Transcripts For CNBC Mad 20240627

Today we found out whats wrong with the drugstores. Its not the maximum security of merchandise where you need to call the jailer to get a bar of soap. Its not the often downtrodden employees. No. Its amazon. On a day where the dow gained 36 points, up 0. 9 , i see amazon hitting an alltime high, putting it in rarefied air of the 2 trillion club. I see wall grgreens hitting a multiyear low of 12, down 22 today. After reporting an abysmal quarter, it was its worst day ever. Sell, sell, sell house of pain. We had our cnbc Investor Club meeting today, and we discussed the greatness of amazon, but i feel we gave it short shrift. Amazon is so phenomenal, it can destroy any industry it chooses to go after. Its the retail death star. We learned that amazon is planning to launch a Discount Store to go after the ultralow cost but often ultralow quality of temu and shein. Those have become the most powerful apparel makers in the woshld. Now that amazon is rolling out a similar discount story to compete against them, i dont envy they prospects. With walgreens, amazon taking no prisoners, tnp. Amazon missed the estimates by a mile, causing the stock to cascade back to the lowest level since 1997. It will close a significant number of money losing stores. Tim wentworth didnt mince words on the Conference Call. The severity and challenges of the operating environment have only added urgency. He went on to say, we are at the point at the point where the current pharmacy model is not sustainable, and challenges require we open the market differently. No wonder the stock was down 22 . Wentworths ideas include putting money behind the pharmacy business, because that business is still good. That doesnt mean opening clinics as walgreens has a stake in village md, which they intend to monetize, although i dont know how. Walmart recently closed its 51 Health Care Clinics in their stores because they couldnt make them work. Too costly, hard to staff. Who they have thats going to pay for these properties, i have no idea. Lets deal with the reality of the situation. If you listened to the Conference Call today, and it was a tale of woe, frankly, you would have heard Tim Wentworth trying to make sense of the decline. You may not know hes one of the finest Business People in the world. He knows this business well. Hes identified the edge that walgreens has for the moment. The pharmacy in the back of the store. But as walmart found out, pharmacists are also hard to find. Wentworths been spending a lot of time talking to 15 pharmacy schools, as well as talking to trade associations, just to find some workers. Its vital. But how much will it even matter . It might be a foot race. Can they close enough stores, stop the pilferage and hire enough pharmacists while they get out of bad leases, shrink the store . Will rite aid close enough stores . Or will amazon simply eviscerate them . Like it did to the late, lamented borders or the shri shrinking barnes noble bookstores. For years and years, walgreens relied on shoppers who bought all sorts of merchandise in part because they needed to get to the back of the store and pick up their drugs and walk back to the registraer. They were terrific almost captive customers who seemed more sensitive to time than price. We had two huge Beautiful Stores of theirs within a block of our office. When the second one opened, it was a gorgeous store. It had everything. It had sushi. I had the sushi. It was okay. We did a show from it with an old ceo of walgreens. I remember asking the manager how it was possible, how they could have two Stores Within a block of each other. The answer . Too much business to handle at one store. Now, both stores are closed. Too little business. What really happened here . For one thing, service went to hell. They fired as many people as they could. But then they became groeund zeo for theft. Now you have to call a clerk to open the gate. However, having fired a ton of workers, there arent enough people to open the plexiglass lids. I once waited five minutes, charted on my phone, pressed the button to see it was really five minutes. Nothing happened. Five minutes waiting for shaving cream. Pushing some button while i stood by idly. I finally just left. Its a lesson in how to turn a Walgreens Customer into an amazon customer. If youre an amazon prime subscriber, instead of taking time to ring the buzzers and hope that some downtrodden walgreens employees will break away from what they were needing to do and open your plastic doors, or just order from amazon. Amazons been working endlessly to ensure sameday delivery for the stuff. Do you care you cant forget the shaving cream at 10 30 a. M. At your office or home. You dont save intraday. The only difference is that prime is cheaper. And its not like the he was the president of the united states. And its not like they only have the basics instead of the exotics that are almost always under lock and key. Amazon more varieties than walgreens. They have 42 different old spices instead of just the usual 17. They got every old spice. How many new old spices came out today . Come back to me. Amazons never set out to destroy borders. They didnt set out to destroy walgreens, either, but they set out to get the best products with the best prices at the most convenient places, meaning your home. Walgreens cant afford to have the lowest prices and we never expected them to. Who would have thought the stores could be less convenient than amazon . Its a wonder