and lockheed martin has been on fire, tim seymour. >> yes thank you. >> it is great to have you guys. we'll see you guys if the morning with am ex and schlumberger and verizon we'll see how snap opens thanks for watching "fast." "fa. "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer! welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you a little money my job is not just to entertain but to educate, teach and talk about days like today where it looked great and then just gives it all up. so call me at 1-800-743-cnbc or feet yes @jimcramer. when you throw enough negatives

at this market you get a positive chemical companies see a slowing plastics business and the railroads have declining cargos. the fed may just give us a rate hike stay of execution that's why the average didn't get hit particularly hard today in the face of some truly bad quarters dow slipping 90 points s&p declining .80% nasdaq losing .61% there's so little demand for semiconductors, for instance, that the chipmakers are furiously cutting orders for capital equipment, shaving off about $20 billion worth of wafer fabrication machinery in light speed time and once that capacity gets taken away, we'll eventually have a dearth of chips and that's how the semis bottom. that was one of today's narratives at the same time the beaten-down ibm just gave us an incredibly bullish update on its hybrid cloud strategy giving new life to everything that goes into the cloud or web services.

and that becomes one of the most despised groups out of there >> the house of pain >> all of these things happened in the last 24 hours and when taken together they gave hope to the bulls, who think the fed may pause with the next 75 basis point hike because things have gotten precarious for vast swaths of the economy i'm not sure i still think they'll hit us with two of them but understand you can build a thesis from what i'm saying that they'll only hit us with one of them now, you could argue this quarter the markets went higher because interest rates were stable but they weren't today interest rates were higher she went up. you can see this morning's jobless claims skyrocketed but they went down no fed official suddenly changed their tune they were their usual hawkish selves calling for endless rake heights like endless love. that dynamite tune sung by the dynamic duo of diana ross and lionel richie. while we finished the day down stocks were up in the morn sxig think that temporary rally was because we're finally getting undeniable evidence that businesses are being hurt by the

fed rate hikes and believe it or not, that's what we're looking for. the fed's not going to stop tightening until we see real pain >> that was easy >> of course you should never underestimate the market's ability to confuse us and lead us astray. i cobbled together the theory i just gave you while working on the investing club's morning meeting at 10:20 with jeff marks, our research director i was being tortured at the moment by the fact that lamb research, the gigantic semiconductor equipment maker, could see its stock plummet $15 or the possibility of losing $2 billion worth of orders from china, then rally $37 on the same piece of news i expounded upon it, trying to rationalize the move then i figured it out. the logic of the wafer fabrication business is always backwards. when lam's getting big orders people anticipate that the cycle is peaking you know what they do when the cycle's peaking? >> sell sell sell sell sell! >> once the orders plummet the bargain hunters come in anticipating a new cycle once

chips are in short sfupply agai. >> all aboard! >> that's lam. it's also why micron keeps climbing because the less their competitors buy the more likely they get some pricing power in the not too distant future the inventories get washed out and it's happening faster than we think there's too much inventory in the entire semiconductor supply chain including from cramer faves nvidia and amd, and i still like them. but if lam's having more than $2 billion canceled and a lot of that of course is because of china, of the tension with china, that means the existing inventory will be eaten up faster than you and i think. i couldn't figure out the rally in the cloud stocks, which have been savaged of late, at least not until i read the ibm conference call where they talked about how well their hybrid cloud strategy's going on more on that later for now what matters is that it's great news for both microsoft's azure business and amazon web services, which are critical to the entire tech food chain. they'd just been slagd the day before by a different piece of

research this kind of process doesn't always work immediately. not all bad news is being treated as good news the trucking and train companies are doing badly and their stocks got slammed. but i think we'll eventually see this logic play out as we get more disappointments from the transports the important thing is freight rates are coming down. which means the fed's making progress in its war on inflation. and that by the way is the watch-word of this moment. progress ♪ hallelujah ♪ until this week we hadn't seen all that much progress, if any, from the fed's tightening cycle. the relentless rate hikes have produced the highest mortgage rates in 22 years but it still isn't putting as much of a dent in the housing market as you think. although some prospective home buyers are indeed pulling back, others have sufshted with cash and are ready to buy when they want to. still, though, now that mortgage rates have soared, there will eventually be progress on that front too. i think we'll soon see potential sellers start breaking price if only to make their houses more

