viewers. >> some deserve it more than others >> last night, one of them threw a no-no in major league baseball, michael lorenzen >> thank you for watching. >> you have a trade? >> international business machines >> all right "mad money" with jim cramer starts right now. "mad money" w starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make a little money. my job's not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer the market did it again, darn it we roared at the opening dow rallying more than 450 points from the get-go because this morning's consumer price index

number came in soft enough to illustrate that inflation's finally running out of steam so when the c pichlt came in around 3% way down from where it was before we all cheered. many people bought stocks. everything was fine, right wrong. that rally was a totally revolting development. sure enough the averages spent the rest of the session selling off dow finishing just up 53 points while nasdaq advanced minor. a far cry from that yoef heated opening. there's so many reasons why it was a mistake to buy stocks this morning. because i've been spending this whole week teaching you how to avoid the kind of mistakes that make you give up on the entire stock market we're going to unpack this one. unpack it good mistake number one the vast majority of people who follow the stock market closely were predicting that the consumer price index would be up around 3.3%. it was actually up 3.2%.

take note. when most prognosticators predict 3.3% inflation and yet 3.2% inflation, guess what it's not a surprise. and don't buy stocks aggressively on a data point that's not a surprise. that's right never buy into a phony surprise that the media hypes up for a faux bit of excitement you will most likely lose money. second mistake if you buy stocks in this kind of bogocity will you please use limit orders don't use market orders. pick a price you want to pay and put it in. if you use a market order you're at the mercy of your broker and the clowns who buy the stock futures with reckless abandon, they will end up causing you to get a crummy price probably the highest price of the day. those who did it, you did what we call top picking. you can bet that almost every single person that use aid market order to buy a stock this

morning is now down in trades and they probably want to sell everything and get rid of their stocks because they're so mad at themselves for paying up market orders put you at the mercy of an you unmerciful market stick with limit orders and you won't wind up radically overpaying for stocks. you might miss them but that's okay i don't want you doing this and then throwing your stocks away third mistake instead of buying in an up opening like today maybe you should think a little. maybe you use these moments of strength to look over what you don't like and -- >> sell sell sell sell sell. >> maybe a pharmacy stock, an oil stock that's been straight up for days as some of them have been you should offer that stock up, again, put acheting a limit ord that's nicely above where the stock closed the day before. that's what you're always looking for. remember, you want to sell into strength and buy into weakness, not the other way around that's not the way it's done finally, when you get the inevitable intraday sell-off that i predicted in our morning meeting show at 10:20 when i speak with jeff marks for the investing club you need to do

some serious watching for when the tide starts going back out almost all the stocks that got taken up at the opening went down because there was nothing grounding them to begin with just futures buying. but if you can find a stock that actually starts to go higher into the wave of selling, if the future buying ends i've got to tell you something that will be a winner. today we had a textbook winner >> all aboard! >> walt disney when almost all the other stocks were in retreat from their highs, disney's stock slowly step by step, inch by inch started to advance whenever you see that kind of action you know something special's happening because this is a stock that's able to defy the gravitational pull of the average after being cut in half the last couple of years now, i know this is not a trading show far from it. i'm almost always rallying against short-term traders it's almost impossible to pull off unless you're trading at a full-time job. and i'm not doing this show for full-time jobbers. but before i got the show i did have 25 years of trading

and that's when i learned this simple rule. look for stocks that can become buck a strong future selling trend. if they can withstand that kind of sell-off, that tsunami sell-off, there might be something special going on there you've got to focus on that's exactly what happened today with disney. disney's stock could buck the trend and finish up almost 5% because a bunch of good things are finally going on there first, ceo bob iger delivered a quarter that actually looked pretty bad on its face in fact, the stock got hammered down three bucks on the headlines. but to be blunt about it the people who were selling disney were being morons. disney does not have some sort of buffoon ceo at the helm iger's a seasoned veteran who's created a tremendous amount of value over the years and if there's one thing he knows how to do, it's tell an electric story so you need to wart for him to speak on the conference call is and those who didn't wait missed out on a fabulous run

