this is on a china reopening china is more than half of copper demand. i think you can play this still. >> dan nathan? >> american express. >> thank you all for watching "fast money. "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 not just to entertain but teach. call me 800-743-cnbc tweet me @jimcramer.

we're headed for a fed mandated slowdown to cause earnings estimates to tumble and because earnings are the number one driver of stock performances, that meansthe averages have to plummet no matter what so why are shocks rallying furiously and the s&p advancing and nasdaq pole vaulting 2.1%. holy cow those are big and for many unexpecting gains. in truth, there are a bunch of reasons. let's start with the macro, the over averaging determination for tons of investors because they run too much money to care about individual stocks. they just trade the s&p 500, the index, you know, they go back and forth and back and forth because only the baskets are large enough to handle their capc capital while it's through there is an earnings slowdown. i'm not getting away from that if you can get a sense when the federal reserve might start tightens, you might be able to temper the negativity.

sure enough, right on time we got an article in the "wall street journal" this weekend by a source who says the fed may do a quarter point rate hike next week and two more before a pause. investors are hopeful for one additional hike after next week's meeting either way, you know what? there is light at the end of the rate tightening cycle. hey, if that's the case, more measured going forward, people will be far less likely to sell stocks even if the underlying companies report disappointing earnings slower rate hike schedule doesn't immunize any stocks. don't believe that it makes us more optimistic and by the second half, we might see daylight in the earnings estimates. some large buyers want to get ahead. that always happens or at least the beginning of the cycle i've seen it in my 40 years over and over again, people jump the

gun. that was a big driver of today's buying and explained bullish backdrop but let's get to the nitty gritty beyond the fed, there is no fed meeting next week and for now, let's just say starting tomorrow, earnings are going to be front and center and be furious. so far, we've seen six ways other -- six ways otherwise dead in the water stocks that have been able to jump higher and i'm going to run through these six ways right now let's start with the first one layoffs. we have seen layoffs give a pop to every company restructuring although we're here talking about layoffs large enough to move the earnings per share needle the incredible run of way fair, more on that later so gigantic large companies we see meta, alphabet, microsoft and salesforce jump on the news. in the case of salesforce. they fired 10% of the staff but four activists that own the think right now, well, they say it's not enough including the hard-nosed elliott management

which owns billions of dollars worth of shares. of course, the activists aren't just concerned about the head count. there are accountability issues, too, they see including a board shakeup that may be a new plan but it starts with the fact that salesforce hired too many people during the pandemic, something ceo marc benioff will admit to. the fact so many activist funds are circling one of the most hated areas of the market is new and positive the guys are incredibly smart even though they want major changes, the fact they're willing to buy something like an enterprise software company such as salesforce at all is quite an endorsement of the company and its amazing products if the company gives the activist the cost cuts they want, the earnings should get a powerful boost wall street loves the self-help stories. by the way, not just tech. newell has been down on its luck but the stock popped 6% today

restructuring so let's not limit it second thing propelling stocks higher, the dollar and interest rates peaked last fall since then the most economically sensitive stocks have been rallying hard. i don't think we'll have horrendous earnings because many do do business overseas so numbers will be boosted by the weaker dollar. many stocks rallied since the peak that might be more important than the short term rate set by the fed for these companies. third potential earnings driver, everybody is worried relentless rate hikes will cause people to default on debts causing real damage to the banks but if the fed is nearly done, let's take them off the table and that is what the market did today. they can take your deposit and make more money by investing free but no free launch, year positives get a higher return. fourth, the reopening of china, this has so many people excited. you think the geopolitical

tensions vanished overnight. hardly, covid is burning through the most populous nation of the world. there are ways to deal with the virus but like the chinese government has given up. looks like they're getting their wish it's the lunier new year and looks like a strong one for consumer spending. that's good for travel and u.s. companies that do big business like nike and starbucks and estee lauder which we own for the charitable trust we own wynn, too and we talk about all of them on the morning meeting at 10:20 and our new home stretch afternoon broadcast it appears around 2:30 p.m china is pulling off a gigantic shift. guy that used to be important and covid hit and went away, now, now china is back fifth, we're beginning to see the fruits of the infrastructure spending congress authorized most states are nowhere near authorizing progressjects but t

