elevance, because the name -- this is well point, this was anthem, this is a gigantic company, not expensive right here >> dan >> yeah, pfizer looks like it's trying to bottom >> thank you for watching "fast. "mad money" with jim cramer starts right now. "fast. "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. just trying to make a little money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer i'm steamed. i'm sick and tired of hearing about how we've got a narrow market, a market with only a

handful of winners driving the performance, nearly all of which are in tech. the implication being that a narrow market is a precarious market so you'd better -- >> sell sell sell -- >> before -- >> the house of pain >> i've had enough okay we had a narrow market the s&p 500 is led by the magnificent seven. that seemingly exist to save the other 493 villagers in the index from eli wallach and his host of bandits. but you know, the magnificent sen is the real deal amazing sales and earnings great balance sheets so what if they lead the way a win's a win. the dow gaining 153 points s&p climbing .99%. tech-heavy nasdaq jumping 1.28%. not every company can be a hall of famer let alone an all pro. the magnificent seven's all pro. what are we supposed to do, challenge all seven gunfighters? >> sell sell sell! >> somehow blast them to kingdom come bad idea they deal in lead and you don't

want to be their competitor. so what are the magnificent seven? it's not yul bryner this time here you know. apple with a total run of nearly 37% through the five five months of the year. nvidia with a return of 159% amazon with a return of 44%. how about this one meta up 120% tesla's up 66% and alphabet up 39%. now, i know, i have the right to say this, that right now i've had enough of them because i talk about them every night. now, people act like this strength for these companies is a bad thing. what do you want these ceos to do, play blindfolded one hand tied behind their back, maybe give the other guys points to compete with them? does it matter that apple has the highest customer satisfaction in the world? shouldn't microsoft be rewarded for doing fabulously during this tech slowdown and then made the biggest bet of on ai of any company. $110 billion company in the company behind chatgpt

nvidia makes gold in the form of gra graphics cards that are essential for amount i literally can't get enough of them they issued guidance for the current quarter $4 billion above expectations for heaven's sake how about tesla? europe, china. best in class products really inexpensive prices. amazon is coming out of a trough year, so business will accelerate because of ai. and sales will do well as brick and mortar shrinks from shrink more on that later meta's mark zuckerberg he's going all in on ai and a year of living efficiently alphabet looking late to ai. actually it turned out to have a lot more going on than even their own executives seem to know all terrific long-term opportunities. but you know what? just like in the movie "the magnificent seven" the gunfighters save the village and you know what the villagers did? nothing. so rather than complain about how the market's so narrow and everything's terrible, take away the belt and shoelaces, i want to do things differently

kind of like steve mcqueen talking to yul brynner about how the villagers didn't pull their weight if that went over your head, just go watch the movie. the original let me give you -- the new one was awful. let me give you a list of companies that i'm not willing to wait for before i start pulling the trigger on the magnificent seven. these companies should not keep you out of the magnificent seven at all i'm going to go over the biggest losers for the first five months in the year of the once mighty dow which is down oh so slightly for the year feen you when you include dividends the dow has only had five positive days in may, three of them in one week. are we really supposed to view the magnificent seven as a source of danger when the real threat is right in front of us in the form of the dirty dozen of the dow forget the leaders let's talk about the players that can't even make the team, might not even go out for it we're going to start with the ones that are least down procter & gamble off 6% through

the end of may i'm naming charles bronson he was the only man to play in both movies. procter had a very strong five months until a few weeks ago when analysts started complaining about peaking margins and slowing sales. i say give me a break. going to lower cost without lower prices it's called a great combo. next coca-cola also off 6% this one strictly because people think the fed's almost done tightening, so why bother with safety they don't care that they had a good quarter out of fashion should that be a reason to stay away from buying nvidia? does that make any sense at all? not this coca-cola. then there's united health down 8% because who wants to own a health insurer during a re-election year it doesn't matter that it's a great company that's going to crush the numbers, you don't buy this a year before an election ibm's down, says give me high growth or get me out how about the absolutely miserable performance of lowly villager verizon i can't find anything good to say about it except my really

