>> bonawyn? >> trend is strong, xle. >> grasso? >> ethereum trust. in january it was four and change, in june, seven and change, it was 9 1/2 in august. this is going straight up now. . this thing is going straight up now. >> "mad money" 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 make friends. i'm just trying to make you a little money. it's my job not just to entertain but to educate, teach. call me at 1-800-743-cnbc or tweet me @jimcramer. a mega-cap company doesn't get to stay a megacap company unless it's indispensable and

brilliantly managed with spectacular balance sheet and tremendous prospects. all of which we seem to forget at the drop of any bearish -- right now there's a buyer's strike where the most beloved and respected companies the mega cap nation states of technology have something going on. we saw it again today with the dow 57 points. s&p dipped. but the nasdaq where the mega caps all live, it tumbled .89%. it all starts with apple as it often does. the $2.78 trillion market cap capitalization entity. the stock's been clobbered after reports about how there may be an iphone office ban for chinese government and state-sponsored entity employees. if true it could be a real hit to earnings. no doubt about it. but remember, china can be opaque, fickle and capricious. i want to focus on the knee-jerk reaction of the story, though, because it's typical of the action in the megacaps, not just apple but also amazon, alphabet, tesla, nvidia, meta platforms

and to a lesser extent microsoft. everybody's always so eager to panic out of these great stocks that it's all too easy for a couple of lightly sourced headlines to trigger a torrent of selling -- >> sell sell sell! >> with no buyers anywhere to be found. maybe a little exaggerated. but you don't see a gigantic stock slip from just under 190 to 177 in just a couple of days when lots of people are eager to buy, do you? let's take this apple situation head on because i know you care about it so much. when the story broke over two days that china might be banning iphones in government offices on day one and then on day two the offices of state-sponsored entities, lots of companies there, the sellers came like a wave rolling over a sand castle. nobody i know bothered to check whether the stories were written in stone or even true. they sold first. >> sell sell sell. >> and then maybe they ask some questions, why is it like this. here is what i surmise is the reality behind the selling. first apple's market cap is down

300 billion from where it was at the end of july but the decline's logical given that the stock had overshot itself, up more than 50% for the year from its highs in july. many traders believe it deserved to come down, deserved. they say it should never have been that high in the first place. i hate that kind of a pseudo analysis. china's the only real growth engine traders believe. if you take it away apple's earnings will collapse. totally untrue but they don't care. the endless skeptics who've been wrong the whole way up grab the moik. they've the ones who tell us apple's a company who doesn't have any growth in any way. so why would you own it to begin with. you know me i say own apple don't trade it. i didn't change my mind. i don't know where the stock will bottom. but i know this. i'm a huge fan of the facts. and i don't know the facts about china. sure if apple loses china like the state department did unexpectedly in 1949, there's going to be a hit to earnings. but why doesn't anyone else publicly say you know what, maybe tim cook the ceo can come up with something that offers a compromise given that apple's

one of the largest employers in china and the country needs all the employment it can get. we forget china once our dominant trading partner is now behind mexico and canada. china's exports dropped 8.8%. i know the chinese government may be upset with the alleged hard-line stance expressed by u.s. commerce secretary gina raimondo after her recent trip. she was just on our show. she's talking about building high fences in small neighborhoods. the neighborhood basically is national security that said the prc banning iphobes for government employees doesn't help solve their youth ub employment problem, does it? it's over 20%. or at least it was before they stopped issuing that number because it's too weak. you don't drive off a great employer like apple when your economy's falling apart. more important i bring up my acerbic view because i don't have enough fingers and toes to count how many times i've heard the best days of apple's growth are behind them. it's true there hasn't been a lot of growth lately no one's dismiss that. the numbers don't lie. but growth here has always come in spurts related to new iphone releases. if you sell the stock at this moment please don't forget that

you are selling ahead of one. you're also selling it in spite of a bountiful and growing service revenue stream including new programs, new content including some very exciting u.s. soccer and new ideas you never heard of now. but i predict you'll want so much it will be painful not to have them. in other words, apple can reinvent itself in another way if china somehow becomes problematic because -- that's how it got to be a $3 trillion business in the first place. it's a great technology company. i don't want to just single out apple though. think about alphabet there have been so many times it's failed to hit its earnings but out of nowhere you have 24 gigantic fran xhooiz in youtube and an amazing offering in cloud infrastructure. apple is not a static entity. amazon used to be a bookstore, just books. i remember visiting borders almost two decades ago in ann arbor where their headquarters was and they were discussing how to fend off amazon. does borders even exist? then amazon went to music, then general merchandise. then they basically invented cloud computing with their amazon web services. and then they got into

