War with china i would love to tell you it doesnt matter for the stock market when a clueless day with the dow gaining 38 points and. 30 and nasdaq. We care about the future, not the past, the fact that the Federal Reserve is set to lower Interest Rates because of the slowdown is huge we get enough hints in the feds Statement Today that the next rate for moves is down and when its down what do you want to do lower stocks the rates translate into a better economy and borrowing is cheaper and more money flows into the system via credit and commerce picks up. At the same time short term is just as attractive and earnings are boosted and highdividend earning stocks are more valuable so welcome to the rate cut cycle here we go ive been through this so many times, i have my own playbook. History says you should buy, buy, buy we could get a rate cut as soon as july. Well get a rate cut i thought there would be a rate hike in july four months ago when the president was thinking things the fed chief thought things were fabulous well, no well get cut and thats just plain bullish. Under normal circumstances, its enough to prolong the rally until we learn what is next on trade. Unfortunately, this is not a normal time. Thats why when jay powell droned on about how the fed is above the political fray, i couldnt help but think this man, this man who declared today he would serve out his full fouryear term no matter what in total defiance of the president of the united states, he is sitting on a huge powder keg lets review what happened and then ill tell you what comes next at the beginning of the press conferen conference, powell said how we had the economy that sounded bullish. You couldnt expect the fed to cut rates when that situation is occurring. In fact, if anything, you expect them to tighten the reigns according to powell, the Downside Risks arent coming from the consumer there is a slowdown in business development. In theory, if hes negative trends continue then employment will soon take a hit and the weakness will start bleeding over to the consumer thats what the fed is closely monitoring a phrase i told you you wanted to hear today because it means powell is getting ready to give us the rate cut. All very natural why is Business Investment slowing . We go. Powell did not directly come out and site the president s tariffs on china not in so many words but said trade news colored the feds thinking which means the fed is c aware they may require lower Interest Rates for the economy not to be declaimed. Powell kindly and respectfully didnt link the tariffs with the slowdown he made no pronouncement whether the trade war is good or bad for the economy, hes a total gentleman to President Trump yet, i thinkto hammer powell demanding a rate cut right here, right now. I wont just be in twitter it will be those things hes walking out with the coat going toll helicopt helicopter it will be all that. Hey, powell, i dont like powell he wants powell to tell us it will cause a recession unless powell lengths maybe he thought he would be a political but not acknowledging the slowdown is happening because businesses are worried, it seems like he was trying to immunize himself. Hes wrong there is no escaping the wrath of this white house. I bet the president will play the blame game knew. Classically powell is doing the right thing. Hes weighing the evidence hes being prudent, nothing wrong with that. Again, weak employment, we get slower Consumer Spending but what he wont do is cut because were about to get a 10 tariff on 300 billion of chinese goods after trumps meeting with president xi fails next week and i think it will. What does President Trump really want besides summoning powell to the oval office and telling him hes fired by the way, thats something he doesnt actually have the authority to do. Could get in the way of it aside from humiliating powell, what trump really wants is simple he wants all employees to tow the line and under the mistaken impression powell is an employee and works for the president to use an awkward example ideally, the attorney general is supported to work for you but the president can hire him and fire him its an independent position he doesnt seem to understand why. Trump wants powell to say the following. Were cutting rates because were going to be in a trade war with everyone so we need to keep the dollar awake thats something lower rates would accomplish he wants powell to understand the president is trying to make America Great again so keep America Great. Changeup there. He wants to be a team player and be as accommodating as he needs to be, defelt tat the chinese trump has the same attitude, he wants the guy to do his bidding. Powell didnt do that today. Too independent. Thats why i expect the president will keep heckering him and heckering because trump needs desperately needs to raise tariffs all over the place and needs desperately to have lower rates to not forthe the economy fail but the election. Does it matter we heard an analysis of why the fed did nothing. I bet trump will hit back hard he sees powell is not a team player that could lead to disturbing headlines and cost turbulence. Trump will keep escalating the trade war. This dynamic shows why we cant be as bullish as we might like even though today was good news. We cant be because we didnt explode upward in the wake of this bullish statement and press conference because of the rank between these two men. The moment i tell you to buy stocks left and right and i still think it makes sense to be bullish, however, with the president in the warpath you need to be cautious because if the trade war is justified, the longer it goes on as the ceo of pacific told us last night, the longer this goes on, the worse it is for our economy. Brandon in texas, brandon . Caller hey, jim, im