affordable and sky-high rates. that would be huge for the fed that's a major victory for a team that is hungering for a win. we haven't seen wages cool down at the trucking companies yet. however, as business slows, nobody going to be talking about a trucker shortage another win for the fed as inflation is indeed their true nemesis. now, i want to step back and deal with the reality rft stock market for a moment. because it's very painful for i allot of people. i see it in my twitter mentions. people are very angry at me. it's really pretty amazing look, i'm out here doing my best and that doesn't necessarily mean i get it right. but the anger may be misdirected. as long as the fed remains in rate hike mode, owning most stocks is going to be an uphill battle and if it's too hard for you should sell them i mean that. see, there's still way too much hope in the market hope that companies will, i don't know, somehow be unscathed by the fed, make it to the other side with earnings intact. just tonight snap reported and delivered still one more disappointment that is taking down all the internet stocks

including some profitable very good companies they'll be tomorrow's yellow stain incident to kaine mutiny the only ones that can pull it off are the classic recessionproof stocks like procter & gamble and yonce & johnson. the fact those are going down is a gift these companies are already seeing their input costs start to come down it's coming down big thanks to the fed's war on inflation they are well off their highs and have nothing to do with the likes of the snaps but shouldn't have to be disastrous just these pieces of paper created during an insane period where everybody thought that everything was a company including things that aren't it's possible some high growth stocks reach the equivalent of value status like salesforce, which is joining up with starboard value. notice i say joining up and not fighting activist hedge fund to cut costs. some like the aforementioned snap i just don't know where the value proposition kicks in unfortunately, there are still way too many areas where the fed is losing. for instance, today we learned that the average household is spending $445 per month more

than last year for pretty much the same products. that is unacceptable to you, to me, and to the fed but rolling back those price increases is easier said than done consider the oils. they won't give up their in inflated prices especially now that we know the president intends to buy back what has been sold from the strategic petroleum reserve when oil hits somewhere between 67 and 72. all right, i've got to tell you i'm not a political guy, but that's crazy if i were president and i wanted my party to stay in power, i wouldn't put a floor under the price of gasoline. meanwhile, most industrials haven't been truly hit yet same goes for the restaurants while the expensive money losing tech stocks have all been wrecked there could be more pain to come because there's no reason they can't go lower same goes with nearly everything that came public in the past few years, especially the junk health cares or the electric vehicle plays. fed wants bitcoin smashed. it wants ethereum slain. get that in your heads they want the supermarkets torn asunder with rollbacks and all sorts of food and sunday rirz. and yes, they do want your stock portfolio lower so you don't

have as much purchasing power. it won't happen overnight. which is why all these fed officials can't stop, won't stop bottom line, we're now finally getting progress in the war on inflation. progress is this market's most important product. hey, why don't we go to derek to start the questions in north carolina derek. >> caller: hey, jim cramer how are you doing today? >> jimmy chill is doing fine how about you? >> caller: pretty good greetings from charlotte, the queen city >> i always thought of it as the queen city dave tepper tried to change that team go ahead he was my boss he's the greatest. go ahead, i'm sorry. needless outburst. >> caller: i'm looking at best buy. they have a solid two days of gains. then ever khor did their downgrade and they're having their two days, heading toward three days of losses the current dividend yield is like 5.52, higher than the market bottom 25% and it's been relatively stable and increasing for the past ten years

and of course today they finished down 1.4 at 62.85 so with that being said, do you think i should move on this one? >> okay, look, i think cory barry, whom i always welcome on the show, is doing a phenomenal job. when you think that jensen wong, who is the ceo of the amazing nvidia, there is a new gaming cycle coming they have a terrific tech team that is really good for your i.t. at home i am a believer in covery barry. will they hate me on twitter if it goes down 50 cents? pound sand can i sbaepeak to john in new jersey >> caller: hello, jim, this is john and i'm a first-time caller but a 15-year member of your clubs >> yes now, this is what i want ♪ hallelujah ♪ this man knows i'm trying to teach. it is hard i go home at night, my wife says why are you having that mezcal i say because it tastes good but -- >> caller: well, it's all worth it to me because i've learned so much from you. and even something from your mother when she once said we should sometimes take our