advertising. every one of these at one time or another has been questioned as running out of gas. i've done some of that questioning myself. but the critics, wrong. tesla's been buried so many times we need a new television show nci cemetery to get to the bottom of where it's buried. but has anyone noticed the endless reinvention of elon muss sxkt worldwide success of this man who's been doubted at almost every turn? tesla was supposed to have gone bankrupt a half dozen times. or how about meta? it hurts to talk about the colossal failure mark zuckerberg has had with this metaverse. pure secondhand embarrassment at least for the moment. only to watch him keep spending money though while pivoting back to the lucrative instagram business and the fledgling reels, their tiktok killer. but the pivot, it's working. i know secretary raimondo once said if you ban tiktok you'll have a hard time getting the vote of the under 35 crowd forever. i wish she had not said that. admittedly it's a fair point then. but why not just say okay, that's why we should all go to reels? meta changed. zuckerberg changed. the only megacap that's never seriously been denigrated

frankly is microsoft. perhaps that's because it's such an amazing plain old franchise that was already challenged by the government over 20 years ago. maybe it's because microsoft is such an incredible cloud computing business, azure. but it wasn't always like that. when i first met the brilliant ceo satya nadella he was telling me -- or selling me frankly that one day his cloud business could be $18 billion a year. but we're walking down the street. $18 billion a year. i was like yeah, please. i was highly skeptical. as it was doing about half of that money at the time. it didn't seem to be important to anyone else at the company other than this guy. black t-shirt, 18 billion -- oh, yeah. sure. the company's intelligent cloud business which includes azure and a couple other services and enterprise business is now a $90 billion business. not 18. 90. oh, and don't get me started about nvidia which for ages was dismissed as some gaming chip company. before chatgpt i was screaming from the rooftops this $100 billion business was something special. now that nvidia's a trillion-dollar company i'm finally hearing good things about artificial inside.

thanks for nothing. at every turn we hear doubts, we're informed of the mistakes, the investigations the departures, the poor releases, the shortfalls, the disappointments. do we ever hear about the wins? i'm not saying this is the nfl, which starts by the way tonight on nbc. lions playing the chiefs. but i'm sure it has occurred to 95% of you that the chiefs are the better team. under coach andy reid and quarterback patrick mahomes. why can't we ever accord any of the companies i just talked about with the same stat snus bottom line if detroit somehow triumphs over the chiefs we may have some short-term fears but anyone who thinks the chiefs' best days are now behind them it should be run out on a rail. somehow we put up with it constantly in the business meeting. all it does is hurt you as an investor. something i try hard not to do every night when i come out here. let's go to bill in massachusetts. >> caller: hey, jimbo, how are you today? >> i'm doing well. how about you, partner? what's going on? >> caller: fantastic. i've been following amat.

and i know before -- this is my fourth call with you and i do love how i'm always able to connect with you, which is incredible. >> i love that, man. i like talking to people. i know the other guys don't. i walked to get a haircut over at eddie's. i stopped with a lost people, they talk and get a picture. why not? i can't believe anyone cares. a picture with me. go ahead. it's fantastic. go ahead. i'm sorry. i lost bill? i talked torch about what bill -- i didn't get to answer his question. justin in west virginia, please. justin. >> caller: hey, cramer, how are you doing? >> i'm doing good. how are you doing? >> caller: i'm doing good. thank you for taking my call. it's an honor to speak to you. i've got an oil and a natural gas pipeline company that i'm just totally confused about, and i see a lot of good things with it and i also see some red flags. the stock ticker is et and i could use your help. >> energy transfer and kelsey warren. i used to be critical of it but he's put together a megacap pipeline business that's doing

