>> palo alto, i would wait to 220. >> guy >> let's just listen to the marching band real quick just a moment. >> appreciate the music. okay, final trade. >> gdx, them back to you. >> thank you for watching "fast money. see you back here tomorrow at 5:00 for more "fast. do not go anywhere "mad money" with jim cramer starts right now. go anywhere. mmd mmd with jim krrm starts right now. play us out. >> my mission is simple. to make you money. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now welcome to "mad money. other people want to make friends. call me at 1-800-743-cnbc or tweet me @jimkrrm.

so easily willing to move on as circumstances and valuations change that was the story of today as the dow, s&p advanced and nasdaq edged up 0.7%. they show you the darker side of the deflation the are federal reserve's trying to engineer you better get used to these days there will be many more. now, look, as investors we're all cheering for jay powell to tame the scourge of inflation and tamp down. you know he's succeeding, maybe sometimes too well but in order to ensure succession the fed had to raise interest rates which makes it more expensive to borrow money that's the dark side i'm talking about. jay powell did what every other successful fed chief has had to do to break the psychology of a inflationary spiral. unfortunately we also know that this fight against inflation tends to produce a the lo of collateral damage and that's what i want to talk about tonight. see, it doesn't work out for, say, walmart that's america's largest brick and mortar retailer which reported its morning it saw its

stock taken to the woodshed, plummeting 8%. >> the house of pain >> did walmart deliver a bad quarter? hardly i thought the quarter was excellent. but it did have flaws, namely an inflated stock price it was priced for perfection coming into the quarter. and lots of merchandise impacted by newfound deflation. that's a toxic brew. walmart, also costco have been the two best performers in the large-scale retail because they consistently offer the best prices during inflationary environment. but that also means they're the first to feel the pain of deflation once prices start going down and that's how you get this tepid same-store sales number from walmart as long as prices were going higher there was a built-in bias toward stronger same-store sales because the price increases literally inflated that number if walmart had to pay a little more for goods, they did but we're now on the other side where walmart's selling goods that it bought higher and now it needs to cut prices. that makes the same-store sales look worse by comparison it's just a fact of life

it's arithmetic. deflation does that to you so what happens? okay investors who like walmart for its ever-improving same-store sales that benefited from inflation now took a look at the new same-store sales and what they saw, they saw deceleration. it's almost inconceivable to me that one bad line item out of a whole host of good ones could bring this colossus down but the shorthand takeaway from this quarter and you heard it over and over again today, decelerating same-store sales, and it couldn't be defeated so the sellers streamed in and beat the stock to a bloody pulp you might wonder target reported weaker same-store sales too yet ilths stock shot up nearly 20 bucks. isn't that a double standard the be answer is yes of course it's a double standard and there's a good reason for it people expecting weaker numbers across the board from target including earnings but unlike walmart target post aid gigantic earnings beat nobody saw that one coming the difference between these two stocks is all about the proverbial bar walmart's previous performance had been stellar, so the bar for them was set too high.

on the other hand the bar for target was set down on the floor and they could easily clear it both companies comment bd a cash-strapped consumer caught in the crossfire of higher interest charges and food costs we assumed going into the quarter target couldn't hamid it and walmart could. turns out target's handling the stress with new and exciting merchandise. thank you, brian cornell, ceo, telling us about it. it's working great who else is hurting from higher rates and the changes they create with customers? a company we had on, palo alto networks they got trapped by the fed's relentless rate hikes. last night the ceo told us the cost of borrowing money is causing his customers to keep their contract short shorter contracts means lower billing. like decelerating sales for walmart billings are supposed to be the key metrics that gauge the prormt of a company like palo alto. but this time the billings didn't give you an accurate read of the company's sale or profits. that's what he was telling us on the show last night. it was alas confusing. and when your stock is the sixth best performer in the s&p 500 as palo alto was as of last night's close confusion doesn't cut it

you can't convince wall street to switch the key metric even if it makes sense people just assume you're making excuses. then there's the obvious impact the fed mandated slowdown, have you seen the price of oil? it plummeted nearly 5% to less than $72 a barrel. the sawed will make it so it stops but not right now. oil ran up o'not a belief that the war in gaza would spiral out of control, turn into a regional conflict across the middle east. something like that happened in the yom kippur war in 1973 when oil soared and soared again. speculators looking for a repeat of the 1973 war went huge into oil and now they're trying to extract themselves as world events just didn't play out their way. it's not geopolitics you're seeing oil prices fall from lower use of a cessation of panic. obviously this is good news for the consumer but the oil stocks are cratering. chevron, conoco, ox dental all clobbered. i think occidental has been

