>> i'm actually long that. i'm always long, but tonight, i shorted some spiders, because i feel like it's too frothy at this moment. >> dan >> intel better hold those gains, i've got puts in the smh. >> all right, rebecca, thank you r joining us thank you fo >> thank you for watching "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 >> hi hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to help you make some money my job is not just to entertain but put collapses like today in some sort of context you can understand call me at 1-800-743-cnbc or tweet me @jimcramer. something that's kind of embarrassing at this moment. we like to kick these around the office every morning

today we were absolutely giddy about this market speculating about how the dow could give us a 14-day winning streak for the first time since the mckinley administration and so many companies are reporting great numbers last night. then of course the afternoon comes along, interest rates spike viciously and the whole market rolls over with the dow finishing down 237 points. no record there. the s&p tumbling .64%. nasdaq losing .55% the giddiness quickly subsided >> sell sell sell! >> it got real ugly at the end of the day with some awful reversals. >> the house of pain >> now, it sure looks like our ebullience called the top this morning. clearly way too much cockiness always undisciplined and bad for business cockiness breeds arrogance and arrogance breeds losses. but i don't want that to be your takeaway even though the average was down i don't want it to be that i want it to be something else i don't want you to lose faith

in this incredible bull market even when the market's on fire stocks -- that's what happens. you can always get bad days especially when you start with good days and people are too exuberant. however i don't think this sell-off is the end of the world to me it feels a little more like a garden variety pullback rather than the horrific declines we've gotten accustomed to over the last couple decades when the market looks really good when you remember that a recession's no longer on the horizon, that's what we have to believe, and many companies are doing incredibly well, buying stocks into weakness actually is rational it makes perfect sense maybe the first day like today but the market fell so hard from the top today i saw a bunch of things i wanted to buy at the end. there's something very different about this market and that's the point i'm trying to make tonight. it's something that was with us for most of the time i spent at goldman sachs and my old hedge fund in the 1980s and 1990s when i practically lived right down here i could actually see the building i worked at you know what we used to have?

it was something called fun. yeah, it was fun i came down to goldman in 1982 just when the stocks started their historic multidecade run we didn't have cnbc back then. so we just kind of tried to figure out which stocks were most likely to outperform and talked about them all day. i rotated through various departments at goldman and we'd talk about which ones were going to hit a 52-week high, which ones would split yeah, split. do you know something? we used to focus on that all the time which ones might get taken over. there was no antitrust -- there was nothing. this kind of sanguine chatter permeated the stock market for years and years. even when the averages crashed on black monday 1987 falling more than 400 points in one day which was i at the o'back then stocks came right back sure some smaller money managers got wiped out but it was just a hiccup unlike what most thought the '87 crash did not herald a recession, just more happy times. this positive attitude infused cnbc when it started in 1989 that made sense in the context of a fantastic bull market

of course there were always things that could knock the market down. something out of washington. an insider trading scandal, a company that made up its numbers. the collapse of a takeover but these were just speed bumps on the way to higher ground because our companies get betting better and better and growing ever faster with a super robust service economy supplanting our industrial sector as an emphasis for our nation it was a time when the stock market was enjoyable when u.s. companies ruled the world you could make a fortune by buying shares of the best ones and putting them away sure we cared about interest rates like we did today. the 20-year seemed to be at 7% we sweated the fed then. we sweat it now. we occasionally check the overseas markets but we're really the only game in town we simply sat back and tried to figure out what was going tonight next winner, the next pfizer, intel, microsoft intel good numbers tonight that's just the way it was until the late 1990s when so many companies were doing well that picking winners frankly was like shooting fish in a barrel.

and then the dotcom bubble inflated in 1999 and burst in 2000, wiping out a generation of investors who stuck with their favorite tech names on the way down and only decided it was just too dangerous to own stocks it really hurt the asset class the fun disappeared. couple years passed and the market built up another head of steam, you know, investing got a little intriguing again, otherwise they'd never have given me my own show in 2005 to talk about stocks. then the great recession came and another major chunk of the population got burned out on stocks the funds seemed permanently to disappear, replaced by negativity and endless fear and the motion that stocks were just a ridiculous thing to own. after that for most of the decade from 2010 to 2020 we got some rallies but they were ephemeral joyless affairs usually punctuated by analysts and strategists and hedge fund managers who'd constantly come on air to tell you stocks were overvalued even as they crept up these guys always tried to make