a big fan of you. Thank you. I was wondering about the stock Lockheed Martin corporation. I like Lockheed Martin. Good stuck i do think did the democrats win next year, youll recent it. I think its a good stock. Mat matt in new york, matt. Caller hey, coming to you from new york. I bought shares of party city as it hit the low they secured a new helium supply for the next two or threeinveer buying more stock. Should i buy, sell, hold or curl up in a ball and cry curl up in a ball and cry thats been a terrible stock you made money in it you know what you got to do . This is not the retailer i want to bank with i got a lot of retailers my travel trust is sitting on kcoal kohls i say no to party city how about rick in illinois. Caller mr. Cramer, its windy city rick. I thought it was windy sicity rick didnt you think that, sheila. Caller good to hear your voice. I want to hear about a dividend of a stock ive been a longtime holder of a Tobacco Company and seen the growth in the stock at the time. I mainly own the stock because of the strong dividend and not even a smoker but i dig a dividend above 6 recent lly altria took a 35 stage in juul ecigarettes and a sector, the tobacco sector you may not recommend for that reason but considering that, i want to know your opinion if you consider the dividend of altria to be safe or in jeopardy. Its a wellknown company however. Howard willard is good and that yield is safe with a lot of stock. I dont want to tell people that but that dividend is fine. Buckle up cramerica, the race cycle is about to begin but well, between one man and the other guy, all right, thats google, nolen thing. Crowd strength i poed a week ago and you get doubled should you strike while the iron is hot the newly emitted company is one of the most expensive stocks and for the users, adobe has been igniting the flame for decades ill tell you how its up ending every shopping paradigm we thought imaginable except for wicks and the latest unicorn to make the market debut. Should you cut slack some slack, could you resist that one on the first day of trading direct listing, well explain, stay with cramer. Dont miss a second of mad money. Follow on twitter. Have a question, tweet cramer madtweets, send jim an email to mad money at cnb cdot coal un ak doney at cnb cdot come or give us a call miss something . Head to mad money. Cnbc. Com your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Over the past few weeks, weve had yet another rush of ipos including deals that were very well received like crowd strike, a Cybersecurity Company and well received, im putting it light li. It was supposed to be 19 to 23 and instead it was 34, which was insane and started trading at 63. 50 which beggars believe and not only that but crowd strike Ticker Symbol crwd is now 77 and change after hitting 79 earlier today. All right, what the heck are we supposed to do with this smoke show ipo crowd strength has so much in common with other companies i like so much the red hot beyond meat although thats out of control and zoom video is really expensive all three companies had triple digit Revenue Growth is hard to find and the stocks continue to scream higher because people, the Mutual Fund Managers who love high growth are really triple digit growth because you dont get that often look, i was too skeptical say beyond me. I saw the stocks scream higher and couldnt justify the evaluation and i didnt come to you and pound the table. Its nothing to do with evaluation ill come as a crowd strike. Even though i recoil at the threat of recommend something from 34 to 77, actually 79 in weeks. Its very hard but remember, beyond meat was 600 at one point so i mean, out of control. With that in mind, whats the fuss lets plano yoy know your ipo. Its a new Cybersecurity Firm a play on the cybersecurity cloud. Okay so in other words its not just what is known as on premise but protects the cloud the point of the platform is protect your systems on the opini machines, all potentially different places the company handles the intelligence and incident respond services, digital forensics, fire eye meeting palo alto and maybe cyber in there. The real issue is what puts the crowd in crowd strike. These guys use a. I. , Artificial Intelligence to predict vulnerabilities and threats. They have security data and the bigger the treasure trove gets, the more effective their a. I. Alga rhythms become. Crowd strike system is two main asterics the lightweight agent. This is a little piece of software you install and deploys the whole Security Platform from the cloud. Its a cloud based system. It doesnt need to use tons of Processing Power of p. C. Or your phone. Instead, they offer the really intensive computations to the cloud. In this respect, its a z scaler i would like to put them headtohead thats another cloudbased cybersecurity base and i thought it was the boss. It was the bomb. Then this one comes around and i start thinking maybe this is better than c scaler need a headtohead. What crowd strike is the second part of the story . Its what they call the threat grav this is on the cloud where they process, correlate and analyze data from countless devices and machines thats where crowd strikes Artificial Intelligence comes in handy. If you use the software, its limited. So much data is in your p. C. And can only use so much Computing Power. If you use the cloud, its like calling reinforcements cloud strikes try to get as much out of the cloud as possible to the point of using a. I. To detect not just existing threats but future wons and thones and o success. I like another company and the stock hasnt done well, dell they can have the platform whenever they purchase the hardware i want that. Im not the enterprise the customers love it because the company has terrific dollars base key