>> i know you love home depot. so do i. my favorite store. you nibble some here. >> thank you for watching "fast money. see you back here tomorrow at 5:00 don't go anywhere. "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 is always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to mad mn. welcome to cramerica other people want to make friends i'm just trying to save you money. my job is educate and teach you so call me at 800-743-cnbc or tweet me at jim cramer on days like today, doesn't it teal like the market was hallied so hard it might be due for a correction dow dipping 65 points and s&p

declining .63 and nasdaq losing and it was worse at one point. it was an awful day for almost all stocks specially the growth stocks and that is logical as the stock market is over bought, and the growth stocks are red hot and we're telling club members an the cnbc investing club, you have to be careful you could only buy stocks with good companies and that are getting crushed. good true growth stocks could be imperus to a ugly day. when you see lululemon surging $33, you know the market is eager for secular growth they have secular growth being the kind that doesn't need an economic tail wind wouldn't be hurt by the fed. at the same time, if you do fear a fed mandated slowdown or a recession, as so many do right now, then you have to avoid the cyclicals. the stocks that are hostage to the economy because it might be too late now that the fed has poised to put the brakes on the business cycle spot the real story, steer clear of the cyclicals

sounds easy. right. not so fast. these days everybody wants to paint their stock as a secular growth, because their stock will go up even if the fed breaks who would want to be banned as cyclical when they only want growth this wasn't only the case. in the old days companies accepted their lot you never heard a steel or aluminum case that there was not a secular growth play and they accept that the fate was tied to the business cycle same goes for the chemical stocks and the paper companies, bought when the economy was about to take off and then you hang on and causing prices to collapse your goal was to get out in a game of chicken before that occurred and that is what defines a cyclical stock great demand causes a shortage of supply which leads to more production which leads to a

supply glut so the whole thing collapses under its weight and that is what so many are worries about. don't cry for the cyclicals. you could make fortunes provided you know when to jump off. but if you don't, the losses could be calamity. they all want the secular halo and it is hard to tell whether or not they deserve it so case in point, let's dissect one that i interviewed this morning, micron. really tough when i got into this business four decades ago, there were few nonmineral stocks. they made semiconductor and d ramps and competed against a bunch of low cost producers in asia they were one of the best performers or worst and very little middle ground over time, though, micron decided to move into flash memory and building a more

intricate d-ram but the date ear centers and into cars, no matter what the company does and that includes reporting an excellent set of numbers last night, it is still tied to the micron and it seems to get discovered such on days like today. now i think it is wrong. the new micron is much better than that. it is a low cost and most competitive producer whether it comes to quality and used in the best growth areas but i respect what the market is saying. if it soared, it's four point gain went away people didn't think that it might be secular, they said it is cyclical. with demand will cause this to collapse the ceo said there was weakness in consumer notebooks. i wanted to ignore it. but it doesn't matter, the bear seized it and they beat the stock to a pulp. sure enough, micron finished down 3.5%. so it starts the day as a

secular grower and finishes as a cyclical bust. we see this all over the map for years -- were the ultimate boom and when oil prices were high they would ramp up protection to sow the seeds of their own demice causing prices to collapse from 2014 through a couple of years ago because the industry had zero discipline. and out of nowhere, rick moncrief decided rather than drilling like crazy, he devoted earnings and cash flow to you, the shareholder. for a very generous dividend plan worked because the rest of the industry got on board. nobody wants to be the first producers to drill like crazy andrewin everything and now they are practically an atm they are taking a stock from the garbage pile and put it at the top of the secular cookie jar. and then there is a stock i like called deere, and the gultsal

cycle has been boom and bust there was no way for the world' largest farm equipment to escape it it was just always hostage but now farming has gotten high-tech. deere building autonomous driving tractors, much easier than self-driving cars because there is no traffic in a corn field. right now those seem bent on going higher with a drought that could wipe out the crop and a war in ukraine that could take out 13% of the worlds calories there are also many others that fail i thought rh, the old restoration hardware had escaped the boom bust cycle. but last night ceo gary freedman talked about they are very sensitive to the economy and the war in ukraine is now cutting back and i find that shocking. but it caused the stock to go down 50. you don't want that. and then the automakers. they have created because wall street worries that the fed rate

