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 6/28/24
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I scrutinized the stocks that led the S&P for the now completed second quarter of 2024. Today I was dominated by potential winners under a potential second Trump administration, the wake of last night's debate, dialed, dipping 45 points, S&P declining 0.41%, NASDAQ losing 0.71%. But I do not come to bury your praise candidates. Although if you stick around, I do have the winners, I think the potential winners of last night's debate, if you think it's an arminger of November. But I do want to talk about the top 10 stocks that led the S&P 500 to rally 3.9% for the quarter, which by the way, brings the first half to an outstanding 14.5% gain. Wowza. There's an awful lot of old friends in this list, starting with the company that's become the hallmark, frankly, of this pause of your end. Yes, indeed, of this show, Man Money. And I'm talking about yes. Go ahead. Sand it with me. Nvidia. This company widely perceives the godfather both accelerated computing and gender of artificial intelligence, both trends. While it's often viewed as a par venue, I prefer to think of Nvidia as a mainstay. A company that's been loiting, really what I've been loiting for over a decade. By the way, wherever I go, people thank you for recommending it. I say you are welcome, but the honors go to Jensen Wong, the redalable CEO, whom I frankly have almost run out of superlatives when describing him. Oh boy, if they do the same thing in the third quarter, I'd better come up with some. Remember when you used to have the thoruses? I know going into this quarter, there was a widely held belief that Nvidia stock had moved too much and it was time for some could change, could change. Profit taking. I heard that several times a day this week on our network. You know me? I say own Nvidia don't trade it because despite its $3 trillion market cap, I think Nvidia's unrivaled in its ability to usher in this new industrial revolution that Jensen's displaying to us many times. And that's why it rallied almost 37% in the second quarter alone. Second is first solar. This is the all-America maker of industrial scale solar modules, up nearly 34%. This is a member of the industrial scale. I mean, it's not in your roof, okay? This is the quarter where we separated the wheat from the chaff in the solar space. Plus it didn't hurt that the government doubled the tariff on cheap Chinese imports. Unlike so many solar plays, first solar is usually profitable and has been a low-cost producer for ages. As the chief of the CNBC investing club, I love the solar theme and I believe that solar currently about 5% of the grid right now will be electric in them. Of course, I'm speaking about Google at a 25% by the end of the decade. Yesterday, we added next tracker at XT to the travel trust, taking advantage of the industry because their technology lets you increase your yield from rows of solar panels. The stock is down. It's a great opportunity. Third, we're in a moment where semiconductors are rescinded. And people may not know, but these small devices need to be tested to ensure that they work. Tardine dominates that business. It always has, frankly, from as long as I've been in the game. And it also tests aerospace and a lot of automotive diagnostics. I followed this company for many, many, many, many, many years, and it has a stellar reputation. This stock did jump 31% for it. The quarter. House of pleasure. Number four, when GE broke itself up into GE healthcare, which the travel trust owns, GE Aerospace, and we got a third of that company that initially seemed like it would have been an asterisk appendage, GE Vernova. And that was the long suffering power business. And everyone knew the healthcare business was profitable. Aerospace was incredibly profitable, but this one wasn't. Turns out the ugly duckling was really a swan in disguise. As investors flock to the company, they can help the electric grid grow in concert with, yes, the growth of the data center. Remember, the grid hasn't grown at all for years, but suddenly it's growing, and who wins? Bernova. They mainly make that gas turbines, but it has a wind and a nuclear plant. Let's say it's small, let's call it small form nuclear plant. And it's also, no, they don't have a lot of orders. And no, nothing will be built by 2030. But you know how hot nuclear is as some, as a thesis for clean energy. At one point, the fear here was that this company, Vernova wouldn't be able to produce a profit anytime soon. But demand for powers insane, and GE Vernova turns out to be in the sweet spot. It's become a much shorter after stock inches, 25% gain. Fifth is a company that we've talked about many times, but you still probably haven't heard of, which is called Vistra. I know it sounds like a drug company, right? Vistra. Hey, you know, I popped a couple of Vistras. No, this one's up 23%. It's an independent power producer that I've talked about recently. Everybody in the space has been benefiting from the same thing as GE Vernova, a surge in demand for electricity. Thanks to the all power hungry data centers that we've been building out. The Texas-based Vistras also benefiting from the electrification of oil and gas production in the permit. Vistras are somewhat special because they recently acquired three nuclear pants on top of the one they already had. And right now, nuclear is beloved because it's the only way to get reliable clean energy at scale. You don't need this sun, okay? It doesn't have to be windy. It's just plain work. So it wasn't easy to catch the sixth best performer. Because so many analysts, right, written into office, it has