in the market, verizon high dividend yield not the reason to buy but a better balance sheet even than at&t like this name. >> guy >> be back here tomorrow at 5:00 "mad my mission is simple, to make you money i'm here to level the playing field for all investors. i promise to help you find it. "mad money" starts now i'm jim cramer welcome to "mad money. i am just trying to make you some money my job is not just to entertain you. call me or tweet me. we are in a slowdown

there has to be a reason for stocks to keep going up, because there are no tail winds. sure the economy is reopening all over the country we had great jobs report last friday but we still have 13% unemployment in this country as much as we want to reopen, the sectors that have turned red-hot, that's why the dow dipped 300 today the tech heavy nasdaq advanced stocks can only go up so much based on the fact the world isn't ending let's take the two most exciting areas in this market airlines and cruise lines. those juggernauts were marching towards their precovid highs

neophyte internet goaded wagerers, betting that someone would come in and buy higher that worked for a while, but today it stopped when you invest on the greater pool theory, sooner or later you are out of fools there are times that the greater fool theory does indeed work i am not someone who will give you a hard time for making money the wrong way. the games in these groups are still very real. but if you are going to play this game for the long haul, i want you to be better at it. american airlines. it took you stock from 10 to 20 bucks. it was in the high 20s before the pandemic broke out american had $34 billion in debt, $10 more than delta or united

they are trying to get it down to $50 million by the end of this month i see why gamblers may be attracted to this stock. it had the lowest price in terms of the absolute dollar amount and that's always attractive to speculators. they look stocks that are 10, not 3,000. american airlines increases domestic flying for the summer season, increases flexibility. you have to remember, they have a very small base. american carried 110,000 a day up from 315,000 in april last year they carried about 500,000 a day. inter nationally the numbers keep falling it was warned that a major

carrier would fail everybody has to assume that they must be talking about in america. circulation doesn't matter if you are sitting next to someone who is sick. i go into all of this because american is the kind of stock you buy if you feel we are in recovery when you are in a recession, even if you are coming out of recession, you don't see tons of planes you are not supposed to buy plane stocks and that's before the impact of the virus which will have an impact on travel. what do you buy if you are feeling better about the economy but still doesn't have

meaningful win on neophytes. you buy companies with powerful internal engines that can sail without a tail wind. you want a steamship, not the cruise ship that depends on the economic weather facebook stopped being embroiled in politics and started realizing the real constituents are the millions of small businesses that use its platform and started reporting it the crackit was explained how facebook they have been flying ever since. but the analysts have just started to recognize at a time

when people are reluctant to shop in person a brilliant move then this. a new high because of chinese sales and retail stores? no, because of apple pay people are afraid of getting covid from cash or cards or prepayment it is growing by leaps and bounds it shows no sign of stopping and amd was the biggest gainer it was selected for the next generation artificial intelligence system. artificial intelligence, no need for a tail wind. and amd might be taking business away from intel. finally, amazon, two firms

raised prices to $3,000 today with notes and praise about how deep it has its hooks into its consumer wells fargo said -- amazon one day primed them from competitor store base fulfillment options -- bank of america says something similar, if the money does succeed -- so they are looking for increased revenues and earnings that's an internal tail wind of amazon's own making. the most loathesome oil

companies, and cruise lines still can't cruise these companies don't just need tail winds, they need category 4 hurricanes to keep moving. bottom line, facebook, amd, nvidia, amazon, they don't need it patrick? >> caller: thanks for having me on first time caller. i want to say thanks for your efforts to bring on a wide range of speakers -- thank you >> we all appreciate it. >> it is tough to come up with a balance. i strive to do it every day. how can i help

