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tv   Mad Money  CNBC  December 12, 2024 6:00pm-7:00pm EST

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northwestern. i know you are proud. feel better, on behalf of your friends here at cnbc's "fast money." >> may we say who the kid brother -- >> that would be terry duffy. >> one and only. thank you for watching "fast money." "mad money" with jim cramer starts right now.who the kid brother is? >> terry duffy. >> thanks for watching. . 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. i promise to help you find it. "mad money" starts now. i'm cramer. welcome. trying to make you money. my job is not just to entertain but explain what's going on. call me. tweet me. we had a thrill today on the
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floor of the new york stock exchange. donald trump came to celebrate being named "time" mag magazine man of the year. the nasdaq losing .66%. there was no yawning when he was talking about business in our country. i'm well aware trump's views aren't in play every day here. we had good stocks that got pounded today. trump wasn't going to give you the green light to buy stocks. i will have more about the interview later in the show. if you listen to this, you will understand he is not just a cheerleader. what can you say to the working person who owns stocks? should they buy more stock? >> i don't want to get into a situation where they do and we have a dip or something, because that can happen. you know that better than anybody in the world. you are the leading authority in going up and down. you always end up.
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he always ends up. that's the good news. >> there's something to be said about optimism toward business. that is what i saw today. love him or hate him, trump's love for business makes it easier to be a good investor. it's tough out there. you have to be able to own stocks through thick and thin if you are trying to make money in the market. you do like owning stocks more when your companies aren't being prosecuted for being too powerful. trump's attitude won't matter every day. adobe has to lower prices to compete or come up with something that makes it superior to its rival. he is not going to send the stock of chevron up, that it will make up for inflation we have in the system. we know oil execs get clobbered
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when they overproduced during the first administration. they got disciplined. the results didn't kick in until the biden administration. it was hostile for fossil fuels. my takeaway from trump's pro-oil and gas stance is that america has become such an important part of the oil equation that we can bring down the price with our over wn overproduction. we don't want inflation to heat up. we could use oil down 10 bucks. but there was something reassuring about the president-elect coming to the new york stock exchange that was just like when president reagan came to ring the opening bell on march 28, 1985. i remember the occasion. i was at goldman sachs. when it happened, a marvelled a
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president was so comfortable ringing the opening bell. jimmy carter, he didn't think much of the stock market. reagan embraced the market. it made you want to go buy something. it was a time to buy. ringing the bell is a big deal. coincidentally, we had a huge ipo today, servicetitan, for trades people. trump had nothing to do with it. if you got some of the ipo, you are now up 42%. it mattered with reagan. it matters with trump. how will this new president pan out once he is in the white house? any company that spends $1 billion in this country will be rewarded with lightened regulation. >> a lot of incentives are going to be given.
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you saw yesterday, a billion dollar investment, we give you fast approval. nobody has come up with that one yet. it seems simple. i think you are going to have great days ahead. >> of course, even with the president's backing, it's hard to build things in this country. what matters is we are about to have a president who is the corner man for business. even if he singles out some who he thinks are doing the wrong thing. he favors higher stock prices, like reagan who said wasn'ted the bears to be in permanent hypernation. that matters. we never saw joe biden on the floor of the stock exchange. did we? my dealings with him, a political business joe, he didn't care about the market. many don't. i'm about trying to get regular
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people to be rich via the stock market, i viewed biden's view as needlessly antithetical for get ing wealth. the legacy of the departing president could have been he helped create wealth through savings. the 401(k), the pension. then biden would have been able to be true to his assistant attorney general. he would have been on the other side of the trade from the ftc's harassment of amazon and its investigation of microsoft. it might have threatened his self-image as a champion of the working man. to put it another way, here is what i heard when i walked on the floor this morningdespite b.