quite well. 9% yield. they can pay it. and i've got to tell you in the end. all right, let's go to edward in texas. please, edward. >> caller: hey, it's edward in dallas. 107 degrees. is mcdonald's equally hot or is it a buy, sell or hold? >> man, i'm so stunned because a cowboy's calling me. i'm trying to process it. geez, mike parsons -- mcdonald's is a really good stock and there was i avery good recommendation this morning which tells me that this has done -- it's been in the wilderness for a long time. i am very bullish on it and i think you should buy it. thank you for the call even though you are from dallas. although i am going down there to watch that game because it's sunday on, yes, nbc. the issues facing the megacaps might be troubling right now but anyone who thinks this group's best days are behind them, you're kidding yourselves. on "mad money" tonight lululemon higher after earnings. can the rally keep running? don't sweat it. i could give you my take. then as investors continue to

fret over the higher rates i'm taking the other side of the trade. and is the stock up 20% over the past month. probably never even heard of it. i'll reveal the name and whether it's a good prospect when i sit down 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. #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss somhi?etng head to madmoney.cnbc.com. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady,

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moon? after that terrific quarter they reported just last week. this one's tricky. for years lulu was one of the greatest clothes stories around. then the fed declared war on inflation. two years ago. and this highly priced stock fell out of favor from its peak in 2021 to its lows in may of last year. it lost half of its value. falling from 485 and change to just over 250. since then it's rebounded to the 390s but the recovery's been very choppy and the stock remains well off its highs. some of that's because lulu's brand of informal aechlt thleisure apparel got a big boost during the pandemic when people could work from home and wear whatever felt comfortable. it didn't help that lulu shelled out $500 million for mirror, that's the largely in-home digital fitness play when that was the first thing to go once the world got back to normal, people started going back to clubs again. they spent so much time taking this up. then they talked to everywhere. but late last year they'd already taken a $443 million

impairment charge on mirror. ouch. late last year is also when lululemon started reporting lighter numbers, something the stock price was predicting. this thing got crushed last december after management reported decent results while hitting us with tepid holiday guidance. then in january lulu revised that fourth quarter guidance lower still, warning of worse than expected margins and the stock got hit again. since then, though, the action's been much more encouraging with the stock up nearly 25% for the year and almost 60% from last year's lows. ♪ hallelujah ♪ things started changing in late march when lulu delivered a better than feared set of numbers. even their skyrocketing inventory up 50% wasn't as bad as management's heinous forecast. in june we got confirmation things were going much better when lulu gave us a clear beat and raise quarter. stock then spent the next few months trading sideways. last week lulu proved things are truly better which is why the stock's at its highest level since april 2022. so what did we learn from this

latest terrific quarter and with why did it make such a big difference to the stock? and by the way-i was away when this happened and i said as soon as i get back i've got to talk about this thing. first and foremost lululemon both beat sales and earnings xmgss while management raised their full kraer forecast for the second straight quarter. but that was just the tip of the iceberg. the deeper you dig the better it gets. management raised their forecast because business has gotten stronger in north america. even boughter, it's kept accelerating since the end of the quarter. i always thought when the cadence gets better and better. they're having a great back to school season. asia's a source of growth for these guys, it's great to see the region paying off. yep, these guys are on fire in china possibly because lulu's too small for the communist party to target for retaliation. what else? lulu's accessories business has turned into an impressive growth driver. now, this is a hypercompetitive space where they've been able to build strong brand loyalty unlike any other. the best example, lululemon's belt bag. which is like a more adjustable fanny pack. somehow the belt bag caught fire for lulu last year and its popularity helped bring in new customers. this time even though the

accessories business was up against tough compares the tough was able to grow belt bags double digits with overall accessories up 44%. lots of backpacks and small pouches sold as well in this quarter. i bet the margins are great for that. but if you ask me the most wrim preface aspect of luol lemmon's quarter was the insight into the business from management's commentary about inventory which is remember the most important factor when it comes to retail. remember at the end of last year inventory levels were up more than 50% year over year. that's every retailer's nightmare. nobody wants to be stuck with extra merchandise that needs to be heavily discounted. that's what's been bedevilling with the stock of foot locker for the cnbc investing club. the inventory growth right here at lulu has slowed to 24% by the end of the first quarter. management guided for 20% by the end of the second quarter. this time lulu's inventory was only up 14% year over year. okay, not great but a heck of a lot better than where they were coming from. and even what management said to expect this quarter. there's a lot more demand for

the company's merchandise than there was 12 months ago and they're doing much better than many other apparel companies including the flailing columbia sportswear. best of all, lulu's management expects inventory levels to continue to moderate. inventory growth and low double digits next quarter pz that's very acceptable. the rap udly improving inventory picture means lulu doesn't need to rely on as much discounting. the company said markdowns were flat from the prior year. at the same time management expects their margins will continue to improve. they raised their full-year growth margin both from less discounting also from lower freight costs. we should have figured that. there were other things for lulu bulls to hang their hats on. while many see lulu as a household name the company still believes it has an opportunity to increase its brand awareness going forward. management says their unaided brand awareness is still only 25% in the united states and with the exception of tunited kingtd m and australia only in the single digits internationally. it means they have room to grow. their merchandise sells incredibly well all over the globe.

