he's up there with tom rogers. he will go down as a better business person than lacrosse player alibaba below 80, mel. >> see you tomorrow for more "fast money" at 5:00 "mad money" with jim cramer starts right now. 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's not just to entertain you but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. nvidia own it don't trade it that's been my mantra both for

the show and the cnbc investing club other than apple it's the only stock i've ever said that about in decades and today you saw why. yes, today nvidia soared 24%. ♪ hallelujah ♪ or $75 the largest single one-day move in the history of large capitalization stocks. it's a reminder that even in the choppiest of markets which we have some companies can transcend the madness even of washington and if they do well enough they can color the whole tape that's how we ended up with a day where the dow dipped 35 points, s&p dipped .8% but the tech heavy nasdaq went up 1.8%, aided yes by nvidia and its multibillion-dollar companies. there are so many companies that work with this company lots of people asked me how i knew to anoind nvidia as own it don't trade it along with apple.

first, before anybody accuses m before they became great for the charitable trust but i've also picked some stocks that i'm not proud of and the pain they inflict -- >> the house of pain >> -- is with me day and night i own up to any loser, though. and you can see the whole thing warts and all by joining the investing club it can be very embarrassing to admit a stock mistake but i'm proud i'm one of the few who shines the light on them even as i wish of course i didn't make them in the first place. that said, sometimes winning in a stock i like as much as nvidia requires a gigantic amount of fortitude. it requires an almost insane degree of commitment for example, i renamed my dog nvidia as a badge of fealty to the company. more importantly it requires you to believe that not all businesses are created equally some are better than others. now, i know that may sound painfully obvious but it really isn't. remember there's a whole industry of people the largest and most virulent who tell you

it's impossible for you to reliably pick winners, that you're not smart enough, that you should just park all your money in index funds because you don't know how to do it. people harp on harp on and harp on this notion of now single stock rhys aring didn't exist in the he a80s where if you even attempted to find the next nvidia you're considered to be dead wrong they say it's impossible so just try to mirror the market by owning all 500 stocks of the s&p 500, both good and bad, accept m i don't dislike index funds. i'm in them myself but you know what, this particular part of the philosophy of stocks is stupid some companies are indeed better than others. their stocks tend to do better than others. and often it's actually not that hard to he will it the difference between the good ones and the bad ones despite what so many people, some good, some not so good, some very self-serving, tell you nvidia in particular was i think extremely gettable for two simple reasons first, there's always been a deep moat around the company in this case the moat's name is jensen wong. he's the predictably fabulous ceo.

i compare him to andy reid of the kansas city chiefs we trust a coach like reid to regularly pull off miracles. why can't we trust a visionary ceo with a great track record to do the same? i also call him da vinci because he's the most well-rounded individual i have ever met in my life well-rounded genius, i should say. for me nvidia was gettable for the simple reason that other than in one moment where it simply couldn't hide its greatness from the crypto maniacs who used nvidia's graphics cards to mine ethereum, it always started out looking expensive but turned out to be dirt cheap always we remember the process the most reliable predictor of higher stock prices is whether the company can crush wall street's earnings estimates. the consensus going to this report was that nvidia would generate about $7 billion of revenue in this quarter. turns out they were on track to make 11 billion. 4 billion more than people thought. i'd never seen anything like it. analysts' projections were way short of reality and that's how you get this kind

of 24% rally in the stock at such a huge company. how did nvidia pull this one off such a spectacular beat when everyone in the business was shocked? once again jensen wong disrupted the world of technology. he came up with a new way of digital thinking that enables accelerated computing and generative ai process using nvidia's proprietary h-1 chips among others that his team designed and they're truly special. these are graphics cards, not traditional cpus something jensen did to get around this whole moore's law, that's a rule that said chips will only double in power every two years and that it's pretty much -- let's just say it's always supposed to happen until it stopped see, jensen told me years ago that moore's law was dead, dead. because he had come up with a way to make graphics cards that were more powerful and even more efficient even if they were bigger because there was increasingly no benefit to shrinking semiconductors the modern giant advantages were over the reception over his highly efficient energy-conserving, because this man cares more

