Transcripts For CNBC Mad Money 20240713

Just because a deal gets done that doesnt mean it will make sense. The dow finished flat, s p advanced 0. 7 , we need to address the merger mania because this market was dominated by deals today. Both real and imagined before we get into the weeds let melee out my position for you. I love mergers and acquisitions. The higher the stock market goes and it reduces the supply of stock floating around and anything that takes out supply is good news even if its applied to buy backs, however, i dont love speculating on mergers and acquisitions especially when acting on a tip as always, i say tips are for waiters if youre not for sure a deal is coming, Accurate Information is illegal. If you dont know, then youre just gambling. My rule of thumb never bet on a stock because of the speculation, only buy a stock of a company with healthy fundamental. Any potential deal activity lets say thats gravy which brings me to todays action this morning david faber reported that xerox wants to buy hp ink with a combination of stock and xerox is an 8 billion business and hp is 29 billion business and in the current configuration theres no way that it can be pulled off its clear from the statement that hp issued this very evening, the offer they got from xerox is dead on arrival however, if hp wanted to buy xerox its a horse of a different color. If they join forces they could buy an enterprise, cherry pick the best salespeople cut costs. At the moment, hps personal computing business is thriving but printerers are not so hot. But still, they have a plan to trim the workforce and maintaining that hefty 3. 3 yield. First, hp got a new ceo. And he probably wants at least to kick the tires of his own enterprise before he makes a major decision second, hp is trying to go for higher growth models like 3d printing not more regular old printers which has become a commodity business while hp has some proprietary business it has the businesses that hp is moving away hp wants to be the leader in manufacturing digitization and this deal really doesnt further that okay, that said i dont think the transaction is that farfetched. About a year and a half ago, hb tried to buy xerox in january of 2018 at the time, xerox was exiting fuji film and giving them 2. 3 billion in cash with that out of the way i think a takeover is more likely. What do you do i would sell hp in the spring. I think it will have trouble hitting the numbers. Take those profits and plow them into xerox it has cash and the stock sells for nine times earnings. I see no harm in owning this one. Last night we started to hear that Walgreens Boots Alliance is thinking of going private. We have cvs on the show later today. Theyre seeing strength in prescriptions and also they acared aetna late last year. Why was it brilliant for cvs simple, they got away from the tepid sales from the front of the drugstore. Theyre in the competition with the death star, amazon and its pretty much a pure play, Old Fashioned drugstore chain which isnt enough to fend off the online poachers. They have better prices. You have another big store, not a lot of special features or prices for Something Like a costco or a walmart to say nothing of amazon. And so now we are hearing that theyll take itself private. Theyd be doubling down on the part of business that is getting hammered there i can think of worse decisions but not many of course, anything is possible. Companies do stupid things all the time ge did four in a row but if youre buying walgreens here, betting it will be taken private, dont hold your breath. Swap out of walgreens and swap into cvs finally, theres tiffany the Jewelry Store chain. One of the best run companies in the world wants to be bought roughly 15 billion. Let me be very clear thats not going to than dont get me wrong, i think it would make a ton of sense. This merger makes just its clear they should do it. Tiffanys would be part of the larger enterprise. Tiffany is worth a lot more than the brick and mortar i have been impressed with the ceo and if you havent seen the new designs i think youre missing out. Thats a terrific reason to go to the stores and do some shopping but its not much of a reason for tiffany to be a stand alone outfit, plus nobody knows luxury like lvmh. To belabor the point, tiffany is a good wide receiver, something for tom brady to hit around. The task is too big for tiffany to do alone so it would make a ton of sense for tiffany to get bought by lvmh as long as they offer a decent price i hope they can make a deal because its worth a great deal to both shareholders, tiffanys got the see the light here again, im pro merger because they reduce the stocks of the balanced supply out there. Lower the supply lower the prices the lockup on Insider Selling in uber expired causing more than a billion shares to be released. This stock has been a disaster but if uber can off load the ubereats Delivery Business to grubhub or doordash i think it would make a bee line from 26 to 36 and the stock would be acquired too doordash is private and you know what i mean. There are too Many Companies in the delivery space and it takes out a rival to benefit the entire industry. How