tv Mad Money CNBC April 16, 2021 6:00pm-7:00pm EDT
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and calendar spreads on netflix going into earnings. >> that does it for us on "options action" we'll beback next friday at 5:30 eastern. meantime don't bo anywhere "mad money" with jim cramer starts right now. have a great weekend 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 trying to make you money. my job is not just to train but educate and teach you. call me or tweet me @jimcramer when is it going to come in already? i mean, that is the question on everybody's lips but it's the question as the averages crash through
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more records, the dow gaining 165 points, s&p climbing and nasdaq advancing .10%. each saw new highs led by a new sector health care takes over causing the cyclical to fall behind. retail charges ahead while tech drops off. the rotation gives you a leader, a server, if you will and you have a bunch of studs at the front jamming it down the throats of the bears so can the bulls keepimpunity? let's check next week's game plan we kick things off with coca-cola a stock that hasn't done much because it's not getting a lot of love. pepsi co joined a bit. the pure beverage with no snacking business, remember, snacking stay at home, people love that stuff by i expect a good number from them and a great story about food service reopenings, i think coca-cola does well, don't know if it goes well as pepsico.
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we hear from united airlines and if it's anything like delta, you'll hear about the coming boom so the stock market can continue the terrific run. this thing, this is up 30% for the year what did ibm do? the one that kept the fast growing business led by red hat? too early to tell. the stock is hanging in there and lately the older tech names have been pretty darn stock. maybe ibm joins them. tuesday we get results from stalls of the earning season abbott labs,johnson & johnson and packrcotor and gamble.
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it's been punished by a cdc intent on scaring a public out of getting a vaccination than actually getting people vaccinated with safety i bet j&j has a fantastic quarter and a better pipeline. proctor and gamble are tough comparisons and coping with real inflation and that's putting pressure on the margins. i don't think it can pass on the entirety of the cost to the consumer, too much competition after the close, netflix reports and should be fun. netflix beats the numbers and principles seem to have a great time talking about their business they love what they do i find myself taking as many notes about what series to watch as what numbers they will put up even the netflix conference call has good content wednesday we hear from verizon will this stock move again or a p poxy to the highest a50s? i wonder if they will feel heat
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given the money they have to spend on towers after the recent spectrum auction i'm expecting nothing new. if you have to own a phone company, i prefer t-mobile after the close we get results from the two -- let's say two of the week's best performers, land research, lrcs and chipotle. they're the answer to the chips. the semi conductor industry simply can't handle the business they're not able to. when you hear taijuan semi endlessly talk about raising the capital equipment budget, that means that lamb is going to make a fortune. to think they bought millions of shares back, smart management and great execution, fantastic group of guys. as for chipotle, the stock is hanging around and here it's all time highs for a little while buying time for the big breakout and i think you will see that next week. management talks about the pickup in business thanks to the great reopening. i'm betting this great natural
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food and phenomenal customer service will blow the doors off the corner triggering another round of price target boosts as the analysts desperately try to play catchup to the stock prices thursday has so much happening that i can't do it justice but we'll start with union pacific oh my. i'm at home. i can't tell it easy i won't press the train wreck button i'm looking for the all aboard button it not here. is this magic? see where i am anyway, i think union pacific will tell a story of making more with less. meaning efficiency galore. then there is dow chemical ppg is any guide from last night it would shut up amazing numbers allowing the stock to break to the 70s and a huge gain from where it was trading when the ceo came on the show after he bought a boat load of stock in the 20s. we also hear from dan and i
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can't wait to see how we'll they're doing. they have tremendous high growth, health care business part of which they picked up from ge for a song iexpect a fantastic quarter. how about new corp it's chancetransitory or not, wl hear a return to the house or era of steel making. after the close, we get results from the newly controversial intel. now, led by the terrific pat who has become an evangelist pat is doing a terrific job inspiring people inside and outside the great institution. if the stock gets hit, i would be a buyer he can't turn the battleship on a dime but it will be turned how many can make a spike? we heard about the car
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carona selzer. the category is growing so rapidly, sam adams should do just fine. friday we hear from two companies with fantastic companies, axp the former really should be buying time waiting for aerospace orders honeywell is a software building service play, not to mention incredible health care company i think the numbers can go higher still as for america express, gauging the power of the great reopening with the combination of small business, remember, they offer credit, travel and entertainment lines, we should be able to get a good read on the strength of the recovery going forward it going to be a fantastic barometer. on friday, the ceo of bristol myers, well, he's going to take the stage to explain what his company has going for it t i think the world of them can the stock break away from the pact not clear. maybe we'll hear how much money these guys have made from the
