that's fun, too. >> we do twitter. i think twitter continues to grind higher dan doesn't. nice haircut on dan nathan he looks good. >> not as good as tony zhang but it looks good. >> never. >> looks really good "mad money" with jim cramer starts right now. now. 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 trying to make you some money. my job is not just to entertain you but to educate and teach you. call me or tweet me @jimcramer every day, it seems, we get another piece of extraordinary economic news.

and every day, it's presented as something dangerous, something negative whoa something that will cause real problems down the road rather than greeting good news with wonder or jubilation, we respond with fear, because we have forgotten what a rapidly expanding economy looks like maybe some people are too young. that includes a day like today, where the s&p ticked down, nasdaq gained .13% i'm going to give you the classic example. in the "wall street journal" when i woke up today, u.s. existing home prices hit record high in may. all right, this piece, like so many others, reads like exhibit a in the case against jay powell our valiant fed chairman, who is trying to hold off on raising rates in order to boost job growth even as demand is constrained by supply, which makes overall sales look weak. high prices, weak sales, recipe for disaster wait one second.

first powell recognizes a booming housing market is a good thing, not a bad thing this is an industry that gives people good paying jobs even if they don't have a computer science degree from stanford plus, as i never get tired of telling you, housing punches above its weight in the economy. so you would much rather have a rising housing market which is 10% of the economy, than a faltering housing market yet when you read these headlines about home prices hitting new records, they're almost always written like an haringer of bad times, like the economy must be overheating because of housing is this industry the econemy wh it's good. something that must be tamed lest we end up with hyperinflation, with greenbacks and not deutschemarks. this is a good time to get you context beyond the headlines in the context, what's happening in the housing market is healthy, not toxic

and i say that knowing that kb homes which just reported disappointed some who were looking for better numbers for a clearer head of what's going on, i'm turning to doug yearly, the ceo of toll brothers not just because he runs a giant home builder, but because i have known him for years. when things aren't good, he's always been forthcoming about it as has his previous boss, bob toll gnaw that long ago, doug put an incredibly enlightening analyst day to explain why the housing market's growth might be longer than you think, rather than a cyclical boom and bust we have all come to expect listen to this over the last decade, 6 million less houses were built 6 million less houses were built that in the previous four decades going back to the 1970s. he goes on, it's possible that housing is just beginning to recover, given that we have many more people in this country than when we were building more

homes, end quote it's going to take a long time for this pent-up demand to be satisfied. we think it's going to be years before we get back to therium we prior decades. when we have half the population now, we're doing half that with twice the population now, if you think that he's talking his book, and i get that i'm sure the skeptics are doing that, let's go to stewart leonard. i helped manage his brilliant father's finances at goldman sachs. miller tells us, quote, new home construction cannot ramp quickly enough to fill the void of the production deficit that is persistent over the last decade, end quote. he continues, quote, while some question whether that deficit is 1 million homes or 5.5 million homes, the bottom line is that supply is short and it's likely to remain that way for some time to come, end quote that's right we literally can't build new homes fast enough to meet

demand let's say it, let's do what everybody tells me has to happen if jay powell raises interest rates, that's not going toer create more homes. it could also make housing less affordable by driving up mortgage rates i don't know, but a lot of that demand might be indestructible if we give it time, it will be good it will be a good thing, as tolls lays out, there are 73 million millennials who are now entering their 30s, and they're buying homes, end quote. this demographic detail always gets left out of stories about the red hot housing market, and that's plain misleading to do so because it means the demand may be, and here's a word no one wants to use with housing, but i'm going to use it, the demand may be secular, not cyclical the fed can try to slam the brakes on the economy by raising interest rates, but millennials have been stuck in their parents' basements for years after a decade, they're finally have the capital to buy their own homes.

