Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 2/28/24
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deserves a disruptive partner so let's get started on what's next for your business step up your innovation at t-model dot com slash now my mission is simple to make you money I'm here to level the playing field for all investors there's always a more good summer and I promise to help you find it man money starts now hey I'm Kramer welcome to man money welcome to Kramer I'll be my friends I'm just trying to make you a little money my job is not just entertain but the educate teach you call me one eight hundred seven four three cbc tweet me at your camera right now it is time to retire the term beat and raise it just doesn't really capture what's happening in fact it's throwing people off because it's too amorphous a concept now that we've effectively finished earnings season I've been thinking about I've been thinking about what the take ways are you're the biggest takeaway is it's the way we report on stocks all of us it's not working anymore it's failing us it's too good too inconsistent too unrepresentative of the companies were the reportages causing people to make snap judgments that turn out to be false judges and it's got to stop when I tell you with the doubt slip 23 points doesn't beat the client point one step set and that's like lost point five five percent we gotta pause we have to figure out what's going wrong with the terminology because we need a new approach going forward if we're going to be able to make money except it's a and be against the current ways of reporting the breaking news surrounding lows and Home Depot and you know both of those companies that's why this will be so cogent when these fantastic businesses reported early morning both were widely pinned on multiple lines especially their forecast we got a few minutes of the quarters a bunch of ballots generated misleadingly negative stories it was quite clear that some of them were the product of artificial intelligence we're talking simple contrast with without any regard for the myriad factors that contributed to the line items in question these stories were not false so to speak they correctly compared the post and numbers with the analysts estimates they failed to include even in iota nuanced explanation though for what was described as a mess by the writers although in fairness the writers have to come up with something that describes the quarter or the future better and you hear that later in the show when we talk to Mark Benioff from Salesforce same thing happened this evening what can I tell you it no longer makes sense for us to try to capture the story by using this beaten race concept now what makes this so bad simple the stocks of both Home Depot and lows have simply been rocket ships since they reported i mean straight up the exact opposite of what you would have thought of when you read those stories and those headlines that came out instantly that's why i am so upset about this the best you can say i guess is that the negative headlines gave you a terrific buying opportunity as the stocks fell quickly off these misleading stories stories you can argue that those who sold deserve to lose money because they didn't wait until the conference calls where they would have heard multiple pauses about how these two well-known home improvement retails were doing and they are doing terrifically yet the headlines this quarter have almost been universally wrong unless it's something incredibly shortcut like an Nvidia where the numbers are so much better expected it was actually obvious let's tackle what went on here at Home Depot before getting to Lowe's first you learn why the stock went up not down in the fourth paragraph of the CEO Ted Decker's opening marks not in the headlines but in the conference call not in the earnings release but in the conference call home game have been docked by excess inventory in 2023 and excess inventory puts pressure on pricing now Decker says quote we feel good about our inventory position heading to 2024 and quote there that's it that's all you need to know that's the most important control but part of Home Depot's earnings trajectory from it's from inventory you have too much stuff then you need to discount it and that's what actually causes short falls too little and you can't meet the man at the end of the quarter Home Depot's merchandise inventories were 21 billion down 3.9 billion or approximately 16 percent versus last year you see that is sensational that was the metric now that Decker says the inventory's of clean them he's no promotions which translates into positive quarters in the future in the forecast they will be better than we're expected until now so what happened with the quarter it's caused a so-called shortfall that the Arnold Southern well for that we have to listen to the executive vice president merchandise and William Bastock who quoted some and let me just give you to write from the conference call unfavourable impacts from weather is you anyway and quote that through things off that's relatively unimportant because Home Depot's not a traditional retailer their Christmas occurs in the spring gardening season the cleanup of the inventory situation will allow them to bring in full-price goods to meet the spring demand that's why it's going up whether yeah real problem but fall to their own yes it hadn't been impossible many days in January to build in this country those numbers would have been really strong try summarizing that and headline try to summarize minus nine in Kansas City when my team was there dinner footballs did cover that football game there wasn't a lot of construction going on at minus nine home people also boosted its dividend by 7.7% something that the traders have done that all the stock market discourse simply don't care about investors do traders are not there even get the dividend how about those here was a quarter that the headlines made out to be extremely disappointing I mean like this kind