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 8/28/24
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Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramer America. Do my friends just trying to make you a little money. My job is to entertain, but put days like today to some sort of context. So call me 1-800-743-C to meet Jim Kramer. Look, it was a heck of a lot easier to own this stock of Nvidia when hardly anyone knew about it. Once you get this big, big to the point where you become the entire fulcrum of the stock market, you're going to have a target on your back. And that is exactly what I think happened tonight. To the stock, after Nvidia reported a fine and dandy set of numbers, because fine and dandy is no longer enough with this incredible company. Now, we know the pre-quarter jitters of National Nvidia Day wait on the average. Now, the cutting-hard 59 points was worse. SMB losing 0.6%. Now it's like company 1.1, 2%. And now with the stock sinking in after hours, we could be in for a hangover from what they're already calling Nvidia's Buzzkill quarter. But the day happened to be like the people having an Nvidia watch party. Yes, there was one. There's nothing to sell, but here move on. All right, let me just inject a note of sanity to pin-prick all the insanity about this amazing company. Nvidia just reported a stupendous quarter, 122% revenue growth for everyone's sake, adjusted earnings per share, increased 152%. Company announces a $50 billion buyback, $50 billion here, $50 billion there, come on. Yet it's still sinking in after hours, because the expectations got out of hand. Worse, Nvidia's become overly important to the fate of the entire stock market. That even I, who once named my dog after this company, think it's all gotten to be too much. We know that artificial intelligence is the way of the future. We also know that Nvidia is the best play on artificial intelligence. In the end though, Nvidia's become an albatross around the market's neck, because no one's stock can be a proxy for the future of the SMB 500. Yet that's exactly what happened as Nvidia roamed from around $500 billion in market capital 18 months ago, to more than $3 trillion now. Maybe after tonight it will shed that millstone, that albatross. You know what? That would be a godsend for all of us. Why is the Nvidia apotheosis wrong? Because business is a funny thing. Today before Nvidia reported, we learned that at the client of the firm, an important one, Super Micro, will delay a key SEC filing because it needs more time. Now this is something that's always going to be viewed as negative, especially because a short seller dropped the devastating series of allegations against the Super Micro just the day before. This is Super Micro, we're talking about, not Nvidia. But is it also negative for Nvidia? Do you think any of the people who are new to the stock bothered to ask whether Super Micro's delay has anything to do with Nvidia's future? It was strictly shoot first and then asked questions later. What was truly incredible though was how the contagion rapidly spread to the rest of the tech world, all the semis that I've followed. Almost every company involved with enterprise software, thank heaven, Salesforce reported good number tonight. Now the quarter itself, the actual Nvidia quarter that was reported, if by that point it felt like insult added to injury, when there was no injury to Nvidia. The company will muddle through and recharge at his next iteration. Blackwell goes full bore and we see renewed expectations. I hope they don't get excessive like they were tonight. And you know what? I just hope this is it for National Nvidia Day. Can we just call that a day? Alright, what is the solution to hanging on every Nvidia world? It's simple, it's as plain as the nose of your face, or at least a letter purloined and posted right in front of you. The solution is perhaps the most boring part of investing. I'm talking about diversifying away from nothing but tack. We often say diversification is the only free launch of this business, but the reality is, diversification is a total drag. Why would anyone ever want to own a stock up a bank or a defense come to your packaged food place, especially with the GOP dash once? Well most days these stocks are just ballast or a bunch of disparate entries that are unconnected to Nvidia or Super Micro or even Microsoft or Amazon to name two key partners of Nvidia that are also sinking tonight. And on days like today they don't do all that good a job in buffering the type we just. That's okay though. There are going to be days where all you want to do is lose less than the market. That, plus the cash you have on the sidelines, are not necessarily meant to help you make your make money regularly. They're meant for something bigger. They exist to keep you in the game when the hottest stocks turn cold like Nvidia has done. They prevent you from being so disillusioned, so bummed that you fall up your hands and say I can't take it anymore. Something that you might easily do if you only own the stock du jour, which sadly fits the bill of this unbelievably good company to this Nvidia. As someone who runs the diversified portfolio for my travel trust, I've spent the better part of the rally coming into today raising cash as I said we do after we saw the work of the wonderful incredible market historian Larry Williams, who's retiring. He said this period should be one of the worst for stocks, so we started raising the redger. He said that this would be a period that would be really horrible for Nvidia, so we didn't encourage people to buy it. It was so hard to part with anything as the market went higher. It was hard not to say go buy Nvidia every day, but our discipline says to sell a market that's over bought like this one, and our discipline said do not tell people to buy Nvidia ahead of the quarter. It's just two steam it. Our