why would we want to put a stop to them buying their own homes and all the good things that happen in the economy when housing hums because of the multiplying effect of housing. speaking of the financial crisis, we all remember the last time we had a red hot housing market, 2006, before the worst economic meltdown since the great depression, and that red hot housing market led to the financial crisis it was the epicenter but 2021 is not 2006 the problem back then was that many people were trading homes like they trade stocks on robinhood, except with more leverage our regulars were asleep at the wheel. rather than trying to enforce lending standards, the federal reserve tried to cool down the housing margt by raising interest rates 17 times in a row in rapid succession. how did that work out? great, yeah, it cooled the housing market it crushed everything. i don't want to repeat the mistakes that led to the financial crisis, no i have a show, i have to speak about this stuff by the end of the last housing boom, we saw people buying houses with no money down, at a

fraction of what the loan value, the worst stuff was they're buying down, getting the down payment from a home equity loan. sometimes with no documentation needed, sometimes with wildly overvalued numbers at the time, the home builders told us, all these things were happening, including especially toll the companyeven tried to limit speculative buying at the cost of lower sales because it saw what was happening this time, none of that stuff is going on lending standards are much more stringent. there are no more no-doc loans no more ninja loans. it's actually very hard to get a mortgage, even though rates are low. again, i think that points to constrained but secular growth for the first time in the history of the u.s. housing market finally, there articles about how the housing market is too hot leave out the most salient part of the story, covid-19.

this stuff gets covered like the economy is still normal, but there's nothing normal about this situation people have become untethered from their white collar jobs now they can work remotely they're fleeing the cities to work in places like boise. yes, boise, idaho. in many ways, boise is the perfect microcosm for this event. there's been a massive excess of people moving from the west coast to idaho, creating one of the hottest real estate markets in the country, same thing has been happening in austin austin, texas, which was already on fire, even before the pandemic, it's got the hottest housing market in this country which could also be the world. we're also seeing insane levels of demand in several markets in florida. this is covid-19 and tax situations could all these markets be cooled down by the fed absolutely but what would that accomplish when prices are on fire, we build more houses. when home prices fall, those jobs vanish. why do so many reporters act like heurting the economy is a

good thing home buyers are solvent with excellent credit, strong stock portfolios the home builders are in good shape. the banks are strong sometimes good news is good news if you try to overthink it, you're going to miss out on huge moves. bottom line, the next time you read a story about how we should be alarmed the economy is doing so well, think about the alternative. would you rather see a headline like, housing prices plummet as market weakens from higher rates? or how do home builders drop dead call me crazy but i think that sounds like the wrong way to go. ted in new hampshire, ted. >> caller: hi, jim you're one of my heroes. >> thank you >> caller: jim, i have several hundred shares of ibm. >> okay. >> caller: with a cost basis of $135 and i bought it for the dividends. it's moved up nicely now any suggestions, and oh, by the way, i'm 84. >> all right

well, you're a young 84. i'm going to tell you i want you to keep owning ibm they're going to do a split off, but the main part of the dividend is going to stick with ibm. i think they're doing better than people think. it's a very solid situation and i applaud you owning it. if anything, i would actually want you to buy more and i know that sounds a little wild, but you know i like ibm since the last quarter a very inexpensive stock next time you read a story about how scary it is the economy is doing well, i challenge you to think about the alternative. on "mad money" tonight, time for your portfolio to give the stock app loving some loving i'm taking a close look at the company brought to my attention by you, cramerica. and is it time to snap up shares of snap? i'm going to find out. and accusations against the box management team, saying the company is underperforming i'm going to sit down with the ceo, aaron levy, and get his response stay with cramer

>> 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. ♪ i wish that i knew what i know now ♪ ♪ when i was young... ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money - now or in the future. with an annuity in your plan to help cover essential expenses, you'll have the freedom to live the retirement you want. this is what an annuity can do. find the right financial

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about a month ago, we got a call from jay in florida about a company named app loven. that's app for your home gamers because i didn't know much about this aside from the fact it sounded like our favorite character in "super bad. i said i would do some homework about this one and circle back to it. turned out app loving makes

software tools for mobile developers and it became public in april that landed in a thud. it started at $85 and went to $65. within a month, it had tumbled below $50. however, in the last six weeks, the market has gotten a lot more friendly toward high growth tech stocks and app loven's rebound to $81 and change. having done more homework, i think the company has a lot going for it, but it's not simple this is not like the iconic low effort stocks i recommended last night. remember, the ford, costco, the ones that are easier to follow because you already know how they make the money. app lovin is more of a high maintenance stock. you need to do research if you want to understand this one. when you have done the homework, though, i think it is a buy. my reasoning, first, you need to get your head around what these guys actually do app lovin got its start as a marketing software company that helps mobile app developers bring in new users, and we all