winnings off the table and go buy a nice cashmere sweater. >> jimmy, let's get out of the casino and go buy a cashmere sweater. you betcha >> caller: so in january i took her advice i took half my profits and i went and bought a nice house on my lake. and it's all thanks to you >> there you go. how much do you make in your checking account how much do you make going to the movies how much money do you make going to the movies? >> caller: bubkes. >> right >> caller: so thank you, jim my question, i own the club stock eli lilly for its weight loss drug mangioro and the other great drugs it has in its pipeline but i'm wondering about another company. there's two, actually, that are making weight loss drugs one is novo nordisk. and i'm wondering if we should increate our weighting in the weight loss opportunity. >> i don't like other aspects of novo's business. and remember, they don't have

the approval port weight loss. i think it's going to get it i'm on lyrica. i own lyrica and it gains weight, i need this drug to take the weight off. thank you for being a member of the club thank you for understanding what the heck we really do, which is teach. because that's what i'd be doing if i weren't doing the club. but there were only be like 300 people we're finally get progress in the war on inflation and progress is this market's most important product. big blue flashed some big green after earnings so what should you make of ibm now? i'll give you my take. then fedex flashed a warning last quarter is it time to reevaluate the transports i'm thinking of the sector and could bowlero be a strike for your portfolio i'm checking in with the ceo to get a sense of where the company's headed so 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 e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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last night ibm reported one of the biggest upside surprises of the entire earnings season. at least so far. really took me by surprise especially as this stock was the fifth worst performer in the dow for the third quarter. i have had admittedly a soft spot for ibm for years i want them to do well i do i want them to come back and win. the story got even better when they spun off their slower growing legacy business as kindreally roughly a year ago. the stock was a quiet winner the s&p 500 lost a fifth of its

value. but as we started getting more worried about a worldwide recession ibm's shares got you crushed. last night, though, they beat expectations handily, even raised their full-year forecast to the revenue side. despite being up against some serious currency headwinds shah tha have crippled most global technology companies including ones that are widely considered better operators than ibm. what makes this more impressive for me, though, is that wall street actually cared, which is why the stock can really rally up nearly 5% so can ibm finally buck the downtrend? i've got to tell you, if money managers are willing to circle back to this one, there's a lot to like here, especially since the stock sells for a mere 13 times next year's earnings estimates and it has a bountiful 5.1% yield hard to find both. remember, the -- they spun off their managed infrastructure business which was in drecline a kindrel. in order to focus on analytics, artificial intelligence. the managed infrastructure

business was like an anvil round the neck of the old ibm preventing it from posting positive sales growth and obscuring all the good stuff that was happening in other divisions. now, there was one big concern going into the break-up. we wanted to know if ibm could maintain that gigantic dividend. we figured the payout would be split between both companies but roughly a year ago ibm said they'd keep paying the same dividend even without kyndryl. that was a huge positive although it's also caused some worries because nobody's sure if the dividend's still safe. i'm confident after last night but i know others remain skeptical. for the first couple quarters after the break-up ibm delivered some encouraging numbers including 11% revenuegrowth on a constant currency basis. that was back in april very different from the old ibm which was almost to thely stagnant weighed down by the old mainframe business when they reported this story did get more complicated while the company post a top and bottom line beat with 16% revenue growth on a constant currency basis they didn't raise their full-year forecast that surprised people. instead management said to

expect more pain from the insanely strong dollar which means all of their overseas sales translated into fewer greenbacks ibm talked about a 6% currency headwind and wall street red read that as a de facto revenue guide down management also trimmed their free cash flow forecast. nobody liked that. honestly it wasn't that bad but the stock got slammed in response and it just kept going down as the market turned ugly again. before the july quarter ibm was trading at just under 140. by last week it had fallen all the way to $115 which is a major decline for such a large company. that was the context going into last night's results this time ibm posted a big revenue beat with sales up 6% although it would have been 15% on a constant currency basis, in other words, had the dollar not been that strong their earnings came in a couple cents ahead of expectation buzz it wasn't perfect. the pretext margin came in pretty light still when you drill down into each of ibm's units they're pretty much firing on all cylinders. their cell phone business was up