shame on you he talked about better disney plus prices including some price increases, the possibilities of some initiatives to get rid of the pain of television's decline and future fall. fill up the cruise ships best of all, the balance sheet, it's no longer in tatters. there's some optionality not long ago i felt disney was cornered far from it. the stock started to rally as the calm went on largely i believe because iger knows what the heck he's doing. he was actually pretty funny by the way as the q&a went on i know owning the stock has not been fun >> the house of pain >> some plight have found it hard to take the humor i on the other hand found it reassuring many ceos would be shaky, they'd be tense, they would even be brittle after such a hideous decline that this stock has had. iger sounded in control. i think that's why the stock was able to mount a rally right into the teeth of the pullback in the first hours of the day the sell-off was indeed like just a storm, which meant there was a huge amount of pressure on every stock. to be able to buck that storm

pressure there had to be a tremendous amount of buying power. >> buy buy buy a sign there will most likely be buyers at lower levels if disney's stock ever comes in again. i like that trampoline underneath it almost always portends good news from the analyst community. when they see this kind of action they say to themselves this stock is saying finally the worst is over i'd better upgrade or go to hold from a buy how do i know this i've worked with analysts for years and they're loath to call bottoms themselves they like to wait until the market calls the bottom for them that's what i believe happened with the stock at disney today but let's go back to that feeling of being picked off by the market's opening when you see a huge up opening off a stupid phony surprise you've got to remember that doesn't change the prevailing trend of the market. right now the prevailing trend is to sell the big capitalization techs that's still going on. and buy smaller stocks or industrials with aerospace exposure particularly or stocks of companies that right now do business in china because the

chinaees government is back allowing tourist groups again. i can tell you that when you see the techs rally as part of a group opening that's going to produce a rout later in the day when the market changes direction. and then you use that rout to spot brand new spanking winners. winners like the stock of walt disney paul in new jersey paul >> caller: boo-yah, jim. how are you? >> jimmy chill is fine don't like the weather what's up with you >> caller: three-time caller and a very happy club member >> yes that's what i want >> caller: i want to thank you and your staff i've learned so much from the club it's definitely making a better investor i appreciate it. >> oh, thank you very much that's what we want. that's why we do it. >> caller: awesome the past couple nights you've been talking about pipeline companies. i have a small holding in kinder morgan i've had had t. a while i'm in the green it pays a nice yield

but it's kind of stuck >> it's not one of my favorites. i had one oak on the other night. i thought that was a better stock. and i've got to tell you i think enbridge is another stock and i can't believe i'm about to say this but i'm going to say it energy transfer. yes, e.t phone home is a better stock than kinder morgan sally in new hampshire sally. >> caller: hey, jim. >> sally >> caller: boeing's been around for a long time. when are they going to reinstate their dividends? >> well, boeing is safe. boeing is good cramer doesn't own boeing for his charitable trust and feels awful. got cowed when it stayed down for so long. that was a mistake but a very nice club member earlier paul said he's thrilled with what we do in teaching. here's some teaching i blew out of boeing too early, swapped into aerospace plays listen to me, i can tell you when you see the techs rally as part of a group like that in the opening that could probably produce a rout but in that rout what you can do is find winners and the winner is the walt disney corporation on "mad money" tonight we know

this ftc isn't too kind to mergers but i spotted one that present aid buying opportunity that nobody really likes then the espn penn entertainment deal sent shares of draftkings sharply lower. are investors getting a buying opportunity in the online sportsbook or will disney and pend entertainment annihilate them i'll give you my sense of the situation. and ralph lauren's stock pulled back after earnings. are investors finally getting a chance to buy the -- i'm going to dig into the story with the ceo. so stay with cramer. >> announcer: 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 1-8074cn0-3-bc miss something head to madmoney.cnbc.com.

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i've spent a lot of time talking about the mergers that have been blocked by the biden administration, which has taken an insanely tough line on antitrust enforcement. especially the ftc but tonight i want to highlight a deal that actually managed to get approved the big defense contractor l 3 harris got permission to buy aerojet rocketdyne for $4.7 billion. this deal was nunsd last december marking the end of a twisted saga for the storied rocketdyne which makes propulsion systems mainly for the pentagon, nasa and key u.s. allies way back in 2020 this company originally agreed to be acquired by lockheed marnlttin for $4.4 billion. but the deal was challenged by other defense contractors