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accusation and maybe justification for the myocardia. next year marks the beginning of the real earning season, not the bank earning season and we're actually going to get the impact of inflation and reopening i think the former is a big negative but the ladder is so positive the ball can stay in the air ready for a beautiful over the net and to the floor. i say we take calls. i say we go to gregory in california, gregory? >> caller: hi, jim as a covid survivor and j&j vaccine recipient, i want to say how grateful i am for your h honesty regarding the cdc and how ludicrous the behavior is. it's left me feeling a little unvaccinated. >> they have done, frankly, their narrative is disgraceful it disgraceful but go ahead, how can i help >> caller: so three months ago
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this i poed and doubled and today trading in the high 60s. they did a similar deal with shopify that paypal did with ebay back in the day this company has an exclusive point of sale right for shop pay, shopifies checkout and have a similar deal with walmart, growing at 45% year over year with 75% gross margins i'm not looking for a double in the next quarter or anything but over the next year or two, am i wrong thinking firmly that a firm is a fist pounding buy? >> well, boo-yah good way to put it i think the world of it on tech jump, the show i think is fan it is -- fantastic. there is competition out of nowhere. i think a firm is going to hold its own and exactly why i like it i like it. they made a deal with shopify and shopify wouldn't make a deal with anyone. i think you're fine but it's not going to roar with too much competition. earning season is shifting into
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high gear next week and we'll learn about the real impact of inflation but also, the real positive of the great reopening. on "mad money" tonight, could insurance disruptor called metro mile be worth considering here find out about this one. then, the most controversy of all, stock dropped more than 12% yesterday after a short seller scorpian capital i'm giving the ceo the floor to tell his side of the story and one of the newest unicorns has private player the zebra earned it stripes? i got the exclusive 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
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call at 1-800-743-cnbc miss something head to "mad money" dot cnbc.com our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected. with a bang, energy and change came to every part of our universe. seismic or small, it continues.
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and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. in the past two months, the entire spac complex is laid to waste which is why i spent so much time warning you to stay away from these things but now many have come down to levels where you have to take a lard look at them which brings me to metro mile a company trying to disrupt the auto insurance industry we aren't fans of, frankly. the model, metro model offers personalized insurance for low mileage drivers, two of -thirdsf the drivers in the united states if you don't drive much, you're probably getting ripped off by your insurance and don't know
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it that's where metro mile comes in policies pay by the mile the average customer saves 47% versus what they pay before. this has high profile backers including mark cuban and after surging at $20 a couple months ago, the stock plummeted to under $8 as of today 20% discount to where the spac backers got into metro mile. that's very unusual. so could the stock be enticing at these levels? let's check in with the ceo of metro mile to get a better sense of business and prospects. welcome to "mad money." >> hey, great to be here, jim, thanks. >> all right so, dan, i don't drive a lot i did when my kids were younger and my car is mostly in my garage, but i haven't changed. i pay the same rate as i always have how can metro mile help me >> you're a perfect example. yeah, so metro mile, we're a
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digital insurer and we're offering insurance tailored to you as the individual. instead of the flat rate you pay, we charge you for the actual miles you drive so people on average who drive less than the average, just two-thirds of drivers save about 47% and basically, you sign up with metro mile.com and get a monthly fixed cost, which have a really small part of your premium and cents per mile and connect your car through a device or directly with a vehicle and you only pay every month for your actual miles driven in effect, that means most people who drive less than average and in your case how you don't drive would save a lot in the insurance relative to the standard fixed rate insurance. >> well, okay, i see car companies spend -- the auto insurers for cars spend a fortune to advertise and compete against each other on name brand, not that much on price. i look at your growth which is right now not as much as i'd
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like to see from a company, but i believe if everybody knew about your company, there are many people who would switch how are you going to get the word out because i think a lot of people are paying too much for their car insurance? >> yeah, couldn't agree more it interesting the way you traditionally have to sell insurance is that because all the products are largely the same, largely commoditized, you put your brand out there and make sure you're top of mind for everyone so when they decide to switch insurance, you're one of the two or three companies you go and look at what is really unique about metro mile and per mile insurance, there is a reason for you as a customer to believe by switching today, you'll actually save the way you live your life being a low mileage driver means you'll be safe you don't have to wait until someone decides to switch insurance. we've been getting the word out through the product experience itself and digital channels to connect the idea of how you live