on a constant currency business. great numbers from red hat that was can't they bought not that long ago i like that much transaction processing their consulting business was up 15%. their infrastructure business which includes hybrid cloud infrastructure was up 23%. if not for their ridiculously strong dollar this would have been a stunning quarter. even with the foreign exchange issue, though, it was pretty darn good. and that strength is everywhere including europe and asia. more important, ibm raised its full-year revenue growth forecast talking about constant currency revenue growth coming in at the mid-single digit number they previously predicted. however, if there was one area that was truly ugly, let's say confusing, it was the cash flow. ibm's free cash flow came in at 752 million. now, analysts were looking for more than $3.4 billion that's a major discrepancy i'm not sweating it, though. because management reiterated their full-year free cash flow forecast how's that possible? because from a cash perspective this year was very backloaded for them which basically may be the biggest positive in your -- management expected to generate

roughly $6 billion of free cash flow in the fourth quarter thanks to some major tailwinds coming up. according to ibm the analysts basically got the timing of these cash inflows wrong if they can pull this off, that would be a big positive. although if they can't that would be pretty damaging to the company's credibility. i bet they can do it but i can tell you if they don't this thing is going right back to 115. on top of that ceo arvin krishna had a lot of encouraging stuff to say on the conference call. for example, ibm's really doubled down on the hybrid cloud business and that's increasingly becoming the preferred cloud setup for most businesses. they like to have more than one cloud system poll showing 77% of businesses have already adopted hybrid cloud. he says they're winning big business here. pretty major accounts. bank of america, samsung i also like what krishna told us about artificial intelligence. he explained that they've got four major use cases for a.i human interaction, automating information technology processes, automating business portfolios and analytics it's a great way for companies

or government agencies to save money on labor, which keeps getting more and more expensive by the day as we know in this country. put it all together ibm still has plenty of room for improvement. this quarter was a big step forward for them and it was a major win for the bulls. remember, ibm went through that whole kyndryl spinoff in order to become a growth company again and that's now what they are they've got growth in spades that's extra positive because going into the quarter there was so much doom and gloom about how they were looking at a serious slowdown in the price of tech. ibm's not seeing it. not at all the one thing that really is killing them, though, as i mentioned now three times, is the strong dollar. as they get roughly 60% of their sales from overseas. but if the dollar ever peaks holy cow, will these guys clean up bottom line, even after ibm's nearly 5% rally today the stock's still down substantially "vice" where it was trading a few months ago i'm optimistic including that big dividend, it is backed up by plenty of cash but keep in mind this remains a trust but verify situation going

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got to admit i love earnings season not just because we get to find out more about individual companies but because there's so much to learn about the state of the broader economy. for example, this week we've been watching the transports we've heard from a bunch of trucking and railroad companies. they're not boring people. they're very interesting reports. and they're not actually painting a bright picture. tuesday it was the return of j.b. hunt. that's a trucking company. which could have been a lot worse frankly. then last night it was knight swift, another trucker that saw its stock plunge nearly 6% today. then this morning numbers from

union pacific, the first major railroad to report this time around and the company beat expectations in the quarter. it also lowered full-year guidance sending the stock down nearly 7%. so why should you care about the truckers or the railroads? because nobody understands the economy better than the transports there's a reason the dow jones transport index peaked nearly a year ago that's right when the price of moving a shipping container from shanghai to los angeles peaked too. since then it's been in freefall in september of last year that shipping container that cost just under $12,500, now it's at 2,500. the last six months have been particularly ugly. >> the house of pain >> meanwhile, we've been hearing about softness in the trucking industry all year. trucking rates are way down. and who can forget the horrific disappointment from fedex last month? one of the worst shortfalls i've ever seen. with some very dire commentary about the state of the economy

remember, we spoke to fedex ceo raj subramanian and that interview frankly was a gut punch. he was adamant we're headed into a worldwide recession. took my breath away. with fedex declining in every segment around the world and he's a terrific executiv with a great purview unfortunately, nothing we heard from the transports this week has changed that negative narrative. let's take them one by one j.b. hunt was the most positive, which believe me is not saying much when the trucking company reported on tuesday night they actually delivered a nice top and bottom line beat 22% revenue growth year over year headline numbers look good but while the stock initially opened up a few bucks yesterday in response, it quickly fizzled, finishing the day up just 7 cents before plummeting more than 4% today. people really started reading through this stuff why? because j.b. hunt's got problems while the company's been able to fix some of the supply-related challenges that have been holding them back like the shortage of truck drivers or service quality in their