hikes will make it harder to get financing. it doesn't help in a semi shortage that they haven't taken advantage of the boom. but there is an exception. tesla. you know why that is the ultimate secular growth stock that is why it is such an important one in the market. finally the toughest one apple. now they're still plinty of analysts that believe their hostage to their cyclical boom and bust nightmare i think each phone represents an annuity stream with its own lifetime subscription battle, apple getsa and you have it because it is the best if it goes down tomorrow, you'll see people blame me. wait a second. you know my view i say own it, don't trade it but if you don't own it yet, it is been up day after day. it could cool off. let me give you the bottom line. at this point in the business cycle, every company wanted to be seen as a secular growth story. approach them with skepticism, not like today, but some skepticism not over caterpillar, i mean

little c not big c could turn into a butterfly kate in georgia. >> caller: how are you >> i'm good. how are you doing. >> caller: i wanted to extend my c condolences to your friend who lost his dog and i respect everyone's grief timeline but our shelters here are full and we adopted a black german shepard and hands down, she's the salt of the earth. >> oh, i love them my rescue dogs are sleeping in the bed because my wife got back from florida they said wait until i leave the bed. i love them but anyway go ahead >> caller: so my question is regarding abbvie high quality problem and i have huge profits and i fell like it is time to take them. >> jeff marks and i, you could watch it at our 10:20 meeting,

we've been going back and forth for the club and he convinced me to hang on to the rest because it does still yield 3.5. i think it is going to pullbac but you know what, this is a very good company that was underrated by wall street. hold on to some and take profits in others if you have it like we did. jeff in indiana. jeff >> booyah, mr. cramer, thank you for taking my call. >> thank you what is up >> caller: i have a good chunk of new course steel and it is had a great run this last year from 75 up to 157. and it has been bounced around 149 or so in the last week should i take a little profit here or -- >> just like our previous caller we have a huge gain in new corp for our investing club we have sold a lot of it because we don't want to give it back it is a growth cyclical. is what we call it so take some profits but not all of it. now, i know, there are plenty of things we do wrong in the

investing club so you have two good ones. there are things we do wrong too. don't make it sound like these were cherry picked but we do like to take profits when we have some stocks with cyclicality or skyrocketed because we don't want to give the gains back n. this market everyone wants, every single ceo wants his or her stock to be perceived as a secular growth story. i need to be skeptical because not every caterpillar could turn into a butterfly on "mad money. paychex has a slimmer of green so could they continue to pay up for investors and i'm checking in the ceo and should you jump in on the action let me give you some warnings and then the most exciting company in the market which is tellury an, i want you to be careful because it is such an exciting story but it is only a $5 stock stay with cramer

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but when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose fiber solutions with speeds up to 10 gigs to the most small businesses. that's virtually everywhere we serve. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. powering possibilities™. lately we've been glued to every piece of big picture macro economic data because everyone wants to figure out how aggressive the federal reserve will have to be and how bad the brakes will be slammed on. but in the end the most important is the labor department nonfarm payroll report on friday we gist got a positive report this morning i'm talking about the one from paychex, for small and peadum size businesses that provides

human management services. this morning they reported a clean beat in the quarter and it had already run up in the quarter but as the conference call went on, the bulls could not be denies. you see this absurd action in the afternoon hours, more on that later the stock finished up 3% which i think was right. but unfortunately strong employment is not what we want to see right now because it means the fed needs to be more aggressive. good news for paychex. they benefit from rate hikes while they collect interest rates and wait for your checks cashed but they do quite well when it comes to more companies being created. so let's check in with marty, the bank and chairman of paychex. welcome back to "mad money." >> thanks, jim, appreciate being here. >> marty, i saw a plethora of greatness from your quarter. more businesses and more work for paychex at each company.