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if they go up the next four years, it will be because of trump because he is willing to take the credit. biden continually underestimated the number of people who built wealth in the last four years. so did vice president harris. today, like that shining hill day in 1985 when reagan stood up here, right there, it's a reminder that the trump white house will be in favor of higher stock prices. that makes it easier to invest. as far as i'm concerned, that's great for the stock market, even if today was a suboptimal session that will mean nothing in the long term. let's go to john in kentucky. >> caller: i got a question about a lending corporation,
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lin. they have a green hydrogen unit. it's 10% of their profits right now. they are spending a good force of cap x on it. they are scheduled to grow over 10% for the next few years. i'm worried about the stock, even though i'm -- after seeing them on your program and doing research and buying the stock, i'm up 80% and like that. with the changing administration and the de-emphasis on renubl -- renewables, what should i do? >> the stock has been weak this year. it's not what i want. it's been a great long-term producer. this company has not had the luxury of having volume growth. that's going to happen in 2025. stay long. a lot of talk about that next
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week when we sit down and do our club call. president-elect trump embraced the investing class. he has done it. as far as i'm concerned, that's great for the stock market long term. i'm sharing more of my key takeaways. under armour is back. we will hear how they are preparing to right the ship. stay with cramer.
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when i broke into the journalism industry, i wanted to get in front of people's faces. when i found myself sneaking behind vance to get to trump, it was like the 1977 cramer. i had my list of 25 questions in my head. they tumbled out chaotically. trump said things that need to go over because they matter to the market. let me annotate this so you understand. how about trump's invitation to come here to create new business? >> you will see good dias ays a.
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you saw yesterday, a billion dollar investment that will give you fast approval. nobody has come up with that one yet. although, it seems simple. i think you will have great days ahead. >> this reminded me how difficult president biden made it for companies that wanted to build liquefied natural gas terminals here. he had a moratorium. l & g exports would have been the best way to push back against russia in europe. they are addicted to russian natural gas. trump said a lot about taxes. >> we're going to do things that haven't been done before. we're going to cut taxes further. we got it down to 21%. we will bring it down below that. pay 21% if you don't build, your product or whatever it is you are building. if you do, we will get down to 15%. you have to build your product, make your product in the usa. >> the numbers aren't as
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relevant as the fact he is talking about corporate taxes being cut. regardless where you stand on that, if you own stocks it's good news for your portfolio. more profits for companies means more profits for you. you care about crypto. listen to this. >> we're going to do something great with crypto. we don't want china or anybody else -- not just china, but others are ing it. we will be ahead of ai. >> here is a president that senses opportunity in crypto and ai. you need to know behind the scenes many people who worked in finance told me if we didn't go into crypto eventually, it would go somewhere else. we wouldn't have any ability to control the crypto ecosystem. if you own crypto, you want to buy some, i found that positive and reassuring. trump had two things to say about china. >> we have had a lot of talks with china. we have a good relationship. i have a surprising relationship. when covid came in, i cut it
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off. that was a step too far. we have been talking and discussing with president xi and other world leaders. i think we're going to do very well all around. >> this was in response to my concern the chinese could try to block us from getting product from taiwan like chips for nvidia. he said he had a good relationship with china. made me feel reassured. then we got this. >> we have been abused as a country. we have been badly abused from an economic standpoint. even militarily. we put up all the money. they put up nothing. then they abuse us on the economy. we can't let that happen. we're not going to be abused anymore. we are going to help other countries. >> while the president-elect is saying good things about the relationship with china, the chinese government better not be complacent about our
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relationship. i found it chilling. maybe that's what we should expect when we talk about two superpowers with nuclear arsenals. we heard about the magnificent 7. >> zuckerberg has been to see me. i can tell you, elon is another and bezos next week. >> i know it's a morsel, but this is a reminder that trump wants to listen to business leaders. he wants to sit down with ceos without fearing embarrassment and disdain of his party. he is breaking bread with someone who he did not get long with. go back to what he first did when he came in with amazon and jeff bezos. as an investor, i favor a president who consults with big business who enjoys prosecutions and ies. here is the bottom line.
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ing is going to lead to reasoning. it's good for business. good for the country. and, yes, good for your adon" bk "m meyisacafter the break. >> looks like christmas came here. we are talking to the ceo of lowe's. we are examine the economy from the ground up. (office chatter) is it me...or is work not working? at least, not the way it could work. your people are buried in busy work.