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your life whether you're working from home, take public transit and vent lyrecently retired, wh leads you to being a low mileage driver and what is exciting is once someone becomes a customer, you find people are excited about sharing the bawith their s and family part of what drives that experience, people join for saving for instance, they offer a fully automated seamless digital claims experience. normally, you have to sit on the phone and now you can enter this on your phone and be on your way. not only is it easier for the customer, the costs are lower and we also help people avoid parking tickets and diagnose car issues and that customer experience that comes afterwards is a valuable asset as a company because then your marketing is
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less about putting the word out there or getting your brand out there and more about what is the real value that we can bring to our customers and metro mile -- >> well, let me ask you. when i look at that and it does sound like a terrific proposition, we looked at your documents and said one-year new customer retention rate was 69.4%. is that -- to us afterpropositi low. in your industry why is that ex extraordinarily high. >> in the industry, that's quite strong what you typically find for insurance companies that have been around for a long time, they'll retain 80 to 90% of the customers on board that is looking at all customers, even ones with them for 10, 15 years because we're a younger company, we're sharing what is the retention rate after you first
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join when you look at our customers with us for two or three years, their retention rate is also in the mid 80s so if you look at our numbers, our average lifetime is three and a half years comparably better than most insurers. >> so, i mean, where -- i mean, people can go to what site what do they do if they listened to what you're saying, of obviously, many are paying too much what do they do? >> go to metro mile.com and enter in basic information and get your monthly fixed cost plus per mile rate. what you'll find is that your monthly fixed cost is typically 30% of what you normally pay and the rest is all mileage. if you driveless than 1,000 miles a month, you typically save with metro mile the other way you can find out is downloading the app and with that, we'll actually give you a trial period called ride along and help you estimate how much you save by using sensors on the
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phone. >> look, i'm going to do it this weekend. i'm obviously paying too much i didn't know about the service. i'm not endorsing you but i wanted to know why i'm not using it i've already sent the email. great to have you on the show. i don't understand why the stock is so low given the concept. that's the ceo of metro mile great to have you on the show. >> thank you. >> "mad money" is back after the break. >> announcer: one e.v. company is facing intense back lash after the release of a condemning report. the ceo of quantum scrapape is firing back and responding to allegations next
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aggressive short sellers and in many cases they deserve it yesterday, it happened at quantum scape delivering a better electric battery and to my mind, i've had them on several times and a legitimate player in the space. very smart guys called scorpion capital published 188-page report that accuses quantum scrape of being a pump and dump spac scam, one that's in the fraud. now on the surface some of this stuff seeming damming but not a single one of the sources are named. a lot of the space in the industry is battery and that's beyond me. after taking most of yesterday to review the report, quantum scape has come out swinging and management stands by the data and point out they have been the most transparent of solid batteries and the ceo and cto joined analysts in a web cast to respond at length by their own desire in great detail last time i extended a public
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invitation for them to do the same and they took me up immediately. let's get to the bottom of what is going on with the co-founder and ceo of quantum scape and the short seller was on melissa's show yesterday on "fast money" . welcome back to "mad money." >> great to be here, as always. >> thank you okay first, i just want to set the stage here you have technology that you've always been transparent on wall street actual shareholders have hyped it to the point where i think that there is -- it's a little at odds with what you've always said on the show, which is it's new technology and you open it works out. is there something between what you've been saying and over enthusiastic people that may have taken it too high >> one thing we've been transparent about what we have and the work that needs to be done we made clear we have, we believe, addressed one of the
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fundamental issues that held back the batteries over the last several decades, which is a working separator, the heart of the battery. that's a pretty substantial breakthrough talk to the experts and they will recognize that. it's always clear we're not done yet. we have shown it works in single layer cells and shown we can make four layer cells out of it but we're stacking up to make multiple dozens of layers and need to ramp up production and production ramping up is not physics but requires a lot of execution capability so those are tasks that lie ahead of us and we've been transparent about that that's one of the things frankly that we pride ourselves on we think we've been the most transparent of any solid state battery company. we've put out data with the parameters and hopefully try to create an accurate sense of both the opportunity ahead of us as well as the tasks that remain to