know, if you have an app, you want more users. in 2018, they started a new business rather than just licensing its software to other developers, it becamto create its own portfolio of apps. at thip point, they have more than 200 of its own apps, including some of the most popular mobile games in the world. wordscapes, clock maker, and bingo story among others these guys have 40 million daily active users finally, they have a host of technology tools beyond their original marketing software. they have a modernization platform that helps squeeze more money out of customers they have a machine learning platform that generates off the information fed into their own apps, and adjust, a service that helps mobile advertisers track the effectiveness of their marketing campaigns. the great thing about app lovin is nearly every part of the business re-enforced other parts of the business. they make their marketish and

modernization software better and it allows the company to squeeze more money out of his apps those company owned apps create massive amounts of data fed into the machine learning platform to make it more effective management talks about how they have the strategic flywheel, and unlike many companies who claim they have a flywheel, an eco system, these guys have it they're not just blowing smoke in recent years, they bought a bunch of mobile games. when they buy a game, they can get over 100% revenue growth in the first year of ownership. their platform is so effective that it's practically plug and play when i read about this, i said i have to develop an app and hand it over to them to make it great. a triv play on a rapidly growing segment of the economy we know their business is good because the company keeps putting up magnificent numbers in 2018 through 2020, they had a

73% compound revenue growth. that's now accelerated app lovin is forecasting more than 80% revenue growth for 2021 when they reported last month, their numbers were better. 132% revenue growth, including 89% organic growth any way you slice it, that's phenomenal their third party software created a 90% clip thanks to their machine learning platform. app lovin has their own portfolio of apps and they use all the company's software tools, but when one division sells to another division, this isn't difficult accounting issue, they're not allowing to report that as revenue app lovin created its own metric called total software transaction value. if their own internal studios were stand-alone businesses, they would have had 155% sales growth fair i don't know another way to look at it. that said, the bulk of their revenue now comes from the company owned apps they saw 141% revenue growth in the first quarter. these are mobile games

and app lovin is making a fortune squeezing money out of the player base. not only does the company have rapid revenue growth it's pretty much profitable. in the first quarter, they lost $10 million, but when you look at thurnings before interest, taxes, depreciation, it came in at $131 million. up 110% year over year we don't see a lot of companies like this on our show. when we're dealing with fast growing software stocks, you rarely see something with triple digit sales growth and a hair's breath away from turning a profit because the ipo came this april when fast growing software stocks were very much out of favor, the deal blew up in their face that's why you can get this stock up only a buck from the ipo price, even though if first quarter out of the gate was spectacular. so, what's missing what am i saying, what am i not saying here that makes it so it's not -- well, it's befuddling there are some concerns.

app lovin is in part a gaming company and the gaming stocks have had a tough time lately because they're viewed as covid plays. but i'm not worried. crucially, app lovin makes mobile gameies meaning you can play anywhere. if anything, you're more likely to play mobile games when you're out of the house remember apple rolled out the new privacy features making it harder for mobile apps to advertise. this isn't hitting them as hard as we expected i think maybe it's baked in the stock. so what do you do? right now, it's at $81 app loving is trading eight times the net earnings sales bear with me, though put that in perspective. some of the other fast growing gaming software plays, roblox and unity. roblox is at 16 times net sales. even though it has a similar growth forecast. unity trades four times next year's sales growth. it's got a lower growth forecast app lovin is not exactly cheap,

it's a bargain compared to those peers. my concern is the ipo is what i call a sliver deal they only offered a sliver of stock, which is likely to get hammered i think that could give you a chance to buy more app lovin if you're willing to be patient jay in florida, i got to give you the highest honor. you got horse sense. i think app lovin has great business and the stock is worth buying could be a bumpy ride. please leave some room to add to your position on weakness, but app lovin, i'm loving >> snap to it, cramer checks out two very different companies but only one is on track to make you money. find out which next. we face the world head on.

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in a market that suddenly feels a lot more friendly to secular growth stocks, could it be time to snap up some snap the last month and a half, the pa parent has seen its stock rebound off the may lows and this is exactly the stock that works when money managers are starting to worry about a slowing economy. whether the fed tightsens sooner that expected, snap is going to put up excellent numbers the same ones no matter what the fed does the wall street fashion show and what it dockates in february, snap went out of style because of the institution's reaction to the economy, like dumping secular stories. now we're witnessing another rotation in the opposite direction. one that has gone unnoticed for weeks, but now everybody is talk about it in other words, snap has great numbers but the market's appreciation for those numbers tend to be very based on factors that are out of the company's control. so if you want to get a solid read on this stock, unemotional

