carter >> google, if we have it be careful it is looks like it is rolling over and there is more to go. >> tony? >> microsoft it is a diamond in the rough buy a call spread going into earnings >> mike? >> use put spreads and google to speculate or to hedge. >> see you back here next friday "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. hope you want to make friends. i'm trying to help you save money. my job is not just to entertain by teach call me at 1-800-743-cnbc. i heard it called all day today, the end of the bull market the popping of the bubble. the beginning of the real pain

>> the house of pain. >> i get why dow plunged 450 points s&p plummeting 1.89% nasdaq, i mean, i don't know yo well, okay it was down 2.72% the air has been going out of the balloon for months now with the balloon being the speculative name today it met the end for netflix. the pin action spread all over the market but this is just the process i've been warning you about for two months ever since they did not stop pumping out all of this junk these underwriters unless a company has a real service that can generate substantial service its stock just won't hold up, at least not for the near future. we had too much junk, not enough money coming in and too many new stocks there's more to sell than to buy. for over a year i had to hold my nose at 9:30 a.m., newly listed companies flimsy and deserved none of your time or money, and

i said that. now, chickens are coming home to roost. i urge you to look over your portfolio are your companies losing money, stocks trade at sky high to multiples. crazily expensive? it will remainain. this is a true shakeout. if you want to take a chance with these plummeting high fliers, you can't afford to own more than one or two and you can't afford to listen to the show because it's not going to help you. now, we're willing to accept a couple of historically expensive stocks a couple and you can follow by joining the cnbc investing club. this group needs to be sold to any strength like you had yesterday morning. the good news is the market got really oversold today. minus 6. that's a start and pessimism reigns supreme the bad news is that we are now in the heart of earnings season. you may own a clunker the supply chain is raw cost or what's happened the tail end of the pandemic if only because omicron look like it's going to get nearly everybody. plus, bonds soared today

that's a flight to quality traders believed the russian bear takes ukraine this weekend. i have no real intel on that but the s&p and dow went down later in the day it was russia that drove it down, not netflix. doesn't matter if you buy high quality companies. we'll come through this okay even if you just start here and buy lower. with these caveats out of the way, let's go to our game plan for next week. stay rational. one of the heaviest weeks of earnings season. we hear on monday hall burton, the oil service company. the oil companies are indeed on fire they're doing well precisely by not drilling excessively. their discipline is breaking, good for hall. if you like the oil stocks as much as i do, this is a must listen conference call the oil stocks are a great place to be here after the close ibm reports some are expecting very little from what should be an extremely convoluted quarter the manufactured infrastructure spinoff. i like the way the ceo

rationaled the business at all cost imb is selling watson health firm lots of burnt capital there. tuesday morning we get results from two companies doing everything they can to make money. general electric and johnson & johnson. we need to know how all these different divisions are doing. the market turned ugly a lot to unpack here no hurry you can afford to take your time analyzing both of them neither one will run away from you. my favorite stock tuesday morning is one that could run away that's lockheed martin. the country feels unprepared for cold war authoritarian access of russia and china not unlike 1952, '55 meet the old cold war. let's see what ceo has to say, i like america going into the quarter, medium and small businesses i actually expect a good quarter from these guys. the close, microsoft we need to hear about continued growth, azure.

a lot of people are worried about online, shopify went down big today. people are saying that online is over this is not true the federal reserve open market committee closed out on wednesday. we'll hear from j. powell about tightening and shedding bonds. i disagree with that i believe his comments will -- i think the current selloff simply marks the end of what amounts wholesale pump and dump scheme orchestrated by the venture capital complex in the form of garbage-backed deals and ipos. i bet we'll be fine. a lot of what powell says has already slowed the economy down. of course it's more than the fed. i'm expecting nothing. that's right that's french. nothing. not anything on china, not anything on orders not anything on 787. if you expect nothing, you see you're never disappointed. that's right you hope for the best but you prepare for the worst. and that's how i'm approaching