cool verizon red windbreaker they gave me that is perfect for a rainy day or gardening it's ideal travelers. it's pretty good but dream on if you think a cyclical stock like this one at this point in the business cycle down 9.7%. you always hear it than that a family's only happy as the unhappiest kid nike has markets that are like families the chinese family's making the whole joint sag off 10%. home depot fed wants to raise rates, housing's caught in the crosshairs home depot used to be magnificent. could be again when the rate hikes are over, down 10.3% here's one the trust owns and it makes no sense to me that it's down 10.6% i'm talking about honeywell. maybe we're all waiting for the ceo in waiting, vimal kapur, who became ceo today j&j caught up had litigation where it's trying to give 8.9

billion to a huge pool of talc litigants. i am a huge fan of j&j, have been since 1985. but unlike back then you're totally hostage to the climax of this lawsuit caterpillar told a terrific story at an industry conference but i get the sense nobody wants to buy an earth mover going into a global recession even if the ceo has decycleized his business we own it for the trust. we want it to be bigger. buyback is strong, expert a higher dividend coming seems strong to me, getting ready to buy amgen's trying to buy its way out of a hole in earnings with its acquisition of verizon therapeutics s.e.c. doesn't want it to happen stock's still dun 16%. chevron's also down 16% because oil's terrible and it might not even go higher after this weekend's opec plus meeting. walgreen's down 18%. as it bulks up on health care

but doesn't give you the skinny on how much merchandise is under lock and key because of pilferage. amazon's their nemesis same day deliveries everywhere it might be faster to order online than wait for the clerk to come and unlock the gillette razor box. finally there's the dividend aristocrat known as 3m all i can say about 3m is it's involved in litigation with some of the most sympathetic plaintiffs in the world. polluted groundwater possibly leached by 3m. and veterans who claim they have hearing issues thanks to 3m's allegedly defective ear plugs. that's the kind of litigation that sends a one great stock down 22% in the first five months of the year bottom line do you want to own the petrified villagers in the dow? or would you rather stick with what's winning, the magnificent seven? remember you don't want to wait for the villagers to turn things around but you bet on the actual gunfighters if you want to make big money. let's go to mickey in michigan

mickey >> caller: oh, it's mickey in massachusetts. >> my terrible bad how's it going >> caller: very good how are you jim? >> i'm doing well, thank you >> caller: i'm calling about cvs. i bought it about the time covid started. and i had about $10,000 invested in march of 2022 and now it's down to 7,000. should i buy sell or hold? >> it yields 3 1/2 it does have the problems of many retailers which is shrinkage. it just did a very big bond offering and i think it's moving very aggressively into health care i would not sell this stock at 3 1/2% yield i would buy it let's go to jay in wisconsin jay. >> caller: jim i was wondering if you have an opinion on activist investors legion partners' involvement with twilio and suggesting that they -- >> twilio?

okay look, jeff lawson's made a couple of reductions in force. he's doing a buyback he's more focused. i think a lot of his problems have to do with small and medium sized businesses that may be a little more reluctant to order i would not sell twilio here i think if it pulls back to 60 i'd be a buyer sebastian in california. sebastian. >> caller: yes, mr. cramer thank you so much for all you do >> my pleasure >> caller: good afternoon to you, sir my question has two parts. disney it it's at one of its lowest costs for stock. what is your aselesment of disney stock and also is this a good time to purchase it or do you recommend any other stock -- >> no, i think disney's an excellent stock to buy my charitable trust owns it. it's been very disappointing we are down a lot on disney. i talk about being up on nvidia. got to say what i'm down on. disney's one of the stocks we're battling i talked about that in the last club meeting but at these prices, 89, if you're willing to wait a year i think we'll look back and say how the heck did you get that at $89. all right. you can try and wait for the

rest of the market to catch up to the magnificent seven but why do that when you just buy the winners if they're still doing well on "mad money" tonight crowd strike tumbled but i'm looking at the big picture with the ceo. then in a tough moment for retail a disturbing new trend in the space that could impact the sector's profit potential. revealing the names that could come out the other side. and the ai hype has taken the market by storm. but i'll tell you why you shouldn't believe everything you hear when i turn in tonight's homework so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer hashtag madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at ss800-743-cnbc

