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 8/8/24
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There's always a more market somewhere and I promise to help you find it. Man money starts now. Hey I'm Kramer. Welcome to Man Money. Welcome to Kramer America. I was building my friends. I'm just trying to help you make some money. My job is not just entertained but to educate you. So call me at 1-800-73-CMC. Tweet me at Jim Kramer. But we can bemoan the economy. We can worry about housing. We can fret over mortgage rates. We can debate when and if the Fed will cut interest rates or not. We can rule the day big institutions discovered the yen carry trade. We can gamble on whether our country is headed for a recession or we can overlook that whole shooting match and just pick the stocks of tremendous companies and hold them for the ride of a lifetime. Unfortunately the former set of woes controls the discourse right now. Sometimes that's good like today. When we got an encouraging jobless claims number this morning then the average is roared. The Dow getting 683 points has to be jumping 2.3 percent. House of pleasure. And the NASDAQ searching 2.87 percent. Beautiful and gross suspects and magnificence of separately Apple and its suppliers were suddenly able to free themselves from the shackles of gloom and rock at hire. It was the best day for the SB 522 and big cap tech led the session. But if the sellers truly disappeared for the movement maybe but stock prices have become so dependent on the macro data, the carry trade, the Fed chatter that it's impossible to give you a bad answer either as I've told you over and over and over again that corporate America is doing much better than anyone would expect at this point in the cycle. No I do know this. Many people correctly now recognize that all stocks live under the tyranny of larger macro forces before we decide to buy something we're supposed to think hmm we needed what's going to happen. It just rates today. I mean if they drop it, mortgage rates today well you know today fell to 15 month low. Isn't that why the market really went up? Well there'll be more housing turnover. Well there'll be more rehab and remodel especially to do it yourself. See we try to divine if a quarter point decline in the Fed funds rate will motivate people to buy new cars. Maybe boost GM or Ford or perhaps we just buy an ETF that gives us a piece of economic move. Some sort of phony industrial model and put together to earn fees for the promoter. We mold the notion that there could be a pick up in semiconductors of the economy salaries. So we buy an ETF that has semis rather than just going after Nvidia for AI or Texas Instruments for the Internet of Things. That is the world the big institutions deal with. A trading oriented short term guessing game based on the data point of the day. A style that so many now find irresistible. If you're not careful they're thinking it becomes your thinking and you get blinded not by the light but by a very dim bowl. Oh my have money. I like to approach these very differently. I don't want to be bound by the four walls of the PMIs, the PPI's, the PCE's, the GDP's. We don't want ETFs we'd buy the bad along with the good and we certainly don't want to worry about every tick in interest rates. We don't want to be blinded by that and you know why? One because that's a sucker's game. You're letting the macro control you're thinking just like the big boy hedge funds. You're checking your brains at the door but two, two is Eli Lilly. This one in Lilly reported a quarter with 11.3 billion in sales when Wall Street was only looking for less than 10 billion while raising the four-year sales guidance to 46 billion for three billion dollars above expectations. In large part thanks to these wondrous GLP-1 drugs. It was a tour de force quarter. One where they highlighted so many different indications for moongiaro and zep bound those are different versions same stuff that you have to believe your insurance will cover. The results are so good that the insurance genuinely may not have a choice even if they need to pay through the nose for the stuff. Lilly's results had nothing to do with mortgage rates or J-Power or drug ETF that might have captured gains if you chose to play it that way much better than just go with Eli Lilly best of breed which has been the obvious one for quite some time. It's not like nobody saw this coming. If you went with best of breed you were up 9.5 percent today. Now I know this morning I was very concerned that movie could miss numbers. I tweeted at around 4 a.m. after the disappointing earnings we got from Lilly's sole competitor Novo Nordus yesterday. I knew that Lilly's drug causes you to lose more weight than the rivals but I also knew that the expectations had gotten so high that the stock of acting so terribly that I figured there could be something else afoot. But you know what I chose to stay the course of the travel trust because of my faith in CEO David Ricks and the company that is Eli Lilly. My faith was rewarded not only with a blowout of incredible proportions but also with a series of statements from Ricks that nullified so many claims from Lilly's aspiring competitors often promoted by charlins on right here and how they're working on better GOP dash ones. Right now we're out against Lilly's competition. Lilly's anti-obesity anti-diabetes drug is a once a week self-injection that doesn't hurt but there are commercials on there that make it look like it hurts like the dickets lies. We know that one competitor says it's experimenting with the GOP dash one drug in pill form not a shot. Well so is Lilly. We know there's a competitor with the GOP dash one that can check less frequently. Lilly's working on that too. We know that there's competitor with a pill or a shot that's hardly only fat and not all part of us. Well you know else is working on that Eli Lilly. But what many learn today is that Lilly's ahead of everyone in this business and in this business let me tell you what happens. The tie goes to the incumbent. The FDA isn't going to bless lots of products from competitors faster just because it's worried about any trust. They don't care about any trust. That's a different brand of the government and Wall Street