bought up too high by warren buffett. if the company doesn't get a takeover bid the stock goes the lowest of all these. not everyone benefits from deflation. how do you handle this moment? how do you build a portfolio around it in i think you look for companies that are ready for deflation. costco, for example, has monitored pricing levels and it's amazing ceo richard galanti not only told you to expect deflation, the company's even pushing deflation along by demanding lower prices from its suppliers or making its own branded stuff and selling it through the suppliers. or you look for companies with such incredible pricing power that the fed's fight against inflation can't really impact the bottom line. hey, that's what's going on with the stock of microsoft they just held a conference where they talked about products where it seems like the sky's the limit on pricing microsoft's co-pilot artificial intelligence helper is getting rave reviews a terrific piper sandler survey this morning showed that 64% of its respondents spent less time processing e-mail, 7 o'% were more productive and 77% would order co-pilot over a free weekly lunch [ applause ] that's pricing power

i believe ai enablers like adobe and service are price makers and that's why their stocks seem to live on the new high list. it's hard to fathom a walmart can plummet while target roars higher or commodity deflation can happen so swiftly as we're seeing in oil. but that's what happens when the fed begins to win the fight against indplags and it is doing that the good news is lower prices finally breaking this inflationary spiral, it's also bad news for the profits of many companies. it will take some sorting out. but never believe that lower consumer prices are a magical elixir for stock market gains. bottom line saying good-bye to inflation is sweet but there's a little momentary sorrow too. that's the sorrow of a walmart or chevron or palo alto networks and so many other companies that are victims of their own success. david in virginia. david! >> caller: boo-yah united states navy boo-yah to you, jimbo >> what's happening? thank you. >> caller: graduation at gw university tell me about that innovative

technology company ftx >> i'm glad you called it an innovative technology company because that is exactly what raj subra mainian is doing to it 254 is a nice price. i would be a buyer of fedex right here right now how about karen in new jersey? karen. >> caller: hi, jim cramer? >> yeah. you betcha >> caller: i looichbt purchased shares in booking holding. i see the company as the nvidia of the travel industry >> whoa. >> caller: at 3100 a share where do you see the stock going from here and do you think a stock split is a strong possibility? >> i wish gloenn fogle would split. nvidia's high praise they probably had one of the four or five best quarters of this reporting season. and i think you're absolutely right to go for it if they split that stock ten for one you'd have a lot more buyers but they seem to want to keep it at a $3,000 price. i think it's silly

let's go toongt in florida >> caller: boo-yah boo-yah boo-yah jim. how's it going >> triple boo-yah. how about you? >> caller: frontier airlines i'm hearing domestic travel is coming down and i know a lot of the business travel is coming down as well but -- >> $4 spec you put $5 in dfs, daily fantasy on sunday, you put $3 in this. i think pretty much the same thing. actually, i'm pretty good at daily fantasy. breaking the inflationary spiral is welcome news for most but never believe that lower prices are going to lift the entire market "mad money" tonight should you hitch a ride on the rails with csx? all aboard >> or could inflationary pressures on the brakes? don't miss my exclusive with the ceo. talk about everything from autos to energy. then interested in buying on holding on its post-earnings decline? i'm going to give you the real story on this one. plus is it high time for -- i'm sitting down with this under the

radar apple supplier stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on x have a question? tweet cramer hashtag madmentions. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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comcast business. powering possibilities. after cooler than expected inflation this week there is this newfound sense of optimism the federal reserve might be done raising interest rates. no recession needed just the softness of landings i've been through many cycles. it's time to circle back to the

cyclicals. the companies that need a strong economy to really thrive and that includes transports and transports like csx. that's a gigantic east coast railroad where the stock has barely moved today but why should it yet because the fed was still tightening csx reported a mostly in line quarter last month but if you're feeling more sanguine about the economy this is the one. a lot of up side don't take it from me. let's check in with joe hendricks, president and ceo of csx. welcome to "mad money. >> good to be here with you. >> i know you can't look at your book and say this could happen but if we are indeed done the textbooks do say that your order books are going to start filling up. >> we mentioned it on the third quarter earnings call in october that we were seeing some progress in the fourth quarter we've had good momentum in the fourth quarter chemicals are coming back a little bit, autos post-strike are coming back, grain harvest has been good. we're seeing some of that. >> i also think that you are -- i was speaking to rivian today and i was thinking people talk about where the cars are going