with a slow down sighted for do it yourself renovators the most important part of the company's customer base again though the problem was the weather January same for sales the client an amazing 7.4% but it was whether C.O. Marvin Allison told you the professional numbers were flat which unless you know the company would matter it's real important though and again concentrated what was expected William bolts this time the executive vice president merchandising pointed out that building products were terrific quote this was our best performing area with positive comps and building materials and quote that's paint that's right well that's women all doing well big margin items and loads is adding a loyalty program for the spring it's called my Lowe's rewards will be available nationwide in March just in time for gardening season that's meaningful stuff not captured it's why the stock keeps going higher okay now and we know things were actually good not bad the headlines were wrong at Home Depot most what did we learn that made both of the stocks reverse and fly higher beyond this I think it's the virtually unlimited amount of equity in homes according to Home Depot's Ted Decker 50% of homes are over 40 years old prime renovation age a ton of money's made from renovation and Lowe's and Home Depot fundamental housing shortage of between two and six million homes will keep those prices high sure would help if mortgage rates were to come down but Decker says it's more important the customers have quote tremendous potential an untapped balance sheet and equity position end quote by the way he's citing 10 10 trillion dollars added just during the pandemic in value wow again that's the stuff that tells me get long you won't go wrong and that's just exactly what investors did it was a great buy point for both Lowe's and Home Depot generated by the headlines but you wouldn't know it unless you did your homework and had listened to the conference calls man money there's always to take what today it happened again it's that I think that the next rocket ship might be TJX the all-price retailer behind Jay T.J. Max and Marshall's oh you would know from the headlines which were dominated by a week forecast not again like you know what I told you about what's gonna happen with Salesforce later on that kept the little the stock they had little metrics don't they don't know two things though first the best indicator of what happens at TJX the stock is the availability of high quality merchandise that they buy at insane discounts from cash trap merchants and listen to what the low key CEO Ernie Herman had to say about all important rhetoric quote availability of quality banded merchandise continues to be outstanding end quote TCX is in a quote terrific position end quote to buy that merchandise later on he continued quote at the end of the day there's more goods out there than we can handle end quote the closure of 150 Macy's locations that we learned about the other day will be a bonanza for TJX still one reason why we own this one for the trust so there's a lot of excess merchandise and the Macy's deal they are going to be great here's the bottom line I have no illusions about this issue it's extremely unlikely to headline process will actually change the misdirection will continue but my job is to entertain educate and help you make money and the best way to do that right now is to do the homework lists in the compost well shoot against the headline writers they're in such a hurry they just can't get it right but you on the other hand can take the time to understand the actual situation and make the best well informed and hopefully most lucrative investment decisions clark and Marilyn Clark who's that booyah is TJ group that is the WWE with the Vince McMahon out and the new streaming arrangement or role are we going to the top rope or are we getting pinned holy yeah kids got worse and suddenly I tell you this is a tough one and I it's involved with endeavor which is really hard to understand all I can tell you is that I think that the stock has come down so much and I know just so you know I know from people really I will go as far as to say who first told me that this one was great why don't we just use like like Strel Selenik he said that the that with WWE is great I've seen it I know how many people are excited about it I got to tell you it's down too much I like I like the kids attitude sorry positive attitude for the kids all right look the headline writers are in such a hurry to jump to conclusions about a company search report that they get it wrong but if you take the time and you do the homework you listen to the cops go you will make money off their mistakes isn't that a great opportunity a man by tonight Salesforce turned in his quarterly report after the bell despite falling on the news because of a forecast I'm getting a sense of how AI is pushing the company new heights with CEO Mark then a story you might have missed garment reported a strong quarter that went seemingly unnoticed I'm digging in to see how that's possible I think this one can keep running and what should you make a Salesforce I have snowflake get given the quarter all I can say is I'm blowing away we're gonna speak to both the outgoing and the incoming CEOs it's no flake holy cow I got to process this stuff stay with Kramer don't miss a second of mad money follow @chimcramer on X have a question tweet Kramer #mad mentions send Jim an email to madmoney@cnbc.com or give us a call at 1-800-783-cnbc miss something head to madmoney.cnbc.com nervous about using public Wi-Fi imagine being able to turn yourself invisible to hackers on public networks having McAfee+ is just like that with the click of a button you can disappear from hackers trying to steal your data and snoop on your internet activity browse shop and bank confidently knowing your privacy and safety are protected get all-in-one protection with McAfee+ and learn how to protect your everything at McAfee.com/podcast now is the time to accelerate innovation