isn't schooled in the process of drug trials and drug approvals. These people are pushing these rivals. They don't understand that a company that doesn't have much of a reputation with the FDA will have a harder time getting something approved and some of these smaller operators can't afford that delay. After the Lilly cool I realized that there are so many trials going on for so many indications that even up this month the stock might not be for sale. It may still be able to go much higher especially when Rick's talked about how only Lilly has the manufacturing scale to make enough GOP dash one drugs to meet the demand. Lilly has committed to more than $20 billion dollars worth of facilities are upgrading them in the US and Europe. No one else can afford to spend like that. So you have a company with a revolutionary drug that has multiple indications. A drug where they have both the lead in all formulations and the scale to stay is the top dog. We just have to hope that the Justice Department allows them to benefit from the billions they poured into the franchise rather than penalizing them for being so far ahead of the competition. I think they're less likely to be targeted than the big text this administration loves to go after because without patent protection no drug company would ever develop anything new. Look today was a very good day for everything. It's a day we'll look back one maybe 24 hours from now and perhaps say "hey you know what we're done with the detritus of the Yen-Carri trade." Maybe it's the day where we restore the dethron mag 7. Whatever you want to say maybe even the dragon and vidic can come back to life. I just come back and say that if you pay attention to the real world you may find yourself taking it to P-1 and want to buy the stock of you out of it. But if you pay too much attention to the financial world you might have convinced yourself that this stock wasn't worth it only thanks to the flood from the Yen-Carri trade and the collapse of the state of the economy. The all-holy macro would have led you astray and kept you out of this terrific gain. That's why I like to find the best companies for you with the best stories for you and just stick with them through thick and thin. Let's take calls. Let's go to Kior in New Jersey. Kior. Kenny Kramer, how are you? I am doing well. How about you Kior? Pretty good. A quick question. I hope first of all my son is watching this. I always encourage him to invest in early age but here's my question. Deckers outdoor. What's your thought on this one especially for long term, say five years? Well I have to tell you that these stocks are they are fashion and fashion goes in and out. That said I think Deckers has at least another year in it but I can't say five, six years because it is fashion and fashion is not sustainable. How about Richard in California? Richard! Hey Jim, how are you? I'm good. How about you Richard? Good. I talked to you maybe a few times in the past year, year and a half and I just had a call that and Paul revered the stock one more time. I just got off the earnings call of this company. It's amazing. Enormous growth in all their metrics. Their core business is growing fast from insurance companies sending patients out of expensive hospital settings to outpatient centers. Company developed AI and detecting cancer is an absolute game changer. The United Kingdom has their AI induced for population health and the student will enter the US. It's hard to imagine what this will do to the growth of the smaller company. Their AI would be licensed and sold endless healthcare companies in the US. In 35 years in investing, I've never seen such a great investment as Radnet. Hi endorsement. What is the stock? I didn't hear the stock. Radnet. Okay, Radnet is for our good company. I've had them one. I think the world of them. I bought for my channel, which also about GE Healthcare Technology which is not nearly as good as Radnet. It just happens to be cheaper. I agree with you that it's quite a good story. Let's go to Bob in Florida. Please, Bob. Florida. I'm a founding member of the club. Oh, excellent. Thank you. Thank you very much. Big meeting next week. Don't forget. I'm on committee. I won shares of swap. I've been losing money on them. Should I keep them or should I use them on the answer? Which stock? I'm sorry. Swap. Okay. I happened to like swap very much. They came on the show. Mr. Benjor told a very good story. I know that there's short term considerations. I think they will go away. I think it's a good level. I would buy this stock at swap. I buy half a position here and then half a position when some knock on it analysts downgrades it again because that's what they tend to do. Look, I like to find good stocks and good companies with good stories. That's how you avoid being swayed by the financial chatter and make smart investments instead of going in and out and in and out like some sort of hedge fund joker. Well, man, money tonight, Dutch bro stock is seeking it to come be gave a half. That's a caught up cup half empty out look for a store down. But what else was in the quarter that investors may have missed? I've got an exclusive with the CEO. Then we're hearing that the consumer is feeling some tightness, but then why are the food delivery apps still putting up solid numbers? Aren't they expensive? I'm taking a closer look at the sector taxes and fees included. And as people return to non-urgent medical care after the pandemic, I'm taking a look at one medical device player benefiting the uptick in procedures. So do not miss my swizzle with Zimmer Biomat and stay with Kramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something? Head to madmoney.cnbc.com. Schwab trading is now powered by a meritrade. To give you a new elevated trading experience, Taylor made for trader minds. Go deeper with think or swim. The powerful award-winning trading platforms now at Schwab. Unlock support from the trade desk are a team of passionate traders who live and breathe trading like you do. And sharpen your skills with an expanding library of online education crafted just for traders. All designed to help you trade brilliantly. Learn more at Schwab.com/trading. When you're hiring, the best way to search for a candidate isn't to search