raytheon and others on antitrust grounds. the government was receptive because aerojet rocketdyne is the only independent producer for rockets and miss new zealand this country when the ftc sued to block the deal in early 2022, lockheed saw the writing on the wall, immediately threw in the towel so you can imagine wall street's attitude when l3harris tried to buy the same darn company less than a year later. we know there were multiple rounds of requests for information from the ftc along with outside pressure from senator elizabeth warren from massachusetts who very much wanted to shoot this merger down ironically even lockheed martin the last company that tried to buy aerojet objected to l3harris buying it on antitrust grounds but unlike lockheednese these guys had a strong argument whole time for why their acquisition would not be anti-competitive. there's no overlap aero jett rocketdyne makes rocket engines l3harris doesn't they don't even do business with

each other and that's a lot more than lockheed could say as they're aerojet's largest customer ultimately regulators allowed the deal to happen because even lina khan's federal trade commission needs at least a ina of an excuse if they're going to take action and & in this case they didn't have a fig leaf. the transaction goes through i bring up all this history because it sure seems like it would have been a gigantic win for l3harris a company i've liked ever since it was create bid the merger of the old l3 technologies which i also liked for a long time, and harris corporation. this company made no secret of its desire to challenge the big five defense contractors and that's lockheed, raytheon, rtx as they're known now, boeing, north rohm grum sxn general dynamics l3harris makes all sorts of electronics, communications equipment, all high-tech stuff think ibt graited mission systems, intelligence reconnaissance, space, avionic, electric warfare, precision engagement sensors and drones. the aerojet rocketdyne purchase

gives them a growth engine with respect to areas that have gotten a huge boost from the war in ukraine like javelin missiles i think it's a big positive. the stock sure doesn't agree with me, doesn't trade that way at all in fact, the day after we learned the ftc wouldn't block the deal l3harris saw its stock fall more than 6%, although some of that's earnings related this is just the latest leg down for a stock that's been trading steadily lower since the spring of 2022 when it peaked not long after russia invaded ukraine what's going on here all right. why don't we start with the longer-term underperformance i think l3harris has seen its stock lag behind the defense group because it lacks highly visible contributions to the war in ukraine there's still lots of their technology on the battlefield, especially high-tech radios and anti-drone rocket systems. but for the most part l3harris makes products that operate behind the scenes. you don't see them communications equipment, electronic warfare, avionics it's just not as visible or dramatic as shoulder-mounted

missile launchers or even drones the additional of aerojet rocketdyne changes that. their solid rocket motors are used in the javelins, stingers and guided missile launched rocket system weapons that get so much press. in fact, in april the pentagon invested $216 million to expand and modernize aerojet rocketdyne's manufacturing facilities precisely because they want to boost production of critical components for extremely necessary missile systems. however, before the deal closed, when we didn't know whether it would go through i think it weighed heavily on l3harris's stock. there was serious doubt if the ftc would ever let it go through. not this ftc, satellite in fact, on the day after the acquisition was announced two analyst downgraded l3harris from buy to hold and the stock tumbled this has been a really underperformer many of the things that held the stock back got res ovltd the moment the deal went through the results have more to do with its earnings report which came

out the same day aerojet got the ftc blessing the stock fell a hideous 6% on the news but i've got to till i think the quarter was all that bad. management raising the full-year forecast, clean beat and raise unfortunately they raised their revenue forecast by more than they raised their earnings forecast, raised revenue more than they raised earnings. what does that mean? it implies that the margins are going to be lower than expected. wall street hates margins going down personally i don't like weaker margins if they're accompanied by really stronger earnings. plus management has previously said they expect the profitability to improve throughout the year. as they get past some lingering supply chain issues. i believe them so here's how i see it l3harris has been a good solid defense contractor ever since the old l3 merged with the old harris roughly four years ago. i met management, i really like them i like what's going on for most of the time it was a terrific stock to own. but when the defense stocks roared last year l3harris got left behind. largely because it doesn't have any standout weapons systems

that make it an obvious way to play the war in ukraine. the aerojet rocketdyne deal it changes that while the stock sold of o'on the initial news of the ak wiztion that's only because money managers assumed the transaction would get blocked. when the ftc let it happen without a legal challenge that was good news for l3harris even if the stock hasn't traded that way. so what's happening? i think you're getting a chance to buy a high-quality company at a nice discount to its average valuation. think about this over the past four years l3harris has sold -- and remember, we always have to look for price to earnings multiples. this sold for 17 times earnings on average but now it sells for just 15 times earnings that's a bargain meanwhile, even without aerojet rocketdyne they're putting up some solid numbers but the bottom line here in this very strange story about a company i really like, the addition of aerojet rocketdyne l3harris now has a powerful growth engine that's involved in some of the hottest areas of the defense space like modern missile systems that are vital to the war in ukraine. that's why i see a lot to like