to behold. Lets throw in one more issue, watching people right in front of you steal what youre actually paying for. Ive seen this happen in walgreens all over the country. Ive seen people caught by police and then released on the spot. I was part of a San Francisco catchandrelease program. Im not get a Police Officer told me first, he asked me if im an angler. Heres an amazing thing. You have to pay when you shop at amazon. Its a bummer, you know, you got to press that button. I dont know. You pay. Sorry. Meanwhile, beyond the front of the store, amazon is constantly trying to be your pharmacist. They offer a bunch of medicine, and you can go toglp1. They got the wegovy. Its on the home page. I think it will be game over for the back of the store once we begin to speak to an a. I. Version of our doctor pharmacist, which is what theyre working on, and that doctor is a lot more empathetic than your doctor, especially if youre the village what is it . The village dm . What is it . What do they call that . The city md summit . Whatever. Thats when the drugstore goes the way of the dodo, bookstore. Heres the bottom line. The stock market can be a brutal, brutal, brutal ctask master. So can capitalism. Im sure well come up with some way to make money before its dead position wipes it out, but right now, my money is on the company with the stock thats on the alltime high list, not the one thats on the new low list. My money is on amazon. I feel like taking calls. I feel like going to betsy in california. Lets speak to betsy. Betsy . Yeah, hey, cramer. I got one that is on the low list, and im struggling with it, because the pe is 8. 9. The profit margin is 13. 59. And the institutions at 77 or 75 depending on which chart you read. And yet, the Raw Materials are schlepped halfway across the country, and is you need a process the Raw Materials into coke before you even can make the finished product. Okay. Cramer, when tell me when can i invest in nucor again . I think nucor is the greatest manufacturer in america. I think the problem is that the estimates are going to prove to be too high, because business is slowing. This is what the feds doing. And understand that were not against the fed, because we dont want inflation, but nucor right now is a casualty, and once the fed starts cutting, youre going to be in that stock. Maybe it takes some pain now, betsy, and youll get some gain later. By the way, when shes speaking of coke, shes not speaking of an illegal one or a liquid one. Shes speaking about something thats made in a steel mill. I dont want people to get the wrong opinion of anybody. Look, im sure walgreens will find a way to make some money before its deposition wipes it out, but my money is on amazon. Its the company thats hitting alltime highs rather than the ones that are hitting the lows. On mad money tonight, micron fell out of favor today because of a forecast. Thats ridiculous. Lets i think its garden variety profittaking and redhot stock. Lets talk to the ceo. Dont miss my exclusive. Then, is it time to raise a glass to corning . Im giving you my take and sharing if the glass remains half full on the story. What should you make of aerovironment . Im getting the latest from the ceo. Stay with cramer. Citis industry leading Global Payments solutions help their clients move money around the world seamlessly in over 180 countries. And help a partner like the World Food Programme as they provide more than food to people in need. Together, citi and the World Food Programme empower families across the globe. Clems not a morning person. Or a. People person. But he is an i can solve this in 4 different ways person. You need clem. Clem needs benefits. Work with principal so we can help you with a plan thats right for him. Let our expertise round out yours. Daves company just scored the comcast business 5year price lock guarantee. High five high five. Im on a call. Its 5 years of reliable, gig speed internet. Five years of advanced security. Five years of a great rate that wont change. Yep, daves feeling it. Yes. But its only for a limited time. Five years . Five years. Introducing the comcast business 5year price lock guarantee. Powering 5 years of savings. Powering possibilities. All right, what the heck just happened to the stock of micron . Last night, the commodity chip maker, and this is the last time ill call it a commodity, by the way, reported an impressive set of numbers but the stock did get hurt. 14 cents beat off a 48cent basis, its earnings per share up from the previous quarter. Sounds pretty good, right . I thought so, and most of the analysts agreed, but the stock got slammed anyway. I saw people saying the problem was microns Sales Guidance, which was merely in line with the consensus estimates, not above expectations. That strikes me as a bad reason to dump this stock. I think its just micron was due. Its doubled since a year ago. Thats what i think is going on. Dont take it from me. Lets check in with the president and ceo of micron technology. Welcome back to mad money. Jim, great to be back on your show today. Thank you, sanjay. Lets step back for a moment from the daytoday trading. You have come up with some incredible chips. Theyre not commodity chips. Theyre incredibly proprietary, and you have a hidebandwidth memory chip thats probably going to be the star of the next 10, 15 years for a. I. You are not given to hyperbole. There are people who want you to be hyperbolic. Is it not true that these chips could be particularly high bandwidth