Skip to main content

tv   Mad Money  CNBC  June 8, 2022 6:00pm-7:00pm EDT

6:00 pm
this thing working higher. might the markets rally a little bit in the quarter end, but into q 3 you want to sell >> smi, semiconductor not shaking my head. thanks for watching "fast money" tonight, everybody "mad money" on the west coast with jim 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 a special west coast edition of "mad money. welcome to cray mere ya. other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and put it in context. call me at
6:01 pm
1-800-743-cnbc or tweet me @jimcramer. we don't talk too much about stagflation. basically because it's a curse word in this business. stagflation means we have an economic slowdown while inflation is still raging. oh, man, the jimmy carter cocktail combination so toxic for the stock market that people will pretty much sell, sell, sell sell everything. that's what we saw today the dow shed 269 the s&p lost 1.8% and nasdaq dropped 0.73%. personally i don't believe that we're in for a bout of stagflation. the doctor being fed chief jay powell what i wanted to happen and what actually happened were very much at odds. the bears had the firm upper hand and they crushed the market. >> no, aaag! >> we're know we're in a bad
6:02 pm
news/good news situation we're on clock watch target told us they had too much inventory. we're not sure where they saw it but it will be sold at a lower price than they wanted that's fantastic for you and one of those things that can reverberate throughout the whole system given the scale of target sure enough this morning we got a number negative research reports arguing all retail will suffer because of what we heard from target although target's stock itself rallied which tells me even the most tarnished stocks can bottom in this environment while the consumer benefits for the promotional activity today we got mortgage applications what a number. it was spectacular for anyone who is hoping to see a decline in the overheated real estate market it fell to the largest in 22 years. in mortgage rates, while 5.4% rate is very low by historical standards it's extremely high versus where it was not that long ago when prospective home buyers were locking in mortgages
6:03 pm
at 3% and change rate. we know the market is red hot with sky high rents and shortage of homes but there could be a housing glut developing. that's what we want to see certainly what the fed wants to see, then there's this thing called a manheim used car index. thanks to the shortage of new cars and a work from home environment where people migrated away from the cities used cars have shot up in price. but these new numbers from this manheim index show those price increases have decelerated used cars were up 50% yore over year whatever tightness there may have been is ee have been waiting. household goods going down in price, yes mortgage rates and now might be tackling the last of the intractables used cars by the way are a major component of the cpi friday.
6:04 pm
3 for 3. only one problem and that is energy specifically gasoline. it refuses to go down. oil seems to have no ceiling that's where the stagflation fears come in. as long as they keep climbing hard to make the case for a soft landing. it reverberates throughout the wholeny and seems to be no stopping it and because it acts as a tax on the whole system we could have a slowdown coupled with inflation that is that jimmy carter stagflation remix. if oil would just go down i think the fed could declare victory but it's so high the unthinkable happened even though oil stocks went down another term of art we don't want demand destruction where the price of something goes up so high so fast that it sows the
6:05 pm
seeds of its own destruction oil stocks opened higher today then many dropped because, well, people are starting to realize demand will be curtailed and won't be able to make that much money. that doesn't necessary mean the price of crude will stop cl clicl climbing because it's a lack of supply problem it's not just oil. we saw a collapse in the freight companies. stocks of united parcel and fedex getting crushed. they can pass that on to customers via fuel surcharge but won't stop the demand destruction in this industry plus, nobody thinks oil can go in any direction except up the psychology so bad which is what it was like in the '70s when we first got acquainted with stagflation. we're not hostage to opec but a domestic industrial that is afraid to drill. putting it bluntly the democrats are the pro-environment party. the republicans are the pro-oil party. these guys know where the bread is buttered and it's not by joe
6:06 pm