met trick i try to give you the key metric with stock. How much with existing customers and for crowd strike, thats 147 last year, which means they are winning tons of additional they have the fortune 100 and top 20 banks and the company nailed statesponsored hackers remember when north korea went after Sony Pictures for that movie about kim jongun a few years ago . These guys, this crowd strike figured it out and took them less than 48 hours what a markey piece of business that was great story. What about the numbers last year the total sales grew by 110 . There is a description by 137 and still losing money, dont fret here, thats because they are investing in the business. Something that makes a ton of sense to me when youve got this kind of Growth Opportunity you dont stop the growth to be able to show a profit. Thats lunacy in this business the margins have improved if they are burning hundremoney. Down last year the subscription cost doubled their annual reoccurring revenue increased by 120 to 312 million. How about more recent numbers . The guidance for the quarter that ended in april has sales growing at 100 clip so revenue to 110 to 115 . Subscription customers up 104 and annual occurring revenue 108 to 11 111 you say i dont blame them for bragging how much business they are winning or losing should keep expanding by 137 to 141 people these numbers are amazing. That means if they didnt land a single new client, crowd strike would have a 40 growth rate which ho most companies would grow for and versus year and tnot as impressive it is no wonder it exploded higher under the gate while they try to under price the deal, something i hardly approve of. Did think ever learn from lyft so much demand they had to raise the price from 21 to 29 and 34 last year. That was a lowball number because the stock spiked up 86 going to 63. 50 has it hasnt looked back since. They tacked on another 10 gain. I got to tell you, this may be, god, if we werent so rich i would tell you this is the best of the lot but there is a very big but, at these prices crowd strike is super expensive. Were talking nose bleeding expensive. Company has a 17. 5 billion fully diluted market capizati capitalization which generated 150 million in sales. We need to value our price to sales and using last years numbers and selling at 70 times sales, 70. Put that perspective even turbo charge cybersecurity stocks where everybody wants to work like z scaler. Trade at less than 40 times last years numbers only zoom video and another red high ipo is more expensive i got to give you that stuff because you got to know what youre dealing with. Trailing numbers arent that usual. We dont have a great read, its 35 times this years sales still extremely pricey more expensive than anything else i mentioned except for zoom if youre using more consecutive forecast, you get more ridiculous evaluations after all, they have a similar growth rate but zoom is turning a profit and if you use zoom or beyond meat for your comparison, you will get yourself in trouble. Its z scale or octa is far better and they sell at about 25 times there years Sales Forecast if crowd strike got that, it would be a 55 stock down 22 from where its traded thats the comparison i need you to understand. Okay, its much more expensive than z scaler. You have z scaler last week is good hey, man, i think octa is terrific bottom line, look, im not saying crowd strike cant go higher its a fantastic company the fastgrowing ipos are fro y frothy at these elevated levels buying octa or z scaler and cant stomach the thought of what might happen to the stock if something, anything, i wont happen now goes wrong. We got to go to steven in georgia, steven . Caller cramer, bulldog booyah. I like that go bulldogs. Caller hey, since there is uncertainty with microsoft, is that what young investors should focus their attention . Ive been doing a lot of work on microsoft its part of a group of stocks i call the creepers. It creeps higher and higher and higher and today is no different. Its a trillion dollars market cap and deserves it. Why . Because is there anyone more consistent when it comes to growth he is just unbelievable. I mean, look, i would put a black tshirt on and wait at the door with microsoft and just in case he would say a fellow black tshirt guy come on in and i would and i cleaned his desk, maybe polished his phone to ask him a couple questions jerry in texas, jerry . Caller hey, jim, how are you today . Not bad, jerry, how about you . Caller good, doing well. Im calling about one of your favorites. You previously had a ceo on the show and after the may 30th Earnings Report with a weaker outlook for 2019, they dropped 35 the next day im down 30 should i buy, sell or hold zoro . I was very disappointed in that Conference Call i was particularly disappointed they talked about how it was a reset year, they needed that because the sales force needed to be refreshed. That was the first i learned of that i admire the management. I think we have the economy. I did not like being blind sided and i was blind sided and thats why the stock is not going to go anywhere, at least for another couple quarters. I repeat, even though at the beginning of the show remember what i say, its not about friends but making money and i was blind sided. Crowd strike is a fantastic story but i cant justify these levels i can buy a company like octa or z scale. They are cheaper stick with cramer. Coming up, dont call it an ipo. This company is changing the conversation. Slap is creating a new world. And now they are headed for the Public Markets will cramer cut them some slack . Find out when mad money returns. I consulted with your grandmothers doctor. We can do the screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. Iz r ripped through the incredibly bullish