read, you have to look beyond the fundamentals tonight, we're going off the charts with the help of tim collins. he's my colleague at real money.com, where i blog every day, because tim thinks snap could be on the verge of a big breakout his reasoning, check out the daily chart. at first glance, collins loved that snap recently bounced off its 50-day moving average. okay, and the 50-day is the blue that's a short term measure of the stock's trajectory throw in the fact it's now broken out above last week's highs and you do have a powerful combination. but as collins pulled back his view, he also spotted something else he spotted the classic inverse or some people say it's reverse, but inverse head and shoulders pattern. it looks like a person hanging upside down. this is one of the most reliably bullish formations in the book even if it sounds like what happens when you're running out of sham be so you leave the bottle upside down

it has a quasimodo feel to it, right? see that it's a french book like 460 pages it's not a bad read, though. it's clear to collins the neckline is 65 once the stock breaks out over the neckline as it did today, the pattern is complete. it broke out above the neckline. that's really important. and now the stock is ready to roar so it matters that snap is now crossed through that level this little green dot right there is the key okay beyond that, even though the stock has had a big move from the may lows and i know a lot of people feel like i missed it, but collins seit's a long way from being overextended. look at the oscillator down at the bottom now, this is a powerful tool that tells you when a security is getting overbought or oversold overbought means the stock has come up too far too fast to the point where buyers are exhausted and you're likely to be hit with a pullback, but right now, they're right in the middle, meaning snap could have a lot more room to run

see. no man's land. after a monster move in late may, the spent the last few weeks consolidating its gains, and that allowed the oscillator to cool off. even better, collins points out that we're seeing a bullish crossover here, that's the green circle, where the black line crosses above the red one, and that's another reliably positive pattern. put it all together and collins thinks the chart is telling you to buy snap on any breakout. it's got momentum, and it currently very much favors the bulls. this is beautiful. given that the stock just broke out above the $64 level today, he recommends snapping some up right here right now, tomorrow morning. he thinks it's going to $80. he would be happy with a new all-time high of there 75. when you zoom out to look at snap's longer term weekly chart, it's even more enticing than the daily one. rather than inverse head and shoulders on the weekly chart, we're seeing a rounded "w.

yes, as far as collins is concerned, he thinks that even more bullish i happen to like the head and shoulders more, but i have to admit, this is beautiful, too. same takeaway. snap has broken out above $65. smooth sailing to $80, which is notiolo to the moon, but it will do it. meanwhile, the 10-week and 21-week simple moving averages are currently right on top of each other these two levels have been significant for snap in the past you can see the stock breaks out or breaks down after testing what does that mean? snap breaks down below these crucial moving average levels at $60, okay, yellow flag for collins. we lose $60, he loses interest until it falls to the mid-50s. he thinks the upside scenario is far more likely, and understand, that sounds like that's why we always mail the tacticals with the fundamentals you need to understand, this move is all about the wall street fashion show. and that i use, it's a shorthand

term i use on "mad money." and it's for what i'm willing to pay for the same sales or earnings as that brand changes based on bonds or the fed or whims or all three. snapshot the lights out when reported in april, delivering a spectacular quarter. but the stock barely budged in response, quickly gave back the bigger gains because money managers lost their taste for internet stocks. they were loving the industrials, the smoke stacks were roaring, so they had no interest in social media companies with 66% revenue growth now, the hedge funds are worried about a cooling economy. federal reserve officials making noises about raising interest rates sooner than expected, tamering, whatever companies like snap aren't hostage to the economy so suddenly, that 66% revenue growth, the same revenue growth from before, it's looking more attractive that's the whim. while this is good news for rapidly growing social media stocks like snap, let's look at the other side bad news for the smokestack

cyclical stocks that make money in a booming economy i want you to look at cxs, one of my favorite railroads great company. right now, the stock looks like it could be ready to derail. so a few months ago, it was -- >> all aboard. >> now it's -- >> while csx has pulled back from $104 to below $95 today, the stock's still up nearly 40% versus where it was 12 months ago. collins points out the breakout took out a key support level, an up uptrend that carried the bulls for a year csx has also broken down below its 10-week and 21-week moving averages very negative. these were strong floors underneath the stock the whole way. now they become ceilings of resistance csx could be making a bullish flag pattern where a stock consolidates its gains in the shape of a flag before taking off again. that doesn't work unless it can break out above $100, up $5 from here considering the recent action,

