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tv   Mad Money  CNBC  July 27, 2021 6:00pm-7:00pm EDT

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one trade that i did do today, which is buy fedex. >> tim >> should we give guy another shot >> are you there >> i'm going to go with visa >> thanks for watching "mad money" with jim cramer starts right 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 other people want to make friends, i want to help people make money call me at 1-800-743-cnbc or tweet me @jimcramer. at any moment the prism can be
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overwhelming the prism can also be wrong. once again roll back to where it feels like stocks are done going up and the apocalypse is now because we can't satisfy the earnings piece with the dow losing 86 points today, s&p saving nasdaq plunging 1.2% why did this happen? when the cdc issues guidance, that makes everybody freak out about the delta variant and when you're worried about the pandemic, what do you do well, it's pretty simple >> sell, sell, sell, sell, sell. >> the cdc has been consistent the whole pandemic, consistently wrong. now they're scaring the heck out of us rather than pushing us to get our shots.
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the authorities imply that we're all going to get covid anyway, i mean, who can blame the we cans from the sell, sell, sell, sell, sell i bet the same thing happens tomorrow that's what's happening after the bell doesn't help when we get about two weeks into earnings season, right about now, our perception does tend to shift the first couple of weeks were ugly, we get a nice rally at this point why? because we adjust our expectations if there are a series of disappointing quarters, bad is not so bad and good looks great. now we have the opposite situation. in the first couple weeks of earnings season stocks ran the table. rally is totally oblivious we have one bad day a week and go admittedly it was very bad. all it taught us was to buy the dip. the market has been trading up for ages after two relentlesslypositive weeks of earnings we have
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adjusted rate becomes really good not so bad becomes just bad and not that good becomes, well, let's just say a not -- let's just say things are being viewed as terrible how about that the prism is going negative. some day you get a rally, recession stocks because the cdc is scared not just the unvaccinated but you that's an unhealthy situation. look, i think it's good schools are allowed to reopen. masks a 13smart idea more importantly, it's been a noose around the neck of our economy. why? child care yeah, child care if you had an elementary aged school kid, chances are somebody in your household somebody had to stay home rather than working. it's why so many single moms have dropped out of the work force since the pandemic hit whenever you hear people wondering where all the workers went, school closures are a huge part of the equation
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with remote learning, millions of formerly paid employees had to stay home and act as truant officers i know we're staying elevated. if schools can't stay open, that would be a huge positive for the moment the cdc's new guidelines and the need for wearing masks indoors was viewed as a tragic negative today and weighted on the averages that everybody looked through every single stock tonight, every single one doesn't matter the three pillars of industrial stocks all reported better than expected numbers. the prism kept them all down do you know only raytheon managed to buck the trend. it's mostly immune to gyrations of the economy and essential to defending off china if something crazy happens in the strait of taiwan which anyone can certainly dream about or have that nightmare given that the chinese are wrecking the stock market of course, the prism does change
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from day to day. why don't we define what defines it -- why don't we show what defines it at any given moment so then you can understand why tomorrow could be ugly and you might want to buy. first as usual, it's a ballpark. enjoy another rally. is if the cdc is telling you the great reopening is the great reclosing, that means businesses will fall off a cliff. the cdc, fda have created many moments of pain and hysteria this time though the prism says we won't be able to do that so quickly. you should buy the recession proof stocks that don't need to worry about the economy, like the drugs and utilities. for example, you have to remember that this prism could be temporary today the market had a jaundiced view of just about everything. yesterday we were a lot more positive tomorrow nobody knows but i suspect the market is still in
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fault finding mode here's what we do know we've got a bunch of very important quarters at the close and every single one of them is considered horrendous. there's all sorts of travel and leisure. sure enough, alphabet shot the lights out they earned $27 per share. sales 5.6 billion higher than expected adver amazon on fire, google is on fire sell alphabet. starbucks delivered terrific numbers with very encouraging same store sales the stock initially got hit after hours because the bar had been raised. who's going to go out and buy a cup of coffee if the cdc says all hell is going to break loose? we saw something similar for microsoft. the stock rolled over in after hours action because it had run up substantially