memory huge chips for many years because of a. I. . Absolutely. We are in the very early innings of a. I. Here. Highbandwidth memory last year was in single digit billions of revenue, low singledigit billions of revenue in our industry. As we look ahead in 2025, highbandwidth memory is going to grow to over 20 billion of revenue, and micron, in the very First Quarter we reported we began shipping this product and already achieved 100 million of revenue, and we said in our fiscal 24, we will have several hundred millions of dollars of revenue, and growing into multiple billions of dollars of revenue in our next fiscal year, which will start in september. And this product is already accretive, and jim, what is exciting is that this is a highly complex product. Micron has the best product in the industry, 30 lower power than any of the product, and you know that in a. I. Applications, datacenter applications, performance is important. And of course, we have better performance with our product as well. So, this product is critical to a. I. Applications, because this is what increases the power for the communication between the gpus and the memory. Thats very important. Thats what enables, ultimately, a. I. Applications. It enables generative a. I. We are in the early things. I think we have a long road ahead of exciting opportunities. This is hpm3e. There will be hbm4 and following iterations, so exciting road map ahead, and we are very much focused on it and excited about the opportunities and micron team. Its very much focused on execution here. Some people are know the micron, say, from the 90s and the early part of the of this century, and then last, even, eight, ten years, that its boombust, boombust, but the product you just described is not a commodity. It is a secular growth chip that people arent used to seeing micron do, and therefore, i think they dont understand that you are not going to sit here and say that its going to be huge, although we dont know whats going to happen after. Thats not the trajectory of this hbm. Hbm enables tremendous opportunities for differentiation. It enables opportunities for differentiation. The future generations of hbm that i mentioned, like hbm4 actually enable processor and memory to come together to even drive data innovation faster performance, the compute platforms at the accelerator levels in terms of interface with the gpus, and important thing also is that hbm is the kind of memory that takes three times more silicon to produce the same number of bits. So, as hbm grows in penetration and the dram market, and of course it will scale up as a. I. Gets bigger, it actually is a headwind to the supply growth in the industry, so hbm is really a great margin accretive product for not only by itself but it actually has an impact, that ripple impact on the pricing increases through the rest of the dram industry as well, because of this supply impact that it has. At the same time this is a great product, and important thing, jim, is that, of course, hbm is a great product for a. I. , but a. I. Is permeating through edge devices as well. Pcs and smartphones where micron is well positioned are also, you know, enabling a. I. And they require more memory content than those devices as well. And this is why, jim, we say that micron will be one of the biggest beneficiaries of growth enabled by a. I. In the semiconductor industry, because our exposure to a. I. Growth goes from datacenter to edge devices such as smartphone and pcs and automobiles, so, really, i dont think, besides nvidia, any other company has as large an exposure to the a. I. Growth as micron does in the semiconductor industry. I want people to know your history. You came on. You told me back in, literally, a year ago, that, look, inventories, which had been very bloated, and i many, many times, i said, give me the five give me the go ahead. You said, the inventories are elevated. Inventories were no longer elevated last summer. You said that. Thats when the stock was in the 60s. What and that was money good, and everybody who listened caught a double who listened to you. Im hearing you now aying, listen, we and i know that you these products are harder, so you dont get the yield immediately that you are not saying that, look, we are in the sixth or eighth inning. Youre saying we are early because this is a different kind of chip for micron. Absolutely. A. I. Is in early things. Generative a. I. Is in early innings. Highbandwidth memory is absolutely in early innings, and it is really a generational product, totally transformative kind of product for our industry, but again, its not just hbm. Micron has products, highdensity, which will be several hundred millions of dollars in our second half of this fiscal year for us, as well as low power drams which also go in datacenter servers. And of course, we have strong portfolio of products that go into smartphones and pcs and automobiles, and of course, drives our enterprise as ddrives hit a record for us in our f q3 that we reported, again, driven by growth of a. I. We talked about it in our Earnings Call yesterday, jim, that our datacenter revenue mix this year will be a record level, and it will grow from here on in fiscal year 2025 as well, so we are absolutely playing along the stretch that we defined a while ago to continue to shift the mix of our products toward higher margin solutions, and datacenter is an important piece of that. At the same time, i was trying endlessly to say, listen, can i call an end to