're right, that's a good stock. we're into stocks that do better when the covid epidemic is done. it's a great company a great company. jeff is doing right holding back the lng play all that money spenlt all right.

we're looking at a classic awaken america rotation. this market is proof that america wants to do what americans do best. and even though it's overbought, the records show it can go higher on "mad money" tonight, can zoom continue to zoom higher after earnings i'll give you my take on the company's potential trajectory it's a new way for promising companies to come public one of the red hot st. patrick's da days you'll hate me after that piece. and bng foods soar i'm going to talk with the c.e.o., so 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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and if you're not sure what you're looking for, say... surprise me. just ask "what can i say" to find more of what you love with the xinity voice remote. ♪ how do you value a stock like zoom video which reported one of the biggest upside surprises i've seen in my entire life last night. zoom has 169% revenue growth and they beat their own guidance by 64%. how do you put a price on a company that raised its full-year revenue forecast from $910 million to $1.79 billion instead of 46% growth year over year, they've got 187% growth. this is a company that was supposed to earn 11 cents a share. instead it earned 44 cents they raised earnings estimates

from 45 cents up to $1.13. i know the stock already had a macho run going into the quarter. after these numbers i have to say i know what it's worth it's worth more than it was the day before and more than it was today and it will be more than worth it tomorrow. in other words, it's worth a heck of a lot more than it's trading for. you have to hope the stock goes down so you can get in i just don't know if it will zoom video is one of these companies whose time has come. in a few months it's gone from 20 million users to 300 million users. boat loads of people, businesses are paying for special products. it's incredibly easy to set up and now the whole analyst community is struggling with how to value the darn stock. on the one hand this may be the best quarter we've ever seen from an enterprise software company. on the other hand, zoom got a huge boost from covid-19 and the

shelter-in-place orders. some analysts are indeed worried about what comes next as the economy reopens. i think this is no longer about the pandemic, though even though zoom video is now worth $63 billion with a stock that's more than tripled for the year, that's because the company has taken over the world in just a couple months. it's got a beloved product you know it's big because zoom is already a verb like google. so i think the stock has more room to run. it was almost surreal listening to the analysts talk about zoom's rise as a preamble to their questions on last night's conference call. here's patrick wall ravens from jnp. that's eric, the c.e.o., you started as an enterprise company. so many individuals are using zoom to connect with their friends and families and classmates when i go to say good night to my daughter at night, i get a lot of, daddy, i'm talking to my friends, come back later, end quote. this is actually on a conference call you expect these people to be more jaded and cynical here's another one from ryan

mcwilliams at stephens, inc. i just attended a zoom wet wedding last month my own wedding in september might be over zoom i want to say thank you for bakeup plan, end quote heather from goldman sachs who starts off by saying, look, i just wanted to say, first of all, thank you for the company and with your steering acting the way it did over the last few months, which has been just such a trying time for so many, but not only obviously did you enable all of us to stay in touch and working, but just being able to still connect with friends, with family and friends, so thank you. i think on behalf of everybody end quote. holy cow, on a conference call he is markedly honest about this he gives credit to microsoft, survey monkey. he didn't have a bad word to say about ring central trying to move into the business nor slack

nor microsoft. plenty to go around. that's when i ask where zoom can go, my answer is, higher and when pressed, my answer is, higher still stay with cramer and don't miss tonight's special at 7:00 p.m. eastern you know who it's with it's with my friend scott wapner >> announcer: tonight at 7:00 p.m., crisis in america. there's a scarcity of black leadership in technology one c.e.o. who made it talks about what needs to change in silicon valley plus the head of the nevada gaming control on the high stakes of tomorrow's reopening of las vegas casinos and race relations and sports all tonight at 7:00 p.m. with scott wapner need better sleep?