here in this and why i'd be a buyer of l3harris right here the market's making a mistake in my opinion and that's your opportunity because in the longer term it will become quite obvious that this stock is just way too cheap versus the rest of the defense group. "mad money" is back after the break. >> announcer: coming up, the competition in the bedding space has gotten a lot fiercer this week can draftkings keep up with the cohort's new juggernaut? stay tuned

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♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ two days ago penn entertainment, the big gambling company, announced the termination of its long-standing partnership with barstool sports and then a new collaboration with disney's espn they're even rebranding their digital sportsbook as espn bet

penn's paying a lot to disney to make this happen but wall street clearly thinks it's worth it given that penn shares shot up 9% yesterday now, last night i got a chance to speak with penn's ceo jay snoweden and while i'm not sure how this will play out for his company, i do think it's great news for disney. another reason why i feel strongly about the stock as i said at the top of the show. tonight, though, i want to talk about the pin action from this partnership. the moment we learned penn was joining forces with espn the stock of draftkings saw its former red hot equity get put through the meat grinder it's pulled back from 31 and change to 27 and change like that in an instant, which is stushl i know the stock was trading 11 at the end of the year, but this thing's been a rocket ship and now the rocket ship has just crumbled and i think has ridiculous don't forget, when they reported a week ago they didn't give us a good quarter, they gave us a

spectacular quarter. phenomenal the stock surged 15% on the news although it got dragged down by the ugly tape friday finishing the day up just 6% but this is a tremendous story in each of the first three weeks of this -- i'm sorry, in each of the first three days of this week we've woken up to an analyst upgrading draftkings the stock tried and failed to rally in response on monday and tuesday. then on wednesday after the penn entertainment espn news the stock simply got clobbered no one could take it before losing another 1.8% today. people think this thing's terrible now i don't think that way i think it's a buying opportunity. let me tell you why. first we know how draftkings is doing. they just reported a stunning quarter. and now you're getting those numbers not just for free but for a big discount while they are headed right into their sweet spot, which is the nfl season the betting season while their monthly unique payers, basically active users, came in even with expectations, up 44% year over year, their average revenue per month of unique payer was much stronger than anticipated up 33% year over year.

that's my favorite metric now. the combination of 44% user growth and 32% average revenue per user gave you a monster good revenue beat they actually had record quarterly sales, which is impressive because usually it's the fourth quarter that's when it's unparalleled because they've got the whole football season. this one didn't really have anything like that in the end draftkings saw its revenue growth accelerate from 84% in the previous quarter to 88% this time. look at those numbers. they're amazing. it's incredible. and you know why because they've got the best app. that is in the end this is a technology business. it's incredibly easy to use website that keeps bringing people back and it's fun on top of that draftkings raised its full-year forecast yet again and gave us great guidance on the all-important fourth quarter too. but you know what? those magnificent revenue numbers weren't even the best part of the story. like every other well-run growth company draftkings has spent the bulk of the last year pivoting toward profitability late last year management said

they'd be turning a profit for the fourth quarter this year unfortunately they paired that prediction with ugly earnings before -- over the course of the year, though, draftkings has reported strong ebidta numbers last week we even learned they had an ebidta profit and that really is the way to look at it, ebidta of 73 million for the second quarter analysts were looking for 20 million. they did 73 million. they delivered their efficiency quarter of adjusted profitability six months of ahead of schedule, also raised their ebidta forecast for the third quarter in a row remember that is the key profit met rack we're looking for and that's why the stock initially surged in response to last week's earnings report. since then we've seen a lot of profit taking that only got more aggressive when we learned that penn entertainment is joining forces with disney which people think is going to destroy draftkings come on. draftkings sold off especially hard because they have their own partnership with espn. i guess some people assume that relationship's now in peril even as i think draftkings is in the catbird.