money is there roads, bridges, tunnels, large buildings you can buy caterpillar or the rails as they report tomorrow. sure, they can go down but won't be able to stay down that's what matters. we know the spending is on the horizon. sixth where semi conductors went nuts, analysts are trying to get ahead of the end of the gigantic inventory collection recommending amd, did you see that today qualcomm, wow. nvidia it's working the glut included cell phones to desktops to high performance computers. this say very big deal, people very big the bank analyst that recommended the semi conductor stocks acknowledged it's a 24/24 story. i can see micron benefitting from the cut backs made last year because they helped create the glut and now they're alleviating. now, a special thing here, i want you to pay special attention to nvidia, nvda

because it of course turns out to make the platform for the chat gpt program you keep hearing so much about remember when i told you you might be able to tell an a.i. to make me a painting or have a real conversation with it you can have it talk to you as yourself i saw that with my own eyes at nvidia's headquarters. this thing is exploding. a friend of mine, a ceo shared a chat gpt generated high coup about this coming showdown this sunday between the eagles and the niners but i will not share it because he is at last from san francisco. it's here, that's right. this whole idea of the semi conductor as a way to be able to create in your head and then present without having to do anything, it's here no matter what uses it citi says it's a $5 billion

opportunity but outside chance of $11 billion you heard me $11 billion with this chat this thing could be real here is the bottom line, with those six positives countering expected earningsdownturn, you have to expect the market to be more at the moment of the first print when we see the numbers, i still like to see vicious declines the difference from 2022, those declines, they might be buyable matt in wisconsin, matt? >> caller: jimmy, what a matchup for the championship next week. >> it is going to be the real deal but my -- you know, my feeling, you know how i feel about the birds. what is happening? >> caller: one thing you've been talking about recently after the j.b. hunt call last week, the normalization of inventory management challenges. how do you think that sets up for levis as they come on and report this week as they've been dealing with a lot of over

supplied inventory like a lot of apparel industryindustry >> matt, this is a brilliant question i and thought the same. it was time matt boss at jp morgan downgraded the stock today and i can't go against matt boss. he is too good bet ssey in california, betsey? >> caller: how are you doing >> fine. how about you, betsey? >> caller: can i tell you something? i learned so much from the monthly meeting and anybody that doesn't become a member and doesn't listen to that is missing out and i will tell you what i learned from it, i did more research on estee lauder after the call what i found was there were 12,000 flights cancelled okay if there were 12,000 flights cancelled, there were over a million people stuck in the airports and they didn't have their suitcases, and they didn't have their makeup and bumble and

bumble and the lab series and the bobby brown cosmetics and where did they go? they couldn't go to a mall they were waiting for the plane to be coming in. so estee lauder probably made out like a bandit at the airport. >> oh, my, betsey, that is one brilliant analysis i have to admit, i didn't think of it. they are duty free the most important venue other than china. you know on the home stretch today around 2:30. jeff marks and i talked about estee lauder i wish i had your horse sense. i would have thrown it in as one more reason why this stock up 36% in the last few months has much more to go. thank you. thank you for those kind words about the club with the six positives countering the expected earnings downturn, you have to expect the market to be a lot more don't you? it is on m"mad money" tonight wa fair caught two back to back rallies up 50% in two days so what has wall street rallied around the stock

i'm digging into the recent headlines. bitcoin bouncing back. so is it time to take a close look at the crypto or is this market giving you a better way to hedge against economic uncertainty? i'm going off the charts to find out and get this, eli lilly announced the fda shot down the company's request to fast track the alzheimer's treatment so what material impact if at all could this news have on the stock? i'll give you my take and it's pretty darn disruptive 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 email to "mad money" at cnbc.com or give us a call at 800-743-cnbc miss something head to "mad madmoney.cnbc.com.