>> i wanted to get your take on moderna. i know you know all about it it is one of many players in the vaccine race the playing field is packed. we have seen a lot of short-term high flyers come and go, but for several weeks moderna has been a front-runner recently they hired a new cfo. but since then moderna -- >> before i -- patrick, they put out the results of that and they were too promotional they said eight for eight, something good news. not enough of a sample and something dr. fauci didn't like. other people sold a huge amount of stock and they sold stock these are things that are sub optimum in my eyes

while i wish moderna good luck, i think those were ill-advised let's go to fred >> caller: i recently purchased shares in new technology and should i buy more today at $50 >> i think it is a good company. i think henry is doing a good job. ipos that come at the beginning of a cycle right now, they are heading back to the casino zoom info was underpriced and that's a positive sign it is still underpriced. david? >> caller: i wanted to find out what your opinion is on outdoors they make everything you need to

take with you in those rvs >> yes, they do. that's why i am still going to camping world because i think they have the best -- he has the best handle on that particular situation. he just bought more stock on friday >> stocks like these don't need any tail wind! that's what i like here. don't i will find out if you are barking up the right tree with an investment in a stock that you know i have liked for a long time as covid-19 prompts more, i have the cve. so stay with cramer. >> have a question

tweet cramer or give us aal cl at 1-800-743-cnbc miss something head to "mad money" cnbc.com can i find an investment firm with a truly long-term view that's been through multiple market cycles

for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

as we reopen, what do we do with the digital retailers the online advisory service which is like having your own personal stylist on the one hand the last few months have been fabulous for

e-commerce because people have been stuck inside. on the other hand, you don't need new clothes when you can't go anywhere. it was the latter trend that dominated the quarter. however, they are doing much better than say department stores management noted business started improving in april and a positive set of numbers in may we have to stock about this. the stock ran up in the quarter, got hit today, boeing more than 5% is sfix too risky? let's get more about the quarter and her company. welcome back >> thank you for having me >> katrina, let's get at it. a 9% over the year and active

client grew by 6%. this happened despite the fact a part of your quarter has been offline. what do you think your numbers would have been if you had a consistent operation >> it's hard to tell our prime challenge was having our warehouse open in a way that was safe and could bring people back to work our warehouse was down 70% i am proud of the hard work the team has done to deliver this quarter and more importantly, i think momentum when we look in the coming months. when we have offline, we were turning off part of our product and we had to go into mode where we wanted to take care of our

existing clients and making sure we were getting fixes for them to deliver this quarter, yes, down revenue 9%, but this was during a time where in april in apparel, all of the apparel retail was down about 80%. this was an incredibly challenging time, but we invested in it >> on the one hand, with no place to go, you don't care how you look on the other hand, one place you don't want to go is a pandemic where other people may have covid. we are now opening the rest of the country, but there is still a worry, i believe, ofcovid. at the same time you want to be able to go out does it now weigh in favor of stitch fix because you want to be seen, but there is lingering

worry about covid in the dressing room? >> that's what we think. our value proposition, which is have a stylist help you try clothes on in the comfort of your own home. that has been a value that has never been more rest nent. -- resonant. >> you are a service that you don't have to subscribe. but subscribe is sticky and i feel like if i gave you something every month, maybe you would do better. >> we call it auto ship, clients who engage with us on a recurring basis. it is not subscription in a traditional nature because they are not paying $50 to us every month, but we have clients agreeing to get fixes every two

months or so they have been a big part of resilience our company has seen in the past quarter and quarters to come. we absolutely believe that is a foundation the other strength is direct buy. it is this lighter weight way you can engage and buy directly from those and not have the shipment sent to your home sight unseen that allows us to reach clients who might be on the fence, who might want more choice and gives us a lighter weight way which we think opens our market opportunity and helps us to get into the wallet of our client. >> this is a company that likes to make money. you are not one of those companies about the business of growing without profit i know this quarter must have hurt you because you could not

make money for some of the reasons you described, but you laid off about 1400 employees in california this is brutal it had to be brutal for you. i am trying to figure out why it was so necessary given the fact that things could turn up big this year. >> it was an incredibly difficult decision i am so proud of the many jobs we have created and so many jobs here in california where i am from and where our headquarters are. this is heart wrechk -- wrenching this is a decision we have known we had to make for a while to your point, we made the decision to lay off over 1,000 jobs here in california, but we are rehiring those in other geographies and then some. as much as it was an incredibly

difficult decision to make as a leader, it was difficult to be in this time of market dislocation. we believed being able to play offense, being able to chase the billions in office opportunity coming up as more people are looking for ways to shop for apparel online, this is how we can create more jobs and opportunities in the long-term >> what if somebody says california has more ideas. i don't want my stylist from pittsburgh why do i want to stylist from cleveland? >> we are very stylists across the country. we know that our stylists are effective all across the country. this is the right foot briprinto