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i guess you know where i was today. the brooklyn store of lowe's with the chairman and ceo of lowe's, marvin ellison. we talked about pretty much everything from tech to the fed to housing turnover and to what it looks like to go to a beautiful store. take a look. you and i know it's my lowe's. seven years. give me the run here. >> it's great to be here with you in brooklyn. i remember we had lunch that day. i came to the store for the first time a little over six years ago. this store has been transformed. we transformed it with people, with product and with technology. a lot of the technology that we
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had no idea at that time that we needed because the previous management didn't really understand that retail is about technology, technology that makes the associates' jobs easier. i'm grateful and proud to be here with you today. >> you should be. there are certain milestones of what you have done. i remember when the pro did not want to come here. the percentage of pro that you have from when you took over is extraordinary. >> six years ago, the pro penetration of the store was about 20%. now it's close to 50. what that tells us is we put the right product in place. number two, we put the right people in place. we put the systems in place, like our rewards program. it gives customers a reason to come back. for an urban store like a store in brooklyn, if you don't have a pro penetration that starts with a four or five, then it's hard to get the frequency and the productivity. we are pleased.
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this is a model for what we are building around the country. >> one of the things you are doing, you are taking share and you are doing it with perpetual product improvement, including the time. the way the aisles work. how they get in and out. time is precious. >> it is. the one thing that we figured out early on is that we have to find a productivity loop. it's our initiative to look at ways we can make every asset and every aspect of the store run better. from labor management, to prizing to cost out to supply chain. we have great innovation in this store. we resigned the front end, our labor management system that's activity based by department, by day, by day of the week to make sure we are putting the associates where they need to be to drive customer service. that helps to create a frictionless customer
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experience. >> i want people to know it's not just for show. i love this nudge program that you have got with nvidia. it makes it so checkout is good. it helps shrink, too. >> it does. we were one of the retailers that continued to expand self-checkout when others were pulling back because they were concerned with the shrinkage. one of the things that we determined that you could use this nudge technology by using cameras and also ai type of interfaces that reminded the customers of what they did and did not scan. you would be amazed at the effectiveness at the technology. now we are testing something else. we put cameras around the store. we put heat maps around the store. we can determine where customers are versus where our associates are located. then we can then alert an associate, there's a customer that's dwelling in an area that may need customer service.
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we can help that associate to get there a lot faster. our partnerships with computer vision, with nvidia, with openai has been remarkable. we are working on really cool initiatives that we will roll out next year. >> at the same time, you are hostage to some degree. you have been talking about how it's a moment where there's some people hurting. you do lowe's essentials. also, in terms of housing turnover, which you need. it's not happening yet. when can it happen? what will it mean to lowe's bottom line? >> we have the lowest housing turnover since the mid 1990s that's going on right now. we call it the lock-in effect. roughly half of the country has a mortgage rate of 4% or less. so you are not really incentivized to put your house on the market. we are stagnated. we do need housing turnover to start to happen. also, the thing that we are happy about is that you have
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good disposable personal income that's rising faster than inflation. houses are the oldest since rec keeping. we feel good about the fact that the homeowner is economically healthy. we still have a consumer confidence issue and we have consumers feeling the pain of inflation and interest rates. when the macro environment frees up, you will see turnover happen. it's going to be like a tailwind to our business and other business that's dependent on housing. >> people have to understand when the fed cuts rates, it's meaningful to business. you have a lot of money locked up in homes. i would have to believe as rates come down, you might see some of the people take out home equity loans and come here. >> the data point is, you have $35 trillion in home equity in the marketplace right now. it's literally frozen. what we predict -- we don't know
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when it's going to happen. you are right, you are going to have people that's going to tap into home he equity and put in flooring, a new kitchen, redoing a bathroom. we have made investments over the last five years to put in best in class showrooms for flooring, kitchens, bath, appliances. we know that when that cycle happens, we want to be ready. we don't want to be chasing it. we have been working just on the technology infrastructure. our digital infrastructure, our i.t. infrastructure. we are in a really good position when the market starts to inflict. >> you are helping people. you are giving people -- when you do something about lowe's essentials, you are appearing to people who -- they want do their home but they have been priced out. >> that's right. we basically decided that we were going to create a new brand
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called lowe's essentials that will give a great value but great quality at a value. rather than having to go to a dollar store environment or a mass merchant for a lower price point home goods item, we will create our own brand that's going to create opting price point, that starter to get them to come in. our merchants and i talk about this. asking the question, how can we be a better opening price point retailer for home improvement? they took the lead. we created this lowe's essential brand that's rolling out next year. we are excited. >> same time you have done a lot rural. you have come in -- i like what you are doing with hart. >> what's interesting -- you know i spent four years at jcpenney. it was an incredible learning experience. i met some of the best people in the retail world.