sts all coming together, the things that woof worked on for years since we've been talking >> it really is, jim third consecutive quarter of double-digit revenue and ernst growth we're very excited about it. great macro environment, frankly. and our product development over the last few years has really come together to help people -- to help businesses grow their businesses and continue to grow. >> why isn't the rising cost of so much hurting companies to the point where they have to close why are you seeing so many companies being able to sustain these levels of inflation? >> well, jim, i think one there is plenty of zdemand there there is plenty of demand for what they're selling also the government subsidies have helped out. we talked about our employer retention tax credit and service that we've been helping our clients with on average our clients have gotten $180,000 from the government subsidies of employee retention tax credit that has helped sustain their

business. >> and also at the same time, i believe state assembly, in some of what i would call more liberal states have been developing legislation that has helped the employee. nothing wrong with that. but it must be very difficult for smaller and medium size businesses to know how to handle the new laws without paychex. >> well, really it is. we're proud of the fact we have over 200 compliance specialists that jut watch and monitor every federal state and local bill and the changes that there are there. we have an i.t. team to put the changes in place quickly just like when the paycheck protection program came out, we were there the next day ready to help them get loans an we got over $70 billion, helps our clients get over $70 billion in loans which over 95% are already forgiven. >> that was some program kept a lot of companies alive. now a lot of companies are faced with people, employees who are just quitting and they call it the great resignation.

they could call it whatever they want but the fact is you need the great retention and paychex is working to retain. what are you doing to retain the right people >> you know, it is funny jim, what we're able to do is use our data to help our clients in the products that we're introducing right from the beginning, how do we hire and attract and retain people, our clients, doing it all digitally, doing it all online paperless. we have a -- we're in with linked-in to help them bring their clients on board, doing it paperlessly and then product that will help them from giving them compensation and showing the highest retention. we have a lot of products that will help them keep and retain and help the career building of their employees. >> well it works it definitely is working i do not and i'm not talked enough about your professional employer organization group and insurance solutions. one of my colleagues said, jim

you may talk about it. it is up -- it was up more than 21% and it is obviously doing incredibly well. maybe you could give us insight because too many people talk about what you're making on the float and not nearly enough talk about the pe, the peo business >> yeah, the peo is a coemployer relationship with paychex so you could benefit from our benefit plans, they could be share add mong companies and smaller companies don't have thebenefi plans or the health insurance that theireems want and they attracted and retained employees. so it is important we're seeing great growth there. one, we had great sales. once again in the quarter on the peo business we saw the growth in work side employees at our clients and better health insurance attachment because these businesses need to provide health insurance to retain employees even if their a smaller business but with a poe, he could

benefit. >> and do you monitor covid. it looks like it is having an uptick do you give them a sense about that too. >> you do get a sense of that. and we also have a product that we're able to now put a document management that the vaccinations could be uploaded as well. so we're assisting in that and even when there is an uptick right now, it doesn't seem to be impacts small and mid-size businesses because i think it is turning out to be por flu like and not the hospitalizations or time off that we were seeing before. >> because what i'm hoping is that the next time around companies like you could advise other companies to say, look, here is the protocols. you have to immediately have testing or someone that gives shots someone that recognizes that here is the percentages of the ages over 50, because i found everything was too catch cam from the federal government. i trust paychex more than i trust the feds >> yeah, i think, jim, that is part of the benefit of the peo as well or aur aso, where we

have over 600 hr professionals out to help you. we could give you best practice even if your a small business, you could see best practice and we could help you get the best practice in place for your employees and you could aclike a large business even though you may not have the resources that they do. >> and last question, i know employment numbers probably going to be strong on friday, but parts country that are still red hot? >> yeah, there is. the south an the southwest are still the strongest. we've saw that in our small business index released this week that is where the people are, too. so they're seeing big wage increases, close to 5% on an annual basis just last may in '21 it was.7 and now it is 4.8 annual wage increase and it is the millennials getting the biggest one, closer to 8%. >> are they lucky. maybe they deserve it. labor has had a tough time over multiple years and now it is there time marty, chairman and ceo of

paychex. good to see you. >> okay. thanks, jim. "mad money" is back after the break. coming up, beware what happens in the dark. cramer is working on his night moves. a case study in after hours trading, next.