about waste than anyone i ever met, high-end cards was insanely strong the big boys, alphabet, oracle, microsoft, meta, all understood if you use nvidia's chips you can speak in the vern ack lar of chatgpt or any of the artificial intelligence languages being developed. i say speak in the vernacular because that's what generative ai does. you can enable all this incredible artificial intelligence stuff that everybody's so excited about doing now. best of all there's absolutely zero competition none i've never seen anything like it it's a monopoly by genius. or as jensen's saying, we have more than a trillion dollars worth of computing power in all those data centers those machines in there are equivalent of the iphone 4 nvidia just created the iphone 14 everything has to be upgraded. it's a ten-year upgrade cycle.

normally a tech company might have something in beta that can be tested over a few years' -- maybe a year's time if lucky and then, well, perhaps it can move its scale probably it can't. the yield's not that great but all throughout the period where semiconductor companies were moaning there was so little business last year what was jensen doing he was ordering h-100s by the thousands from any semiconductor plant he could find including the massive semiconductor company fabz, the world's largest. he was picturing a huge number of h-100s, betting he'd be right. stockpiling, procuring, ready for demand the result, he has all the world needs and he's got them in six weeks' time. not six years. six weeks. hence the big beat because he can ship right now now back to nvidia, my dog my dog's original name was everest. he was a mutt saved from a tennessee kill center. he was my buddy. and he answered to me, especially when i had a steak in my hand. usually the same sight of food

i renamed him nvidia because every time i met jensen he had something new, something that allowed him to crush the estimates just like he did last night and something that made me smile. jensen gave everest, not me but everest an identity card in case he wanted to drop by nvidia's office i did have an inkling a couple of times that this h-100 would be hubge when i went up to nvidia's world headquarters and jensen wanted to show me something. he said i should ask this machine to draw anything i wanted what was i wanting i said cramer fave cezanne painted still lifes. i asked it to paint me a cezanne seascape, challenged the darn thing. 30 seconds later i had one kind of like cezanne cribbing it from monet, though i came back and told everyone what happened. i told faber over there, it's unbelievable you've got to see one. then he made one that looked like me. he had one at the globe theater to watch henry iv part 2

it was commercial. it was impossible. except for jensen. then one day we got some haiku written by this chatgpl she wro. by the way, jensen was in on that in 2017 jensen knew. he had the cards when all wall street -- all of them, finally came around to generative artificial intelligence they were so far behind him we're now in a new age of computing. hence the biggest percentage gain for a giant company in the whole history of the market. ♪ hallelujah ♪ >> the house of pleasure >> nvidia's the rescue mutt in -- well, he's in dog heaven right now. and nvidia the shareholders' base as my late mom would say, they're in heaven on earth frank in michigan. frank! >> caller: mr. cramer. i'm so excited to speak with you. thank you for taking my call >> absolutely. >> caller: first i want to give you a quick tip. go long on the detroit lions this year. they're going to be the nvidia -- >> you're the second person that's told me in the last day i'm going to have to be a believer of that

what's going on? >> caller: i initially bought shares in bj wholesale at 28 bucks and have been adding shares on every large pullback and it's been working out pretty good with them growing, you know, from the east coast at 137 stores and the larger footprint going west they're profitable, they've got a similar membership model as costco, should i be adding -- >> no, i didn't like the quarter. costco's quarter being undersold. right now as we speak people are selling it you know why because they don't know what they're doing! they should go to a costco -- get a black card and watch your life change before you let's go to valerie in florida valerie. >> caller: hey, jim. >> hey, val, what's up >> caller: hi. i'd like to hear your take on nike >> okay. so nike is right now caught in china. let's say purgatory. people think it's being hurt in china. i will tell you this john donahoe spoke at the ceo inaugural council and he sounded darn confident i don't think this stock's going

to stay down for long. they're too smart. why don't we go to bob in connecticut? bob! >> caller: jimmy boo-yah, baby. >> boo-yah, bob. >> caller: i've got a train wreck. i'm down 72% in generac. i should have followed you a year ago what do i do now >> i can't sell it down here you can't sell it. but this whole cohort -- you know, look, even interface, wes a great company, has been struggling a lot of these companies turn out to be a little more finance-oriented, they tend to be really levered to rates i don't want you to sell it now because if rates start going down that stock is going to go up i have been telling you to own nvidia and not trade it. club members now i hammer it every single day if you ever needed a reason to listen, just look at today's historic move. on "mad money" tonight nvidia made the headlines yesterday but don't forget all the other tech companies that reported last month including splunk