boeing for the investing club. the irs pay cycle is too good to ignore, but the company is not well managed if i were boeing i would do this and they can call me in, but i like my job. i would start by talking about defense, not commercial. it's really hard to screw up defense when you have a cold war. not great either but at least better than 77 we lost netflix. how about tesla? after the close, elon musk will give us his forecast i expect another good quarter. he has really good news this week in europe they beat new electric vehicle sales past diesel sales. the ceo of intel was talking about building a new silicon heartland in ohio. $20 billion multi-year investment watershed oh, it would be great if he can pull it off. i hope he tells us how it will be funded. intel generates a lot of cash. it's like a slot machine the wish of state of ohio and federal government would help them out more directly especially the defense

department so much of our semiconductors come from taiwan at the heart of the cold war on thursday morning we get one that might be easier than others mcdonald's, restaurant businesses in disarray thanks to omicron chaos and broken supply chains we're headed for a winner take all scenario and last man standing will be mcdonald's. after the close that day we get results from apple this time it could be anti-climatic. for the first time in ages apple stock won't be coming in hot gives you a chance to make money on the company i say you should own not trade i'm ever hopeful the break out the life time buyer phone buyer, consumer products company is where the money is and apple can stress that consumer love make life time value very sticky. it's not a compromise to say it's a consumer products doesn't make you into some bleach company for heaven sake finally on friday we have two really good companies. chevron and cat pillar cat pillar, one of the more

challenged industries because raw costs are going up i'm not ignoring the elephant in the room that the nasdaq just had its worst week in the initial covid crash. the market is following the script i laid out when the fed started new less accommodative phase. you don't want to earn the ones valued only on sales and don't make anything desiefable besides clean profits especially going after the real good companies. yeah they got to the great ones. but if you have let's just say it's not so much a funeral, it's just a sale. the bottom line, if you listen to the companies i just mentioned next week, i bet you'll be appropriately surprised at all the money these great american enterprises are making but as for the not so great american enterprises like the spacs, most of the recent ipos they'll be stuck in the house of pain for the foreseeable future. you won't make money instantly if any of the great companies turns around i am saying if you buy great

american companies not junk, you tend to do pretty well historically bob in new york, bob >> caller: small town investor this sure feels like a full blown market crash and it's kind of scary my question is about stall worth properties a. rod acquired starwood and a. rod required single rental homes in palm beach. is this the type of transaction is that is positive going forward for starwood >> you called it a crash let's step back for a second let's say it's a really, really serious correction so we don't get into 87 thing. who do you want to bank with i met this guy in 2018 at the super bowl, guy is like a seasoned guy he has been the kind of guy you bank with. nice yield, seems to know what he's doing stock 18 came on the show, said don't worry. people bought it made a lot of money. i like to go with guys like

sterling when the tough get going, he's at the pack the middle to then goes to the front of the pack. matt in colorado, matt >> hey this is matt from denver i was calling wondering about monster energy corp. i saw they recently acquired r blues. wonder if you think it's a buy or a sell? >> you know, oh, boy not yet. not yet. not yet. goes lower sorry. how about mark in massachusetts. mark >> hi, jim how you? >> i'm good. how are you? >> i'm great i've been watching your show since it started back in the early f2000s. first time i aver called. >> here we are >> my question is about home depot. it's pretty much dropped about 70 points just since january 3rd. and 35 points just since last friday, which is about a 20% and 10% drop respectively.

>> right >> 23 and the dow and yet there's no coverage on this drop pretty much anywhere. >> there's no coverage in drop because people can't figure out if homes are going down in value so therefore you're putting money in a home you're not going to do well home depot is a great american company but what's happened right now is in the last ten minutes of any given day there's no buyers. so give us good example. spend a second on this home depot goes to 349 if i told you 330 on monday that it's at 49, it could be 330 by the end of the day there's no liquidity there's no liquidity all i can tell you is when there's no liquidity you buy 20 shares then you buy 20 shares and buy 20 shares. you have to do what we do for buying travel trust. you can't do at one level. the market is just too uncertain. laura in new york, laura >> hi, jim thanks for taking my call. >> you're quite welcome. >> calling to find out if you think the drop in costco has been related to being a pandemic play and if now is a good entry point, it's a solid company?