biden. we have to believe maybe the president would rather go to saudi arabia and negotiate with them than talk to the american ceos who dominate the texan permian basin. our biggest basin where all the oil is we're aware of that. if the president would encourage them and offer assistance in building much needed pipelines i'm confident these company was do it. by the way, it would help national security because we get natural gas maybe to europe. but to get these executives to trust it, biden would have to cozy up or at least seem like he is to the oil industry and stop talking just about renewable energy, something that would infuriate his base like most politicians biden doesn't want to do it and made it more difficult to build new pipelines. the stuff coming out in the last few weeks is bad for the pipeline industry. i do believe biden could placate the oil industry growing more and more responsible about the environment. even as they are fossil fuel companies. but biden would have to throw
6:07 pm
many core supporters to the wolfs to make it happen. i think it's a good deal for the president if he can get us lower oil prices by 2024 unfortunately biden doesn't seem willing to do it that's a big reason why energy won't come down. of course, the other reason is the war in ukraine that's well beyond our control why don't we just throw up our hands and admit that oil won't stop going higher which means we're stuck with stagflation >> sell, sell, sell, sell. >> the fact that the oil stocks acted poorly tells me demand will slow as prices climb. that's why i don't necessarily see stagflation happening but sky high oil might translate into a more serious slowdown every time crude goes up so do the odds of a recession. we could talk ourselves into one by talking about the price of crude. down the street, again, i don't believe in the stagflation thesis, ideally we can get our way out with more supply not from the saudis or electric
6:08 pm
cars or from windmills or solar but the u.s., u.s. producers the bottom line, though, even if we don't get a lot more supply the price of oil will eventually come down simply from demand destruction. but if it's done that way we could be in for a miserable long hot summer i say we take calls. let's go to v.j. in south carolina >> caller: good evening, jim thanks for all your advice over the past several decades i am holding netflix stock since number of years. what are your thoughts about streaming services and specifically netflix >> so i think netflix -- >> caller: boo-yah. >> boo-yah and thanks for the kind words for a longtime follower i think netflix is fine. i'm not crazy about it i don't think it's bad the cheaper is disney because they got disney plus another streaming service. disney just has to get better at telling its own story.
6:09 pm
i would actually tell you that they're terrible at it let's go to pete in oillinois, pete >> caller: boo-yah i need your help here with a stock that you recommended for us for the investment club in early january. so it's fallen 20% to 30% from its high despite having some positive q1 earnings as well as several upgrades so is this just a wrong stock for this kind of market at a 30 p/e and deminnis income or is it time to buy to propel it, be ready to propel for when that goes up and what kind of a catalyst would it take to make that happen? the stock is danaher
6:10 pm
we really like it here and know they're in talks to make an acquisition more like science. it's been kept down because they do have pcr testing and people think that's going away. you buy danaher when it's down i learned that a long time ago we did it for the trust and doing it again i say buy. i am not deterred by the p/e because the growth rate is so spectacular. that's why we're doing it. i want to go to larry in arizona. larry. >> caller: jimmy, larry from whiskey row in prescott, arizona. san francisco has been good to you. maybe you can run into nancy and she can tell you how good things are in her town. dave & buster's. >> people are going out and want experiences. fabulous place for birthday
6:11 pm
parties. and i think the stock can go higher still because very low multiple and people are going back to dave & buster's. look, even if we don't get a lot more supply the price of oil will eventually come down but it's probably going to come down from demand destruction. on "mad money," snowflake has had a tough run but could a blizzard be brewing for the cloud stock? i'm checking in with the ceo then forecasts surprising revenue decline. could cisco's earnings drop be a sign of what to come or a classic buy opportunity. talking to the company's top brass. and okta, does it have what it takes to defend itself from the bears. i have the exclusive with the ceo. stay with cramer coming at you from san francisco ♪ >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer,
6:12 pm
#madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
6:13 pm
you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire
6:14 pm
dad! a dinosaur! it's just a movie. matching your job description. no dad, a real dinosaur! show doorbell camera. the new xfinity video doorbell works with your xfinity home system for real-time alerts no matter what's at the door. get off the car... it's a lease! jurassic world dominion, in theaters june 10th. rule your home security with xfinity home.