at all. Don't search, match. With Indeed, Indeed is your matching and hiring platform with over 350 million global monthly visitors according to Indeed data and a matching engine that helps you find quality candidates fast. Use Indeed for scheduling, screening and messaging to connect with candidates faster. Plus, 93% of employers agree Indeed delivers the highest quality matches compared to other job sites according to a recent Indeed survey. Leveraging over 140 million qualifications and preferences every day, Indeed's matching engine is constantly learning from your preferences. Join more than three and a half million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at indeed.com/madmoney. Just go to indeed.com/madmoney right now and support this show by saying you heard about Indeed on this podcast, indeed.com/madmoney. Terms and conditions apply. Need to hire? You need Indeed. Breaking news. The Peanut Butter Group and Chocolatey Corp have merged to create PBC Inc. And the byproduct of the merger is the new delicious Jiff Peanut Butter and Chocolate Flavored Spread. I got the press release and get this. Critics tried to say it creates a monopoly on cravability. But obviously, it's not illegal to be irresistible. Calling it now, this will revolutionize the snack industry and the contents of my pantry. Visit pbcincorporated.com to try the flavor merger of the century, Jiff PBNC. All right, we got a bit of the mystery to solve here. What the heck just happened to Dutch Bros? That's the Oregon-based coffee chain. It saw a stock plunge, a staggering 20% day. This is nuts. Last night, Dutch Bros. reported a very strong set of results, higher than expected revenue, same-store sales earnings. But, and this is apparently the biggest but you've ever seen. Management left its full-year same-store sales guidance on change, which indicates that maybe the second day after the year will be slower than we'd hoped. On top of that, Madras said new store openings will come in at the lower end of the previous guidance, which is something that I've actually called for, but maybe for different reasons. Doesn't sound like something that would knock the stock down 20%, does it? But don't forget, Dutch Bros. It still hasn't even fallen back to where it was trading before it imported below a quarter of three months ago. So, let's get across to the local Christian Broome. She's the president and CEO of Dutch Bros. to get a better read on the quarter. And welcome, sex. This is welcome. Welcome back to Mad Bunny. Thanks so much for having me again, Jim. Okay. So, Christine, let me ask you because you know, no one's been a bigger fan in the media of your chain than I am, both as a customer and also the stock. And I found myself thinking, if Christine had a do-over, would she do the call differently? Because it didn't really reflect, I think, the fundamentals of the company. Yeah, look, I think that we need to be super clear about our confidence and our future. We are building this company for the long term. We're doing the right things for our baristas, for our customers. We had an awesome quarter. I think we beat on almost every dimension. We raised our revenue guidance. We raised our adjusted EBITDA guidance. And, you know, I think as we talk about the business, we want to be really clear about the things that matter most. As we look ahead, we are on a path to 4,000 shops. And, you know, one of the things that maybe didn't come through is clearly on the quarter, we actually saw a bump up in new shop productivity, which is really important to our growth, right? So as we look at the AUVs, as we continue to grow of our new shops, how many customers are coming to those new shops, we saw a really nice bump up in that number. And that's about our long-term growth and where we're going in the future. But also, that would be about, look, there were six analysts who seemed befuddled or were kind of just begging for you to say, "Look, give us some definite number for the second half." Or otherwise, people are going to presume the worst. And, Christine, judging by the action in the stock, I think people are now presuming the worst of your company. Yeah. So as we look at the second half of this year, we did keep our comp guidance exactly the same as we'd had it before. And the reason for doing that is if we look at the second half of the year, we're actually coming off a fair bit of price as we go through the year. The second thing that we're seeing is we are seeing an external, pretty intense promotional environment out there. So as we go forward, we're continuing to react to that. We want to make sure we are always providing awesome value to our customers. We've been doing that through our rewards program. I think you might remember we have super healthy rewards program. 67% of the transactions go through that program. And we want to be able to provide that same level of promotional activity, reward customers for coming in to see us. Now you did say you're going to have to do some some advertising was discussed. Advertising can be very expensive. And you're in a group of regions where it might be difficult. You can't do national advertising. How are you going to approach those different regions? How are you going to approach new area, Florida, or the use number shops put up in Texas? Yeah. So a lot of the digital media that we're doing right now is really personalized. And we can even personalize by zip code. So we are going after customers that are in those new markets. We're finding them on Snapchat. We're finding them on TikTok. And we're just introducing them to our brand. I think one of the things that might be underappreciated about us is we're at 912 shops now, but have added almost 500 of those in the last five years. So really rapid growth, especially in some of our new markets. Now I did ask previous management, I said, listen, I wish you could slow things down. This is when this talk was in the 40s, because you never know whether you're going to have enough cash to sell fun. They assured me it wouldn't be a problem. And then the stock broke down because they did have to finance. They did have to offer stock. Now, I know that you are slowing the growth of storage, but not by a lot. But is that because you're trying to be prudent? Or