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last night the stock market closed as scheduled at 4:00 p.m. and then almost immediately after hours trading turned into the wild wild west and i tell to you avoid after hours trading because it could get unpredictable. we had some high-profile companies, three that i was watching, mieng micron and louisville and rh. and any time they move from headline to headline in response to every new morsel

of information without each 100 milligrams of lithium to keep them on even keel. now we just learned that robinhood is extending its trading hours, more than 20 million people who have money there. so those people will be able to trade from 7:00 a.m. to 8:00 p.m. 7:00 a.m. to 8:00 p.m. come on, man i'm begging you not to get suck issed in when evanss are on the table and tonight i want to give you a little study based on one single night's activity one night's worth and it shows you where it could be a mugs game to be in the after hours or before hours even though i know younger people are addicted to doing this let's start first with micron, it is focus on the storage and memory chips it is important because it is perceiveds a bellwether for the industry it is soaring and then collapsing at the first sign

that demand is waning. during the first few months of the meltdown, micron held up pretty good. because the chip shortages gave them pricing power but then russia invaded ukraine and the market turned against all pretty much every single tech stock the stock plunged from the mid-90s in february, you could see it go down, all the way to the high 60s at the lows of a couple of weeks ago and then they bottomed and last night close was back to 82 so what if happen after the market closed. when the micron results were first hit the wire, it was clear there was a good quarter a substantial sales and earnings beat and guidance was better and the full year forecast has much higher than analysts were looking for and it jumped to $85 up from $82. and change within minutes, okay, within minutes and you could see how that happened. and buyers committed one of the two classic blunders, never

start a land war in asia and never buy a stock before you listen to the conference call and they didn't hear what was in the conference call. management talked about how china's covid lockdown could threaten the supply chain and russia's invasion of ukraine and sanctions could crimp supplies of gases needed for manufacturing and they're going to increase costs, there were things that were wrong on the call so you won't have bought right here and wouldn't have bought up there. now it turns out that in february and march reflected some legitimate concerns micron gave back all of the after hours gains and get this, stock finished down more than 3% which i think is frankly a profound overreaction. but these who bought first are rethinking their purpose in life there, no reason listen to the call this is after hours trading that is bad but wait until you see the next two. ultimately i think that the

quarter was not bad. and i think if you buy it down here it is good. they have sustainable demand from the dater center to 5g and i like micron down below 80 but if you tried to trade it after hours, you paid much more than you needed to. and i saw ticks at $86 85.5 and then the stock went down a lot you could have flipped it at opening for a little less but then it was all bad. then lululemon they peaked at 485 in november before prlummeting to 278 this is when the fed didn't like the high growth stocks fed decided fed and put on the brakes and this is what happens when inflation heats up. now some of that sell-off, some is because lulu was seen as a covid winner, with the pandemic waning, money managers are

worried that that will too and then lulu reported after the close and while the sales were basically in line, they delivered a 10 ¢ earnings base and management gave you tremendous forecast for the current quarter and full year and that is why it was in a terrible market today. but look at the after hours action something went wrong last night. there was a flash crash. this is an actual flash crash. look at this thing and then it went up. what happens if you had bought it what happens to cause a flash crash. first there was confusion about the comparable store sales, and the foremaner includes a digital business but the latter is same-store sales and we saw estimates for the metrics and i think the confusion may have scared some people away and caused others to panic because the numbers weren't right. they were not apples-to-apples

the headlines were wrong second when you line up the timing, it looks like it collapsed because of a line on the conference call where they said the persistent delays in ocean freight are causing them to weigh more heavily on air weight and gap missed his holiday quarter due to high airfreight costs and that is part of the flash crash and then they are baked into the forecast and so you were good. but if you sold the stock down to 345, you're kicking yoursel today. that is it back at 370. don't make a move until you heard the whole call so you have same store sales numbers that were not apples-to-apples and then you have a line about airfreight and that is what caused this and this and believe me, a lot of you might have put a market order in, okay, a market order into sell the stock here and you got this price you could imagine? imagine how bad that is.

