tv Mad Money NBC February 6, 2016 3:08am-4:00am CST
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300 tech companies, ipos that became worthless not long after they became public. the companies people are dumping furiously now, they're lucrative with excellent franchises, huge cash flows. they really are riding a genuine wave of social mobile cloud and connectivity. they're not phony. many are wildly profitable. that's why the selling has to eventually run their course. once the hedge funds are done liquidating you'll be able to buy the stocks at prices you would have salivated over a year ago. now they seem like worthless pieces of paper. trust me, they aren't. they're being revalued lower traveling from a continuum of expensive to cheap as we figure out whether business has gotten soft or the sellers are at last. finish before selling. giving you actual bargains for real growth for the first time in ages. for now though we're in a vicious bear market and it has consistent growth names with good yields. just remember, these aren't all
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over fist, they're simply techies that nobody wants at the moment but the bottom line is, that will change when these high growth stocks represent better values with stronger shareholders. until then they are falling knives and unless you're a buescher block, i'd stay away from the kitchen until gravity runs its course. let's go to phil in new york. phil! >> boo-yah, cramer. >> boo-yah, phil. what's on your mind. >> >> i've been investing for eight years. where do you see apple within a few years and can that become another win without steve jobs? >> that's an interesting question. it's a rim without steve jobs. it's got tim cook. apple is a tech stock. if you noticed it, it held up better than most tech stocks. why? it's selling at a much lower price earnings multiple.
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going to get a new iterations of an apple phone later this year. you hold on apple. you made a great investment. don't trade it. own it. larry in massachusetts. larry. >> jim, you've been as strong this week as cam newton's arm. safe trip home. in light of your great segments on coach and brunswick but with the cowan downgrade on all things upscale. i'm trying to defend restoration hardware or wait for an updraft and move into something more mainstream like mast masco and stanley. what are the good things to analyze to decide whether the rich will remodel their homes? >> there's one in san francisco at a new pier. it's not as inexpensive as it used to be. thank you for the kind comment. i will tell you this. stanley works is what my travel trust owns. got to buy the ones that have been put through the mill and
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we're in a ferocious bear market. be careful. have no fear, this, too, shall pass. last night in san francisco so why not make it down. i've got a lineup for the record books. find be out what mark fields believes the future holds for the iconic automaker. under armour snags one of the biggest stars of the year and whether cam newton will walk off levi field a winner this sunday. the prices available for the big game will set you back 20 gs. i'm talking with the ceo behind the business. stay with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question #madtweets. send him an e-mail at
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future's become unclear. can design, digital initiatives and pure unbridled horsepower get ford back in front of the pack? >> is it possible that the automobile business is doing better than the conventional wisdom would have you believe? investors fear that the industry can be peaky. it's a curious disconnect now. what smacks more, recession or fantasy. i don't know which. you know i'm determined to find out for you. i think the best way to learn is to talk to the straight shooting ceo of ford motor company. it's a pretty darn good fixed income equivalent. i think mark fields, the president and ceo of ford can give us insight into what the heck is going on with ford, ford
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important all the tow industry. >> thank you for coming on. >> i appreciate it. >> you declared a special dividend. fixed income equivalent of roughly 7%. your balance sheet is amazing. selling at five times earnings. what am i missing? >> you know, we -- we -- when you look at the data, we do think we're undervalued. we think that the people are underestimating the u.s. industry. underestimating our improvement, our international operations, product lineup. we're going to stay really focused. we're going to focus on growth, we're going to focus on derisking the business and we're going to focus on rewarding our shareholders. that drives value. >> i've got your january numbers in china. 130,000? >> y%s. >> best ever. >> ever. up 36%.