been consumer company and a world dominated by artificial intelligence. It is Apple. Now, I mean, I've got to tell you, I've told people to own Apple, don't trade it for ages. It seemed quaint. It seems like it's an easy thing to say. Believe me. Do you have many times I went home and I said, you know, tell my wife, I said, oh my God, they're killing it, they're killing it, but I'm steadfast. And we held it through this period for the trust because we are still believers. Sure enough, when Apple held its worldwide developers' conference, we learned that it had been able to offer the best of artificial intelligence because everybody in the industry wants access to Apple's massive user base. Billion. The stock's sore when it's one of the doubters they can have its cake, access to the best of AI, and eat it too. Because they don't have to spend tens of billions to build out their own collection of data centers. Don't wonder and finish the quarter up almost 23%. So many of the top 10 have to do with the great data center build out like a NetApp, which provides storage for Amazon Web Services, Google Cloud, and Microsoft Azure. This stock's just levitating because it is the kind of storage management the hyperscalers need. Think of NetApp as the pick and shovel of the great AI gold rush that stocks up 27% to 22.7%. Next, we go right back to the data center with monolithic power systems, monotone, monolithic, monochrome. It doesn't matter anymore, does it? Here's a term you need to get to know, content sharing game. Why? Because it's probably the most boring thing I've ever heard of, but it also makes you money. Monolithic power systems is gaining content share with the giant blank systems. Come on. Right, NVIDIA, including Blackwell, NVIDIA's next-gen chip that will chip in bulk this fall. Power management has never been more important with chips that burn hot. Go ahead, where is it? There you go. And our real power gussers. Monolithic helps keep that under control. Yes, shovel and pithmaker, AI 21% up. Then there's number nine, Broadcom. I don't mean to bore you, but I know I am. The semiconductor company is all aspects of tech with special emphasis on the cloud and cell phones, AI. There is a bit of a theme here. CEO Hawk Tan has done a mind mental job putting together companies that are indispensable. Under one roof, it's the $747 billion company that no one has ever heard of, except for our members in the investing club. Because we have a real big position in it, and we bought it last year. This things up 21% for the quarter, double from when we bought it. Finally, you're probably aware of networking, star, a risk to networks. You need to integrate NVIDIA to the internet grid, so to speak. And that's what a risk to networking equipment does. CEO, Jay Schru, you've always been on the show several times, is simply brilliant. And her team has seemed almost unstoppable for years now. Cloud networking equipment is in strong demand. A risk to hazard. Look, when I first heard of it, I thought it was the record label for John Coltrane. What did I know? Driving in stock up almost 21% for the quarter. Bottom line, it's incredible. But if you were in alternative energy or the data center, you did insanely well this quarter. It's reminded if you waited until the market broadened out, like every joker said. I mean, like many people claim. Let's just say you missed the biggest winners that propelled the quarter. Maybe if you wait until it finally broads out in the third quarter, you'll get to miss the biggest winners all over again. Game in Texas, Gabe. I'm just trying to hope you're doing well. Gabe, I'm having time in my life. How about you? Doing great. And I'm looking for stock to trade. And I came across Starbucks. Is that a bad year so far? But is this the perfect time to buy Starbucks on the whole year? No, it's not the perfect time. I know that because my child will trust owns it. And it is killing me. And every time I look at it, I say, why do I ever like to travel with Kim Wet? It does yield almost 3% take heavens. But I've got to tell you, this quarter, they have to pull it out. This quarter, they have to pull it out. They have to offer a credible way to get this thing back on track. Because right now, it is in a strong race with the stock of Nike. Starbucks is a 77. Nike is a 75. It looks like it's a race to 60. Let's go to Frank in California, Frank. Jimmy, chill. Long time, first time, my man. Chill's in the house. What's happening? All right. So I've been in the stocks since 2022. I'm up around 50%. It's a FinTech. It's SoFi. Where do you see SoFi going? Long term. SoFi's so bad, frankly. I have begun to, I have become to, let's just say, not be as big a fan of SoFi. Because I just, it's just something that just happened to me. I like stocks that go higher. I can't explain it. Maybe it's because I like to help you make money. Anyway, the top winners, the latest quarter, stand is reminder that if you waited for this market to broaden out, you missed everything you joker on that money tonight. Last night's presidential date may be over, I think. But the implications for the markets may just be getting started. I'll tell you how to position your portfolio. Plus, I'm homing in on the humanization of pets. Boy, there's a good team with no adders. But that's not going to move in a real, real time to buy, whether you're thinking or not with the CEO. But first shares of sales for CRF. I've been quietly working the way higher. I remember when everyone told me what a fool I am to stick with it. You know what? I'm carrying your job to vote. Yes, we are talking. Wow, no need to go into it more than that. I'm going to circle back to it. I'm going to talk with Mark Benioff. So stay with Kramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer #MadMensions. Send them an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com. 