to be made they're in your area >> i used to be on the board of rivian, actually good friend of mine. great guy. and rivian stands for indian river in florida, which is where i grew up. it's backwards -- anyway, a little information for you >> get a bag of grapefruits and -- >> sunshine state. fast plant in north carolina being built in our network a lot of industrial development in the southeast and we're fortunate to have a lot on our network. >> i know there are some things -- i want it to be better i always like when intermodal's good but it's not yet right? >> domestic intermodal since around jurngs july's been picking up in intermodal, again, consumers purchasing goods, when that picks up and maybe it will, if the fed's done we could see more imports coming in and then we could see some growth there. but domestic intermodal's been growing. >> the thing you're already known for is you were a customer >> that's right. >> you were a customer, auto

customer so you know -- you point blank said it. it's been frustrating to deal with railroads, even though you're a big dog you're changing it now for the people on the other side of the equation >> 30 years in the auto industry and i had a lot of time dealing with railroads i retired as president of ford as you know 3 1/2 years ago. i came into csx and said listen a lot of people do business with the railroads because they have to not because they want to. but we're going to change that for the last year we've been delivering industry leading service levels which is leading to growth in market share and growth opportunities for us with customers. >> now, there are people out there listening right now and they're saying what does he mean doesn't everybody provide good service? but in reality the rails are not necessarily known for good service. >> they haven't been coming out of covid there was a manpower shortage and we had really big challenges. but you know, there's a notion that the railroads haven't been as focused on the customers as we'd like them to be we're trying to change that. we actually challenged our employees through one csx initiative to be engaged, make that happen. all our employees, especially our union employees and we're

encouraged by what we're seeing. >> i reed one of your statements that not everybody wants to be a railroad person. and yet i think there would always be a place where people really want that job >> it used to be we had a thousand people standing in line for one job. now we have recruiters out trying to find people. >> what happened, joe? >> it's an outdoor sport you're outside we're seven days, every day of the year, holidays, 24 hours a day. it's a lifestyle you're away from home. if you're on the conductor's and engineer's side. we had to make it better, more work-life balance. but it's a well-paying job and railroaders are very proud people >> when will you be able to go to customers and say you know what, i'm looking at your trying to be carbon-free, neutral by 50, by 30 and you can't do it without our help because if you just do straight up trucks you're going to violate your own strictures when does that happen? >> it's happening now, actually. >> tell me >> our software you can put in and say i use truck or i use

rail, what are my emissions. it's real. you can calculate it and you can take credit for it if you're a customer we're four o'five times better for the environment than truck and we're cheaper. so where do you find something where we actually can be better for the environment and lower cost for our customers it's unheard of and wovee've got take advantage of that >> at the same time i felt our roads can't handle all the trucks, that there's another incentive. i keep thinking there's got to be this environmental breakout one day where the trucks are just going to say we can't compete with the rails >> you know what else? taxpayers pay for the roads. we pay for our own infrastructure and for our capital. so actually it's better for taxpayers to be on the rails too. but we've got to deliver the service. we have to deliver the service and have the capacity to make that happen and we're committed to that at csx >> i've got to talk coal maybe one day we don't have to talk coal but in the meantime make a lot of money on coal. export coal, natural gas went from 2 to 3.50 maybe a little less competitive? >> but the export coal the growth's been strong

what's happening, jim to your viewers is metallurgical coal which is used in the production of steel has been booming in export prices are up. and they've been exporting to eastern europe, to india with all that growth. even thermal coal's been growing in export. we have the largest -- we have the second largest coal export port in the east coast in baltimore. so we export it ourselves and we're very proud of that thermal coal domestically, we expect to be down a little bit because natural gas as you said has been lower also the utilities were behind now the inventories are back up and replenished. but we'll watch that very carefully. >> do you think there's ever -- can housing -- it's so hard to build homes now. that's one of the things we saw from the home builders like a lennar it is bad that forest products -- >> freorest products have been down all year. mostly tied to housing we'll see when housing comes back up. of course we want to move all that lumber and all those goods. but that's one that's been soft all year along with international intermodal >> the one i'm thinking should be great is somehow you do the