railroad partners, they're still concerned about the economy. even though ceo john roberts would only refer to it vaguely as, and i quote, the uncertainty of macro conditions, end quote, you better believe that what everybody was thinking about when they listened to this conference call, who cares if j.b. hunt can find enough drivers when we don't know whether or not there will be enough demand going forward. hey, listen to this line from roberts in the conference call "further evidence has presented itself over the course of the quarter that requires an increased level of caution and awareness on broader demand trends and economic activity." hmm. tell me you're going to take a hit from the economy while explicitly saying you're going to take a hit from the economy and because j.b. hunt doesn't give guidance, investors were left to imagine what the upcoming macroeconomic uncertainty might mean for the numbers here definitely didn't sound positive, though then last night we got confirmation of that negative read when we heard from knight swift transportation another trucking play. knight swift was a lot less vague and a lot more bearish

first off, they delivered a small top and bottom line miss second and much worse, they cut their full-year earnings forecast pretty dramatically they see trucking rates going thing wrong way in the fourth quarter. on the conference call cfo adam miller paint aid heinous picture. "for the fourth quarter we expect a muted season a.m. frart environment combined with significantly fewer spot market opportunities. this is expected to cause rates to turn negative on a year-over-year basis." hey, there it is there it is. not great for commerce although at least we're making progress remember, that's the theme of tonight's show in the war against inflation swift's stock plunged nearly 6% crushing the whole trucking space and contributing a great deal to the meltdown in the dow transports which was down more than 2 1/2% today and actually rolled over taking the rest of the market with it although that decline wasn't just about knight-swift, it comes down to another real

cramer fave. union pacific. the big west coast railroad that report aid rough quarter this morning. while the headline numbers actually came in better than expected, most of that beat was due to higher fuel surcharge revenue and agenerous buyback. business volumes only grew by 3% at the same time union pacific's costs are exploding. the railroads like to focus on what's known as the operating ratio. meaning cost to revenue. and that came in nearly 3 percentage points worse than expected that took my breath away i was very surprised for years efficiency they were getting their costs down and operating with better precision allowing them to generate tons of cash. but there was very element increased efficiency in union pacific's latest quarter freight car velocity down 2% locomotive productivity down 2%. quarterly workforce productivity flat these were all disappointments even worse management slashed their full-year guidance previously guysing for 4 to 5% now they've taken that down to 3% they're also warning of higher

cost those are the last things you want to hear now, i also pay attention to the rails because they give us insight into a ton of important industries on the conference call union pacific vice president of marketing and sales kenny rocker broke it down like this. call is looking good thanks to high natural gas prices. although he noted the opportunity to capture demand is dependent on the available resources. points out that grain is facing tough comparisons in the next quarter. on top of that rocker said union pacific forecasts for industrial production is decelerated and they're also seeing softening demand for its products. in addition, how about this one? we expect parcel and truckload demand to remain soft as consumer preferences have shifted more to experiences versus goods remember the service experience, travel overseas, versus goods? here it is playing writ large. again not what you want to hear. unless of course you work for the fed. another railroad csx reported

after the close and the numbers looked good much better than union pacific. and while the comments from jamie hunt wasn't good it wasn't nearly as bad as what we heard from fedex last month. but the bottom line if you're looking for a bottom in the cyclicals the ugly numbers and cautious comments from the transports tell me it's way too soon most of the economically sensitive stocks is in bad news mode and they could stay that way for a while. you know me as i tell club members stick with a higher quality less cyclical stocks right now. those are the ones we buy for the club they're a much safer place to be let's go to chris in maryland. chris. >> caller: hey, jim. first-time caller. please be gentle calling on united parcel service. they increased their dividend last year by 49% >> look, yield's 3.7 it is a great company. it's down 160. it's down 25% for the year that's highly unusual. we are going into recession. it's not a stock people buy going into recession, but i have