the pc cycle . And you said, no, no, no, and that was dead right. But now, with a. I. In the pc, i hear you saying that things could be quite good. Things have largely played out as we said before, jim. We said datacenter inventories will normalize by midsummer. They have normalized, and you are see a strong buying pattern for memory in datacenter. We had said sometime ago that because of increasing prices of memory, as well as tightening supply that our customers were seeing with memory shifting more and more toward datacenter, and of course, that a. I. Pcs and a. I. Smartphones coming online in the second half of the decade, some customers in pc and smartphone markets built some inventory, but this is really to address their demands, and as we look at 2025, a. I. Will drive growth in pc and smartphone as well. Pc is going to have refresh, windows 12, as well as expiration of windows 10 and new a. I. Pcs is going to drive a new replacement cycle. Many, many so, yes, we are positive on pc and smartphone, and well positioned to address growth there as well. I want people at home to understand, he did not say that because he is hyperbolic. Sanjay, and hes right here, so i feel a little awkward saying it behind his back in front of him, is conservative. Thats one of the reasons why people sold down the stock. Dont ever say, im going to sell a stock because someone gave conservative guidance when they have been right about their guidance the whole way in the sense that they did not put any hype into the numbers. Sanjay mehrotra, thank you for coming on mad money. I think you really told us the way people should understand. Great to see you. Thank you, jim. No hype. Just great numbers. Mad money is back after this. Announcer coming up, in case of profits, break glass . A stock screen about a stock that helps make screens. Next. sandals rhythm and blues caribbean sale is now on. Visit sandals. Com or call 1800sandals. University of maryland global campus isnt just an innovative state school, its a school for real life, one that values the successes youve already achieved. Thats why at umgc, you can earn up to 90 credits toward a bachelors for prior learning and life and job experience, why we offer scholarships and affordable tuition, and why we have online classes and the support you need from your first day to Graduation Day and beyond. For over 75 years, umgc has helped people succeed again. What will your next success be . Look, im always watching the 52week high list, searching for new ideas. For the past few weeks, its become impossible to ignore corning. It used to be an incredible performer many years ago, but its an absent from the new high list for ages. They make specially engineered glass, plastics and ceramic supplies. Think the glass used in fiberoptics or flat panel displays, not to mention car and truck components. This stock was a huge winner before the dot com bust, from 2002 to 2021, it worked its way higher. Again, in fits and spurts. There was a ton of pullforward demand in cornings end products during the pandemic. They overearned. When we got over covid, corning got hit with a serious slowdown because we had enough hardware and fiberoptic infrastructure. Thats why the stock fell 46 from its highs in 2021 to its lows last october. Now, for the last eight months, though, cornings really been on a roll. First of all, its adjusted by the rally. These guys reported a hideous quarter last october, and that had slightly better numbers but still gave a weak outlook when they reported again in january. And you can see, you know, look where this stock get a good look at it. Finally, two months ago, we saw what the buyers were anticipating when corning reported a strong quarter. Since then, its kept running. Hitting its highest level since early 2022, although after nasty pullback yesterday, its down. Can corning keep running . Lets look at the numbers they posted at the end of april. This was by no means a blowout quarter, but it was a solid set of numbers with management giving us an optimistic outlook for better days ahead. Thats all they needed to do, given how awful the previous two quarters had been. When you look at cornings six individual segments in the four largest Optical Communications display technologies, be especially materials, and Environmental Technologies all came in stronger than expected. Only the two smallest divisions came in weak. Most importantly, right at the beginning of the Conference Call, cornings ceo ticked through the highlights. And said, were seeing encouraging signs of improving market conditions. We continue to expect the First Quarter will be the low for the year. Say no more. Corning believes that the First Quarter will be the low and bid will build from there. That claim got extra credibility because management offered better than expected core Sales Guidance as well as inline core earnings per share outlook. Sales have already bottomed. I like that. Second, management plans to grow its sales by 3 billion in the next three years, a substantial sum for a company with 13. 