Number came in soft enough to illustrate that inflations finally running out of steam so when the c pichlt came in around 3 way down from where it was before we all cheered. Many people bought stocks. Everything was fine, right wrong. That rally was a totally revolting development. Sure enough the averages spent the rest of the session selling off dow finishing just up 53 points while nasdaq advanced minor. A far cry from that yoef heated opening. Theres so many reasons why it was a mistake to buy stocks this morning. Because ive been spending this whole week teaching you how to avoid the kind of mistakes that make you give up on the entire stock market were going to unpack this one. Unpack it good mistake number one the vast majority of people who follow the stock market closely were predicting that the Consumer Price index would be up around 3. 3 . It was actually up 3. 2 . Take note. When most prognosticators predict 3. 3 inflation and yet 3. 2 inflation, guess what its not a surprise. And dont buy stocks aggressively on a data point thats not a surprise. Thats right never buy into a phony surprise that the media hypes up for a faux bit of excitement you will most likely lose money. Second mistake if you buy stocks in this kind of bogocity will you please use limit orders dont use market orders. Pick a price you want to pay and put it in. If you use a market order youre at the mercy of your broker and the clowns who buy the stock futures with reckless abandon, they will end up causing you to get a crummy price probably the highest price of the day. Those who did it, you did what we call top picking. You can bet that almost every Single Person that use aid market order to buy a stock this morning is now down in trades and they probably want to sell everything and get rid of their stocks because theyre so mad at themselves for paying up market orders put you at the mercy of an you unmerciful market stick with limit orders and you wont wind up radically overpaying for stocks. You might miss them but thats okay i dont want you doing this and then throwing your stocks away third mistake instead of buying in an up opening like today maybe you should think a little. Maybe you use these moments of strength to look over what you dont like and sell sell sell sell sell. Maybe a pharmacy stock, an oil stock thats been straight up for days as some of them have been you should offer that stock up, again, put acheting a limit ord thats nicely above where the stock closed the day before. Thats what youre always looking for. Remember, you want to sell into strength and buy into weakness, not the other way around thats not the way its done finally, when you get the inevitable intraday selloff that i predicted in our morning meeting show at 10 20 when i speak with jeff marks for the investing club you need to do some serious watching for when the tide starts going back out almost all the stocks that got taken up at the opening went down because there was nothing grounding them to begin with just futures buying. But if you can find a stock that actually starts to go higher into the wave of selling, if the future buying ends ive got to tell you something that will be a winner. Today we had a textbook winner all aboard walt disney when almost all the other stocks were in retreat from their highs, disneys stock slowly step by step, inch by inch started to advance whenever you see that kind of action you know Something Specials happening because this is a stock thats able to defy the gravitational pull of the average after being cut in half the last couple of years now, i know this is not a trading show far from it. Im almost always rallying against shortterm traders its almost impossible to pull off unless youre trading at a fulltime job. And im not doing this show for fulltime jobbers. But before i got the show i did have 25 years of trading and thats when i learned this simple rule. Look for stocks that can become buck a strong future selling trend. If they can withstand that kind of selloff, that tsunami selloff, there might be Something Special going on there youve got to focus on thats exactly what happened today with disney. Disneys stock could buck the trend and finish up almost 5 because a bunch of good things are finally going on there first, ceo bob iger delivered a quarter that actually looked pretty bad on its face in fact, the stock got hammered down three bucks on the headlines. But to be blunt about it the people who were selling disney were being morons. Disney does not have some sort of buffoon ceo at the helm igers a seasoned veteran whos created a tremendous amount of value over the years and if theres one thing he knows how to do, its tell an electric story so you need to wart for him to speak on the Conference Call is and those who didnt wait missed out on a fabulous run shame on you he talked about better disney plus prices including some price increases, the possibilities of some initiatives to get rid of the pain of televisions decline and future fall. Fill up the cruise ships best of all, the balance sheet, its no longer in tatters. Theres some optionality not long ago i felt disney was cornered far from it. The stock started to rally as the calm went on largely i believe because iger knows what the heck hes doing. He was actually pretty funny by the way as the q a went on i know owning the stock has not been fun the house of pain some plight have found it hard to take the humor i on the other hand found it reassuring many ceos would be shaky, theyd be tense, they would even be brittle after such a hideous decline that this stock has had. Iger sounded in control. I think thats why the