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 3.5 million businesses worldwide that use Indeed. 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Earning your degree online doesn't mean you have to go about it alone. At Capelli University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. When we last spoke to Salesforce about a month ago, the enterprise software powerhouse was only defensive. They just reported some soft numbers paired with a discouraging outlook for the current quarter. As a result, the stock lost nearly 20 percent of its value the next day, and that's when everybody started worrying that maybe the cloud software plays might be in trouble thanks to the AI revolution. As businesses don't know how many people will need, meaning they don't know how many software subscriptions they'll need. Since then, those Salesforce, which we told club members to hold on to or buy, despite the volatility, has quietly worked its way back higher. Or we've been in 257. I don't think it's done here. Perhaps more important. Earlier this week, the company launched its Einstein service agent. It's a new AI-powered customer support technology that's basically a wholesale upgrade from the chatbots, which are sterile to many businesses used too many of them use it proudly to communicate with the customers. It's all going to change now. We need to know more about this technology. So let's check it with Mark Benioff. He's the co-founder, chairman, CEO of Salesforce, Mr. Benioff. Welcome back to me, everybody. Jim, it's always great to be with you. And hello from San Francisco and the Salesforce tower on a floor. Oh, I love the Ohada floor. It's beautiful. And I got to tell you, Mark, I got up this morning at 315. And there it was right in my letter X box. Was this thing with your name? And I clicked on it. And frankly, I have to tell you, I saw the future. No longer press one for an option and no longer stupid. But that doesn't understand me and can't use the data. Tell us about this because when I pressed it, I was blown away. Well, Jim, you can see that this is the beginning of an incredible new future where digital workers and human workers are going to work together to create better customer service. And that's something we know a lot about at Salesforce being the largest customer service vendor in the world. But when we can take this new LLM technology, these large language models, the artificial intelligence that we have available today, and we apply it, even to our most powerful customer service applications, we can make things a lot more productive for our customers. And in the example that we showed, well, a customer, they can even take something as powerful as maybe a toaster delivering an error code, showing the computer what that error code is and the computer delivering a lot of the repetitive tasks that a human worker might have to come into. But it does not eliminate the need for a human worker. If that human worker is needed, they can come in and augment that customer service request. And that is the power of human and digital workers operating together. Now, there are so many different levels that this thing is different and we're pleasing the customer. One that I found really incredible was you can send a picture, a screenshot, and the bot, I don't even want to call it bot. The incredibly smart machine understands the problem. And I think that eliminates a lot of like kind of babble about what you're worried about. That idea that you can communicate with the computer, whether through voice, or video, or through text, or through a picture, that's called multi-modal technology, multiple modes of communication with the AI. And that's built into all of our software now. And not only are we going to have these service bots that you saw that really you got excited about Jim, which is going to make customer service so much more powerful, more productive as we've talked about, augment your existing customer service workers, better customer relationships, higher margins. But Jim, it also is going to deliver new sales bots that are going to give you, you know, sales development representatives who are going to go out and develop new territories for you, and the ability to close deals, you know, without even human workers involved. This is a powerful thing here. Even here at Salesforce, we're using this bot, these new agents to go out and recruit new employees. And that is a phrase that you've never been able to approach before. Oh, wait a second. Now is that possible? I don't know. I mean, I was going to go the other way here and ask you how great it is that you have all this that the company has all the data to recognize what the picture is. But Salesforce using to get people you're using this? We just recruited three amazing new artificial intelligence engineers. And we did that by just using these agents to go out and have conversations with folks saying, hey, are you happy where you're working? Do you want to make more money, have a better work environment, come to the ohana floor? You know, are you interested? And the agent is working with that candidate up to the point where they're like, yeah, I want to do an interview of let's have that conversation. And then, of course, our human recruiters step in and complete the process. So let me be sure it's very clear that this is I'm sure the people out there who are saying, well, wait a second, this isn't true. You're firing people to get this. Now, what you're talking about is upselling or making more money or getting