are there other things that I'm missing? No, I mean, we took a literally a handful of shops out of the pipeline for this year. And as we look at that, what we're seeing is we are seeing increased new shop productivity as we go. And we have refined and recalibrated our real estate models. So what I can tell you now is I'm super confident in that we know when we open a new shop about what that AUV is going to look like going forward. We also have a concept we call sales transfers. As we open new shops, sometimes customers move between those. We have great estimates on that. So as we have awesome new numbers that we're looking at, it's really important that we're adjusting those numbers. And looking at, would we open every single one of these sites? Are they the absolute best sites we can open? Because we are on a long path. We have a lot of great sites ahead of us. We need to be opening absolutely the best sites for our baristas and our customers. Let's go back to the promotional environment. I know that most of your business now is cold. Is this Starbucks? Is it Duncan? I mean, who's out there in a price war? Because my taste cost just as much as always. Yeah, I think what we're doing with our customers is we do have a very strong cold business. Over 90% of our beverages were cold in the quarter. And you know, as we look at what we're doing, we think we're uniquely Dutch Bros. So we have a really strong energy business, which I think is unique in the market. We're providing great innovation to our customers. We launch protein, we launch Boba. We're on the path to launching mobile order right now. So we don't have order ahead capabilities in most of our shops right now. But we shared on our call that at the end of July, we have almost 200 shops now with order ahead capabilities. So that's marching forward as well. All right. One last question. After last night's call, which is quite different from the interchange you and I had, would you ever just say to the analyst community look from now on, we're just not going to provide guidance. We're just going to, we're going to do something different. We're going to tell you about what we're up to because I thought it got a little antagonistic in the end because there were people who wanted something you weren't going to give. And that caused some of what I think was a antipathy to the stock today that maybe was undeserving. Is there a way to be able to communicate to the street? Look, we're not going to do what the other guys do. Yeah, look, I mean, I, I think that we are, we wake up every day and reflect on what we can do better the next day. That's, that's part of who I am. I think that's part of who we are as a company. So I'm not sure if we're going to necessarily, you know, change our approach. I think we'll still continue to give guidance to the street, but we will be thoughtful about how we communicate everything. Okay, I think that's very valuable because I think the stock would not have been down as much as it was given the fact that the fundamentals are very strong here. I want to thank Christine Brohn. She's president and CEO of Dutch Bros. Thank you for coming on, Christine. I really appreciate it. Thanks so much for having me, John. Absolutely. And I'm going to be back here for the break. Coming up as consumers tighten their belts, one group stands out. Why delivery is dominating when we return? Trading Ashwab is now powered by a merit rate, giving you even more specialized support than ever before. Like access to the trade desk, our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check, meet assistance, no problem, get 24/7 professional answers and live help and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help each free, brilliantly. Learn more at Schwab.com/trading. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care, and we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI. It's possible, because we're already doing it. All while saving businesses billions, that's wonder made possible. Learn more at EverNorth.com/wonder. We keep hearing that consumers are cash strapped and pushing back on high prices. But like I told you last night, it's not that people will stop spending on everything. It's that they've gotten more selective, always searching for the best bargains. And we've seen this from restaurant after restaurant. Yet somehow, last Thursday, DoorDash managed to report a spectacular quarter. DoorDash, the borderline extortion online food delivery service, that we all adore, or at least I do, and it's my show, is looking pretty interesting. The stock's out of 8% the next day, even as the market melted down. By the way, we heard the same thing from Uber. They're Uber each business is on fire, which helped that stock to rally 11% on Tuesday. Later, that same day, Maple Bear, the parent company of Instacart, reported its own excellent set of numbers, allowing the stock to gain 3% yesterday. Now, it doesn't even matter that Maple Bear is a ridiculously stupid name. All the better to get the word out, I guess. These online delivery services may be convenient, but they do offer what I regard as terrible value. So how the heck are they doing this well in an environment where the consumer is supposed to be rebelling against high prices? Why don't we start with DoorDash? Last Thursday night, they surprised the upside, with better than expected numbers for every key line item, total orders, gross order of volume revenue, and contribution profit. DoorDash delivered 23% revenue growth, while the thriving margins, translating the strong earnings for interest, taxes, depreciation, and amortization. Plus, Magic gave you very healthy guidance for the current quarter, substantially better than expected, especially on the earnings front, how they pull this off. On the conference call Q&A session, it was the first question posed to co-founder and CEO Tony Shoe, because it seems crazy that DoorDash is doing great when restaurants are seeing softening demand all over the place. Shoe put into two main factors. First thing explained, the digital watering is still in its early innings. Even though restaurants may be struggling, digital remains a huge source of growth for the industry, even if they're hobbled by lower in-store traffic. He's confident about