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they're not going to believe that one nobody feels like a hero in tech stocks that one is not my favorite. advanced micro shows you that intel's problems might be consulting with the company's ineptitude but the cdc says sell like the cdc is a big broker finally apple knocked it out of the park with a record quarter remember all those analysts told you to worry about the channel checks with weak component orders as usual, they were wrong. they were firing on all cylinders. chinese business up 58%. i was worried about a crackdown. that's why you own apple, don't trade it they said maybe the next quarter won't be as good as this one you have to understand, the prism takes that stuff seriously. sure, many of these stuks did trade down after the close and they will trade down again tomorrow but that's all part of
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the negative prism and there are amazing businesses whose stocks will be thrown away for tomorrow and maybe the next day before you can buy it the bottom line, please don't take your cue from the day-to-day action because that just tells you you're using the filter that we're all using instead of doing your own homework, making your own judgments as a lot of the trash that was thrown away today and tonight might turn out to be the market's treasure once we reach herd immunity, cdc we will reach herd immunity sooner than wall street expects. we just not might like how we get there. dennis in connecticut. dennis. >> caller: jim, how are you? >> thank you, dennis. >> caller: my question is nike it shot up 20 points and then i got on and now i'm kind of wondering should i buy more, wait for a pull back >> no, don't buy more. i did a whole comp school on how
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wrong i was. i don't want you to sell niko. i think nike is fine they're doing well in china. can i please gel to dale in california >> caller: yes, jim, dale here. >> hi, dale. listen, sherman williams this morning announced -- refirmed their guidance for the year. their stock is up. they show a profit for last quarter yet since the freeze in texas in february, sherwin-williams has not had popular product on the shelves to sell. for months we haven't been able to get gloss, semi-gloss, wall paint, and the rest of the sherwin-williams customers had to buy from alternate sources for a product. we've been going to home depot and benjamin moore and buying them out when i talk to the she sherwin-williams representatives, they will not have popular product on the shelf until after the first of the year >> well, i think they're too negative i think a lot of these places are open i think you're looking at a
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better q4 not the first of the year i think they're being conservative i like the stock. >> go to bill in pennsylvania please bill >> caller: the one the only. >> there you go. >> caller: big boo-yah from steeler country. the stock i'm calling about today, the luxury brand, i'm not a luxury guy, but luxury brands tend to do well in travel destinations from what i'm told. with the world reopening, earnings coming out and the supply chain congestion what do you think about tapestry tpr? >> i think tapestry is going to go out why? because the cdc issued very bearish statements today are going to make people feel like the great reopening is the great reclosing. i regret the way they put all of their comments because it is going to destroy economic activity i wish they had hounded people who haven't gotten vaccinated. that's not the way they blame the rest of us.
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on a day like today, the market's filter is over powering i'm asking you not to take cue from the action. take your cue from the fundamentals do your homework, make your own judgments. mad tonight, show and tell iconic mattel has demand for its products in barbie, american girl, we'll talk with the ceo to see what's fueling the multi-year transformation. that is classic. plus shape up or ship out. ups shares fell 7% as the domestic package revenue fell short of expectations and key cooling metrics are cooling off. wow. could the decline be a buying opportunity? at least it's going to be for the company soon i'm unpacking the quarter with the ceo. great debate with the future coming up. inside look at sustained demand for work from home products so stay with cramer don't miss a second of matd
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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 1-0-3-bc8074cn miss something head to madmoney.cnbc.com. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.
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today we had an ugly session where wall street judged all sorts of messy earnings reports with a really negative prism sometimes you get a straightforward excellent quarter and you have to search for disappointment i don't play that game take mattel. sales up 40% year over year coming out at 1 billion when the analysts were looking at 879
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think barbie and american girl dolls jumped 47% their vehicle business, that's hot wheels and match box surged 62%. management raised the four year sales and ebitda the only issue much of this might have been baked in mattel rallied nearly 9% after their arch rival hasbro delivered great numbers. it's still down a couple of bucks which i frankly think is absurd let's check out with with ena kraus the turn around artist, chairman, ceo of mattel. welcome back to "mad money." >> hi, jim great to be here. >> this is a true blowout. i'm going to stop trying to find things that are wrong and find things that are right. you have a turn around where you have both top line growth and profits. could you please explain to people how therefore the turn around is over and now you're playing offense?