you feel like an idiot for owning individual stocks they always pushed index stocks instead and even questioned whether you should be in those the convention williams was everything is too risky. i think that's a lasting legacy of the dotcom implosion and the financial crisis stocks got some temporary lift again in 2020 but that was because the government started mailing people cash to help us hope with the pandemic and new investors flooded the market then the party stopped again when the federal reserve took away the punchbowl at the end of 2021 things started feeling more heartening again in the last few months as wall street recognized we've been in a bull market since last full fall of course the fun and games ended today when interest rates spikes i get that that's not changed interest rates are always going to play havoc with stocks we didn't break the dow record a lot of stocks that were flying got it later in the day. but i think it's time to recognize something has changed for this market and i think it's a change for the better. for the first time since the 1980s and the let's say early to mid 1990s we have a lot of legitimate stocks belonging to many companies with amazing

balance sheets and terrific prospects that are flat out doing very well. sure the magnificent seven are so big relative to everything else it is tempting to only watch them but there are tons of other excellent stocks with amazing stories including a couple i've got on tonight we haven't had such a large percentage of high quality stocks doing this well since the late 1980s and early 1990s we were never punished for being giddy back then. people were just making a lot of money. that was an amazing recession-free period. we got something like that going on now with strong numbers coming out every day, even as the fed tries to rein things in. so what does it mean we can start taking polls about hot stocks or running pools about the dow's winning streak you know, not that much. i just think it means we might be back in business as usual mode, not back to precovid, not prefinancial crisis but back to the '80s and '90s when stocks were indeed so clearly the best asset class and everything else

seemed like a waste of time even if you had a decent amount of cash you can argue we just called the top with you are o'giddiness you can say the bond market crashed the party because the economy's too strong i don't know but maybe, just maybe, maybe there are enough enough companies with good sales and gross margins that we can return to a period where owning stocks didn't make you feel like a pariah or a daredevil. maybe it's because like the old days when we had the same kind of market where normal people used it regularly to save, make money, to retire with. time will tell and i know you can't say this time is different until you've got definitive proof but this latest move, the last few months since october, it doesn't feel like a rally to me. rally applies to something ephemeral. it feels more like a reasonable attempt to value stocks from great companies that are doing well in a world where we've got lots of really good enterprises with amazing managements that are truly triumphing with real sales and aernlings and not pumped up short-term numbers look, here's the bottom line

stocks can still be dropped by a spike in rates like today. and there can be some big cap stocks that disappoint but the joy, and i use that word carefully. but the joy we thought about stocks for so long, we had it for two decades before the century mark maybe, just maybe we can have it again. let's speak to bob in florida. bob. >> caller: jimmy chill, this is bob from southwest florida calling from craig & cohen how are you doing? >> bob, i'm hanging in how are you doing? >> caller: good. i'm a club member. i just want to thank you and jeff for all you do. your knowledge goes -- >> how great jeff is jeff has got to do somethingless other than work. >> caller: jeff is the best. but hey, boo-yah and bing bong but quick question, what about lowe's what do you think about lowe's here interest rates -- >> well, i've got to tell you -- let me tell you how i feel about lowe's i think you've got to take i along-term view about how marvin ellison's turning the stock around 52-week high today i've been liking the stock but

i'm loath to recommend a stock that's at its 52-week high like today when i know the company could be vulnerable for a quick downturn if interest rates go up more you can wait for a pullback. but i think what marvin ellison is doing at lowe's, it's real, it's permanent and it's great. let's go to fernando in new york fernando >> caller: boo-yah, jim. how are you doing? >> i'm doing fine, fernando. how are you? >> caller: i'm doing wonderful i've got a stock here, walmart it's the world's largest retailer it posted 611 billion in revenues last year and with piper sandler upgrading walmart from a neutral to an overweight do you think it's a buy even though it's close to its 52-week high >> that's the problem. we had a reversal come in today. why don't we let it come in a little more? i will tell you this sam's club is doing incredibly well, which is why i think walmart's doing incredibly well. maybe you buy some tomorrow but then give it some room i like to do a 5% scale. in the club people know, i buy a little more, then wait for it to