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be done. >> okay. well, i know i've had you on several times and one of the reasons is because of your relationship with volkswagon and estimate another milestone that got you a second $100 million and for instance, recently, yesterday, you added salina excuse my pronouncing, she's the number two person at panasonic and knows more about battery technology than anyone in the world. i have to believe both vw and your new board member salina took a lot of time and made judgments and didn't need to be invested or join the board. >> 100%. salina is one of the world experts in not only battery technology but battery manufacturing and you were to get a tour of the factory, you get an amazing sense how deep she is and she's on the board, you know, we fully intend to
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leverage her with our execution team on the manufacturing front. so that is absolutely in our view a great, you know, confidence with somebody with that death ppth of knowledge and another manufacturing expert we have some great capitalists so i think there is a lot of people that have looked pretty deeply at what we have and we're pretty confident that the numbers that we have are pretty ground breaking. >> okay. so our viewers are of bviously t institutions and people that are afraid, afraid they have lost a lot of money on spacs and one of them asked me to say could you please ask is there another lockup coming that might be expiring before they decide you know what? the sotock is knocked down by short sellers. is there a lockup expiration coming >> we've been very clear in all
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of our sec filings with the various lockups are. like any public offering, there are various lockups that expire. there is one towards the end of may but i think if you look at the core team here, these are people that have been here for ten years and they're on a mission, the mission is more than just creating economic value. that's obviously fantastic but along with that we want to make an impact on emissions and climate and i think these are not people here to just to flip the stock. that's more than i can say about a typical short seller short sellers describe the stock and then try to make sure to get the stock to drop. so i think looking at a very long term committed team that, you know, has it commitment. >> well, also, the volkswagon deal, volumekswagon didn't haveo do that if you thought they
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didn't meet the milestone. at the same time, what did they get for their $100 million >> so they committed last year to make a $200 million investment and the first $100 million of that had no closing conditions other than time that round closed in december. the second $100 million was tied to mazda and it was defined up front by them. it was a specific set of dimensions in our cell, a specific rate of power that was tested at, a specific temperature and a specific cycle life done in their labs and so, you know, we provided the cells to them and shipped them to germany and tested them and the cells worked successfully and as a result, they went forward with the $100 million. >> now, in your -- you still even though this is early technology, your projections are aggressive do you feel good about the projections how much money you could make four, five years as
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this process goes along. it is early stage technology everyone wants it. the world wants this battery it's faster and cheaper and going to be much cleaner but it does seem like the amount of money you make that you say you could make is let's say possibly that it may not be able to -- you might not be able to generate it that quickly. >> well, here is what we know. you know, we know that the demand for batteries right now is near infinate everybody out there wants batteries. we also know that everybody needs a better battery and you pointed out the idea of a battery with 50 to 80% greater energy density, greater range, fast charged is a safer, lower cost, has longer life. those are attributes that apply to every battery if you can build that battery at scale, absolutely we would expect the demand to be dramatic the question becomes, you know,y
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in production and how quickly can we ramp up the production? one is the core science of does a technology work? we've demonstrated no our labs but multiple oem customer labs they have done the testing and seen the same results we published and relative to the scaling up production. we have people struggle and the board helping us do that but we have vw, one of the world's largest notwiths st world manufg companies doing a joint venture. it not just a startup out of california but a technology company in california coupled with a manufacturing giant and when you couple that with -- >> okay, well -- spanasonic, that's a great combination. >> okay. now the 108 pages is pretty
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salve savage i didn't go into the charges of fraud. let me ask yousomething, 20 years ago someone wrote a whole book about me and the book was filled with lies and i sued them i went to court. i got the book pulled. no one saw it because it was filled with lies if you think this is filled with lies, why wouldn't you do the same thing i did >> well, we're absolutely going to look at that. the reality is some of those, some of the points in there are absurd to the point where they're things that we want to dig on we'll look into that and based on advice we get, pursue that. at the end of the day, our business is to build a better battery and really deliver this to our customers who are asking for it we don't want to get too districted but we feel pretty good where we are and we've been very transparent by the data and shared incredible detail about the numbers.