i'm talking to the ceo then has it fallen out after investor dade but could it be a cash cow an under the radar day to play the strength and it's filled with technology. i'll reveal the name when i sit down with the ceo. so stay with cramer! >> reporter: don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer hashtag mad tweets send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss setngomhi head to madmoney.cnbc.com.

♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house.

don't forget about all the

other tech companies that reported last night where you're gawking at the huge gain in nvidia take splunk, the cloud software play that helps its customers glean insights from their machine-generated data both for regular analytics and cybersecurity. this has been doing pretty well ever since they brought in gary steele as ceo last spring. and last time we got another gem of ai quarter. splunk posted better than expected sales and more important much better than expected earnings. insanely strong cash flow. but after rallying at the open the stock lost its mojo today finishing down 1%. what's going on here i've got to tell you know i like this company let's check in with gary steele, the president and ceo of splunk, get a better read on the quarter and what's next. mr. steele, welcome back to "mad money. >> thanks so much, jim >> let's get a little scene set. we've known splunk for a long time in most of the interviews we're always about you've got some growth but you're not making money or wow, you're making a lot of money but what happened to growth? you have now made this company into a cash machine with growth. how were you able to do that in what is basically a very short

period of time >> when i joined it was one of the first things i did i just set the course on ensuring that we were balancing growth and profitability and the team just did an amazing job at driving efficiency across the business and it really showed up in our free cash flow and we upped our guide for the year in terms of free cash flow. so we feel like we're pointed in the right direction delivering great results and feeling really good about it. >> there's a couple of things that have been going on that sometimes gets me a little bit upset. when i analyze companies you guys were talking about artificial intelligence and how to detect cybersecurity problems let's say five, six years ago. now suddenly everybody's discovered it. could you please explain what it's like to be an original as opposed to someone who's just using the words? >> yeah, no, it's sort of interesting. so we've seen great benefits in ai broadly across the platform for some period of time. for example, we released a machine learning kit in 2017 that saw great results

and i think the thing that's exciting for me is in this whole area of large language models and chatgpt we had a solution out, an assistant solution that helped generate the language of splunk to drive data analytics we released that last year we're learned a lot from that. so we're excited about the advances in technology because at the end of the day we think there's going to be great opportunities in the segments we serve both security and all the way into i.t super excited about it >> i think we've always felt there's two separate -- one that's going for kind of analytics, the other going for cybersecurity. tell me about this mission control product because it seems to bring together all your strong points. >> yeah, i think one of the things i've been focused on since i joined a year ago was simply how do we ensure that our secure leaders and security practitioners are getting great outcomes for splunk in mission control brings all that together so it's basically single pane of glass that allows someone using

the solution to have access to all the capabilities, whether it be security analytics or orchestration and automation, or thread intel, all those capabilities integrated into a single pane of glass making their lives easier >> is that one of the reasons you've been getting some contracts that i've never seen splunk get i'm talking about some large eight-figure contracts including one with a government agency that these -- i thought these eight-figure deals had eluded your company for way too long. >> it's interesting. as we've indicated in the past the macroeconomic environment has impacted some of our cloud migrations but this deal you're referring to was our largest public sector cloud deal ever. it was an eight-figure deal. the team did an amazing job helping that customer think about the cloud. but this is a customer that's hybrid they have an on-premise splunk instance they're leveraging the cloud

now. and we think that one of our big advantages is frankly helping customers get to the cloud on their time frame but also leveraging hybrid. >> i think -- i did want to talk to you about another product -- i never knew about something called billions of traces. you're looking at traces with trace analyzer for apm this is something i've never talked about with splunk maybe you can explain it to people >> you bet very simply, as organizations are deploying more and more applications in the cloud, these are modern microservice-based applications that have a very complicated deployment environment and as a result of that you need to be able to understand what's going on across all those components. traces allows you to do that and so we're seeing more and more customers as they move to modern cloud architectures, they need tools that give them visibility as to what's happening in all those application xloents. and we're really focused on helping our customers modernize