>> well, okay, so portfolio manager jeff markson i spent most of the morning saying buy costco the reason why we said we know it did great, reported unbelievable numbers, it's a pandemic, non-pandemic play but it sells at 37 times earnings. we got a little gun shy. but that said, we own it much, much lower we were willing to think about violating our discipline because this is the best-run retailer in the world. all right. big week of earnings ahead i think you'll be surprised at all the money the great american companies are making and in the end that's going to matter it won't matter now, 320 big sellers come in and knock the market down 2% i can't help that. you have to think about it as a sale, not a funeral. as for the spacs, recent ipos, i think they're going to be stuck in the house of pain for the foreseeable future "mad money" tonight, 4% yield. i kind of like it. i'm thinking the quarter with

the ceo. and then after another tough day for the averages, just how worried should we be about the coming weeks you know what, off the charts. find out and you call me, you stump me with some of my oholdings one is very interesting, the other sale dice roll 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 "mad money" @cnbc.com or give us a call at 1 h 1-800-743-cnbc miss something, mad money/cnbc.com

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it's a grim day for the market the stock wasn't down if it weren't for the fact that the dow plunged. we expect a series of rate hiex. could this be a buying opportunity specially with the 4% yield let's check in with steve, the chairman and president and ceo of huntington bank shares to get a better read on the quarter and what comes next. welcome to "mad money." jim, great to be with you. thank you so much. >> before we get into huntington, i supported from the day you came in, ohio got some great news today and i know that you're involved in it. i think the intel thing is the type of thing that to me says great things about the heartland and great things about ohio. just give us a sense of how it all came together. >> well, this happened very, very quickly and we were probably the end of the lineup of rfp originally 30, 40 other sites and nothing like this exists in the midwest so, perhaps an afterthought? but the rfp was responded to very, very quickly, same way

and throughout ohio the governor has jobs ohio an organization that can mobilize very quickly and then locally here in columbus, we had the opportunity to do large-scale projects before we have facebook, google and others in with data centers just in the last few years. so we activated resources statewide. the governor, the legislature were fabulous and they brought this all together very, very quickly. so this is probably, i don't know, a seven, eight-month total project. and it is seismic. it will change the landscape here in ohio and i think the midwest. >> well, when i looked at your background, because you really are a great representative of where you are from, that all the different things coalesce that need to happen, great schools, low cost power, a work force that understands both how to make things and how to think, it just seems like ohio should have

been where things have been happening for a long time. >> well, there's this great manufacturing base in a wide set of skills. there are wonderful universities and colleges throughout ohio and adjacent states that all can support and will support what i think will be a massive investment over time silicon heartland. and if we achieve that, and the scale of this project with 1,000 acres to start and options for another close to 1,000 acres, this will be like a little city of silicon production. to plant itself, the first plant that they've committed to, is 1 million square feet. the biggest chip plant in the world. >> well, this is very exciting we have american electric power on all the time. we're familiar with the area and think it's great that brings me to the first question about huntington. business seems after all that you've been through, you came down through the great recession. this got to be the best it's ever been, correct >> it's really remarkable. and we're very, very

enthusiastic and bullish about the outlook. >> now, also if the fed raises rates, something i might want to be in is a regional bank with good growth and not a lot of loan losses. that again would be huntington. >> that's right. that's right plus sticky deposits core deposits that for us are almost half are in checking accounts so this is a wonderful opportunity for regional banks and we think for huntington. added to that is this economic development engine that's going on in the midwest. remember, when we first met, jim, you made an analogy about a rust belt that was turning you were president you predicted the midwest would rebound. and we have. it's remarkable what's occurred. >> look, i always felt that a neglected area of the country that is fabulous, hard-working people, i actually just -- i remember because i had been to a wedding in an area of ohio where there was just -- it was where youngstown it was youngstown plant. i said what are all these people doing? they were looking for jobs

and now everybody has a job. it's terrific. now, to that, it does seem to me that the regional bank, like huntington, has deposits and has the structure and the management like you to start doing these deals that the federal government would never let, say jp morgan do i think tcf is one of the best banks in the country and you got them at a very reasonable price >> we did. and frankly we got a tremendous group of new colleagues who joined us, more than a million and a half customers and economic power house in some business lines number two in inventory finance in the country combined with our equipment finance number seven, there's a lot for us to go for here as we bring these niche businesses to bear in the fourth quarter, this was a really quick acquisition approved by the regulators and a very quick conversion. and now for the first time, as we come into '22, everybody is on the same systems. we can look out for our