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so boost your bottom line by switching today. comcast business. powering possibilities™. we're seeing a new pattern with the tech stocks that caught fire earlier this year many of their stocks got so hot that they end up getting hit even when they're reporting real good earnings. i'm not just talking about salesforce here. i'm also talking about droud crowd strike they report an excellent quarter. clean top and bottom line beat like it's given you every quarter since its ipo with remarkable 42% sales growth. while management's guidance for the current quarter was good they also raised eph line of their full year forecast really hard for me to tell what investors could complain about these numbers. yet complain they did. crowd strike down as much as 13% in after hours trading last night. opened down 8% but it ultimately erased most of those, finished down 2%.

so could this be a rare pullback in this company's stock? let's check in with george kir ch, co-funder and ceo of crowd strike get a better read on the quarter. welcome back to "mad money." >> good to be here >> last time you reported your first quarter earnings results which along with beating top and bottom lines as i just mentioned resulted in gaap profitability for the first time in your company's history. is this the beginning of what many people want to profitability with growth? >> this is obviously something we've been working on for a long time and we take a really methodical approach to how we run the business we focused on gross margin, then operating profit, cash flow and now gaap profitability and i think if you look to how quickly we got to at least one quarter, it was going to fluctuate over time, it does give you a view of the strength in the model of our business and we're excited to get there that quickly post our ipo. >> i agree with you. analysts talk about how revenue

declined from last year and maybe combining that with some thinking about how you're tacking about there are some challenging circumstances in the macro. started to think that maybe this is as good as it gets. but i saw tremendous growth away from that. and with ai i question whether it really is as good as it gets. >> well, when you look at the overall results and you look at the 42% revenue growth, you look at the rule of 40 at 75% $2.7 billion annual recurring revenue scale. it's impressive. you combine that with some of the macro headwinds, and we delivered above and beyond what we said we were going to deliver in terms of our results. so it's still a challenging environment. deals take longer. but i think it really focuses on the strength of the model and certainly the products that we have >> well, george, i've got to tell you, you have the most compelling discussion of ai and what it means, particularly because the other side, the bad guys have real good ai maybe it just takes better ai to catch them >> well, when we talk about ai,

jim, and i've been on your program for many years, this is not something that we started yesterday. it's the foundational element of why i started crowdstrike, we've been doing what we're doing. generative ai, as you know, is a newer type of ai and it's something we've been focused on for some time and we're really excited about our charlotte ai release which we think is going to revolutionize the way security practitioners interact and create work flows within our falcon program we're going to need that to be able to stop the adversaries because they're going to use ai to defeat systems that are out there. >> all right so let me ask you, you are famous for getting newclients. you've got, by the way, two new fortune 100 customers. you've also got the department of defense, which is a real big deal i was trying to figure out whether those new customers can bring as much to a bottom line or don't you have to spend a lot to get them and therefore they're not as easy to harvest so to speak? >> if you look at our sales efficiency, things like our magic number or customer acquisition costs, we've been very efficient and we continue

to be very efficient as a company. once we get a customer in, we know the lifetime value of the customer is going to continue to grow because we continue to land more modules, which is part of our whole selling motion once you're in and you're using the product it's almost friction-free to be able to try a new module and then to be able to upsell and close that customer because they already have the software, they already have our agent, they're already using our cloud. it's a matter of filling out the purchase order and giving a new module >> well, that's about as easy as it gets. now, one of the things that we've all thought is quite easy is the ease with which microsoft has moved into ai and how they're doing so well. they always sound like a colossus that can never be toppled. but i'm quoting from your call you just closed eight out of ten times when an enterprise customer tests they go crowdstrike over microsoft well, if microsoft's so invincible how is that possible? >> well, you have to look at the mutombo technology they have and i know there's a lot of hype