come down and buy a little more. we are overbought but i think walmart is a very good stock and that is being driven by sam's. randy in pennsylvania. randy. >> caller: yeah, boo-yah the third time's the charm you are the best fly eagles fly we're going back and we're going to win >> playing on another level. >> we're going to win. coming from the horsham center sports talk. we invite you to come. we just had scott palmer we want you to come, jim >> thank you very much >> caller: i sent you a gift i hope you wear it the freedom fighters >> yes, thank you. >> caller: i want you to talk about berkshire hathaway class d. i want your view on mid -- >> i want you to buy it. i just think that pastiche of earnings is terrific i think there's a really good natural gas story brewing. pipes are really in short supply he's got a lot the rails are turnling around. i do think the american express position has gotten too

depressed. there's so much that's good there that i always say you buy berkshire big. there used to be a genuine feeling of joy toward owning stocks, one that hasn't been felt across this market for i'd say since the turn of the century. we may be on the cusp of it again. i know it's not something you want to celebrate on a down day like today but it does feel pretty different around here on "mad money" tonight going up, i'll see if that's what's happening with the stock of elevator maker otis, primed to do it with the company's top brass. which of these red hot tech stocks do i think deserves the award for best so far this earnings season? and agco reported a big top and bottom line beat for the second quarter. so why did the shares sell off in response to earnings? we've got to get to the bottom of that. so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jim cramer on twitter

have a question? tweet cramer #madtweets send jim an e-mail to madmoney@cnbc.com. or give us a call. at 1-800-743-cnbc. miss something head to madmoney.cnbc.com. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley.

after jay powell told us yesterday that the fed no longer expects a recession and then today we got a much stronger than expected gdp number it's worth looking over some of the great companies people have missed out on because wall street's so worried about a horrific slowdown. take otis worldwide, the elevator and escalator maker that also does installation and servicing. the bulk of the revenue actually comes from the service business. after being rangebound earlier this year thanks to all the recession fears the stock's finally been able to get some traction in recent months. it's up more than 12% since the

end of may yesterday otis reported an excellent set of numbers clear top line beat with 9 1/2% organic growth while the analysts were looking for 5% management raised their full year forecast and even said they plan to step you their buyback which allowed the stock to rally 3% yesterday could it have more room to run or should we worry about some of those order pictures which make me really think i don't want to get too bullish? let's check in with judy marks she's the chair and ceo of otis worldwide. to get a better read of the quarter. welcome back to "mad money." >> great to see you, jim great to be back >> judy, i have to admit there's part of me that just says this was an amazing quarter, your sales are great, and it's so clear that around the globe your maintenance business is terrific but you started out by sharing a 2023 updated outlook that seemed to my that europe, the americas really showed some weakness. i'm getting a little concerned maybe the future won't be as bright as the past >> we look for the future, we

turn to our backlog, and we just had an incredible quarter. as you said, the top line was up 9 1/2% not just in new equipment but almost that much, 9.4% in our service business our best organic service growth since we spun in april of 2020 so the new equipment business is good the service business is good it's dropping through with margin expansion and letting us really increase our eps. we were up 7%. but when we look at the markets what we tell all of our investors is look at our backlog. we have record backlogs for the company. so we're going into right now our backlog is up 5% this quarter in new equipment, up 14% in modernization that gives us a good 18, 24 months of work ahead that we know we need to execute for our customers. and we're going to do that all over the world >> can you give me the service numbers? including modernization numbers. they're extraordinary. and i think people have to

recognize the service business is a true annuity stream >> we have a maintenance and repair business which is a wonderful annuity stream our maintenance and repair business was up over 9% with repairs up in the teens. again, we thought that would come down a couple years post-covid everyone's back, you know, and elevators are in usage it's still expanding but the modernization business, think of that as refurbishment, upgrades, technology upgrades. fourth consecutive quarter, jim, we were up over 10% in orders at 16% this quarter and it's only going to grow as elevators are aging throughout the globe >> can you speak to me about the current depiction of china in china another 280 elevators and escalateors from otis will keep people moving in just one area but then the next page you start talking about maybe china's going to be down 10% versus the guide of down 5% to 10%. that's what i'm trying to get at