a better person by using a bot that helps the individual do a better job at their job. And here in Silicon Valley, it's hard to just find people at all. You probably know we have a huge labor shortage, certainly an artificial intelligence. And in all these other areas, you need to be able to augment the employees that you do have to be able to go out and extend your workforce. So it could be in sales, it could be in service, it could be in marketing, it could be in human relations or human resources. All of these ideas are going to be extended with agents. So we're going to have human workers and digital workers working together. It's not just about an AI future. And don't get me wrong, I actually took Waymo here to the office today here in San Francisco. You can jump into Waymo, which is a car that's driving by itself. I wouldn't jump in an Uber normally because I like to talk about Salesforce and the car, and I'm working. But I'm in a Waymo, there's nobody listening to me. So I jumped in, Sundar gave me access, I'm like, I'm all in. But I also want to be able to switch off and have that human interaction whenever I need it. Okay, now I usually do not do this to a human in one segment because I like to be thematic and just have a paragraph of thought as we learn when we were in fifth grade. But I've got to bring up that I had Todd McKinnon recently, I didn't know Todd until you introduced me to him. And he was talking about the European commission and the bundling of teams and whether it was right. And also talking about how it makes it so that you often have to take Microsoft security, which he thinks is not as good. I know Microsoft that they were here would say, Jim, that's not fair. So I'll say, listen, that's one person's view. But I wanted to get your view of bundling in teams because frankly, when you bundle things, sometimes you have to take stuff you might not want. Well, Jim, I think you saw this week the European commission did say Microsoft has once again broken the rules. They've Microsoft has once again broken the rules. We've seen it so many times. Number one, we saw it, you know, with everybody knows the story and Netscape, how they pulverized them by the way, Internet Explorer and the windows. And then of course, you know, you could talk to Drew Houston or Aaron Levy about what has happened where they bundled one drive in and how it's impacted their companies. And then you can see, you talk to the founders of Slack, you know, how by bundling the teams in with Windows again, they did the same maneuver. And, you know, it's not it's they're not so secret playbook, which is the way that they get market share in new markets is by using Windows as the vehicle to bundle in, you know, that they're offering. Well, but if that's the case, why isn't our country looking into it? Why is it up to the Europeans to make this kind of judgment, but you're gonna have to get our regulators on your show. I can't I can't respond on behalf of them. Well, they're busy trying to stop Apple from putting out good phones and breaking up Amazon like they broke up at standard oil. Jim, as you know, all I'm trying to do is deliver 38 billion in revenue this year and 32 and a half percent bargains and 12.7 billion in cash flow. Everybody gave up on you. Don't you remember everyone gave up on you in the last quarter? Are you still there or are you a bot? I think everyone kind of overlooked that we generated more cash in the last quarter than Coca-Cola. I thought that was pretty amazing. And well, you can see the stock recovery's been pretty phenomenal. I mean, I like no, all kidding aside, I was blown away by this. I want people to go and want to letter X and click on what I did. And I think you'll find it's the future. I love the future, Mark. And I want to thank you for bringing to us. I think it's a great opportunity for every company to improve their sales, their service, their marketing. We're gonna see some incredible stories coming out of this. And Jim, I'll tell you, we just finished up with Raj at FedEx. And we just saw some amazing things happen with our data cloud there. And what happened was, as all of a sudden, Raj is selling international services in a whole new way, because we can now spot existing customers who don't buy international services when they're browsing FedEx's website, looking for international services. And we've been able to see a market improvement in sales. It's been an incredible thing. And this is again, using this artificial intelligence to not only improve service, but also improve sales and make that customer connection in a whole new way. We're speaking about Raj, a supermanian, who is this a remarkable man who has turned around FedEx. He's so good. He's so smart. It's incredible. Oh, well, I want to, Mark, anyway, I wish you a good weekend and Lynn, co-founder, chair and CEO of Salesforce. Have a great one. And thanks for coming on. Talk to you soon. Great to see you, Jim. All the best looking forward to having your end match ever since. Can't wait. May everybody's back into the break. Coming up, the future is cuddly Kramer. Choose on an animal health play next. At Credit Union of Colorado, banking doesn't have to be like this big national banker here, just saying we like to apologize to you for that thing we did. Was it selling your information, canceling your personal loan? Who can say that's for the lawyers to figure out? 