what do we do with the stock since it's clearly in a comeback mode? it's executing at an extremely high level. while i'm always hesitant to recommend a stock after a post-earnings pop i have to say i've's liked it for a long time and i continue to like it now. i love the way they worked down their inventory which was my one major concern nine months ago. i love their growth accelerated august into back to school season. i don't like the evaluation. 32 times this year's earnings estimates. but sometimes you have to pay out for best in breed plus they're looking to generate 20% earnings growth this year. so it's not totally crazy to pay 32 times earnings from a growth manager's perspective. i find it reasonable. bottom line i think it's not too late to get back into lululemon if you bailed on it at some point in the last few years the brand seems just as strong as ever and the last couple quarters holy cow, they've gone from -- they're really about as good in the whole business. the new quarter's off to a good start too and i bet lulu has a terrific homd season especially now their inventories are back at reasonable levels. again while the stock isn't cheap you can justify the price

tag. >> buy buy buy! >> in an environment where so many retailers are struggling it's worth paying for an yuft like lululemon which is doing much much better year over year with management at the top of its game. "mad money's" back after the break. . >> announcer: coming up, what to buy when rates are high. cramer tours the real estate segment for hot properties. next.

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over the past couple months all sorts of groups have been crushed by this rapid rise in long-term interest rates. the home builders, regional banks, some of the more obvious ones. but you know what else has been put through the meat grinder? the high-yielding dividend stocks. because the bond market competition suddenly got a lot tougher. that goes double for the high-yielding real estate investment trust. we put a lot of these on. two areas this market wants no

part of. but you know what? it sure feels like a long way to getting close to -- which would make these beaten down dividend stocks more enticing. after fed chair jay powell said he'd proceed carefully with any remaining rate hikes i'm starting to think we might get only one or two more rate hikes before the fed calls it a day. especially since we're already seeing a lot of signs of a cooling economy. i think the fed will soon finish its tightening cycle. and if you believe we're headed for a slowdown coupled way peak nirnt rates this would be the ideal time to buy some heavily discounted bond market alternative stocks. that's a fancy name but we're going to focus on real estate investment trusts. this is a very battered group. this is a group that investors were already wary of earlier this year. amorphous concerns about the commercial real estate market, especially for the office category. for understandable reasons. and now with this big run in long rates there's been a new wave of selling in the reits to the point where i think it's frankly, come on, compelling entry points. you know there are bargains here

when a little hotel reit like an outfit called hersha hospitality which i thought i was the only person who ever heard of it, can get taken private by a private equity firm at an astonishing 60% premium to where the stock was trading. when you see that you know valuations have gotten too low in the industry. so low other businesses are eager to do some buying. let me talk about three names. boston properties. it's an office reit with a portfolio of buildings in a half dozen cities across the neet and west coast. why even bother with a company that belongs to the most hated reit cohort, the office reits? first i think the time may have finally turned to a return to work. the unemployment rate ticked higher last month. that gives employers more leverage and leverage is what they need to get workers back from the office. and that's what's happening. at the same time boston properties has top-tier buildings and those are in short supply. so either if office real estate continues to struggle they're

relatively insulated from the pain. i say relatively. i'm clearly not the only one with the idea given that boston properties has rallied more than 40% from its lows this past march. however, even after its big bounce the stock remains down roughly 25% from its 52-week high. that certainly intrigued me. that was almost a year ago. and still sports a robust 5.9% yield thanks to the recent pullback. i love that last quarter. it was terrific. and the conviction of a really revered management team on the conference call i thought was winning. maybe buy some here and then hope it falls to a lower level where you can buy even more at an entirely higher yield. better than you can get from part of the treasury curve. yeah. this one is fun. it's called vici properties. like latin. which mostly owns casino properties but recently has been diversifying into experiential real estate. like golf courses and canyon ranch. long-time cramer fave thanks to its record of outperformance. the only reit in the s&p 500 that finished in positive