and the third example, if you're watching the after hours action you would have had no idea whether the quarter was good or bad. rh same store sales came in at 9.7% and sales were weaker than expected but they still delivered a modest earnings beat but it made it pop because rh had lost half of the value since the stock peaked last summer now get this unfortunately those early buyers, people who paid up here, they made a mistake. guidance was mixed and you got that after and overall, the results and then the guidance brings it down here and they had an okay forecast for the current quarter, a not so hot full year numbers and weaker operating margins in response to stock that gave back everything. but get this roh pirouetted, because the company announced a three for one stock split. so suddenly everybody is crazy about. remember how much you made if you bought tesla on the stock

split. but it is creating no value. this is perfect financialal chemi. but a lower price per share entices investors. none of this matters if the underlying business is struggles. now if you waited for the conference call you learned about the struggle during the q&a, the ceo repeatedly sounded the alarm about inflation saying the federal reserve has no idea how bad things have gotten and he said rh business has slowed when russia invaded ukraine and at one point he made me feel like people weren't buying goods over sure gloom in ukraine or pandemonium in the band market. the point was not what shareholders wanted to hear. so anybody who bought up here, oh, my, you were just crushed. yeah and the stock only closed down 334. so you excited about the stock split and got excited about what looked like an upside surprise and you just got crushed the bottom line, oh, it is great

that robinhood wants to extend the trading hours but keep in mind that your playing with fire here one mistake in after hours trading will wipe you out much faster than a mistake during regular hours when everyone has the same information and there were r more bids and offers and the playing field is more or less reasonable. let's speak to if ty in florida. >> i watch your show every night. >> thank you very much thank you. >> caller: i wanted to ask your opinion about home depot what do you think of that long and short? >> well, home depot, there are a lot of people who follow me on twitter who are convinced that i've got a say that just throw in the towel on home depot i like lowe's more than home depot. am i craze about the stock, look when the time of raising rates people don't want to buy anything relates to housing so i understand the clients home depot and they did not have as a good of a quarter as lowe's. so there it is i don't know what else to say.

it doesn't have as good of a quarter. if you're involved in after hours trading, you're playing with fire. you would have lost a fortune here because you have these giant swings that you can't do anything with why f you're using market orders. there is much more "mad money" ahead including my exclusive with the head of tellurian what could the u.s. do to help countries that need gas. i've got the exclusive and i'm revealing what went wrong and what the future holds for the online retailer. and then all of your calls and rapid fire on tonight's edition of "the lightning round. so stay with cramer.

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you don't know how the russian invasion of ukraine will play out but i'm pretty confident that russia's psychotic aggression is transformed european energy policy many e you have countries are hostage to russian oil and gas, especially germany thanks to former chancellor merkel they don't want to have to pay for russian gas in rubles. now that european needs a new energy supply, our government wants to help them fill the void the white house and the european commission announced a join task force to provide them with natural gas. it costs a lot of money and freeze it into liquid and that requires gas terminals which brings me to cherif souki. and now he's doing it again with tellurian which just began on the first terminal the stock is up 40% in the last 12 days including another 6% so let's talk to cherif souki

who understands this business better than anybody. mr. souki, welcome back to "mad money." >> thank you very much, jim. >> it is great that you're on. i want to congratulate you because the driftwood l&g, and i look at your release and i think is there any way you could double or trip the size of this project. >> i think eventually we're going to get to 27 million tons which is three bcf a day and that is about as much as we can do on that particular site i am very encouraged by the fact that there is a number of other projects in the u.s. that are waiting for the right business model to go forward. so, if we put our minds to it, we in the u.s. could have about 120 million tons in addition to what is under construction so we could make a huge difference in terms of gas

supply. >> 120 million tons? you're talking about the possibility of your company alone providing a substantial amount of the l&g that the e.u needs. >> that is not a question, jim we are going to do it. we started construction, the first l&g will be on the water and earning in 2026 and we continue to develop the project because the fundamentals and the economics dictate it it is such an arbitrage with gas over $20, the vicinity is in a year and a half. >> well charif, i know you love the guy but he's not going to be able to get the financing for this big project if i were any european company, if i were in the european government i would be trying to guarantee your debt.