stock was able to mount a rally right into the teeth of the pullback in the first hours of the day the selloff was indeed like just a storm, which meant there was a huge amount of pressure on every stock. To be able to buck that storm pressure there had to be a tremendous amount of buying power. Buy buy buy a sign there will most likely be buyers at lower levels if disneys stock ever comes in again. I like that trampoline underneath it almost always portends good news from the analyst community. When they see this kind of action they say to themselves this stock is saying finally the worst is over id better upgrade or go to hold from a buy how do i know this ive worked with analysts for years and theyre loath to call bottoms themselves they like to wait until the market calls the bottom for them thats what i believe happened with the stock at disney today but lets go back to that feeling of being picked off by the markets opening when you see a huge up opening off a stupid phony surprise youve got to remember that doesnt change the prevailing trend of the market. Right now the prevailing trend is to sell the big capitalization techs thats still going on. And buy smaller stocks or industrials with aerospace exposure particularly or stocks of companies that right now do business in china because the chinaees government is back allowing tourist groups again. I can tell you that when you see the techs rally as part of a Group Opening thats going to produce a rout later in the day when the market changes direction. And then you use that rout to spot brand new spanking winners. Winners like the stock of Walt Disney Paul in new jersey paul caller booyah, jim. How are you . Jimmy chill is fine dont like the weather whats up with you caller threetime caller and a very happy club member yes thats what i want caller i want to thank you and your staff ive learned so much from the club its definitely making a better investor i appreciate it. Oh, thank you very much thats what we want. Thats why we do it. Caller awesome the past couple nights youve been talking about pipeline companies. I have a Small Holding in Kinder Morgan ive had had t. A while im in the green it pays a nice yield but its kind of stuck its not one of my favorites. I had one oak on the other night. I thought that was a better stock. And ive got to tell you i think enbridge is another stock and i cant believe im about to say this but im going to say it energy transfer. Yes, e. T phone home is a better stock than Kinder Morgan sally in New Hampshire sally. Caller hey, jim. Sally caller boeings been around for a long time. When are they going to reinstate their dividends . Well, boeing is safe. Boeing is good cramer doesnt own boeing for his Charitable Trust and feels awful. Got cowed when it stayed down for so long. That was a mistake but a very nice club member earlier paul said hes thrilled with what we do in teaching. Heres some teaching i blew out of boeing too early, swapped into Aerospace Plays listen to me, i can tell you when you see the techs rally as part of a group like that in the opening that could probably produce a rout but in that rout what you can do is find winners and the winner is the Walt Disney Corporation on mad money tonight we know this ftc isnt too kind to mergers but i spotted one that present aid buying opportunity that nobody really likes then the espn penn entertainment deal sent shares of draftkings sharply lower. Are investors getting a buying opportunity in the online sportsbook or will disney and pend entertainment annihilate them ill give you my sense of the situation. And Ralph Laurens stock pulled back after earnings. Are investors finally getting a chance to buy the im going to dig into the story with the ceo. So stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer hashtag mad tweets send jim an email to madmoney cnbc. Com. Or give us a call at 18074cn03bc miss something head to madmoney. Cnbc. Com. The citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] nice footwork. With the citi custom cash℠ card. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Ive spent a lot of time talking about the mergers that have been blocked by the biden administration, which has taken an insanely tough line on antitrust enforcement. Especially the ftc but tonight i want to highlight a deal that actually managed to get approved the big defense contractor l 3 harris got permission to buy Aerojet Rocketdyne for 4. 7 billion. This deal was nunsd last december marking the end of a twisted saga for the storied rocketdyne which makes Propulsion Systems mainly for the pentagon, nasa and key u. S. Allies way back in 2020 this Company Originally agreed to be acquired by lockheed marnlttin for 4. 4 billion. But the deal was challenged by other defense contractors raytheon and others on antitrust grounds. The government was receptive because Aerojet Rocketdyne is the only independent producer for rockets and miss new zealand this country when the ftc sued to block the deal in early 2022, lockheed saw the writing on the wall, immediately threw in the towel so you can imagine wall streets attitude when l3harris tried to buy the same darn company less than a year later. We know there were multiple rounds of requests for information from the ftc along with outside pressure from senator Elizabeth Warren from massachusetts who very much wanted to shoot this merger down ironically even Lockheed Martin the last company that tried to buy aerojet objected to l3harris buying it on antitrust grounds but unlike lockheednese these guys had a strong argument whole time for why their acquisition would not be anticompetitive. Theres