territory last year up 10% good sign. this year the stock gave up a bit of those gains especially last month because of its casino tenants. i'd recommend vici as a safe way to play travel. i will note the las vegas strip just had its best month ever in july. i like this one because even with the travel slowdown vici won't necessarily be hurt. they don't run casinos. they're the landlord to the casinos and it doesn't hurt that the stock now sells for just 14 times next year's estimated funds from operations. with a competitive 5% yield. definitely worth considering on weakness. especially because its foray into wellness is not ib nate hedge to its core gambling business. finally, long-term viewers will know this one. the retail reits have also been hit very hard. i'm not going to stick my neck out and recommend the riskiest names in the space and think something like simon property group enticing 6.6% yield. that said i am willing to stick my neck out for federal realty which specializes in mixed use

properties in high-end suburbs across the wealthy metropolitan areas on the east and west coast. mixed use properties. but most of the portfolio is retail the shopping center kind which is why federal realty stock gets slammed whenever people are worried about the retail raets reits. i always liked federal realty. the suburban focus makes this stock a good option for anyone who's not as optimistic about an urban recovery as i am. i still believe in cities but maybe not as much as i believe in federal realty. i love the specific tenant list. federal realty's top ten is cramer fave tjx. that is a charitable trust name. an off-price chain that thrives when regular stores are suffering. plus this company is a mofld consistency. federal realty has raised its dividend for 56 consecutive years. that makes it much easier to stay constructive on the stock even when its subsector goes out of style at the wall street fashion show. at this point federal realty now

sells for less than 15 times this year's expected funds from operations. remember that is the real metric to gauge the health of a reit. 4.5% dividend yield. allowing money to flow back into these bond market equivalent stocks as long as the bankable don woods stays at the helm. there you go, three contrarian ideas for investors who think we might be approaching a peak in interest rates. again, i'm not calling for that immediately. i just think it will happen sooner rather than later. and that's what matters. bottom line, whenever the high for rates is but the in i believe the beaten down real estate investment trust will rebound because that's what usually happens when you're coming out of a tightening psychiatry'll. it's just history, people. consider some out of favor stocks that can potentially come back in vogue in a heartbeat the moment the fed realizes they're winning the war against inflation. i want to take calls. i want to go to bob in texas. bob. >> caller: hello, jim. >> hey, bob, how are you? >> caller: mcw the medical property rate at $16 per share.

since then it's been hammered down, and i'm at about 3% on my cost basis. at present it's paying around 8%. should i buy more or avoid it altogether? >> no, we're not going to buy -- i mean, we have been struggling with this mightily, especially with the charitable trust. you know, i had a call on this the other day and i didn't realize they had just cut the dividend. what happened to the stock? yeah, they cut the dividend. you don't want to buy more. that would be throwing good money after bad, sir. and i just can't. i'm sorry. let's go to levon in kentucky, please. levon. >> caller: cramer, i'd like to ask you about the stock rsc. >> rsc. i do know that -- >> no, sir. rc. >> oh, rc. i'm sorry. okay. just a second. yeah. okay. so this is a company where i couldn't figure out what they actually own, which is the problem. when i see real estate financing, this is a very important term, people.

it means we don't really know what they own. when i see residential mortgage and small business enterprise, loans, we don't know what those loans are like. i cannot take that responsibility. i can't say the loans are good. that's a sucker's game. i don't want you to own it. i'm going to arnold right now in new york. arnold. >> caller: hey, jim. thanks for taking my call. long time, first time. >> oh, thank you. >> caller: castle. >> you know, this is incredible. we got out of the stock for the trust in the 170s, 18 0z. then the stock dropped like a sfoen. a lot of it is because of interest rates going higher but a lot of it is because they're worried at&t have such bad balance sheets that they can't be depended on to put up more towers. so i think you have to stay away even down here with a 6% yield. reits of all shapes and sizes might be out of favor right now but if you think interest rates are going to peak sometime soon now is the time to start buying the beaten down group.

there's much more "mad money" ahead. after the ipo boom of 2021 i'm eyeing one higher quality story that's separating itself from the pack. then apple shares are lower today after several reports indicated beijing will expand its band-aid ban to state-owned corporations. i will break down the implications. and of course all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer.