about all of the cloud based marketing company, cloud based Cyber Security companies we need massive mergers to the stocks go i like the First Horizon iberia tieup bank. A very good example of two plus two making five. The bottom line, while mergers can be fantastic if you own stocks theyre miserable if you own the stocks that are poorly performing companies where youll be left holding the bag if nothing happens enjoy the fact were starting to hear chatter again but dont feel compelled to speculate. For the most part, thats a game ryan in alabama. Caller hey, how are you doing, jim im doing well, how about you . Caller im doing well. I have a question about Taylor Brands so theyre selling one of their corporate apparel lines and one of the distribution centers. To lower the debt. And theyre talking about cutting their dividend and using that money to potentially do a Share Buy Back program with all of this in consideration, do you think theres any more upside to the stock in the near future well, we have to be candid with each other. I think that Taylor Brands is one of those dying brands. Maybe it can bounce, but the fact is that i even struggled to try to figure out how to recommend the f corp here. I like colombia, and my condolenconenc condolences to mr. Boyle for losing his terrific mom. I wont recommend the apparel sector other than nike or columbia lets to gregory in california caller good day to you, kind sir. How are you . Im good. How are you . Caller i cant complain in the california sun, but my one of my favorite stocks really got spooked on halloween it was a pretty terrifying october 31st Earnings Report from acar doe libre. Its dropped 80 bucks and some more since then. I wanted to talk to you about that and see if i should consolidate, sell it if i should hang on it i did listen to the Earnings Call and it seemed line it may be one of the high growth flying stocks that got murdered. I agree with you. Look, i know there are people who cut the price target, a lot of the analysts got away from it the only time in town. And in the end its a stock that i think i have liked since it came public. Im going to stay and tell people to be in it lets go to joe in connecticut joe. Caller hey, jim. I love your show. Thank you caller youre the jack vogel of individual stocks. Jack was an amazing man, they thank you. Caller so one of your stocks i think it is one of your favorites but it had a little drop lately american tower. Yeah, i dont know. This is just pure profit taking. American tower is the classic name classic growth name. I would buy the stock right here we need more towers. Theres no doubt about it. 5g requires them i think this is a very good stock. And i thought, hmm, you know what if this one comes in, buy it it has, buy it theres a plethora of deals roiling the market some are super, some are miserable. Be careful of what side youre on on mad money, cvs offered a booster shot after reported the earnings beat, im sitting down with the ceo should you be hitching a ride with uber or lyft in this market and First Horizon announced the Second Biggest Bank deal of 2019 this week. Find out what it means for the stock and your portfolio when i find out whats on the horizon with the ceo so stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to dmeynbcomaon. Cc. M. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading whether youre or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Switch now and see how you could save up to 400 a year. And get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Look at the stock of cvs health run i have been a big believer in this story ever since cvs bought it for 69 billion a less than a year ago and then the stock got pummelled for months before bottoming out in if 50s today, cvs reported a phenomenal quarter. They posted a 7 cents earnings beat, higher than anticipated revenue, robust same store sales, clean beat and they raised the full year forecast for a Second Quarter in a row. All met or exceeded the expectations just as Ceo Larry Merlo predicted when we spoke to him in march and its still cheap, ten times the earnings still down more than ten bucks a peak a year ago. I bet it has more room to run and thats why its one of the biggest positions in the Charitable Trust dont take it from me. Lets speak with larry merlo, the ceo of cvs to see where the company is headed. Welcome back to mad money. Great to see you, larry. Have a seat. You know, we live in a what have you done for me market, but im going to reverse that. Tell me how you did it because once you tell us how you did, then im not as worried about the future because you have a great template now. You know what, jim its really a tribute to our 300,000 colleagues they believe in our strategy, our vision and theyre working hard every day to bring that to life and were seeing the benefits as you just talked about in the quarter and the outlook for the year. There are so many places to go here. I do want to start with the concept that a lot of people are skeptical about buying managed care company some of it because the democrats are into single payer, but this integration with aetna and the membership surge, something they like