this, because even as DoorDash's digital penetration is still in the single digits, and outside of their network, it's even lower than that. Incredible. Second, Shoe pointed out that DoorDash's service continues to improve. In fact, water-frequency and customer attention are just as strong. If not better now, then we're during the pandemic when you were locked in at home. Plus, he noted that DoorDash has the lowest cost logistics network in most places in the United States, and customers are desperate to sign up for their dash pass subscription, where you pay $9.99 per month to get delivery fees waived for orders over $12. I think there's one more key driver here, though, which is that many people got so used to the convenience of these delivery apps during the pandemic that they're now seen as a necessity. Yep, this looks like a lasting behavior change for the pandemic. In fact, people paying up for food on DoorDash could be a major reason why they have less money to buy everything else. Either way, this company is doing great, and Shoe, what can I say? He's the fabulous executive, and he's great friends of the restaurant industry. Are now, how about Uber? Well, it was over a great quarter. It was just a great quarter overall for the company, but right now, I want to focus on just one segment, which is all Uber Eats, where gross bookings grew by 16%. Regularly came in a little light, 8%, but even though I expanded by 79%, coming much better than expected. The guidance for the current quarter was also solid, although also slightly lower than expected. Give them a break. When Uber CEO, Dara Cosra, sorry, went on Squawkbox on Tuesday morning, he had a lot of interesting things to say. For one, he pointed out that his business has a countercyclical element, because when the labor market gets weak, more people want to drive for Uber and Uber Eats. That helps improve the service, because when they have more drivers, the user gets shorter wait times and better pricing. But in terms of Uber Eats, Dara explained that deliveries become a sticky habit, sticky, for the consumer. At the same time, while the prices are high, you get a much better deal when you sign up for an Uber one membership, which gets you zero delivery fees for Uber Eats. He says over half of the delivery vibes come from members. So like with DoorDash, online delivery is only extortionate for the people who don't pay a small monthly subscription fee. When Uber's conference call, the CFO actually said he was surprised to see just how sticky the food delivery business has become. And it seems to be getting even stickier. Listen to this quote, "I look back five, six quarters of data and it gets better every quarter in terms of either retention." End quote. "Pandemic habit, convenience means more time and post-COVID time is now the currency of the realm, not so much money." Finally, that's all about it. This is a part of the shoot. I'm a maple bear, which I haven't been following as closely as because the stock hasn't had much going for it since it came public last year. And because it's hard to take a company named Mabel Bear seriously. A great name for a stuffed animal though. This was a solid quarter from that. Instacart's gross transaction value grew 10% year over year, better than expected, with total revenue up 15%, also very good and 89% even on growth, just terrific. We'll talk about that management gave you robust guidance for the car in quarter. And his shareholder letter, Instacart, noted that roughly 25 million people used their service over the past year. And the company said that this gives them quote, "A tremendous opportunity to deepen engagement within frequent customers while continuing to attract more new users to Instacart." And quote, "What work?" Well, you know what? I'm still taking a bit of a weight and cheat approach to this. Instacart, that's been my attitude since the IPO last September. By the way, you haven't missed anything. Stocks down almost 5% since I told you to steer clear 11 months ago. I think the grocery delivery business is tough to worry about. No one's been able to achieve huge success here, even Amazon with its whole foods subsidiary. People are used to ordering meals like they order food from a waiter at restaurants. But most of us still prefer to buy our groceries in person, especially if you're shopping for meat or fish or produce. You know, I like to feel the stuff. That said, even Instacart is putting up extremely solid numbers. So clearly, millions of people appreciate this convenience. After looking over these strong results from DoorDash, Uber and Instacart, I keep returning to one thought. It's the fact that milk delivery seems to become an ingrained habit during the pandemic. I can't even before the pandemic, but especially during the pandemic. Both DoorDash and Uber called out the things that like things like order frequency and customer attention are not just holding up, they're actually improving. More important, people seem to see delivery as a necessity, rather than something discretionary, which is why these companies can put up great numbers when the restaurants are struggling. Oh, and they know that restaurants mark up liquor ferociously. So it's much cheaper to chow that at home, crack open a cold one, put the Olympics on your 70s screen and never leave the house. Sure, all three food delivery companies called out the fact that customers are prioritizing affordability and they're trying to give the people what they want, often via membership programs that remove delivery fees, and that's important. But the bottom line, DoorDash and Uber eats and Instacart can only put up numbers like these because food delivery has become a calcified habit for so many consumers. People who value their time as much as they value their money. No wonder people don't have excess cash to throw around. They're spending it all on DoorDash. Giann in Florida. Giann. Hey, who are you, Jim? Booyah, what's up? Jim, I have my son Giann here who has a question for you. Sure. Why not? Booyah. What do I think? A Costco? Oh my. With the gold bars in the morning? With the unbelievable bargains, the 3,000 different shopkeeping units. I tell you, that stock, which had a great month, last month, is a buy-by-buy and let me tell you something. Your