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okay. let's talk about a relatively unknown stock that caught fire of late rallying 49% in roughly the last four months. it's called clearwater analytics. this is a company that makes software that helps with

accounting, reporting and analytics for professional investors. something that would be a lot more complicated than it sounds like because there are all sorts of securities that don't have a normal market price. steady growth healthy margins i like that. one of the rare ipos from the class of 2021 that's withstood the test of time. earlier today clearwater held their first ever investor day right here at the new york stock exchange. very exciting for a company that does that. so let's go straight to the source with sandeep sahai. he is the ceo of clearwater analytics. to learn more. welcome to "mad money." >> thank you, jim. >> a lot of people have not heard of your company. so if you can, explain where you stand in the food chain and why you are so important to your customers. >> absolutely. >> insurers, corporate clients and asset managers. and obviously as you know they have large pools of money. what do you think they do? they go out and try to generate a return from that. the way they dothat is they

invest in stocks, bonds, mortgages, real estate, derivatives and they also invest around the world. >> hard to value. >> yes. and so what happens is every morning you are the chief investment officer and you have to make a call about what do i invest, what do i not invest. let me personalize it a little. let's talk about you. you have an asset base of let's say 10 or 100 billion, some number. what's your position snad i guess you don't know. you have to call up five of your money managers, look into your checking account and your savings account -- >> absolutely. that's what you have to do. >> and the reason you don't do it is you don't make day-to-day decisions about your portfolio. but that doesn't work for a chief investment officer of an insurance company. every day they have to decide what to sell, what to buy. we provide a single pane of glass across the world, across all asset classes, hard to value, easy to value, doesn't matter, and we give them a view every morning. 9:00. >> okay. but isn't that something that

larry fink, who works at blackrock, he offers a product called aladdin thati think is a very good product. are you similar in competitors? that's a very big question. >> aladdin is firstly a good product. i think pretty highly of them. they have been mostly focused on the asset management industry. our business is a lot more firstly on the asset owner community. so insurance companies and corporates and also reits, sovereign funds and -- >> i saw your urban outfitters. spotify is there. these are -- garmin. real companies. >> when a company goes public, jim, most of them come onto our platform. so uber, lyft, zillow, robin hood, apple. cisco. you name them. when they go public they suddenly have cash which they give to many managers to manage. someone's got to give them a clear pane of glass. that's us. blackrock is actually a client of ours. they perform more of the front

office functionality, the trading part. we do things which are accounting, compliance, risk and regulatory reporting -- >> when i was a ledge fund manager i was always worried about whether my clients thought i was giving them honest valuations. i also have to believe that the s.e.c. wants to see honest valuations, that maybe it would be a good housekeeping seal of approval to say listen, we got these from clearwater, we didn't make these up. >> absolutely. and we can give them a comprehensive global view. so what matters for us, jim, is you could have some asset in europe which blows up. and if you don't aggregate that every day and bring it together you're not going to get the right picture. you have covered companies here which have just blown up in one part of the world. people didn't even know they had exposure. our clients see their exposure every day. and that's what we give them. >> now, you have talked about artificial intelligence. everyone kind of does. what i've been telling people is please tell me how it helps the client and please tell me how it helps your bottom line because

an amorphous artificial intelligence, i can't have that anymore. people say jim, tell us how it helps the client. >> okay. and that is a lot of our investor data was because of that for that. so look, is it a totally deceptive technology? yes. but everybody's saying that. where's the proof? show me what it can do. so if you think about us, we get data from 2800 sources a day. and a lot of them don't add up. so we have 200 people who reconcile this on a daily basis. and they use their knowledge. you point them to the 10 million reconciliations you've done over the last ten years. this is the potential right answer. i think the danger is people trying to say ai will replace humans. not the right answer. think about them as being human in the loop, producing and enhancing the efficiency of the

reconciler. let's say the client -- just one more and i'll get off this artificial intelligence -- >> no, no. >> you're a client, you want to understand the book yield of an asset hard to value security. >> right. >> and you're trying to find out how that happened. guess what, ai could do that in minutes compared to taking hours of research and coming up with it. >> we talk about this large language issue. is it possible that a manager can just speak to a machine basically, not have to have a code person come in and have lots of different expenses, people who don't generate revenue? >> yeah. so i would just watch for one thing. i think it does have some problems. and therefore, the moment you say the machine should replace humans it's a little bit trickier. but if you say it can make humans 70%, 80% more efficient, that is easy. and from your vantage point what does that do to a cost structure? if i can improve my cost structure such a meaningfulment, why do you care? why do you want humans to be out