about cvs that you have much better membership gains than a lot of the companies. As we look at the challenges in health care today, yeah, were seeing the emergence of consumerism in health care. Yes. What we have been talking about as a Retail Health consumer and, you know, as we think about the opportunities in this cvs aetna combination the opportunity to make health care local, meet people whether in the community or in their home or the palm of their hand, how can we make health care more simple to access and navigate and our nor star is helping people with their best Health Outcome and lower cost. The Hub Initiative seems to be working i dont want to get too far ahead of us, but that can be rolled out nationwide, right jim, we are well on our way we piloted it in the houston market were now bringing that health up concept to philadelphia, tampa. Atlanta. By the end of this year with plans for 1,500 health hubs across the country by the end of 2021 what we have seen in houston is validating the beliefs in our strategy this Retail Health consumer and what we can do to help people on their path to better health. The analysts they know what the hubs look like for our audience which knows very, very retail oriented what is exactly a hub well, you know what, jim, its taking our cvs pharmacies and its repurposing some of what we call the front of store. More Health Related products Health Related services. You see an expanded clinic, the role of the Nurse Practitioner expands. He or she can treat 08 of what they can do and we talk about the growing incidents of chronic disease and the people arent following the care plans to achieve the best health. The role of the pharmacist expands to do more than just dispensing a prescription and then we have wellness programs, we have nutrition programs all of that with our health focus expanded while continuing to maintain elements of convenience that focus on, you know, the beauty, the personal care category. There are people, listen, jim, theyre up against amazon, amazon is buying a pill company. Amazon cant duplicate that. You know what, jim, innovation has become part of our dna. And our teams are doing a great job to identify is there any white space that we can that we can leave to be disrupted by others and you have seen us do a number of innovative things whether its Home Delivery you know by subscriptionti service. We can deliver by drone. Our teams are doing a great job in terms of working hard to meet the needs of the consumer. Now, i think that people have to recognize what is different between cvs now. I mean, i had my cvs i go to all the time, you know that. Its got food up front and look, i like that, its within walking distance of my life, but the store of the future wont look like that. Our journey began many years ago, think of 2014 which eliminated the sale of Tobacco Products we have gotten many learnings from that and what we heard from our consumers is help educate me on more healthy alternatives you have seen us do a number of things of introducing, you know, healthier snack food items more convenience items you know that really speak to that dynamic. You did you mentioned the tobacco and you pulled it. That hurt your earnings but didnt matter because you were changing your company to health care i know i have to talk about this because we were chatting about it before. Some of your work being undone by vaping . You know, we saw 95 million fewer packs of Tobacco Products sold across the country and there was a direct correlation between cvs market share and that rate of decline but unfortunately, especially with School Aged Children thats going the wrong way with this growing you know, concern with vaping. I saw some stats that 78 of, you know, our youth that are still in school, that, you know, have begun to vape will begin to use Tobacco Products before they finish high school we have to get our arms around that issue and reverse that trend. You have become a great spokesperson for health care do you think we can ever use your model to actually cut Health Care Spending you know what, jim, we are all confidence that confident that we have opportunities, again back to the north star of helping people on their path to a butter future. If you can engage the consumer, to engage them more, to make health part of their regular routines you do that with the right products and services. You know, we can and will improve Health Outcomes and when we do that well reduce Overall Health care costs. Were you surprised to hear some chatter about walgreens going private and all theyre doing is doubling down on the part of your store that youre always worried about. Well, you know, jim, certainly you cant comment on rumors that we see in the marketplace. But, you know, we are very excited about our strategy as you said we talked earlier this year. You know, it was on a piece of paper, but, you know, that vision, that strategy is coming to life in a meaningful way and what were hearing, what were seeing from you know our consumers, our clients, the payers is validating, you know that that strategy is in fact the right one. It can be happening at targets . You know what, target is an important part you know