no overlap aero jett rocketdyne makes rocket engines l3harris doesnt they dont even do business with each other and thats a lot more than lockheed could say as theyre aerojets largest customer ultimately regulators allowed the deal to happen because even lina khans federal trade commission needs at least a ina of an excuse if theyre going to take action and in this case they didnt have a fig leaf. The transaction goes through i bring up all this history because it sure seems like it would have been a gigantic win for l3harris a company ive liked ever since it was create bid the merger of the old l3 technologies which i also liked for a long time, and harris corporation. This company made no secret of its desire to challenge the big five defense contractors and thats lockheed, raytheon, rtx as theyre known now, boeing, north rohm grum sxn General Dynamics l3harris makes all sorts of electronics, communications equipment, all hightech stuff think ibt graited mission systems, intelligence reconnaissance, space, avionic, electric warfare, precision engagement sensors and drones. The Aerojet Rocketdyne purchase gives them a Growth Engine with respect to areas that have gotten a huge boost from the war in ukraine like javelin missiles i think its a big positive. The stock sure doesnt agree with me, doesnt trade that way at all in fact, the day after we learned the ftc wouldnt block the deal l3harris saw its stock fall more than 6 , although some of thats earnings related this is just the latest leg down for a stock thats been trading steadily lower since the spring of 2022 when it peaked not long after russia invaded ukraine whats going on here all right. Why dont we start with the longerterm underperformance i think l3harris has seen its stock lag behind the Defense Group because it lacks highly visible contributions to the war in ukraine theres still lots of their technology on the battlefield, especially hightech radios and antidrone rocket systems. But for the most part l3harris makes products that operate behind the scenes. You dont see them communications equipment, electronic warfare, avionics its just not as visible or dramatic as shouldermounted missile launchers or even drones the additional of Aerojet Rocketdyne changes that. Their solid rocket motors are used in the javelins, stingers and guided missile launched rocket system weapons that get so much press. In fact, in april the pentagon invested 216 million to expand and modernize Aerojet Rocketdynes manufacturing facilities precisely because they want to boost production of critical components for extremely necessary Missile Systems. However, before the deal closed, when we didnt know whether it would go through i think it weighed heavily on l3harriss stock. There was serious doubt if the ftc would ever let it go through. Not this ftc, satellite in fact, on the day after the acquisition was announced two analyst downgraded l3harris from buy to hold and the stock tumbled this has been a really underperformer many of the things that held the stock back got res ovltd the moment the deal went through the results have more to do with its Earnings Report which came out the same day aerojet got the ftc blessing the stock fell a hideous 6 on the news but ive got to till i think the quarter was all that bad. Management raising the fullyear forecast, clean beat and raise unfortunately they raised their revenue forecast by more than they raised their earnings forecast, raised revenue more than they raised earnings. What does that mean . It implies that the margins are going to be lower than expected. Wall street hates margins going down personally i dont like weaker margins if theyre accompanied by really stronger earnings. Plus management has previously said they expect the profitability to improve throughout the year. As they get past some lingering supply chain issues. I believe them so heres how i see it l3harris has been a good solid defense contractor ever since the old l3 merged with the old harris roughly four years ago. I met management, i really like them i like whats going on for most of the time it was a terrific stock to own. But when the defense stocks roared last year l3harris got left behind. Largely because it doesnt have any standout Weapons Systems that make it an obvious way to play the war in ukraine. The Aerojet Rocketdyne deal it changes that while the stock sold of oon the initial news of the ak wiztion thats only because Money Managers assumed the transaction would get blocked. When the ftc let it happen without a legal challenge that was good news for l3harris even if the stock hasnt traded that way. So whats happening . I think youre getting a chance to buy a highquality company at a nice discount to its average valuation. Think about this over the past four years l3harris has sold and remember, we always have to look for price to earnings multiples. This sold for 17 times earnings on average but now it sells for just 15 times earnings thats a bargain meanwhile, even without Aerojet Rocketdyne theyre putting up some solid numbers but the bottom line here in this very strange story about a company i really like, the addition of Aerojet Rocketdyne l3harris now has a powerful Growth Engine thats involved in some of the hottest areas of the Defense Space like modern Missile Systems that are vital to the war in ukraine. Thats why i see a lot to like here in this and why id be a buyer of l3harris right here the markets making a mistake in my opinion and thats your opportunity because in the longer term it will become quite obvious that this stock is just way too cheap versus the rest of the Defense Group. Mad money is back