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even in a day where the awaken america stocks rorared ad the covid winners, we'll take one that's been my favorite since it came out of the chute, cloud strike cloud based company that's reported an incredible number last night big time beat and strong profit. strong guidance for the current quarter and forecast most people don't give a forecast any more. no wonder it shot up 6.3% today. it pulled back to 98 bucks i've said over and over again crowd strike is the kind of cloud based security play where you expect it to thrive where millions of people were forced to work from home. i didn't expect the quarter to be this good let's talk to the co-founder and c.e.o. to learn more welcome back to "mad money." >> thank you, jim. always a pleasure to be here >> thank you, george you have a great provocative line in your conference call

where you say the covid-19 pandemic has created a breeding ground for cyber crime why is that? >> well, typically what we've seen in the past when folks are not at work is when cyber crime actually happens, right. in this particular case, everyone was out of the office everyone was working remotely. and they're not protected by those corporate fire walls and those systems. it's one of those areas where the bad guys are taking advantage of a global pandemic anyone will click on a link related to covid and with ransomware as a service so hot, there is so much money to be made, it's no surprise that cyber crime is up big time. >> all right let's understand that. ransomware means you have to pay somebody off i always want to know who the heck is it is it a state? is it guys who are really smart and are just really bad bank robber types who knows how to do this stuff >> well, there's actually criminal enterprises that are set up like corporations

they have hr departments they have multi lingual support. in fact, they even have a ref share model. one prolific group has a rev share model. they'll give you the ransomware platform if you're good and you make money, it's a 20% rev share. >> george, that's, that's just ridiculous that's more organized than organized crime. and you've managed to be able to -- what, if you bust them, you go to the equivalent of the fbi? how do you stop someone that good >> well, that's part of our solution, and that's what falcon was built for, to not only stop nation state attacks, but to also stop ransomware and ransomware is really moved into an area where it impacts the resiliency of a business we've seen some really big businesses that are not crowd strike customers that actually got impacted to the tunes of tens of millions of dollars and brought the business down to its knees. so part of our solution at crowd strike is leveraging our a.i.

architecture to be able to identify never-before-seen attacks and prevent those attacks from actually taking place. >> you've got a slide in one of your presentations that a.i., so people know, the more you use it, the smarter it gets. how come that's the case >> well, the more data that you consume, the greater the efficacy is. the greater the prevention rates you can achieve. now, it's not all thathard to get great prevention what's really hard is to get great prevention and low false positive rates, which is why we consume so much data just one element of our platform so the more we consume, the smarter it gets, the better the outcome, the lower the false positive rates >> let's say i'm a bad guy and i want to go after semiconductor chip manufacturer with an expansion into a major u.s. or major u.s. airline what am i trying to get at and what does crowd strike stop? >> well, from a nation state perspective, there's many variable pieces of information that any of those companies

have specifically related to intellectual property. so chip manufacturing, think about 5g how valuable that is. what are the latest plans? how can another nation gain a competitive advantage? when we think about airlines, you know, what are the movements of people? where are they going and how do you tie that back to potential government intelligence agencies and their movements? then when you think about covid-19, there's nothing that is more valuable than the formula to cure covid-19, right, or the vaccine or the therapeutic drug that someone can come out with. so those are all hot topics and i can tell you the pharma industry is very concerned about these sort of attacks. and, again, that's why we've seen attacks dramatically rise in the last three months >> george, we've heard the white house say they are trying to steal our vaccines and they are trying to steal our 5g information. this must be something crowd strike uncovered >> well, we stopped many

breaches last year 35,000 in-process breaches that's not malware, that's actually hands on keyboard had we not been there, there would have been a breached condition at a customer. it's incredibly valuable to our customers. not only is that valuable, but the single architecture nature of our platform is able to replace other security based products in their environment which really drives tremendous return on investment for the purchase of crowd strike technology >> all right let's talk about the return on investment i'm sure there are people today who are saying, look, they're starting to go back to restaurants. they're starting to go out they're starting to do things, not staying at home. i think that the gains in crowd strike are unsustainable because work from home will no longer be the best way to do things. what do you say -- how do you respond to people who say that work from home peaked yesterday? >> well, i can tell you what i do know, and i do know for sure we're not going to go back to the same way things were done before covid-19. now, what the future holds,

obviously anybody's guess, but i'll give you my view. i think it will be a hybrid environment. you're going to have some folks go back to work, you're going to have split shifts, but i don't call it work from home i call it work from anywhere and that's a movement. >> right >> that's a subset of digital transformation and digital transformation is not a one-time hit it's a very sustainable trend. i'll give you an example, jim. as part of our won 100, buy 100. we talk to a hundred customers tell me about your digital transformation road map. he said, we had a two-year road map that we executed in one night in march, in one night so that's a sustainable trend. that's not a one-time hit, jim >> you know i totally agree with you. i've taken heat from other people in the industry by saying crowd strike is the worst thing to bet on. because of the work you've done it's really remarkable when you put yourself up there with that chart, salesforce workday, it is deserving that crowd strike you were not born yesterday.