collins thinks it's going to see $90 before it sees $100. his advice, you don't want to own this sit on the sidelines to see which way it moves he would like it to break down below $85. did business suddenly get worse for csx? no, this is the mirror image of what happened to snap. so when people start talking about a slowdown, their stocks get killed here's the bottom line the charts as interpreted by collins suggests snap has more room to run and csx could have more downside. that's exactly what you should expect, picture perfect, from rotation that's going on right now in this stock market clarence in utah, clarence >> caller: boo-yah, jim. hey, buddy appreciate the knowledge and the info you put out thank you very much. >> thank you what's going on? >> caller: i'm pretty new at it, but i caught zing a while back and they said they're going to

cross platform before they expect revenue growth. they closed down at $10.27 today. i paid $10.70. i'm wondering, should i hang on? >> yes, you should we don't care where a stock came from we care where it's going to. i think you have a winner. i think you're okay. i need to go to -- oh, i can't not enough time. maybe we can have that person call tomorrow. all right, look, tonight's charters think snap has more room to run and csx could have more downside. i agree with snap, i'm not sure about csx, but that's a not chart. there's a battle brewing at box. i have the ceo, infused with starboard, then is it time to raise a glass to the wine and spirits business i'll tell you whether it's worth considering, and all your calls, rapid fire, tonight's edition of the lightning round, so stay with cramer.

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what the heck is really happening at box the cloud based storage and digital collaboration platform that serves roughly two thirds of the fortune 500 last year, box fended off a challenge from the activist investors at starboard they handed over a few board seats, and then box received yet an enormous boost because the platform helps facilitate remote work, so the stock soared. but earlier this year, we started hearing that starboard might make a play for full control unless management gave into demands they want revenue growth or they want box to put itself up for sale we heard rumors of a sale. in april, box announced a new agreement with another firm, kkr, which agreed to a $500

million investment in the company. they're using most of the proceeds to buy back stock the activists took this action as a declaration of war, sothy launched a proxy contest, writing public letters and nominating four new collectors for the shareholders meeting next month, that would give them control of the board both sides have an interesting story to tell. that's why i want to hear from the ceo, who has come on the show repeatedly since the company became public in 2015. let's check in with aaron levy, cofounder and ceo of box, to get a better sense of the situation. welcome back to "mad money." >> good to be here thanks for having me >> i want to know what went wrong. the stock had a good move, you had a good quarter, a lot of stuff with a lot of companies that are very interesting. somehow, i know things went astray with starboard. can you give me your view of how to get things back on track or how they went off to begin with? >> well, yeah. it's a great question.

and i probably can't represent how things went off track. we have ben executing our plan that we put out in the market now a couple years ago, which was to drive greater operating margin and greater growth rates. and in fact, in many cases, we have been actually upgrading the plans, especially on the bottom line, over the past four to six quarters so we believe that we're executing a very effective strategy we just guided up in our last quarterly earnings both on our growth rate for this fiscal year as well as our profitability targets. and we believe that we are building the most disruptive and the leading platform in content management so we're very happy about the blan our board unanimously decided on this path forward as a company as well as bringing kkr in as a partner for the next stage of growth and profitability, and you know, i think we fundamentally believe there's a significant amount of upside in our stock and we're focused 100%

on driving shareholder value from there >> let's talk about the kkr financing. why did you have to do it? you had cash and it also seems like, i can understand how people could say, you know what, that really is kind of almost like a poison pill to block the sale and it was unnecessary and they pretty much bought a position, so to speak, because they didn't take it all down they syndicate it out. why bother with them >> well, we did a full strategic review process through the winter, and early part of this calendar year. to really identify what did we believe would be in the best interest of all shareholders to drive shareholder value going forward. that was a very comprehensive review of multiple options we could pursue as a company to drive shareholder value. as a result and during that process, kkr merged as being incredibly excited about the company, and as we spent more time with them and learned what they could offer both as a board partner, as well as whether it's helping on the bottom line with their various operating groups,

driving continued growth, especially as we continue to do incremental and prudent m&a, to continue to expand our product efforts, as we continue to go international. we felt that we had a very strong long-term partner that want today invest in the business and be able to see significant stock appreciation that we believe all shareholders will benefit from. so we think that the kkr endorsement is very helpful. obviously, they only join boards and make investments where they believe there's significant upside and return for shareholders, and what we want today do is, as you noted, do our cash flow levels, make sure it also would benefit shareholders in the near term by providing a buyback opportunity. so this kind of creates an opportunity where some investors who might be more short term oriented would be able to share their shares back, and if you are more long term oriented, you can ride it. >> starboard is not going anywhere, and i was -- it was