around microsoft and ai. but their fundamental technology is still legacy, still signature-based, gets update six or seven times a day that's the reason why i started crowdstrike. the legacy technologies were not capable of stopping breaches and in fact in many of the incident response engagements that we get brought into are microsoft customers. so customers are looking for the outcome of stopping breaches and that's why they're choosing crowdstrike. >> let's talk about the customer for the department of defense. for the highest unclassified i know you're in my thinking the is the department of defense must be the premier account because obviously you always talk about state sponsored state sponsored bad guys you need the department of defense how's that going to work you just got the clearance >> well, we've had aisle 4, which is a level of certification. now we've got i.l. 5, which is pretty hard to get, to be clear. and a lot of processes that you have and security you need to have that opens up a broader scale for us to be able to sell into the government and opens up potentially more, up to millions more of end points and

workloads. so we're excited about that. but jim, as you know, in the government we've seen it, it takes time, it takes effort, and it's an ongoing focus for us >> until your call last night i had never heard the term, maybe i should have, adversarial ai. now, this is like people in giant buildings with health care benefits having a coffee machine and getting paid to be able to break through from bad countries. is that adversarial ai like a company? >> well, adversarial ai is the adveshsryes actually creating ai technology to defeat other ai protection technologies. and this is something that's been going on for some time. i know again there's a lot of hype about ai. but we've been focused on this for some time and the adversaries, they're smart nation state adversaries are using the same technologies, generative ai and other techniques, to try to defeat systems. it's one of those areas you have to have the best ai, you have to have the best data set, which we believe this kind of human annotated information that we have to be able to train our

generative ai algorithms but yeah, it's an arms race and we think we're positioned well >> i was very glad to see near the end of your call that you saw a strong demand in results for small and medium size business that's who i'm most afraid that the federal reserve is hurting when they raise. so these people are still spending on crowdstrike. >> they're still spending on crowdstrike and they're doing that in a variety of ways. one is purchasing the technology itself they can do that through our website. but two is we spend a lot of time on our partner network. we actually signed a deal with a company called pax 8 which handles 30,000 managed service providers. and that actually caters to the small businesses so they're spending more, they're spending at a higher a.s.p. and i think that bodes well for s.m.b. business. >> that's great. unfortunately much easier targets and much more sophisticated banks and the large internationals george cukurtz, co-founder and e of crowdstrike congratulations.

another great quarter. >> appreciate it, jim. >> "mad money" coming back after the break. >> announcer: amid retail headwinds who had crime on their bingo card cramer on a growing issue in the online marketplace next ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic

across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening.

by now we've gotten through almost every retail earnings report and it's clear, tough sector right now the industry's got a ton of big picture problems stemming from a softer economy but there's one retail-specific issue we keep hearing about on conference call after conference call. it's called theft, or as they know it in the business, shrink. the official accounting term for the hit you take from lost, destroyed or stolen inventory. pilferage. historically retailers hate talking about shrink because it makes them look bad. who wants toe admit to being robbed blind who wants to blame weak numbers on shoplifting yet now the problem's gotten too

large to sweep under the rug and we're hearing about it endlessly. not just one retailer's fault. first target, here's a company that's always prided itself on building stores in difficult neighborhoods and serving low-income consumers but when target reported last month they gave an incredibly grim earnings forecast for the current quarter and management blamed a big chunk of that weakness on crime. ceo brian cornell described retail theft as, quote, a worsening trend than emerged last year, end quote, noting that it's increased at its stores is a tough problem. because if you crack down with security it makes it less convenient for innocent shoppers like you you want to be able to buy what you want when you want last year target's shrink came in at $763 million and on the call they said the shrink number growing by $500 million this year, putting it over the billion-dollar mark. it crushed the stock of course target has a lot of other problems from inventory missteps, culture war controversies. but if they're losing more than