you've been around nine years. you've done a terrific job much more "mad money" ahead. social distancing has benefited green giant and ortega can the sales at bng foods continue i have the c.e.o.. and always the best ideas from you, cramerica i'm answering questions on a real hot one, i.q. that exploded and i'm telling you what it says about the market, not just the stock. and all your calls rapid fire in tonight's edition of the lightning round. so stay with cramer. >> hallelujah.

♪ how powerful is this rotation out of the safety stocks and into the awaken

america plays? look at bng foods, which is a house of package food brands you might recognize. cream of wheat, ortega, green giant, canned and frozen vegetables this is a stock that's been on fire for months as part of the covid-19 stockpiling trade b & g announced incredible may sales numbers this morning with 50% plus revenue growth year over year, and they guided for much higher than expected numbers in the whole second quarter. yet what happens after the rally this morning, the stock closed down 1 cent today. that's the rotation speaking does it really make sense to sell after such astonishing numbers and big yield? let's take a closer look with the president and c.e.o. of b & g foods to get more color on how his business is doing and where it's headed. welcome to "mad money. >> jim, thanks so much it's such a pleasure to be here. i'm a big fan. >> oh, thank you, ken. okay so you had an incredible period.

you basically preannounced today. you had the best single march of -- last week of march in history? >> it was a record sales week for us it came after the last half of march of generating 90% consumption increases in the last few weeks of march versus the prior year and it really has continued. not quite at 90%, but over the last 11 weeks our consumption measured by nielsen is up 50% versus prior year. and as you can see, it's continuing into the second quarter with the first two months off to a great start plus 57%. so our portfolio is just responding very well, and right there for consumers as they're cooking and eating more at home. >> all right, ken, we have to figure out how much this is sustainable. you know what, it's fun to be at home you know what, i'm looking at these new green giant products like the cauliflower which is

delicious and i want to pivot to those. how much of it might go away because it is fun to have a night out? >> first of all, we don't expect 60% growth numbers to continue forever, but we do look to the industry experts that are talking about how fast will consumers go back to restaurants. what i would say is as long as people are going to be eating out a little less, as long as people are going to be staying home a little bit more and working from home, our portfolio is perfect from green giant vegetables to breakfast more at home the more people are at home, they're eating more breakfast. our cream of wheat hot cereal, our irish oatmeal are still growing as we enter the warm spring and summer months are still growing at 30 and 40%. as long as people are going to eat out a little less and work at home a little bit more, we believe they'll be better post-covid trends than trends coming into the covid crisis >> i was reading some of the stories ahead of what happened with the pandemic. there were some people who were questioning whether you could

maintain that large dividend had you not had this spurt, would it have been under consideration that maybe the dividend had to be cut >> jim, we -- as you know, this company was built to grow through accretive acquisitions of high margin, good cash flow brands and used a significant amount of that cash flow to return to shareholders so management and the board -- and as i became c.e.o., believe you me, the board made sure i was totally committed to the company's strategy of paying a significant portion of our free cash flow out in dividends so while we ran in a little tightness last year because of working capital investments, we had a plan to both -- not just more than cover our dividend, but chip away at the leveraged level. we got a little higher than most people were comfortable with >> it's interesting. as you said, i studied the company for a long time. and the green giant acquisition i always thought was a steal