fit our business >> a lot of people in cleveland are a lot more stylish than people i know. hiring people in minneapolis, i can't think of a more important place to hire people what is your message about that move and to the people you are hiring >> thanks so much for asking i am deeply concerned and troubled by what is going on in our country right now. it is so clear that we still have a lot of work ahead of us as a country to be the equal and just society we purport to be. we hope we make a small difference in the communities we serve. in the big picture, i am deeply concerned and i think we all should be and looking in the mirror and saying is america working and doing what we can to act. >> as a business leader and

woman, what reaction do you get when you talk about what you just said. i am sure some people say this is capitalism and everybody has an opportunity to make a lot of money. what is the story? >> it's hard for me to bring into question capitalism, with you but when you peel back the onion, the thing at the center creating incentive is capitalism it's hard for me to say, as somebody who has had the benefit of capitalism. as an entrepreneur but i have to be honest that those opportunities are not available to all we have to look at the engine fueling all of this and saying is thisworking for us and can we create the equal and just future we believe in >> thank you

if we are not thinking about, we are not worrying about it, then i question our own value system. thank you to the ceo of stitch fix. >> thank you >> be back after the break are you a weirdo? [ scoffs ] the weirdest. you make everyone around you crazy. people are normal then they hang out with you and then they're jack nicholson in "the shining". i'm gonna tell my mom you tried to drown me. it's an above ground pool! you're like eight feet tall! find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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can the big winners in the stay at home economy keep winning? for instance chewy, the online pet dealer stock surged from $20 at the bottom to $51 at today's close chewy became essential when you couldn't go out.

they have sales up 46% the stock is up 77% for the year can this thing keep climbing let's dig deeper find out from sumit singh about where the quarter is headed. >> you are actually making money which is something we don't expect from companies growing as rapidly as you are and you gave guidance through the quarter how are you capable to do those things >> it's nice to be here, first of all what we are showing is that what we believed is our company and the service we provide is answer

to an economic threat. 77% of our sales are due to the program. i think we are reading the trends pretty accurate here. we believe there is acceleration online and we are here to stay and play >> i am a customer you have 100 artivitists on you staff. and i think those who have never used chewy would say why does he have 100 artivitists on your st? >> we partner with over 1,000 artiviti artists across the country we do that because we believe in valuing customers and in bringing them surprise and

delight. hand painting pictures and sending it to you. when a pet portrait arrives at your door unannounced -- you can't buy these. it's just our way of thanking you. the joy we find on our customer's faces the dinner table that's why we do it. we enjoy doing it. >> amazon had always undercut everybody. if you look at their pharmacy, they are not being undercut. but, two, they know more about my pets than the corner company that i used to use >> a good point. a couple of things going on there. we believe that this category is a moattive category. customers refer to themselves as pet parents. when we engage we build trust

early on and deploy mechanisms like i just talked about flowers sometimes when pets pass away, pet portraits. shelters and we pick up the tab. it builds up trust we have continued to dimensionalize our business. you mentioned pharmacy that's another area we have added. people love when they get a variety of choices at the same platform >> the prices you charge for pharmaceuticals is well below what we get elsewhere. is it something you have the true price of? >> members cash pay. it's a stark difference how much

you charge and how much we pay to the vet >> we are working with suppliers and manufacturers. we are pricing it and believe everyone should have access to affordable prices. it encourages more u.s. households over a third of u.s. households today don't go to their vets why? because they are afraid of the expenses this is one way we can bring health care to the forefront, for pet parents to go in to vets to visit >> let's talk about the current environment. my daughter went to get a foster cat. why? because of pandemic. people feel alone, sad pets change that those of us who love pets know what they can do in a time of great stress are you hearing from pet owners similarly and are you seeing

adoptions and shelters empty out? >> customers are engaging with our brand and we hear that necessity for kmcompanionship n more than ever people are at home and have the time and willingness to adopt and foster and bring the pets home you are seeing that effect on the foster and shelters. our data isn't clear that every year between march and april, 60% more pets are fostered or adopted than previous years >> that's huge >> i am reading from the filings. if the stock is up so much, is it realistic that pet smart may

want to sell some stock? >> the two companies that own pet smart have been responsible governors of liquidating their position they have done it in a structured and measured manner we expect nothing different moving forward >> it's hard to believe that there was a category so-called amazon -- i have to congratulate you. as a customer it's exciting to see all of the other chews boxes on the block you see amazon boxes and chewy boxes, and you deserve it because of the way you treat our pets great to see you with a blow away profit. >> it's still great. we will be back after the break.