after the break. Announcer coming up, the competition in the bedding space has gotten a lot fiercer this week can draftkings keep up with the cohorts new juggernaut . Stay tuned my cpa told me i wouldnt qualify for the erc tax refund, so i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. This is dr. Arnold t. Petsworth, hes the owner of petsworth vetworld. Business was steady, but then an influx of new fourlegged friends changed everything. Dr. Petsworth welcomed these new patients. The only problem . More appointments meant he needed more space. Thats when dr. Petsworth turned to his American Express business card, which offers flexible spending limits that adapt with his business. He used his card to furnish a new exam room, and everyone was happy. Built for dr. Petsworth business. Built for your business. Amex business. Eat pretzels. Eat more pretzels. Watch movies. Watch more movies. Get airline miles. Get onekeycash. Book inapp to earn onekeycash on top of your airline miles. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Two days ago penn entertainment, the big gambling company, announced the termination of its Longstanding Partnership with barstool sports and then a new collaboration with disneys espn theyre even rebranding their digital sportsbook as espn bet penns paying a lot to disney to make this happen but wall street clearly thinks its worth it given that penn shares shot up 9 yesterday now, last night i got a chance to speak with penns ceo jay snoweden and while im not sure how this will play out for his company, i do think its great news for disney. Another reason why i feel strongly about the stock as i said at the top of the show. Tonight, though, i want to talk about the pin action from this partnership. The moment we learned penn was joining forces with espn the stock of draftkings saw its former red hot equity get put through the meat grinder its pulled back from 31 and change to 27 and change like that in an instant, which is stushl i know the stock was trading 11 at the end of the year, but this things been a rocket ship and now the rocket ship has just crumbled and i think has ridiculous dont forget, when they reported a week ago they didnt give us a good quarter, they gave us a spectacular quarter. Phenomenal the stock surged 15 on the news although it got dragged down by the ugly tape friday finishing the day up just 6 but this is a tremendous story in each of the first three weeks of this im sorry, in each of the first three days of this week weve woken up to an analyst upgrading draftkings the stock tried and failed to rally in response on monday and tuesday. Then on wednesday after the penn entertainment espn news the stock simply got clobbered no one could take it before losing another 1. 8 today. People think this things terrible now i dont think that way i think its a buying opportunity. Let me tell you why. First we know how draftkings is doing. They just reported a stunning quarter. And now youre getting those numbers not just for free but for a big discount while they are headed right into their sweet spot, which is the nfl season the betting season while their monthly unique payers, basically active users, came in even with expectations, up 44 year over year, their average revenue per month of unique payer was much stronger than anticipated up 33 year over year. Thats my favorite metric now. The combination of 44 user growth and 32 average revenue per user gave you a monster good revenue beat they actually had record quarterly sales, which is impressive because usually its the Fourth Quarter thats when its unparalleled because theyve got the whole football season. This one didnt really have anything like that in the end draftkings saw its Revenue Growth accelerate from 84 in the previous quarter to 88 this time. Look at those numbers. Theyre amazing. Its incredible. And you know why because theyve got the best app. That is in the end this is a technology business. Its incredibly easy to use website that keeps bringing people back and its fun on top of that draftkings raised its fullyear forecast yet again and gave us great guidance on the allimportant Fourth Quarter too. But you know what . Those magnificent revenue numbers werent even the best part of the story. Like every other wellrun Growth Company draftkings has spent the bulk of the last year pivoting toward profitability late last year management said theyd be turning a profit for the Fourth Quarter this year unfortunately they paired that prediction with ugly earnings before over the course of the year, though, draftkings has reported strong ebidta numbers last week we even learned they had an ebidta profit and that really is the way to look at it, ebidta of 73 million for the Second Quarter analysts were looking for 20 million. They did 73 million. They delivered their efficiency quarter of adjusted profitability six months of ahead of schedule, also raised their ebidta forecast for the Third Quarter in a row remember that is the key profit met rack were looking for and thats why the stock initially surged in response to last weeks Earnings Report. Since then weve seen a lot of profit taking that only got more aggressive when we learned that penn entertainment is joining forces with disney which people think is going to destroy draftkings come on. Draftkings sold off especially hard because they have their own partnership with espn. I guess some people assume that relationships now in peril even as i think draftkings is in the catbird. Let me tell you why. I dont mean to be dismissive but let me tell you why i am not worried about what could be an unraveling of the deal the draftkings