disconcerting to read in their letter that they said to date, the board has refused our attempts to work together, and we appear to be at an impasse, when you have called the dialogue constructive in your last letter. so i mean, it's kind of he said/she said. they don't regard it as constructive, and you do i would rather see, because i like you and i like starboard. i like -- it sounds a little silly, knrut like everybody to get along. i would love to see a compromise is there anything you can do to make it work i don't see anybody as a bad guy, so to speak >> i thing you know from our relationship over the years, we're very collaborative in nature, especially with shareholders in fact, in starboard's own proxy filing, you can see dozens and dozens of interactions that we have had with starboard over the past couple years. so we have tried to spend an incredible amount of time insuring that starboard understands our strategy, that we're hearing their feedback last year, as part of a settlement that we had with

them, we added two board members they approved as part of the settlement we felt like they helped continue to evolve the board's governance and independence over time but it looks like maybe they didn't ultimately agree with some of the board's approaches that's their prerogative, but we fundamentally as a board believe we have the right path forward you have seen it in our shareholder returns. we're one of the fastest growing stocks this year and up about 40% year to date, so we believe that the current path that we're on is the right path and we have seven new board members just in the past couple years. so we don't believe that further board change is warranted. we believe there's, again, a significant amount of upside left in the business based on the plan we're executing we're incredibly excited about the path forward i have talked with many, many shareholders that really excited about box's path forward and we're very focused on executing the plan >> i understand you to spend 20% of your revenue each year on

stock based compensation you have only hadnon-gap profitability. some could say that you're growing only around 10%, in the last year, so that in that sense, in classic profitability and payment, you are not up to snuff versus other companies >> well, i would say that actually, if you look at our peer group in the sas ecosystem, especially companies reinvesting for growth, which is obviously the real prize in one of these markets when you're going after a $50 billion market, is you want to be driving growth, with strong economics on the bottom line and we believe we're within kind of a normal peer set when you look at stock-based compensation obviously, we have been driving significant improvements on the non-gap operating margin, which are driven by our efficiency and a lot of the investments in driving very rigorous execution. so again, when we talk to our shareholders and if you look at the analysts who have put out notes, there's a lot of conviction on the path forward

as a company and we believe that, you know, you can imagine jim, and i know you know the kkr folks very well, you can imagine the work they did before leading an investment in the company and joining our board around the upside potential as a business and we have seen similar investments just yesterday with silver lake going into splunk. last year, with baen and nutanix. it's a pretty common problem to have a partner who wants to join the board, invest, and make sure they're driving significant shares that's what kkr did with box >> to be fair, when i saw it, i did say on air i thought it was good for the company i can't take that back because that was my view it was my view with splunk yesterday, with silver lank. good for doug, good for you, good for the company i'm so glad you came on. you're always a straight shooter with us, cofounder and ceo of box. great to see you >> really appreciate it. got to make up your minds. the stock had a big run, but i understand also that all of the things that starboard has raised and starboard has a good record in making money for you, the

shareholders "mad money" is back after the break. >> stick around. >> may i make a suggestion i would say with cramer. >> the lightning round is coming up next.

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it is time time for the lightning round and then the lightning round is over are you ready? it's the lightning round let's go to mike in virginia mike >> caller: jim, boo-yah. >> oh, man, the chill's in the house. i have skee-daddy because my new

dog, nvidia. he was ready at 3:30 this morning. let's go to work what's up? >> caller: sounds like you have more energy than a bat >> you bet >> caller: in yesterday's "wall street journal," first solar's ceo, that's ticker symbol fslr, is highly confident that washington will have his company's back regarding the upcoming infrastructure bill >> you know, i have my apple watch. literally, a second ago, they ran a "new york times" story about how the president is going to back -- is going to not support china for dropping some solar panels here. because of religious freedom i think you're in great shape. that stock is going to move up john in new jersey, john >> caller: yes, jimmy, how are you doing? >> the chill is doing well what's going on. >> caller: i'm down to get mentos farms