6:15 pm
a couple weeks ago a funny thing happened with snowflake. they came public with a bang in 020, one of the largest in recent history and clear atop an bottom line beat if we got an update like that a month ago, snowflake's stock
6:16 pm
would have been obliterated. shares initially tumbled 15% at their lows the next day but then they finished down 4.5% as investors realized the business is strong and worth sticking with it. that's how powerful snowflake's secular gross story is since then it steadily worked its way higher i think that makes sense but does that mean it's come down to the point where the risks are baked in or could we be looking at more downside as the slowing economy takes its toll on all stocks earlier today we got a chance to sit down with frank slootman take a look. frank, you have a revolutionary model. they don't understand the idea of the data being important because of snowflake and go to the data instead of the data coming to you. will you please explain what it
6:17 pm
means? it's a consistent theme throughout every bit of your statements. >> yeah, data has become incredibly silo since the beginning of computing because we send it to the work and can't bring it to the data that's siloing or bunkering of data a huge problem in the world of data since data science relies on building models, fwlendzing all kinds of different data that describe relationships and then predict outcomes or esults, right? super important to a lot of the data to come together and work able to execute against it you need to be an outstanding workload executer which we are at snowflake otherwise people say this doesn't work i'll bring the data to something else that can do it. >> people don't seem to understand you're not trying to get companies to sell better you're trying to get companies to do thins they do much better. drug companies take 12 years to develop a drug somehow you've been able to cut
6:18 pm
that to nine what happens that you can do that >> well, it has to do with compressing cycles and being able to do things concurrently in parallel versus in sequence, okay so it's -- by the way, the other thing is the whole notion of data sharing drug development doesn't happen in isolation there's universities involved and partners involved. all these different parties. >> how do you know this? that's true. >> because nine out of ten of my conversations are with customers about their business, not ours so they tell me. >> now, you've been around that's not always been the case and it's not the way it is out here >> no, not at all. >> it's really about you, the value proposition you bring not trying to figure out what they need >> yeah, we call this mission alignment meaning that, you know, we are dialing into the mission of our enterprises and institutions it's their business, their problem, their challenges and not ours >> speaking about their problems, their challenges, i think the people who bid your stock up to 400, they have their
6:19 pm
problems their challenges because what you've done is far exceeding your plan but you never said, you know what, my stock is worth 500, not 400 you have given a long-term guidance and that would be extraordinary if you get there >> yeah. it is. and we like people to sort of open the aperture and look at the journey over a period of time you know, if you have a 90-day horizon there's probably not many stocks you can own in that time frame. >> but you're talking about being a multibillion dolla company by 2029. i want to see if you blink when i say 10 billion, it is like you said well, yes or no. that's you. >> oh, yeah. >> that's frank slootman some don't know he sleeps on cots, stays in the office, he gets the job done, he's unrelenting. you are also a truth -- a truth teller the environment is rocky you actually and your cfo
6:20 pm
admitted it on a cull which then caught all these guys, oh, my god, frank is worried. that's not what you were saying. >> i don't think the environment is that rocky from our vantage point. look, you turn on the news feed it's incredible. you know, high anxiety, adrenaline and all that sort of thing, our world from when we're talking to customers is far more subdued, sober, normal doing multiyear large contracts. they're not falling over a cliff. >> also, have you a retention rate i didn't think was physically possible. 174% retention rate. that would mean not only do they stay but they just keep taking and taking and taking. that's the highest retention rate i've ever heard what is the secret. >> the consumption model there's no lid on it this he can grow as much as they see fit. >> they use it when they need it but someone could say they could turn you off if they're in trouble. so why not just get in a long-term contract so they're stuck with you. >> they have long-term contracts. it is exactly the same as the
6:21 pm
other mold it's not equal amounts every month. it's based on consumption. every dollar becomes revenue over -- >> if you had to redo everything isn't that how everyone should do it? >> i used to run a company and always felt badly, customers would buy rights whether they use it or not. this is much more fair. >> it turns out they discovered they need you, they know how to work it. you have a customer, the data science company that is with kroger and i don't think people -- i think they're the smartest guys in the world they just are about trying to predict what people want but they come to you and obviously need you to try to predict better, try to figure out what kroger, the largest chain. your numbers for what you've done with them, have to be significant because that company was not doing the numbers before they werealigned with you. >> yes, supply chain management and obviously during the
6:22 pm
pandemic was an enormous upset now inflation is becoming a huge upset to supply chain management we have customers like kraft heinz and their whole thing is how do we get the right product to the right place at the right time creating safe inventory levels, used to be that from day to day, an inch to the left or right we can through anecdotal operation sort of get it right now you can be so incredibly wrong from one week to the next. >> are there major retail that's have screwed up because they're not customers? >> whether they screwed up, the environment is such right now they need to be able to parse their reality through data >> are you -- i didn't think you were going to come back after what you created you've been -- you're a guy that comes in and takes a company, you said when service went from x to y, you were done. you were finished but you're back you've written a book. you're back. i mean i thought you were on the
6:23 pm
beach somewhere. i guess frank doesn't go to the beach. >> retirement isn't as great. >> what did you do when you got up and retired, i want to get back in action how many days before you realized you couldn't be done? >> you know, quite honestly, i never talked to another company. snowflake hit me over the head and i think i'm ready and three, four years in. >> i want younger people to realize that you were excited but you didn't know why you were excited. you should be excited because this is a company. we hear the term transformative. that's not what it's about this company takes a really good company and allows the people to become great and that's what no other company i know does. frank sleootman, chairman and co of snowflake you are one of i kind. thank you for being on "mad money." >> announcer: coming up, when a bankable ceo is faced with a horror show, you go to the source cramer confides with a venerable
6:24 pm
brass of cisco next. tha venerable brass of cisco next. ea venerable brass of cisco next. venerable brass of cisco next. if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this.