T-Mobile for business is powering Formula One Las Vegas Grand Prix operations and epic fan experiences with secure reliable 5G connectivity because an event this big and this fast deserves a network that can set the pace see what our 5G advanced network solutions can do for your business at T-Mobile.com/now view 5G device coverage and access details at T-Mobile.com what do we make of these numbers the course sales force talk get hit nip there I was trading the cloud software class and they went over late stocks up 83% over the past 12 months is of tonight that's important thanks to new AI related products that can help clients do a better job of serving their own customers but tonight's sales source reported headline numbers strong modest top and bottom might be higher than expected four-year-olds forecast there still was enough for the skeptics to nitpick about sure sales force roll out a 40 cent quarter given first time added 10 billion to buy back a lot of money but their operating margin came in a tad like for the quarter out your revenue guidance a bit we couldn't expect in response the stock is sold off in the after our trade well I think most of that's because it had run up into the quarter and I said for animals kept raising price targets it's a 14% year indeed general sales force these post earnings pullbacks are buying opportunities why because forecasts are always very very conservative but you're not taking it from me let's check in with Mark Benioff he's the co-founder chairman CEO of Salesforce to get a better read on the situation mr. Benioff welcome back to man money Jim hello from New York City it's great to see you I wish you were down here would be terrific because we can talk about how these revenue numbers are beautiful you got a lot of new clients and we can talk about co-pilot because you just announced it and I'd like to know already what's the what's the fervor for it well come on over to Salesforce tower Jim you know where we are and I'll tell you I've never been more excited about what's happening right now in our company especially with artificial intelligence just like you said data cloud it's amazing what is going on with our incredible new product line we're seeing the fastest growth of any new product that Salesforce has ever had ever with our data cloud now you talk periodically about billions of queries and then trillions of queries over lower periods of time what is it like now with the queries because it's actually a better measurement than trying to figure out whether you said 8% revenue growth 9% which tires me I'd like to know about the actual customer experience well you can see Jim we had a phenomenal quarter with record revenues and profits and cash flow and we're projecting incredible numbers for the year especially our cash flow number is just phenomenal but Jim what I'm really excited about is the transformation that has gone on in the entire company over the last year you can see that in just the equity performance over the last 12 months is beyond my expectation I'm sure it's beyond anybody's expectation and if you look at where we were since we've well first went on the show in 2008 well I mean I don't think either you or I could have ever imagined what has happened with Salesforce I mean we just finished up a year at almost 35 billion dollars in revenue and now we see us moving forward as the third largest software company in the world delivering tremendous amounts of customer success and Jim it's really about exactly like you said customers giving them what they need right now and that is the ability to manage this huge amounts of data that they need to deliver high quality artificial intelligence now let's talk about something that we also would not have mentioned in 2008 big buyback huge dividend now those are something I expect usually from mature companies but I've seen fast growing companies get them I mean are you a hybrid now well some people say oh my god a divin who doesn't know what to do with the cash well Jim I think you know that we have many stakeholders at our company not not just our great Ohana our employees our customers but also our investors and we're trying to serve everybody and that means that we have to be able to you know make sure that we don't suffer any major dilution which is why we're buying back and also we're giving back with our dividend I think this really speaks to the size and scale and quality of the company that we've built with Salesforce all right so tell me about how your co-pilot is different say from another co-pilot that I use pretty much every day well there's a big difference Jim because our co-pilot uses our customers data to make decisions that's incredibly important as you know Salesforce is built on a rich fabric of data and metadata and that data and metadata that serves so many of our customers whether it's Amazon or whether it's IHG or even OpenTable or even you know an amazing company like Schneider Electric all of these companies their data and metadata is a woven fabric throughout their whole company that really illuminates their customer relationships our co-pilot is deeply integrated into that data you know we already have tremendous user interfaces at Salesforce you know that Jim our sales cloud our service cloud our marketing cloud even Tableau even Slack these are amazing ways to talk to that data but we have the ability then to go inside the data with the artificial intelligence and then provide unique insights because that data is living with us every single day and that means that we're going to give those customers an incredible experience in fact I was just using OpenTable and you and I have made restaurant reservations before we've been showing up at a couple of the same restaurants and when we get there you know it's always a great experience but sometimes getting there it's a little bit difficult because you're trying to work with that system it does it really know me is it really able to understand what I'm trying to accomplish with our co-pilot