let me tell you why. i don't mean to be dismissive but let me tell you why i am not worried about what could be an unraveling of the deal the draftkings espn partnership is actually a marketing deal where draftkings has the semi-exclusive ability to advertise on espn's programs and website but it goes both ways because draftkings is also committed to spending a certain amount of its advertising budget on espn. it's not clear whether the deal's even been working out that well for them in fact, i'd argue that their marketing deal with espn is a distinct negative for draftkings that doesn't bring in the customers they expected. they made this deal in 2020 when their focus was on generating revenue growth at all costs. now the goalposts have shifted and the company needs to deliver profitability first. even if disney decides somehow that they went out -- want out of the deal i'm not convinced it would be a negative for draft kingsz, it would be another reason to buy. and i think it would be good if draftkings could pull out of it. in fact, one of the smartest reactions i've seen to this week's online gambling news came from carlo sapt ntorelli he's from deutsche bank.

he argues penn espn could be good news for draftkings because it means they can get out of that espn contract deutschebank describes that deal as a quote absolute anchor they don't need to spend so much money acquiring new customers. they have other ways to do it that are better and cheaper. the whole penn barstool espn episode makes me want to take a step back and look at the sports gambling industry as a whole and when you think about how things are playing out it's clear there are very few major winners in the space actually, there's really too fanduel, which is owned by flutter entertainment plc, whose shares are listed verseas, and draftkings that's it. duopoly. when you look at the market share data fanduel's in a strong first place, okay? in most mature markets draftkings in solid second place. nobody else coming near. it would be great. i like penn. maybe penn can go up in the ladder but draftkings is very far ahead. now, penn does seem confident that their new espn partnership will help then grow market share. maybe it will. but draftkings already has

tremendous market share. they don't have a problem bringing in new people right now what they care about is monetizing those people effectively. and they're very good at that. last week we learned they're making huge progress on the profitability front. while many states still don't allow it bottom line with draftkings pulling back nearly 20% from its post-saernings high after an amazing quarter, you're not only getting their staggeringly positive second quarter for free, you're also getting the stock for an extra discount over this penn-espn tie-up that doesn't hurt them in any way i can see. i like draftkings and i think you're getting an incredible buying opportunity of the stock after the company's gotten religion and is making a ton of money. mark in new york mark >> caller: hey, jim. i want to give you a levy family boo-yah. >> i like that a familial boo-yah has always paid off on our show what's up? >> caller: i want to ask you about roblox after reporting earnings

yesterday it got hit pretty hard i know recently they had chainsmokers concert experience inside of roblox and last month they released roblox open beta for the meta quest 2 headset could this be an immersive experience meta was hoping for >> i'm going to say this to david because yuuki because i know he's watching the show and he's a good guy. start making money i'm not recommending stocks of companies that are losing so much money make money, i recommend. don't make money -- >> sell sell sell! >> i like draftkings and they're i think giving you an incredible opportunity because they're making money now. much more "mad money" ahead including my exclusive with ralph lauren after declining to raise full year guidance is the company practicing what i call underpromising and overdelivering then investors are sick of hearing laser focus but there's one use of the term i actually find enticing. i'll reveal what it is and how it can help you make some money. and all your calls rapid fire in tonight's edition of the "lightning round." so stick with cramer

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okay what the heck just happened to the stock of ralph lauren? unlike the rest of the apparel stocks this one's been doing very well for 2023, at least until it started pulling back. and today we found out why, i guess. this morning ralph lauren reported a quarter that wall street was unsure of but the stock finishing the session down, i say weirdly, 5%. while the headline numbers were solid in line revenue pashd with a nice earnings beat the guidance for the quarter some thought was soft and management declined to raise their full year forecast. plus their north american sales came in weaker than expected

i say that compared to the rest of the apparel space including the two that merged today, capri and tapestry, these numbers were pretty darn good even great comparisons but apparently the market disagrees with me. that's okay. then again i think a great deal of the pullback has to do with investors looking for any reason to ring the register because there have been good gains here. has the stock come down enough to make it enticing? let's talk with patrice louvet he's the president and ceo of ralph lauren to get a better sense of the quarter. it is an honor to have you down here at the new york stock exchange >> jim, great to be here >> thank you, patrice. now, i think a lot of people don't understand the way apparel works. there are certain iconic brands that when their stocks go down it gives you an opportunity because there are things like average unit retail we can look at we can look at quiet luxury. we can look at drive the forecast, expand for more. these are not just slogans at your place this is real stuff and it works for time, for many, many years so i want you to explain to us why you think this is not a bad