and leverage these modern cloud architectures to be more productive >> gary, i'm starting to see some companies run out of money with good technology i'm seeing some other companies putting themselves up for sale that are in your space i know you know how to do deals. is it time now that you've made the balance sheet great, now that you have consistent a.r.r., to start playing some offense and buying some of these companies or are you pretty happy with your team right now >> we're really happy with the organic path that we're on we have had good success doing smaller tech acquisitions. we did one in the fall known as twin wave. that's delivering great results for our security users we will continue to look for tuck-ins i don't anticipate we'll go out and do large transformational deals but we're thoughtful about where there's great opportunity, amazing talent, value that could be delivered to customers. we'll look for that as well. but we love the path we're on. >> one last one i think is important, i've never seen you dominate -- get a dominant contract in financial services i know you've had some

it always turns out that you're sharing it with others but if you're doing an eight-figure with a leading financial information service company that's your company, how did you get it >> you know, it was an interesting set of circumstances. we'd had an established relationship with a customer they needed more capacity. they were leveraging splunk more broadly across their enterprise. and they wanted to do tool consale daigs. frankly in this economic environment customers are trying to figure out how can they tighten their belt and we actually helped them tighten their belt by routesing the number of solutions they had employed and they standardized on splunk. super proud of that. >> i think this new splunk, the one that's get profitable growth, is the one that i've been looking for and i knew it's something you would do because you did it the last place you were at. i want to thank gary steele, president and ceo of splunk. great to see you as always, gary thank you. >> yeah, great seeing you, jim thank you. >> "mad money's" back after the break. >> announcer: coming up, make your portfolio purr? the humanization of pets barks

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once we get past the debt ceiling crisis the market's going to be the closest it's been to normal since 2019. and when the world goes back to normal we'll circle back to one of our absolute favorite sectors of growth which is the humanization of pets for years i've been saying americans increasingly treat their pets as full-on members of the family and that's still going strong. as you know from the top of the show that's where we are which brings me to zoetis, which makes vaccines and medicines for both livestock and companion animals. they benefit from the pet theme but also our collective love of meat that's why they call the duality of man while this stock's gotten slammed last year, it was down nearly 40% which made no sense to me at all, making a comeback in 2023, or at least it was until the debt ceiling talks started taking up all the

oxygen doesn't matter that they reported a pretty good quarter last month fortunately they held an investor day here at the new york stock exchange and it was an effort to get the corporate mojo back and i think it's going to work. now i want you to get the same pitch that the professional got, maybe better let's dig in with kristin peck, old friend of the show, ceo of zoetis welcome back to "mad money." >> thank you so much it's great to be back, jim >> we were just celebrating on the floor of the exchange memorial day and what it means so much to our country for our fighting women and men and to remember them and honor them it turns out that pets play a key role in military families. >> yes no, we've always been proud to be supporting the military and really paying for the care of retired military dogs. but military pets are really important to the families as they're deployed across the globe, those pets are really important ways to keep that family connected, to provide stability for the spouse or for the family and it's really important to the mental health more broadly as we talk about it all the time with millennials and gen z, but for our military those pets are a

really important stable part of those families >> we also know that for the elderly they discovered particularly during covid that pets are about the best companions you could possibly have and even longevity is connected to owning pets >> yeah, we've done a lot of research on the human-animal bond as one of the fundamental drivers of our pet care business and the fact is 95% of pet owners see their pet as an important part of their family 90% of pet owners would spend, quote, whatever it takes to take care of the suffering of their pet if it got sick and i think it's because of that human-animal bond. that important role that pets play in our mental health but our physical health as well. >> it's interesting to see a lot of the pet plays post-pandemic have actually fallen down. but yours, because it's a science-based company for pets, i think has just continued to accelerate can you kind of explain the difference between zoetis and companies that just cater to pets, food or pets even as, say,