6:25 pm
oh, you brought your luggage to the airport. that's adorable. with shipgo shipping your luggage before you fly you'll never have to wait around here again. like ever. that can't be comfortable though. shipgo.com the smart, fast, easy way to travel. when hurting feet make you want to stop, it's dr. scholl's time. our custom fit orthotics use foot mapping technology to give you personalized support, for all-day pain relief. find your relief in store or online.
6:26 pm
6:27 pm
6:28 pm
don't take it from my. right here in the studio good to see you. so you made it very clear. demand is not a question but the supply of product and getting to people has there been any changes >> well, i think that first of all, thanks for having me here today. great to see you on the west coast. >> the china thing was pretty straightforward. the issue is your call, we were the first company that experienced a full month of april and saw a lot of our peers come out and had the same issues and it is temporary and seeing you see a lot of the news and starting to feel the fact they've opened up some and we'll see that begin to flow through i think that's a temporary issue. there's a few other. we're still cautious but a few other positive signs we're
6:29 pm
beginning to see in the supply chain side of things which hopefully will continue to improve. >> factories opening or other sourcing because you always had a very good supply chain group of people. >> yeah, they were just rated number one in the world for the third year in a row which they accept very sumably because they've had such a challenge and we all have. i think there's a tu things going on demand in certain parts that is freeing up in other areas of the market pcs. >> right, right. >> we all know >> so you're seeing some components that are becoming available because of that. some of the stuff we all kind of go after together. i feel as you and i have talked about, i remain fairly optimistic and not confused things could get rocky but i feel good about the markets we're participating in and technology to our customers.
6:30 pm
so we'll keep executing. you're getting real orders those are the best customers in the world. i don't believe theirs has slowed one bit and now it's a significant growth engine for us that's grown -- we said it grew 100% over the four quarters and billions of dollars. this is not a $100 million business it's big and i think it proves that the innovation our teams have delivered and these customers care deeply about performance but also care about power. power consumption which is really important and our teams have focused on that and feel good about where we are and the other thing i think is important is even though there's a tough time at the low end we'll deliver record eps >> nobody cared.
6:31 pm
i was talking the next day and said, hey, look, i see good things here but people didn't listen. >> well, that's the quarter to quarter nature of how people think these days and so -- >> it dot me down. digitization if i can get down everybody can get down. >> on this march to get back in the cloud players was -- that's been a 6 1/2-year effort, right? this stuff -- i mean 90 day, 09 day, 90 days, they come and go quarters come and go but, you know, we have to remain focused on the stuff it takes a wild to build the products we deliver. >> you have a ton of cash. some of the stocks are finally coming down, the valuations seem interesting, but there's still expensive relative to whether they're making money the p./e.s are expensive are there things out there that could be interesting for you that would really improve your business >> well, there have always been things out there that looked interesting to us. somebody asked as our m&a has
6:32 pm
changed. their openness has we always have 15, 20, 30 companies we're floating and watching and looking at, doesn't mean we think they're all great fits but want to understand more about and hopefully there will be opportunities that will come about at more reasonable valuations the thing that i think we all have to remember is a lot of founders are young and have never seen a downturn. they thought what they were experiencing is the way it is so, you know, now we may have a little more realistic view and some will have to get their head around the fact that this may be more of a permanent change or a longer lasting change than perhaps what they thought. >> the last time we had a big one ibm bought red hat broadcom this time, vmware some are interested. some are valued at levels you have to be >> there's absolutely a lot of opportunity out there. >> okay, but at the same time, chuck, the gloom is palpable you're on the board of blackrock
6:33 pm
which is a great company, larry fink the best -- one of the greatest in the world when you talk, is anybody saying, you know what, this is a sgraut opportunity and russia will solve ukraine china is going to join the council of nations and this is the moment for the u.s.? does anybody say stuff like that or too polyannaish >> you know, the reality is there are a lot of complications in the world i had my board meeting and we talked about a lot i think those are things that are going to stay with us. but, you know, i believe that the world has been so complicated for the last decade and we've had geopolitical tensions on a constant basis, trade wars, pandemics, social justice reckonings and inflation and i think that customers in the enterprise space, the consumer is a different issue. enterprise space, this is just kind of normal for them and they -- i don't think they