6 billion in revenues last year. The third and final step, corning is in an industry with high fixed costs and relatively low variable costs. Theyve got all these expensive factories that arent running at full capacity, so when they get a huge sales boost, most of that new money flows right through to the bottom line. Corning introduced this threestep framework for higher earnings back in january, but nobody cared at the time because management hit us with lowball guidance. It was like the company was saying, the First Quarter will be bad and get better from there, trust us. Not many were willing to give them the benefit of the doubt until we saw that things were playing out as predicted when they reported again at the end of april, still, its easy to say you can grow sales by 3 billion over the course of the next three years. Much harder to deliver on that promise. Corning has some exciting stuff planned, 85inch tvs, products for solar energy and innovative pharmaceutical packaging, but theres one product category thats far and away the most important, and here it goes. Optical communications equipment. Talking a. I. See, alongside glass for various flatscreen displays, optical is cornings largest segment. Its also been one of the last parts of the business to find a bottom and turn around. Thats partly because investors, after years of investing, many of these outfits have been dialing back their Capital Spending plans. Thats done serious damage to cornings optical business, which saw its sales shrink by 20 last year. Even in the First Quarter of this year, opticals were down 17 . However, i think this division is already turning. For corning, their First Quarter optical sales were up 3 from the previous quarter and that 3 sales bump translated into a 14 increase in net income. On the latest Conference Call, management said the process of teleco customers working through their inventory is well under way. Im more interested in the new Growth Drivers for cornings optical division. First, expanding access to rural communities, including broadband equity access and deployment or b. E. A. D. Program. Thats practically a substance for cornings fiber business. Secondly, more important, you know what else needs fiberoptic equipment . Datacenters, especially the ones being used for artificial intelligence. These new datacenters that are being built being purpose built for a. I. Require a ton of fiber. A lot more fiber in order to connect their nvidia chips into superpowerful gpu clusters. Corning is also coming up with new products for these modern a. I. Datacenters, including something called the rocket ribbon cable, which reduces cable diameter by 60 . That matters because smaller, denser cables are ideal for a. I. Infrastructure. With tech, smaller is always better. Put it together and corning feels like a stealth play on the hottest trend in the world. People started to notice. Late last month, jpmorgan upgraded the stock to overweight, saying, cyclical and secular drivers in the primary business of display and optical are lining up favorably for the company and should position it well to leverage the up cycle in revenue, i could not agree more. Look at this, will you . While the stock is already up 53 from its october lows, still sales were just over 20 times this years earnings estimates and 17. 5 times next years earnings estimate. This is assuming the estimates are too low, frankly. Heres the bottom line of what i think is a very exciting story. To me, for the First Time Since 2000, if you believe 1999, actually if you believe in the turnaround here, then corning is going to have a lot more room to run, and me . Well, just call me a believer. Lets take some calls. Lets go to trey in texas. Trey . Jim, i drive a hearse for a living, and i can tell you theres one thing we last responders know better than anyone else, and its that life is short. Therefore, i must escape the rat race. Something about being a 45yearold man asking permission to take a vacation doesnt sit right with me. All right. Give me the retire early stock. I think it might be data dog. What are your thoughts . I think datadog is an incredibly good company. I wasnt totally enamored with the last quarter, but its better than some of the others. I will tell you that i dont think this datadog is going to be an nvidia. I dont. But i do agree with you that i think it can trade higher and its a wellrun company. I wish that olivier would come on. If you believe in cornings turnaround plans, the stock is going to have more room to run. Its a Great American company. Count me as a believer. Much more mad money. Aerovironment, im going to talk to the ceo. Then, should you really be selling levis . I have a message for the sellers in this legacy denim company. And all your calls in the lightning round. Stay with cramer. Ga, the advanced form of dry agerelated macular degeneration, can irreversibly damage your vision. It can progress faster than you think. When ga threatens your eyes, take a stand. Slow ga with syfovre. Syfovre is an eye injection that was proven to slow damaging lesion growth over 2 years with increasing effect over time. Its the only fdaapproved treatment to slow ga in as few as 6 doses per year. Dont take syfovre if you have an infection, or active swelling in or around your eye that may include pain and redness. Syfovre can cause serious side effects, such as eye infection and retinal detachments, severe inflammation of vessels in the retina which may result in severe vision loss, wet amd, eye inflammation, and an increase in eye pressure. Most common side effects are eye discomfort, wet amd, small specks floating in vision, and blood in the white of the eye. Tell your doctor right away if you have any side effects. Every moment counts act now to slow ga with syfovre. Ask your retina specialist about syfovre. All right, look at this decline in aerovironment, the defense contractor known for its hightech drones, ground robots, all