but what happened with these lines extensions you've done and i know you're going to do more frozen, maybe keep can it can be such a dominant brand. i wonder whether you need so many of the other brands do they take up too much of your, let's say, mental time >> you know, that's a question people have been asking me ever since i arrived at b & g we have a great stable of steady eddy brands such consistent performers and generate a lot of cash flow. we don't see many of them distracting us and you know we're a serial acquirer we don't hang out the for sale sign all that much green giant is a significant portion of our business, a third of our business. it's our largest brand and we plan on continuing it to be our fastest growing brand. you can see these new products, we love cauliflower. we think it's the magic ingredient we're line extending and offering new products, not just to reinvent frozen vegetables, but to take plant-based

vegetable-forward products and go after carb replacements our veggie rice and cauliflower tots and pizza crust these are not just all new vegetable products but new products made from vegetables. we're excited about that pipeline hats on to b & g i wasn't here when they did it when he they launched those new products, those first new products since 2016 have cumulatively delivered over $500 million in retail sales, and that's just the first three segments so our innovation pipeline, as far as the eye can see, is something we're very excited about. and the grown giant brand can carry it out >> i love all the different flat breads that you have i thought that this back to nature was very much in keeping with what i'm seeing with beyond meat so you've got whole ends of the

super market now that you have a good placement in it >> jim, we're actually in over 80% of households, at least one b & g brand. we are in actually every food aisle of the store and one non-food aisle static guard is our one non-food product. we're in a lot of households we're beginning to scratch the surface of how we can cross-promote products for instance, we'll be launching a line of green giant frozen vegetables made with mrs. dash inside so you don't even have to add it on your own. there is so much more we can do with this, with this great portfolio of brands. and not all brands are going to be treated equally we're going to really lean in on a half dozen of our brands to drive growth like green giant, ortega, mrs. dash, back to nature there are steady eddys that have turned into consumption, and we can show more organic growth in the future than they had in the

past because we are seeing new households are entering into our franchise and they're repeat purchasing so what we've seen other than the little blip in march, we're not seeing pantry loading. we're seeing car loading, refrigerator and pantry loading and consumption and back for me. >> i like that stock hit a high today, got 8% yield. ken, so great to have you on we had so many ask about the stock a long time. we didn't know enough. now we know and it is graept to see you. thank you. president and c.e.o. of b & g foods. good to meet you, sir. >> thank you so much a real pleasure. >> guys, it's in my house, my executive producer's house i think some of these products are here to stay many of them, and many of them have always been here. "mad money" is back after the break. you don't get to act crazy your whole life, just 'cause dad died. are you gonna get a job? i wanna become a tattoo artist. scott did this. is that a cocker spaniel? that's my daughter. -oh. your work is mad inconsistent. you got obama wrong.

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>> announcer: lightning round is sponsored by td ameritrade ♪ >> it is time! it's time for the lightning round. rapid fire calls >> buy, buy, buy >> sell, sell, sell. and then the lightning round is over are you ready, ski daddy start with jay in california, jay. >> caller: jim, jay from irvine, california i've been watching your show 15 years. this is my first time calling in >> all right >> caller: i don't work with them directly but what do you think of edwards life sciences >> i like edwards life sciences but you must understand right now that stock is going to be under distribution why is it under distribution because it is not fitting with the awaken america trade, but i bless it when it comes down because they've got the best,

absolute best medical equipment. joe in west virginia, joe! >> caller: booyah, jimmy chill >> booyah, joe >> caller: what do you think about flex ltd >> i see them being used by a lot of companies i i like that idea let's go to charles in georgia. charles. >> caller: listen, i'm in retirement and i'm still searching for a great dividend and growth stock i'm up 12% on microsoft, but it keeps drifting away. can i do better? >> microsoft is terrific microsoft fits the pattern of what this market wants, even as it is not a deep cyclical, which obviously like a freeport is going to be right now. i like microsoft let's go to daniel in new jersey daniel >> caller: jim, thank you so

much for taking my call. i know this week hasn't been a week for tech, but while it was late getting into the cloud computing sector, this company is said to be far superior to the competition including aws or big businesses with its current p & e. what's your opinion of oracle for the long term? >> for the long term it's okay i do think -- i mean, eric nguyen says things about oracle on his conference call when he was discussing zoom. i think it's okay. i mean, there are so many others that i think are better. i think it's just okay let's go to victor in texas. victor >> caller: jimmy chill, thank you for taking my call thanks for all you do. >> all right, thank you, buddy what's up? >> caller: every time i go to somebody's house they have roku. is roku a buy? >> roku, you want to be long roku i'm fine with roku i think it's good. [ buzzer ] again, roku is a stay-at-home