6:34 pm
overreact like they might have 15 years ago where you cut off spending because they realize that six months or 12 months from now the need for the infrastructure or technology modernization, they realize that is still going to be there now, could they delay a little bit, yes i don't get the sense there's going to be an extended lull because customers are concerned about their competition spending ahead of them and creating differentiation. so i think that it's certainly a complicated world but that's just the world we live in. >> at 13 times earnings with a 3% yield plus, i got to tell you we're sticking with it with our travel trust makes too much sense. >> thank you, jim. >> that's cisco's chaim and ceo chuck robbins. "mad money" is back after the break. >> announcer: coming up, it's been anything but high octane for this cloud player? is there relief in sight for okta find out next.
6:35 pm
at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow.
6:36 pm
♪ one thing leads to another, yeah, yeah ♪ (ted) after talking and texting for years, we got married... so you can have more success for the family plan. (jane) and then we really expanded our family... for the wireless savings. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month. - i'll buy stocks on margin i don't even know what that is - sure sounds fancy! - invest! (buzzer) - [narrator] investing is not a game borrowing money to invest can be very risky
6:37 pm
learn more at investor.gov before you invest, investor.gov
6:38 pm
>> announcer: a stock cut in half a sector in turmoil. with rate hikes driving big money consumers away from expensive cloud products can this company okta have a strategy that rewards investors? while we're out here in san francisco, surveying the devastation in tech i notice that security is one of the few areas people are optimistic about but not every cybersecurity stock has hung in there. the smaller ones not yet profitable have been crushed alongside everything else. okta, the stock plunged 74% from its peak last year to its lows two weeks ago, sinking to $77 because this market seems to have no mercy for companies losing money if they have great
6:39 pm
revenue growth they've made a copback back to 102% 2% run today and they reported a clean raise in values last week. so is it safe to circle back let's talk to todd mckinnon to learn about where his company is headed good to see you in person. >> great to be here on the set in person. >> it's great. look, there's a great conundrum i have you had a top line beat. your sales are up 65% and i look at that and i think what more can people want from you >> there was a solid start to the year we're happy with results and what we see in the market, there's lots of turmoil and talk about macro concern and fears about recession. what we see in the market is fundamentals driving our business consistent for many, many years they need to get the right technologies and right platforms to employees and enable them to
6:40 pm
work remotely in this new work environment and want to build new products and services, digital products and services, websites, mobile apps to drive revenue and create new customers and make sure to keep their own company different stated from upstart competitors and at the center is identity and we're the leading neutral identity platform so we're in a good spot. >> work from home means still one more way to borrow within the organization how is it possible that people work from home with sensitive data >> the key is something they call zero trust. it means in the old world when everyone was in the office and all of your applications and platforms were in your data center you trusted the perimeters of the office and data center perimeter. now this this new world. don't trust everything make sure every log-y, every request is checked based who the person is to access the resources they're trying to access and that it's
6:41 pm
continuously checked and enable you to operate in this flexitarianable world where you can work from anywhere but have rock solid security and identity is at the center that's where it starts. >> the acquisition you made further along this process >> the ago which season we closed helps us on the other part it has two parts one is workforce identity about securely logging in employees, remote work then customer identity which is about helping our customers' customers login to their mobile apps jetblue.com. you login to that website using okta we help them make that experience easy and low friction and highly secure. >> now, something happened that was incredible and i told people this and don't bet against todd. you yourself were hacked but it was a hack that frankly was very hard to understand but i know that people got in. you were very forthcoming. you just said the instant you discovered it. a lot of people said you would
6:42 pm