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what do you think happened to the stock of way fair the furniture retailer announced plans including layoffs and the stock shot up 20% in a single session. today it caught a few upgrades and rallied another 27%. all told way fair is up 50% in two days time. like a takeout i told you many times these bloated tech and e commerce companies could send stocks hire by firing a lot of people. i never expected a move like this you think way fair really got some sort of i don't know $70 bid from kohl's, how about that? is going on here part of this move is simply a sector rotarotation many stocks hated last year are

leaving us higher in 2023. that includes way fair, which is a textbook covid winner. they made a fortune in 2020 and 2021 because everyone wanted to get new if yofurniture for lockn nobody wanted to shop in person. isn't that the perfect scenario for way fair but the stock finally peaked at $369 in early 2021 and steadily began working lower. i warned you away from way fair a year ago when it come down to 190 and that turned out to be a good call. the stock ultimately plunged as low as $28 this past october down 94% from the all-time high although it's now doubled off the lows but 94% is not something you can handle a big chunk of that move came before last week's layoff announcement but most of it came in the past two sessions look, there is a reason the stock caught fire here i've said over and over again the growth oriented companies need to change stripes, they need to change their approach rather than pursuing growth at all cost, they have to focus on

profitable growth because it's earnings above all else. that seems that is what way fair is doing they announced layoffs in august of last year, letting go of 870 people, that was 5% of the work force. with this new move, they're firing 1,750 people. which is 10% of way fair's global work force and included 18% of their corporate team. that translates into these are staggering numbers, $750 million in annualized cost on top of the layoffs, they're targeting 500 million in operational cost savings and these should be fully realized by the end of the year there is another 150 million in savings. put it together, way fair is talking about approximately $1.4 billion in cost savings per year that is pretty huge. especially when you consider the company likely lost 1.3 billion last year. these cost cuts are different from turning a profit and losing money. according to way fair's co-chairman and ceo in hindsight

some of the technology, we scaled our spend too quickly over the last few years end kw quote. in order, during the worst days of the pandemic had to cut back once the world went back to normal like so many digital outfits. way fair threw in a nice sweetener with a terrific business update. maybe this was most important. business momentum continues to strengthen in december, year over year growth revenue trend experienced a further improvement compared to the month of november wow. sequential gain. get this, went on to say we are encouraged by our recent top line performance and particularly the momentum in orders our market share continues to improve as our core offering strengthens across key dimensions like availability, speed and price. those have all been an issue no wonder the stock jumped 20% they are giving $1.4 billion in cost cuts and today way fair

rallied harder because the stock caught three separate upgrades this morning all delayed reactions. that includes two separate what is known as double upgrades. where the analysts took way fair from the equivalent of a sale rating to a buy rating that's like a swivel i can't blame the analysts for jumping on the band wagon faster sales growth and higher earnings this is a straight forward story. after the movement in 2020 when people invested in homes and way fair exploded, 55% that year there is a prolonged hangover. the company had negative revenue growth for six straight quarters to make matters worse, they were losing a ton of money as they scaled up to meet 2020 levels of demand that are non-existnon-ex. it's enough to make the stock worth recommending i've been willing to get behind a number of digital plays that made this same pivot to profitability. take etsy which is great, shopify, pinterest, and chewy.

the comeback kids i call them. given way fair is down where it was trading before the pandemic, maybe it's not too late to do buying this was a $90 stock before covid hit. it's now at $59. telling you to pay up for anything that soared more than 50% in two days. way fair is a better story when the facts change, i change my mind and the facts have changed. a very right thing to go negative on way fair in late 2021 the stock is e viserated since then and no path to profit profitability. that's no longer the case. those cost cuts are massive. that said, if you like this one, i actually think you get a better buying opportunity. when you see this monster move in a short period of time. there is a good chance much of it is driven by short covering people betting against way fair have to buy back the stock to close the positions which send shares higher. plus even if you're genius with the estimates way fair is far

from cheap the two analysts double upgraded they expect it to earn 67 cents per share. that's incredibly bullish but using that number, the stock sells for a ridiculously high 88 times next year's earnings estimates. want to bet on a come back, i got williams-sonoma, nine times this year's earnings estimate, 19, that's what it was nine times get this, r.h. fast growing, the chain forming known as restoration hardware trades at 18 times this year's numbers and way fair is getting credit because the numbers are moving in the right direction and be a big short position but you have to wait for a better opportunity. credit to way fair for admitting the previous growth at all cost strategy was wrong in taking drastic action that was a good thing. i think upside but it does seem like the jump in right now however, if you get any pull back, you do indeed have my blessing to buy it for speculation. "mad money" is back after the break.