of the loop and put all the risk in the system? don't forget, jim, we do investment accounting. so we can't take this lightly that the machine is mostly right. no, no, we need the human in the loop to be right every time. >> i'm glad you said that. a lot of people say it's just run by the machines. we can't have that. humans are what we need and you're doing your job. and i'm grateful you have analyst day and you got to spread the story. it's enas difficult once people understand these are multibillion-dollar inside stoougss they've got to have their numbers right. that's sandeep sahai, ceo of clearwater analytics. they are very comprehensive and open about what they do. and it's all available in what we call the deck. stay with cramer. >> announcer: coming up, cramer takes your calls and the sky is the limit. it's a fast-fire "lightning round," next.

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♪ that's nice ♪ it is time! ts it's time for the "lightning round" on cramer's "mad money." say the name of the -- 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 brian in new jersey. brian! >> caller: jim, boo-yah from the garden state, your home state. >> you bet it is. >> caller: i have a question about a particular stock. trading lower, gotten some bad press latly f lyately for the p weeks. actually close to a three-year low if it's not there now. but there is a small short interest ratio. only a little bit more than 2%. i want to know if it's a good buying opportunity. my stock is norfolk southern.

>> norfolk southern the cheapest i've seen in a long time. let's say i want to buy 200 shares. i'd buy 50 here and then i'd say a quarter percent down buy 50 again. i don't think it's going to go all that way. that's how you have to buy it, though, in stages. joe in pennsylvania. >> caller: hey, jimmy, this is joe from pennsylvania. my son and i both own shares of sofi technologies and i want to get your thoughts on -- >> it was at $4 when we met at the cnbc terrific ceo conference. $4. he looked me in the eye. i said what do you think? he said we're going higher. stock has doubled. i think it has more further to go. i like the deal that's coming monday. could be a good deal. let's go to rich in california. rich. >> caller: hey, what's up, jim? >> what's going on, rich? >> caller: had a question of a vietnamese ev company -- >> this is not a company you want to be involved with. i don't like anything about it. not a lot of cars sold. please stay away from this.

it's the kind of thing that should not be public. i'm a huge fan of the country that it's from but not that deal. let's go to alex in massachusetts. alex. >> caller: jimbo, first-time caller. love your show. question. what are your thoughts on live nation entertainment? >> the stock's come down nicely. i'm a big fan of mike rapinoe. if he comes on the show and talks about how he's doing i'd feel a lot better than saying it's fine. we want him back on. maybe we even see him next week. that would be great. jason in wisconsin. jason. >> caller: hello, jim. thank you so much for having me on. big boo-yah from the great state of wisconsin. >> oh, i love wisconsin. >> caller: thank you so much, jim. my son kipton wanted me to give you a call back. he wants to know, back in february of 2023 you spoke with patty poppy about an awesome

company pg & e. he wants to know if he has some horse sense. what your thoughts on -- >> that kid's got horse sense. absolutely. and i want him in the stock right here right now. patty poppy's got what i call game. let's go to monty in california. monty. >> caller: hey, jim. boo-yah to you. got a question for you about arrowhead pharmaceuticals. i know you've had the president and ceo chris angelomt ni on about three years ago. since then the company's really advanced the pipeline into a double-digit state, about 12 indications -- >> we've got to get him back on. i'm not recommending any stocks that are losing money. that's my problem, is i've got to find out more. because i've had a ban on stocks that are losing money. it's too hard out here. i want to go to chris in illinois now. chris. >> caller: hey, jim. let's go eagles and how about electric power? >> 4 1/4's where we want to buy it. but i want julie slow back on. nick used to come on every

quarter. he with want julie back on. we're big supporters of aep. down to 77. that's because of rates, not because of a.p. how about we go to riley in texas? >> caller: boo-yah, skee-daddy. >> what's happening, man? >> caller: mr. mad money, jimmy chill, reverend jim bob, can i get your expert opinion on aehr? >> oh, man. this is a testing measurement. for test and measurement i go for adulant. i'm hidebound. let's go to mike in illinois. >> caller: how are you doing, jimmy chill? >> not bad. the chill man's fine. what are you doing, mike? what you got for me? >> caller: i'm in chicago to go see the cubs. >> i wish you good luck. i like the bears franchise. i draft aid bear last night. i haven't done that in a long time. what's happening? >> caller: what's happening is one of the world's largest i.t. consulting companies, accenture. buy, sell or hold.