customers better there's a series of benefits that we are positioned to take advantage of we had a lot of conversion activity in the fourth quarter and much of that loan closing activity went late in the quarter. some of it spilled into the new year so as we come into the new year, it's with great loan growth, particularly commercial loan growth at the end of the quarter and a lot of backlog and momentum in the business lines we're very bullish. >> dr. gottlieb on the time, listen, omicron will go through the midwest. we have to be ready for it are you sensing that this could be the tail end of the pandemic for your area? >> we're hoping and believe we may be on the down slide a big university hospital locally, i won't mention the name, their number of patients on incubators is down from about 30% to 10% so that's a very good sign. >> that is a great read because those people -- obviously a lot of people vaccinated that's what happens.

they live. but look, it's just a joy to have you on. i got to tell you, i was looking before you came on, oh my 4% for regional, so hard to find. it was such a good balance sheet. this is a great place to be. then we get intel news it's terrific. congratulations for everything you did to get intel because i know you were involved president, chairman and ceo of huntington banks h band as we call it. thank you, sir. >> thank you ♪ guys, you see the market today. this stock is already being conditioned. it's already down. 4% yield great bank "mad money" is back. ♪ >> announcer: coming up, don't fall into a fix over the vix find out if there's anything to fear about the fear index, next. next e dex, next x dex, next dex, next , next

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with the outages taking another big hit today, exactly how worried should we be i've been warning this market would get a lot more difficult for a whole host of stocks since late november. what do we do now that they keep rolling over highly emotional situation like this selloff, you want to take your feelings out of the equation i want to fall back on empirical approach we're going off the charts with the help of mark sebastian he is the founder of option pit.com. the name of the game is volatility the middle of last week the volatility index, the vix for short or fear gauge, stood at 17, 17 today it's at 29 like i told you last night, yesterday's late afternoon breakdown was absolutely terrifying market board room strong and steam rolled you and foolish enough to take the bait. now another ugly session mark sebastian, two types of

situations you have the volatility spikes and the volatility swells. now, if you're bull, you much rather go through a spike, short term pop in voltyty the stock market sells off swiftly course of a few days and we had a few in the last year the worst was in mid september through early october as we were coming to grips with the delta variant. how about volatility swells, though okay the vix rises for an extended period of time, maybe 2 to 6 weeks and the stock market experiences a genuine correction sebastian's eyes we haven't seen a serious volatility swell since 2020 we're seeing one now. take a look the pair of daily charts and the s&p 500 on top with volatility index on the bottom the last 12 onths more than half dozen volatility spikes briefly shot higher and the market sold off and s&p went back into rally mode not long after. this is different. the vix didn't just explode higher out of the blue it's not a smipike, it's a swell

swells are ugly. the next chart, zoom in on the s&p and vix, just back through november sebastian points out ever since the s&p 500 topped on jan 3rd, the vix has been slowly but steadily marching higher it hasn't made any giant single day moves. but ite rallied relentlessly. this is bad news ffrtd stock market the vix measured the implied volatility of s&p 500 options. so when it rises, it means that traders have been buying protection from themselves every time the vix tries to back off even on days when the market manages to rale lirks they don't move to unwind these hedges. they buy more insurance. remember, rule number one, volatility index it's supposed to go down when the market goes up and it goes up when the market goes down. very strong negative correlation here however, when that correlation breaks down it tells you there's something wrong with the action. now, just look at what happened with the s&p 500 and the vix

yesterday. very short term, just the hours. even when the market was booming in the morning, remember we had that really horrible up opening, the volatility index didn't drop very much. the s&p was up 1.5%, the vix only dropped a touch over two points barely worth noting. the s&p stayed up 1.5% for several hours, sebastian says you would normally expect traders to sell their long put options to push the vix significantly lower, right market goes up, vix should go down in fact, around 11, the vix started to rally even as the s&p stayed in place. bad sign sure enough, the market started to plunge, the vix was off to the races. sebastian's view that's a clear sign the decline was right and the earlier rally was misleading that's not all take a look at this chart of the vix futures. remember, this index is based off option prices and options expire every month so you can bet on april volatility or may