natural gas, liquids, chemicals to the gulf. could we ever see double-digit there? because we have now become the most powerful force in the world for ngl. >> i think we could. i think it's all about getting the infrastructure and -- >> but we're doing that, right >> we are. the gulf is tied to western railroads. we take it to the east, which we're proud and happy to do. but a big opportunity for us we already move things, hazardous chemicals and materials today and we're ready to move more when we can >> we should be booming in ag and food products. what happened there? >> the grain harvest in the midwest, which is where we start to see it, is delayed a little bit this year but still very strong we're seeing it start to peak right now and we're expecting a pretty strong harvest in the midwest. the southern part hasn't seen as much there's a lot of imports from brazil and whatnot but definitely the midwest grain harvest looks strong >> i think you're the man for csx. i thought you were the man at ford good run there you know farley's still doing a good job it's been tough of late. >> it's been tough the uaw contract was tough

i led four of those national negotiations i'm glad they're over. but i'm proud to be at csx >> joe hinrichs, ceo of csx. this one once it gets rolling i've got to tell you it doesn't stop "mad money's" back after the break. >> announcer: after the break, what's tying this stock up in knots? cramer gets to the sole of the matter see if the shoe fits next

♪ (upbeat music) ♪ ( ♪♪ ) with the push of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall. tuesday morning we got some results from one of my favorite growth companies it's a swiss sneaker maker called on holding. i've got to tell you it was downright confusing. first the stock tumbled 3.4% despite tuesday being a terrific day for the market

then upon further review wall street changed its mind. so the stock shot up 8% yesterday before giving back some of those gains today. it has truly been a complete wild ride for this one, especially when you remember that on holding had already pulled back pretty substantially from its highs in august from $37 down to $26 and change when the company reported what made the quarter so perplexing, even to pros who follow shoes really closely? it certainly wasn't the numbers. on holding delivered yet another stellar quarter with 46.5% revenue growth, much better than expected along with the best gross margins since the stock came public two years ago those usually should be all you need to get a stock going higher when you dig deeper, gtc up 56% year over year they like cutting out that middle man it's better than company owned stores or the website. i've got to till i thought it was spectacular. they didn't have to discount much merchandise and they saved a great deal from falling

freight costs too which have been a real problem for them hence the magnificent margins. on's inventory fell for the second straight quarter putting the company in a great position going into the holidays. they have enough product to meet higher levels of demand but not so much that they'll have to cut pricing if the extra demand doesn't materialize. now, this is a global operation, but on's strength came largely from the americas where sales were up 60.5% and from asia pacific up 71.5% the european business was softer than expected but that was more than offset by the rest of the world. how about the guidance managers said they're, quote, heading into the holiday season with confidence in the strength of the on brand and in the strength of our products, end quote. they raised their full-year sales and gross margin forecast. but not the earnings forecast. because they're investing more money in growing the business. these numbers were higher than expected but i think the guidance, it was the guidance as i always tell you the most important thing, thinking forward, that created an element of confusion here that contributes to wall street's initially negative reaction to the quarter. >> sell sell sell! >> why

first, the company raised full-year sales outlook. it was typically above wall street's consensus estimate. on holding more or less only raised its full-year forecast by the amount that it beat expectations by in the quarter they just reported in other words, they weren't giving a more optimistic outlook for the fourth quarter or they would have raised their numbers more they would have made a higher forecast in fact, their full-year sales guidance only implies 21% growth in the fourth quarter. that is a major deceleration while on holding noted expects 30% growth on a constant currency basis there's no getting around the fact their sales growth is slowing. they just gave us 47% growth in the third quarter, so the deceleration, that would be pretty meaningful and that's traeking people out. of course on's growth should naturally come down over time thanks to the law of large numbers and the 21% growth rate is something many mature companies would die for. but that's still not what you want to see even if they're up against tougher comps in the fourth quarter making the situation even more uz pling on holding had more

specific commentary about the wholesale channel that raised some eyebrows. listen to this quote, due to a number of transitory impacts on anticipates a wholesale growth rate of high single digits ouch high single digits what's to blame? they say, quote, these transitory impacts include the early holiday shipment of some wholesale orders recorded in the third quarter of 2023 resulting in an element of pull fuorward o q4 volumes basically on holdings said some of its sales in the wholesale channels were pulled forward in the third quarter and because the opposite thing happened last year wholesale orders that should have shipped in the third quarter were delayed to the fourth quarter, they're now up against much more difficult comparisons. not apples to apples and that's why the wholesale side of the business should only have high single digit growth in the fourth quarter down from the low 40s in the quarter they just reported and that spooked people real bad. these comments also made investors wonder whether the strong third quarter results on