veterinary through major chains? >> sure. i think what's differentiated zoetis specifically over our ten years is that we're invested in innovation and we've really been disruptive innovation to the veterinary space, which supports both pets and pet owners we've brought innovative solutions which you talk about all the time >> all the time. >> like app roh quel and cytopoint for atopic dermatitis. but one thing we announced today which we're super excited about is the difference we're making in osteoarthritis pain with labrela for dogs and silencia for cats today as you probably heard we announced those two products alone we believe will deliver 1 billion plus in sales for zoetis at their peak sales in the next three o'five years >> i'd like to think we've never been negligent pet owners. but we had a pet that had this and we did not know because pets don't talk and we weren't observant enough how do we know when we need these for our pets >> well, with dogs it's a little

easier you sort of notice because you're constantly walking that dog. you notice sometimes the mobility sometimes they'll gain weight because they're not getting up and exercising enough. but to your point, it's not always obvious and for cats it's really challenging. and one of the exciting things we're doing is leveraging ai, artificial intelligence, to help diagnose cats. so we have cat pain iqwhere yo can basically take a video of your cat jumping or walking or going down the stairs and you can upload it and we can analyze that video and tell you whether or not your cat is at a high risk of osteoarthritis or sort of where that is in the disease. you can take that video, share it with your vet and make an appointment. >> i have to tell you that's incredible having had many, many cats and never having -- unless witnessing they were great jumper cats and they couldn't we had no idea. now, i want people to understand the revolutionary world that you've created we had a cat -- a dog wearing an elizabethan collar for a long time maybe you can explain what that's really like and then what you did. what you did to free dogs of

that >> yeah. what we came out is a product called aproquel and it really transformed dogs' lives. and then we added innovation on top of that. a monoclonal antibody called cytopoint which is a monthly injectable we built on top of that with appoquel chewable in europe. that's worth $1.3 billion and growing double digits. >> when monolex came on, dogs were wearing like a lampshade. you said wait till you see what happens. the other candidates, the other spinoffs that have been for animal health have been also rans you guys have been incredible. and as incredible as you once explained to me for livestock. and there was a chart in your amazing, i thought this stuff was so good, livestock poised for continued growth only 2% to 4% growth how is it possible in a time of incredible inflation that we

don't have the herds being grown like mad is it a health care issue? can they not do it is it issues of, say, illnesses that you haven't gotten to yet or you're trying to solve? >> no, first of all, we think there's fundamental drivers of livestock. to you are why point, it's grown historically around 3%, 2% to 4% and we're projecting it to do that going forward animal health, to your point, is a very resilient and dynamic industry and even in recessions, in 2009 still 3% and on average goes 5% to 4% livestock has grown a little slower than pet care if livestock's 2 to 4, pet care's more like 6 to 8. and really the reason livestock doesn't grow as much is you don't have treatment for chronic diseases of long life. so as you think about dermatology and o.a. pain and these areas where we're driving billion-dollar franchises, you don't have that in livestock because the animals don't live as long. we think there's still really exciting innovation and importantly the demographic trends of 2 billion more people

by 2050 those people are going to be eating more protein and need more sustainable sources of animal protein zoetis is investing there and i think we can continue to grow. >> kristin, a lot of people are always mystified when they hear that there were 2 million chicken that died over the weekend. or swine overnight can you tell me what happens at these places that you could make it so that every single one of these animals catches it in a weekend? >> well, what really happens is once -- you look at these influenza which you and i talked about a lot. >> yes not talked about you've explained to me because you're the expert and you have is it. >> the challenge is once it enters a herd or a flock you really have to -- the whole flock is at a risk of infection. that's why it's relatively tragic it doesn't sometimes mean that everyone already got it. but once it's in a flock there's really no choice so what we're really focused on at zoetis is prevention and biosecurity and helping producers across the globe be able to do that. and eve been investing in that

as you know for years and providing more preventative treatments with regards to high path avian influenza as you know right now there is no approved vaccine in the u.s. we're certainly working with the usda as you know to get one. >> will you be working with walmart which just announced a new initiative that i think is terrific because you basically have what you said with cats, telehealth for animals walmart covers 200 million people good thing for the pet industry? >> yeah, so i think telehealth certainly has an important role. but in the u.s. and most of the u.s. you first have to establish what's called a veterinary-client relationship and we're really invested in that because as you said, the pets can't speak. so there's only so much you can see on a video but there's a lot that can be done in telehealth it can also help provide leverage to vets who are really busy today with all those new pets that were adopted, as you know, throughout the pandemic. >> and more and more it didn't stop most of those trends reversed but not the trend that you are very much a part of. i want to thank kristin peck, the ceo of zoetis. i also want to tell you guys as pet owners and people who have