time at all to own ralph lauren. >> absolutely. well, it's wonderful to be here. we were really pleased to come in ahead of our commitments both on the top and bottom line in what i think you'll agree with me is still a relatively volatile environment >> unfortunately, yes. >> but what we're seeing is our strategy of elevation, elevating the product, elevating the consumer experience, elevating the storytelling, continuing to play out and you mentioned it our u.r. was up 15% this quarter. we've been raising u.r. for several years. the consumer is seeing the value. our value perception has never been this high the consumer's telling us that our luxury perception is the highest it's ever been and i think the combination of this iconic brand that we have that's very differentiated from any other brands that you have in the industry and the diversity of our growth drivers positioned us really nicely both this year and for the long term. >> i don't want to be too anecdotal because you and i were empirical thinkers but jennifer lopez, taylor swift, joe biden at the coronation these are people -- you did not

pay taylor swift to wear ralph lauren. >> that's absolutely right >> and there she is. you did not pay jill biden to wear -- >> absolutely not. i think it's all about desirability in this space that is the key operating word in the industry. and i think as you look at the people that actually want to wear us. beyonce opening her washington, d.c. concert wanted to wear ralph lauren so we areappealing to a very broad range of individuals and consumers. and what's very exciting is we go all the way from that newborn all wait to the silent generation and to your point we're seeing people from all generations wanting to wear ralph lauren >> we have to say wall street did not like north america i question wall street on this because the fact is that your inventories are lean, which means you have pricing power it is obvious you can raise price but not necessarily because you're trying to keep up with inflation but because people like the brand so much. but what am i missing that wall

street thought was wanting with that north american number >> i think obviously the guidance we provided for q2, which was conservative -- >> it was conservative >> -- slightly below what people had expected frankly i think it's important to look beyond one quarter there's a lot of volatility right now. there's a lot of uncertainty across the channels. what we feel really good about is our core consumer, which you know is a more elevated consumer, is resilient you're looking sharp we're bringing in new consumers that are younger higher value consumers. that positions us really well moving forward our product strategy that's driving both the core and expanding for more is resonating what's actually really interesting right now if you look at consumer behavior in the u.s. and around the world, you mentioned quiet luxury >> yes >> consumers are moving back to quality, timeless style -- l listen, you know this company very well. those are key words that represent what ralph has built

for the last 56 years. >> right >> consumers also shifting their wardrobe away from the covid times. you're wearing your tie today. >> right >> to more sophisticated casual. chinos, oxford shirts, dresses suit separates that's at the very heart of what ralph lauren stands for. so i think we're really well positioned in this volatile environment. >> and i look at new measures and i think our viewers should look at them i look at, say, impressions. why? because facts can't be tricked that's genuine you mentioned beyonce. how many people saw her? >> j. lo was the number one i mentioned. 8 billion impressions. >> now, 8 billion, again, that is how -- what does that translate for sales in your estimation or is it just mindset? >> i think it's difficult to link it directly back to sales but the combination of brand visibility like that, because that's just one example. we had ariana grande wimbledon. she has more than 320 million followers. she wore ralph lauren.

david beckham. so the combination -- actually all our marketing activities coming together drive desirability, drive brand visibility and drive the interest we're seeing around the world. >> let's talk about around the world. your european numbers were extraordinarily strong people have gotten used to europe not doing well for anybody. but the numbers that you had demonstrate that there is -- i don't want to call it a boom but a much stronger consumer than people think. >> yeah, europe's been good for us for several quarters now. in the context that's pretty challenging. the war. consumer sentiment inflation. i'm really proud of the work our european teams are doing they're really bringing our core strategy to life i was just there i was in both london, manchester, munich and berlin. so i got to see in action the work they're doing on the consumer, the engagement at wimbledon was a wonderful showcase for the brand, the work they're doing on product and the fact they're really showcasing what consumers are looking for today, which i mentioned before is the core sets of products elevated positioning