>> yeah, that is definitely something that they should think about. however, jim, we don't need them we are in the process of getting -- put together. we do that in the next few weeks or months. and that is why we started construction so i -- governments normally move slowly even in a state of emergency. by the time they figure out how to do this, we will have -- we will be well on the way to construct this facility. >> you once told me that there is enough natural gas to take care of the asian needs and the european needs but we didn't expect what happened in europe but it does seem that the president may be on to something in thinking that america could supply enough l&g to the e.u. >> i think we have enough gas to take care of the u.s. needs for 100 years. so it is not very difficult for

us to share this with the rest of the world the question is do we need to build the infrastructure it is not a sure thing it is the 120 million tons that is already permitted is going to to require 120 to $150 billion worth of investments so we need to get seriously behind it. >> well, but when i hear that, i think in this country, we don't have enough workers. we don't have enough even bechtel, which is a great company, they can't find all of the people that they need to build these things >> you are absolutely right. that is going to be one of the major challenges so, you're going to have to have capital and people we already see some constraints and in the wells that we are zriling today. it is taking longer than it did a year ago there are bottlenecks everywhere the good news, jim, is that in

the agreement with europe, the trump administration has finally agreed to facilitate the permitting process and the execution in terms of how you go to ferc and the other agencies and make things happen in a hurry. and we've already seen some signs of this. and in every day lives so that is very important. but we're going to have challenges but we deal with them this is a very -- country. >> well let me ask you, because i know you know you're international -- you go all over the world and you have tremendous contacts. will -- is russia perhaps overplaying its hand in its belief that it has total leverage over the e.u. given what our 100 year supply here? >> i just can't fathom what was going on in this person's mind he made so many mistakes,

including the leverage that he thought he had over europe, the facility with which he thought he would be able to bully the ukrainians into doing what he wants. he was wrong about everything. the own army the number of mistakes he made is mind blowing. this is a person that actually natched defeat over the joseph victory. he was on his way to become one of the largest economies in europe and probably in the world. because of the richness of his resources and instead of that, he's taking his country back to the dark ages. so -- >> well is it possible, i mean, there was a very good piece in "the new york times" today saying that he does have some master plan that we haven't thought of where could level kyiv and still has something going to make it we're all hostage to him i don't see it any more. but maybe that is -- he's got some master plan that is not

clear? >> of course he could be destructive. but it is not going to improve the situation. it will make things only worse. >> you know more than most of the people you know more than everybody he did overplay his hand i think. we can actually help the e.u. tremendous and by the way, sir, it was all doing. because no one else had the vision except for you for doing this so thank you for what you've done. >> thank you, jim. all right. that is cherif souki i like the stock but be careful. it is a small one. only $5.4. no reason to take it up big tomorrow "mad money" is back after the break. whatever question you have. >> should i bell, sell or hold. >> cramers has got the answer. >> the business is on fire >> "the lightning round" is coming up next

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easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today. "the lightning round" is sponsored by td ameritrade >> it is time. it's time for "the lightning round. and then "the lightning round" is over. are you ready ski daddy. joseph in california. >> caller: first time and long time. >> fantastic what is going on. >> caller: thank you for everything that you do the stock is alden it is a material chemical company with pricing powers that looks like --

>> it is all that. it is all that but the pe is a tractive and low because i think that the pricing is not going to hold up. be careful with that one let's go to -- thank you for being a member of the investment club if you want to join fantastic. rich in ohio >> caller: hey, i'm a first time caller want to thank you for your advice. i bought hertz prior to the bankruptcy, since it came out of bankruptcy the stock is up about 60% and they also issued me a lot of warrants which is doubled. i just wanted to get your advice on where i should go either own the stock -- >> let it run. steve scherer is the ceo he used to be the cfo of goldman sachs. one of the smartest guys i have ever met be long hertz. let's go to brad in north dakota >> caller: thank you for taking my call, sir. >> of course. >> caller: i bought df holdings last july, is it time to ring the register. >> yes on half of it fertilizer is very volatile. play with rest house is money