>> announcer: coming up. what's the crisis of confidence in crypto mean for gold? cramer studies a flight to safety, next

you ask, i deliver now that bitcoin spent the last couple weeks bouncing off the lows, the whole crypto industrial is back in full year. trying to entice people back in. i think that would be a huge mistake for you which is why tonight we're going off the charts with the help of carly garner she's a brilliant technician and by the way, our resident commodities expert to explain what is wrong with crypto from at least a more quantitative perspective, not emotional, not everyone knows bitcoin had a legion of cheerleaders even after the ftx

de debacle and wave of crypto going under or getting charged or both they haven't stopped for years people said bitcoin was the perfect replacement for gold as an alternative and a great hedge against inflation and central banks were printing money like crazy in reality, it wasn't a hedge against anything i want you to take a look at this chart this is a daily chart of the bitcoin futures and the nasdaq futures going back through 2021. what do they have with each other? garner points out bitcoin is practically joined at the hip with the tech index. i was shocked when i saw that's what it is you know what it means it's a risk asset, not a currency or stable store holder value. imagine business owners conducting transactions with facebook or google it's ridiculous. they're too volatile bitcoin is different the question is why does crypto practically trade in lock step with the nasdaq 100? garner thinks it may have to do with something complicated

counter party risk the probability that the other party in an investment or transaction might not hold up their end of the deal. for example, if a crypto broker fails, like so many have, the crypto might not get money back. when the economy is in trouble investors flee from party risk few professional money managers want a piece because it's like a ticking time bomb. you can own bitcoin directly in the wallet that protects you from risk but if you want to use it for anything, risk is backo the table and customers learned, it can be devastating. on the other hand, gold, well, the opposite very different remember for the better part of a decade all these cryptos told us gold was a thing of the past, the future belonged to digital gold garner points out gold doesn't have counter party risk. the markets gold futures trade on are regulated best of all, the precious metal is performing well since last

october. the hedge against inflation. i love that. look, it's not just that bitcoin trades like a tech stock, it's also the furthest thing imaginable from any kind of currency check out this daily chart of the dollar index, bitcoin and gold telltale sign markets specifically don't believe this non-sense. on the other hand, gold hasn't been used for a natural currency for a century, it's negatively correlated to the u.s. dollar. garner sees gold is a good way to bet against the dollar, a lot of dollars being printed bitcoin, not so much look at this chart from much of 2021 okay you see is the dollar index was trading in the 90s and interest rates more or less non-exist tablet allowed gold and bitcoin to fluctuate on non-currencyed . the dollar soared and inflation

forced the federal reserve to wrestle interest rates that fueled the rally in the green back in response, gold and bitcoin got hit really interesting, isn't this meanwhile, the dollar is in free fall since late september. that's a reason i recommend so many stocks that are dollar weak beneficiaries. gold is battling over the dollar for the same period. that's what you want until the last couple weeks, bitcoin totally failed to play catchup and making this crazy move how good is it well, it's getting some lift and garner wants you to make sure you understand that this rebound will not be like previous rebounds want you to take a look at bitcoin's weekly chart at the end of the day, you got to remember the crypto currencies don't trade on any fundamentals not backed by anything the same thing is about the united states dollar i've heard that so many times. that's actually nuts our currency happens to be backed by the most powerful th nation in the world. it's a big difference. so if we wantto get a read on

where something like bitcoin might be headed, we need to turn to the technicals, which is why we're consulting with garner the odds favor lower highs and lower lows we know bitcoin had huge moves in 2020 and 2021 but that was when the federal reserve had cut interest rates to practically nothing because of covid and congress was blasting us with handouts to property up a covid riddled economy. those conditions were fabulous for speculative also sets like crypto but the fed is tighten thanks ing aggressively the last day of the results -- the last one of those resulted in major budget cuts could happen again that's good for? well, i know this. it's bad for speculative assets. garner points out bitcoin gapped higher in december of 2020 okay up from about 25,000, 26,000 and gapped lower last june from 28,000 down to 27,000. look at those two moves. okay looking at them, garner thinks the line between a bitcoin bull

market and a bitcoin bear market lies in the mid to high 20,000s. okay specifically she sees a ceiling of resistance at 23,000 with another ceiling and this is one i think will come into play at 28,000 she highly doubts bitcoin can break out above 30,000 but i have to say sometimes when you deal with charters, you have to accept this. if somehow it gets above 30,000, she will reconsider her negative stance it's blowlower. where to she wouldn't be surprised if it falls to 7,000 or 8,000? i'll repeat hat. 7,000 or 8,000 and sooner than most investors seem to expect in the meantime bitcoin has two potential floors of support. 15,000 and 14,000. given it's currently at 23,000,