espn partnership is actually a marketing deal where draftkings has the semiexclusive ability to advertise on espns programs and website but it goes both ways because draftkings is also committed to spending a certain amount of its advertising budget on espn. Its not clear whether the deals even been working out that well for them in fact, id argue that their marketing deal with espn is a distinct negative for draftkings that doesnt bring in the customers they expected. They made this deal in 2020 when their focus was on generating Revenue Growth at all costs. Now the goalposts have shifted and the Company Needs to deliver profitability first. Even if disney decides somehow that they went out want out of the deal im not convinced it would be a negative for draft kingsz, it would be another reason to buy. And i think it would be good if draftkings could pull out of it. In fact, one of the smartest reactions ive seen to this weeks Online Gambling news came from carlo sapt ntorelli hes from deutsche bank. He argues penn espn could be good news for draftkings because it means they can get out of that espn contract deutschebank describes that deal as a quote absolute anchor they dont need to spend so much money acquiring new customers. They have other ways to do it that are better and cheaper. The whole penn barstool espn episode makes me want to take a step back and look at the sports gambling industry as a whole and when you think about how things are playing out its clear there are very few major winners in the space actually, theres really too fanduel, which is owned by Flutter Entertainment plc, whose shares are listed verseas, and draftkings thats it. Duopoly. When you look at the market share data fanduels in a strong first place, okay . In most mature markets draftkings in solid second place. Nobody else coming near. It would be great. I like penn. Maybe penn can go up in the ladder but draftkings is very far ahead. Now, penn does seem confident that their new espn partnership will help then grow market share. Maybe it will. But draftkings already has tremendous market share. They dont have a problem bringing in new people right now what they care about is monetizing those people effectively. And theyre very good at that. Last week we learned theyre making huge progress on the profitability front. While many states still dont allow it bottom line with draftkings pulling back nearly 20 from its postsaernings high after an amazing quarter, youre not only getting their staggeringly positive Second Quarter for free, youre also getting the stock for an extra discount over this pennespn tieup that doesnt hurt them in any way i can see. I like draftkings and i think youre getting an incredible buying opportunity of the stock after the companys gotten religion and is making a ton of money. Mark in new york mark caller hey, jim. I want to give you a levy family booyah. I like that a familial booyah has always paid off on our show whats up . Caller i want to ask you about roblox after reporting earnings yesterday it got hit pretty hard i know recently they had chainsmokers concert experience inside of roblox and last month they released roblox open beta for the meta quest 2 headset could this be an immersive experience meta was hoping for im going to say this to david because yuuki because i know hes watching the show and hes a good guy. Start making money im not recommending stocks of companies that are losing so much money make money, i recommend. Dont make money sell sell sell i like draftkings and theyre i think giving you an Incredible Opportunity because theyre making money now. Much more mad money ahead including my exclusive with ralph lauren after declining to raise full year guidance is the company practicing what i call underpromising and overdelivering then investors are sick of hearing laser focus but theres one use of the term i actually find enticing. Ill reveal what it is and how it can help you make some money. And all your calls rapid fire in tonights edition of the lightning round. So stick with cramer hows the chicken . The prawns are delicious. Oh, i have a shellfish allergy. One prawn. Very good. Did i say chicken wrong . Tired of people not listening to what you want . Its truffle season ah thats okay. Never enough truffles. How much are they . Its a lot. Oh okay im good, that its like a priceless piece of art. Enjoy. Or when they sell you what they want . Yeah. The more we understand you, the better we can help you. Thats what u. S. Bank is for. Huge relief. Yeah. New natures bounty hair growth. Clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. Conquer hair thinning. And fall in love with your hair all over again. Only from natures bounty. Okay what the heck just happened to the stock of ralph lauren . Unlike the rest of the apparel stocks this ones been doing very well for 2023, at least until it started pulling back. And today we found out why, i guess. This morning ralph lauren reported a quarter that wall street was unsure of but the stock finishing the session down, i say weirdly, 5 . While the headline numbers were solid in line revenue pashd with a nice earnings beat the guidance for the quarter some thought was soft and management declined to raise their full year forecast. Plus their north american sales came in weaker than expected i say that compared to the rest of the apparel space including the two that merged today, capri and tapestry, these numbers were pretty darn good even great comparisons but apparently the market disagrees with me. Thats okay. Then again i think a great deal of the pullback has to do with investors looking for any reason to ring