kid, highest-quality, highest cobbler, you've got horse sense. He is the kid. Oh, he's the kid. He is the kid. Hey, Giann, you got horse sense there. I got a little compute between the parent and the kid there. All right. Bob in Illinois, Bob. Yes, sir. I've been a holder of cobbler for quite a while. Lately, it got up to around 80, and then it's really been fluctuating in large increments, like three and five points a day. Do you think this is a good time to get back in? Well, I'd like to hit it on a day when it has a big down drift because exactly what you said, it has these bizarre moves. Maybe you can get in. I mean, sweet green just reported terrific number tonight. That's going to send cobble up tomorrow. So let's be careful. Don't buy it on an update. Buy it on a down day. Michael in Arizona, Michael. Hey, Jim. I hope today has been treating you well. The day has actually been a fair, you know, I went to Eddie. I got a good haircut. Sometimes I can make a day. It's like a vacation for me because you don't have a lot to do when you're there. What's up? Hey, so I've been looking at the consumer discretionary sector, especially following Chipotle's 50 to one split in June. And because they're fundamentals, they'll look like they're intact. It's Chipotle looking like a buy, sell, or a hold jump. I think when Brian Nickel came on, he put the rest that whole notion of smaller sizes, which was all canard. I said to myself, these guys are back now. The one thing that you have to recognize is that this stock sells at 50 times earnings, which is high. But I have been backing Chipotle since, I guess what it would, you know, well, let's say for 85% because that's how much it was down when they had that terrible food scare. I don't want to quote more than that because they're by the grace of God. Every single restaurant could have had what happened to them. My food delivery companies have said they're prioritizing affordability, but I think the real stickiness here is because meal delivery is becoming great in consumers' lifestyles and it gives them more time. That's why they can keep putting up these great numbers and why they keep probably, I think they will steep continue to do so. I like all three. Hey, much more made money, including my suite with silver biomass. This mountain device maker stock has been less than exciting, even though I think their products, especially their new products, are very impressive. I'm getting the latest with the CEO to find out if there's more to the story. And sometimes your stock is only as good as the sector. It's in, I'm giving you some examples and telling you how to react when that becomes the case for one of your favorite holdings. And of course, all your calls wrapping fire tonight's edition of The Lighting Round. So stay with Cramer. This year, many Americans have finally been getting the health care procedures they need that they put off during the pandemic. All sorts of what we call non-urgent surgical stuff. That's been great for the hospitals and most of the medical device makers, but not all of them. And that means something's wrong here. It takes a different environment. It's the leader in hip and knee replacements. It's expanding to orthopedic robotics and mixed reality devices for the operating room. Even though Zimmer is some of the best tech you'll ever find in the industry, this stock's actually down a level for the year. Even when the company reported a really solid quarter yesterday, it's stock fell more than 3%. Primarily because Zimmer only reiterated most of its full year forecast. And even though it had sales outlook, but it was about currency. So what's holding the stock back? Maybe you're getting a great buying opportunity here. Maybe I'm missing something. I don't know. Let's check in with Yvonne Tornos. He's the president of Zimmer Biomat to get a better sense of the quarter. Mr. Tornos, welcome to Mad Money. We're ready to be here. Thank you for having me. Well, this is very exciting to have you because there's really, I regarded as two Zimmer Biomat's. There's stuff that we all know, which is the knees and hips. And then there's the stuff that you're doing now. And I just want to give you the floor to talk about what I think is one of the most exciting, actually in-use reality devices that I've ever heard about. Yeah, we have been around for a hundred years. We are known for the knees and our hips, number one company in the world, in need reconstruction, number one company in the world in Hebrew reconstruction. But we do much more than that. We have leading robotic applications in reconstructive, but also in brain procedures. We are the number one company that treats epilepsy with a robot that can diagnose and can implant an actual device to help your epilepsy. And nobody really has anything. Nobody has anything. That is proprietary. A lot of companies have tried to craft epilepsy and have had no luck, but you're coming out from another way. With the solutions like mixed reality, think about a surgery where your surgeon can have goggles on that sees things that you cannot see. You can see parts of your anatomy. You have a hologram of your actual anatomy. You can see the instruments. You can see where to do the surgery. This means more accuracy. This means a shorter time in the open room. You get out of the hospital sooner. We do smart implants. We are the only company in the world that can make a fairly dumb device. This is an implant. It's been around for 60 years. Titanium, stainless steel, cobalt chrome. Now, in this implant, we can put a tiny sensor, Jim. A tiny sensor. We call it person IQ. That is going to tell you things about your mobility that you don't know about. It's going to feed data to you, the patient, to your surgeon, to your care team, to tell you about your recovery. Are you walking the way you're supposed to be working after surgery? Is your mobility the way it's supposed to be? This is transformational. Now, will I be able to, for instance, team up with this and find out things that I can look or my watch? My watch was, of course, died today because I didn't charge it. But, I mean, how tight are you? I know you do Microsoft with Apple. We have a full ecosystem of solutions. We think of us as a solutions company. Every product, a