stock in an era we've suddenly decided we don't have so stay at home any more. i expect it to be under pressure short term guy in new york, guy >> caller: booyah, jim it's been a while. i hope you and your family are safe and well. >> good, thank you hope the same. >> caller: i'm conflicted on akamai akam >> it seems to have stalled out. these computer networks, i think the delivery networks are okay i'm not going to rave about t. i'm just not going to rave about it and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning. for a limited time, get up to $800 when you open and fund an account.

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♪ last week kyle in california called in to ask about a company called vecto i.q it's a special purpose acquisition vehicle merging with the electric truck start-up. the deal happens tomorrow. oh, man, this is a smoking red hot stock. this exploded higher in weeks and weeks. i promised to do homework and circle back to it. i know people are really interested in this thing it turns out there's more going on here than just one deal lately we've seen a host of these special purpose acquisition vehicles, they call them spac, catch fire in a way that i find -- i find them borderline disturbing. it feels so frothy when you see these super

speculative stocks exploding higher that's not a good sign. it means the rally might be reaching the end of the trajectory i know if you're in it you don't want to hear that, but i'm speaking historically. before we get into the ramifications you need to understand what's going on here. let's start with the special purpose acquisition vehicle. what the heck does that mean these are piles of money that list on a public exchange in order to make acquisitions i want you to consider them like blank checks usually it takes a year, year and a half, even two years before they do a deal. shareholders are betting on the executive's ability to spot a bargain. if they don't find anything buying, they dissolve themselves and investors get their money back in recent years we've seen more and more of these special acquisition ipos last year they raised 13.5 billion, in part, because there is so much cash floating around in the system there was before the march meltdown now, i don't have anything against special purpose acquisition vehicles as a concept. but you have to i understand that this business model has

changed. in the old days spac simply did roll ups, make smaller acquisitions to build a dominant position in an entire industry i'm not crazy about roll ups, but it makes some sense to me. lately we've seen something different where they do a big flashy high profile merger with a larger company usually one that's structured in an incredibly complex way. let's call it opaque often it's done as a way for start ups to list their stocks publicly without going through the ipo process. this is what happened with that thing vectoiq. motor deal in the end. we've seen other examples. virgin galactic was one of these. so is draft kings. we've seen a pattern with some of these flashier spac names the stock spikes after the merger, immediately after. plus it tells us the spikes are temporary. that's why i get nervous when i see this vectoiq and draft kings roaring. platform specialty products

became public. that had to go rolling up the chemical space you can see the trajectory plain and simple the stock tripled from 10 to 30 in 2014 as investors got excited about their game plan. just like vectoiq. then back to the mid teens second, there's no mad food. even having huge unsustainable stock after the stock came public in 2015 early on the stock surged up to 22 before collapsing back to the mid teens. since then nomad worked its way back to the 20s. you're better buying this at the bottom than the top. the best example is virgin galactic late last year, a spac called social capital hedosofia merged with branson space tours and company, virgin galactic this is one of the most speculative stocks i've seen a space tour is a long way from being a profitable industry.

trump reached a trade deal with china last december. they ran head first into covid-19 at the time i warned you the strength in virgin galactic was froth. sure enough, the stock came plummeting back to earth and never recovered, although i know people always get excited about it i don't blame them this is a bull market and exciting stock these days we've forgotten about virgin galactic. instead speculators ahave moved on to draft kings with a special purpose acquisition vehicle diamond eagle. it ran from 20 to 17 since then draft kings kept soaring. it peaked at 45 after pulling back from the highs. it's almost 40 bucs. you should know i really like draft kings, the business. the sports gaming play as more and more leagues announce they're reopening, basketball opening in july. wouldn't that be great for these guys this thing has gotten too hot

for me you're up nearly 40% you know what you have to do when you're up that quickly. this is what you do. you ka-ching, ka-ching at least part of your position. you nknow what that's being called being responsible. the online gambling story, these spacs tend to be short lived do me a favor and take something off the table. not the whole position because i still like the story people can say why not take it off? because i can be wrong finally, there's vectoiq the stoc stock i was asked about. people love hydrogen fuel cells. i can't tell you how many speculators have been burned betting on hydrogen fuel cells a lot. the value of the cash it was sitting on, that's when you had to buy it. since then the deal was announced the stock surged to 34 that's bigger than the predeal run up in draft kings.