volatility or june with the futures. unfortunately the vix futures moved into base ward ace the current volatility index is trading at a preem dwroup the february vix futures and the february futures are starting to move above the march futures according to sebastian, the vix goes into back ward, it's a sign of the market becoming irrational and turning point for the stock market could mean we're about to reach significant bottom and the average can turn around. but it can mark the beginning of a hideous breakdown. sebastian points out the vix futures went into back in march of 2020 and stayed that way for weeks. same thing in october of 2018. the series of aggressive rate hikes and j. powell talked about overshoot to stamp out inflation. in short, every time the market sells off dramatically, the vix goes into backwards liquidation and the selling continues for a few more weeks unfortunately that's where he thinks we are right now because we're not dealing with the vix

spike. we're dealing with a vix swell those always last longer than you like the bottom line, the charts interpreted by mark sebastian suggests the s&p 500 could remain in the house of pain through early february i wouldn't be surprised if he's right, the market is hit, you need to hold your nose and buy the stocks of quality companies that make real products or generate real profits like we started to do today for the travel trust as you saw if you remember the club and watched our morning meeting show everything else, ice it. let's go to johans in texas. >> caller: yes, good afternoon, jim. thank you so much for taking my call. >> of course >> long-time listener and subscriber back in september, i bought into the buy now/pay later trend and took a position in a firm holdings and watched it just get beaten down. what is your advice? >> okay. you're banking with max. i think max is a brilliant man

and i think you just got to hold it max will figure out a way to make money that's what he's done all his career and you can work with him to do that i think -- i'm not saying shut your eyes to anything. i'm saying that max is a moneymaker and he will help you out of what looks like a wilderness right now timny in texas, please timothy? >> how are you doing, jim? >> i'm doing well. how about you? >> caller: i got covid. >> i'm sorry, man. >> caller: i'm okay. i got the booster. so i'm good. my stock is -- i bought this stock in november as a speculative. and i was kind of interested in the stock is lumina. i got it in about 19.45, it's just been down to $13. >> right >> 13 dollars range. they had 300 million dollars buy back they've been granted their patents. and they got deals with volvo

and mercedes i was just wondering if i should hold on to this? >> look, i cannot be encouraging if only just because i have been ever since november a believer that if a company is in prerevenue or not making any money or losing a lot of money and doesn't have anything that is say a product that people want, that everybody wants, consumer product, it's not going to work. and not going to work is really just code for it's going to go lower. so i wish i could be encouraging, but i have left -- i've left that train in the station. all right. the charts interpreted by mark sebastian suggests selling the s&p 500 could continue through early february against that is the oscillator i used we should start buying and negativity you would be wrong not to pick away at good things. the charts are right, though, i suggest using that weakness to buy high-quality companies that's why i can't recommend a play, battery play, i have to recommend real companies here

with real profits and real goods. much more "mad money" ahead. when ever you call in, stump me on a stock, i put in the work and report back with my thoughts then netflix investors were not chilled after earnings not like jimmy chew. what sels impacting the stocks of course all your calls on rapid fire in the lightning round. stay with cramer

♪ at this point the selling has gotten so bad and so indiscriminate i think you need to be ready to hold your nose and buy something on the way down as we did in small way for the travel trust this week, talk

about this morning where we put some of the money to work that we had sold earlier in the week. but i know it's difficult to get enthusiastic at a time when the market is doomed to go lower i want to catch up with some homework this is the most interactive show on television only by the standards of 2005 when we first went on the air. when you ask me about a stock that i'm not familiar with, i'll take time, research and come back and consider your response. tonight i've got two of them that are right at the center of the swell of selling that's engulfed the entire market a pair of posted backed names that completed the mergers last year this is the best zone. most of the spac stocks are just untouchable. but every now and then you find a quality company might be worth picking. you always have to do the homework let's get to it, december 21st begot a call from mark in south carolina a company that became public by a merger with a spac last summer

like so many others, nautilus biotechnology. it went from 11 to 22 in a single session everyone was excited so many of the spac names it's been all downhill ever since, specially the last few weeks and the stock is trading down to 4 this one is barely large enough to talk about on television. it's crushed so many people. what the heck do they do and is the stock worth a couple of bucks? it's like a power ball tickets is it? they're working on a technology platform that will unlock the complexity of human protium. we asked what the heck is the human protium and look it up turns a set of proteins that control cellular functionality unlike your genes, though the protium is constantly changing depending on your diet and host of other factors that make it notoriously difficult to study here is where n-autilus comes