>> julie sweet is so good. she's the ceo. and it is such a good company. and people don't even know what they do. they help you figure out how to deal with technology. they're digitizers. i need to go to haraj in california. haraj. >> caller: boo-yah, professor cramer. first-time caller, long-time listener. >> all righty. >> caller: thank you for everything for us home gamers. >> oh, excellent. >> caller: i want to ask you about -- >> they are losing money so much. i can't go for it. losing too much money. we're going to have to stay away. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: coming up, did china miss a trade opportunity? or are they happily headed toward isolation? cramer digs deep, next.

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

eight years ago chinese president xi came to the obama white house and according to economists lied through his teeth when he said that he didn't intend to pursue militarization in the south china sea. he told us there would be no target or impact. of course shortly thereafter xi pursued militarization in the south china sea with target and impact. it was a severe blow and a terrible sign of disrespect to president obama, who was doing the right thing, trying to get the chinese to fly right, straighten up and avoid a catastrophic confrontation. unfortunately he failed in that goal. china's going from a rival to an adversary. it almost feels like we have a new cold war against them.

at least that's how i feel after seeing the chinese government reportedly go after one of our greatest signs of a good partnership, the relationship between their government and apple. and it comes right on the heels of commerce secretary gina raimondo's measured visit to the dictatorship. just a normal dictatorship, not a dictatorship of the proletariat. or china's base of manufacturing. the people's liberation army, it's steamed they can't get the advanced chips from nvidia, chips that are a necessity if you want artificial intelligence. china took the first step immediately after raimondo came back. such bad form. just as they did after xi's visit to obama eight years ago. the message, they're happy to go further toward cold war and further away from a healthy competitive trade partnership. it's not as bad as the original cold war but it seems to be getting worse. and at least the chinese government let secretary raimondo visit shanghai disney, something we didn't let soviet leader nikita khrushchev do in 1959 when we canceled his trip to disneyland for security reasons. but it started going in the

wrong direction. will china soon ban the wearing of nike -- antos instead of jordans? even if the nikes are made in china. you can't show up at the office with a triple venti -- the news about china banning the iphone in government sponsored offices was a big deal at least because so many businesses there are partially state owned. it sends a chilling signal to apple customers. and i think it's because of artificial intelligence. the u.s. now leads the world in the most important kind of tech there is and china's not going to relent until it gets the right to buy these chips along with all the equipment that makes them. madam secretary said the chinese were trying her patience before the chip. at this point i don't imagine she has a lot of patience left. remember it's not really a hard-liner, she's a realist. but she is the commerce secretary dedicated to making american injured might stronger through investment. notice i didn't say military might. i said industrial might.

do the chinese want to switch negotiations to the secretary of defense not the secretary of commerce? will the next talk be about a blockade of taiwan something the legendary morris chang the godfather of tie ann semiconductor has openly warned about? sounds like when we blockaded cuba during the cuban missile crisis although we had a better excuse because the russians wanted to install nuclear weapons 90 miles off the coast of florida. of course this can be reversed by the chinese government saying there's no ban on the iphone. i don't think, though, that this regime understands how ill-advised it is to take the much talked about position. apple's doing exactly what the chinese want. buy china for china. what statement does this new policy make? it would be one thing if the phones were made here but they're made there. do they really want to cut off their nose to spite their face? do they want apple to stop making long-range commitments to manufacturing phones in china? they should want the opposite. had this not occurred right after our most heavyweight cabinet official going to china on what had to be regarded as a

serious attempt get things on track i'd just treat it as tit for tat. but the commerce department is going to have to respond and do so in a hard-line way. what a botched opportunity to move things in a more diplomatic direction. what a crying same. i like to say there's always a bull market somewhere and i promise to try to find it for you right here on "mad money." i'm jim cramer. see you tomorrow. "last call" starts now. i'm brian sullivan, and tonight an explosive short report legend that tee mu, the most downloaded free app in america is spying on you and selling your data. with markets off to a shaky september, a top wealthadviser is begging you to not do one thing. more money but fewer miles. why the wealthy are skipping right past gas stations a lot more than anybody else. a massive lithium land grab out west, as some bet it will be the new oil. nasa says, not to fast. plus,