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>> yeah. first of all, this was an exceptional quarter and an exciting time for mattel sales were up 40% in our adjusted ebitda grew by more than four times and once again we exceeded expectations our strength is foundational and broad based and we significantly outperformed the industry and gained market share in each region so we are now firmly in growth mode and our top line performance is adding momentum for transformation strategy to establishment there as an i.p. driven high performing company. >> people may not know that you're an intellectual property guy and hollywood guy. "the new york times" talked about the ambitious plans you have i think it's time to start talking about this don't worry, i'm going to talk about barbie and i'm going to talk about games i think hollywood envisions where the money is for mattel. >> mattel owns one of the strongest catalogs in the world for children and family
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entertainment franchises in addition to everything we're doing, also capture the full value of our intellectual properties in other highly accredited business verticals. think film, television, live events, consumer product, merchandise. exciting opportunities for us in these bags mattel films is ahead already with 13 projects in development. mattel television also doing great things and we are very excited with the progress we're making in capturing the full value of our intellectual properties. >> these went up with worldwide implications because gross and international increased an astounding 57% that's an incredible figure. how did you pull that off? >> yeah. i have to say our success is really, really broad based we actually grew for the fourth
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consecutive quarter. this quarter we grew in every single region double digits. we continue to grow market share. we actually grew market share for four consecutive quarters as well we're seeing tremendous momentum across the entire enterprise and proud by region, by category as well as in our three power brands, barbie, hot wheels and fischer price as well as american girl. >> let's talk about dolls for a second how do you get -- some of these dolls have been around for a while. i want people to understand 395 million dolls, 362 consensus, up 57% is kind of astonishing for products that have been around for a while. is it reinvention? >> you know what, this really goes to the heart of the mattel playbook, which is about brand purpose, cultural relevance, design led and executional excellence this is very much embodied in
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barbie but it's the same approach and the same people that apply the mattel playbook across the entire portfolio. this is success which is not about one brand or one category but very broad based it's about how we approach things and develop product and engage with consumers and create demand. >> let's drill down. july 13th you announced a new barbie musical barbie big city big dreams i don't know, come on now. your background is such that you can recognize ahead coming a mile away. how is that going to be going? >> it's great to see barbie still engaging consumers on so many levels. this is part of the mattel television strategy. we are seeing great engagement, great traction, great interest in our content we launched barbie princess adventure. there is barbie and chelsea, the
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lost birthday that's just launched this spring on netflix. we are launching a new musical on netflix a lot of content a lot of engagement. it's great to see consumers responding with so much excitement around barbie. >> koufr do a theme park >> you know, the theme is, because we own the underlying i.p. you can do anything you can find consumers wherever they are and with the level of engagement that consumers have and the passion that our brands generate, we can create value in multiple verticals this is exactly the strategy this is the strategy to capture the full value of our intellectual properties. >> and i think you do this well because the balance sheets -- i know you're fixing the balance sheet. all the worries that you told me about three years ago are gone -- not going to say gone because you're an operator and you have to continue to do what you know is right but you're a different guy from when i first met you.
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>> well, we definitely made significant progress on our balance sheets, our leverage ratio is now 3 it's down from 8.4 just a year ago and we continue to make significantprogress on strengthening the balance sheet, bringing our debt down, increasing our cash flow and all in all continue to create o optionality and flex bills. >> i'm going say your stock will be at 25 in two weeks. i've been around great to see you as always >> thank you thank you, jim that's great thank you. look, everybody's so negative that they can't even see something that's great right now. and i'm going to tell you that this is the kind of quarter that two weeks from now you'll say why didn't cramer tell me to buy the stock? i did. coming up, can the big poohbah of parcels deliver us from losses?