we're really seeing a level of artificial intelligence that's so usable so easy to understand that our customers are having these amazing breakthroughs and their ability to run their business an incredible new way well let's let's pigeonhole you for a second like most of the analysts were doing certainly all the journalists you use a number that talks about how you're going to be up eight to nine percent revenue guidance and people say oh no we want nine ten and how do you appease how do you a child those people because what I worry about is there's a whole sheet of unbelievable numbers then there's an eight and because you have an eight suddenly you're not Mark Benioff you're someone else what do I do about that well Jim it has been an amazing twenty five year run with Salesforce and here we are at this extraordinary revenue level and we are growing at a size and scale that means that we're adding huge software companies on to our company every single year so I mean we're the third largest offer company in the world we're now the second largest in Japan we're the number one enterprise apps company in the world we've passed SAP it's an amazing place to be and at this size and scale I'm very grateful for the ability to kind of have the revenue growth that we have but also the free cash flow guidance that we're giving for this year which will be up to over twenty three maybe twenty four twenty five percent that's amazing that's the real number do people understand that that's the real number that free cash flows have I mean that's it the company I work at what we talk about is free cash flow because that's the number I got one that one last question Schneider electron okay well you're twenty five free cash flow Jim I understand shit that's pretty awesome I think and I'm pretty excited about all of these I think you can talk about margin is up a thousand basis points for the year Jim is amazing I was just going to ask about I see I she of course a big hotel you're six of the world they want Salesforce oh yeah they're absolutely you're just no doubt about it open table but why did why does Schneider need you I mean you know what they're not as they custom they're not individual facing well let's talk actually I H G and the most go to Schneider I H G has hundreds of millions of consumers who are working at our service and working with our co-pilot and also working with our AI with Einstein as you said Jim is doing a trillion transactions a week the most successful artificial intelligence implementation the history of enterprise software that does not only predictive but generative as well and by tying together all of this data and metadata we are really delivering to customers like I H G this ability to unlock all their trap data you know I think that a lot of customers use all these amazing systems and we work with all these amazing companies like snowflake and Databricks and Microsoft and Amazon but a lot of these data sets they're trapped you know they're not people who are using these every single day they're done by used by data analysts but our customers who are in our sales cloud or service cloud or slack or all these things we have millions and millions and millions of users we're able to then unlock that trap data by bringing it into our data cloud throw we call zero copy zero copy means that we're reading all those databases and then bringing it into our metadata framework and that is what you're going to need to make artificial intelligence really work for you well you're not going to have the AI success in your co-pilot if you don't have the data and metadata to deliver the intelligent that copilot absolutely Jensen Wong's explained that to me and you've explained it to me and I agree with you and the quarter was excellent and I'm very grateful as a charitable trust owner I get the dividend and I get to give it away so thank you so much Mark Benny of co-founder chair and CEO of Salesforce good to see you sir thank you good to talk to you their money's back here to the right coming up check your GPS for where this stock is headed Kramer explains why a familiar name just won't stay down next now is the time to accelerate innovation T-Mobile for business is powering Formula One Las Vegas Grand Prix operations and epic fan experiences with secure reliable 5G connectivity because an event this big and this fast deserves a network that can set the pace see what our 5G advanced network solutions can do for your business at T-Mobile.com/now view 5G device coverage and access details at T-Mobile.com You might have missed it in the flood of our recent ports last week but last Wednesday we got a remarkable quarter from Garmin of all things the personal electronics maker you probably know for their navigation systems in response the stock is up really 9% in single session it's just kept running all the way up to 137 as of today basically it's highest level since early 2022 I've been following this one for as long as this shows been on the air and I've generally been a fan as the stocks giving you many years about performance but Garmin's fascinating because it always feels like the deck stack against them most tech hardware companies particularly the consumer focused ones are supposed to have a limited shelf life their stocks can get hot but only for a while before they come plunging back down anyone remember GoPro oh okay there's still a live but the company's down worth less than 400 million that's almost 12 billion to peak nearly a decade ago when I saw a goat wearing a GoPro one instead while riding a surfboard in Hawaii and I said time to sell stock consumer electronics companies are always racing and thrown out of solicitances even if it's even harder for independent obviously Garmin therefore competing at the most powerful companies on earth they got a number of smart watches for example that are against the Apple Watch and their navigation systems need to be better than the navigation you can get directly from your phone for years I see my Garmin should be on its