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but also built relationships. carhart was one of those. when i came over here, we opened a door up and asked them, would they be willing to work with us? we started online. now we started to put it in the store. what surprised me is that we thought this will work in the rural environment. then i come to find out that one of our best stores in the company is brooklyn. >> brooklyn? >> right here. right here. we decided to put it in just to see what would happen in an urban environment. we found out that often with all the fancy data we have, we get the customer wrong. now we determined this is not rural. this is a consumer brand. we are expanding carhart, automotive, pet, across the company in addition to our rural locations. we have wrangler, lee. we have other brands along with carhart that we are excited about that is helping our pros
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and our diy consumers get into this. it eliminates a trip. they don't have to go to the other place. >> they do not. >> they can get those goods and get their home improvement goods. >> people don't know about you. a humble person. you are not going to brag. i think your hiring of vets is unparalleled. i think it's because you believe in vets as being great business people. >> for sure. we have 26,000 current or ex-veterans working for us right now. for everybody watching this broadcast, if you are in a lowe's store and you see one our associates wearing a camouflage vest, that's a vet. we are proud of them. they bring a work ethic. they bring a love for this country and a love for their fellow associates like no other associate population. we are extremely proud of them. we are proud to be a company
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u.s.-based, all of our revenue driven in the u.s. we support our vets because they need it. we philanthropically -- the veteran population is one of our largest areas of philanthropy. we offer this 10% discount, which very few restrictions year round for our vets. we want to say we appreciate them. >> last thing, i gotta get -- like many other people, i have to get my wife christmas presents from the store. what is hot? >> you can always -- we got the best assortment of appliances. i'm taking you high first. we got some of the best appliances. we are the only retailer in the u.s. that can do next-day delivery in almost every zip code in the country and install for the appliance. appliances are big. tools are really big. this is a time of year where you can't go wrong with our tool brands. we got to take you over there. again, anything that has to do with the home, whether it's grills, whether it's outdoor
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power equipment, you are in the right place. we can take care of all of your needs. >> i gotta take a break. let's go do some buying. thank you very much. >> thank you. >> coming up, sometimes this market feels like a battle. is it the right time to invest in under armour? cramer is going one on one with the ceo next.
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what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. can under armour make a comeback now that his founder is back? they hosted investor day in new york city. i want you to get the same insight as the professionals at the meeting.
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let's go to the ceo of under didn't armor, -- under armour. you said, i'm not coming on l, because the facts are in our favor. i begged again. i will come down there. today is a day where you f i stepped back in the chair april 1st. in the last eight months, we have been able to get our arms around the business. it's simple.to basics. under armour finding itself. the weeks, we cut 25% of our skus. we reset our workforce a little bit. we made difficult decisions. added a nine month go to mark to speed up our process. the most important thing, we defined who we were. i think for a long time, you
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could see where the brand -- it's important to be able to know who you are but being able to articulate that. >> is that what went wrong? the pred ecessors forgot who th brand was? >> it was important we were clear. in the first three weeks we commissioned a video, who are we? you are right. i do live in a trailer park. i am this. i am that. we got it out of the way to take vulnerable and being comfortable to being uncomfortable to say they is where we are. this theme of what and who we were, the underdog -- it wasn't complicated. it became so obvious. we started crystallizing it. we put up a 138-second video. i could have saved us the three hours by articulating through this way, which talks about
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everything from what it means for that person who wasn't born big enough or fast enough or tall enough or strong enough or handsome or pretty enough who had to apply 10,000 hours. that's what i'm going to do to create my superpower. under armour is for that person who does have to try more. we don't innovate so we can run up the score. we innovate to give our athletes a fighting chance. that is -- it's what we have been missing. it's a position so clear and authentic. >> what i'm worried about is this. when i met you, you were the underdog to nike. i now feel you are the underdog to on, to hoka, new balance. these are heavy competitors who are as feisty as you are. >> what's unique about us is one of things we covered today was under armour -- i'm trying to -- we are going to cover the athletic industry.