similar environment, either collects data or feeds data to another device. We have a partnership with Apple. It works through an eye watch, to your point, or your iPhone. You can collect data and feed the data also to your caregiving team. Before surgery tells the surgeon how you move, how are you behaving, what should you eat before the surgery, and what should be the best surgery with the right implant that is going to give you the most mobility. Now, I'm trying to figure out how this business works. Should I be asking my GP or the person I'd be sent to, to see whether they have yours, because I would rather have yours than another company that has a done it. Sounds like the right path. You should be talking about your mobility. Yes. And it is a personalized plan for every anatomy under the umbrella of zimmer-bound med solutions. So, I was talking about you. What is your lifestyle? I gave you a peekable player. Yes, I am. I built a court because I can't move. I can't play tennis anymore. I can't play basketball. I can't run. This is the sport. And my wife is king or queen at it. But this is the sport for people like me. But I'm worried about my knee. Well, you shouldn't be worried about your knee. We sponsor peekable. We alleviate pain and improve the quality of life for people around the world. Many skilled repairs is one of the highest frequency injuries for peekable players. And we can get you back on the court at a time you didn't expect. But I am so afraid when you say we, that there will be people watching, they'll go to the hospital and the hospital won't have your stuff. We are the number one company in the world. So, I can just answer. So, we construct the surgeries. We've been around for a hundred years and we'll be just getting started. So, you do know zimmer-bioman. Yes. Oh, no, I do. But I'm afraid some people might just say, listen, there's another company. You know, some of your opponents are big companies. They may not have as good a product, but a lot of times people don't get the best product in our country. They don't get, or they're afraid to ask because our system is so crazy. We think about those opponents as peers, more than opponents, or opponents as to our practice. Okay. Or biggest challenge is awareness. There are 600 million patients on earth who suffer from arthritis and less than 5 percent do something about it. Okay. So, now, we've talked about the things that are really exciting. And what I'm worried about is that people will say, wait a second. He starts up by saying, on a quad car. So, look, we're 5 percent grower. I see these things, and I think that that's a baseline and great things could happen. Am I too bullish about zimmer biomass? I'm bullish as well. We got 50 new product launches in the next 30 to 36 months. We just had an investor day. We committed to growing revenue above market for the next three years. The investor day was like, it was like, mission impossible meets a science fiction. I cannot believe what you guys are up to. I know what you think about it. But again, revenue above market, EPS, earnings per share, growing faster than revenue, and free cash flow growing 70 percent over the next five years and returning that to shareholders. But your price during these monocles ridiculously low versus all the growth you have? Well, I'll leave the discussion to you and others. We're here to do innovation, customer centric innovation. We're here to control the present and the future. And with this innovation, with the solutions that we're having in store, these companies are getting started. Well, that's quite a well-known thing. Right. That you... Oh, no, when I heard you were coming on the show, I said, I'm so excited. Well, I'm going to say, I'm fortunate because many of my friends are your customers. Well, I hate to say that, but thank you. Good enough. That's Yvonne Torres. He's the president, CEO of Zimmer Biomit. Guys, this is an inexpensive stock in an expensive market. Take a look at it. We have money's back into the brand. Coming up, hit us with your best shot and the electrified fast-fire lightning round is next. It is time for the lightning round. But that's where I close my prayer routine. And the stock are paid by myself. So just the curtain goes, "No, no, no, no, no, no." And then the lightning round is over. Are you ready, Steve? That is time for the lightning round. Great enough. So it's close to Gary in Texas, Gary. Hey, Jim. It's Gary in Houston. I've been following you for over 25 years. You're in Texas. Gary. Gary. And I just want to tell you that my kids and my girlfriend are club members, as far as we're concerned, you are CNBC. Oh, thank you so much. We have a great team here. Great team here. How can I help? Just wanted to ask you about a stock Teladoc, what you're looking for? I don't like Teladoc. Gary, you and your family. I'll throw your members. But you know, I've got to tell you what's going on there. Right now we've got this Kathy Wood. She sells the stock almost every day. She bought it much higher. It's really painful to watch. Let's go to Dan and Master's Dan. Oh, yeah, Jim. Thank you very much for taking my call, man. Of course. Of course. What's going on? All right. I'm thinking to buy something in cyber security. And I like this stock called Fortnite. What do you think about that one? Fortnite reported a pregnant quarter. It was great to see. By the way, so did Cyberarch. I remain committed to Nikeshramora and Palo Alto Networks, which I think is doing the best of all of them. Let's go to Nick and Maine, Nick. Hey, Jim. Short times, you are a first time caller. You're right more than you're wrong. So you're good. My book, sir. There you go. That's all I care about. Thank you. What's up? Let's get down to business. Man, I know you're all about it. In Nova. In an actual. In Nova, a little dicey. A little dicey because it's it's untraditional lending. I am just a traditionalist. I say go with the stock. They collapsed over the last week. Go with Wells Fargo. Game in Illinois. Dave. Dr. Prainer, my old man friend. How are you? I'm doing fine. Thank you for giving my correct evaluation. How about you? I'm great. I'm the coattails in video today. Holy cow. Nice to see you. You remind us why you like GE Healthcare in your charitable