last legs yet kind of like Steven Seagal playing Mason Storm in his seminal work Garmin's hard to kill during the pandemic Garmin became a play on the great outdoors the only way to take a vacation safety under covid and so as people have vaccinated the stock peaked in the second half of 2021 and then it got eviscerated by a time in bottom on October 2022 it had fallen more than 57 percent from its highs that's been when it races the entirety of its covid area again as we know that that happens in the last year and a half though the stock's gradually ground its way higher again from the mid 70s to 137 and that's especially true over the past few months so how how does Garmin do it how do they stay relevant keep putting up really good numbers let's start with last week's terrific quarter there was a strong top and bottom line beat with 13% revenue growth four of Carmen's five core segments came in better than expected only their order division fell short even as it was up 54% year over year thanks to the app tradition of jail audio which makes speakers and other audio products primarily for cars but also boats the real strength was in the fitness and marine units with the largest business outdoor doing pretty darn great on top of that Carmen's gross margins came in at 58.3 percent up 130 basis points year over year bestly highly expected the property market was even more impressive it came in 340 basis points higher than anticipated that's incredible people and that translated into a huge 32 cent earnings beat off a dollar 40 basis 27% increase versus the previous year but it wasn't perfect Garmin's four-year forecast was a little more mixed the revenue guidance was excellent but management was more cautious about its operating margin and its earnings per share outlook which both came in a little light and the full year free cash flow guidance was outright disappointing now I'm not too worried about the imperfect forecast of because Carmen is a long time serial practitioner of UPod under promising over to Lara clearly the buyers agree with me plus coming out of modest dividend boost got 300 million dollar buyback authorization which is a nice sign of confidence even as even these moves are big enough to move to you so those are the numbers but how did Carmen generate the numbers that's the story frankly it's not that complicated like so many gadget makers Carmen suffered through supply chain constraints in late 2021 and most of 2022 when the cops go last week management said they entered 2023 still very cautious because of those factors but quote during the year component lead times and availability continue to normalize while shipping bottlenecks east end quote those factors combined with healthy demand for the company's products reduced inventory levels and boosted the company's free cash flow substantially look I think the real story here is simply about Garmin's durable demand which comes out of the fact that these guys never stop innovating take their venue three smart watch that was released last August it gives users a complete picture of their health from sleep trends to activity tracking the venue three won three separate awards at this year's CES conference including the best of innovation work for for outstanding engineering people buy stuff like this because of that within the outdoor segment Garmin called out new underwater diving products like it's recently released scuba smartwatch that there's Carmen's e-track series of handheld gps systems putting a new version which comes with a solar charger now look I love my Apple watch but if that that thing runs out of juice the wilderness it doesn't navigate to anywhere and it would it probably just be like the one that I have your requirement which is not plugged in there was some great commentary on the marine division where garments technology can do things like help you find fish now that's how I know the company without it let me tell you something you'd be fishing for fish where there ain't no fish while the overall marine industry slowed last year I got on and outperformed the rest of the space taking market share thanks to great products like their new sonar mapping gear and deep water imaging capabilities which I want to get this summer the smallest two segments aviation and auto both had big wins with original equipment manufacturers the aviation business had one of the one integrated flight deck products selected by a vertical take-off and a landing aircraft company that backed back by every area that's a giant Brazilian company but a lot of the vision saw such a significant year of your growth thanks to increased shipments to BMW high quality keep here in that right mostly domain controllers that help manage all the electronics in a car in the end garments still the nice clean gadgets story that we've known it for for roughly two decades the story got noises during the COVID era but they are now over that they've gotten over their supply chain issues and the company's down the strongest image reposition has been in ages but the real story real story the reason it's going to be can't be killed it's all about innovation and compelling products they can help you with your fitness training your outdoor excursions your round of golf your fishing trip guarmin doesn't need to make the best products for everyone they didn't make the best products for each particular niece they're focused on and that's why they never seem to get steamable by the mega caps they're clever that this move the stocks got more expensive so 25.5 times this year's earnings estimate that's a little I don't know but I'm okay with it kind of guarmin is there's a premium valuation as I think they'll again be able to beat earnings estimates so let me give you the bottom line on what I think is actually a pretty exciting story guarmin is the kind of company that could have been a flash in the pan because it's consumer electronics business it's so darn competitive but the company's so well run is such a consistent innovator that it is