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In early May, Zoletus also reported a great quarter. Still, the stock remains down within 12% for the year. So what do you make of this one, which is primarily on the New Highless. Let's take a close look with Kristen Peck. She's the CEO of Zoletus. To learn more, Mr. Welcome back to May of Monday. Hey, it was great to be back. I'm good to see you. Okay, so Kristen, first people I want to tell people at home, the reason why I'm not going to grill you on the quarter is you are in the quarter and the law says you can't talk about the numbers, but there's no, nobody says you can't talk about the pipeline and how you're doing from the previous quarter. I was your, the Apple Quill was introduced on our show many, many years ago and I didn't even understand that there could be blockbusters for pets, but it is there was a sense that maybe it wouldn't be that a rival come in. It looks like so that you're going to withstand the challenge. Yes. I mean, first of all, Apple Quill is the number one product for a topic dermatitis. We took a market that was $70 million and we've made it a $1.5 billion market. I mean, Apple Quill is a phenomenal drug. It's been on the market. As you know, for 11 years, we got rid of the Elizabethan collar, which you've always talked a lot about. Well, because we all suffered from when they're wearing the collar, your heart goes out. They can't tell you that we know what's, you know, they can't when they knock their heads. That's all over. And it's a real medical condition. It's more than an annoyance. And we have 11 years of data. Our product is safe and efficacious. So this is a really critical category. I think we really helped build it. We've leveraged direct-to-consumer advertising. We've been leveraged to auto-ship, which I know you spoke about earlier this week on your show as well. So I think we're really proud of our safety and efficacy record for Apple Quill. But it's not all that you have. And you've got others that are just you've got the Simparica trio that is incredibly strong. Yeah, I mean, we're really proud of Zoetis to have three of the top five selling animal health medicines. We have Apple Quill. We also have CITA point, which is a monocle antibody for a topic dermatitis, and Simparica trio, which is phenomenal. It's a triple combination product for dogs, for parasites, for fleas, ticks, and heartworm. I would mention is that's what we've been doing this week. Those got their shots this week. And we also use your product. I did want to point out that Alonco, which I think, look, I know that you never slide competition, but it would have been great if their drug did not have a warning label from the point of view of them. But it happens. This is a very hard drug to make. Well, I mean, I think what I'm really proud of, and you and I have talked about this many times, we're the number one leader in innovation and R&D. We have spent $5 billion since we IPOed building that R&D. And what makes us so successful is the thoughtfulness of our commercial teams, our R&D teams, our regulatory teams. And as we thought about the development of our products, really ensuring we balance safety and efficacy. And as you look at a product like Applecoel, you know, we're really proud of that safety and efficacy and that data that we have that supports that. Absolutely. Now, you have also taught me a lot about illnesses for non-companion animals, for livestock. I remember once when you explained to me the way that some of these flues work and how they're not like human flues. They're different. Tell me about this bird flu situation. You use it on here about these things until when you realize it's impacting the food supply around the world. Yeah. I mean, you and I have been talking about bird flu for years. We talked about it, I think, you know, many years ago as we saw avian influenza start to emerge. And I think what people are talking about now is it's moving species. It's gone from poultry into livestock. And I think what you're talking about right now is a lot of the attention now as well in dairy. And, you know, we're partnered with both the USDA. I met with Secretary Vilsack a few weeks ago to really look at how we can better support both the USDA as well as, you know, our customers. We've started development for clinical trials for, you know, using a vaccine in dairy cattle in case that ends up being needed. But right now we're just going to support our customers in the USDA to be able to have whatever strategy they think makes the most sense. There was a time before we got in kind of a cold trade war that I thought you were also the expert in helping, looking at what's going on in China. Do we have any is it is everything so out of kilter that even when it comes to animals that we don't speak to the Chinese about these kinds of things? Look, the export market is quite important as you look at the livestock industry in the U.S. And especially as you look at poultry, we're close to 25% of the poultry market is exported. And I'd love to say that all the tariff decisions around the world and trade decisions are made on science, but we all know that's not always how it is. So sometimes you see markets around the world use any excuse they can, you know, and it seems a shame that sometimes vaccinating animals for different diseases can make an animal not be able to export it to a market. Okay, now we have been a big believers that something has changed here because we've also been supporting chewy ever since was it 19. We had kind of an over earning for the pet for companion animals because during covid then things went way, way down. And then we had chewy on in December. They said, listen, it's starting to perk up the veterinary businesses starting to perk up. We're getting back to some sort of normal baseline. Is that what you're seeing too? But what we're really seeing is that animal health consistently is more resilient than other industries. And you know, 86% of pet