some of the things were doing with our pharmacists around what we call pharmacist panels, well be able to execute some of those same programs out of our cvs pharmacies within the target stores. Its been a Great Partnership with Brian Cornell and his team. Last question, people worry about the dividend they were saying you took on so much debt. I cant believe how much you paid down. Thats right. We paid down about 8 billion since, you know, we closed the transaction and, you know, we have a plan to achieve our leverage ratios in 2022. Get to the low three times and be able to, you know, begin to expand our capital deployment strategies. Well, the work you have done is admirable and terrific. Larry merlo, president and ceo of cvs health. This is a value stock with great growth stick with cramer. Man how can i deliver superior longterm results . It begins with a distinctive approach to managing money. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Normally stocks in the same sector trade together and stocks in the same Industry Trade almost in lock step. But every so often you get an abnormal situation that they take off in opposite directions like were seeing right now with uber and lyft. For months these two ride sharing plans were the poster children for everything wrong with the ipo market in 2019. Uber and lyft both became public in the spring with incredibly disappointing reaction last month, both started to rebound from the lows after initial flirt with lyft id be bearish on the two i wasnt sure to what to make of the legitimate bottom, and given that theyre the growth names that the market turned against over the summer, ultra fast growers that are a long way in turning a profit, i didnt care to speculate didnt seem worth it but if anything happened over the a funny thing happened over the past week, lyft reported a decent quarter and then uber reported an ugly quarter on monday. Now theyre moving in opposite director lyft is hanging in there and uber is breaking down. And when you take a closer look i think they could keep moving in opposite directions yep, im pessimist about ubers outlook. Theres no lyft eats first its worth noting that they were disentangling themselves when they reported in august the last time we got results from lyft it smashed wall streets expectations. With bountiful revenue growth, spectacular guidance including a narrower than expected loss versus last year and i thought maybe its not a glorified cap company. And lyfts stock jumped 3 the next day and it peaked why . Mostly i think its because uber reported a couple of days later and ubers numbs were much more mixed. The earnings were better than feared but the lesson of the last quarter is that uber is more complicated than lyft wall street doesnt like complication its not a pure play thanks to ubereats and freights and the food division, the uber freights, the freight business went down. Uber freight business did well but the rates went down for all freight. Now, the stock got hammered on the news, plunging from 43 to 33 and then the pin action dragged down lyft. Then both spent months getting hammered then uber rallied 18 . Lyft pole vaulted 24 . In this case, i think it was positive pin action from lyft pulling uber back up lyft went public in march and the lockup expired a month later. You had a massive quantity of previously restricted stock hitting the market but most of the insiders who wanted out well, they had sold they got rid of the major overhang then lyfts two Senior Executives spoke at a wall street event saying that the earnings before interest and taxes and amortization would turn positive before the Fourth Quarter of 2021. The analysts hadnt been dreaming of profitability for the next three years wall street has no patience for unprofitable growth plays but a growth name that has a clear path to profitability thats a different story so lyfts stock roared uber road the coattails which brings us to last thursday when lyft reported another excellent quarter. They had excellent numbers with a smaller than anticipated loss, 27 increase in revenue per rider. Managements guidance for the next quarter was extremely bullish. They raised the four year forecast and thats phenomenal look at this this is what youre looking for, right . Thats what im looking for. Heres how cfo Brian Roberts said, when we reported back in august i described the second sales quarter as exceptional and it was truly exceptional what about Cost Containment . As a percentage of revenue sales and markets was 16 versus 41 for the same period a year ago representing a decline of over 60 end quote. Wow. Roberts said they made it happen by quote taking advantage of the healthy market environment to reduce coupon incidents and drive operating leverage period, end of story i cut a huge coupon for uber, 50 off. Someone said i made a wrong decision in fantasy football and said you have been ubered. In short, lyft knocked it out of the park sure theyre losing money and they have gotten the costs under control. Now the sales are incredible however because the stock had run into the quarter it initially bounced 3. 