1.2 billion in theft this year that is a very big deal. the day before target reported we heard from home depot which also called out theft. they said shrink is a key driver of its falling gross margin. which really matters this is home depot we're talking about. some merchandise is very hard to steal. but perhaps easily fenced. next dollar tree was one of the worst performers in retail last month. the stock down 12% in a single session last thursday on the heels of an earnings miss with a full-year forecast cut if you go through dollar tree's conference call the word shrink was mentioned 34 times according to management shrink cause aid 60 basis point hit in the first quarter. 14 cents on earnings per share it's hard to make that up. dollar tree missed their numbers by 5 cents theft explains the whole shortfall and then some. foot locker's fallen from around $41 a couple weeks ago to under 25 today thanks to an awful quarter they also blame shrink for putting pressure on their earnings but we were blindsided by this

one. that said it will take time. i talk about how great nvidia was. i've got to talk about some of the stinkers like foot locker. that's the way it works for the charitable trust theft has become endem nick retail but what makes it so frustrating is there's no easy fix. target's trying to reduce theft by installing protective fixtures, adjusting its aso assortment in certain stores ulta beauty, ceo scott sanderson recently told analysts, quote, coming into 2023 we think the shrink trends were going to moderate a little bit because of some of the investments we're putting behind mitigation tactics. but they haven't resonated yet whoa end quote. resonated. as an interesting term and like i mentioned before, many of these anti-theft measures are also anti-shopping measures you go to a duane reed in new york, almost everything they sell is behind lock and key including items of -- you need to amake a p.a. call and wait for assistance just to buy basic sundayries what's the point of shopping in person if it's not convenient?

plus don't forget the impact the shrink has on retail employees, the people who would normally be stocking shelves, operating the cash register or assisting you rather than tackling -- earlier this month we learned lululemon had to fire two employees in georgia for recording a robbery then calling the police. lulu did have a good quarter after the close. but talk about shrink. it happens to be a very good company. we're seeing many retailers give up some locations entirely roughly a month ago nordstrom announced they'd be letting their leases expire for two stores in san francisco where theft is off the charts. in april walmart announced plans to close four chicago stores though they blamed long-standing unprofitability on theft specifically last year starbucks closed a couple dozen locations, primarily on the west coast, due to safety concerns safety target suggested they might have to close their most theft-prone stores, although they're trying everything they can to avoid that so suddenly theft seems to be

the national pastime with so far very little risk versus the reward. in large part that's thanks to the rise of online marketplaces where it's easy to fence stolen merchandise. suddenly crimes pays a lot better than it used to so it's become professionalized. it's so bad even the government's trying to help. last year congress passed the informed consumers act by slipping it into an omnibus spending bill. this requires that online marketplaces collect, verify and display key information from high volume third party sellers on their platforms that could be people who are stealing look, i guess that's better than nothing. but do you really care if you're buying stolen merchandise when you look for a deal on amazon's marketplace? seems like they've checked it out, satelli out, right that's how you feel. what do you do you have to think of this as an investor, not as a retailer and not as a shopper let's try to put this in perspective. sure theft is terrible for brick and mortar retailers but who's it fabulous for?

amazon the one advantage brick and mortar still has over e-commerce is you don't have to wait for your goods but all the anti-theft efforts by retailers make amazon much more convenient by comparison. if everything at your local drugstore's under lock and key -- well, hyperbole but my gillette razors how about that why not buy it online? free next day shipping if you sign up for prime. costco's got religion on profitability. i think they're a doender in artificial intelligence particularly with web services business next i lovecostco also with a stock that's up 25 bucks since the company reported a solid quarter last thursday even though at the time it was criticized because costco seems immunized against tleft. it's a club member pship company. he said quote, one of the questions we've gotten out there because of some of the companies that reported much higher shrink, our shrink is intact he went on, quote, we haven't seen any major change in shrinkage. it fluctuated three basis points before covid, we rolled out self-check-out and since then it's come back down a little

bit. and it's been in a very tight range, end quote good for them and good for costco shareholders. i don't know if it's because they offer ridiculously low prices or simply because it's awkward trying to shoplift items that only come in bulk, let alone stealing from your own darn club. how heretical. anyway, it's working for these guys like amazon we're telling cnbc investing club members to own costco the industry's having a george costanza moment right now where everybody seems obsessed about shrinkage. i don't know how they solve the theft problem, which is why i want to stick with the retailers where it's not a problem like amazon or costco. if you can't steal from them, join them. let's go to beau in alabama. beau >> caller: big boo-yah, jimmy chill. >> thank you, beau what's shaking >> caller: nothing much, sir