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the whole report wouldn't have been possible. no research at all, we took our outer slide and regurgitated them so i just don't think there is really, you know, any narrative to these things. the agenda is clear. >> understood. understood look, glad you came on the show and we asked you to come on and you said absolutely yes. morgan stanley, boom, you wanted to go in front of them don't know what more you can ask for. that's co-founder, chairman, ceo of quantum scraape. thank you for coming on the show. >> always a pleasure. >> announcer: coming up, is the insurance game ready to change its stripes? cramer goes off the tape with a company that wants to put the customer in control. next
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you know us, we're always on the lookout for the next big thing and that means checking in on the smaller privately held companies meaning you can't trade the stock shaking things up take the zebra, you need the to get the site it runs insurance for home, auto insurance and boat insurance and raised $150 million and values the company over $1 billion it a unicorn it's an intriguing concept to comparison shop for insurance. it's as opaque as you know could this be the future of the industry keith is the ceo of zebra. we got to learn more about this company. welcome to "mad money."
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>> thank you for having me, appreciate it. >> now, keith, you were at kay yak -- kayak where i used to get good prices for travel how similar are these and why did you leave kayak for the zebra? >> conceptionally, huge similarities surprisingly similarities between travel and insurance but it's still the same consumer problem trying to make it easier for consumers to compare what can be harder to compare and find the right product at the right price and i switched, i joined kayak when there were eight of us from a startup to taking public to multi price line and i knew i had one more shot in me and had the opportunity to go to the szebra which was 50 people and looked at the problem they were trying to solve in the market and
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noticed it was a giant market, auto insurance is a huge market, very fragmented. i don't think it surprises people there is a lot of consumer dissatisfaction in the process and nobody doing a good job in terms of making it easier for consumers to compare and shop for insurance, though which that's why when some investers wanted to invest and asked me to come along, i definite he decide id it was worth the effort. >> keith, let's -- i mean, here is what i wonder sometimes i do -- i google cheapest auto insurance. that's kind of how i do things is that not the correct way to go about things? >> i mean, it is going to be time consuming there is a couple things that could happen you could wind up bouncing around from insurance supplier site to insurance supplier site and it will take you a lot of time because you have to enter your information in them and get
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one result back based on what that carrier has or worse, you could wind up going to sites out there today which is nothing more than they bayouuy you once sell you five or six times and get a lot of phone calls it's not the best way to do it we'll get your information, we'll get the rates back from different insurance partners we'll use algorithms to show you the best results and help you find out what you want and either send you off to the insurance carrier site to buy it or we'll help you buy it ourselves. we try to make it so much easier for you to find what you're looking for. >> if someone does do a -- does take a policy, the insurer pays you a percentage in order so that you get compensated somehow? >> well, yeah, we'll get paid either just a flat rate for them buying a policy or if we bind it ourselves, we get a commission for it but it's nice because we're incentivize.