managed to keep winning year after year and now they got their supply chain issue sorted out I bet that the stock has more room to run okay let's go let's take calls I think we should take some calls let's go to to Steve in New York Steve hi Jim thanks for taking my call of course of course my questions on Nividia or no I'm sorry Adobe my questions on Adobe and the recent sell off and I was wearing your thoughts on how I've been monitoring didn't I hadn't just say to Ben Stoto today when we were going back and forth you know Ben likes to talk to me interrupt me actually it's the opposite I think that Adobe this is the right level to buy it's come down a lot tomorrow sales force will be down because they didn't blow away the number that gives you your opportunity because they kind of trade together and I want you to take it now I want to go to Harrison in California Harrison hey Jim how you doing all right how about you pretty good thanks I'm just your opinion on the on the ultimate Bitcoin production my first step okay well my strategy is a way to play it I prefer a way that I think like you know let's say your kids and your grandkids would know which was just go through the ETF it's wrong by real people good thing you really just went in the end you want Bitcoin you probably want to theory them I bet they'll do one for that that that's how you want to play it now that it's post-COVID overhanging is over Gorman's innovation and ability to make compelling products is shining through again I think the state can keep winning into the future hey much more than money had including my exclusive with snowflake with the cloud stock sinking on the news of a major shake-up in the world I'm getting all the important updates with both the outgoing and the incoming CEOs they don't even hear about the end of Apple's EV corporate super so where I come down the issue I'll give you my king and what it calls rabbit products right this is the lightning razzle stay with creeper what the heck just happened to the stock of snowflake the cloud based data analytics software play so it's not probably 20% after hours trading tonight you know I like this one snowflake shares have been roaring since the lows last October so in the corporate port after the close it was coming in hot you wouldn't know it from the action but the actual results were real good clear top and bottom line beat earnings per se are nearly double what the analysts were looking for plus snowflake brought in a ton of new business while practicing pretty cash unfortunately management's guidance did fall short of both the current quarter and fiscal year but I think the real issue is we found out the legendary frank slubent is retiring CEO effective immediately passing the reins to street art rama swami previously snowflake senior vice president of ai so what do we do now let's go straight to the horse's mouth with frank slubent chairman and alco eco as well as successor incoming co street art rama swami to learn more gentlemen welcome and make money thanks jim all right so thank you jim frank i think i'm probably only one not surprised you told me this was going to happen you told me what you do is you go in you get a company going like you did with data domain like service now and then you move on because you give it all she's got so this is the moment right you had a chair but you feel like you've gotten to where that's to be yeah it's certainly that it's but it's also having you know our great opportunity you know to have cross paths with somebody like street art that you know we're thrilled to bet that we're able to make this move and affect succession in this way i've been part of many successions in the past and they're difficult and hard and challenging so i'm super super pleased to be where we are today all right so street art i i know you as somebody i know you from a close friend of ours admittedly but you you came in at 1.5 billion and add sales he took at the hundred bill i think that's not so bad but big shoes here because when frank retired from service now was a 67 and then went to 759 what are your plans going forward to keep the momentum um you know frank and uh our founders have built snowflake to be the trusted efficient cost-effective enterprise data platform uh that's a pretty good base to build on top of but what's really exciting about the current moment gym is that we have so much ambition to do more whether it is applications running on top of snowflake or of course using the part of generative ai which i've been focused on for the past year to democratize access to enterprise data to have even more people be able to get at the data quickly to get value from it so i think there's a huge opportunity in the world of data applications and ai that'll keep me busy for many years to come let me ask you what do you think about the idea that what happens is that people say you know what before i spend hundreds of millions of dollars buying unbelievably great cards from Jensen mom maybe i want to find how it works find out whether i can do something with the with the ai and see whether the expense get a return on investment or not have you been able to help customers already figure out whether that's the right thing to do well so that's the magic of how we approach this problem when we rolled out you know what we call snowflake cortex our ai layer we did all the hard work so our customers didn't have to go buy GPUs or go to other complicated things if you can write SQL you can use cortex to access language models similarly people are very excited that without having to write a line of code they can extract structured data from documents we're also working on an ability to literally talk to your data where you ask questions in natural natural language and underneath we do the work we're on the SQL queries and return that data back to you and so what you know this is without any commitment from any of our customers that's the part that really excites them they know the generative ai is going to have a big impact but