the stuff that represents the future of the way war fighters are going to do their job. They gave muted guidance for the full year, and it crushed the stock, sent it down more than 50 of its lows, although ultimately it rebounded as cooler heads prevailed. Does it make sense to abandon this one after a weaker forecast . Im a huge believer in this business and this company. Everybody whos watched the show for any long time knows i like this thing, i dont know, maybe, its its probably gone up more than four times from when we first started talking about it. Lets take a look with the chairman, president , and ceo of aerovironment. Great to have you. Great to be with you. Im proud to have been with you for a long time, because we felt that you offered the alternative to these big heavy systems which, to me, seemed very outmoded, because you have to have ground war fighters be able to shoot and live and have people have it up in the sky. All that i have seen so far that i am most proud of you about well, theres been many things, but you were the first one in this Replicator Program, which to me is the pentagon saying, were not tolerating expensive stuff anymore. We want precision and we want it without a huge amount to the taxpayers. You called it right four, five years ago when our stock was in the 20s and 30s, and where we are today is fantastic, and of course, we are just startling. Starting. The fundamental shift in warfare is that distributed intelligent robotic systems loading munitions, small drones, thats what we specialize in, is going to be a much bigger piece of the warfare in the future. Conflicts in ukraine, conflicts until the pacific, its all with that. Replicator is the First Initiative that the department of defense has taken up to the undersecretary the deputy secretary of defense, kathleen hicks. Dr. Hicks has made it a mission to bring in these types of capabilities to be able to deter china and also defeat our adversaries in that theater. And we were honored to be selected as the first awardee for the Replicator Program, the switchblade 600, and the army said theyre going to buy over a thousand of those immediately on the First Tranche of the replicator initiative. People have to understand that you, early on, we met and we talked about agricultural drones, because the government, frankly, the military was not ahead as what you saw would happen. You predicted all of this. Unfortunately, we have real wars going on, but you predicted that taiwan would have to be predicted. You predicted that russia could be a problem. Now, ukraine and taiwan are gigantic markets for you. Thats right. Absolutely. Ukraine, today, to date, we have delivered thousands of units of our robotic systems. Nine of our different products. Nine of them are in use in ukraine. We are the workhorse of ukraine as an air force, the puma and puma les are flying all over. Almost every artillery the u. S. Has given to ukraine has a puma flying in front of it to find targets, assess the battle space, find targets, and sweeten the targets for them so theyre more effective. You know, having a himar even fire without the intelligence and surveillance of a puma, its less effective. The puma makes it a lot more effective. We want to increase the efficacy of these systems that were providing to ukraine. And taiwan is going to be very similar. And were the only company that i know of that can actually produce these things in thousands of units. The d. O. D. Quality and rigor today. We should talk about that. I remember when ukraine, we were First Talking about funding ukraine, and there were a lot of pictures about the javelin, and the javelin is not yours, and when you looked into the javelin, it was very expensive and also seemed like you had to see the target, which therefore almost always means the target can see you, which means that the losses, the number of men and women who were killed is way too high. Whats the difference between your uncrude and the javelin . So, our switchblade 600 has essentially the same warhead as a javelin. Its an antimain battle tank warhead that can go through any type of armored vehicle, including the russian tanks. Javelin is a line of sight, you have to physically be able to see the target, as you said, within two to four kilometers. That is a very close fight. Its way too risky for the war fighter to be that close. We do not want our men and women in uniform to be that close to the actual enemy. Our solution, switchblade 600, could be shot from almost 90 kilometers away. Typically, 40plus kilometers, and once you get to the target, you could also loiter for about 40 more minutes. Find the target. Explain what loiter is. I know thats a very important term. Its a term of art in your business, but people might think just kind of hanging out. What does loiter mean . Loiter means that you have a very sophisticated gimbal or sensor in the front of the uav or drone that actually looks in the landscape and finds the target. Youre going to look around to see if i can find a russian asset thats worth taking out, a tank, a radar system, a compound, a Forward Operating base, a munition depot, et cetera. Once you find it, then you designate the target to the switchblade, and then the switchblade goes and hits the target as an explosive munition. Thats when it actually achieves the lethality piece at the end game of the actual hitting. Once you get to the site, which is 40 kilometersplus away, then you have another 40 minutes to keep looking, to find the right target