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get to value...first (♪ ♪) let there be change accenture how do we make sense of the meltdown of the stock of the united parcel service. when the company reported the numbers came in better than expected words made you feel like the freight business could struggle the rest of the year in response the stock dropped an astounding 7%. my charitable trust you can follow me along. we told club members we thought this was an over reaction and remember we also said this was going to be a very tough day we do need to do more homework fortunately we got a chance to speak with the ceo herself, the
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ceo of ups. >> ms. tomay, welcome back to "mad money." >> hi, jim great to see you. >> great to see you, carol now before we get into the nitty-gritty of what happened today, i just want to ask you, is there still a sense that ecommerce is booming and ups is a percentage of that or have we decided that somehow that world is slowing down and ups is something you don't want to own >> there's been a permanent shift in how consumers are shopping and ecommerce sales are booming, but the rate of growth is not the same as it was last year when everyone was sheltering in place. and in fact, if you look at our performance in the second quarter, our average daily volume was down slightly in the united states. we predicted that because last year one of our products called sure post drove 53% of our total u.s. volume.
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we realized that when the economy started to open and stores reopened, consumers would go back into their stores. we saw it happen in fact, if you back out the sure post related volume, our average volume grew in the second quarter by 4% >> well, okay. all well and good, but what i think has happened here, what's transpired is that because you told a story a second time, you had your analyst day and this time that there is some slowing, i think people decided, wait a second, ups is no longer a growth stock so get it off my sheet, so to speak i want to sell ups but hasn't there been some value created since you've been here that's longer lasting, that produces a lot of cash, could produce a buy back, could produce a boost in the dividend? >> well, absolutely. we're on a path to take our u.s. operating margin to 12% by 2023 just this year based on the guidance we gave
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we predict our u.s. operating margin will be over 10%. that's 240 basis points higher than last year and the highest operating margin since 2017. we've generated a lot of cash for the first six months of this year, $6.8 million in free cash flow that's more cash generated in six months than we generated in any 12-month period in any time in our company history and at our investor day back in june we told everyone that we were changing our dividend payout target such that at the end of the year we're going to look at our earnings and cut them in half our dividend payout target is 50% of earnings. so we're creating value by growing and returning our cash to our shareholders. >> if i do the arithmetic it's pretty clear you become one of the highest yielding companies in the entire s&p 500. do you think people just kind of forgot that today? >> you know, i can't tell you what happens to the market on
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any one day. we have a long-term perspective on our business and our stock. >> well, should we be concerned that business consumer volume did decrease >> well, we're projecting volume will increase in the back half of the year, not like the first half volumes tend to grow remember, jim, we have a different operating model than we did in the past in the past we chased all volume regardless of whether or not we made money on that volume. today we're leaning into the part of a small package market that really values our end-to-end network we're leaning into small and medium-sized businesses, for example. it's a very profitable business segment for us loved what we saw in the second quarter. one year our volume made up about 22% of our total now it makes up 27% so we are
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really happy to see our snb customers responding to the capabilities we've been investing in them to make the experience simpler, helpful and faster. >> let's go back to the buy back for a second if you parse what you said this morning as an intro versus what you said in the conference call -- >> yeah. >> -- it seems you are price sensitive to the buy back. if stock gets hit down to 185, 190, that's a different stock than 205, 210 when it comes to a buy back >> absolutely. so we hinted during today's earnings call that we are looking at going back into the share and purchase market. we've got a board meeting next week so we'll be talking to our board and recommending plans in that regard. it's a buying opportunity. >> that's what i was going to say because the semantics of a conference call, you and i have studied conference calls for many, many years i know i could have told a story about ups that was quite different than what you told based on what you said i could have said ecommerce is
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here to stay ups is choosing to make a lot of money. we used to go after everything, we don't do that anymore we're more profitable than we used to be and say look i think the future is bright without saying i'm not giving any guidance when our company and all the people who work there know we stand behind them. very nice to meet you. end it and the stock will be on fire it's almost as if you chose to give us enough negatives that it has to be down 20. >> well, that certainly wasn't our intent our intent was to give everyone our point of view on what the back half of the year would look like because it's important to know that we're a seasonal business our operating margin historically reached a high water mark every second quarter and then it comes in still year over year growth but comes in in the back half of the year because of seasonality particularly peak and the fourth