saved animals and stopped animals from being killed, zoetis is probably one of the most important companies in the world for doing the right thing for pets thank you very much for coming to the show. >> thank you absolutely >> always great to see you "mad money's" back after the break. >> announcer: coming up, fortune favors the bold. but should you favor fortune cramer's got a key home and security player, next. ah, these bills are crazy. she

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we know the home builders are doing much better than they're supposed to be doing at this point in the business cycle largely because we've still got a massive housing shortage but there's a lot that goes into

a house, which means there are many ways to play this theechl take fortune brands innovation which makes water fixtures, outdoor products, security solutions. you've definitely seen their faucets but probably don't know their innovative water solution programs for preserving water and protecting your house in the hazards of water damage. when the fed started raising rates aggressively last year, fortune brands sold off hard because this kind of company is supposed to do badly in this situation. however, last fall we realized the housing market's much more resilient than anybody thought and the stock's come roaring back even as it's pulled back recently just on some debt ceiling fears. yesterday at the cnbc ceo council which you know we love, the summit in santa barbara, we got a chance to speak with nick fink he's the ceo of what i call a brand new fortune brands innovations. take a look. >> nick, i didn't think i'd say this even, say, five years ago but your company is now the technology leader when it comes to parts of your home that you care about

and probably 9 one people care about more than any other is water. i'll give you the floor because i don't think people realize anything what you're doing and it's the moffett exciting thing in housing >> thank you we're super excited about it we're in the business. moen's the leading brand we have the portfolio. but when you think about whole home water management, plumbing, it really hasn't changed in thousands of years and now we're at the cusp of it's going to get digitized and we have an ai system that can algorithmically learn how water flows to your house and prevent small leaks, prevent catastrophic damage, which is bigger than fire and burglary combined, and offset, you know, a huge amount of water loss in communities. that's the beginning we're now putting an ecosystem around that. we just announced irrigation at the beginning of this year we're going to do smart irrigation in a way it's never been done before by actually being able to direct water only where it's needed in the garden. >> and if it's raining it doesn't go off mine does. i'm always feeling what a terrible thing, it's raining and

i'm watering >> yeah. we're even going to do a step better than that which is it will measure the soil moisture and decide exactly how much water each bed needs that's the number one use of water in the residence you save all of that it's just the cusp of being able to manage a home completely differently with the digital mindset. >> i wanted to start with that because i think people can talk interest rates all they want what matters is what you're offering are premium products in a segment where everyone wants to make their house better it's hard to even move because you've got a mortgage lock-in problem. it's very clear that people's homes are still the greatest investments. and if you want to upgrade your home everything that you offer, including your new acquisition for premium door hardware represents where to go, what to do >> yeah. as you know, home equities are at all-time high people are still sitting on a ton of equity. home's been a really stable asset for people they're excited about them and they're going to continue to invest there's just not enough housing.

so whether you build new or you renovate, long-term this is a great spot to be and you're seeing it in the consumer resilience right? you give consumers even a little break on rates they come right back in. but as you know, we rebranded the company fortune brands innovations because we will focus on the most innovative parts of the home. and areas that have secular tailwinds. things like connected. water management material science and we think there's a ton of opportunity. and consumers love the innovation if we keep bringing it with the brands it's going to be very powerful >> so do i go to toll brothers where they call it you can spec your own house and say look, i want the portfolio that comes from fortune, or do i do it at home depot or do i have to use a very special designer who might cost me a lot of money >> we try to be agnostic the consumer shops all around the channels, right? and we do a lot of consumer work they're an omni channel. they might look online, go pick up in store, vice versa. so we generate the consumer pull and then we work with our channel partners to fulfill it,