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not china. u.s. we know is frankly unbelievable. europe, i was very worried about it two years ago. you told me, don't worry, going to come together. came together. latin america. latin america, it's hard to imagine 295 million. it's hard to believe that could be the driver to wreck everything else. >> when you look at our results for the fourth quarter we're profitable in our operations. south america is a political issue, economic issue, commodity issue. we're committed there. we've been there for over 80, 90 years. commodity based economy. it will eventually come back. it's tough. when you look at the rest of our business, you're back to profitability. china now, a significant contributor to our earnings and north america continuing to be rock solid for us. we're always looking for down side risk and we're looking at it through clear colored
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>> a fellow from deutsch bank. ford is not addressing current or other challenges. ford management has come across as disconnected from the market's fears. what do you say to that? >> we're just going to layayut the facts. if you look at the fear right now, has the u.s. peaked? the next couple years can be pretty good. jobs and wages are growing. energy costs are down. inflation is low. interest rates are low. that puts a lot of spending in consumers hands. when you marry that with what we call the physicals in the industry, the oldest that the car park has ever been. in any given year 80% of the industry is replacement value. you add on top of that, housing recovering. not anywhere near prerecession levels. that's important for the truck sales. we're looking at the data. >> i'm struck, too.
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i see the f-150 numbers. i know you guys make a ton of money on that. that's not peeking that i can tell. >> absolutely not. we're going from strength to strength. when you look at the average age ofof pickup truck in the united states, 50% of them are 10 years or older and 25% of them are 15 years or older. you combine that with the better gas mileage and the housing still coming back, that's the biggest correlation in pickup trails, the housing market. we think barring any fiscal or economic shock* the u.s. market will do well. we're continuing to watch consumer confidence. let's face it, consumers are being bombarded with the world is falling, are we going to fall into recession? we think the fundamentals here and the u.s. are very good. the fed were to raise rates a couple times this year? >> well, our view is, listen,
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means the economy is doing well. if they do it gradually over time, we think that's not going to be an issue. if they do it, you know, rapidly and in large ste, that could be an issue. >> well, a struggle esoterically this week. people aren't buying cars like they used to. big drop in the number of licenses. got to be a worrisome millennial trend. >> we're looking at that data. it's true. millennials are waiting to get their driver's licenses. when i turned 15 i was down at the dmv getting my permit. >> you made e n of the guys, what's the matter, what's the matter? >> exactly. in terms of what does it mean for the market? it's too early to tell. there could be a more efficient use of the car park, true. you could also say there will be more vehicle miles traveled because the accessibility to having mobility with it there more, people will want it more. that could be good for the
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>> look, you can just keep on returning it. you can turn the balance sheet. you survived the great recessssn. you're in the best position from spending that was misdirected. you buy your stock back, keep raising the dividends? >> well, listen, everything continues to be on the table. this year we elected -- in the last two years or so we've gone back to our shareholders $6 billion. this year we decided to have a supplemental dividend because that benefits all our shareholders. that's important given the very large and diverse shareholder base we have. there's a time to be rational. that's mark fields, the president and ceo of the ford motor company. answered a lot of questions u're trying to figure out and so am i. stay with cramer. coming up, under armour athlete cam newton with a bold guarantee.
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nextxtear, year after thatat will be putting myself in the ranking. >> i've got my end. >> have you got your end? >> right here. relationship with the super bowl quarterback just ahead. lysol disinfectant spray kills 99.9% of bacteria on more than just the trashcan. it's the "pungent gym bag stink" neutralizer. and the "prevent mold and mildew on the shower curtain for up to 7 days" spray. it's also the "odor causing bacteria" fighter. and even the "athlete's foot fungus" killer. discover more ways you can use lysol disinfectant spray to help keep your home healthier. i take pictures of sunrises, but with my back pain i couldn't sleep and get up in time. then i found aleve pm. aleve pm is the only one to combine a safe sleep aid plus
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now it's time to perform. >> it started with a more technological t-shirt and has grown to include apps, equipment, and some of the biggest sports stars today. can underarmor stay ahead of the competition in the war of wearables and beyond. >> on a day when so many high flying growth stocks just got pummeled, let's talk about a goododne. under armour. the digital wellness company. we know isoing incredibly well. remember, ter months of the retail market, under armour reported a truly magnificent quarter. it's been crushed since then. earlier today we got a chance to catch up with kevin flag, the ultimate competitive chairman, founder and ceo of under armour. take a look. >> the year of the champions, kevin. how did you identify who were going to be the champions before they were champs? that's beethe number one question we've gotten. it comes back to culture.