to believe as this thing closes in on 5% yield you have to pull the trigger. how about manny in florida manny. >> caller: boo-yah, jim. how have you been? >> boo-yah good how about you? >> caller: good. they call me money manny for a reason i have a question about uber there's no argument they have market share they were first. i don't see ride share going abap it's just the way everyone gets around, right >> absolutely. >> caller: maybe they'll expand, go to more food delivery, roll out some cannabis, new ad service. you about they're still struggling to increase their market cap is that a concern for you? >> i have to tell you, you have to take a two-year view if you're going to buy uber this is not like airbnb which we have in the bullpen for the club uber's going to take a long to win but when it gets to win it's game set match what they really need is autonomous driving that is going to be the killer app for them if you're looking for a bottom in the cyclicals it's likely way too soon most of the economically sensitive stocks are still in

bad news is bad news mode. and they could stay that way for a while. much more "mad money" ahead including any exclusive with bowlero. could bowling give us some big bucks? i'm discussing with the company's top brass. then from tesla earnings to twitter acquisition elon musk has a lot on his plate i'm breaking down all you need to know about what's going on in his world. and all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer. no more waiting. no more running. [ screaming ] we finish this tonight.

we recently profiled a true rarity in this business. a spac play that's actually worth owning i'm talking about bowlero.

it's b-o-w-l-e-r-o the company that's rolling up the boeing industry with acquisitions you may recognize them as cramer faves amf or a bunch of them unlike every other post-spac stock bowlero's genuinely profitable and they're consistently beating expectations including last month when they reported a fantastic quarter after that they asked if the company could come on because i profiled it. and i just couldn't say no are you kidding me the stock's already given us a quick 12% gain since we highlight td last week we were happy to oblige. let's check in with tom leo shannon the founder and ceo of bowlero to get a better read on this business. mr. shannon, welcome to "mad money. >> thank you, jim, nice to be here >> he's got that -- this is what i do too i mean, look when we bowl, we're somebody special. and i really feel that way and i think you can tell us the bowling experience changes and is the best way for all generations to have parties and get together, particularly after

covid. >> it's so true. one of the few things that exist that's all things to all people is bowling we get young bowlers, elderly bowlers, rich, poor, you name it, everyone bowls, jim. >> great equalizer >> yes >> one of the things you've done, it is truly incredible you have same-store sales revenue growing at 33% so when you take over a bowling alley you must make it so that it becomes the thing to do the in neighborhood. >> we really like to have a service-intensive experience look, people's time is precious. >> right >> usually, they have more money than leisure time. so when they come into one of our facilities, we want it to be a great experience, a great aesthetic, great food, beverage, and a service-intensive environment so when they come they're really getting the most for their time invested. >> i'm not a spokesman for you, but yes, that's been my experience every time i've gone, which is why i like to call my parties bowling. >> thank you >> let me ask you something. you have decided as a spac to clean up and get rid of the

warrants and make it sure -- i was there should th saturday and they asked me do you know how many shares are x? because i'm big in it. he had no idea because there's warrants here, there's different -- you decided to make this look like a real company. >> we were super bull, on the stock and we thought look, we're going to blow through 1150 pretty quickly we were able to purchase a pretty big slug of those and then we did a conversion into shares but simultaneously we bought back 3.4 million shares are there any other spacs that did that >> i don'ten't know >> i couldn't find any i know you have a man who worked with comcast on your board who is our cfo he's a tough guy so you've got -- michelangelo august you have people on your board again who care passionately about shareholders and making money, not just for the people who promoted it. >> well, we have a great board and they really believe in the company and its vision and we started with one bowling alley right here in union

square i bought that back in '97. you'll like this, jim. i paid 3,000 back and 2 million borrowed i only have 3,000. we turned it in to the highest-grossing bowling alley in the world it went from $1 million losing money to 15 million. and now we have 323 bowling alleys all across the country. >> now, there are many, many more bowling alleys that you could -- i hate the tomorrow roll up, to be honest. that you could purchase and make even better. how about that >> i agree about 3500 independently-owned and operated bowling centers in the u.s. most of the proprietors are elderly. and we are frankly their retirement >> you're the way they can cash out and you can do better. now, how about the bowling association? the pba. is there money to be made there? >> maybe and we're -- >> not clear, right? but you will >> the pba >> yeah. >> well, we're making money now. we're negotiating now on an extension of our rights agreement. and yeah, that's great but what it really is is an infomercial. so we reduced our marketing