in trying to create a platform to take in samples and return unique biological data the ultimate goal to create betzer individualized treatments for all sorts of conditions. immunotherapy. the analyst who covers this industry for jeffries liken to the dna sequencing space roughly 20 years ago that gave birth to all sorts of huge bio tech winners. that intrigues us. this story is very much in the earliest possible stages they aren't trying to study the human protium. they want to be arms dealer to this industry. i have no idea if we have the technology or what we could get out of it. but i do know nautilus has encouraging partnerships they signed collaboration to map and analyze landscape of particular protein they're interested very good partner. they linked a deal with amgen. and anderson cancer study and

university of texas. all these are great, great companies to be involved with. get this, over the summer we also found out that amazon of all companies had taken $15 million stake in the company jeff bezos invested in it personally that news caused the stock to spike up 50% the enthusiasm was short lived real sponsorship on wall street which makes it unusual for a spac name. four analysts those at goldman sachs and morgan stanley initiated coverage with buy or hold ratings none of these calls have done any good if you listed them they've been crushed honestly, the best thing about nautilus is they had $347 million of cash, 3-4-7 which is huge considering this is roughly $500 million company look at it number way, $4 stock with 22.08 cash per share. you're getting the company for free i like that but it's not necessarily reason to buy the stock because they have to burn the cash and then you have to

raise more capital the next couple years i don't have an edge on nautilus i don't have strong feelings either way you want to speculate on spac name that's been de-risked i encourage you to wait. you think the sound of protium -- put it if you like it, who dabbles it in is tmo look, i play power ball. this could be power ball. next up, january 3rd, stew in florida called about six terrace technologies wow, this is interesting this became public merger with star bord value spac late last july star board is a good company old century link lumen called out data center. i got to tell you, cyxtera is interesting. this is a real business, significant revenue and actual earnings before you back out amortization and interest. that's why it held up much better than post-spac peers.

i say there are data center play but more specifically this is called cold location for buyer, carrier mutual data center they don't force their customers to use broadband. i like the data center business. you know that. but ultimately they used to be a private equity portfolio company. the balance sheet is loaded with a mountain of debt and it's only profitable on ebitda basis there's other negatives. they leases majority of real estate they don't own it. they lease some of the space from digital realty. that's a company i like. 3% dividend yield. more importantly large shareholders currently locked up i expect the stock to hit when the lockups end. the two former privatety backers own 63% of the business. starboard has 10%. they can't sell until late july or if the stock goes above 12 and stays there for at least 20 days within a 30-day period. with the stock just under 11, i

think that seriously limits your upside because if they have a sustained rally, you have to expect the firms to ring the register or part of the position i like the data center business, if you want a data center business, i would rather go with switch these are both interesting i'm trying to do the work. but in the end, you know what, there's nothing like owning a j&j. "mad money" is back after the break. >> announcer: coming up next -- >> let's make money together what do we got >> cramer is bringing the thunder and answering your burning questions in today's edition of "the lightning round. ♪ ♪

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ameritrade ♪ it is time and then the lightning round is over. are you ready? jen in new york. jen? >> caller: jim, you're smart, dedicated and we love this show. >> thank you thank you. >> you're very welcome will at&t go up prior to and after the spinoff? >> i have to tell you, i have -- let me tell you about at&t, don't hate it anymore. ted in texas ted? >> caller: big jim, boo ya hey, buddy, i was wondering what your thoughts were on crow generation. >> it was a stock -- stock whose time has come and gone they bought a lot of companies and did one too many rollups and i had to say good-bye and that's where it remains in the good-bye mode let's go to joe inconnecticut.

joe? >> caller: boo ya, jimmy. >> boo ya. >> caller: first time, long time, millennial investor and mill lineal club investor. >> thank you >> stock was baby thrown out with the bath water, they had a record q4, despite surging omicron, they are entering 2022 with a lot of momentum december was the best month in company history. they have real earnings, real growth, reasonable stock valuation, new tech and management consistently beats their own conservative guidance. but it's been cut in half from ties and declines continue should by pounding the table on end mode >> joe is absolutely right this situation is a very good situation, but the precure yal nature of this market is not letting this in mode bottom. it's trading as if it's losing big money and not doing in i like it. i can't tell when it stops but i do like inmode jerry in california. jerry?