>> the raspberries are almost in season go ahead >> caller: blueberries are awesome. what do you think about jan, for my birthday, i think nakd, i'm going to run naked through hammerten. >> i might take that let's take that idea off the table. we'll keep it in our heads but we'll take it off the table. again, it's a gaming -- there's so many of these gambling companies right now. i don't want to be in them there's. just too many of them. let's go to charles in mississippi. charles. >> caller: jim cramer, big boo-yah from mississippi >> i like mississippi. it's beautiful what's going on? >> caller: jim, you recommended a stock about a year ago, evri i bought in at 595 and it's taken off. what do you think i should do, buy, sell, or hold >> another gaming company.

i gotta tell you, i gotti be true to myself here. i think you have to take a little off the table you would be in beshape. that's a nice gain live to play again do i have time for one more ini can go to darius in florida. darius >> caller: how are you doing, jim the thank you for having me. >> i'm thrilled you're on. what's going on? >> caller: you know, i would like to say i like what you're doing. my ticker is stm >> we like what they're doing with the environment we like what they're doing with energy i didn't expect it to take off as well as it did. but the market is falling in love with this stock again you're in good shape let's go to sandy in delaware. sandy. >> caller: boo-yah hey, jim for growth, is it too late to buy ppg? >> that's the exact opposite we have a lot to say about a gr great company like ppg, but it's

not going to do as well as higher growth stocks and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade >> coming up, will the pandemic recovery be served bottled or on draft? find out why the next reopening play might be found in your local pub. next

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sometimes stock picking can be as easy as reading the earnings release from a major player, and then extrapolating what that means to its peers every morning, i get up unnaturally early, and one of the benefits is you often see information from overseas that gets overlooked here for example, this morning, i

read the release from a gigantic liquor company they were saying that, quote, the pace of the recovery is proving stronger than expected, end quote. this is the company that makes high-end liquor like absolut vodka, glen livets scotch, and a host of different wines. but they also say drinking outside the home is accelerating as covid restrictions get rolled back that means numbers are going higher the run-up has already happened. that's what happens when you have a big announcement like that, but there could still be pin action for other stocks. so you have to think, what looks a little like not exactly these people, all these companies are unique, but what looks a little like them? how about stz, constellation brands it's got $2.5 billion in high end spirits, but $6 billion in beer, corona, modelo, pacifico this is where it gets interesting. even better, constellation has a catalyst they report next week. so we don't have to wait long for something good to happen

now, to take an anecdotal term for a second, i own a mexican bar, and we sell a ton of constellation's product from tequila, our number one seller, and we have pacifico on tap, and of course, corona. i see the sales figures year over year. i see them every night, and they're astounding here i'm talking about twen2021 ove 2019 i talked to a number of bar owners in a similar situation because i keep my pulse on this industry still very new york centric, but i keep my pulse on it. i have a good read on the rest of the country too sales are incredibly strong right now for beer much stronger than anyone expected people want to go out and get plastered. meanwhile, we know constellation has launched its corona hard seltzer and there are signs it's a big hit. the ceo said as much when he came on "mad money." as far as its peers go, it's not absolute it's high west whiskey, not when you take a look at jamison, but

it's got premium lines that i think the similarities are too great to ignore. one of the big knocks is they pay too much for their stake in canopy growth. that's their foray into the cannabis business. that's probably true, they did pay too much, this is already baked into the stock price i look adit another way, this is it last quarter before people start buzzing about pot legalization on the ballot i think it would be big in the fall a bunch of states and cities hold elections and the white house is no longer against it. turns out, legalization has become popular in the country. i think this company will finally get credit for its big investment in canopy it has been able to buy back stock and pay down debt at the same time. when the spending on canopy grew out of control, they bit the bullet, fired the ceo, and replaced him with constellation's tough, knowledgeable financial officer. it's down 22 points from its high there are no sure things in the business we can't say what's good for the

goose is good for the gander, but there are a lot of similarities the big difference is constellation has a big beer business i don't mind because i think that business is booming i like to say there's always a bull market somewhere, and i promise to try to find it for you on "mad money. i'm jim cramer. jim cramer "the news with shepard smith" starts now. how to make the nation safer, washington takes action i'm shepard smith. this is the news on cnbc >> we're taking on the bad actors doing bad and dangerous things in our communities. >> fighting the surge of violent crime across america president biden lays out his plan calling for hard hit communities to hire more cops. where they'll get the money. two bodies pulled from a canal in florida both young girls discovered just hours apart. the mystery behind who they were and how they ended up dead britney spears gives rare public testimony in court.