expense by $10 million through ownership of the pba and it pays us a million dollars we've spent $11 million to buy the pba. we've reduced our marketing expense by $10 million and we still make a million dollars profit on the pba as a standa lone business. >> that is very good now, how much team building and corporate building is there at bowlero? >> the event business is a big part of our business so through june of this year our fiscal year ends in june, our revenue was about $911 million >> okay. >> ebidta was $316.4 million 35% ebidta margin consolidated 200 million of that, thereabouts, is events so the event part of our business is quite large. >> now, how much of it is league >> oh, league? well, league's about 90 million plus the food and beverage associated with the league >> and what's the split?

look, when we go no one gets sloppy drunk, honestly i think you'd probably kick us out if we did. but there's a very nice amount of alcohol consumed. pretty good margin there >> yeah, it depends on the league some are drinking leagues and some are more serious leagues. call it another $40 million of food and beverage associated with the leagues about 130 million. >> now, something is ethereal when we first started. there is a sense -- i don't want people laughing at me. everybody who's a serious bowler knows this that you can be somebody else when you bowl. >> an alter ego. >> yes >> so who's your alter ego >> beethoven >> i'm the pin a-tom-izer. my name is tom and it fits right in >> when i heard about your company i was in shock that i hadn't thought -- i had tried to buy -- i tried to buy a bowling alley. it's just an unbelievable business but has it made some sort of comeback versus say -- it had a

kind of a downturn it seems like it's hotter than ever >> it is and really the comeback started when we started the company in '97, we started to show bowling show up in popular culture tv shows remember there was -- he bought a bowling alley. he was a lawyer working out of the bowling alley. you see it in the tv commercials. we've reinvested about $700 million into our bowling centers since tw2013, since we acquired amf. we have the best product in every market but what we really have is a high-quality product and experience and it's completely rejuvenated and reinvigorated bowling. >> you've got giant lanes not far from here. >> oh, sure. well, look, we've got a 50-laner in times square, a 40-laner in chelsea piers, and an 8 2-laner in brunswick, new jersey >> the first two i consider myself a good customer of because they're just so phenomenal but i've got to go around the country. you've got ones out west too >> sure. california's our biggest market.

we have 45 locations in california >> well, look, i've got to congratulate you i'm so sick of spacs i was desperate to try to find one that was good, and it was right under my nose. and i want to thank not leo but tom shannon, founder and ceo of bowlero. bowling is so much fun "mad money's" back after the break. >> announcer: coming up -- cramer takes your calls. and the sky is the limit it's a fast-fire "lightning round. next - [narrator] if your business kept on employees through the pandemic, getrefunds.com can qualify you for a payroll tax refund

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♪ it is time it is time for the "lightning round. i take your calls rapid-fire -- play until you hear this sound and then the "lightning round" is over. are you ready, skee-daddy? i'm going to start with lee in ohio lee. >> caller: jim, my husband and i watched you for decades. the morning with mark haines and the evenings with jimmy rogers and in the spring i want to thank you for all the education and helping us avoid some potholes in the spring you were teaching us viewers about garp stocks and one of the ones is a financial and currently they have had some good reported quarters where they've beaten. low p/e. year to date they're down 33 so do i continue to heeold stat street sst >> such a great institution.

right now they want to be able in these institutions where you get banks to take your deposits and then invest in very, very richly in treasuries but i think state street down here at this level is a terrific buy. and thank you for those kind comments that's the kind of stock i like people to buy. good yield too how about karen in florida karen. >> caller: hey hey, jim yeah, karen from jacksonville, florida. >> oh, i love jacks. big game this weekend. what's up? >> caller: hey, i need your advice i bought shares of novavax yesterday. as soon as i saw it on an alert from the cdc that it was recommending it to be used kind of as a booster shot in conjunction with both pfizer and moderna. so my question to you is this novavax stock has done absolutely nothing for the last 24 hours from the moment the centers for disease control announced its release. >> right that's why it's down 87% >> do i hold it? >> no.