that would represent a lot more downside than most of us can handle by contrast, garner loves what you see in the gold futures. while the gold market has a reputation for volatility and rationality, it looks calm compared to bitcoin. the precious metals came under pressure as money managers used it as a source of funds and pushed it below the up trend line going back to the summer of 2018, which was unfortunate because it fooled a lot of people after two months it rebounded and again above the 200-day moving average see, this is a very important position right here because it's so far above the 200-day as garner sees it, gold's previous up trend is once again in play. she expects to hold as gold prepared a run to higher prices. that said, look at the relevant strength index down here and that's an important momentum index, it's running hot so garner wouldn't be surprised to see a modest pull back here however, as long as gold holds above the support of 1800, she

can see it run to 2100 and ultimately to 2600 let me give you the bottom line here on this the charts, as interpreted by carly garner suggests ignore the crypto cheerleaders and if you seriously want a real hedge against inflation, stick with gold and i agree let's take phone calls let's start with nico in illinois, nico >> caller: jimmy chill, a big boo-yah from chicago. >> good to have you, nico, what's happening >> caller: appreciate it i want to send a quick shoutout to you, jeff marks and the cnbc club quick story. i started out with you guys during around the time of the start of the pandemic. i am now graduate of college paying off my student loans and the big part of it is thanks to you guys thank you. >> nico, thank you all weekend i was at a fabulous wedding for my best friend's son and people asked me jim, why are you still doing this

because of nico. all the great people that talk so nicely like that. how can i help you what's your question >> i want to know a little bit about upstart. these buy now, pay later companies have had a lot of growth until recently. two questions. do you think these stocks will continue to grow and is the best of the pack upstart? >> okay. this is a tough question because these have been absolutely the worst stocks to own. i think upstart can bounce because we're having a bounce in stocks that have a serious short position but i think as the fed keeps tightening, every time they tighten, that stock will be a hit again. we got to up our quality we got to make sure that we're in some of the industrials we've been buying for the club which are safer. tonight's charter says ignore the crypto cheerleaders and if you seriously want a real hedge against inflation, stick with gold i agree. much more "mad money" ahead. last week we got an update from

eli lilly. investors are concerned but i like that. could be more to the story i'm breaking down the headlines and sharing if it's really something worth worrying about or not i said it before, this is one of the craziest downturns what sets this apart all my calls in tonight's rapid fire in tonight's edition of the lightening round stay with cramer (woman 1) i just switched to verizon business unlimited. it's just right for my little business. unlimited premium data. unlimited hotspot data. (woman 2) you know it's from the most reliable 5g network in america? (vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today. every day, millions of things need to get to where they're going. and at chevron, we're working to help reduce the carbon intensity of the fuels that keep things moving.

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duckduckgo, privacy simplified. (vo) wells fargo lets you know where you stand with your fico credit score. what if you knew where you stood with everything? like your future in-laws... (boyfriend) hope you like cats... (hero inner thought) i hope your parents like me... they're whispering. (father in-law) the kitties like her... (hero inner thought) can they tell i'm allergic? (mother in-law) tears of joy... (father in-law) welcome to the family! (hero inner thought) whew! (vo) like knowing where you stand? when it comes to your credit score, you can with wells fargo. last thursday night eli lilly said the fda shot down the request to fast track the drug they've been working on for alzheimer's. in response, the stock tumbled

$5 but shedding $4 or so today despite the strength of the broader market i got to tell ya, i know this sounds strange but i'm not that worried. i say that even though we o own eli lilly for the charitable trust. in a stock that hasn't given many buying opportunities. lily was up 32% with the s&p 500 down 20% what makes me so confident first, let me give you context alzheimer's is big pharma's white whale. a terrible disease that's wide spread so a lot of money -- if you could treat it but nobody ever seems to pull it off. at least until recently. back in 2021 the fda approved the alzheimer's drug first new treatment since 2003 that was highly controversial because the efficacy date, let's call it iffy didn't help it was priced at $56,000 a year the whole thing was shocking it triggered a congressional investigation. sure enough, the alzheimer's drug fizzled and had to cut the