holding just reported might have been illusory. maybe it wasn't that big a beat after all maybe it wasn't that impressive if they were simply pulling forward business from the fourth quarter on top of that management talked about quote wholesale doors closure end quote and the lower number of wholesale door additions which might have confused people. don't let the industry lingo continue wholesale door just means third party reefrlts that sell on products the company's basically saying it's going to be less aggressive about getting its shoes into new third-party stores maybe some investors figured that that could cause their overall sales growth to take a hit. but i think that's the wrong way to look at this issue. and i'm generally more swang w sanguine on the entire situation and all the verb ng i just gave you. first of all, the timing stuff between the third and fourth quarter it's meaningless who cares? what's important is at the beginning of the year on holding guided for 39% sales growth in 23 and now it's going to be 46 no need to sweat the small stuff when the underlying story's this good on holding has made it crystal clear they want to prioritize

their direct to consumer business meaning sales through their own stores or their website. i see that as the best strategy because it carries much higher margins and it makes the company less reliant on the success of other retailers. you don't want to be hostage to foot locker if you can avoid it. charitable trust owns foot locker, so i have to -- it's tough. so if on holding wants to boost their direct to consumer business, of course they're going to expand less aggressively on the wholesale side what else do you expect? finally, i'm not worried about the seemingly cautious elements of on's guidance because i expect them to blow away their own forecast once again. these guys, this is what matters. these guys have beaten sales expectations at every quarter since they came public that is nine quarters in a row in fact, they'd nef beaten the consensus number by less than 5% sounds like lululemon to me. so i feel pretty confident saying on holding's going to have a strong holiday season allowing it to top its conservative forecasts in retrospect i think all the hand wringing we saw tuesday will look downright silly and not only because my wife has so

many pairs of clouds that three of them are in my closet here's the bottom line don't be misled by wall street's confusing reaction on holdings the fast-growing footwear company reported a fantastic quarter with encouraging guidance and i think the stock is a screaming buy when you remember how much it's pulled back over the past three months. as i see it you're getting a terrific quarter for free. what's not to like jeff in california jeff >> caller: boo-yah, boo-yah, boo-yah to ya, jimmy chill we love you in downtown l.a. >> there you go. and i love downtown l.a. from the days when i lived in my car. very hospitable. olive street that was another place they let me hang out. what's going on? >> caller: oh, lord jesus. anyway, jim, because we are right in the middle of the basketball and football season, it would appear to be a month-brainer to buy draft kings. now, but since november 1st draft kings has popped from 27 bucks a share to 37 bucks a

share because thousands of people right now are gambling on football and basketball. can i buy it high or should i wait for a little pullback and what if there is no -- >> jeff, i've got to tell you, first of all, thank you for the fine comments. i think jason robinson did an amazing job. i've been recommending the stock for a long time and it popped big this week. i think you've got to wait for a pullback at this point look, i just -- you need a pullback this thing has just been too red hot, up 227% it would be reckless of me to just say go buy it up here that said if this thing pulls back i've got to tell you something. >> buy buy buy >> mike in wisconsin mike >> caller: boo-yah, jim. love your show love you, love your show >> thank you very much >> caller: this is mike calling from the great state of wisconsin. i'm gearing up for the john deere opener this weekend. i have to say it's one of my favorite traditions, jim it ranks right up there with watching "mad money" from my dinner table each and every night. >> thank you very much thank you. >> caller: you're welcome. on yesterday's show you mentioned growth company

laggards, quality companies that outside of the magnificent seven may have been forgotten about or overlooked by the money managers >> correct >> caller: i wanted to get your thoughts on etsy and how money managers might be looking at it in this environment as interest rates fall and the fed stops tightening >> it is funny you mention it because i've got to tell you something, mike, i've looked to think about whether i should put etsy on the list because i think it's turning right here. but i didn't have enough hardcore evidence to do so but i think that josh silverman is going to get that thing going again and you're not getting a bad price at all so i am blessing that idea and i thank you for all your consideration. don't be fooled by the street's reaction to on holding's latest quarter. the company is still executing and it's executing well. i think it's a real buy. much more "mad money." i'm sitting down with an under the radar player that counts some big customers including apple on its agenda. don't miss my exclusive with a

company called sitime. some of america's top ceos last night. i'll tell you how some of the top business leaders could be setting the table for u.s.-china relations. i'll do it in a funny way. and of course all your calls rapid-fire in tonight's edition of the "lightning round. so stay with cramer. progress means producing renewable fuels for trucks on the road today. we're partnering with farmers to develop these fuels using everything from plant by-products to cow manure. and then using those fuels to help lower the lifecycle carbon intensity of the transportation industry. driving the world forward today, while forging new roads to the future.