3 im calling that profit taking now when uber reported on monday, oh, messy. Well, their sales and earnings were stronger than anticipated, both monthly active users and total trips were a little soft the biggest negative was the ubereats the online delivery service. Theyre in horrible shape and grubhub had a total meltdown after management said theyd earn far, far less as the industry is way too competitive and that the diners are promiscuous. Yes. Promiscuous diner. Dont get me wrong, uber is making major strides toward profitability. Management believes they can start breaking even in 2021. But the stock still got to obliterate yesterday down 10 after losing 4 today why . The lockup on the selling expired. They have 1. 7 billion in shares outstanding and a billion became tradeable today. Because its under water, they wouldnt sell it, oh, come on. They sell it when theyre going lower and buy it when its going up remember, lyft got obliterated over the summer. Although i was glad it didnt go down much more than it did bottom line its too early to go bottom line and lyft not only is it lockup expiration already in the Rearview Mirror but reported two terrific quarters in a row and thats why lyft is worth buying here. We should have them on the show, we like them but because of the lack of profitability, lets be clear, its just for speculation. Or for young people. Who use it and instead of buying cars greg in ohio, greg caller hey, jim, big columbus, ohio, booyah to you and go brownies. Why not, whats up . Caller i was wondering what your thoughts on the stock labongo health is. We like it, we like it a lot. I know it hasnt been that good. We were speculating if tim cook were in the acquisition mood, well, it would be a buyer of it but hes not still, i think its a good situati situation. Typically stocks in the same trade together but lyft is a buy right now, uber not so much much more mad money ahead. What does the First Horizon merger mean if youre a shareholder . Then stocks cant get any respect and im explaining with one why that is critical to the entire market you probably never heard of it and then rapid fire questions edition of the lightning round. Stay with cramer do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. After a lengthy dry spell we finally started to see Merger Acquisition again. On monday we learned that First Horizon is merging with iberiabank its not quite equals. One is 5 billion, the other is 4 billion after languishing for years the group began to rally over the summer and while First Horizon stock reported a solid quarter, this was before the deal was announced. Im intrigued with the combination so lets dig deeper with bryan jordan and learn about what it means. Mr. Jordan, welcome back to mad money. Thank you for having me back. People feel that the deal of mergers and banks is over, some are just too big to merge. You continue to find ways to grow through mergers tell us what this means for First Horizon shareholders. Well, this is pretty exciting for us as you know, we have been a one state franchise we merged with capital bank and expanded into the carolinas and now this creates a real southern power house. Iberiabank has a presence in louisiana, florida, multiple states across the southeast like alabama and georgia where we dont have a presence. And we created a tremendous franchise, strong presence in florida. High Growth Markets all across the southeast. And a Balance Sheet that gives us the capability to serve customers in new and differentiated ways. Now, how different are the two banks in terms of the different systems you have between Cyber Security or whether it be through the kind of programs that digitize, sometimes its easy to merge, sometimes its hard. How different is it . I think the systems will be relatively easy and the encouraging part to me is the culture of the two organizations are very very, very similar. We have similar go to Market Strategies and we have a Customer Partnership focus and with limited overlap we think well have limited impact on not only our customers but also our employees and customer facing folks im incredibly conscious of where you have moved to now is the other hottest area which is the louisiana and florida area youre already in the Fastest Growing market in the company, tennessee. Do you see an above gdp growth for the area you are involved in yes, we have strong Economic Growth in the south, the customer activity continues to be very good im encouraged by what i see not only in talking to customers but also what we see in Financial Statements and Balance Sheets. And one of the neat things about this combined franchise that iberiabank and First Horizon bring together is an above Market Growth rate were forecasted to grow in household growth rate 25 faster than the United States as a whole. So not only is the south strong today, we think were positioned in this merger to be even better growth rate for the long term. I keep seeing organizations move to your area. Particularly to tennessee. But of course because of oil and gas and how well people are doing in louisiana is amazing. I saw mitsubishi shifted the headquarters to tennessee. Alliance bernstein they moved to tennessee. It was noticed at College Game Day you can see that memphis is on