tightening so, i think that's a good play for china/covid scare. >> karen >> eww >> dan >> guy sees a double top walmart, i see it in netflix >> huh guy? >> faulty homes, sister. >> that's it for us. "mad money" starts right now "mad money" with jim cramer start 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. coming to you from the inaugural cnbc ceo council in santa barbara, california. welcome to cray america. it's not just my job to entertain but to teach you call me or tweet me @jimcramer

we all want our stocks to be immune to the day-to-day gyrations in the market or the slow drip of news about the economy, but they can't be they're as hostage to events as anything else. they go up and down, often for reasons that have nothing to do with their actual business because in the short run, there's only a thin connection between stock values and the enterprises they represent so what do you to when the vicissitudes of the market to get to your portfolio, for example on a day like today, this one, terrible dow lost 231 points. s&p plunged 1.2% a truly hideous day that was very reminiscent of the 2011 selloff where the market fell 19% because of, you guessed it, a debt ceiling fight glorious cash, enticing now that the fed's giving you something real good like 5% paper, and the market's starting to sense real trouble from a default you can give up on stock picking and park everything in index

funds like so many experts tell you you should do. or you can say i'm going to put some money in index funds, keep some in cash earning a rate and then go find the stock of a company making something essential with tremendous staying power and management that knows how to deliver for both the consumer and the shareholder. in other words, you can own the stock of apple no apple stock, not apple, but its stock is not immunized against the debt ceiling debacle. if our government ends up paying people in script, that's going to hurt every stock, including of apple if some analyst finds out that one of their component makers isn't firing on all cylinders, your stock will get hit. if interest rates spike, wall street will attach less value to apple's future growth. that's just how the analyst models work. if the fed tightens again in june, the stock might go down

because it makes up 7% of the s&p 500, and it's going to get slammed. that's the way it is if you're looking at apple that way, i think you're doing it back backwards. what if you view each of these events, each pullback as something different. how about as a buying opportunity. bear with me i know for a lot of companies that won't necessarily work. it's risky to bet on economic -- stocks when the fed tightens you can't do a pullback as a buying opportunity when you're dealing with a boom and bust business compared to something like a john deere or boeing, apple's in more control of its own destiny. apple's in control of its own destiny because it's the best at what it does, just try taking an iphone from someone. good luck. there are so many dazzling new digital pruoducts out there apple can give you the most

obvi obvious story in the world apple likes to surprise us as eddie q. the head of their services division told me today here maybe what you want from your favorite company is what you want from your favorite sports team you want it to win a lot more. that's what eddie q are trying to create, emphasis on create. apple takes something you didn't know you needed it and turns it into something that's indispensable. they've done this so many times because they're focused on long haul and the customer. not on trying to move the needle from the next quarter. it's how you get apple tv plus they have an incredible sense of what you're going to want. same goes for buy now, pay l later. the next watch iteration or mls, major league soccer. how much it will listen to what q told me earlier today. >> i think it starts with saying no to a million things we say no to almost everything

to say yes to a few things and hopefully those few things that you try to say yes to, they have two things in common. number one, they're things that we're good at or we think we can be very good at and number two, the things we think consumers are going to value deeply and care about, and so when we look at things, that's how we approach the problem and say, okay, we're going to do something really great, but it starts by saying no because when you get as large as we are, it's easy to think you can do anything or everything, and it's just not true. if you want to -- i don't know how to do a lot of great things. it's hard to do one great thing, and so we've been very -- i think very good about deciding so when we're going to go into sports, we didn't want to just put our toe in the water we didn't want to put one game on we wanted to do something that, you know, i'll use the gretzky quote even though we did soccer. we wanted to go with the puck was going, not where the puck

was. that's what he does. he skates to where the puck was going, not where the puck is that's the same thing we wanted to do with sports. i'm a sports fan you can see that by what i -- just what i've said. i wanted to create something that if you're an mls fan, you're going to love, and if you're not an mls fan, the first time you see it, are you're going to be like, wow, this is really good, and that's what we've seen >> goose bumps, big guy. i mean, he's that good i've had the privilege of watching apple create not a few additional pennies per share, but something that's really cool something that goes from nonexistent to necessarily just pure necessity overnight that's how you get apple's incredible levels of customer loyalty. it's why all my talks with tim cook and his brilliant cfo start now not with the quarterly numbers but with customer satisfaction percentage which is near 100%. that's what makes this company so extraordinary no one else does it. no one, i repeat no one. most companies don't keep track