discipline says to own stocks like Stanley Black and Decker was featured possibly in today's Wall Street Journal, or Wells Fargo, a bank stock that's been riding the way of lower rates. It's why the trust owns Costco, which is nothing whatsoever to do with tech yet, has been an outstanding performance, why we constantly process it for Eli Lilly, because we believe this drug company can be the first non-tech stock to hit a trillion dollar valuation. Costco's lever to its membership dues, Louie's all about the revolutionary weight loss and diabetes drug more than that later. Now in the end, there's no denying that if you own any stocks, especially tech stocks, they were spacked around in the wake of National Nvidia Day. Hence, you need to have some cash on the sidelines, but days like today are the price you have to pay to try to get rich in the stock market, and make no mistake, if you own Nvidia for the last several years, well you are already well underway or you should be there. The bottom line, I always tell you to own a video not to trade it, I am not going back on that. But I don't think that's possible, unless you have a diversified portfolio as well as some cash on the sidelines, so you can handle a stock like Nvidia. They allow you to stick with Nvidia even when it's getting clobbered like it is tonight. They allow you to stay sane and still own stocks. They don't block the actions. They keep them open for an orderly departure for a correction after a big run. Sometimes that's enough to help you absorb the pain from days like today and perhaps tomorrow. Even on National Nvidia Day, what do we do? We take questions. Alex in New York, Alex? But boo yah Jim, pleasure to be on your show, long time fan. Just wanted to ask you what you think on Berkshire Hathaway. Berkshire Hathaway is what I call an upstock. It's been that way since Leon Cooperman first told me about it in 1983 and '84, and it remains an upstock even today. If you stick to diversification and have some cash on the sidelines, then it's much easier to own Red Hot Stocks like Nvidia, and you can absorb the pain that was felt across the tech sector today. Sales forces on the movie after earnings. I'm sitting down with CEO Mark Betty, our fresh office report, and that's it. That company did well, but it came in cold. Then what do we do with the recent batch of retail earnings? What do they do? What do they signal them for you, the consumer? I'm investigating and a firm just reported it for close night. I'm crunching the numbers for that. Red Hot, beaking up and buying I'll pay later stock. So stay with Cream. Don't miss a second of Mad Money. Follow @JimCramer on X. Have a question? Tweet Cramer. #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. AI might be the most important new computer technology ever. It's storming every industry, and literally billions of dollars are being invested. So buckle up. The problem is that AI needs lots of speed and processing power. So how do you compete without cost spiraling out of control? It's time to upgrade to the next generation of the cloud, Oracle Cloud Infrastructure or OCI. OCI is a single platform for your infrastructure, database, application development and AI needs. OCI has 4 to 8 times the bandwidth of other clouds, offers one consistent price instead of variable regional pricing, and of course, nobody does data better than Oracle. So now you can train your AI models at twice the speed and less than half the cost of other clouds. 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Listeners of this show will get a $75 sponsor job credit to get your job's 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 PB&C. Okay, all right, enough with National NVIDIA Day. They weren't the only company that reported tonight. We got results from Salesforce, the king of the enterprise software space. A quick data has been struggling for months thanks to constraint, tech budgets, clients trying to figure out what they actually need in a world full of generative artificial intelligence. Last time Salesforce reported the stock just got crushed. And while it's been rebounding since then, we need to see some really good numbers to validate that move. Tonight, that's exactly what we got. A fantastic quarter. Management raising their earnings guidance, bidding on cash flow, revenue margins, a great payload to Dreamforce in just a few weeks. But don't take it from me. Let's take him and Mark Bandy off the co-founder, chair and CEO of Salesforce to learn more. Mr. Bandy off, welcome back to Mad Money. Mark, you just reported an amazing quarter. Now, there'd been a transformation going on at Salesforce, which has been able to drop a lot of money in the bottom line. But at the same time, last quarter, you yourself said that there was some weakness. You felt that the environment couldn't be ever come. What has changed? Because this number indicates that either the environment's gotten better. You've gotten better both. Jim, it's great to be with you again. And I'm so thrilled to deliver this fantastic quarter. You can see the numbers. It's just incredible what our team has done. And in concert literally with our customers. But Jim, I have to tell you, I've never been more excited about Salesforce and what's happening with the technology industry. And we're super excited to get you to Dreamforce because you're going to see something that we didn't even get to talk about a quarter ago, which is Agentforce and how we're transforming our customers with this incredible new artificial intelligence. Tell us how big companies are using Agentforce. I know already it's being employed. What's it doing for ADP for this largest payroll processor? Oh, that's a great story. Well, Jim, we have deployed Agentforce now to so many of our customers and we're so excited because what we're helping them to do is to deliver a level of automation with their customer service or with their