you want to engage, and then you take it out. A lot of people say, rand has these 500 things and theyre every bit as good as what youre doing. Could you explain to us what the bad guys have versus what we have . The best way to describe it is that american innovation, including ours, is by far the best in the world. Theres nothing that our adversaries produce that is of the caliber that we make in the united states. This is a tremendous strategic advantage for the united states. And we need to keep that up. We are this is the reason why invest 11 to 12 of our revenue in r d, and this year i know. People dont like that youre spending so much on r d. I do, because we know men and women in our armed forces deserve it. Let me ask you. There is a president ial election tonight. I understand, from what the Replicator Program is, the Current Administration is trying to say you are the hope, because youre not going to break the bank. Do you think its going do you think either president ial candidate has a different view on drones, on what youre doing . Not to my knowledge. Right now, both houses of congress, both Political Parties are both the pentagon leaders, everyone actually believes in this future. It is the future of whats going to be a much, much more wars of drones. The ukraine conflict proved it to us. You predicted it. You came on this show, and i was saying, when are they going to start ordering . I actually talked about ordering them myself and trying to send them over there. You told me youre not allowed to do that. You had them. The whole time, you said it, and i couldnt believe we were spending millions and millions and getting almost no bang for the buck. Youve changed that. We have definitely changed that and proven it in real life when our systems arrived, and now theyre very, very effective in the battlefield. They sure are. Ukrainians love them, and its doing a lot of good. And i hope you save taiwan, because we cannot put soldiers there for some reason, but with we can put drones there. We are ready to defend and provide the systems in tens of thousands. Perfect. Thats what i wanted to hear. Chairman and ceo of aerovironment. I wish youd been able to come on midday when the stock was down g gigantically. Announcer coming up, pop open those umbrellas and tee up your toughest questions. Cramer takes on all comers in the lightning round. Chewy, a citi client, uses citis financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need. Right when they need it. Keeping more pets, and families, happy. For the love of moving our clients forward. For the grunting ogress. At morgan stanley, old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. Okay, team oh, thank you so much i couldnt have done it without you. Honestly, i dont do a whole lot here. Im really just here for the at t internet, its superfast so, any prelaunch concerns . What if nobody buys them . Thats mean or, what if everybody buys them . Oh, i hadnt thought of that thats probably not gonna happen can we handle that kind of traffic . The network can handle it i downloaded eight hours of true crime stories just during our last video call im learning a lot announcer lightning round is sponsored by Charles Schwab. Trade brilliantly. It is time for the lightning round. And then the lightning round is over. Are you ready . Going to start with brandon in new jersey. Brandon . New jersey booyah, jim. Right back at you, garden sta stater. Whats happening . I was looking at palantir. Its up 52 year to date and 20 month over month. At this point, is it too late to get in . Well, if they would tell you what they do, no. That would help. A lot of things i tried to look at it. Its a giant black box except for its a Consumer Product goods company. Theres better people to ask. Brian in nevada. Booyah, jim, how you doing today . Im doing well, how are you . Im good, my question is about a stock thats been accumulating for over three years now. They have a topnotch leadership team, including a ceo that receives no pay or compensation. Theyre staged for Economic Uncertainty and Investment Opportunities of over 4 billion cash on hand. What is your honest opinion on gamestop . Okay, gamestop raised enough money off the backs of the apes, the memes, the kitties, whatever, that they can reinvent the company. If they reinvent the company, then youre absolutely right. They have a big war chest, they can just close all the bad gamestops, and you know what . They can open nationwide ice cream parlors. Ben in jersey. Ben . Thanks for all you do, and great club meeting today. I need your help. Recursion. What do you think of the secondary offering . Is it i didnt like the secondary offering. I thought the secondary offering they priced it at 6. 