fire. Tell me what about the great migration into your area of banking. Yeah, its fantastic not only for us as bankers but great for our communities. It strengthens the entire community when you have an end migration. As i mentioned before in conversations, look, it helps to have good or favorable tax policy good Work Environment and good, strong quality, high quality labor and an educated workforce. Not only here in tennessee, but the carolinas, florida, all across the south we have got a great opportunity to continue to attract in migration of business and talent and see strong, strong Economic Growth over the next several years. One last question and i know we spoke last you felt that maybe the fed had gone overboard. They have done the cuts that we both think are necessary positive signal . I think its a positive signal that they have cut and they have signalled a pause. They feel like in the communication that they want to see some more data i think the Third Quarter gdp data was encouraging as i said what we see from borrowers and the economy at least in the south it continues to look good. It will be a very, very good deal bryan jordan, remains my favorite Regional Bank mad money is back after the break. This is apple card. A new kind of credit card. Created by apple, not a bank. With a better way to track where you spend. A new level of privacy and security. Daily cash you get back every day. And no fees. Not even hidden ones. Oh, and if you happen to be somewhere that doesnt accept apple pay yet, theres this. Nice. Only one things more exciting than getting a lexus. Ahhhh giving one. The lexus december to rembember sales event lease the 2020 nx 300 for 329 a month for 27 months. Experience amazing at your lexus dealer. Are all nongmo,h for 27 months. Sundown vitamins made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Announcer lightning round is sponsored by Td Ameritrade it is time. It is time for the lightning round. Sell sell sell buy buy buy buy you hear this sound [ buzzer ] then the lightning round is over marie in arizona caller hey, jim, beau booyah i want to talk about thats my favorite of the defense contractors. I like united and raytheon, but this is coming down for no reason bill caller hi, mr. Cramer. I want to know where humana goes from here. I think this goes up. This is a referendum on whos winning in the Democratic Party and if its Elizabeth Warren people sell it i think right now the moderates are more in charge buy humana sam . Caller mr. Cramer, looking to make a decision in the Energy Sector and i love what do you think of kmi no. I know that rich kinder continues to buy stock i think both the c corp in the pipelines are losers unmitigatedly negative on them danny in new jersey. Caller whats up, jim . Not much, how about you caller im doing great im calling about the stock farfetched limited. Man, thats not that good another power play you know no wire not going to go there these are i dont care if its online or not how about nick in florida. Nick caller khc. Everyone is its back and its bigger than ever but me i say sell out because this has got 2340 growth how about richie in ohio caller jim, how are you doing, sir im good. Caller im a big fan probably my fourth time calling. There you go. Caller i lost counter. Im a big fan of data centers. I wanted you to shed some light on switch. Switch is good. I like cyrus one i mean, look, i like the Data Center Business but if you look at what i like about the Data Center Business i also like growth and i like yield. And, you know, i dont see it with switch. They dont have it lets go to joe in california. Joe. Caller booyah from southern california. Nice to have you. Caller first let me thank you for your help in the in letting us being understanding of the markets and then thank you caller i have a question on u. S. Dr. You have to get an infrastructure bill to like that stuff. I thought wed have an infrastructure bill and it hadnt happened. Katherine in new jersey. Caller hi, thanks for taking my call. Of course caller the stock im calling about is an ali. Its a high yielding thing. Im going to say absolutely not. Absolutely not lets go to nick in michigan nick caller hey, jim, how are you doing . Good. Caller do you think the aurora is on discount no, because theyre under pressure and they get completely whacked. Playing whack a mole with one of these. Lets go to rich in florida. Rich caller yeah, jim, this is rich from nepal, florida i have watched for show for many years. My question is about microsoft its it seems to be in the holding pattern. Yeah, remember this has been the great stock of the era it is doing what i call continuation pattern i think the longer it stays up there the better that ladies and gentlemen is the lightning round. Announcer lightning round is sponsored by Td Ameritrade this piece is talking to me. Yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu are all nongmo, sundown vitamins made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow the amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. When will this market stop punishing the cloud stocks lately it feels like nothing the companies can do is enough for this market. If