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quarter. we wanted to make sure people had the right numbers to put into their models so they understood where we're going this isn't about a second half performance, this is about where we're taking the company long term at least in 2023, we have $102 billion operating revenue and return on capitol, well, nearing 30% and returning capital to our shareholders in terms of 50% in dividend so if the message didn't hit the mark, i apologize to that for everybody. we've got a really great story going on here. >> you know i agree with that. my travel trust bought this stock for the first time once you got there. one last question, it seems to me if we get outside the weeds, is it possible that you have lost pricing power or do you still have pricing power as a great american company >> we have pricing power you can see that in our revenue per piece which grew 13.4% in the united states in the second
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quarter alone. >> i am just saying, carol, i've known you, you're the straightest shooter. most ceos arenot you are. i think you're creating value. it's ridiculous to think the value is going to be rolled back i am going to congratulate you for that quarter and say carol tomay understands the good with the bad and i thank you for coming on "mad money." >> thank you for having me appreciate it. >> excellent carol tomay, ceo of united parcel service she cleared up a lot of things for me i hope she did the same for you. "mad money" is back after the break. coming up, when it comes to this gaming giant, is the market acting illogical cramer gets real with logitech's ceo off earnings next
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what the heck just happened to the stock of logitech international? company makes gaming equipment logitech reported last night while they had an excellent quarter, 26 cent earnings off a 96 cent basis. higher than expect the sales up 66%. it was wildly considered disappointing. their amazing guidance maintain their previous numbers which is discouraging with a major earnings beat. in response the stocks tumbled more than 10%. logitech is one of the biggest winners. do we need to be more worried about the future or did wall street over react? this was a bad day for tech and for any company that frankly has a less than optimal view of the future let's take a closer look with
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the ceo. welcome back to "mad money." >> thanks so much for having me, jim. >> before we get into letting the stock tell us what to do, okay, we're going to tell the stock what it should have done this was to me an amazing quarter, one of the best i've ever seen and the momentum continues so i give you the ball to try to explain in a rational world perhaps what people should have done. >> you know, as you said, i always think the most important quarter of the year is the first one. i tell my team, boy, if you get off to a good start, that's a great start. we grew 58%. double digit across all our main cate categories we had a lot of strength our gaming business was super strong even though a lot of people thought it would be softer really a good quarter. if i had to speculate, i think as you said in the opening, people would love for us to raise our guidance we gave our guidance in march. we finished that last month and we finished so strong we
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actually raised our guidance again in may when we reported our earnings so this is just two months later and we left our guidance alone we just reported a really strong quarter and we'll play it out throughout the year. >> what does the ceo do? his team comes in and says, look, we just gave it all she got. we delivered a remarkable quarter and we're down big, boss what do you tell them? >> i tell them what you would tell them, which is you know what, there are going to be short-term things that happen everywhere we are a long-term team and we've delivered lock term and we will deliver long term stay with it don't let today bother you one way or the other focus on the long term good performance delivers good results from an investor's standpoint. >> would there be someone you might call in saying video collaboration. which we all have. we have your excellent cameras which i thought would blow out the quarter. you did 235 million. i guess there were people looking for 300 million. how do you make it so that
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that -- you close that gap >> you know, we had a really strong quarter in video collaboration. you have to look at the two quarters before that we had extremely strong quarter before that. we had a very big backlog we're clearing we had built up a bunch of demand we couldn't fulfill coming into this quarter, we still had 72% growth some people think that looks weaker than q3 or q4 must be a problem. we're excited about that business we think hybrid work is going to be a real opportunity there and then as people go back into the office we're going to video -- people are going to video enable everything we're excited about video collaboration. >> were people focused i didn't recognize on supply chain? you sourced really well but your cfo did mention on the call about ocean freight rates. i know have you to disclose everything to me that's minuscule perhaps maybe i'm too much of an optimist. >> no, i think you're right.