of customers satisfaction. i think they're afraid to. for many companies it's seen as meaningless and expensive, that kind of customer satisfaction. in this short-term maybe it is meaningless. apple stock is hostage to the same things that plague the market, but long-term, ideally apple wants everyone in the world as a customer. there are only two things that impede their growth. there are 2 billion people who haven't been woken up by siri at 2:45 this morning or they haven't been to an apple store, haven't watched ted lasso. will adopt what the developed world adopts it's really not that hard, people it's why i always dismiss these downgrades based on seeming slowdowns. that makes as much sense as deciding not to buy a tesla because there's too many teslas. i'm remained that the lifetime value of an apple customer is worth more than any stream of revenue from any other consumer product company in the world, and that's for one simple

reason the customer's always right. if you make things with the customer in mind, not the cost, not the earnings per share, not the gross margin, if you say no to most ideas because they aren't simple enough, you can create -- sure you care about this stouff when the stock's going down it's going to happen but that's precisely when you should see it because you know that apple's going to win for you. they're going to win far more often than they lose, a real good team is not just in the playoffs every year, but they're in the finals. ha here's the bottom line no stock can escape the daily gyrations of the market. you've got a great company that knows how to give its customers exactly what they want, and what they need, even if they didn't know it existed, that's a stock you can buy on market wide weakness at times like this you want to circle wagon, nobody does that better than apple and the

fabulous people who run it let's take calls let's go to keith in wisconsin, keith. >> caller: hey, a big booyah for you, jim >> holy cow, we served it last night, what's going on, my friend >> caller: i'm a club member, and i'd like you, your opinion on this change in my portfolio due to balance sheet and streaming and government issues, i'm thinking of getting out of the mouse house and buying more cat. >> i wish we didn't have to do an either/or there i think disney at 89, we're going to look back i don't know how soon we're going to look back, but i think we're going to look back and say i can't believe i got it then. i can't believe i got it at 89 how'd that happen? how did i get so lucky cat maybe not. i like both of them very, very much why don't we go to tony in

california >> caller: mr. cramer, hey, thank you again for all your energy and guidance. i've been a -- >> i try to bring it -- >> caller: for about three years now and it's doubled since may, should i keep on holding or should i ring the register >> i was an original investor, i can't own stock now. i was an original investor i met these people who run it and i was blown away, they're only better now. let's go to kenneth in texas. >> caller: hey, jim, you're one of my greatest stock market heroes i love your show. >> then i'm doing okay what's happening >> caller: i wondered what you think of ford and the future earnings and is the dividend safe >> i think that they're going to have 6 billion in cash flow. there's three things it's going to be 2.7 billion. i think the street is wrong.

i am banking with jim farley the ceo. it's a big position for the trust and i only wish that i owned more listen to me, when i listen to eddy cue asdy today, i'm reminded that the lifetime value of an apple customer is worth more than any stream of revenue from any other consumer product company maybe ever it's just part of why apple is the stock to buy and the market wide weakness that i am predicting while this debt ceiling wrangle goes on. from fintech to cyber security, we've got a big show out hear at the cnbc summit in santa barbara on "mad money," we're always looking for a way to capitalize on a rise of sustainability initiatives across the globe after a recent acquisition, carrier is set up to do just that getting the latest from the ceo. then i've called in, you've called in, we're all asking about what is the deal with sofi two years after its spac debut, i'm going straight to the source to get the answers to the questions you keep asking and

palo alto after the bell don't miss my post-earnings exclusive with the company's top brands, so stay with cramer from beautiful santa barbara, california >> announcer: don't miss a second of "mad money," follow @jim cramer on twitter. have a question, tweet cramer, #madtweets send jim an email at madmoney@cnbc.com, or give jim a call, 1-800-743-cnbc head to madmoney@cnbc.com. lily! welcome to our third bark-ery.