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a consumer shopping for insurance, they proorimarily wat to find the right policy and the carrier wants to sell a policy we're insen t incentivize the s. i won't do anything that doesn't make sense for them. >> one more thing, what is the mode here, keith you can say the mode is keith because he did kayak i wonder if people watch the show and say you know what i'm going to get money and do the zebra, the zebra with stripes. how do we keep it so other companies don't do the same thing you do >> the nice thing is, this isn't an easy thing to do. when we started kayak, that was so long ago before the iphone so it was a long time ago and rel revolutionized it. there was technology to give rates for flights and hotels that doesn't exist in insurance. the fact we can pull in prices
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from so many different insurance carriers isn't something we want to do and scale matters in this market, too. so the fact that we've built scale and can be meaningful to insurance carriers, build some trust with consumers, i mean, up mit -- ultimately, we're tryingadvy buyers and find the best policy. we built this relationship with hundreds of carriers you have to be able to give them good advice and be trustworthy so it takes along time to get there. >> i can see that. i can see that and look, obviously, anything that saves money, we're in favor of on "mad money. keith, ceo of the zebra. thank you for coming on the show thank you for having me. appreciate it. "mad money" is back after the break. >> announcer: coming up next. >> let's make money together what do we got >> announcer: cramer is bringing the thunder and answering your burning questions in today's edition of the lightning round
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you can try to predict the future or you can create it. we're driving it. everywhere. we emit optimism, not exhaust. we plug in our vehicles as naturally as we charge our phones. we. we are generation e. we want smart. clean. and safe. to also be fun, easy and powerful! ultium! a battery that charges fast. runs long. it fits everyone. nobody will be left out. and that, changes everything. ♪ ♪
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did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room.
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♪ ♪ wait a second, before we begin tonight's lightening round, want to congratulate our show's director allen babbo the, retiring after 28 years at the network. he's done a wonderful jobs behind the scenes even when covid presented new production challenges, alan rose to the occasion i with the entire "mad money"
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staff will miss you and we thank you for your dedication. and now, and now it is time for the likening round save, save, buy, buy, sell, sell and then the lightning round is over are you ready ski daddy? time for the lightening round. let's start with jason in new york, jason? >> caller: how are you doing, jim? >> jason, couldn't be better how about you? >> caller: lithium motors. my question -- >> man, i like lithium i like lithium i call it laddy. why? because that's where my daughter lived in lithia next to the park and that is exactly where the company is located and man, is it ever smoking good i'd biduy it here let's go to john in new jersey, john >> caller: what's up >> johnny. i don't know, you tell me. >> caller: so i have a question, i've been looking at stock for
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awhile that signed a five-year deal that will bring the company $200 million per year from peacock. nbc universal. today closed out about $56 do you think it worth a buy? >> yes, i do it's a very smart well run company. the same thing from take two which by the way, stock was down i think you're in good hands let go to corey in illinois, corey? >> caller: hey, jim, this is corey from chicago how are you doing today? >> doing well. how about you? boo-yah. >> caller: i'm doing great thanks for asking. been a big fan of your show, been watching for over 11 years now so just wanted to say thanks for all your great wisdom in the entertainment over the years. >> appreciate that thank you very much. thank you. >> caller: well, today -- >> a stock, too, you probably have a stock >> caller: yes, do have a stock. i was wondering about iipr, they
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are a -- >> it's a cannabis warehouse company, one of the safest ways to invest in cannabis. i'm a big, big believer. i think you got horse sense with that one let go to -- oh, chance in texas, chance? oh, come on, let chance speak. shut up. chance >> caller: yes, sir. boo-yah from san antonio, texas, this is chance i've been watching you for a few weeks and i love it. i wanted to see what you thought about pfef fiver international. >> it's a freelance -- it's weird. it has a cool freelance model and i'm a giant believer in it but the stock is among the most expensive companies we follow but it keeps getting it right and i will give you it, wix is the same i like that, too let go to mike in pennsylvania, mike, mike, mike >> caller: jim cramer, thank you
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for taking my call, sir. >> of course >> caller: hey, jim, at 120 you said it going much higher. now, my stock is trading at $104 what do you think of upst? >> remember, i liked it when it was about 70 hear is the problem with this company. it hugely shorted. 20% of it is shorted and guys try to knock it down all the time i think it's a very good a.i. credit company but apparently people feel that dave doesn't have anything special. i think he does. i think it's a good situation so i'm not backing away down five today. let take one more. let's go to jason in alabama, jason? >> caller: hey, jim, thanks for taking my call. >> jason my pleasure, what's up >> caller: my stock today is united natural foods symbol unfi. >> this company made a major
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comeback it was a bow wow and done well but up 125%. i suggest you wait until it cools off before you buy more and that, ladies and gentlemen, is the conclusion of the light c -- lightening round. >> announcer: the lightning round is sponsored by t.d. ameritrade coming up, will a looming geopolitical challenge become a threat to your portfolio cramer takes on the china ka numb drum next i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help.