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i think the -- ocean freight is up it's expensive on a per unit basis. we did less of that -- less than air freight and our ocean freight costs are up some but it's a relatively modest impact. so i'm not too worried about that for the long term i think we're in a good shape from logistics standpoint. >> gaming, we had course air on. told a good story. stock went down. is the gaming category cursed since we're supposed to be out froliking since the pandemic is under control? >> we just had an incredibly strong quarter in gaming, grew 78%. grew market share across all categories we're really, really having fun. it's been -- i'm watching the olympics i've never watched tv except for you and the olympics i have the olympics on 24/7. it amazes me the olympics still hasn't picked up esports they will. i suspect they will.
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in the meantime, esports is on fire especially in the under 30, under 35 that's why we grew so strongly. >> now you have products that come out you have such an array of products things get lost i thought the thing that i can make it so that it fits to my ear because no matter what i've done for the last 20 years, i've worked out every day, my left ear, whatever i put in it falls out. my left ear is not standard. >> right. >> suddenly you've answered my prayer it's one of many logitech -- it's lost in the vast sea of logitech products. >> that one is branded ultimate ears or ue. you can go google it now ultimate fits. you put it in your ears, you punch a button on your phone and it will mold to your ears. every person's ears are different from everybody else's. each of your ears is different from the other one it's the first customized ear phone in 59 seconds. >> why aren't you selling
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millions of them because you have a certain budget to me that's an accessory if people knew about -- i don't know a soul that doesn't think of one size fits all the ifb in the network, it has to fit us and can't pop out. this is the steal of the show. it should be the holiday present. how do you make that happen? >> well, we're building our marketing engine be for that right now. we have will smith's kids, will and jayden smith, they've both done ads for it. we're really going after it right now. it's a very cool product ue fits. it's just phenomenal as you said, it's the only product you can buy that's really customized for your ear and it does it so fast >> no, it's remarkable i'm going to say the stocks had a big run. people don't know what to do today was a negative day had you reported a week ago stock would have been up 10.
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i believe that just another great quarter. thank you so much for coming on the show. >> thanks so much, jim always a pleasure. >> thank you guys, look there's always going to be one line that misses if you choose to look at a stock, watch it be down and then fulment the reason to sell it, i think you're on the wrong side of the trade "mad money" is back after the break. just chill out. >> the chill man is in the house. he's happy. >> the lightning round is coming up when "mad money" returns. i'm 53, but in my mind i'm still 35. that's why i take osteo bi-flex to keep my moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper.
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it's time. it's time for the lightning round. then the lightning round is over are you ready for the skee-daddy jack in missouri jack >> caller: cramer, boo-yah from the show me state to a fellow restauranteur. >> excellent thank you for coming on the show what's up? >> caller: my question is go go versus a 4 cent loss last quarter. i wanted if they posted their first profit >> jack, those guys are just so-so. they've been so-so for so long that they are definitively so-so. craig in idaho please. craig. >> caller: jim big boo-yah. hello from idaho. >> good to have you. fastest growing state there. what's going on? >> caller: well, my daughter and i are big fans of your show. >> thank you. >> caller: we watch it all the
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time and your insight and knowledge has been a great help to us over the years we want to invest in a green company that has future growth potential. a while back you talked about charge point holdings and said you liked the company but not here at the price, which was about $35. it's down to about 30% since then do you still like the company? >> yes, i do i'd like it to be down 50% it's almost there. i'd buy it under 20. there are many, many companies in that industry and they're all trading down right now can i go to eddie in new york. eddie. >> caller: hey, jim. >> yo. >> caller: i've been watching the show since i was 15 years old. very excited to be on. >> i'm glad you're on. thank you for coming on. >> caller: i just have a question i want to get your opinion we've seen great earnings from the best asx names and social media. i wanted to ask you about four analyst buy ratings and 185
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million ebitda tabula. >> they do the kind of stuff that makes you -- it generates pages and it generates pages, reminds me that you should buy the stock of trade desk. jimmy in illinois. >> caller: jimmy chill boo-yah to you. >> boo-yah right back. >> caller: hey, buddy. i'm an action alerts club member. >> thank you. >> caller: i just really want to thank you and your whole staff for everything i've learned over the years. you guys have really helped my family out a lot >> it's a teaching product nothing like it out there. >> caller: buddy, you helped me out. i'm looking at a stock i want to open a position in i want to get your thoughts on digital turbine. >> it's a unique company, mobile services it sells at such a high multiple and the multiples are being compressed i don't think that's a great
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stock to be in i really don't. >> let's go to jeff in texas jeff. >> caller: boo-yah, jim. jeff in texas. >> what's going on >> caller: i took a ride on the stack train with some house money. the problem is the train is going in the wrong direction tell me about astra. >> space service is a crowded -- someone asked me the other day about this it's too crowded but the stock has come down. how about this at 8 bucks buy a little. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade coming up, can a ceo be their own worst enemy? cramer faces facts about a chinese crackdown on tech next i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center.