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we're coming to you from cnbc's inaugural ceo summit in santa barbara, california. among other things this event is about leading through change, how ceos have navigated the complexity of the last two years, meaning the pandemic, the resulting supply chain, and rampant inflation and rapidly rising interest rates. take carrier global, the heating ventilation air-conditioning company in the spring of 2020. right as covid hit since then carrier's had to cope with supply shortages, the ups and downs of the housing market and a fed tightening cycle and real problems in nonresidential construction if they're trying to take control of their own destiny, roughly a month ago this company, carrier announce d a major shake-up they're shelling out 12 billion euros in cash and stock. that's a european company that makes energy efficient heat pumps, boilers and heating systems, at the same time they're firing security and commercial refrigeration businesses i like these moves

the company is trying to make itself into more of a pure play energy efficiency company, climate controls wall street hated it the stock immediately plunged 7% on the news, and since then it's struggled to find traction who's right? today we've got a chance to speak with the chairman and ceo of carrier global. take a look. >> dave, we're going to clear things up. you reported a great quarter second, you made a brilliant acquisition. let's do a do-over, the stock's been down. i think that's wrong you've got the floor. >> look, some business combinations are evolutionary. our business combination with viessman is revolutionary. we are buying what is unquestionably the premier company in the most attractive market in the world, which is european residential heating it's going to go through sustainable, predictable hyper growth for as far as the eye can see, and we're coming together with what is literally the premarrp premier company in the space

after we combine with veissmann we will be the only company in the world with a digital overlay for great interface. we will be unlike any other company in the world and the stock will do what it will do. as they see the power of the european residential heating market and the power of the combination, the stock will follow. >> we had a mild winter this year, and it made people forget what could be an existential threat to all the countries you're talking about, which is russia this may be the best way to wean the whole continent off of russia >> 100%. and that's essentially why the market is going through such sustainable, predictable growth. what's happening is the residential heating market is a replacement market 80, 90% of the market is replacement. your heatier fails you're going to replace it. because of what's happening in russia, up 17 countries that have passed regulation that require when your boiler fails, you have to replace it with an electric heat pump

only about 4% of the continent has electric heat pumps today. that's why you have such sustain sk able and predictable and hyper growth. >> one of the things when i talk to people about this, they say boiler, heat pump, they're the same thing they don't know the technology it's very different from what we think. one is clean, and one's dirty. >> 100%, when you're talking about a boiler it's either gas or oil or coal when you're talking about a heat pu pump, it's electric. that's why you have 17 countries either announced or banned boilers, whatever fossil fuel powers it in requiring a clear transition to electric heat pumps and if you picture the future of the world, everyone's going to get home about the same time, 6:00 p.m., turn on their air conditioner or heat pumps. and you're going to put max demand on the grid between 6:00 and 10:00 p.m. you're going to need someone who can kind of connect the dots with battery, with solar and do

a proper grid management with the utilities. it's where the puck will be going. it will be the only company that has that complete portfolio. >> you're offering a couple of assets i did like very much. i always believe as your predecessor taught me that safety always gets to be a growth market every single year. is that something that you want to lose? >> well, they are great assets we have announced we're selling our fire and security businesses focus really matters we have a very clear focus, which is to be the global leader in intelligent climate and energy solutions as much as we love the assets, they don't fit to our north star we found it when we spun from united technologies, a focus company really helps as great as these businesses are, i think they will be worth more in the hands of someone else than all of our investments, whether it's continued m&a or organic investments, they are going to be laser focused on intelligent climate and energy solutions

>> how many installers will you be able to have? >> veissmann has 75,000 install ergs, it can go global as we think about how to expand it whether it's in saudi or india or china or the united states, there's different complexities in every different market one of the things that attracted m max veissmann is the idea of creating a true global climate champion if you look at our brands and the veissmann channel throughout europe, this combination is unlike any combination that's been put together. we will take their technology, they have smart thermostats, digital capabilities, they have some of the best product portfolio in the world we have great channel access that combination is very powerful. >> this acquisition basically says we're not an hvac company, we're a climate solutions company. >> 100%. >> and a climate solutions company has long-term staying power, and an hvac company is a

cyclical business just like anything else. >> they have a good part of their portfolio that is services, and that has helped smooth some of the cycles, and also, remember, a replacement business it's actually quite predictable in europe. you're going to have a certain number of boilers that fail every year they are going to get replaced with something that's 3 to 4x more expensive. >> i get it. i understand, i think it's right. >> thank you, sir. >> i've got to tell you, this reinvention, you ought to change your name. change your name, i think it would be a good thing. sfw >> announcer: coming up, is this one stop finance stock poised to grow along with its clients? cramer's got the ceo next.