whether it be the builders or big box customers or some of our pure play e-commerce customers >> i know when you do some of these more complicated things there are supply chain issues and there are also installer issues are you -- when i place an order with you is it six months or can i actually get it when i want? >> you can get it. >> you can >> the last couple of years was rough from a supply chain perspective. we leaned in hard. we put in a lot of inventory to support the channel. our channel partners have told us we were best in the industry. i think that helped with share gains. but with a couple exceptions here or there it's mostly sorted out. you can get what you need and we're kind of going to roll forward. >> for the people who are more trading which i don't encourage but you should know the inventory's come in pretty low you're at a good comparison for the next two or three quarters just for those who want to do that kind of thing >> we're still taking our inventory levels down. we took out a lot in q1. we'll take out more this year. channel inventories there could be a couple pockets here and

there but a lot of that is neither here nor there we saw a couple of places may be even a little lean we'll see. >> talk to me about the acquisition that just closed because for me it's a force multiplier you seem to be the only one at the high end >> super excited it just settled so we've announced we should close toward the end of next month we think two parts to that. right? there's the mtech, which is the leader in premium door hardware. bar none double-digit growth over the last few years spectacular margin business. it fits right into our luxury portfolio. it's going to take that business -- most likely there. a lot of share distribution. and it's going to take that business to be a global platform north of half a billion dollars and one of our fastest growing businesses >> including china >> including china and europe looking a little better in the middle east. big force multiplier for that

business and the other part is the yale and august connected business. yale globally, august for u.s. and canada and that is essentially about product. you touched on our water we've got connected security we're looking at stuff in the door space so to be able to augment it with an additional 100 engineers coming across doing firmware, software, some mechanical engineering, it just gives us scale to be able to win in the connected space. super excited. >> when i look at the panoply of investments someone wants to do with a home you can buy a home builder, you can go home depot but those have their own issues involving let's say security and theft at home depot or mortgage rates for toll you are like the premium player in a world that is going premium. i don't even know if you have any competition in the lists stock environment because you're much more like lvmh for homes. >> that's where we're pushing. and we're creating stuff that

hasn't exited yet. in how all these things work together in bringing these bespoke little brands and creating an umbrella like a fashion house >> it really is. the video, by the way, the website's real clear, you can learn about all these great things nick fink, ceo of what i call a never before seen fortune brands thanks, nick >> thanks. coming up what's your on mind, cramerica? give us a call the "lightning round" is storming the nyse. next

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it is time it's time for the "lightning round" on -- play until you hear this sound and then the "lightning round" is over. are you ready skee-daddy time for the "lightning round" on cramer's "mad money." i'm going to start with david in florida. david! >> caller: hey, jim, how are you today? this is david from lakewood ranch, florida >> love it what's going on? >> caller: jim, i'm a long-term listener i'm currently long on zscaler. the revenues have been up 50% year over year but still operating on the loss. i'm sitting on a pretty sizable loss >> no, you're sitting on a gold mine that portfolio is really good. although i do prefer palo alto networks kyle in illinois kyle >> caller: jim, hitting you with a rating for ticker ioba >> okay. whenever i see these novel cancer therapies that bust tumors i also say it is okay to own purely for spec because you might always get a takeover. but remember, that company's

losing money hand over fist. manny in connecticut manny! >> caller: boo-yah >> boo-yah, manny. >> caller: lucid motors, jim >> no. you've got to be -- if you're going to come on this show you'd better be starting to make money pronto rooney mcfaddy. let's go to mark in wisconsin. >> caller: dr. cramer. first off, thank you for the plug on magellan that worked out very well. >> excellent yeah, that got a nice takeover bid. thank you very much. >> caller: i currently own this stock and i'd like your opinion if i should add to it. the ticker symbol is nvgs. navigator holdings >> i do like it. i do like it but you know, i'm partial to anything that's liquefied gas, i am a buyer of. i know i'm probably too liberal on that but i think it's the way

of the future and that's one of the reasons i've got to tell you what to do in a conservative fashion sempra energy. let's go to john in kentucky john >> caller: hey, jim. questions about scloedinger incorporated sdgr they're a drug development company for the discovery of new candidates for drug development -- >> and they're about to turn profitable which is what i like because i'm tired of all these companies losing money i'm okay with that one how about danny in florida >> caller: hello, jim. first-time caller, long-time listener thanks for what you do never retire >> i have no plans to. thank you, though. thank you very much. what's up? >> caller: i know that commercial offers are not the flavor of the month but if you believe in the comeback of new york what about ornato >> you know what, the management there is so strong but the tug of war against new york is so bad i'm not going to recommend

vore vornado. i'm sorry. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, the debt ceiling game of chicken could be from a '50s movie but history's real lesson on this one was taught in 2011. learn it next. you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. ah, these bills are crazy. she