i had a question involved in the -- and it seems like my pandemic's just beginning, sir is there any -- original highs >> no. it's lost its way. we vastly prefer constellation, stz. had a very good meeting yesterday. bill you whylands, conference call, talking about the company coming out way hot from that last year. i think you should swap out of sam and go into stz, constellation brands let's go to landry in oklahoma landry >> caller: good afternoon, jim how are you? >> i am good how about you, landry? >> caller: i'm doing great thank you. i've got a question about draftkings today >> sure. i've got to tell you -- go ahead. >> caller: what i've seen with draftkings, i was going to ask, it's kind of a two-part question should i be putting a trailing stop up for draftkings with this quote unquote looming recession?

or should i try to maybe take my bets and let it regress to the mean and then would you recommend dollar cost averaging draftkings >> i like draftkings if it comes down, i'd buy more it's a point off its high. if it comes down two bucks, i'd probably buy a little more i think jason robbins is the winner he is the new champion draftkings is a terrific company. i like it. i used to work for them, in full disclosure, and i think they do a terrific job let's go to alex in colorado alex >> caller: dr. cramer. how are you? >> i'm pretty good how are you, partner >> caller: thank you for doing what you're doing and helping everybody. >> thank you, alex >> caller: i have a question, mr. cramer my question is about paypal. i bought paypal a while back it looks like they went down quite a bit. but what's going on with paypal? >> competition got very steep. competition is very steep. it's very tough.

it's very difficult to go against all these other companies in financial tech. so therefore, paypal's been a re tough stock to own and i think it's going to remain a tough stock. the shrinkage problem across retail has no easy solutions right now. so i want you to stick to the companies that aren't being hurt by it. i'm talking about amazon i'm talking about costco much more "mad money" ahead including the hype around ai, it's taking the market by storm. but i'll tell you why it's important to keep the excitement in perspective when i turn in tonight's homework then i'm cutting through the noise and pointing out the positives that you may have missed as chatgpt continues to dominate the headlines with its hype and all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer.

every night i take your phone calls in order to ensure that i'm not just talking about the stories that i find interesting. i also have to cover the stocks that you home gamers want to know about and i like that. it's one of the reasons why the show's been on for so long sometimes, though, you stump me, ask me about a name i just don't know or a stock i want to do some more research on before offering an informed opinion in those cases what do we do put the stock to the side, do some homework, return to the story with a more thorough answer so with the school year ending, summer break starting and student loan payments about to resume, let's clear out the homework we've been handing out ourselves. back on may 9th michael in minnesota asked about perion, p-e-r-i-o-n, network that's an israeli advertising technology play. i said i'd get back to him this is a company that was founded way back in 1989 that was during the original dotcom bubble.

although they weren't originally an ad tech play. perion tried to break into various internet focused business like e-mail service before focusing on digital advertising in recent years. while perion came public way back in 2006 it was a microcap name for over a decade only becoming large enough for us to talk about it on air in the past three years thanks to an incredible run in the stock. this name soared from the mid single digits three years ago to $42 at its highs in april, pulled back to $31 today with the rest of tech what exactly does this current version of perion network do in a nutshell this company helps advertisers place their digital ads in the most advantageous places perion operates across ad search, social media, video, the three areas where the money is they've got a proprietary platform it's called ihub it connects the supply and demand sides of digital ads. to put it even more simply companies come to perion with a block budget for digital advertising and perion helps them spend that budget in the most efficient ways possible of course there's a bit more to that

always is. perion caught fire earlier this year because they got a partnership with microsoft's bing search engine which has now been supercharged with chatgpt functionality. they say they applied machine learning and artificial intelligence across all their core solutions although who knows what that means. certainly good buzzwords high-level story here is perion's made a fortune over the past decade or so as more and more advertising dollars went from traditional media to digital i digital media. by last year it had 640 million. it surged from 83 cents per share to $2.06 per share that's more than double. but you know what? i'm not willing to give perion my endorsement because there's also plenty to dislike sure, about a month ago the company reported an excellent quarter, nice top and bottom line beat management raising their full-year sales and ebidta forecast scott didn't get much benefit from those numbers, though up 34% year to date going into the quarter.