the register because there have been good gains here. Has the stock come down enough to make it enticing . Lets talk with Patrice Louvet hes the president and ceo of ralph lauren to get a better sense of the quarter. It is an honor to have you down here at the New York Stock Exchange jim, great to be here thank you, patrice. Now, i think a lot of people dont understand the way apparel works. There are certain iconic brands that when their stocks go down it gives you an opportunity because there are things like average unit retail we can look at we can look at quiet luxury. We can look at drive the forecast, expand for more. These are not just slogans at your place this is real stuff and it works for time, for many, many years so i want you to explain to us why you think this is not a bad time at all to own ralph lauren. Absolutely. Well, its wonderful to be here. We were really pleased to come in ahead of our commitments both on the top and bottom line in what i think youll agree with me is still a relatively volatile environment unfortunately, yes. But what were seeing is our strategy of elevation, elevating the product, elevating the consumer experience, elevating the storytelling, continuing to play out and you mentioned it our u. R. Was up 15 this quarter. Weve been raising u. R. For several years. The consumer is seeing the value. Our value perception has never been this high the consumers telling us that our luxury perception is the highest its ever been and i think the combination of this iconic brand that we have thats very differentiated from any other brands that you have in the industry and the diversity of our Growth Drivers positioned us really nicely both this year and for the long term. I dont want to be too anecdotal because you and i were empirical thinkers but jennifer lopez, taylor swift, joe biden at the coronation these are people you did not pay taylor swift to wear ralph lauren. Thats absolutely right and there she is. You did not pay jill biden to wear absolutely not. I think its all about desirability in this space that is the key operating word in the industry. And i think as you look at the people that actually want to wear us. Beyonce opening her washington, d. C. Concert wanted to wear ralph lauren so we areappealing to a very broad range of individuals and consumers. And whats very exciting is we go all the way from that newborn all wait to the silent generation and to your point were seeing people from all generations wanting to wear ralph lauren we have to say wall street did not like north america i question wall street on this because the fact is that your inventories are lean, which means you have Pricing Power it is obvious you can raise price but not necessarily because youre trying to keep up with inflation but because people like the brand so much. But what am i missing that wall street thought was wanting with that north american number i think obviously the guidance we provided for q2, which was conservative it was conservative slightly below what people had expected frankly i think its important to look beyond one quarter theres a lot of volatility right now. Theres a lot of uncertainty across the channels. What we feel really good about is our core consumer, which you know is a more elevated consumer, is resilient youre looking sharp were bringing in new consumers that are younger higher value consumers. That positions us really well moving forward our product strategy thats driving both the core and expanding for more is resonating whats actually really interesting right now if you look at Consumer Behavior in the u. S. And around the world, you mentioned quiet luxury yes consumers are moving back to quality, timeless style l listen, you know this company very well. Those are key words that represent what ralph has built for the last 56 years. Right consumers also shifting their wardrobe away from the covid times. Youre wearing your tie today. Right to more sophisticated casual. Chinos, oxford shirts, dresses suit separates thats at the very heart of what ralph lauren stands for. So i think were really well positioned in this volatile environment. And i look at new measures and i think our viewers should look at them i look at, say, impressions. Why . Because facts cant be tricked thats genuine you mentioned beyonce. How many people saw her . J. Lo was the number one i mentioned. 8 billion impressions. Now, 8 billion, again, that is how what does that translate for sales in your estimation or is it just mindset . I think its difficult to link it directly back to sales but the combination of brand Visibility Like that, because thats just one example. We had Ariana Grande wimbledon. She has more than 320 million followers. She wore ralph lauren. David beckham. So the combination actually all our Marketing Activities coming together drive desirability, drive brand visibility and drive the interest were seeing around the world. Lets talk about around the world. Your european numbers were extraordinarily strong people have gotten used to europe not doing well for anybody. But the numbers that you had demonstrate that there is i dont want to call it a boom but a much stronger consumer than people think. Yeah, europes been good for us for several quarters now. In the context thats pretty challenging. The war. Consumer sentiment inflation. Im really proud of the work our european teams are doing theyre really bringing our core strategy to life i was just there i was in both london, manchester, munich and berlin. So i got to see in action the work theyre doing on the consumer, the engagement at wimbledon was a wonderful showcase for the brand, the work theyre