they get to try it out with these products without needing to make heavy upfront investments all built into snowflake the platform and that's the thing that they're really excited by we literally have hundreds of customers that are on our wait list for these products to hit GA. That is very important because people are concerned about the forecast but Frank legend early on may have money you once told me when I said that forecast looks like you said in bill Belichick fashion Jim the forecast is the forecast which told me please think be a little more open-minded now Frank in the rise of the data cloud you did predict that this would happen you said you basically laid things out without being knowing that we were going to have generative ai at the time but this is a different company from what you went to but it's got billions of dollars in revenues as it's typical versus what you came in is there enough half to be able to make people say you know what before you go by we're the right shop look you know this this is this is really a great time and you know the conversation you know but I have said the guidance is the guidance you know these things are just you know blips on the radar you know you got to just watch you know what we do and what we report giving guidance to for consumption companies obviously is notoriously you know challenging but I think you know we we are in a in an absolutely fabulous place we are you know the company you know to come to to enable and empower all your workloads all your different personas in the enterprise and really extract maximum benefit you know from your data estates so you couldn't be more excited to be sitting here or treat our today because the future is is super compelling to us okay just read our this has historically been there is a seasonality for your business I'm hoping maybe it gets unseasoned so to speak this quarter has not been always the best of your quarters can that change I mean I don't really understand why it's seasonal maybe you can explain that I mean holidays are always tricky and you know there was almost like an extended two-plus week holiday this year and in spite of that we came in pretty well with Q4 and then in terms of guidance you know it's based on historical consumption data and as we know last two years I've been tumultuous and we've also rated last year more than than sort of previous years but if you have a ton of stuff that's going to be hitting GA everything in AI but also like transactional stores and applications on snowflakes so there's a lot of you know upside there but the forecast is conservative well look I want to I'm glad you said that because it's important for people to know that it isn't a star that you guys are pying this guy you're just the opposite frankly I'll give you the last word only because I just you know I enjoy your work tremendously you have said over and I go ahead and look Jim I like three years I like for like to give it all would you go back or is this it for you are you finally done Frank now I'm finally done Jim I mean I don't want to be one of those quarter but actually there's a note how to get off the field you know I'm making room for a bigger and greater talent wow well Frank is still going to be chairman on our board and I'll be talking to him regularly he's a he's still a big fan of the company and all of us and we are all truly truly grateful for what he has made snowflake to be well I'll tell you I think I'm thrilled to be that you came on introduced you know this you know treat arts great to meet you I hope you come once in the future Frank Sloopman I hope to see you again sweetheart rama swami congratulations on becoming CEO of snowflake thank you gentlemen thank you thank you that's Frank Sloopman's chairman now of snowflake that CEO and treat our rama swami CEO of snowflake man muddies back in the morning coming up Kramer takes your calls and the sky's the limit it's a fast fire lightning round next before we get to the lightning round I need to let you all know how fired up I still am after the investing club's annual meeting this past Saturday on top of my state of the market member Q&A and talking about the club's portfolio we had this special segment going through the history of mad money with our very own executive producer Regina Gillian on stage with me first time sharing some behind-the-scenes secrets and storage moments two decades of the show oh it was by far my favorite moment you need to see it go behind the scenes with this limited time wall for to the club catch the highlights of the whole meeting on demand with Jeff Marks it's terrific scan the code go to cnbc.com/slash-sale to learn more and now always it's time there's a little light around there but yes i think it goes right by the way i tell you the name of science is going into my set beginning i'll play this up and then the lightning round is over are you ready sking dad cover the light round cameras light up so i'm a key that's made a key hello Kramer how you doing i'm doing well Keith how about you oh i'm so blessed man all right hey well i got a question for you about a stock that ironically ran up big the past few days right and i want to know with the company's improvements to their bottom line and using interest rates in the latter half of this year if Wayfair is a buy you know Keith if you had asked me before saying those things you said i would have said the exact same thing it's doing exactly what you describe our viewers are so smart bingo w and i didn't used to think that way i'm going to tag North Carolina please tag who y'all Jim i hope you have a great day i'm having a good one how about you i'm hanging in there all right i've written a stock i'm calling about up down and now backed up again i love what this company does and they've released a great earnings report this week at these levels what is your opinion of transmitting Oregon Transplant very important they did have good numbers i'm familiar with them because i chair that with my wife Lisa the the annual