but make no mistake about it, this was a darn good quarter unfortunately we got a more negative update next week when the professional short sellers at spruce point capital management published a brutal hit piece on perion. >> sell sell sell sell sell sell sell md. >> citing, and i quote, concerns about the accuracy of its financial reporting and efficacy of its product suite and sustainability of its growth, end quote. harsh indoictment. these guys are alleging there are accounting issues. and in my book accounting issues equal sell they said perion is at best sloppy and at worst, quote -- worst case, manipulative accounting and reporting practices that make it difficult to track performance, end quote. that's a very serious accusation i don't know if it's true. but i have to say to myself, so many good stocks, why take the

chance spruce point annihilated the somewhat sketchy history of some of the top executives at perion, calling into question some of the company's recent acquisitions while the report didn't have a huge impact, the stock dropped less than 5% the way day it was published, it certainly made me rethink this one if you're considering investing in perion i urge you to review spruce point's 121-page report yourself you can see it on the website. make you are own mind. i can tell you where i come down on this one. strictly based on publicly available numbers perion should be an attractive stock management expecting 15% revenue growth this year not too shabby stock looks cheap selling for roughly 11 times this year's earnings estimates and this is a $1.5 billion company with more than $400 million in cash and equivalents on the balance sheet and zero debt now, if that were the whole story, i'd be more of a digital advertising enabler. buts that not the whole story. that short selling report spooked me i think they've got some convincing arguments although i say that as a

non-specialist who's not really qualified to evaluate what perion says about its own technology but even without that short seller report i'd be hesitant because perion is being hyped as an artificial intelligence play. as i told you last night there will be very few genuine winners from ai and so much of it is hype with nearly all of the winners being these giant mega caps. that's what i like at the same time the fact that perion trades at 11 times earnings it actually feels a bit of like a red flag to me very low multiple considering the growth rate. makes me wonder, if the story's so good why the heck is the stock so cheap bottom line, i donate know if the short sellers at spruce point are right but perion network's clearly a battleground stock and we stay away from battlegrounds on "mad money. too high risk for me if you want something similar why not go to long-time cramer fave trade desk? a more compelling ai play and terrific management. "mad money's" back after the break. >> announcer: coming up, what's

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it is time it's time for the "lightning round" on cramer's "mad money. play until we hear this sound -- and then the "lightning round" is over. are you ready, skee-daddy? talking about the "lightning round" on cramer's "mad money. let's start with tom in florida. tom. >> caller: hey, jim. how are you doing, buddy >> i'm doing well. >> caller: it's been a while since i've spoken to you >> i miss you. >> caller: i've been a viewer

for many, many years and i've been a club member for the past seven-plus years >> yes >> caller: through the transition and i love you for that. >> oh, thank you you know, i bleed club it means so much to me >> caller: i know you do i know you do, brother >> thank you >> caller: and the thing is i just want to let you know since i've been a club member and in watching you i bought a new house in florida tomorrow i'm getting married to my lovely fiance brenda. ♪ hallelujah ♪ that's due to all you helped us do and achieve >> i take a lot of heat, as anybody who's on twitter knows they think i must be something really bad so when i hear something like that it means a great deal to me, tom. thank you. how can i help you right now >> caller: okay. well, i want to ask you a question about a stock that you absolutely loved about a year ago. subsequently to that time, though, the revenue's been down 42%. net income is down 56%

it was a spac opening at the time but it had been in business for a number of years prior to that but you know, sales volumes are down >> it's true >> caller: could i just ask, what do you think today about mp materials? >> oh, mp materials. trading with the car companies they're not doing well it's also by the way, i mean, when you look at it, there's been inside selling. i don't like that. my bottom line is mp materials is still a good company but it's not a great stock. it's a tough one because i battled that one and thank you for those kind comments best wishes. daniel in new york daniel >> caller: baa ba-ba-ba boo-yah, jim. american express >> stay away from american express. i have to tell you something, american express is benefiting from the fact that when people stay at home they go out at night. that's what they do. when they work at home they go

out at night that's why leisure's so big. and travel is still booming as we know from all the airlines. let's go to seth in kansas seth >> caller: hey, jimmy boy. >> i like andy he's my favorite go ahead >> caller: my question is given the severe lack of underinvesting in both the exploration and mining capacity within the gold industry coupled with the high inflation environment what's your long-term outlook on the price of gold and particular ly franklin nevada? >> i think you should have 10% in gold as a hedge and i think it's an excellent yield play it's a royalty trust i like it very much. i would be a buyer let's go to andrea in andrea >> caller: hi, jim i'm a first-time caller and i'm excited to ask about clearfield. clfc >> very tough.