doing on product and the fact theyre really showcasing what consumers are looking for today, which i mentioned before is the core sets of products elevated positioning and then the work were doing in stores we have an amazing presentation in our munich store that we just relaunched we have a new presentation of home and cadevet in berlin the combination of these three factors is driving you did not go to the world of ralph lauren stores, which im very excited, when in amsterdam. Absolutely. We opened one in amsterdam youre absolutely right. One of the key strategies from a marketing standpoint is to focus on the top cities in the world and the drive toward dtc, so we can have the direct relationship and you are seeing us open stores, in amsterdam, in singapore, across asia and even here in the i was going to say i think youre understored, in our country. Youre absolutely right we have historically been overpenetrated on the east coast and southeast. The west remains a big white space for us actually, one of the biggest white space this company has Significant Growth potential here in our home market. Six years, 70 average a uni retail nobody really has that record during a very inconsistent period if you can continue that pace, the stock deserves to be much higher heres the strategy the strategy is we want to reposition ralph lawyeren back to its luxury roots. Ralph was telling my a few months ago that when he launched his first tie right he launched it as a very premium proposition. 2 1 2 times the price of a Christian Dior tie our roots are luxury our focus now is to reposition the company to be closer to the european luxury players. Part of that is continuous elevation on product, on storytelling, on in store. And that enables us to drive Value Proposition which enables us to drive a. U. R. We saw the merger today of two companies that i think both wish they had your book of business ska prooe and tapestry to me youve got the consistent one. Thats what i like i like great brands. Ralph lauren, great brand. Patrice louvet, great manager. Rl is down too much. I just said it im willing to take the pain if im wrong. But i dont think i will be. Mad moneys back after the break. Coming up, cramer wants to hear from you. Your calls on the thunderous lightning round. Next the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. At the counter or on the go, save 20 with the lowest transaction fees and keep more of what you make. Start saving today at godaddy. Com upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. It is time its time for the lightning round on cramers mad money. Buy play until we hear this sound and then lightning round is over. Are you ready skeedaddy time for the lightning round on mad money. Lets start with steven in illinois steven caller hey, jimmy, whats up not much. You actually me, steve caller im calling on public storage. They issued 2. 2 billion in senior notes to purchase simply storage from blackstone. And i like that i think with a 4 yield this is the right level to buy public storage. Im going to have to say buy buy buy now im going to steve in new york steve caller baa baa baabooyah, jim steve good to have you on the show whats up . Caller club he mmember here. And wanted to touch base with you about this provider of Maintenance Services for power plants and refineries. This Company Reported earnings on the 7th and it beat analyst expectations on both earnings and sales. The stock seems to be responding well to the report and i would like to hear your thoughts on prim primrose services corporation. I dont know it ive got to do work for you. Steve gets some work to be done by mad money team. Bennett in florida bennett caller jim appreciate you taking my call. Oh, thank you whats up, bennett caller i got into ring central around 60 i know its a bit of a mess right now. You know what i saw vlad shmunas is going to step upstairs, executive chair im not a fan. Its very crowded. Its too crowded, too commoditized im going to have to say no. Im sorry. Now im going to go to jack in new jersey jack caller hey, jim, whats going on, buddy . Not bad how are you . Caller pretty good pretty good. Jim, listen, with the three most popular ai games most popular selling ai games in the world right now and the fact that acti activisions meshlg v merger was just approved, do you think its going higher and number two its going to be in play for a merger the only chinese stock i recommend on this show is alibaba and im not that keen on owning chinese stocks. I do think, by the way, Take Two Interactive had a terrific quarter. John in minnesota. John caller hey, jim, how are you doing . Im doing well. How about you . Caller good. Ive got a question on smg scotts miracle grow. I see its been down the last couple years its got a yield of 5 heres the problem. They have got to try to fix the notion of being way too dependent upon the gardener. They have to try to find Something Else and ive got to tell you the weathers been bad on the weekends people arent used to spraying the extra stuff. Its just too dicey a stock for me and 5 yield is not enough to entice me. Alex in florida. Alex caller jimmy chill, first time long time there you go. Thats what i want whats going on . Caller all right, jim. So the company im calling about has had five quarters of consecutive eps beats over estimates. Doubledigit year over year Revenue Growth on their last Earnings Call they increased guidance to ubl diddigit samestore sales growth theyve increased their revenue. And theyve got agreements in place so theyre not overly reliant on the spot price of chicken wings. But the stock is 27 below its may high