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what's it going to take for sofi technologies, the disruptive online bank to finally put in a sustainable bottom, even before this company became public via spac merger a couple of years ago, we were following it because sofi is the bank of choice for millions of young people i figured there was a great long-term growth story here, and sooner or later the stock would reflect that every time the stock starts roaring, something happens, something throws it off course sofi spent most of last year in the meat grinder because it's seen as a money losing fintech play, two of the most hated categories of the time earlier this year, the stock caught fire, totally loses momentum again because the mini banking crisis just look at the last few weeks. on may 1st sofi reported what i thought looked like a good quarter, clean top and bottom line beat, raised full-year forecast yet over the next three days, the stock lost 22% of its value.

sofi didn't sell any of its loans. the bears say that's because they couldn't find buyers for the loans. the bulls say sofi didn't want to give the stuff away, and they had all the liquidity in the world. they had 37% deposit growth in the quarter for seven sake who's right? why don't we go back to an old friend of the show let's go to the ceo of sofi technologies, get a better read of the situation welcome back to "mad money." >> jim, thanks for having me >> head on, why didn't you sell those loans? >> the biggest reason is we can get a better yield, a better return on those loans at about 6 plus % versus selling them at about 4% we think we can get a 6% or better yield based on the math of the coupon that we have, versus life of loan, versus cost of capital that's one reason to hotel loans. the second reason is we actually have the capacity to do that because we have a bank license, we have a lot more funding capacity we have $10 billion of depositings. we have $8 billion of warehouse lines and only used about 40% of

them as of the end of the third quarter. that allow us to hold loans longer to cap curture that bettr retur >> about 3% annual losses relative to that 13.2% coupon. the reality is that if we can hold the loans longer, we get that yield, it shows up in our net interest income line, which has grown to $200 million for the lending p&l, up from $50 million. when it was at $50 million, that wasn't a big visible recurring revenue stream, but the balance sheet we have is generating $200 million of net income that's recurring visible revenue. >> is the 3% loss going to 4 or is it coming back? i mean, 3 sometimes can be a hazardous level if it's going to go to four >> in the marks we take on our gain on sell model, the 104s they assume a life loan loss above the 3% we're assuming this year 5.2%

unemployment, a little over 2% negative gdp growth, and that's factored into our marks we put on the loans on our balance sheet. >> if that's the case, why aren't you being valued at this member growth or does this not matter is this some sort of fanciful metric that you're using having 5.7 million members that get a lot of privileges seems like something american express didn't get a great company. >> it matters a ton. we've had eight consecutive quarters of record revenue our ebitda is now greater than the stock-based compensation it will be profitable by the fourth quarter it's driven by the members which are growing more than 40%, the products which they take which is also growing to more than 40%, when coupled with our tech plat form that's also growing. >> let's say you sold off these loans, would it wipe out your profit profitability, it would please who? >> i'm not sure who it would please our responsibility is to

maximize and optimize relative to our capital that's equity to assets, that can go down to the low doesn'ts. because we have the capital to fund the loan, we can continue to do that, hold them, get a 6% return on assets instead of 4% what i saw in 2018 is we had rates rising we held our loans at that point in time. in 2019, the rates started to come down a little bit there's a lot more demand for the loans. it was a better roa than holding the loans and we sold them i think you'll see the same thing here we're going to hold the loans to maximize the roa when rates start to come down and there's more of a bid for selling, then we'll look at selling. there's no one answer. >> okay, so when there's no one answer, i actually looked at something that is on short supply i have known for you for half my life i have worked with you the part that i didn't know you at, you were an army ranger a west point graduate.

i have a hard time believing that the man i'm looking at that i've done so much business with is somehow trying to run some sort of flimflam operation at what point can you just say, you know what, let me show you how right i am, or is it just going to take a long tame to p play out >> we fought our butts off to get a bank license that license is allowing us to do what we're doing right now, which is picking the choice that's the best roa for the assets we have and therefore for the return our bank has been gap profitable for three quarters it delivered a 20% return on equity return already, and that's with the leverage ratio that's not optimized yet so we're finding the right balance between holding the loans and selling them, how we fund them to drive our cost of funding lower and to make sure we're managing our risk relative to liquidity in the marketplace. if we keep delivering these returns consistent sly and over time, it will show you. >> if you keep them in these returns and the stock stays at five, why doesn't another bank buy you and just make a killing? >> you have to ask the other