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everyone keeps acting like this whole debt ceiling debacle is happening for the first time. like it's new. i can't believe it how short is our collective memory we're currently on almost exactly the same path we walked down during the disastrous 2011 debt ceiling fight that means everything could be on the table from government defaults to rating agency downgrades and the longer the situation lasts i've got to tell you the uglier it will absolutely be >> the house of pain >> now, i'm not a political guy and this is a highly politicized issue. but in the end i think the republicans have a huge edge in negotiations simply because joe biden's running for president next year and speaker mccarthy isn't. i don't know who ultimately gets blamed if they can't make a deal and your social security checks come in late but i certainly wouldn't want to be the president who presided over that scenario going into an election year maybe that's not fair as some of the most extreme republicans want to deliberately tank the negotiations fairness has nothing to do with it, though

either way, unless they can cut a quick deal the ratings agencies will consider downgrading our government debt precisely because of what now looks like systemic political dysfunctionality which the polls may not realize this is a completely legitimate reason to cause investors to worry about our precious full faith and credit so what happens last time when we were in this situation? well, take a look because i've got a pretty visual skrdescript of it. on july 22nd of 2011, when we began to realize things actually might not come together, that we might default within a couple weeks, the s&p 500 stood at 1345 every day the process got more toxic and though there were moments where it seemed like we were making progress those moments never seemed to last for an entire session. by july 25th we were down to 1337 in the s&p. by the 27th we had fallen to 1304 29th it was 1,292. look at this look at this process then, and this is crazy, when we crossed into august and actually

got a deal the s&p continued to go down. went to 1286 on august 1st that's right after the deal on august 2nd when president obama signed the bill into law we fell 2 1/2% 12 1254 we didn't see we were on the parallel track with the rating agency they realized this was no way to run an airline let alone a country and took our government's credit rating down a notch. by the time we got the official downgrade after the market closed on august 5th we'd already fallen to 1199 in the wake of the downgrade we dipped to 1120 on august 10th, where we finally bottomed. yet the s&p 500 went from 1345 to 1120 in a matter of weeks because of the one-two punch of dysfunctional partisanship and ratings cuts usually saved for ailing countries that's the disaster scenario plain and simple much of this was purely based on

sentiment not reality. as the market went down as much as we would have expected in an actual default we ended up with a diel that avoided the worst scenario yet that one downgrade from s&p was enough to crush us and we're going to get multiple downgrades if we default this time. of course it looks all prescient now. in 2011 we should have stopped going down sooner but i think we couldn't stop until the market got truly oversold meaning the pendulum swung too far, which is what happened. only after you will at the sellers can we get a snapback. i follow a proprietary osc oscillator rolling off minus 10 readings before the bottom you must buy when it's there now the oscillator's only at minus 2.4. nothing to hang your hat on considering the risk of default is substantially higher then this time around that's why i recommend you maintain a high cash position even if the democrats and republicans cut a deal because last time it was the gut punch of the s&p downgraded a few days later that really got to us. so knowing what we know now about 2011 it's premature to get bullish on this market other

than the occasional forward tech company like nvidia. best to keep the cash on the sidelines and waiting. have to see the oscillator get more negative before we can even consider opening our wallets all the way. 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 see you next time. "last call" starts now hi, i'm brian sullivan tonight a "last call" exclusive with media heavy way kevin mayer on everything from the streaming wars to tiktok, to disney. it's an interview you don't want to miss. and how nvidia and intel have taken wildly different paths we'll blow your mind and jamie dimon prepares for his depositions with the bank as ties with jeffrey epstein. and what you think you know about student loans may be wrong.