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even as america goes back to work, you have to remember that the pandemic has changed wait we do business. some of those changes -- we have heard from tech ceo after tech ceo, they have so many tools to enable to work from home and are better we are not going back. docu sign makes it important to sign documents from the web. you can seal the deal on contracts. i have used it and it is

amazingly convenient i wasn't surprised they rallied 125% from its march close. i wouldn't tell you to buy it, but it is still an excellent number the beaten down recovery place, i think this one has a terrific story even though the quarter is over so i have dan here from docu sign at the top is says black lives matter why do you put that at the top of your site >> it's a crazy time for living. on top of this pandemic that has frozen so much of the economy, we have a realization that we

have a poorly treated part, from our employees but citizens we thought it was important to speak out in solidarity. we have a lot to do inside so we are not pointing fingers but we just wanted it to be known we are standing with our brothers >> there was a topic let's keep this area white, let's red line, do everything we can, one of those things done in person. i always felt you weren't the right person to move into a neighborhood the thing about docu sign, it is not biased hopefully it makes people more equal. >> from the internet, but plenty

of things we are focusing on doing with the company internally some things can be making the world more agreeable with our product line there is no shortage of opportunities to try to make a positive changehere because there is a lot to fiction. -- fix. >> there is a lot of friction in the protest of buying and selling something. i have bought a house using docu sign i did it two months ago. there were no extraneous processes that made no sense to me that people told me were important and that you couldn't do via docusign. when will we get to the point where people realize they are extraneously charging us and

notaries telling us that they have to use them, know they are fighting a losing battle >> i think it's coming fast. we are making investment to the notary fees. it is not just the cost, but the convenience. there is a huge opportunity. we see our financial service clients with the signature on the documents is the notary process. a big part of it is identification of someone as an individual and some requirements for transactions are higher than with standard agreement. that's what we are doing now leveraging the identity capability we are saying you can do a notary online and not have a person come to your home for the last step. >> i am glad you mention that.

i have had to fight those people myself department of labor and sba. both of those i would have thought would be your enemy. probably a lot of mouths to feed, but they decided to use docusign >> we have been excited about this you talked about the digital transformation happening so much faster government agencies in one of the groups we have had tremendous demanding since the beginning of this year where they realized it was so important not just for the efficiency of their own organization and work from home model, but they didn't have a lot of optiones to process transactions, but from american constituents, consumers receiving unemployment benefits, from businesses getting sba loans. if it were not for docusign, they could not get the documents

quickly. we have banks delivering these large loans and many of them are doing it in 24 hours used to take weeks government agencies are getting excited and i hope that transformation continues going forward. >> same thing in my business, 24-hour docusign do you think they will say it was just a pandemic and we have to go back to the way we were. or will people realize how much time and money it saves and it's gameset match? >> i don't think we are going back the future has been pulled forward. we look at most of the transformations happening. there were a couple cases specific to covid-19 those cases got pulled forward mostly what we have seen are companies that had a roadmap that wanted to pull things into that digital world, get away

from paper and manual processes and had a bad end consumer experience no one wants to go back. we think that the new era is gone and this is what it is going to look like >> the only thing that was pulled forward to me was when my assist at that point said you bought it. no, you own it i had buyer's remorse immediately rather than waiting 48 jobs. dan, thank you for coming on you have a great company >> this is the kind of company that will never go back. it's too easy. you have to be in a transaction to realize how quickly it gets done can i find an investment firm with a truly long-term view

that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

it is time to talk about -- are you ready? brandon in new jersey. >> caller: jim, $156 in january and $46 in april it's up to $108. too late to buy? >> i think it can go a little lower. i think it will not test the bottom but go a little lower