daniel in florida. >> caller: booyah. long time listener and i've been watching since i was 18 and appreciate everything that you do. >> of course than thank you. >> caller: with the acquisition of hey do, trading 56% off the highs, 8 times forwardearnings is crux a buy. >> no, because i thought they paid too much for that and it was at the wrong point in the cycle. i'm going to say avoid let's go to john in north carolina >> booyah, jim. >> how are you doing >> caller: i'm all right my question is buy sell or hold cgc. >> i think david klein should come on. talk about the possibilities of what happens if they get to through congress it is too low to sell on seven roman in new york. >> caller: booyah. i have a question about i've

been following the chinese tech stocks i noticed they've been beaten down 75% on the nasdaq and the dragon index and what i was wapping in particular was jb.com. i noticed a couple of weeks ago it was $42 and change and it is up to like $62 and change now. >> the china government slammed them and my take is this i don't want there too risky. and that is, ladies and gentlemen, is the conclusion of "the lightning round." >> "the lightning round" is sponsored by td ameritrade >> coming up, is this stock nothing but a hound dog? why it may be time to shed chewy from your watch list, next

it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ c'mon caleb, you got this! and if you don't, there are other options! umpire: strike three, you're out! you'll get 'em next time! plan today. feel comfortable about tomorrow. massmutual. your shipping manager left to “find themself.” leaving you lost. you need to hire.

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alas poor chewy. it is been a rough past year for this online pet store play and it only got worse today.

stock plunging another 17% on an ugly quarter now let me say, from the start i'm very grateful for chewy. we've got beautiful now bug and nvidia right on our mantle courtesy of chewy and we love their dog toys, but the dogs rip them up. what i don't love is the quarter they reported last night the stock took it right on the kisser today and i have to say it had it coming chewy is spending more to get more customers and more aren't renewing subscriptions and they are still losing money gones of money with ruinous gross margin they must reverse pronto. something is wrong with a company that got its start in 2011, with ryan cohen is still losing money over a decade later. but declining gross margin and increased add spending and rising competition, i don't see how the story ends well for chewy shareholders there were analysts hinting this company could run out of money if it keeps spending like this

they have a decent balance sheet. now they say that it doesn't need to be put down. but considering the company lost hundreds of millions of dollars, free cash flow turned negative again last quarter, that is no longer the same position ever since the fed has declared war, that companies that make things and do stuff for aprofit are the ones people want to own. and even better if they return some of the profits to shareholders that is our mantra for the cnbc investing club and it should be your mantra. chewy is exactly the opposite. it sells other people's products and losing money in the process with no hope of profitable on the horizon. let alone dividend buybacks. and i often get calls about companies that are similar to chewy. especially on a day looike toda. wall street loved the particular space. now though the market is changed and there is zero patient for

those kind of story as we saw the nasdaq this whole session. on top of that, i think chewy might be in the cross-hairs of a new dynamic. these days people don't want to order something online if they could easily buy it in person. coming out the pandemic, we've created not just convenience but community. you could buy heavy bags of dog food, if you're craving human interest action you're more likely to show up at petco but they could offer something, veterinary services. i like to offer pett insurance but that is expensive but you could get more pets. petco does grooming and the dog baths too. now i know kmu chewy has smart management given the demand for all things pet related. but if they raren't turning a profit, i find it impossible to

recommend their stock in this environment. if you want to play the pets, i would much rather buy the stock of petco which has the added advantage of making a lot of money. i like to say there is always a bull market spare and i promise to find it for you right here on putin, it's the pentagon calling. things are worse than they are telling you. i'm shepard smith. this is "the news" on cnbc >> deceiving the dictator. the new u.s. intelligence that putin's inner circle is afraid to tell him of battlefield failures hiding from him impaction of sanctions. >> mr. putin has not been fully informed. >> and russian troops repositioning but not going home. >> the air strikes have not stopped, not at all. >> severe weather. heavy damage in arkans