owners would pay whatever it took to take care of their pets. Even if you asked a pet owner, if I had a 20% decrease in your take home pay, would you spend less to care for your pet? And the answer is a resounding no. And if you look at Zoetes' performance over the last 11 years with an 8% compound annual growth rate on the top line, I think in underscores we're an incredibly resilient industry. And when you're Zoetes and you bring the level of innovation that we bring to the market, I think it really is incredibly durable. And as we look at the consumer right now, when it comes to animal health, we do not see a demand issue. If anything, as you know in our sector with the veterinary workforce issues, we're more concerned about supply than we are about demand. And is your question interesting that Walmart takes out the 51 Newman clinics and then goes all in on pets because I think they know how important this growth industry is to America. Well, as you and I talked about it a few months ago, I'm really excited about the different business models you're now seeing in animal health at different locations, whether it be Walmart or telehealth or high-end concierge clinics. There's really a different value proposition for every consumer. And I think that's really critical given the humanization of pets. We want to make sure that pets can be taken care of no matter how much money you have. And that's why ever since the spin-off, you also we had Ray model-like song for when the spin-off occurred. I said, "Look, this is the big one." But then people thought that was because I like pre-in a catch-out so much because I had six cats at the time. But I just know that you have been a great spokesperson for the industry. That's Kristen Peck, CEO of ZTS. I think it had been held back by that Alonco drug and Alonco was hurting the stock, okay? And that's no longer the case. Man, money's back here for the money. Coming up, a company that's keeping it 100, Kramer mines for tech insights. Next. Right now, the companies that offer consumers the best value, well, they're winning, as they should. Only ones that haven't rolled back to higher prices keep getting left in the dust, as they should. I think that's the new normal, which is why I wanted to dig in with 100x. This is a privately held alternative data firm that's got unbelievably good consumer insights. She 100x sources feedback on thousands of brands and companies from their actual customers, and their queries are focused on purchase intent of foreign looking metric rather than historical data, which doesn't make you any money as a potential shareholder. It gives them much more visibility to where things are headed. They activate normal consumers to give the real feedback in real time in exchange to get this for 100x, making contributions to charities, people who are supporting it. How virtuous is that? Let's check back in with Rob Pace. He's the founder and CEO of 100x, and he had a better sense of what he's been seeing. I've got to tell you, Rob, it's a joy to have you here. Thank you so much for coming in to see us at VamBuddy. Well, thank you, John. We have been an exploring concept that I need your verification of, because that's what you guys do if you have a thesis. My thesis is that there are customers who are recognizing, you know what, that company raised price too much, and I want to switch, but they don't necessarily know that they have that intent, but they realize, wait a second, I feel like I'm being gouged. True, false, are people making changes? Absolutely, and we call this the substitution phase, right? You have the initial shock of prices went up, people absorbed it, and now they're stepping back and saying, where is my best value? So a great example of this is in the restaurant space, and what's happened is the quick-serve players have raised prices. Like the McDonald's. Exactly, like 15 points in terms of our data, and now they're bumping against the casual sit-down players, and people are saying, well, maybe it's a better deal to go to Chili's. And so what's happening is you're seeing that switching. It's a lag effect, but we're seeing it there. We saw it with Airbnb versus hotels. If you got too aggressive on price, there's a boomerang effect that shows up in subsequent quarters. Well, let me ask you. Let's say I got my places. I know where I go. My wife and I know exactly where we're going to go. We go to Wendy's when we want to treat. How the heck are we going to suddenly discover maybe we should be going to Chili's? Well, you're right. Humans have routines, and that's what we see in our data. That's us. But if you make it too painful, then they start thinking, why maybe we should try Chili's again? And it's almost the analogy we use is like an athlete. If you let the backup get in the game, sometimes the starter never gets, never gets back. And so when companies think about pricing strategy, they need to think not just about the quarter, but the lifetime value of the customer. Now, Rob, one of the things I like about what you do is that I tend to find out after the quarter's over. I said, oh, ah-ha, there's Mr. Hoppe, and he's telling me that Joe's getting a lot of people. That's not what I want as a potential shareholder, someone trying to make money in the market. I actually have to get in ahead of that. Your data seems to get you in ahead of when we find out how the quarter was. Yeah, what we've been able to establish is that if you listen to the customer, two to three quarters down the road, it starts to really play out in the financials. And connecting that bridge is really kind of the key thing that we do. Now, you also are using lots of different techniques that a lot of us