price aggressively and then the regulator in charge of medicare and medicaid issued a narrow coverage ruling. they'll only pay for patients in clinical trials that's a tiny number of people the alzheimer's drug was a disappointment, the whole side made it clear the fda is willing to approve less than ideal treatments for the horrible disease. since then wall street had its eye on two drugs there is a formulation in the works in collaboration with the japanese drug company much better than the previous drug and more importantly this month the fda granted accelerated approval destination to the new alzheimer's drug while they're still going through the traditional approval progress ses, they are starting to sell this now which brings me back to eli lilly. they have another exciting drug in the works with compelling phase two clinical trial data. they asked the fda for the same accelerated approval that bio again got and we found out they were shot down last thursday you might think that means bio

ag gen's drug is a candidate for something better the fda gave it their seal of approval while denying the same thing to lily. that's what a lot of people thought. not so fast. if you do the homework, there really aren't any issues the fda's decision is based on a technicality they didn't have enough patients that spent 12 months on the drug during the trial which is what their accelerated approval was based on and that was the only problem. nothing else let me quote this note according to eli lilly, very important language, no other deficiencies in the application were noted the fda wouldn't give accelerated approval until they seen data from 100 patients on the drug for at least a year 131 patients in the phase two trial were given the real drug rather than the placebo, they were allowed to stop taking it six months into the steady if

they reduced enough plaque in their brains that's how these alzheimer's treatments work. unfortunately, a few dozen patients dropped out so 94 people received the 12 months, meaning they were six patients short of the threshold it would have been great to get accelerated approval but consider the cause of the problem. not enough people took the drug for six months because it achieved the goal too quickly. they didn't need the full 12 months there say much larger phase three trial with the data coming in the second quarter. that's the big one their plan is to file for traditional fda approval not long after they didn't get early approval but we're really just talking about a couple months later. does that delay hurt lilly financially? not by much. the company said quote this action does not result in a change to the 2023 financial guidance, end quote. most analysts have minimal expectation for revenue from this at least in 2023.

before the announcement last week, they were looking for $200 million in sales in 2023 which is not a drop in a bucket for the company the size of eli lilly. they're expected to generate $30 billion in sales more importantly, it's encouraging the drug was delayed, not condemned the truth is it's a side show. i know people are focused on it but the wrong jug. i mean, i know this is amazing by eli has a fabulous wonder drug in the pipeline it just isn't this one the one we're salivating over is mounjaro it's a type 2 diabetes drug also used for weight loss the data looks promising if this gets approved for obesity. lilly will make a fortune. we have a massive obesity epidemic in this country and around the world so an effective weight loss treatment with few side effects, almost none would

be a game changer. lilly is looking for fda approval the second half of the year and that's a big app opportunity. that's why there is so much buy in the stock the drug is the icing on the cake mounjaro is the cake itself. if you're taking mounjaro you're probably not interested in eating the cake. ha before they shot down the approval request, lilly stock was taking a beating down 6% for 2023 but more about a sector rotation out of the drug stocks into other stocks if anything else wall street is convinced the federal reserve can engineer a soft landing, beat inflation without ruining the economy and if that's possible on the table, if that's real, money managers don't want as much like big pharma but the fed is tightening the economy is deteriorating nothing much changed with eli lilly other than getting closer and closer to the states we want so much including this one bottom line, you got to treat

this pull back as a buying opportunity. by the way, if i'm right this may be the last good chance to get into a stock before a big move because the future of the pipelines are looking bright and that's enough to trump the violent sector rotation out of pharma that we're seeing at this very moment. "mad money" is 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.

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♪ dreaming is free. ♪ accenture, let there be change. it is time, it is time for the lightening round

buy, buy, and play the sound and then the lightning round is over are you ready ski daddy? time for the lightening round. i'll start with josh in colorado, josh >> caller: hey, jim, first time caller happy monday to you. >> same to you, my friend. >> listen, i know you don't like this but hang with me. this company has a different pedigree they've been offering for ten years a. proven fintech ceo and solid institutional ownership, black rock and even have bill foley on your show to talk about it. is it safe to dip my toes into psffe? >> it is a good company. it's an out of favor sector. that could be the next sector to have a little more of a run. i bless that for a trade to 25 and i thank you for the kind words. john in california, john >> caller: yes, boo-yah, jim. >> boo-yah, john >> caller: how are you doing

>> jimmy chill says good, how about you? >> doing great calling in regards to canadian mining company tech resources. had it for -- >> i've been looking at tech i did the charts this weekend and i like tech resources more than freeport. i'll bless it. why? because it sells at five times earnings that's ridiculous. i want to go to eric in texas, eric >> caller: hi, jim, thanks for taking my call. >> my please sure. >> reporter: -- >> caller: the new ceo of rm. >> i thought of these guys i like your choice i think that medical records still needs to be consolidated i'll go with r 1 let's go to nancy in illinois, nancy? >> caller: hi, jim, thanks for taking my call. >> of course.