lose customers this was the strongest customer retention i've seen you have and greatest new customers regardless of what anybody thought your loss of trust continental exist. you checked with 400 customers immediately. tell us what it was like to hear the news, break the news and talk to clients and win over even more clients. >> every company has become a technology company and we're all under attack by hackers. there's so much money to be gained so much potential damage they can do they're out there trying to at attack all of us and what happened with okta back in march we use a company for support we have contract support engineers and broke into this company and they basically in a digital sense were able to sit over the shoulder of a couple of the support reps and watch what they were doing and watch as those support reps were interacting and supporting okta's customer and could even be beyond the shoulder metaphorically speaking reach up and hit the keyboard on behalf of the support engineer so it was -- okta made a mistake
6:43 pm
we allowed our product to be supported from an insecure environment. and that was really the big learning and the bigger picture here is that customers, identity is so critical it's a part of the kri cal infrastructure any time there is any kind of hack whether to a third party, any kind of talk of a breach there is a lot of concerns in the customer base because this is about trust so the first thing we did is we had these conversations and talked to over a thousand customers, face-to-face over video and had these conversations. i talked to over 400 and got a ton of feedback. how to make sure our support environment was not insecure to make sure we communicate better and reinstill the trust and at the end of the day i think we've been able to do that. >> since then you've won over what i think would be the best trust, shipping, a major pharmaceutical company, one of the top 50 in the country and a huge number of federal businesses whatever you did people understood because those are the accounts that i think would not go with you if you felt it was a
6:44 pm
substantive situation that was your fault. >> they want someone that will help them provide this foundational platform to move their businesses forward and i would hate to say this is positive but if there is something positive that comes out of it they get to see how our company acts under pressure and have their back when times are tough and i think we showed that. >> one last question, your opportunity is so big that i actually understand why profitability isn't your number one concern yet. but yet you've also said you've got to make it a concern is that the stock market that's proving you have to do that? >> we want to -- first of all, we want to help our customers and help them and enable them to adopt any technology as you mentioned that opportunity is broad and very horizontal so we have to invest to grow. we're committed to making this a $4 billion a year company by fiscal year '26 so that's coming up quickly we have to invest to grow to that scale and we've always done it with a balance of efficiency
6:45 pm
and always made sure our growth rate and our cash flow generation was balanced towards that goal so we think we're drawing the right balance to capture the market opportunity and over time you'll see a very highly scaled profitable company that's going to help customers and capitalize on this. >> we talked about it on the show saying, look, this is what you're looking for as a company that had something that went wrong and actually gained more business, but does have so much opportunity, you do have to balance it but you're balancing it in a smart, consistent way. i want to thank todd mckinnon, co-founder, chairman and founder of okta which we have backed the whole way since it went public >> announcer: just chill out. >> chill master j. >> the chillman is in the house he's happy. >> announcer: "the lightning round" is coming up when "mad money" returns
6:46 pm
♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪
6:47 pm
6:48 pm
6:49 pm
>> announcer: "lightning round" sponsored by td ameritrade it is time time for "the lightning round. [ buzzer ] >> then "the lightning round" is over are you ready skee-daddy brad in texas. brad >> caller: hey, cramer, i bought energy at $37 as an earnings play and looking at the chart. with everything going on natural gas, the weather and increase of energy prices in texas, what do you think about nrg at these levels >> i still like it >> buy, buy, buy >> i'm a buyer of it craig in kentucky. craig. >> caller: bluegrass boo-yah to you, jim. >> excellent kind of boo-yah frankly.
6:50 pm
what's going on? >> caller: well, i want to give you two things, one for doing such a great job of teaching all of us home gamers about your experience in investing and so forth. >> thank you. >> caller: and entertaining and also like to give you -- i used to live here at churchill downs. thanks for getting a lightning round. >> how can i help? >> caller: i have a question about heinz applications international. saic. >> excellent consulting company, one i've always liked. maybe i would wait a little. a very good company. how about george in texas. george >> caller: captain cramer, thanks for skippering the "s.s. cramerica" through the jungle. >> whchamp, what's up.
6:51 pm
>> caller: want to send a shoutout to my dad in mt. vern anyone loves your show, never misses it 13 bagger, 13% in capital management, nly, annaly. >> i'm not going to recommend that stock but thank you to you and to your father those are kind comments. now we go to russell in nevada russell. >> caller: boo-yah, jimmy. >> chillman in the house, what's happening? >> caller: your thoughts on srad >> i do not know that company. i regret to say that i do not know srad. i'd like to go to dylan in massachusetts. dylan. dylan? dylan, can you -- you know what, i'm on the fence with dylan.