might think are not rigorous, but turn out to be they are. Per instance, Reddit, which I had always felt was just a cacophony of voices. I'm true. Yeah, our data on Reddit, when we look at future usage, so it's not about purchase, but it's usage, and we can benchmark it versus others like Google and other platforms, it's actually trending up significantly. And it's not just informational, but it's also the people, you know, are using it for entertainment, it's a combination of entertainment and informational and relational. And so our data is very positive on Reddit. Now, are you able to gauge for either one of these by income group? Absolutely. And one of our biggest themes is starting around October. We started to see the consumers earning less than $50,000, having to pull back. In other words, having not this is in other words, they're frugal, not by choice. Right. In fact, they're they they're reservoir that they had coming out of COVID and the government support kind of hit a wall. And so for the first time, we started to see this unfortunate bifurcation where the affluent consumer was just fine and doing better, but the consumer earning less than $50,000 was having to stop and say, I can't afford to buy as much as I used to. And I think you're seeing that we saw it in October. You saw that in first quarter results, you're going to see it in second quarter results, et cetera, that that fork. Okay. Now people understand you have Goldman Sachs understanding here. Let's bring that to play. I think that there's an under there's a recognition that a lot of the companies are afraid to roll prices back because maybe a Goldman might downgrade on the different department. But isn't it from the old days when you're there? But isn't it possible that if you don't roll back, you get left behind and maybe become a dinosaur. Yeah, absolutely. And as you know, we have a partnership with Goldman. I know that's why I bring it up and it's going to you coming back. And they've been terrific about bringing that customer dimension into their into their leading research franchise and really leaning into that. And we have a thesis, Jim, which I know you you support that the future of how companies are evaluated isn't going to be just about short term earnings. But are you winning with the customer? Yes. And it's adorable. Right. Now I'm going to give you one last one. And it's there's a desperation trade going on today. There are people who literally are trying to catch a falling knife to me. They're butcher blocks, but maybe they're smarter than I am. Nike. Now, this is a brand. Let's forget the stock for a second. This is a pristine brand. We all still know Nike's the best. But somehow the stock has become the worst. Is there any hope for the stock of Nike? And we're not stock pickers. All I know, but I just need data. I need that. I don't want you pick it up. I'm a guy who picks it. So the answer to your question is we are seeing some green shoots. So bear with me. We were expecting a tough quarter, but we're starting to see scores on selection and styles come back. And that's always been our leading indicator for the Nike's of the world that trend. So I know they're saying, Hey, be patient second half. We would say it's early, but we're actually seeing a little bit of that. So I guess we would be maybe it's the by the dip versus catch the falling knife. I think that's a great way for someone who's out there listening. You see this great stock. You see this great company. Maybe you have to be more open-minded because the price of where the stock is. That's us. Remember, you take our data, our view. You melt it with what he's saying, and maybe you catch a once in a lifetime opportunity for a great brand that happens to be a stock that's suffering right now. I want to thank Rob Pace, founder and CEO of 100 XCS partnership with Goldman. And you know what? I hope you have a partnership with Man Money because I think you are money. Thank you so much. Thank you. Great to see you. May everybody be back after the break. Coming up, pop open those umbrellas and tee up your toughest questions. Kramer takes on all comers in the Lightning Round. Next. [MUSIC] It is time. It's time for the Lightning Round! [MUSIC] And then the Lightning Round is over. Are you ready, skiing? Thank you. Happy Friday to you. How can I help? All right, brother. Powell industry, P-O-W-L. Another company that does processes and packaging for electricity and distribution. You know, this is one of those companies. We can, all these companies are on fire, electrical energy companies. And this is a good one. I'm going to feature it when I come back. Well, we're going to do PAL industries. I like that. Let's go to CAL in New York. CAL. Hey, Jim. Happy Friday. First time caller, long time fan. And thanks for your brilliant insight and all you do for your millions of followers. I try. Thank you so millions. I like that. Someone said hundreds of thousands. I hate him. What's up? My question is about a company in the digital ad space double verified ticker DV, David Victor. I know you love trade desk. I thought this might be a junior trade desk. It stalks down. It did not have a great quarter. It did not have a great quarter. So we have to, we'd rather own best of breed, which is trade desk, T-T-D. I like that. And by the way, I, green is always one. Well, he's always, well, I like, let's call green. You have him on the show. Ned and Ohio, Ned. Ned? Ned, you're wrecking my Friday. I'm having the time of my life out here. Ned, you are like really upsetting me. Ned? Ned. It's Jim. How you been? Ned has really hurt my feelings. Why don't we go to, hey, why don't we just go to Mark in Washington just for the heck