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a couple weeks ago we got this call from gary in california who wanted to know about sitime that's a small cap maker of timing chips used in everything from smart watches, data centers, planes, automobiles big market after doing some homework i circled back to this one a few

days later sitime looked like a pretty good opportunity. it might be early but this is a tough story for anyone who's not an electrical engineer to get their head around, which i'm not. which is why we were thrilled when the company reached out to us and offered to come on the show to explain what they do directly so let's take a closer look with rajesh vashist he's the chairman and ceo of sitime to learn more about what they do mr. vashist, welcome to "mad money. >> hey, jim, thanks so much for having me. it's a real pleasure to be here. >> oh, you're very kind. i want people to understand what they own that's really important. i think people have to start with what are precision timing solutions used for >> that's right. so timing is the heartbeat of all electronics. every electronics you can think of needs a timing chip about 15 years ago we decided to revolutionize the market, take out the 70-year-old technology which is quartz-based crystals and change it to semiconductors. and as you know, semiconductors always wins when it goes up against non-semiconductors

that's our business. >> well, wait. quartz has been time immemorial. quartz is the toughest thing in the world wp why wouldn't quartz work for everything else >> well, because it's not semiconductors semiconductors is the best technology ever known. we are programmable. we are 1/25 the size we can take 50,000 g forces as compared to 2,000 g forces we can be connected to built in a fab, the quality, reliability. all of those things just make it ideal. semiconductors >> so something like aerospace where you really have to worry about -- or data centers where they can burn real hot, these all work for you >> that's right. so for example, google or meta or anybody woos in a hyper scaler business would like to use our parts perhaps in the opticals, perhaps in the interconnect, or as you said a aerospace, spacex, lower orbit satellites that's a great market for us >> are you one of the reasons a smart watch is so much more exciting and informative than my old dumb quartz watch?

>> that's right. and we have some of the biggest smart watch makers in the world that use our product and one in particular garmin, for example, uses our parts all the time >> you also have -- in the last quarter you talked about our chinese business is robust i thought that was interesting it's a meaningful part of your revenue. because a lot of people aren't seeing good business in china. why is your business doing so well there >> yeah, so part of our business in china is the automotive business and we do 60% of all chinese evs. we're in 80% of all u.s. evs electric vehicles, which are also a short way of saying automated driving, radar, lidar, cameras, the displays, all of them work with our chips >> assisted driving, how does that -- you play in that world >> so you need 12 cameras that tell you what sensor's coming in you need radar, lidar. you need smart mirrors and all of that that computes with a hyper performance computing system

an ai system perhaps a dojo system. any of those >> when i look at your total addressable market, some people say it's 8 billion, 10 billion, but if everything uses you conceivably shouldn't we be thinking of -- whatever device needs to be smarter it might be yours. so if there's artificial intelligence make things smarter there's a reason to believe you might be part of artificial intelligence >> that's right. so giving credit to the quartz industry as you said earlier, 70 years they've been doing a fantastic job. we're not trying to displace them we're not a market share game. we are delivering chips, precision timing chips that we invented with our immense technology that are so dramatically different so that's why we are 85% single source with our customers. this is a great place for us to be given that there's 40 purveyors of quartz crystal. we're the only ones in this technology >> now, when you say mems, that's micro electrical mechanical systems this is just something you guys -- no one else has that >> nobody has this kind of mems. you and i are very familiar with

circuits and circuits are electrical circuits >> right >> mems is moving parts. moving parts in silicon. so we have resonators that vibrate for 30 years at millions of times a second without any failures how great is that? >> wow, that's incredible. and i love the fact that when i look at all the different -- you've got some great stuff in changing the world of timing you created precision timing no one had done this before you? >> yeah, so i love being the category creator my previous company i did that i like to go into large markets at the time when we started here it was a $5 billion market now it's 10. it's headed to be a $20 billion market and disrupt that that is where great companies are made >> we know from nvidia, we know from amd they do fabless semi. you do fabless semi too. >> fabless semi. we are we do our mems chips at bosch in stut grt in germany and our analog chips in taiwan another leader >> you had this really boom