>> caller: yeah. nice to talk to you, jim hope all is well there so, got this gdrx. i thought it was a great idea when you brought it to all our attentions and helping people in need and so forth and so on. but of course, this reeks like everything else. >> it's exactly like the others. it doesn't make any money. that's what people think i was with someone over the holidays a buddy of my daughter's who works there real smart kid went to summit and you know, asked, i use it. it's a great product but you know what, i'm looking at sells at 67 times earnings, losing money i mean, these are all no-go. i mean, they're in a no-fly zone you have to look at it like that let's go to randy in ohio. randy? >> caller: yeah. how you doing today? >> i'm doing well. how about you? >> caller: just got done watching the sun go down and waiting for groundhog day. >> i like that go ahead. >> caller: my question is i want to know how much dividend and what the companies are affiliated with h & r block.

>> they're up against intuit that is it early bringing a knife to a gun fight i can't go there. >> antonio in michigan. >> caller: hey, jim. this stock is down on the year so far recently acquired a company that got them into data center, infrastructure management which is always growing. given the down year, do you like carrier global >> very much so. there's a company i would buy some at 45, 30, 35 and when it does, you have to be big because that's a good company and that, ladies and gentlemen, is the conclusion of "the lightning round". >> announcer: "the lightning round" is sponsored by td ameritrade coming up, does today's drop mark a permanent divorce between netflix and its partner chilled? cramer breaks down on the streamer's dreams turned into a nightmare next

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♪ too much to watch. too much to do not enough time. that's what really crushed the stock of netflix down nearly 22% today after last night's fiasco forecast by kingpin. for years the ceo told us that

his real competition is simply the other potential uses of the time people have when they get home from work or when they go to sleep but the narrative changed and changed hard last night. netflix delivered in-line numbers but the forecast was for far less than half of the subscriber growth that most research firms were expecting. the reason among many including odd rimpbs to weakness in latin america, the main culprit is too much competition. see the spell has been broken. broken by roku, hulu, peacock owned by our parent network and paramount, showtime and hbo max and disney plus. the limiting factor for netflix is no longer time everybody else in the streaming business. the market jumped to that conclusion that home entertainment is now capped and wildly overinflated by the stay at home nature of the pandemic i beg to differ. as you know, unlike other investment manager i play with open hand. i show you what i'm doing, try to teach you to be a better personal portfolio manager that's why i started the club.

in our morning meeting internet show at 10:20 a.m., i said the decline in disney off the netflix news seemed wrong headed disney plus is the or vil app. it was $200 less than a year ago. you're now getting that whole business that people have turned on practically for free. i've been too early on disney. we rang the register for the travel trust last year and came back, i said i have to start buying unfortunately because i mentioned this morning on television, i wasn't able to buy it lower than the other stock that i had bought. i can only tell people that's what i want to buy by the way, if it is down next week, we will buy a bunch. it's time to stop conflating speculative stories with investment grade stories many stocks have been annihilated here companies that mostly trade on hype or hope got all the spac plays hundreds hard pressed to find three or four that might be worth owning all the recent ipos the last 18 months really all of which are

uninvestable because the valuations were inflated by venture capital investment banking company. crypto contains doge coin. it meets a lot more disclosure comedy with disclosure the problem with crypto is there's no floor with stocks at least we know how many shares exist. all the speculative assets are put through the meat grinder that's what's going on now they have good ones today. they're out of style but you can't extrapolate the weakness of one company, which has done very well, netflix, with a whole host of other companies with great brand names that make fantastic products and generate good earnings like disney full circle to disney. i want to own the stocks over long standing great american companies brought down in a guilt by association fiasco and that's exactly what happened to the stock of disney today. i'm not saying netflix isn't worth owning some place it sure will be there are plenty of high quality companies that were polaxed

today because of netflix those were the best ones to buy. not the spacs. not the recent classified ipos and most certainly not crypto. i like to say there's always a mark somewhere i promise to find just for you right here on "mad money." i'm jim this is "the news" on cnbc america's urgent diplomatic showdown. >> this is not a negotiation but a candid exchange of concerns and ideas. >> secretary blinken state to state with his counterpart where things go from here. a confession in the murder of gabby petito. the fina