>> caller: thank you for your insight during the years i'm rep cemresenting a club oute of chicago and we have a question our first concern is why is the pe so extremely high over 2,000 today i know in the past many years without it but recently it's t climbing and climbing. >> satellites are in strong demand to get them up there is rather amazing they expanded a great deal and revenues haven't i'm not as inclined to buy the stock up here. i would rather take you to bennys and buy a couple bottles. yeah big chicago liquor store many people love satellite so much they'll buy anything connected to satellites and that's why it's up

thank you for the kind words and that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is spon sosored did t.d. ameritrade coming up, stay loose cramerica. don't let this wild and crazy tightening cycle make you tense. tightening cycle make you tense. stick with cramer.

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from the very beginning, i've told you this is one of the craziest slow dodowns i've seen. weird. in previous fed tightening cycles those who bought cars with borrowed money. we have mortgage defaults. t some feds are brutal i've seen entire industries decimated by rate hikes, aluminum, steel, mining. so quick and enormous that never bounced back and a tightening cycle brought down the genuine crisis and a crush to retailers and autos and a tightening cycle leading up to the great

recession. aside from the .com crash, it was more or less immune. so many companies need to go digital or embrace the cloud they turned to big consultants ey or went to some vendors because the products were so dramatic in the way they boosted your business. when it comes to bringing new customers, no company was bigger than salesforce. we brought them in at a company i founded, phenomenal. we seen the same as they shifted advertising to google and facebook and saw amazon require hundreds of thousands of people to meet demand with the gigantic investment for data centers, apple. i thought it was leaning but not sure microsoft became embedded everywhere i know this, the epicenter of layoffs isn't this time in pittsburgh or new york for retail or the motor city for autos. no this time it is in silicon valley, x microsoft but just

getting started. we've had a 10% reduction at salesforce nearly 8,000 people and amazon cut 18,000. we'll have to do many, many more they let go 10,000 people and meta terminated 11,000 let go of 12,000 i know those layoffs are brutal but when you think how many people were hired during the pandemic, these firings aren't enough with the possible exception of meta. meta has been able to rally harder than others alphabet let go of the same number of people they hired last year is that enough salesforce started with 39,000 people and 10% may not be enough there is too many. it shows that perhaps there hasn't been enough integration maybe at salesforce between slack or two gigantic acquisitions no wonder four activist investors are eager to change the company and make it leaner it would be huge given the quality of the product it's known as growth but facing the grim raeaper of mass layoff

because it's not a growth area we're dealing with mature, competitive set in your ways organizations and incubators of disruption because so many invest in tech startups. i talk about how there are too many companies that analyze data and analyze the analyzers and analyze stored data and secure data too many companies are going against each other but defeats occur monthly. so what is the real problem? as someone who has been fired and also done plenty of firing, i know the problem it's horrible and painful to take someone's dinner off the table and cancel their health insurance. these tech ceos with the possible exception of mark zuckerberg don't know how to address the downturn the slowdown is happening and it's happening right now most companies need to take action tomorrow. while i'll never be happy about people losing their jobs, i bet

the federal reserve is thrilled by these tech layoffs because if you can get silicon valley millionaires insecure about their money, you get more engineers looking for work, it's easier to get inflation under control and very harsh but very true i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer see you tomorrow for those who take their fate into their own hands. well, sharks, do i have a treat for you. you got to stop doing this right now. what's the game plan for world domination? and i'm just sitting here trying to find a way i can could be your partner. i would love to see if anyone else is interested. -this is how you thank me? -[ laughs ] walk this runway. let's go. there you go. [ laughs ] i believe that you could sell anything. -bang-tastic! -bang! you just became a want-repreneur. ♪♪ -- captions by vitac -- ♪♪