i don't want to be in a situation i'm so sanguine when you're telling me also be careful ahead of time. >> yeah. so the china market, you know, we came into april and saw really good results. in may they got a little weaker. we ended the quarter with the market itself coming down. we were expecting the second half to have an uplift, if i may, or an uptick. and we were going to see more book and ship type business. right now we've altered our outlook to really take the market down to minus 10. it was minus 10 in the quarter we finished at minus 5, jim, which means we grew share. but it is going to be down unless there's some sort of stimulus or policy easing or even just sentiment's going to improve. we were encouraged by the politburo's statement on monday. we're watching the policies ease but we've got to see that come through. so we took our outlook down, but our outlook in asia pacific countered it because of significant growth in india, which is why we raise top line

and bottom line and we're going to finish the year >> that's where i wanted to go because a lot of countries -- a lot of people still think china's the great growth country in the world actually it's india. india has younger people, it doesn't have the aging population what is it with india that makes it so difficult to do business there, or are you cracking the code >> listen, we've been in india for decades. we have branched throughout the country. we manufacture at our factory in bangalore in india for india we have a shared service center in india our first installation in india was well over 100 years ago. so it's a great market for us. it's run and led by our indian colleagues and it's growing significantly it's the second largest market in the world in the elevator and escalator industry infrastructure's expanding residential's expanding. multifamily. there is a demand in the middle class for mobility and good housing. and it's really showing in the numbers.

>> judy, are we talking about india the way we used to talk about chienda and it was the end-all be-all, as if china was doing good it was -- should we be talking about india from now? >> we believe china will always be a small market. it's moving more to be a service market, jim. there's 8 million units in china that need to be serviced and you and i both know it's all about safety and service it's the majority of our revenue. it's also mandated and in china and the rest of the world that's going to continue because we need to move people safely no matter how old an elevator is people should feel safe using it >> terrific. judy, thank you so much for delivering that terrific series of numbers once again. we're getting used to it it's been a great run for you and otis thank you to judy marks, chair and ceo of otis worldwide. really good to have you on the show >> thanks so much, jim >> absolutely. "mad money's" back after the break. >> announcer: coming up, hail fellow well meta

cramer looks back on the most recent quarter at the house that zuck built next

for most of the year this market's been led by the magnificent seven. apple, alphabet, amazon, meta platforms, microsoft, nvidia and tesla. while the rally's broadened out over the last couple months these seven stocks are still up anywhere from 40% to 214% for the year but now we've entered earnings season it's time for these companies to justify these monster moves in their stocks. just like the movie not all of them survive so far we've heard from tesla, microsoft, alphabet and meta platforms and they've been what i call a mixed bag with meta standing head and shoulders above the rest tesla kicked things off last wednesday and while the headline numbers were good there were plenty of hair on the quarter. tesla's earnings beat was fueled by non-operating items like

gains for foreign exchange hedges management said their third quarter production would be down a little bit even as they reaffirmed their full-year forecast just got to trust that they make up that production in the fourth quarter. their free cash flow came in much weaker than expected for the third straight quarter and wall street didn't love it when elon musk talked about spending well over $1 billion on supercomputers to fuel his autonomous driving ambitions i believe in musk. but wall street's gotten skeptical, which is why the stock tumbled 10% last thursday. the way i see it, this is a buying opportunity even as the quarter wasn't exactly a thing of beauty. next up this tuesday we heard from alphabet and microsoft after the close. i while i think they had a lot of similarities the market loved alphabet and loathed microsoft both companies delivered nice top and bottom line beats, though both companies delivered solid results for their cloud infrastructure division. microsoft's azure was up 26% and the much smaller google cloud up 28% both talked about their ai capabilities i liked it while also warning that bulking

up on the ai business will be very expensive but in the end alphabet's stock soared nearly 6% yesterday while microsoft's stock sold off nearly 4% and it's still going lower. why? the biggest positive surprise for alphabet was actually from their advertising business after being down and out for the past year google's search finally saw accelerating growth in what i have to say management said was 9 stabilization of the youtube ad business. that was a shocker alphabet's more or less an advertising play so if that battered business has bottomed it makes a huge difference i've got to tell you i signed up today for the nfl -- the football package on google -- on youtube and i find myself saying a lot of people play fantasy i think it's going to be a herm for them microsoft's a software company they didn't get a big boost from advertising. at the same time wall street doesn't seem to like their ai talk the bears think microsoft's too vague about the potential benefits of ai while being very specific about the high costs of getting it now, look, microsoft recently