banks. i think we're building something incredible that's going to be a great value long-term. i tell the team, sometimes you have to survive a sell rating and an attack on your company. once you do, people understand the company better your results are rewarded better and the value's eventually seen. as tough as it's been, it's been a great period for us to educate investors and build a great stable understanding of what we're doing and how we're doing it. >> all this chatter, these cell downgrades or anything, the 7 billion, i got one right here, it says you need equity. you got to raise equity right now in order to be able to meet what the regulars would say. true >> that's untrue we have a 17% equity ratio, that can go down to the low teens. we have the capital, and we have capacity in our bank holding company leverage ratio those are two things that would indicate when we need to raise capital. the other important point in all of this is as you think about the revenue streams in the company, are those revenue streams sustainable, are they durable and are they visible

and having net interest income in this environment is incredibly valuable to us that means we don't have to start at zero every kwquarter. >> i think that the people have been trying to get me to say bad things about you they're not going to have good luck that's wait i look at it. >> i appreciate it, jim. >> absolutely. >> the ceo of sofi technologies, and yes, a long-time friend. you can say, oh, cramer, you're in the bag, i tell you you know what, never. na neither one of us. "mad money" is back in two >> announcer: coming up, it never hurts to build up your defense just a little bit more, with earnings afoot, is palo alto the right fit to protect your cyberspace and your portfolio? stick with cramer.

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we know businesses are cutting back on tech spending. that definitely does not include cybersecurity, something that became clear when we got at set of amazing results from palo alto networks after the close. panw i like to call palo alto the cyber security king pen. big position, tonight they posted in line revenues better than expected and a monster $0.17 earnings beat off a $0.93 basis. at the same time they gave good guidance for the current quarter and raised their full-year forecast, even though acknowledging it's challenging times. let's take a closer look at the chairman and ceo of palo alto networks who's also to celebrate five years at the helm, five

years where he's created a tremendous amount of value palo alto shares have gained 180% since he took over. welcome back to "mad money." >> thank you, thank you very much, jim, thank you for having me back. >> all right, so i keep seeing these companies in the business not doing that well, they're smaller companies, and i'm wondering what's happening i've been thinking that cybersecurity companies aren't spending companies decide to spend with one vendor, and that vendor of choice tends to be you >> well, jim, first of all, thank you, yes, it is close to five years, and i think five years ago when i filled the world and you and many of our customers were thinking about figuring out how to platformize cybersecurity and be able to do cybersecurity, what has happened to hr software, to crm, what has happened to financial software, they all said this is not something we want. we don't want platforms, we want best of breed solutions. five years later, north of 14

products in leadership categories, we have built platforms. we are seeing the beginning of platformization. honestly, it's very exciting it's exciting to be able to start a trend of platformization, especially when you're seeing an economically constrained market out there >> now, let me ask you, we're seeing constraint, you admitted it was a challenging time. it's also a time where there is artificial intelligence we keep hearing about it, it's everywhere i need you to help me. my partner david faber says in the end we could all be impersonated we could all be hurt like this i am saying there are people like takesh who can protect us i'm counting on you. use it yourself to be able to save money for your institution, which is maybe one of the reasons it's such a huge beat. >> jim, from my perspective, there are two very clear lanes for cybersecurity. one is, you know, we just told people we launched a product called xim xim is something we worked on

for five years we launched it four months ago we're seeing a huge amount of interest we applied north of a thousand ai models to try and solve the security problems from our customers. that's one area which i won't belabor. we've been using ai for the last seven years to solve that problem. the question is generative ai. it does audio, video, all these amazing creative things it does, which i think has huge applicability, both in how we do customer support, how we build products that become easier for customers to use i think there's going to be tremendous amounts of efficiency and customer happiness driven from that. i think on the other end, it obviously has tremendous opportunities in the way it can drive efficiency in how companies are run. i think i'm a full believer in that, i think i was talking to my cfo and our colleagues. the next two to five years, you probably could get it done as opposed to having to go scale head count in proportion to the

size of the business i think it's going to be huge from an efficiency customer satisfaction, customer benefit automation perspective to the extent where it is used by bad actors to create bad outcomes we have a team working on figuring out how could bad people use ai, and we have -- we're generating malware, trying to see customers predict based on that, in our labs to see how we produce solutions and make those available to all of our customers, so the bad outcomes of ai can be protected against, to the extent it's going to be used by people to create deep fakes or your voice or my voice, i think that's something going to have to contend with as society, and i'm sure we'll find work arounds towards that. i've already heard conversations about people having safe words to make sure they cannot be fooled by deep fakes or bad ai >> all right, i want to go back to something you said about efficiency i have heard a lot of ceos say you know what, we're going to use this and we're not going to have to hire a lot of people