and then the work we're doing in stores we have an amazing presentation in our munich store that we just relaunched we have a new presentation of home and cadevet in berlin the combination of these three factors is driving -- >> you did not go to the world of ralph lauren stores, which i'm very excited, when in amsterdam. >> absolutely. we opened one in amsterdam you're absolutely right. one of the key strategies from a marketing standpoint is to focus on the top cities in the world and the drive toward dtc, so we can have the direct relationship and you are seeing us open stores, in amsterdam, in singapore, across asia and even here in the -- >> i was going to say i think you're understored, in our country. >> you're absolutely right we have historically been overpenetrated on the east coast and southeast. the west remains a big white space for us actually, one of the biggest white space this company has significant growth potential here in our home market. >> six years, 70% average a uni

retail nobody really has that record during a very inconsistent period if you can continue that pace, the stock deserves to be much higher >> here's the strategy the strategy is we want to reposition ralph lawyeren back to its luxury roots. ralph was telling my a few months ago that when he launched his first tie -- >> right >> -- he launched it as a very premium proposition. 2 1/2 times the price of a christian dior tie our roots are luxury our focus now is to reposition the company to be closer to the european luxury players. part of that is continuous elevation on product, on storytelling, on in store. and that enables us to drive value proposition which enables us to drive a.u.r. >> we saw the merger today of two companies that i think both wish they had your book of business ska prooe and tapestry to me you've got the consistent one. that's what i like i like great brands.

ralph lauren, great brand. patrice louvet, great manager. rl is down too much. i just said it i'm willing to take the pain if i'm wrong. but i don't think i will be. "mad money's" back after the break. >> coming up, cramer wants to hear from you. your calls on the thunderous "lightning round." next

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helping the small stand tall. it is time it's time for the "lightning round" on cramer's "mad money. buy -- play until we hear this sound and then "lightning round" is over. are you ready skee-daddy time for the "lightning round"

on "mad money. let's start with steven in illinois steven >> caller: hey, jimmy, what's up >> not much. you actually me, steve >> caller: i'm calling on public storage. they issued 2.2 billion in senior notes to purchase simply storage from blackstone. >> and i like that i think with a 4% yield this is the right level to buy public storage. i'm going to have to say -- >> buy buy buy >> now i'm going to steve in new york steve! >> caller: baa baa baa-boo-yah, jim! >> steve good to have you on the show what's up? >> caller: club he mmember here. and wanted to touch base with you about this provider of maintenance services for power plants and refineries. this company reported earnings on the 7th and it beat analyst expectations on both earnings and sales. the stock seems to be responding well to the report and i would like to hear your thoughts on prim primrose services corporation.

>> i don't know it i've got to do work for you. steve gets some work to be done by "mad money" team. bennett in florida bennett! >> caller: jim appreciate you taking my call. >> oh, thank you what's up, bennett >> caller: i got into ring central around $60 i know it's a bit of a mess right now. >> you know what i saw vlad shmunas is going to step upstairs, executive chair i'm not a fan. it's very crowded. it's too crowded, too commoditized i'm going to have to say no. i'm sorry. now i'm going to go to jack in new jersey jack >> caller: hey, jim, what's going on, buddy? >> not bad how are you? >> caller: pretty good pretty good. jim, listen, with the three most popular ai games -- most popular selling ai games in the world right now and the fact that acti activision's meshlg v merger was just approved, do you think it's

going higher and number two it's going to be in play for a merger >> the only chinese stock i recommend on this show is alibaba and i'm not that keen on owning chinese stocks. i do think, by the way, take two interactive had a terrific quarter. john in minnesota. john >> caller: hey, jim, how are you doing? >> i'm doing well. how about you? >> caller: good. i've got a question on smg scotts miracle grow. i see it's been down the last couple years it's got a yield of 5% >> here's the problem. they have got to try to fix the notion of being way too dependent upon the gardener. they have to try to find something else and i've got to tell you the weather's been bad on the weekends people aren't used to spraying the extra stuff. it's just too dicey a stock for me and 5% yield is not enough to entice me. alex in florida. alex >> caller: jimmy chill, first time long time >> there you go. that's what i want what's going on? >> caller: all right, jim. so the company i'm calling about

has had five quarters of consecutive eps beats over estimates. double-digit year over year revenue growth on their last earnings call they increased guidance to ubl did-digit same-store sales growth they've increased their revenue. and they've got agreements in place so they're not overly reliant on the spot price of chicken wings. but the stock is 27% below its may high of $223 a share i think that's too cheap, jim, but tell me what am i doing with wingstop >> oh, wingstop. i love wingstop. buy buy buy. let's go to conor in new hampshire. >> caller: boo-yah >> what's happening? >> caller: not too much. i know you like adobe. >> you bet >> caller: but with maya suite and generative ai i like adobe too but i believe autodesk is well positioned. >> chief, i'm with you conor's right. auto desk is now, adobe is one of my faves but i left out auto desk and that's a mistake nvidia, let's remember what