announced pricing for the new co-pilot microsoft 365 products but they wouldn't commit to a launch date for co-pilot with cfo amy hood saying only that we probably wouldn't see the benefits from this business until the second half of the company's 2024 fis kfiscal year. at the same time microsoft made it clear their margins would likely be flat in 2024 thanks to you will at the ai spending and that's what crushed the stock. i think they were way, way too negative of course as i told members of the cnbc investing club i think the pullback in microsoft represents a true buying opportunity. while you might want to sell part of your position in alphabet into the stock's recent strength and for me some concerns about antitrust for my money the best quarter we got from magnificent seven was from meta platforms which delivered a blowout set of numbers last night like alphabet this is an ad-based business which is how meta could have an 11% revenue groekt this quarter up from 2.6% in the first quarter

what an acceleration that is first time they've had double-digit revenue growth since 2021 even better meta's guiding for 15.5% to 24.5% revenue growth in the current quarter and that is huge the business benefited from the improved ad market like alphabet along with many more company-specific catalysts higher engagement, more time spent on meta's family of applications and the use of artificial intelligence, which led to a 34% increase in the total number of ad impressions in the quarter all these companies love to talk about ai but i'd argue that meta's the one that's seeing the biggest tangible benefit from this technology and i knew he was working with closely wit ly with jensen hua% this also expects how ai recommends posts from accounts that you don't follow has become the fastest growing category of content for facebook's feed. hence the big increase in user

engagement that's what i think nvidia's really helping them on we're seeingsomething similar at reels, meta's tiktok killer, which now has an annual revenue rate of $10 billion. that's up from around 3 billion just last fall that is a much faster adoption than anyone was looking for. and i'm a huge reels fan and i didn't think they could do that. what makes this quarter so remarkable is meta seeing tremendous revenue growth at the same time its ceo mark chainsaw zuckerberg continues to put through draconian cost cuts and that includes laying off roughly a quarter of the worng force that's how they could put up a beat off a -- that would be higher if not for a restructuring charge the free cash flow came in at nearly 11 billion wall street was looking for 6.05 billion of course meta's still doing lots of investing they're putting a ton of money into this metaverse which continues to hemorrhage cash. but while investors might not love that, it's a lot easier to look past those expensive investments when the core business is printing money

most important meta gave you a terrific forecast. talking about roughly 20% revenue growth at the mid-point of their guidance. they cut their full year capital expenditure guidance by $3 billion although that's mostly due to a pushout of some investments till next year a lot of people gave up on this stock when it was getting obliterated last year but those who stuck with it like we did for my charitable trust continue to be rewarded shares up 4.4% today even as the major averages sputtered. and i've got to tell you this stock was up much more aone point. meta's rallied 159% year to date up 254% from its lows set last november there's still a long way to go before the stock's bumping up against its $384 all-time high from september 2021. but with a couple more quarters like this one like we got last night it might get there sooner rather than later. let me give you the bottom line here at the halfway-point of the magnificent seven earnings calendar we've got a bit of a mixed bag although i like tesla and microsoft wall street certainly didn't like those quarters while alphabet and meta gave you clear wins. that said, so far meta's

delivered the best quarter by far in this group and i bet this stock still has a lot more upside given its still incredibly low valuation versus its growth rate and a realization that someday, someday soon maybe the bet averse won't continue to burn through cash as it has been it and it's supposed to do in the near future. let's go to chris in d.c chris. >> caller: jim, how's it going >> well, chris, i don't know i didn't like the reversal late in the day it's got me a little concerned we'll see what happens tomorrow. how about you? >> caller: i'm doing great >> all right >> caller: so i have a 401(k) that i'm converting over to a roth i.r.a >> right >> caller: and i'm looking at a particular stock that's almost tripled over the last five years. i'm curious what you think about palo alto networks >> i think you're fine there was a downgrade today about palo alto from i believe opco saying it's moved up too far too fast well, you know what? that's the kind of thing that says to me all right, let it come in and buy a little more. so what i'm going to tell you to do is let it come in and buy a little more. let's go to jaden in arizona