5. Are they desperate . Thats an act of desperation. Dont do desperate things. Desperate things do desperate things to the stock. I dont like desperation. Lets eliminate desperation. Lets go to richard in florida. Richard . Hey, mr. Cramer, thanks for taking mo get your thoughts on ion q. Yeah, see, this is a company that if it were going to make money, i would start liking it. Lets go to ray in maryland. Ray . Jim, how you doing, its ray from baltimore. Hey, ray, whats going on, man . Whats happening . I wanted to call to say thank you so much for what you done for me over the years. I really enjoyed the show, but as much as i enjoy the show, i think i like your books even more. Oh, thank you. I might there might be another one in the works, but i dont want to jump the gun there. Lets take no prisoners. What do we have . My question is about marvell. Ive owned it for a couple of years, and ive done well, but in the last few months, its been plateauing. Should i continue to hold . Yeah. Look, matt murphy has a division thats unbelievable and another division thats not. The unbelievable division continues to be unbelievable. The not might get better, so you should hold on to it. Should hold on to it. And that trading at schwab is now powered by ameri, ladies a is the conclusion of the lightning round. Announcer the lightning round is sponsored by Charles Round is sponsored by Charles Schwab webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. Nice to meet ya. My name is david. Ive been a pharmacist for 44 years. When i have customers come in and ask for something for memory, i recommend prevagen. Number one, because its effective. Does not require a prescription. And ive been taking it quite a while myself and i know it works. And i love it when the customers come back in and tell me, david, that really works so good for me. Makes my day. Prevagen. At stores everywhere without a prescription. Wait a minute. Should you really be dumping the stock of levi strauss and company down more than 15 as it was today . Because the company failed to meet very High Expectations when it reported last night . I think not. Last night, on this show, mic Michelle Gass delivered a quarter with light sales but a huge earnings beat. It wasnt enough, because levis sells denim and theres nothing hotter than denim right now, so people expected a sales blowout. Theres no denying when a reretailer doesnt blow out the sales, it wont necessarily be able to make it up on margins, even if levis pulled it off this time. Did the stock really deserve to get what ccked that badly . I recognize the quarter had real issues. If you have a beyonce levi strauss on top of the hottest trend in apparel, this should have been levis moment, but the company is undergoing a difficult transition where they arent in control of their own destiny. These transitions are never easy, and its got this dockers division that disappointed and hurt the quarter. What happens after the direct to consumer pivot . What if they just decide to get rid of dockers the way that ralph lauren sold club monaco . What if the guidance, which hurt so badly, turns out to be conservative . The company did raise its dividend by 8 , which is a sign of confidence. Before you sell something based mostly on the forecast and the incredibly high estimates that were almost impossible to beat, you have to believe that nothing can go right Going Forward if youre going to sell levis down more than 15 . I think thats a suckers bet, especially because this is the best denim cycle i have ever seen, and i have seen a bunch. Dont abandon the best of breed in this early stages of this kind of cycle. We often see stocks just go higher on earnings, but they get reined in by management trying to be prudent. Sadly, wall street is rarely a big fan of prudence. I think sanjay, who you heard earlier today, he kept his guidance lower because it could be, i dont know, theres absolutely in it for him to get bulled up about a given story. Anyone whos followed sanjay knows hes a cautious executive, not given to hyperbole. He did flag at the bottom last fall that inventories had gotten too lean, but he didnt ring a bell saying its time to buy. He didnt beat his chest and make a call shot that this is the moment to buy micron. Its almost as if sellers want him to stake out an outrageous position for no reason, other than to help get traders out of its stock at higher prices. Sanjays not trying to appease or make money for traders. Hes running a business. I know people take guidance as gospel. Thats why both stocks got whacked but every time i see this selloff, i hark back to another time on mad money when i was interviewing the legendary frank slootman, an amazing business person, known for crushing the numbers. He was at snowflake. He had delivered one more terrific quarter, but he gave us guidance below expectations that sent the stock cascading lower in afterhours trading and was shortly before i started interviewing. I prefaced my question by saying it to get at the big decline in the stock, triggered by a very soft forecast, because that was the skunk at the garden party. He gave me an answer ill never forget. He said, jim, the guidance is the guidance. In other words, he had to pick some number, so he did. It wasnt enough. So what . It didnt matter. He didnt want me to take me or anyone else to take the stupid number seriously. So, my message to you, sellers, is simple. If youre dumping these stocks because of whats happened next based on managements comments about the future, let me just Say Something you should never forget. The guidance is the guidance. I like to say theres always a bull market somewhere. I promise id find it just for you on mad money. Im jim right here on matt money. Last call starts right now. Welcome to a special your money your vote edition of last call. Tonights president ial debate, you are looking right now at live pictures of atlanta, georgia. President biden, former president trump, ready to face off, and it will be the First Time Ever that a current and former president will debate each other. We are blowing past all the partisan rhetoric and hitting this debate cnbc style. We will hit everything that matters to you and your money, from inflation, the economy, taxes, immigration and more. And