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missy copeland, tom brady, now cam newton, carey price in the nhl, bryce harper in baseball. under armour has an incredible lineup. this has to be one of the most banner years in sports marketing. >> i start because isn't that some of ththsecret sauce how youou don't have to worry about it was 72 degrees, you don't have to worry about the right clothes. >> true. >> it's about ethos, it's about being human? >> it's about you've got to produce. i mean, our competitors, they're shooting three, four commercials and picking the one they like best after they go ahead and they focus group, look at it. we've got one shot and the shot better be right. i'm not saying it's right all the time. we've missed. we've certainly done that. you know, one of my favorite quotes is the harder we practiti, the luckier we getet. you know, we'll keep working on it. the athletes have a lot to do with it. there are some great stories. >> give me some cam. give msome cam.
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and we know him as a like what you u ach us. >> right. >> which is humility. >> right. >> and hunger. >> right. >> even though he's in the big game. >> let me tell people about cam. if the real cam newton happens, people get the true perspective. this is a guy every summer, he comes and trains and works out with the trainer. he comes to baltimore, he works at saga more house retreat farm. this year he brought all of the carolina panthers. january they lost a playoff game and after that happened he called h trainer, nate, he said, nate, i need you to come train me. what are you talking about? you had 18 weeks, 19 week nfl season you have to go rest your body. no, he goes, go rest. cam said, no, m not going to rest. he said, i want to train for the next three weeks so that my body knows what it feels like to play through a super bowl victory. like you talk about a champion or a winner. you know, this guy doesn't cam is -- like he is like he is
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he's an exciting athlete. >> he's kind of you? >> he's -- well, i don't know. he's got a big small and he's tall. >> they love him. >> a lot of personalaly. >> let's talk about the company because one of the things that i've seen from the time we met, i said you were a talent company, then a technology company that sells apparel. now i think you're a transformational company about health and wellness that happens to be digitized technology. >> i don't know, i think our story you'll see me always say, don't forget to sell shirts and shoes. in red ink in the middle of my office. reminds me every day. some of our story about connected fitness might have gotten people worried about it, are you still selling shirt and shoes. we're lucky to have this business and still growing at a 31% rate last quarter, 28% for the full year, 25th consecutive quarter 25% apparel growth, 23rd
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line growth. 95% growow in footwear. like every indicator from our women's apparel to our men's apparel to our youth, everything is up from our international growth. we grew over 80% the last two years. we are a growth company and within that we're absolutely -- we are a technology company. we're coming strong from changing the way athletes dress to now focusing beyond that we don't want to be a cool logo to changing the way athletes live. of course, our definitioioand aperture of what athlete is, that definition continues to grow and expand every day. >> we have an intersection that's a strange thing. you're a winner. all high growth stocks are losers. how do you train people not to focus day to day on a stock price that may not be indicative of how you're doing? >> it's controlling the controllable. celebrate our tenththear as a public company november last year. 30% average top line growth. 30% bottom line growth. winning is a culture. all we can do is point to that.
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out about us in the middle of last quarter. >> right. >> you're in a quiet period. >> do what i do. >> you're part of being in a public company and you bite your lip and you wait and say, you wait till they see what we look like now. >> right. >> we're very proud of the company. we're very proud of the results but, you know, you're also human. yo you are' realistic. that streak of 20 plus percent top line growth is somebody asks you, how long do you think you can keep it going for? we don't think in terms of when is it going to end. >> that is really important. >> question, can you believe what happened? can you believe where you are? we never believed it couldn't happen. why does it ever have to end? why can't we keep going? we look at our team the same way. the expectation isn't us competing against someone else in our existstg space, we want to be prepared sitting out here in silicon valley. what is it going to be if the silicon valleys started making apparel, before they start making footwear. before they juju in the game we're going to jump into technology.