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i respect the other brands. they are very good at what they do. they are competing in the running segment. companies are built because you make a product and it becomes famous. how brands become famous -- they demonstrate we can do that over and over and over again. under armour has a diversity of who we outfit, more than just running, yoga. everything from notre dame football all the way to three guys on real madrid to curry and the nba or olympic finals. the way we can do that, we call ourselves a sports house. there's only four of us globally. three of our competitors. we have that ability to show up on any athletic field, court or pitch in any athletic endeavor and be seen as credible. >> i felt one of the most
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important things you talked about today was international. the strategies for different geographies. when i travel, i think you are bigger in europe than here. >> what we need to do -- three regions we look at. as the father of an 18-year-old daughter and 21-year-old son, to be with my kids. my daughter doesn't wear under armour because dad works there. i don't think the kid is mad at us. we identify our consumer at 16 to 24 years old. they are not thinking about us. that's our job as s to make them care. one of the big points we made is that here and globally, we got money. we have resources. we have more than a half a billion dollar marketing budget. when you walk around the states, it's one of the things where bringing someone to our team, the former president of
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marketing and -- having him mandate, go find it and let it be felt. we have good trajectory in europe. here in the states, we are -- we have taken some positions to reset our business right now. >> we should take about -- a positive surprise, a good number. last number was good. i want to know -- this is what people will say. my god, cramer has drunk the kool-aid. now he will come back. nothing good since 2018. what do you say to people who say, it's been too long and it's too late? >> i'm 52 years old. i can't imagine doing this at 62. i gotta tell you, number one, the last eight months have been some of the best times in my entire life. the ability to drive happy. i'm a lousy golfer. one thing i said is, what we will do is make sure we are driving and building a quiet company and a loud brand.
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you learn to bring wisdom of that 28 years of having done this work. you can feel it, smell it. the key this time is, the golfers aren't -- the harder i swing, the farther it goes, the guys that hold the club loose. i'm doing that and empowering or team and applying lessons. >> when i spoke to marvin ellison at lowe's, he says the modern retailer has to know technology. in the times that you went away, technology changes. are you able to bring enough, bring enough of the wisdom of tech to be able to make it to catch up and pass the other guys? >> i think that's an opportunity, how will ai affect -- all the things that we have fomo on that. how will we address that? we are starting with our brand. we went back to blocking and tackling. right now it means, it's reducing getting our margin structure right. we will clean the brand up.
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when i walked back in in week sixth, we reset expectations and took $700 million out of our top line. two-thirds out of our bottom line. it's time to get healthy. a year ago on ecommerce we were one-third full price, two-thirds discounted. this year, a year later, we have inverted that, close to it. we are more than 50% full price and the balance -- >> what should be the goal? >> 100%. >> if you can go up that way, the margins are going to explode. >> that's what happened. that's what we have seen happen is that it has been -- we said because we were so much red on the screen, we were ing, let's reset the math. gross margin has been good. that's what we did today, we had a qualitative conversation. we weren't ready to ath. we wanted to feel the energy. do you have a strategy? do you know who you are?
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be able to ar tk ticulate that. >> are they embracing? what was the temperature of the room? >> the audience was good. you are walking into -- where is the beef? i want the math. without that, it's a tougher conversation. we haven't held an investor day in six years. it's been 2,189 days. represent our team. you have to put these flags in the ground, mark ers that says, look back. i remember what they said they're going to do. they did articulate the underdog message. i was able to listen and it's a mixture of new blood from the industry mixed with classic ua.
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we put a good diverse group of people. we will see what happens. >> if i say -- someone says, what is under armour, sneakers, clothes? what do i say about this company? >> we are not emulating anybody else. we are going to listen and learn from our own lessons. 28 years having done this, we have seen a lot of different chapters of what this brand is where it's going. we are about to reinvent a new chapter. >> we have founder dna here. you and i, at certain points, we thought things were not awry. for you to come on to me says, jim, i am not going to let you down. are you going to let me down, those people down? >> no. no. this is about the brand. this is about the name -- >> is your team going to win? listen, i know that you want to win. i know you hate to lose. you hate to lose.