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this market's discovered a new gain it's called kill your own stocks the ceo of united parcel tried to resurrect her own stock after it got murdered on her conference call. every good development, all the great changes meant little to the future i've seen cautious ceos but it's rare to hear one straight up admit the future might not be as great as the past. if you were hearing from tomay,
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i think wall street is being too negative as ups will be boosting the dividend after the board meets. then we have the chinese government which is mulling down the stocks of chinese companies that have fallen out of favor with the communist party the remarkable annihilation of the china education stocks is a warning to businesses. if you make money by helping rich people cement their socioeconomic status, the party is going to crush your profitability. literally, they're turning lucrative operations into nonprofits that's why deutsche bank just cut the price tag from $97 to just $3. the communist party is killing three birds. it's confiscating the wealth, second it's making the education system more equal. rich kids can't pay up for better tutors, third, it's
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smashing the wealth for others who might own this yes, crunching the wealth of people like you if you didn't listen to me if you didn't listen to me i told you to stay away from these. you can't say the party didn't give you fair warning when they crushed de global, the chinese uber once it became public i think the company is going after companies it thinks is a bad influence on the people. tencent, how tows that make people smarter b baydo. mao, he's kind of back i keep joking that it's china remembered it's supposed to be a communist country. they spent 40 odd years erasing free markets what's that mean for you let me say something very uncontroversial. you don't want to invest in a
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company that's acting in communism. don't buy communist stocks so it's time to free multiple chinese communist stocks including the nontech ones wake up media. it's a crackdown against us. even the legendary cathie wood who refuses to give up on her favorite growth stocks has thrown in the towel of china who can blame her? the government is going after companies for making too much money. that's not a positive business climate. you don't want to be the last vehicle in however, the most bizarre example of the kill your own stock game came from none other the techno king himself, elon m musk i'm not making it out. he said techno king. the tesla comp said it was hard to manufacture his cars. when you look at the headline numbers this was a remarkable quarter for tesla.
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it should have been call for the musk magic instead, i felt like i was listening to an old ford motor crackdown. he praised ford for not going bankrupt it was the call you would expect from a good tool and die marn. at least musk has a reason to play it this way if you were thinking of investing in any tesla newly minted competitors, lucid, fisker, this call is meant to scare the heck out of you. sure did i'm not recommending any of those stocks if tesla struggles, imagine how badly smaller numbers will still on a down day for the market the last thing you want are countries or countries making you feel like a chump if you own the stocks whether we're talking karm tomay, elon musk or the entire chinese government, they took a
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wrecking ball. i'm not asking for hype. i don't want endless self-promotion but there's got to be a way of being cautious without shooting your stock in its own face i like to say there's always a bull market somewhere. i promise you i will find it just for you right here on "mad money. i'm jim cramer see you tomorrow "the news with shepard smith" starts you now >> vaccinated or not, masks are back i'm shepard smith. this is "the news" on cnbc >> cdc whiplash. for most of the country, masks once again recommended indoors, including for everyone in k through 12 schools >> we are dealing with a much different strain of this virus >> and being vaccinated will not exempt you a setback for two of the biggest names in the olympic games. simone biles withdraws from the olympics teams final >> i was like you guys need to relax. you're going to be fine without me >> will shde

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