period and then there was an inventory glut where are we in terms of working that off because i know when i always tell people look, when you're a quarter away from the end of that you can't wait till after it's over. where do you think we are in the cycle? >> so what we did, what happened was our customers overordered, things were tough during the -- >> overordered, they double ordered because they needed it really badly they weren't dumb, they just neededit really badly. >> exactly and they didn't want to have shortages and we supported them. but now they realize they built too much inventory between themselves and the contract manufacturers. now they've been bringing it all down demand is ticking up we believe that q2 was our lowest quarter we went up by about 20% in q3. and we've guided to about 15% to 20% up in q4 >> of which you said there are many new customers, not just the same ones. which is significant because that can come in and burn through all the inventory >> that's right. we also have new customers, new use cases. we have 300 use cases, 15,000

customers. >> wow this might be the time this might be the time everyone's waiting for the time for advanced micro they're waiting for intel. this may be the time for your company. so i'm so glad you came on right now. >> i'm so glad and it's the people that make this company great and we built a great culture magic happens at sitime sfwlp that's rajesh vashist, chairman and ceo of sitime. thank you, gary, for bringing us a very exciting story. "mad money's" back after the break. >> announcer: coming up, cramer takes your calls and the sky's the limit. it's a fast-fire "lightning round. next (sfx: stone wheel crafting) ♪

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? ♪ (♪♪) [coffee pouring] (♪♪) [van engine] [card reader chimes] (♪♪) [garage door opening] (♪♪) [inaudible chatter] [card reader chimes] (♪♪) (♪♪)

it is time it's time for the "lightning round" on cramer's "mad money" -- 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 barry in new jersey barry! >> caller: hey, jim, you know i love what you do at cnbc >> thank you, barry. >> caller: yeah. how's your week been >> not bad not bad. how about you? >> caller: yeah. well, i was down at winberry's with my brother-in-law and we were talking about "monday night football" and i really hope your hometown eagles beat taylor and the swifty chiefs in k.c. on monday >> well, you know, i would have bought you a bloody if i knew you were in town but it's the first i heard of it. how can i help >> caller: well, i'm calling because i'd like your opinion on a company. they've received investments of $215 million from stlantis boeing and united airlines and

they're the in field of commercialization, of flying cars archer aviation. >> okay, barry, this one's too speculative for me i would rather do daily fantasy with baltimore and cincinnati than that one. i'm sorry but that one's a little more investables than dfs there. let's go to nancy in wisconsin nancy. >> caller: boo-yah, jim! long-time listener here. i wanted your opinion of the solar stocks, particularly solar edge is it time for these -- >> you see it's come down a lot. it's come down a lot but you know what? i've been staying away from the solar stocks and i haven't hurt anybody in them. i feel good about that j.j. in new york >> caller: hey, cramer >> what's up, j.j. >> caller: 20% short interest and they've made the increase in the dividends in the last 13 years. arbor realty >> here's the problem. i don't know what they own

and for all i know they own bad real estate. it's just too hard mezzanine financing is where i'm very worried i've got to say hard pass on that >> let's go to kitty in california kitty! >> caller: hey now i've been watching you for 25 years. when i first started watching you i had no idea what you were talking about. >> i didn't either >> caller: well, i love the production value i loved all the bells and -- >> well, that's regina gilman. she's the best thank you. >> caller: anyway, so question i was visiting my daughter last weekend in l.a i live in ojai, which is a suburb of -- >> ojai, how are you >> caller: oh hi, i'm great. actually, i call it ah because it's so magical. i was visiting my daughter and granddaughters last weekend and my daughter took me aside and said guess what? carly is obsessed with race car driving. now, carly is my 16-year-old

book -- what do you call it? when you like to read books. bookworm eagle scout okay she is obsessed with race car driving. >> fabulous. then they should be watching sara eisen tonight special on formula one 8:00 go ahead >> caller: i know. i've been watching all week. so i called my daughter and i say is it formula one? and she said yes anyway, she said she and all of her friends are obsessed so if she's obsessed and all her friends go to camp -- >> okay. that's good. let's wrap it up, kitty. what have we got what's the stock >> caller: i want to know the best way to play it. liberty media? is that the -- >> yes yes! yes! joseph in new york oh, jersey joseph's from jersey joseph oh, no >> caller: hey, cramer >> yeah, buddy, what's up?