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connected fitness is developing, not recognized by wall street. how can you -- that didn't really -- in the end we're saying he sells shoes which he can't beat niko. he sells clothes that are too warm. we have a holistic group of millions of people that identify with under armour bebeuse of connected fitness. >> right. >> is the story being told right? >> so a year ago i appeared on your show this month and i told you that we announced these acquisitions. we announced this community of 120 million people. that would create a math house. that's a digitization of our company. we'r'ra company like amazozo they credit 40% of their revenue to the recommendation engine. you bought a tube of toothpaste several weeks ago, it takes eight weeks. would yoyolike us to send you u new tube? they know a customer's purchasing habits. through our math house.
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>> we announced over 160 million users. weweave over 130,000 downloads occurring every single day. that means every eight days we're adding another 1 million people to our community that are voluntarily telling us how much they slept, what activities they did, how hard they did it, how many steps they took, what they ate with my fitness pal. again, last year alone we had over 2 billion exercises booked into our platform and over 8 billion foods. it's the world largest database of food ever assembled. what are we going to do with this data? first and foremost, we can use it to enrich our consumers lives better. we're understanding, meeting them where they are and building a product that answers customers problems and solves problems for people first and foremost but does it in a way thas informed and not wasting. what you'll see from shipping to fishing to the way under armour can create -- i think we can reinvent what the expectation of a sports brand can be. >> entire ecosystem coming. kevin plank, founder and ceo of
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quarter. they're gravitating towards the stock because of the high quality dividendames and a moment when bond yields are plummeting by the day and that's how you get a stock on the 52 week high list on a totally nightmarish day. we got to speak with the chairman and ceo of verizon who is a new england patriots fan. >> this is a super town where the super bowl is and you have built a super network which takes super effort. you're linked with the nfl. how did this all comomtogether for you? >> this has been like a car
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we've added hundreds of sites. the information kiosks are all network cell s ses at this point. the speed that we can deliver, the capacity that we can deliver has jumped dramaticalli. >> is this the templple for the rest of the country for the verizon foot work? >> yeah, it is. we use the super bowl as a way to test ourselves. you walk into lhe stadium this time, let me give you an example. in 2012 at the indy super bowl we did less than 250 gigabytes of throughput. this year ring the three hours of theuper bowl, 6 terabytyt. you know what that would be? that would be 25 billion posts to the "mad money" facebook page. >> there you go. let's talk about "mad money." you know it has beenenhe number one recommendation. i apologize to tim cook. i say apple own it, but i've felt dividends are the most important thing. your stock has been through
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how is it you are a growth company because it's the only one left? >> we've had to transform ourselves to being a tellco which has been a dividend stock. this year we bought aol. we think that can turn into a real growth engine for us. 15 is a person example for us. withstood all of the hits from the discount carriers and delivered good, balanced growth and profitability but we saw things like mobile video take off, internet of things take off. aol, i think, is going t tbe one ofofhose growth engines of the future. >> i'm looking at your three tier strategy, aol, internet of things. why not add yahoo. it doesn't cosl much. the company is being given away. >> if they are giving it away, we ought to talk. >> financial reports. >> we said on this show a month or so ago in december, we e id we would look at it. their board has been very
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logically. we have to understand the trends but then a athe right price i think marrying up some of their assets with aol and the leadership would be good. how has aol gone? a lot of times companies buy other companies and they get subsumed. this sounds like you're bringing it to the fore. yahoo could be a good fit. >> one of the things we did is keep it seserate from the core company. i want that to continue to deliver every day. we put this in an inc. cue baiter almost and we have been feeding the information n om our money subscribers into the aol engine. as you saw in the fourth quarter. >> fabulous. >> 300 million from quarter to quarter incremental revenue. we've only had it six months so i don't want to declare victory. we have a long way to go. putting more pieces into it like media, perhaps some things from yahoo! might make sense.