trust. Well, Dave, you know what I've got to tell you, they did have a decent quarter. They have been hurt by China. I'm not impressed by my own stock faintly. This I could have bought GE Bernova. I could have bought GE Aerospace and it would have been better. I bought the worst of the three. And I'm not proud of myself on this. I think we'll ultimately make a lot of money on it, Dave. But it's been, I'd say, a cross of MRI. Let's leave it at that. But thank you for the call. Let's stick with Illinois. It's got a Maxinoy, Max. Bentley system, D.F.Y. Yeah. I know these guys, you know, look, this is enterprise software. And you know, there's more money being lost enterprise software in 2020 than in any other sector. So I can't play. I'm sorry. Let's go to Joe in New Jersey, Joe. Hello, Mr. Kramer. We've been earning with an earnings beat and a cut and guidance. Should I still hold on to Merck at the hospital? No, you should not hold on to Merck. You should buy Merck. I have tremendous, tremendous faith in what Robert Davis is doing. It like GE Healthcare got caught up in with China. China will be a short-term concern for a great company like Merck, but it did surprise us, but I'm sure it's surprising that your Davis too. Let's go to Carol and Michigan. Carol. Hi. Carol. Yeah. Yep, this is Carol. I apologize. Monolithic power solution. Okay. Power management data center stock is up one of the biggest, biggest of all gainers today. I'm going to have to say no. The data buy it was yesterday. And that leg jump is the conclusion of the Lion King Row. The lightning round is sponsored by Charles Schwab. Coming up. Nice place. Bad area. The neighborhood headwind holding back some quality stocks. Next. Sometimes picking stocks is as easy as figuring out the neighborhood a company lives in. If the zip goes a bad one, it might not matter what the company does, because the stock won't get any traction either way. Last night we spoke to John Fieldley. He's the CEO of Energy Drink Company, Celsius. He bought some terrific numbers, including four and two million in revenue, up a whopping 23% year over year. You normally don't get that kind of growth out of a beverage company. Celsius was one its game. It was responsible for a big portion of the growth in the Energy Drink category. It didn't matter though, because the Energy Drink neighborhood is very shabby at the moment, with Monster reporting sub-optimal numbers last night. The house of a billion, missing both the revenue and earnings estimates. Monster spoke about a slowdown in the sector. Something at Fieldley felt should not be applied to them, because Celsius certainly didn't see a slowdown. It doesn't matter though. The category wide slowdown drags down the best stocks along with the worst ones, because nothing can escape the gravitational pull of a bad neighborhood. His stock finished unchanged. At one point it was down for three bucks. We slowed the same thing with the beer industry, which is being kept down by fears about GOP-1 drugs causing a sharp decline in beer consumption that has not occurred yet. Right now, Constellation Brands has seen its stocks sink lower and lower for months, even as its beer brands, Modello and Corona, are taking share all over America. Like Celsius, they're responsible for any gain in the overall beer category. We own Constellation from my Travel Trust monthly meeting next week, by the way, and it can't get any traction whatsoever, because the neighborhood is awful. It doesn't matter that CO Bill Newins is doing everything, right? The stock refuses to stay up, because money managers, they just give it up on all things beer. Some of the neighbors are so bad at a great company like Newquir are going to be the best steel maker in the world. So we can't lift the shed, because so many grades of steel are rolling over right now. It doesn't matter that they have superior mills and tech. It doesn't matter that they've made some clever acquisitions like CHI. That's an overhead door company for residential and industrial use. Newquir stock has been down relentlessly, because steel prices can't hold. He's speaking of bad neighbors. I don't know what the heck you can do with media, other than get out of it. Dave is as an excellent operator who's trying to term Warner Brothers Discovery Round, but it's a disaster. The company reported a miserable quarter last night, taking a $9.1 billion right down. For some of its linear TV assets, it was just devastating. To which I say, of course it was. Leonard Tell wasn't his facing cord cutting, escalating costs, and it's competing against a much better ad delivery system for reaching the right people, the AI-powered net of platforms. You have no idea who's watching there to be at all, right? What the predilections might be, but when meta places add in people's instrogate and feed, it'll be simply, it'll be something very relevant to them, because meta already knows what you like, maybe even better than you do. You can't beat them. It's like when I worked for the policy democrat, when I got out of college, and we were grateful our paper came out in the morning, because the television news has eviscerated the evening papers. That's what it feels happening to linear TV versus the well-financed hyperscalers. Nobody can compete. There are terrible neighbors all over the map right now, even in an up-date food food. Hey, fast food, right? It's become very tough, because there was too much pricing being taken by members of the group that test colors all the rest of them. Drug stores. Oh man, how tough, because Amazon is coming in from mall stores like GAP, which is turning around, get hurt because the vast preponderors of mall-based retailers can't get any respect. Terrible neighborhood. The more of the story, do not fight the map. A bad neighborhood cannot be bucked. It doesn't matter if you think your company will be the one that triumphs over the other houses on the street, or not. Forget about it. Go find another stock. One that's in a good neighborhood with Wall Street's boy to give them the benefit of the GAP. I like to say there's always a bull market somewhere, and I promise trying to find it just for you right here on Mad Money. I'm Jim Kramer. See you next time. 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