no one has been able to identify a single person who does not need to work and needs to go to another company because of ai. will you please tell me where you're going to get those savings, what departments are not needed or can be slimmed down because of ai >> i think we were great i'll give on example when i had my team, it takes us about 12 to 15 days to build a marketing narrative around a whole new product. we took a lot of documentation, took our own propriety, without putting it out on the internet or sharing company secrets out there. we ran it through the ai model that did something that takes two weeks with four people, it did it in four hours, by pr prompting it, trying to tweak it there. six people spend two weeks doing this, got done in four hours as we begin to find these use cases around documentation, customer support, around answering questions to our employees, you will discover we kn need less people as we scale our

business to solve those problems because a lot of that will be pre-created by ai. >> got it, got it. thank you. now, it has been about five years. we're a leadership conference. i think nakesh aroar is a tremendous leader. what i need to hear is how you do it. you came in with a company that was good but it was a limited company. you had to really break 10, 20, 30 eggs to make some sort of omelet here. give us a sense of what you kne needed and how it worked. >> i think what is true is palo alto networks was an amazing company to start with, my prede predecessor, one of the highest inte integrity individuals i've ever worked with. it was a fragments injury, the largest play had 1 1/2 of market share, which is very counterintuitive in technology technology ends up being a

winner takes all market, whether it's search or social. technology ends up being a market where the winner takes all. i wondered what is that is different about security that is not allowing this consolidated vendor to appear, and i discovered it's the lack of platforms. and we spent the last five years building the platforms we did that because we had a phenomenal amount of cash on the balance shaeet. we did a bit of acquisitions to pay technical debt we went and did a lot of innovation the one thing i learned, you have to really focus on the product. if you don't focus on the product long-term, you're ted dead we put all of our energies and brain cells as a company to deliver the best products and o outcomes no company and technology has become great because they had a great head-of sales. we will build the best security products to solve their problems, get them the outcomes

they need in security. we'll take on the complexity we'll take on the problems while they go about doing their business, and we'll make it simple, easy to use, and something that delivers the security outcome of protecting them in their digital way of life. >> people keep telling me there's still some consolidation to come. when i see what you have in your platform, i don't see any of these companies that falter. i don't see why you'd want them in your portfolio. >> jim, i think we have a phenomenally comprehensive portfolio across multiple lanes in cybersecurity i think this portfolio allows us to be an ever green cybersecurity company. there's tremendous amounts of potential. i think with the arrival of generative ai and the tremendous amount of focus in the amount of energy going on in there, this is going to give us another lease of life, more efficiency, more margin expansion, more ability to go out there and deploy our products to more and more customers i think this is a gift that's been given to the tech sector, and it's for us to decide how we leverage it.

to we end up on the right side of history by winning, or end up becoming a victim of this. >> all i can say is congratulations on the first five years, amazing outperformance, chairman and ceo of palo alto, thank you, nakesh. >> thank you, jim, thank you very much. "mad money's" back after the break. (vo) this is more than glass and steel... and stone. it's awe. beauty. the measure of progress. it's where people meet people. where cultures and bonds are made between us. where we create things together. open each other's minds. raise each other's ambitions. and do together, what we can't do apart. this is space for dreams. loopnet. the most popular place to find a space.

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over are you ready? tom in connecticut, tom. sfw >> caller: hey, cramer i have a position in cliffs, do you consider -- a buy, hold or sell? >> i would cashier that and buy the stock at nucor i want you to trade up let's go to kevin in texas. >> caller: first time, long time honored to speak with you, sir >> okay. thank you. >> caller: i'm retired living off dividends, i saw this stock had a 12-year history of stability and paying good dividends before the pandemic, so i bought the stock during the pandemic when it was on its way back up from the trench, but now i'm down 67% should i sell or hold chimera.