>> caller: how are you today >> couldn't be better. how about you? >> caller: good. good, good i'm calling today to get your thought on the future of sq block. >> look, i think that they had a good quarter my problem with it is i like the mastercards and the visas. we're getting away from the crazy fintechs of old. we like the fintechs of new. i hit this thing and -- i'm fine i'm okay am i okay? i don't know i have to say i'm okay like tim cook we've got to call or something let's go to theresa in minnesota. theresa. >> caller: jim, i bought philip morris in the '90s when it was dirt cheap i'm addicted to the dividend but i'm not happy with the company what should i do >> well, you sell it i don't recommend tobacco stocks even though there's a guy that runs the company that -- but i'm not in the tobacco game. that's a bad business. i want to go to kelly -- this is a neverending -- like four "lightning round"s we're going to cut them and show them all weekend how about kelly? texas? kelly. >> caller: boo-yah, jim. how are you doing this well? >> i'm doing well.

longest "lightning round" in history. congratulations, you're a member >> caller: yes, sir. i need to acknowledge i joined the club i appreciate the staff and the job you all do >> thank you thank jeff too >> caller: just initiated a new position with bdx. and wanted to -- >> if you bought it after that big shortfall i think you'll be fine the company's very reactive and it will fix the situation. so i think you'll be okay. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by charles schwab coming up, from summit to endless summer cramer reveals a roster of stocks that could be poised to profit next the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute

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sometimes you can't overthink things like keep it simple stupid i wish we had a simple etf that would allow you to bet on friendlier relations between our government and china after president xi's state visit to san francisco. i know i can put this etf together myself. all you need to do is look around the table at last night's gala dinner between american business executives and xi jinping as he attempted to connect with companies that could rekindle what appears to have been a pretty darn good relationship the attendees were some of america's best with very few clunkers which is why i want to turn the whole darn guest list into an etf. we know tech remains the hottest area of the market who did we have around the table? first there's tim cook, ceo of apple. this dinner was very important for apple because it verifies

what wall street seems unable to believe. china likes apple just fine. a few months ago we were hearing rumors that china would ban government employees from using iphones. now it seems absurd. apple gained share this quarter in chinese cities. so let's overweight apple in the chinese etf. then there's pro com which makes cutting edge semiconductors. this one's a huge position in our charitable trust we liked its acquisition of vmware which makes key data center software. recently the ceo told us this deal which is being held up by chinese regulators will be closed very shortly. but dinner with xi can only help the cause. qualcomm has been a fractious situation with me. this cell phone chipmaker is trying to diversify in autos but it's been hit or miss. qualcomm's got a strong business in china sxounds out our etf's tech exposure. then we need some industrials. there were plenty to choose from how about stanley diel, president and ceo of boeing commercial and chairman of honeywell, which has a huge aerospace business.

they can give us diversification. good to have them around the table. i wish there was a little more consumer exposure but we have to be satisfied with mark parker chief executive of nike and chairman of las vegas sands. alibaba, the chinese e-commerce titan reported a huge letdown of a quarter and saw its stock fall 9% what else? i can't believe how lucky we are the best transport there is none other than fedex raj has done a tremendous job of cutting costs and growing the organization i praised him at the top of the show but he needs big china for numbers. pharma's there value plays. gilead and pfizer. while pfizer's not my favorite it gives you 5.5% yield. and chinese communist party if they have a half brain they'll start buying pfizer's covid vaccines because they work much better than china's homegrown one. don't know if this counts but mark casper the ceo of thermo

fisher scientific is also the chair of the u.s. china business council. he was out there and last night he introduced u.s. commerce secretary gina raimondo. the charitable trust owns its competitor dan her which has a huge chinese medical instrument business good to see the industry represent fingerprinted there's a flaw in the china etf it's too overweight the financials. evan greenberg the brilliant boss of chubb introduced xi to the table. insurance stocks are cheap larry fink the ceo of blackrock and someone who knows china incredibly well sat at the table as did long-time china friend steve swartzman. larry, though, he can be the senior statesman and putative chiefar-bitter of how much vu investment will be directed to china. and how about having the co-ceo of an amazing private equity firm joseph bai of kkr how do you say best of show? visa ceo ryan mcnerney and mastercard's chairperson were both there the only two fintech plays the only two fintechs that i can

recommend without reservation. filled with best of breeds if only it were a real etf we might even be willing to buy it. i'd probably pick it up for my charitable trust which would be i afirst for us. i like to say there's always a bull market somewhere and right now on "last call," getting cozy with xi have u.s.ceos crossed the line with the chinese president elon in the hot seat tesla backlash over a controversial musk post on x a nasty jolt to the ev industry why shares are tanking after hours. call it the red cup rebellion. thousands of starbucks union workers walking off the job. we'll speak with one of the strike's leaders. countdown to the green flag. th