they reported a good quarter, nobody cares, if they missed good numbers then theyre toast. Consider the cloud based digital platform that we have mentioned a few times before and hub spot is one of the standout performers it was at 83 bucks and then it was north of 200 last night it sunk to 151 and today it got beaten down to 145 what happened . The company did report a terrific quaet quarter they beat expectations and they actually have earn earnings when wall street was only looking for 24 cents better yet, the forecast was raised three months ago before the cloud stocks went out of style. This would have been a picture perfect quarter and the stock would have shot higher rather than going down 6 bucks. These days the cloud stocks are no longer fashionable. So investors look for the slightest imperfections to give them an excuse to sell and the ceo gave you what he gave you what yount the want to hear he gave you disappointment i felt like we had a solid quarter, 33 growth was really good and solid it could have been higher and the reason it wasnt higher wasnt macro uhoh. That does and sound good he goes on, quote, i think the reason it wasnt higher was more execution on our side. Earlier in the year, hiring, we fell behind and thats rippling through, end quote, ouch it gets worse. Quote, the other thing is just we had an outage back in march and that was kind of a big deal like we talked to a lot of customers about it really impacted them and we take our responsibility very seriously end quote. I mean, thats why hub spots guidance was weaker than expected why should we care about hub spot why does this matter i bet most of you had never heard of it until just now its kind of an outfit you only know if youre in business with them or some sort of Momentum Fund but a good reason for you to care. See, hub spot helps to find new customers and expand these clients tend to be small, medium sized businesses. If you go to the companys website, they have highlighted a person in rock roll hall of fame and they brought in more visitors it brings us to the real problem here i can think of a dozen outfits like hub spot. Do the same thing, off the top of my head fast growing cloud based companies with momentum stocks and each has a half billion dollars in sales if you hire hub spot i bet they do a great job although they did have that major outage over this year and that might not they may not have enough salespeople, you know, if you get salespeople you need a stock continuing to climb all the time but heres the question. Who the heck even needs Something Like this 6 billion company in your portfolio . After listening to that Conference Call i know i sure dont. Plus, in fairness, hub spot has a horrible chart and many momentum traders the ones who are willing to buy the stock theyre chart followers. After the Conference Call its too easy for momentum traders to dump hot spot and go into adobe. Two days ago they held an analyst meeting. They were very, very bullish, good guidance. The stock is a heck of a lot cheaper selling for less than 30 years this times earnings and hub spot is 89 times or swap into salesforce or ring central or 59 they sent the stock up almost 9 sure these are different Cloud Companies when you get granular, but all part of the same turbo charged growth cohort. I would say theyre all the same thing. At the end of the day, we have a glut of Cloud Based Software spots like hub spot and that makes them all tough to own. After that quarter who needs it . Definitely not you in your portfolio. Stick with cramer. Take control of your financial future with the new mad money. Cnbc. Com and even your own sound board plus access to mad money 101 to break down the market for all investors. The red flag that makes me drop a stock. Its everything you need right when you need it the new madmoney. Cnbc. Com. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant tell him were flexible. Dont worry. My dutch is ok. Just ok . This man is very bendy. Tell him we need this merger. He says he needs a hug. Its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Tough night for expedia. The Online Travel area has gotten very tough. Im just not sure i can recommend anything in that although i did think that marriott which is brick and mortar travel was better theres always a bull market somewhere and i promise to find it for you right here at mad money. Im jim cramer see you tomorrow narrator its been 10 years since shark tank ignited americas entrepreneurial spirit. And we are still blazing a trail. For those who take their fate into their own hands by working hard. Sproing is the next big thing in fitness. Whoowhoo narrator . By working smart. This is gonna be the numberone item on baby registries. Who thinks of these things . Thats smart. Narrator . By thinking big. Moki doorstep is here to give you the boost you need. Narrator . And chasing their dreams. How long you been watching shark tank . Since i was about 8 years old. [ laughs ] wow within months, youre gonna see knockoffs on this. Theres a real need for it on the market. Weve got about 2 million of our own money into this. Wow wow its a dog. Captions by vitac narrator first into the tank is a product