>> it should be sold, it's been a terrible stock for a long time and will remain as such. mark in new york >> caller: booyah, jim what's going on >> don't quit your day job, my friend. >> caller: you called the top in gold, and sure enough it crashed all the way through october. well, i was the wanting to get back into gold and wanted to ask you about newmont corporation. >> gold has been through the ringer and come back on the other side and i think that is a good stock to own. how about quinn in florida, quinn. >> caller: what's up jimmy chill, i want to talk about quantum computing and ai quantum computing is five years away, but ion q is claiming they are to reach by 2025 with the beginnings of the ai bubble beginning to form, is now a time to start building a small position in quantum computing. >> i know it's big you know who's going to be solving it ahead of everyone,

it's genjensen huang from nvidia if that gets hit, i want to buy buy buy because of quantum, not just because of what he's doing in generative ai i'm not done yet, i'm going to bury, california, bury >> caller: hey, jim, how are you? >> i am good how are you, sir >> good, i'm barry from california i'm a first time, very long time and an early subscriber to the club >> love. how can i help >> caller: met you in redondo beach on saturday. anyway, i'm calling you about -- shyft. >> last mile delivery, i'm going to suggest that you go with gxo over this company, but it's an interesting spac we talked about it when i was signing bottles, i probably would have said, respect, i think it's okay.

and thank you for coming to see my wife's production how about natalie in new york. natalie. >> c natalie, speak to me, come on. >> caller: thank you so much for taking my call what are your thoughts on oracle stock? >> i think it's still too high i think it's coming down a little i want to buy it below 90 if possible and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade coming up, is real estate headed for a reckoning? cramer takes you to the top four next

everywhere i go, including beautiful santa barbara, all i hear about is the looming commercial real estate catastrophe. i'm told it could be so devastating that many banks in this country will go under because there's so much leverage keyed to buildings that are seeing down terms all over the country. it's not just the work from home situation or even crime which always gets thrown into the mix with retail. it's the fundamental overbuild with the dearth of tenants but a ton of debts that's kind of like mold creeping its way through the system rotting it. there's just one problem, i don't believe it i don't believe it's the end of the banking world as we know it like i keep hearing. anyone freaking out about commercial real estate right now, where the heck were yo in

the '80s and '90s when one-third of the savings and loans in america wednesday under. it seemed like every snl was in on it and some of those in california, texas looked big enough to take down the entire financial system plus, we had rampant fraud in the crisis there's nothing comparable to that there were loans granted to people or companys that didn't exist, to buildings that didn't build. contagion spread like wildfire including my hometown of philadelphia by the time it was over, the savings and loans needed a bailout of humongous proportions. something that was unprecedented until the great recession hit. when it came to commercial real estate, the s and l crisis was worse than the financial crisis. of course because of all this was happening in the '80s and early '90s nobody who o'pines about stocks professionally even knows that it happened, how quickly the economy bounced back

as iconic institutions disappeared overnight. i know well. what matters was whether you could get a borrow, meaning whether you could find shares to sell short because everyone knew the reckless institutions that were in trouble. they tldisclosed their bad loan. their stocks kept climbing because of the short squeezes. they were all eventually seized and then the profits were immense. once the savings and loans went down, we went after the real estate investment trust, crashed them and then the banks themselves and then one day the government decided it kneneeded to get into the property dizbusiness to cle up the mess. it invented the rtc which took over failing institutions. those rich enough to buy things made fortunes, creating the first big billionaire class. it took six years for the entire process to pan out, and it panned out magnificently for the nation and the banking system. we got a recession in 19 91 because of it. the federal reserve literally

created a yield curve that allowed the remaining banks to recapitalize to save themselves. the s and l bottom came in october of 1990, right before the united states got involved in the first iraq war. it created such a strong rally that by the end of february 1991, you were tdone for the year now we're hearing the same story, except it's probably just one-tenth the size of the s and l crisis it's so small that it's impossible to see on most bank balance sheets, and these days banks really have to disclose things they didn't have to back then. a lot of it's on insurance company balance sheets some of it's owned by real estate investment trusts the worst will go under and be sold and developed frankly there ant that many of those these are bigger buildings than back then. it will be a real pain tearing them down. it's usually way too expensive to try to convert them into residential real estate. they are worth more blown up, all which is to say not tired of hearing about the coming

commercial real estate disaster, i want to put it in the context of been there done that, and this time there will be no resolution trust company you know why because we just won't need it. i like to say there's always a bull market somewhere, i promise to find it right here on "mad money. i'm jim cramer, se tonight, the surgeon general calls social media a profound risk to kids but is tiktok really the new tobacco? can elon musk turn twitter into the presidential races go-to platform what's going to happen tomorrow that you have to hear about. first, bud lite fizzles out. now target could be in the cross hair no driver, no problem. what fee six nix is about to do that has some turning heads. one real estate's giant

moves to