gala for the baby's heart from frick Columbia Presbyterian Oregon transplants are incredibly important i think these guys are doing well let's go to Bonnie in California Bonnie hi Jim vuya vuya what's up Bonnie thank you for taking my call i'm a founding club member yes and i was wondering what are your thoughts on bake of america i think it's a very inexpensive stock and spreads a buffet stop by the way it's doing well ten times earnings you're not going to get into 20 times earnings it is going to go up over time it yields almost 3 percent i like that i like that Brian Moynihan doing an excellent job let's go to Dave in Arizona Dave hey Jim a big warm weather vuya from Phoenix uh well i guess kind of a yeah weather vuya i like that here too vuya what's going on man hey um i've been in this talk about a year and a half um just want to know what you think about a long-term play of longer term play on it it's Westville International i don't know what happened at last quarter it's good it's very expensive now i i'm okay with Westville oh jeez and that laying jump is a conclusion of the lightning round the lightning round is sponsored by charl Schwab coming up apples hit the brakes on the electric car but Kramer's not switching gears on one of the streets most reliable performers next i keep hearing negative chatter about how apples giving up on its electric cards somehow bad oh it just puts them deeper in the hole the hole of no origination the hole of a stock deserves to be down over 5% for the year blah blah all i can say is people love the trash talk apple and scare you away from one of the most consistent long-term winners out there let me tell you how i look at this i think apple is waiting for more widespread acceptance of the electric vehicles before they took the plunge even as they did keep a team on case for years they probably assumed that more and more people will go electric in ever-increasing numbers and that hasn't didn't happen the movement pending cheaper cars bigger subsidies and more faster charging stations has indeed stalled out think about the millions of models lost by the way no alphabets or times vehicle business and then remember how few areas even allow driverless cars is clearly a sucker's bad general motors has been billions upon billions of helping cruise their own driverless business yet the town they were most pilots here for Cisco suspended the technology after single gruesome accident never mind the car accidents are one of the leading causes of death the United States it just doesn't make national headlines when a human's at the wheel the guy i spoke with for gm kyle vote the head of cruises was so confident when we wrote around town together two months later cruises driverless carpenter permits suspended vote resigned self-optimal situation where the heck we want to get involved in this business which brings me back to apple to the critics do you really think that this is the time to go all in on self-driving electric vehicles alpha wanted a piece of this way this and yep way most just lost them porches gm wanted a piece of it cruises has been a costly disaster for them do you really want apple to follow in their footsteps and flush billions of dollars down the sewer of self-driving cars i'll pass look i understand how apple gets pigeonholed as a handset maker and there are plenty of people who believe that a car would make apple s hostage to the phone market i was gratified today to see that the level headed wamsi mohan put out a piece about apple sky high customer loyalty and a refresh cycle it was somewhat positive wamsi noted that apple's regaining mind share and china that matters when the vision probe price come down it'll be more popular that matters too but at the end of the day if you're looking for reason to buy apple right here right now nothing does stand out including this poor sap that i love it's rudimentary this is where you need both a leap of faith and a leap of taste that apple's going to make something it has something that's better than you think it is something that justifies the existence of the product and makes it soar with most companies i wouldn't necessarily be willing to make that gamble but apples are in the benefit of the doubt to buy the wall and look i say this is someone who runs a child trust with an open hand and you can see exactly what we've done with apple if you're a member of the cmec investing club like i always tell you we just own app we don't trade it something that's made us fortunate for charity over the years i don't know when the wall will end i don't know what this talk needs to revisit the low 170s maybe even the 160s i don't know what i do know is that you're probably holding your iphone while you're watching right now or maybe you're watching on your iphone and i said i bet if i said to you right now that you can't find your phone i think even though it's in your hand you might have lost it you might have a mini panic attack apple stock is down apple the company it's working working for you and i bet it'll keep working until the stock turns around which has been the story of this one for more than two decades i like to say there's always a bull market somewhere i promise try to find it just for you right here on mad money i'm jim cramer see you tomorrow last call starts now all opinions expressed by jim cramer on this podcast are solely cramer's opinions and do not reflect the opinions of cnbc nbc universal or their parent company or affiliates and may have been previously disseminated by cramer on television radio internet or another medium you should not treat any opinion expressed by jim cramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion cramer's opinions are based upon information he considers reliable but neither cnbc nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full mad money disclaimer please visit cnbc.com forward slash mad money disclaimer tired of getting sketchy text imagine having a lie detector that 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