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going to win? >> you know, we are opening a new headquarters in baltimore. quick answer is yes. it's thinking about things, what happens in a post-pandemic world how people are coming to the office? i have thrown enough good parties in my life to know you can beg people, pay people, try to get them to come to your party. or you can focus on throwing the world's greatest party and everybody will want to be there. our brand will inflect before our business does. the best example are people sitting here on stage with me today. it was our head of north america who everybody took our business in europe from 600 million to a billion when you ask about the upside, it's eric and laseen. i'm excited. we are in the fight. there's no guaranteed in this world. i wouldn't bet against us. >> i respect you and everything you do. >> appreciate that.
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>> that's kevin plank, founder, president and ceo of under armour. if he is here, i believe. ♪ ♪ ♪ ♪ ♪ (vo) whether your phone's broken or old, we've got you. with verizon, trade in any phone, any condition. it's your last chance to get iphone 16 pro with apple intelligence. get four, on us. on any unlimited plan. only on verizon.
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. it is time. lightning round. are you ready? i'm starting with jay. >> caller: longtime follower and club member.
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i have had this stock for a while. with chip factories starting to be in the united states, i think it's just a falling machete? my stock is applied material. >> that's a falling machete. let's forget about the chart. it's one of the worst. they will have better orders next year. let's go to quinn in oregon. >> caller: jim, respectfully, boo ya. here is the situation, i'm 26. your show plays on the trading floor every day. i want to pick your brain on fblk. >> that's a play on china. i'm not there. i am against that.
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i don't think that-year- yield hold up. keep watching. let's go to market in wisconsi. >> caller: dr. cramer, thank you for taking my call. i talked to you about this stock as a spec. you said okay for a spec but they are losing a lot of money. ticker simply mvts, semiconductor. >> that's okay for a spec. they are losing a lot of money. what can i say? let's go to ben in florida. >> caller: yeah. the stock i'm thinking of is down 25% this month. is it time to buy dah? >> you are going up against elon musk. that's a suboptimal situation. i will say no. that's the conclusion of the lightning round.
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traders are jonesing for action. they can't resist. they want to bet on what's next. it's easier to invest in stocks for the long haul. costco give you monthly sales numbers in between quarters. people reacting to the quarter tonight don't know or don't care that the monthlies tell the real story. anybody pulling the trigger hasn't done their homework. it wasn't a surprise. it can't. the truth about costco is the retired cfo explains. they make their real money from
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the member dues. you can be a gold star member, 65 bucks a year or executive. they raise the price periodically. no one cares because it pays for itself given the bargains. because it's a subscription model, they can bring there new stuff to make it exciting along with free samples and the $1.50 hot dogs. they sell stuff at or below cost. i go into this because i'm addicted to the subscription model, not the products they sell. a steady source of income that can be raised at will if the service is good. that tells me that costco is a buy. who else can do this? netflix. in 14 days "squid games 2" comes out. the analysts will praise the company and raise price targets. netflix can raise the price at
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will. if you afford it -- honestly, you can't remember what you paid for spotify because it's an incredible bargain. it's a good deal. amazon prime, lots of people thought i was ruthless. khan has been trying to bail out the consumer but the mom and pop businesses that she says can't grow because they have to play by amazon's rules. she fails to realize they have other options. the government has to weigh this. it she didn't care about the tens of millions of consumers who think amazon is a bargain or they wouldn't pay for prime. the stock is a buy for the reasons why she went after them. they price too low. they can disrupt anyone. that's why we own amazon along with costco.
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we will have plenty to say about that tonight. that's how good the numbers were. these subscription-based companies, there's no reason to trade in and out. any company that can raise price at will say company with a stock that i love. whether it's netflix or spotify, amazon or costco. trading other for a deal.those,. this is "shark tank." ♪♪ a stay-at-home mom who began her business in order to support her family. ♪♪♪ my name is kiersten and i live in los angeles, california, with my husband and my 12-year-old son and my 8-year-old daughter. i left my job to stay home with my kids, and then my husband lost his job, and so we desperately needed something to help pay the bills.

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