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special. >> apple, they started and the relationship that i think of is verizon apple. a new iterations. these iterations, how do you get ready for them? >> i have a great relationship with tim. goes back to when we negotiated the first deal. i think there's a lot of trust there. r example, on thingsgsike 5g which we're working on now, we go to apple and say, why don't we go ahead and install a cell site on your campus. let's experiment and then when we do that we bring new, innovative things to their rket. >> a lot of ceos mention your name as a guy they like. you're feisty. i have thehe50. i don't need all of those different channels. >> right. >> somehow switzerland and you're on the attack. >> i wish we w we switzerland in all cases.
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things a win-win. sometimes we are disrupting the model and it does break down. we always keep the communicatioio going. we have to disrupt. >> you're over theop. m verizon. i watch espn on my hand -- i have the apple. i mean, that is disruptive in its own. espn is disruptive to cable companies but should you have relationships with comcast, our employer on the stock end of it. you have relationships with people that i didn't think you could have relationships with. >> we don't always agree on everything. that's the key. >> right. >> you look at google. we partner with google. people say, how can you partner with google? they build fiber. they're not over building fiber on us and we see opportunities to develop fiber. >> you're wearing a winning jersey.
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is that okay? >> well, look, i'm focused on things like how do we bring smart technologies to the city of san francisco. i don't tweet so the discount carriers are going to take shots at us. >> on shark tank, i asked them what company they respect, verizon. apple says verizon. verizon is a utility. it's not meant to be cool. >> we don't think of ourselves as a utitity anymore. i mean, there's a part of that that's our heritage. it's a great company. we think we can build on it. if you look at the access that we have and the technologies that we can bring to cities. this example in san francisco, they can use that to become a smart city, one of the smartest cities in the world. we want to be their partner
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>> is the u.s. behind or ahead in technology? >> i don't think there's any queson that we're ahead. >> i'm going to leave it at that. chairman and ceo of verizon, vz. yes, my number one recommendation why growth, income, excitement. stay with cramer. olay regenerist renews from within... plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age...your skin never will. olay regenerist. olay. ageless. and try regenerist micro-sculpting eyeswirl. it instantly hydrates to plump and lift. let'u get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference.
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are you ready, ski daddy. the lightning round. dan in massachusetts. dan! >> caller: cambridge, mass., mr. cramer. thanks for taking my call. >> how are you? >> caller: sayg hello to all of you listeners. the stock is re. >> doing a great job. high multiple stock people don't like. it will come back in favor eventually. the forecaca is pained until thehe fourth quarter. charles in new jersey. charles. >> caller: jim, lpx. >> oh, geez, what a fine company. charles, you know what, they're selling all of these stocks. i would tell you louisiana pacific is making a comeback but i prefer, i prefer w why? because it yields 5% and you want dividend pro tension here. let's go to linda in delaware. linda. >> caller: jim, nice to talk to you.
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>> samam go ahead. >> caller: good to talk to you. >> thank you. >> caller: just wondering what your thought is on bb&t. >> did not have a strong arter. i wouldn't trade around it. there are others doing better. i have to tell you if you want a regional bank in that area, i prefer key or first horizon. can weake one more? let's s to tom in florida. >> caller: hey, cramer. boo-yah! >> boo-yah! >> caller: i wanted to ask you a question regarding ionas over former isis. >> okay, yes. this is stock -- this is stanley cook's company. here's the problem, they're all going lower. you have to be willing to take soso pain. i don't know if you can side step the pain or not. it might be worth it. good company. doesn't matter right now. that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: : e lightning round is sponsored by t.d. eritrade.