jaden. >> caller: hey, cramer how's it going >> not bad, jaden. how are you? >> caller: i'm terrific. thank you for having me on the show i'm very excited to be here. >> thank you >> caller: i've got a quick question for you i'm looking at digital turbine and i've had this position for a while. i'm looking 59 it right now as either a buying opportunity or i can wait a little while to have it go down lower to maybe buy it more what are your thoughts >> okay. i'm going to come out against that one because i just think there is -- it's low valued but i don't think it has enough growth, and it's down 32% for the year in a year that's very good that's very disconcerting to me. let's hold off on that i don't think it might be the right thing for you. we've had a mixed bag so far from members of the magnificent seven that have reported earnings with meta being the standout from the group up to this point much more "mad money" ahead. a conversation with agco, trying to wrap your head around the

farm and ag business spanning across the globe well, there's no better place to go than agco i'm seeing some headwinds that are shaking up in the farming sector for the company's top brass. then there's sight and then there's hindsight. one will help you make money and the other could derail your investing strategy i'm sharing why this lesson is even more important during earnings season than ever. and all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer. ♪ (upbeat music) ♪ ( ♪♪ ) constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall.

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what to make of this quarter from agco one of the world's largest makers of farm dwimt here's a company that delivered an excellent quarter big top and bottom line beat impressive growth in every region and

management raised their full-year forecast pretty substantially. what's not to like, right? well, i don't know the stock did sell off 3% today. everything through the quarter i can't see an obvious explanation except for the fact that maybe south american sales fell a little short of expectations doesn't strike me as a huge deal given that every other region beat the estimates at the same time agco's guidance seems it will get hit with some margin contraction maybe that's a problem i don't know they still have some supply chain bottle flekz this is tough to figure. really i think wall street's worried this will be agco's last good quarter as the agricultural cycle finally starts to cool off. is that right or could that just be a mistake let's take a closer look with eric ansoti, chairman and ceo of agco, to learn more about the quarter. welcome back to "mad money." >> great to be here, jim especially on the best quarter in the history of our company. >> well, that's what i want to talk about, eric, because i think there are people when they see a quarter like this they say it can't get better than that. and yet i think you're setting yourself up for a multiyear move

and that people just want to try to call a top in an industry that frank frankly has to resist a top because we are a growth world that needs more food >> exactly in terms of demand the world still doesn't have enough grain. and with russia cutting off the supply in ukraine all the indicators showed that's going to drive grain prices up another 10% to 15% this has put more pressure on our farmers for productivity they're going to get even more hungry for the technology-rich productivity-enhancing equipment that we sell to them >> there was a moment in the conference call where you just basically said look, ukraine is a very tough thing to figure out but it does help profitability for the farmers. and i know we never want to be in a situation where we're trying to profit off of a war. but there is no doubt that this is good news for someone selling farm equipment >> exactly when you take supply out of the system, the supply of grain comes out of the system and

demand doesn't change, price goes up to equalize that and as price goes up that's a good thing for our farmers they get more income into their system that's what we're seeing today and we're not only seeing it from that situation but you see it from all of the climate events around the world. we've got such excessive heat in north america and in europe some of the key growing regions for crops around the world are really suffering from all-time record highs that's not good for crop growth. there's a number of factors that create tailwinds for continued good profitability for our farmers. >> i've seen your equipment and you've got giant combines, but you also have some smaller ones. but i associate you with the big guys you did say that smaller tractors are just not doing as well as the big ones right now is that because of some of the things you're talking about? >> well, there's two wizes one's small ag, one's large ag on the small ag we had a very strong business during covid and probably even a little bit of pull ahead folks like you and i were looking out our window and saying i've always wanted to take care of that project i'm

going to go buy a tractor now and take care of it. so there's a little bit of extra demand during that time. now interest rates have gone up and that small ag segment is a little more susceptible to interest rates so it's cooled off a little bit but we knew that was coming. that was very predictable. the large ag, which is the majority of our business, it is going strong demand is strong there's a lot of tailwinds to that we keep bringing technology to the marketplace. so it keeps bringing new reasons for farmers that they say i've got to have that machine for my business >> i do want to point out because i get very excited about smart ag because it makes so much sense particularly in a world where there's not enough people to work but it is still not a huge part of your business what makes you so confident that it can become a growing part of your business that we'll actually be talking about 25%, 30% instead of where it is now >> well, it depends what we call smart machines our whole fent business is the premium brand that we go to the