6:52 pm
you are know what, i'll go to dylan in -- somewhere, dylan massachusetts. dylan. >> caller: hey >> dave from illinois. dave, what's up? >> caller: dr. cramer, welcome back to one market hope you're having fun. >> i love it >> caller: jim, it's been a while since you've spoken at length about solar solutions provider enphase energy. in their last two reported quarters they've beat revenue and earnings although not cheap at 65 times forward p/e. this $28 billion company makes money up some 30% in one month. >> true, but, dave, i've got to tell you you correctly hit the fact it is too expensive and also a football -- goes up and down not for you and me we have better stocks, many better stocks in the fire and that, ladies and gentlemen, is the conclusion of "the lightning
6:53 pm
round. [ buzzer ] >> announcer: "the lightning round" is sponsored by td ameritrade coming up, is digitize or die a concept in travel itself cramer stokes out the real world impact of a global downturn next ♪
6:54 pm
6:55 pm
6:56 pm
♪ there's a huge undercurrent out here in silicon valley you know what, it's really starting to bottom i'm talking about the idea that digitization is natural and any business that doesn't get with the program will be left behind. now, that undercurrent isn't wrong. of course, companies have to digitize and of course the ones that don't will be left behind but the implication might be wrong. doesn't necessarily mean you can't have a ton of money by helping other businesses go digital. but what if the economy gets so weak that there are so few new businesses being created demand drops off? what if companies run out of money to digitize. what if they run out of money, period what if the ipo market remains closed make it much more difficult for
6:57 pm
newer enterprises to raise capital. digitization and these themes can go into hibernation when the economy turns ugly back in the '90s when i started the street.com, there were a tremendous number of facilitators who gave you everything you needed to develop a killer website including rudimentary security they became public and share stocks soared to heights i couldn't believe at the time many of their clients couldn't expand without them. it felt like there were four or five potential new clients for these guys coming public every single week. we were in the dotcom era so naturally a great time to be in the internet business. then the ipo market just collapsed. >> no, no, aagh! >> the dotcoms stopped being able to raise money so the facilitators collapsed with them many of these service companies disappeared overnight. now, this time isn't quite the
6:58 pm
same as the dotcom crash the ceos i've interviewed are veterans who have seen it all and won't come on the air and wring their hands about how potential clients might be struggling to stay in business their job is to be as great as possible and aid as many as they can. they're good at their jobs if the economy goes no a real rescission, big stagflation tailspin the pool of potential clients will shrink. the digitizers can make as much money if their customers are strapped for cash or aren't even a glint of an eye. but i think that is largely because they were pushed too high by eager buyers last year who knew nothing about the underlying enterprised, at least often, they didn't go to $400 because big money managers were willing to pay 100 times sales for the stock, sales, not earnings snowflake became a stock that was bought because they thought it would go higher
6:59 pm
by late last month the stock fell to the 120s, a few bucks above his ipo price and momentum chasers got blown out. but credit to snowflake's management on the conference call a week and a half ago the cfo mentioned things could get rocky of course, some of the brokerage houses penned research and questioned whether they were trying to mass their own weakness i think they were being honest but no good deed goes unpunished i'm not trying to scare you away from digitization stocks but as snowflake implied there are real consequences from a recession and frozen ipo market. one is that the digitization industry could face shortfalls because there won't be enough new clients. many existing ones won't have enough money and too many competitors fighting perhaps over a shrinking pie in short you can't justify owning these unless you beat
7:00 pm
inflation without doing much to more to damage the economy i wouldn't want to bank on it by owning too many enterprise service companies. i like to say there's always a bull market somewhere. i promise to find it right here on for you o on "mad money" theh starts now >> the victims of uvalde testify in washington. i'm shepard smith. this is the news on cnbc >> words can't describe how hard it is to bury a child. >> the victims tell their stories and call for action on guns >> we seek red flag laws, stronger background checks >> where negotiations stand on capitol hill >> and an armed man arrested near justice brett kavanaugh's home police said they told him he wanted to kill the justice over how he would rule on second amendmen

126 Views

info Stream Only

Uploaded by TV Archive on