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is china making any effort to fix the relationship with washington they hoped the situation would cool down and we get more access to the now booming chinese economy, we learned last night grew at an 18% clip in the first quarter. it would have been easy, very easy to calm everything down, frankly. remember, two and a half years ago vice president mike pence gave a big speech at the hudson institute where he laid out the st strategy for a cold war, only with china filling the role of the soviet union meddling in american elections and imprisoning a million of its own muslim citizens and crackingdown on buddhists
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leading 150 monks to literally set themselves on fire like the old ussr they accused them of using wealth and power to corrupt nations all over the globe through the belt and road initiative but the big flash point is taijuan they claimed to be the legitimate government of china where the nationals set up shop while china never stopped claiming that it owns taijuan. ever since nixon agreed to recognize the people's republic, we've been walking a tight rope protecting autonomy. china wants complete reunification but with taijuan protected by the u.s. military, there is not a lot they can do without causing world war three. the communist party decides to test us and taking that to a whole new level with 25 chinese fighter planes crashing through taijuan's air spice ace the oth day. when biden was sworn in they told he would denounce his press
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s -- predecessors strategy and nar navaro accused of stealing that hasn't happened not at all in part because china keeps ratcheting up the tension. biden stepped up calls to stop human rights abuses. that's the last thing the communist party wants to hear. they can handle tariffs. that's just money. but they don't want america pushing for stuff like freedom or democracy turns out the relationship was about more than trump. the chinese government views the united states as the sun setting super power while they keep getting stronger and stronger. that's why the situation keeps getting worse. this hasn't been this bad for awhile they buy as many semi conductors asamerica.
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the chinese market is so important to companies whether we talk about planes sold by boeing or sneakers and cell phones sold by nike and apple and everything feels like it in the balance. i got to tell you, i'm not feeling great about this but there is always room to make a deal and much more likely the relationship keeps getting worse. maybe the government can get europe on board in a collision of rich democracies but europe relies on china to buy 25% of the exports. the communist party bets that ship sailed and i think they're probably right if you want to be a cynic about it, the rest of the world doesn't see this as a conflict between dictatorship and democracy. they see two super powers fighting for dominance and don't want to get roped into it. we're not on a collision course with china but past that i don't think the chinese government is crazy enough to make a run at taijuan but the fact they are willing to do this, means that i have no interest in going back to the old status quo there will be no olive branch
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and that's ahuge implication not just for the stock market but for the whole world. i'd like to say there is always a bull market somewhere and i promise to find it just for you here on "mad money." i'm jim cramer, see you monday the news wiuz wews with shepard starts now another mass shooting. eight dead at a fedex facility in indianapolis. i'm shepard smith. this is the news on cnbc >> fedex officials have confirmed that he was a former employee at the facility. >> police seize evidence from the suspect's home and search for a motive as america endures its ninth mass murder over the past month adam toledo, daunte wright, george floyd, all killed by cops. >> too often in this country law enforcement uses unnecessary force. >> tonight examining how officers train for life-or-death encounters. close to
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