market for our agro machinery customers. we also have this retrofit business where we send technology modules onto our machines and every other brand of equipment so we have those both running in parallel both of them are growth engines. both of them are high margin both add a lot of value. and when you xien the two of them it's the majority of our sales already. >> that's a better way to look at it than the 5% to 6% number that if you're really too stringent about pure ag. do i have to worry about second half margins there were some comments about it i'm bringing these up because i want to explain to people why your stock went down maybe it shouldn't have. but these were the things people mentioned. i want to suss them out. second half margins. real problem >> well, we beat and raised last quarter. we beat and raised this quarter. i know your viewers like that. that's what we like. we've got a plan going forward we're executing to that plan there's two farktsz i would point to one was last year we had an

enormous amount of supply chain issues just like everybody else in the industrial market when we got to the end of the year we put a big push on getting that product out to our customers for their tax end planning that created a big slug of product that went through. this year's supply chain is much better so we by design made sure we're building to demand and giving customers a much more predictable outcome. we don't want that slug at the end of the year. so we've got a little bit of compare issue in december because of that issue. and the second factor is that we're continuing to invest in engineering. all of these menz, we've raised engineering 20% every year since i've been running the company. it's all focused on artificial intelligence and smart machines, on board compute we want to keep doing that according to our plan we're going to keep investing in engineering. there's more engineering spend in the back half than the front half we're continuing to add more value for farmers, grow our margins and grow our top line. >> one last question i was listening to what you say. i'm doing a lot of work with

insurers and they are all convinced the heat wave is not a heat wave, it's global warming. and we've got to start adjusting everything when i listen to what you just said about the heat i'm beginning to think you know what this is not just your normal weather. what does it mean ultimately for the ag business if we really do have definitive global warming that changes the way we view our world? >> well, it's going to put more challenge on the farmer. there's going to be more weather volatility in summers you're going to have very severe drought and in a nearby area you may have a very severe flood both are bad for crop production so it's just going to put more and more pressure on the farmer to be productive with whatever land they have so the use of technology to make the machines more intelligent to understand variations in the soil or the crop, they'll make decisions for themselves on behalf of the farmer to optimize yield and minimize the amount of inputs they're using because the inputs are expensive is exactly where this market's going. that's why we're investing so much in it, we see this is an

accelerating trend, not only supply and demand but the pressures from the climate are going to continue to make this a bigger deal. >> that makes so much sense. you've cleared up everything that i have because i've been a backer since the '30s. you know that. for your stock i don't want to see -- if there's chins i don't want to avoid them i want to challenge them hands on eric hansotia. thank you for coming back on the show >> great to see you, jim >> "mad money" will be back after the break. >> announcer: coming up, cramer wants to hear from you your calls on the thunderous lightning round. next our heritage is ingrained in our skin. and even when we metamorphosize into our new evolved form, we carry that spirit with us.

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it is time it's time for the "lightning round. rapid-fire calls 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." start with mitchell in texas mitchell >> caller: cramer, i need some help on this one, man. >> sure, absolutely. let me go to work for you. >> caller: hey i'm going to top golf tonight and i'm going to spend a bomb. so i need to make some back in the stock. how do you think i'm going to do >> the stock's been disappointing and i think it's strange because the business itself is good i think you should buy the stock. how about we go to david in michigan david. >> caller: hey, mr. cramer i'm i afirst-time caller my boy drew put me on to you a few years ago and i've been watching and listening ever since. >> i like that >> caller: so listen, the company i'd like to know if i should hold is idex laboratories >> i like idex

but swetis is crushing them. let's go to trent in florida trent. >> caller: second-time caller from clearwater, florida home of the phillies' spring training >> exactly we look good we can play. what's up? >> caller: yes, we can my stock could be considered an ai stock it's teledoc tdoc >> they had a very good quarter today. i think a lot of people are going to upgrade the stock now that they finally showed some upside momentum. i think you're okay for a trade but not for long john in washington john >> caller: yes good talking to you, jim hey, i have a question for you tell me what your thoughts are on lucid >> i don't like lucid. i like rivian.rivian's real. it's delivering exactly what you want and i think they've got a team there that is better than people realize. let's go to peggy in georgia peggy. >> caller: yes thank you, jim, for taking my

call i'm calling about johnson control. when i was a teenager it was in our paper every week and it was never below $97. and now it's 68. so -- >> you know what you are right. johnson controls is part of a group of stocks including carrier, including train, including eaton, including parker hannifin. these are great american companies, industrial companies that are making a comeback i would love to do a show about the comeback industrials, of which jci would certainly be in it let's go to brendan in my home state of new jersey. brendan. >> caller: hello, jim, i'm calling again. i have a different question this time >> okay. >> caller: i want to know what your thoughts on jd.com are. >> you have to buy -- this is so tough for me because alibaba's the only one i think has really got the momentum in china and they're also dividing it in two. you can get their cloud business, which is really terrific and that's the only one. and that ladies and gentlemen is the conclusion of the "lightning

round" >> announcer: the "lightning round" is sponsored by td ameritrade coming up, chipotle has piled on the profits. are investors too quick to see red when the burritos come loose? cramer's movable feast continues next thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade

♪♪♪ there's no going back.

we all want foresight, not hindsight. yet nobody ever wants to hear that they'll look back on this moment and kick themselves for missing out on a terrific buying opportunity. take today the stock of chipotle got clobbered like a baby seal, down nearly 10% it ever so slightly failed to impress on a couple line items when it reported last night. in hindsight i think people will look back and curse themselves for missing this buying opportunity. they probably won't remember why the stock sold off as someone who's run restaurants i can tell you that the most important considerations are traffic and through-put. for the past couple years most restaurants have been trying to walk a tightrope, raising prices enough to pass on higher costs but not so much that it drives customers away chipotle's different, though they could raise prices to more

than offset their higher costs and it wouldn't hurt traffic one bit. that's how much people love the food that's a very rare set of -- it's almost impossible to do what they're doing but even if you have great food like chipotle, you need to be able to speed up through-put to meet all that demand through-put's the single biggest determiner of success here chipotle's struggled mightily to maintain it. people will go elsewhere if they think that line's too long you can't keep anyone waiting, especially when your traffic's as high as i just mentioned. that's why when i read through the chipotle conference call i'm less concerned with same-store sales and revenues per unit right now and more focused on that new dual grill that can cook chicken in four minutes rather than 12 minutes with steak it's even faster. one minute instead of four minutes. right now this high-tech grill's only in ten high volume locations, and it's working. that's going to dramatically speed up through-put as they roll it out worldwide. that kind of through-put will bring up a store's annual sales

rather dramatically. that's what's important here i know there are many people who see chipotle's stock down this much and they assume the stock's beat i get it but i disagree. i've liked this $1,183 stock since it was 300 bucks i'm not backing away now through-put will soon be much better what's not to like sometimes you have to trust the process. here's another one honeywell. today roh t. reported the company beat estimates, higher segment margins, revenue on target, backlog was up and the franchise is the best in the industry only one line about where else aught maix was weak. that was telegraph yet the stock plunged 5 erase% today. i think that's a severe overreaction we own honeywell for the charitable trust when the stock was at the 208, 209 level from the 190s we downgraded honeywell from a one to a two one means buy now, two means buy on weakness. i feared the next quarter would be seen as a dud that's exactly what happened we took honeywell back to i aone today because there was nothing

wrong with the quarter time to build back the position. let me give you one of the last ones to keep things in perspective. a year ago align technology the company behind the revolutionary invisalign teeth straighteners hit a speed bump they blamed weakness in china problems in ukraine, inflation the stock got clobbered. falling from north of 300 down to the 170s in just three months joe hogan, straight shooting ceo, told you not to worry hardly anybody took him seriously. those excuses didn't seem to hold up under close scrutiny the bears didn't seem to care that if you owned align since june of 2011 you'd have a better than 1500% gain, just a fabulous long-term track record they wouldn't give hogan the benefit of the doubt then last night align reported an aizz maing number and today the stock rallied $45 to 385 more than double where it was when hogan gave you that litany of excuses that the market didn't want to believe it. some companies and the people who run them are simply bankable and that's true for chipotle and it's true for honeywell. just as it was true for align

when the stock rolled over last year hindsight says you should have bought align into weakness foresight says go buy honeywell and chipotle right now because they're in the same situation. i like to say there's always a bull market somewhere i promise to try to find it for you right here on "mad money." i'm jim cramer see you next time. "last call" starts now >> right now on last call, a big shock from ford, the automaker getting a fresh look under the hood of ev's and it ain't pretty. only intel going away doubters. we will hear from the ceo. and one states electricity prices set to go higher again and they could be a bellwether for the rest of america. move over, gamestop. there is a new favorite stock in town and it is tupperware. herb green where -- is