of it? Mark. Wow. Who's that? Who's that? This is Robbie here, Jim. Booyah. Booyah, what's going on? Yes. I'd like to thank you very much for all the advice and all the access you've given to us in plain English. I had a, you know, one question to you. Thank you. Sure. I wanted your input on ARCC. I read capital talk. It hasn't. Yeah, you see now, okay, so this is a really interesting situation. Let's say I recommend that because it's got the 9% yield, then it goes down. I have no idea what loans they have, what's inside that, it's on it. What's inside that company? So I cannot recommend it even though it has a good yield. And that, ladies and gentlemen, the conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, here we go again, why the market won't mind who's in the White House. Next. People are dusting off the old Trump playbook after the last sentence to bait. You know what, I don't blame them. I mean, this is a show about money, not about friends or politics, for that matter. Something played straight and tell you what would work under a second Trump administration. First, the Trump administration rarely stood in the way of mergers. So you have to resume the Kroger, Albersons deal goes through, as does the Tapestry, Capri merger. I buy both Albersons and Capri if you think Trump has a much better chance to win the White House. Normally, I'd leave this kind of trade for the arbitrage guys, but these two feels very much given since the Trump's FDC would certainly let them go through. Capital One should maintain its positive trajectory, too, as it's buying Discover. A deal that will most likely draw a lot less scrutiny with Trump. You can buy either one of these. Trump will immediately suspend the temporary national gas orders. That's a stock and tone by the child trust. We talked about it in yesterday's investing club call. President Trump was not a big believer in financial regulation, or at least arduous financial regulation, which is great news for banks large and small, including JP Morgan, Bank of America, Goldman Sachs, and the two we own for the child trust Wells Fargo and Morgan Stanley. Wells just gave it a nice dividend boost. We got a lot of good dividend boost actually after the close this evening. That's because it's in the wake of the stress test that all the banks passed, and you can presume that those dividend boosts would be even larger under a Trump administration. The FDC and Justice Department have acted all big tech. Alphabet's been most degree, but Amazon's also been in the crosshairs of the FDC, and Apple has been abused, I think, by justice for putting out really good phones. I don't know what else to say. Neither candidate seems to like big tech, though, but Trump's administration would certainly be more circumspect about hammering great American tech companies. Trade will be hampered, especially with China. At this point, we have to believe that with the exception of Apple, companies with big Chinese exposure here, I'm thinking about Nike and Starbucks, are, I guess should say, will remain losers. Nothing new here. Apple makes his Chinese phones with Chinese labor, which has kept them relatively new from the government punishment. They put a lot of people to work there. Now, let's step back for a moment. I remember riding Amtrak to Washington and car with Biden when I was anchor of an old chokehold, cuddle, and Kramer, and he was the senator from Delaware. He knew the show, and we had a courts relationship. Biden went out of his way to tell me he was the poorest senator out of 100, because he owned no stocks. He was actually bragging about it. I don't think his view ever really changed. He's just not a champion of capital. He's on board with labor. He'll tell you that. He'll never go out of his way to help the stock market along, and he doesn't follow it much. Frankly, part of me admires that he sticks to his guns on this, but the part of me that manages money for my travel trust doesn't like a little bit. On the other hand, in the many years I've known Trump, and I know him fairly well, he's been wildly pro-stock market. Always watched it like a hawk. He loved bantering about the stock market, pure on the show many times, because even though he was in real estate, he enjoyed stocks. When he became president, he grated himself by looking at the Dow Jones average. He often told me there was way too much regulation. He was wildly pro-oil in gas, and although the environment wasn't really an issue for him. Period. Regardless of how you feel about those issues, that's very positive for a great deal of stocks. Remember, again, I said at the top, I'm trying to explain to you what will happen to your money. It's not about friends, about money. So if you think that Trump is more likely to be president, the overall tone of the stock market will improve. If only because the man can't bear to see it go down, as the major average of the barometer he uses is to measure his own job approval. You may think that's insane, but it's the reality. And if nothing else, hate him or like him. He's good for your portfolio. I like to say, as always, the more market's somewhere I promise you I'll find it just for you. Right here on Man Money, I'm Jim Kramer. See you next time. Last call starts now. All opinions expressed by Jim Kramer on this podcast are solely Kramer'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 Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer'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/madmoneydisclaimer. Earning your degree online doesn't mean you have to go about it alone. At Capelli University, we're here to support you when you're ready. 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