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you haha been watching our countdown to kickoff. i bet you've wondered how you can get a ticket to the super bowl. ticket master, you can buy legitimate ticke secondhand. to be fair, you better be willing to spend thousands of dollars if you want to attend the big game. we have an amazing opportunity here. we have the president and ceo of live nation entertainment. we'll talk to him. welcome back to "mad money." >> thank you. appreciate it. >> we checked, $920 for not good ones, 2800 for good, 20,000 for the best on your site.
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the right way to go instead of having a guy ask me if i have any extra tickets on the street? >> content has been trying to get ahold of those tickets for the last few years. if you're the nfl, if your a an artist or sports team, you're not doing well when they're selling on the street. most of the artists, teams have been trying to create their own exchanges, trying to operate their own exchanges so they can understand the data and pricing. in this case we have nfl exchange with them and,all of thatnformation and all o othat data gets fed back to the nfl so they can control and monetize the experience. >> is this the super bowl for the live nation, too? >> ticket master will do very well this weekend as people scramble to try to get into the weekend sunday show. i think right now on average $5,000 if you want to -- >> yes. >> -- get in there on sunday. so, yes, i'm sure the price will gogop over the weekend a athe supply is just incredible. >> you're much bigger than the super bowl. who can say that? you are the concert venue of the world.
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to be with lars this week. he said you used to do concerts to sell records. now he does records to sell concert tickets. that's part of the revolution that you've -- that really you've put into place. >> yeah. you know, this is our tenth public. ten years ago we had the same thesis that live was going to be the center of the wheel, the artist was going to have to go the road to pay theheills and build his community. if you look at it now, we're doing almost 25,000 shows, 41 countries and every day an artist wakes up and whether it's a brand new artist or they're the rolling stones, this he have to get on the road. the best way they can monetize their auence and connect with their audience and deliver their music. >> one thing i'm shocked about is apparently something that we do in is country does travel and is dominant. the countries that you have been to, national geographic at this point. >> it's a global business. one of t t things we're gifted in.
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if you're a 19-year-old lady any country in the world, you're on youtube and you're looking a the the new reannan album or cold play. we can bring all of these artists and they're superstars and we want to be in the streets of colombia or singapore putting those e ows on. >> use the metaphor of sports.com. been instrumental in doioi customom relations. both your stock and his stock under pressure. >> yes. >> unlike what people think, your company is making a lot of money. >> yeah. yeah. >> yes. >> yes. >> people think, well, we can't -- operating capital can't be trusted. >> market's a little crazy right now. our job is to keep building this business. we're going to have a recordrd year for us, cash flow, stock, ticket prices.
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top 2015. there's more concerts. we're selling more tickets than ever. we're going to continue to place great results. >> no global recession, right? >> no. as of this morning we've got the data. tracking ahead of last year on ticket sales. those consumers are still going to go to the two or three shows a year. >> october 29th conference call, we have live nation tv in beta with yahoo!. that sounds pretty exciting to me. how is the beta going? are we rolling it out now? >> one of our core businesses is we are the nfl in terms of advertisers. we have 800 advertisers. we have 63 million customers went to a live nation show last year. that is bigger than the nfl, the nba or the nhl. we do a great job selling 800 sponsors those events, but we had to make sure we added a digital component to it. had to have a media element. yahoo! and other ways we now
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live whether it's online or on a mobile app. we've been able to double or triple our online advertisg. >> you know the informatioiothat you can n rchase the merchandise that i want as opposed to spamming. >> yeah. we have the largest database in the world. we know exactly what show you went to, what your daughter went be to, what your wife went to. we can have a great one-to-one relationship. thanks to the platforms provided, we're really driving a per ticket show because of that one-to-one data. >> it'good to hear the sococl cloud is a ave and making money. mike is the president and ceo of live nation. one day you like growth stocks. you don't know, but you've got to learn them. stay with cramer. can a toothpaste do everything well? this clean was like pow! it added this other level of clean to it. it just kinda like...wiped everything clean. 6x cleaning my teeth are glowing. thth are so white. 6x whiteteng i actually really like the 2 steps.
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