karen, i've been against this stock from time immemoriam and i'm reiterating once again i'm against novavax. now, let's go to rick in florida. rick >> caller: hi. hallelujah boo-yah, reverend jim bob cramer >> how are you doing, partner? >> caller: yeah. my question is on fox. short and intermediate term. >> i don't like the media stocks the media stocks i do like are google, meta and amazon. those are the ones that i like i like disney too, but that's a theme park stock let's go to keith in kentucky. keith. >> caller: good afternoon, cramer >> yo. >> caller: i'm interested in hearing your thoughts about a stock that has been a covid darling but after posting a miss and reducing their full-year outlook, interac fell off a cliff losing 25% yesterday alone. is this a buying opportunity

>> i am shocked. no, the credibility of generac is completely shocked. i do not quant v want to touch this one and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, let's talk tesla, twitter, and tech titan topping news of both why not? everyone else is next

good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back.

♪ first things first even though tesla sold off today, down 6.65%, i'm telling you they had a great quarter tesla's got a buyer for everything it sells without having to advertise. i don't know if it's worth more than 4 trillion, the price of

both saudi aramco and apple combined, i which elon musk posited in one of the most bizarre moments of last night's conference call. right up there with his obsession to buy back 5, 10 billion dollars of tesla's shares in the open market. i hope he's not desperate to sell stock in order to fund by his own admission his outrageous overpay for twitter although i'm told rich investors are clamoring to get a piece of the deal to me tesla's been hammered for the reason so many other members of the 500 billion dollar club have done poorly they had no encore they didn't discover a brand new business that could propel them higher by leaps and bounds they kind of fall under their own weight the moment anything deteriorates slightly. plus there are people who must have thought tesla could make and ship many more cars than they did, even as musk pretty much told you how many they would do people who sell on that kind of news never should have owned this thing in the first place. but now that we're on the cusp of musk's twitter acquisition, it's time to figure out how he can break the death spiral of the social media company's revenues he says he can make twitter

worth much more than it is and after the close tonight it was reported he's been telling prospective investors that he may let go of up to 75% of twitter's employees. good for the gross margins maybe not so good for both as currencurrent ly configured. are those kinds of cuts possible i can see a way, although musk pays no attention to me. he once said i was just a simulation take it with a grain of twitter. once he takes over twitter i think he needs to call a convention of everyone who has a couple million followers and just ask them what they want he'll get a boatload of great ideas. then he has to take twitter's direct messaging system and turn it into a way to conduct commerce, to identify whether you are buying something by credit card overseas or if you're looking for help and want to keep your phone separate. now, here's the real stuff musk needs to explain to twitter's hundred biggest advertisers that he can develop targeted advertising programs that have tremendous reach and credibility. programs that can be superior to anything google or amazon, which are currently the best in the business even as their stocks

tonight are being filleted by association with the gas baggers at snap. [ boos ] musk needs to have a paid tier and free tier with the free tier being the free-for-all river and the paid tier having much more moderation so it's not as much of an open sewer but the easiest thing is advertising. twitter has resisted doing targeted ads or it can't do them, which is nuts. he needs zip codes to allow advertisers to give them local deals. i always wanted to advertise my old bar on twitter but it wasn't worth it because we couldn't target the people in our neighborhood yet this thing could easily become the best direct advertiser in america. i also think twitter should have its own writing crew not just relying on random posts. they want actual humans to highlight the best posts instead of putting it all in the hands of an algorithm. there could be more advertising around that thread too ultimately musk could build a whole library of publications connected to twitter and become the fourth stool of e-commerce

if you're google, amazon and meta i think this is a great vehicle for musk himself while musk is overpaying for the current version of twitter if he turns it around, and he is so darn smart i think he can, this could end up looking like a steal. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer se i'm jim cramer see you tomorrow the news with shepherd smith starts now the british prime minister is out the historic collapse, the outrage and intrigue and what next across the pond i'm shepherd smith this is "the news" on cnbc >> i cannot deliver the mandate on which i was elected by the conservative party >> she'll exit within a week >> it's a disgrace >> utterly appalling >> it's doing huge damage to our economy. >> the chaos, the candidates to be the new leader, and the carnage that led to this >> i'm actually embarrassed to be british rollin