than it is calvin >> caller: penn gaming >> i like penn gaming. it got down rated today. just pull the trigger. casinos are packed chris? >> caller: accountability, formula use of body cam? >> i have liked this stock i only understand wdon't undersy ip since the tragedy i think axon is a good thing to use the way we do police work in the country. jonathan in pennsylvania >> caller: love the show

i am calling about general mills. >> they had a terrific quarter we are not going to deal with the stay at home economy anymore but we are still in a recession. general mills works. the pet food business is really on fire. michael in new jersey? >> caller: thank you for taking my call for investors like myself i have been investing in a small biotech for a few years now. a few months ago you had their ceo on they just reduced new data on their cancer antibody. i would like your opinion on agenus >> it hasn't hurt anybody or hurt anybody i think there are greener pastures in the biotech world. >> caller: thanks for having me

on the show. about 90 days ago you mentioned a stock to me g-3. it was only 2.7/8 and now it's up to 18 should i keep holding onto it? >> i would keep holding onto it. i think it is one of the winners. let's go to michael. >> caller: thank you for taking my call. my stock is zuora. >> they had a good quarter they need to put several good quarters together because they had several bad quarters, but i think it will be making a comeback robert in texas. >> caller: i'm interested in seattle genetics >> i am going to talk about this thursday at 11:30. here are some problems

they had a great presentation, but there are sellers that continue to lurk i think it is a buy. it is speculative. we heard them on air i think their formulation is novel. i think they are a buy let's go to jack >> caller: position on tegna >> media and there is almost no e media worth recommending and that is the conclusion of the lightning round! >> lightning round is sponsored by td ameritrade tomorrow, live from post 9 -- >> one lousy way to get

proceeds you don't want to go green to cal to your stomach. you just want to go green to your storm mass. ♪

all new investors who have been bidding this up this week stop it. a harsh lesson on who owns the

company. who owns the company when the company goes bankrupt, it's not the stock holders. it's the creditors hertz filed for bankruptcy protection because is has $19 million in interest. after getting hammered down to a dollar, it came roaring back carl eicahn threw in the towel sharing 54 million shares at 52 cents a share. if there was a chance this stock would be worth anything, he would have stuck around.

he didn't. there is a pecking order in bankruptcy creditors are entitled to equity then they create a new stock to try to make stock holders whole. carl icahn knew how this worked and he didn't want to ride it to zero sometimes they are senior mortgage bank holders. they all want a piece. the enterprise is worth something, but the common stock holders are at the bottom of the list buying the old hertz with $19 million in debt.

this stock will likely be canceled if i run the bankruptcy court i would run an edict that said this darned thing can't trade. instead it traded 295 million today. the only thing is only 140 million. and it's not just hertz. the same with other companies, the same way herds rertz is beig repossessed or your car or home is getting repossessed i can count on one hand where a company went bankrupt and the common stock was still worth something you wanted to buy. the bonds can be a good buy. way back in the day a company

called memorex, we bought the common stock every day betting the business would turn around but it didn't. it filed for bankruptcy and we lost the whole investment. it taught me a lesson. if the stock goes to zero, you lose everything. at least it stopped at zero. the only people being robbed here are you, the buyers, a perverse reverse robin hood. keep that in mind before you buy. stick with cramer and here is a sneak peek into what scott has tonight at 7:00. >> did the lone star state open too early? a spike in virus cases see what one doctor is seeing on the front line plus new problems for the food lines. and one woman who found gold in the middle of a crisis

tonight at 7:00 p.m. professional or consultantoul for investment risks and information. snhu let's you transfer up to 90 credits - [announcer] if you've tried college but never finished, toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it.

you can finish. - [announcer] finish your degree at snhu.edu. one of my favorite stocks wendy's reported some very good numbers this morning all of the way back to almost 24 i still think it is a buy. it is the best at what it does i think when the stories open it will do better this has just been the drive through and they are crushing it i am always trying to find the bad for you right here on "mad

money. i am gjim cramer and i will see you tomorrow good even, on day 163 of the coronavirus crisis, a spike in texas. is it a warning for the rest of the country? >> we are seeing a spike, and we are very concerned about that. spike in texas, virus cases are surging. tonight what's happening on the ground plus china brings down the barriers and puts the thermometers away. can they finally declare victory over the virus new worries cast a shadow on