tomorrow it becomes nicla motor. they're working on a electric truck and for 2023 as well as the infrastructure needed to make fuel cells viable they have a cool model, software -- it's one of those businesses, saa. let's put it this way. you don't just buy the truck, you get the whole shooting match. the software and services even come to trucks nicla has a book of 10 billion if they can deliver on their plans, the business is worth a massive amount of money. that's what the protemoters are counting on. they're like tesla, an adjacent business named after the same guy buddies. the founder and c.e.o. is a colorful boisterous guy, like elon musk. i like those kinds of guys how do you value a company not selling anything at all until next year when the main business won't get off the ground until 2023 like most fuel cell stocks it trades on the headlines. that only takes you so far

when you invest in a hydrogen fuel cell play, you're betting on a dream, a high-risk proposition. everybody has a right to dream honestly, though, the thing that really gives me pause here, it's very simple. when a spac makes a big acquisition, they usually include an implied enterprise value and you figure out who gets what stake in the business. for both draft kings and nicla motor, the implied value is 3.3 billion. they're worth over 10 billion. it's tripp it is tripled, among friends you need to be careful with these red hot special acquisition vehicles that are hot out of the gate. call me worried that the market is getting out of controlled, not just this one. just like when virgin galactic shot into the stratosphere it's not a good sign it should be able to roar after

the deal closes. i'm betting this one will jump big, but eventually i expect the stock will give up some of the gains as we don't have sales let alone earnings . it's a blank check made out to thinkers if it ends up getting hit, please blame me -- i mean, don't blame me the fault is not in this star. jimmy the chill. it's actually in yourselves. people will hate me for that can we cut that negative stuff out so everyone loves me oops, sorry, that's not the way it works on tv how about dylan in virginia. dylan. >> caller: how are you doing, jim? >> i'm doing well. >> caller: it's a subsidiary, leader in security tech. the stock lost value because they spun it off it approaches sales at -- the c.e.o. of adt one of the biggest clients in the earnings call

went significantly high sales rate >> look, honeywell spun it off i told you to buy honeywell, not these guys this thing is down so low, i wouldn't bet against it. it's down 32%. an interesting cats and dogs stock at this particular moment. i'm going to say it's right. i hate it all the way down so i actually have -- i have the smart sheet -- sorry, that's down 10. i have the ability to be able to say i think it's right i like your thinking, dylan. i think you have horse sense be careful, spacs explode higher out of the gate and makes me fear some of this market -- actually a lot of it after today is a bit out of control. - [announcer] if you've tried college but never finished,

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- [announcer] finish your degree at snhu.edu. ♪ when i first heard of where the s&p oscillator closed north of 11, i said to myself, wow, is that overbought. when i go back in history it turns out 7 on the oscillator and say 10, that's a danger zone if it can ever really get over that it means the market is pretty placid. we're going to look out for buys on the market decline. as you can tell, this rotation is vicious you do not want to be in the stay-at-home stocks until we get better information after what we saw with campbell's today and even with b & g which did not go up even though it reported great numbers. what's going up is the industrials. i like to say there's always a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer and i will see you tomorrow.

♪ good evening, i'm swat wapner on day 157 of the coronavirus. we start with breaking news tonight. a stunning rebuke against the president of the united states the former defense secretary general james mattis picked by the president, himself, to lead the pentagon, issued this statement just a short time ago. i'll quote from it now drunk, says general mattis, is the first president in my lifetime who does not try to unite the american people, does not even pre trend e tend to try. instead, he trace to divide us we are witnessing the