of 223 a share i think thats too cheap, jim, but tell me what am i doing with wingstop oh, wingstop. I love wingstop. Buy buy buy. Lets go to conor in New Hampshire. Caller booyah whats happening . Caller not too much. I know you like adobe. You bet caller but with maya suite and generative ai i like adobe too but i believe autodesk is well positioned. Chief, im with you conors right. Auto desk is now, adobe is one of my faves but i left out auto desk and thats a mistake nvidia, lets remember what Larry Williams said. Its going to go lower were not going to give up we just accept the fact that stocks that go up 200 come down a little i gave him a twofer a threefer auto desk, adobe and nvidia. Lets go to mark in texas. Mark caller hey, jim, how are you today . I really enjoy yalls show. Ive been watching you since ive been retired. I bought there you go. Caller i bought pioneer 205. Then i love you, man. 205. We bought it for the Charitable Trust. It is going higher and that, ladies and gentlemen, is the conclusion of the lightning round announcer the lightning round is sponsored by Td Ameritrade coming up, why a kelloggs breakup may lead to a breakout at the breakfast table dont skip the most important meal of the day. When we return good luck. Td ameritrade, this is anna. Hi anna, this position is all over the place, help hey professor, subscriptions are down but thats only an estimated 15 of their valuation. Do you think the market is overreacting . Howd you know that . The Company Profile tool, in thinkorswim®. Yes, i love you please ignore that. Td ameritrade. Awardwinning Customer Service that has your back. The citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] almost every ceo loves to say theyre laser focused on this brand or that issue or this idea laser focused. Its the mother of all cliches our eyes pretty much glaze over when we hear it because we hear it so often. But theres one too many im willing to buy into the laser focused idea and thats when a company decides to break itself up into different more focused independent entities it tends to work, even when we least expect it. Which is why i actually like this kelloggs deal we talked about last night kelloggs being divided into w. K. Kellogg and kellanova a snack food business. The wall street journal panned the breakup theyre particularly disparaging the cereal business, it doesnt have a lot of growth but i come back and say hey, wait a second, maybe the Cereal Division doesnt have much growth because kelloggs had to focus on two very different businesses at once you dont find snacks in the cereal aisle and you dont eat snack food for breakfast, or you shouldnt. Kelloggs has big Famous Brands like special k, froot loops, cheezits, corn flakes and i think they could be pulled apart with two separate companies. I know its hard to believe companies can create value simply by breaking themselves up but weve seen it happen so many times before quite simply, when i dont believe in the laser is i get it wrong. Classic example the merger breakup of the old United Technologies and raytheon. When they got together United Technologies spun off these two really boring companies, airconditioning and elevator. Thats carrier and otis. Two storied brands that nobody wanted to have anything to do with because their growth rate seems to be stalled or nothing just like kelloggs cereal right now. As i used to say at the dotcom, wrong. Otis under the leadership of ceo judy marks has become a totally different nice growing elevator company. The numbers have been terrific the growth is episodic because they make so much money off the services side. In fact despite what you hear about the Office Towers and work from home, otis has continued to deliver excellent, excellent numbers. Since the breakup the stocks up more than 85 over a period where the s ps rallied 79 . Everybody thought it was going to be spun off its been an outperformer. You know whats been impressive . The heating ventilation and airconditioning company that is carrier. The ceo has reenergized a business that got no love at all under the umbrella of United Technologies because United Technologies was laser focused on aerospace, not anything else. Since the breakup carry err whys stock has rallied 227 , clobbering the s p when ge broke itself up, core general electric, largely an ore aspace company now, spun out its Ge Health Care division which sells heavyduty medical equipment. Ges given you a 62 return since then Ge Health Care 20 s p about 16 . Were so blind to the darn strength of these shrink to growth stories that we overlook them even when theyre staring us right in the face hey, remember when excelon, the boring giant utility spun off its Nuclear Power business as Constellation Energy they didnt want the controversial nukesnder the same roof as their traditional utility business i get that the resultwhile excelon has performed in line with other utilities Constellations Energy stock has nearly doubled and its crushing the s p. Just a whole different ball game i mention these three breakups because they seem as unlikely to make you money as that w. K. Kellogg and kellanova do there were lots of moans and groans when those spinoffs were announced just like these. But the management proved to be good to their word they are laser focused on their Small Businesses so the breakups have been huge wins for all involved. I bet actually the same thing is going to happen with the pieces of the old kellogg too i like to say theres always a bull market somewhere. I promise to try to find it for you u right here on mad money. Im jim cramer see you next time. Last call starts now