very competitive market. i don't like that market and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, good things are happening every day in ai. cramer highlights a few that have caught his attention. next this is the all new, all electric lucid air. a car that goes as far as it does fast.

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there are so many good things at work in business every day that you rare ly hear a word about because they're not super exciting i'm trying to change that. let's take the -- a biosimilar knockoff of humanera do you know that's the best selling drug ever? and it's made by a company called ab vi hu humira brought in $18 billion last year alone. it's a wonder drug for all kinds of rheumatical issues. unfortunately it cost the health care industry $90,000 per patient. according to blomberg this biosimilar version will sell at an 85% discount. the ceo believes he can get to it a 12% market share in a couple years right out of abbvie's high. why not? it's got the backing of mark

cuban, whose cost plus drug company will be offering this discount mark, come on the show and talk to me about it can you imagine how this biosimilar will save even though it's going to crash abbvie's profitability? hence why we had to sell it for our charityball atrust not that long ago meanwhile, humana, united health both rallied because they're the ones that are actually paying the price of these drugs but long story short the biggest drug in the world's about to get 85% cheaper. how is that not a great story? a number one story then what we heard last night from wealthy private investor west eatons about his new fortress energy company. he's developing low cost liquefied natural gas infrastructure for less developed companies and he's doing it in a high-speed way it's amazing bringing lng to jamaica, puerto rico, mexico, later on brazil, a couple other markets could be an incredible boost for these people in these countries who generally use a lot less power than we do in it america i want them as our friends natural gas is a great equalizer and it's going to make a tochb

money for new fortress energy and in the process could make money for you. in a separate adventure building popular high speed trains that will run from orlando to miami and los angeles to vegas not too long ago these rail lines would have been considered way over the top, just preposterously expensive but now because there's so much traffic on the roads, too much, and because you can't get an uber when you arrive at the destination, it can be a nightmare at an airport. you can get one maybe at the train station. high-speed trains make i aton of sense for travelers. we don't have high-speed rail in america yet. but if you go to europe, japan or china these trains are incredible i think it's a great move. he'll make money you'll save money. and time next, for a long time we've pooh-poohed the vaccine development. too expensive to develop when you use new technologies that can do billions of permutations practically at the speed of light, you can be like moderna which came up with the covid vaccine. i think they can do many others the same way life-saving and profitable so today pfizer got an approval

for rsv shot again, technology's making these things worth pursuing for business we keep thinking how can we develop so much oil and gas in this country but not produce more than 12 million barrels a day. this is all about technology the producers can get more mileage out of them. tremendous for pioneer natural resources which has the lowest cost drilling operation even if it hasn't helped their stock lately finally, working with the government hand in hand to bring back semiconductor manufacturing to here in the united states we had ceo gary dickerson on the show last night. he just announced his company's planning to build a $4 billion research development site that he thinks will put silicon back insilicon valley that's both reshoring and helping ensure our country doesn't get too dependent on chips made in taiwan because china wants taiwan back it wouldn't be all that hard to disrupt the supply chain these are all positives that have already happened or i just learned about in the last couple

days all right. they're not about chatgpt, about generative ai. they're not about hype they're about dollars and cents. and it's to be talked about even if the only time that happens is at the end of our show i like to say there's always a bull market somewhere. i promise to try to it is one of the hottest a.i. plays on wall street, but an investor lawsuit allegesc3.ai may not be all it appears. we have an in depth report you will not get anywhere else. is the kid up on remote work? one tech founder says it is time to get back to the office. he will be here to make the case. clash of the