larry williams said. it's going to go lower we're not going to give up we just accept the fact that stocks that go up 200% come down a little i gave him a two-fer a three-fer! auto desk, adobe and nvidia. let's go to mark in texas. mark >> caller: hey, jim, how are you today? i really enjoy y'all's show. i've been watching you since i've been retired. i bought -- >> there you go. >> caller: i bought pioneer 205. >> then i love you, man. 205. we bought it for the charitable trust. it is going higher and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by td ameritrade coming up, why a kelloggs break-up may lead to a breakout at the breakfast table don't skip the most important meal of the day. when we return

good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. the citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. hi. ♪♪ you don't have to keep tabs on rotating categories... this is the only rotating i care about. ... or activate anything to earn. your cash back automatically adjusts for you. can i get a cucumber water? earn 5% cash back that automatically adjusts to your top eligible spend category, up to $500 spent each billing cycle with the citi custom cash℠ card. i love it... [voice vibrating]

almost every ceo loves to say they're laser focused on this brand or that issue or this idea laser focused. it's the mother of all cliches our eyes pretty much glaze over when we hear it because we hear it so often. but there's one too many i'm willing to buy into the laser focused idea and that's when a company decides to break itself

up into different more focused independent entities it tends to work, even when we least expect it. which is why i actually like this kellogg's deal we talked about last night kellogg's being divided into w.k. kellogg and kellanova a snack food business. the "wall street journal" panned the break-up they're particularly disparaging the cereal business, it doesn't have a lot of growth but i come back and say hey, wait a second, maybe the cereal division doesn't have much growth because kellogg's had to focus on two very different businesses at once you don't find snacks in the cereal aisle and you don't eat snack food for breakfast, or you shouldn't. kellogg's has big famous brands like special k, froot loops, cheez-its, corn flakes and i think they could be pulled apart with two separate companies. i know it's hard to believe companies can create value simply by breaking themselves up but we've seen it happen so many times before quite simply, when i don't believe in the laser is i get it wrong. classic example the merger break-up of the old united technologies and raytheon. when they got together united

technologies spun off these two really boring companies, air-conditioning and elevator. that's carrier and otis. two storied brands that nobody wanted to have anything to do with because their growth rate seems to be stalled or nothing just like kellogg's cereal right now. as i used to say at the dotcom, wrong. otis under the leadership of ceo judy marks has become a totally different nice growing elevator company. the numbers have been terrific the growth is episodic because they make so much money off the services side. in fact despite what you hear about the office towers and work from home, otis has continued to deliver excellent, excellent numbers. since the break-up the stock's up more than 85% over a period where the s&p's rallied 79%. everybody thought it was going to be spun off it's been an outperformer. you know what's been impressive? the heating ventilation and air-conditioning company that is carrier. the ceo has re-energized a business that got no love at all under the umbrella of united technologies because united technologies was laser focused on aerospace, not anything else.

since the break-up carry err why's stock has rallied 227%, clobbering the s&p when ge broke itself up, core general electric, largely an ore aspace company now, spun out its ge health care division which sells heavy-duty medical equipment. ge's given you a 62% return since then ge health care 20% s&p about 16%. we're so blind to the darn strength of these shrink to growth stories that we overlook them even when they're staring us right in the face hey, remember when excelon, the boring giant utility spun off its nuclear power business as constellation energy they didn't want the controversial nukesnder the same roof as their traditional utility business i get that the resultwhile excelon has performed in line with other utilities constellation's energy stock has nearly doubled and it's crushing the s&p. just a whole different ball game i mention these three break-ups because they seem as unlikely to make you money as that w.k. kellogg and kellanova do there were lots of moans and groans when those spinoffs were

announced just like these. but the management proved to be good to their word they are laser focused on their small businesses so the break-ups have been huge wins for all involved. i bet actually the same thing is going to happen with the pieces of the old kellogg too i like to say there's always a bull market somewhere. i promise to try to find it for you u right here on "mad money." i'm jim cramer see you next time. "last call" starts now