sales that they've never seen before. And ADP is a great example. And you know, Jim, we already run ADP sales organization, but also their customer service organization. But now, Jim, when consumers call into ADP, they can actually talk to agents, not just humans. And that agents are resolving more than 90% of all of ADP's inquiries. That is very exciting. And we see that same result in many of our customers. In fact, at another amazing customer that you know very well, OpenTable, well, they have 160 million consumers that are working with their service. And their deployment of Agentforce, well, it's also resolving more than 90% of their customer inquiries. And it's directly talking to those consumers as they have issues. So you not only have automation of the sales organization, the service organization, but now you have an extension of these organizations with agents. And why that's exciting, Jim, is this for the last two and a half decades with Salesforce has done is helped our customers build a great Salesforce, a great service force, a great marketing force, even a great commerce force. And now we're helping our customers build an Agentforce. And this is a breakthrough thought. All right. So this morning, my colleague David Faber, who appreciates your work greatly, was talking about Klarna, which a very good company I've worked with. I love David, by the way. Who doesn't? Bell loves him. That's, but that must be his mother. And we were talking about Klarna. And he mentioned, you know, Klarna's now cutting off Salesforce. They don't need Salesforce. They're trying to figure out exactly what to do with AI. To me, that seemed like, I'd like to know more. Let's put it that way, because what to do with AI may mean using Salesforce to do better with it. Well, I think what customers are doing is transforming, changing how they use information technology. That's a great story. In fact, you probably saw on LinkedIn, Jim, that Klarna just posted how they're using Slack to deliver a whole operating system to run their company in a whole new way using our new artificial intelligence capability that is manifested through Slack. Now in the quarter, Jim, we delivered, which is where we're talking about AI, 25 trillion, that's trillion with a T, Einstein transactions, which is this AI capability that's managing the agents and managing the predictive and managing the Slack and all of these capabilities to all of our customers. And we've powered more than one trillion workflows. That is accompanied by 250 petabytes of data. So that's across all of our customers hundreds and thousands of customers. Each and every one of those customers is doing three things, Jim. One is they're automating every customer touchpoint. That's automating the sales organization and service and marketing and commerce. And all those things that we've talked about for years is customer 360, right? The second thing these customers are doing is building a data cloud because you need this amalgamated data to deliver this excellent, accurate artificial intelligence capability. And the third piece is they're delivering agents. And these agents are the next generation of artificial intelligence, where you're able to go out and talk directly to your customers with AI. So it's the AI talking to the customer themselves. So the applications automating your humans, the data cloud amalgamating your data, and then the agents who are talking directly to your customers. Okay, I want more use cases. For instance, a friend of mine put together Windham, okay, just a fantastic company, the largest hotel chain in the world. And I'd like to know exactly what you're doing for Windham because they are an excellent company. Another great story, another great story who's using Agent Force to talk to customers directly about what they are doing with their products. And of course, you know, you've made your hotel reservation, you've got questions, you're getting ready to come in. You can talk to a human being, or you can talk in many cases directly to an agent. And why that is important, Jim, is because we're able to take the ebb and flow of customer demand. And we're able to kind of meet that as the customer needs it. Let me give you another great example of Wiley, the textbook company who's also using Agent Force. They have incredible seasonal demand right now when kids are going back to school. And they're able to use Agent Force to directly expand their customer service capability. And instead of hiring or trying to surge their customer service organization and train all these folks, which by the way, is what they've done in the past, now they're able to just use Agent Force to take that addition of the tax. That makes so much sense. So rather than hire a full-scale, huge suite of people that is only used during three months, you have these agents that are used during three months, and you don't have to do that. You don't have to let people go higher. You don't have to train people and not use them. No more what we used to call Goldman Sachs dead wood. It's an amazing moment where humans with agents are driving customer success. Jim, humans aren't going away. You know, we're, of course, you know, we're automating all these customer touchpoints with our apps. We're building the data, and now we're deploying agents. This is the three levels of AI. And Jim, customers have done a lot of science experiments with AI over the last two years. I've never seen so much money wasted by customers trying to build their own AI. It's crazy what has happened. And some of these huge companies like Microsoft have told those customers to go train their own models and build their own models and then retrain their own models. Jim, we've built all that right into our platform. So you can build your model and train your model and fine tune your model in our platform. You don't have to go do that to some hyperscaler. And Jim, inside that platform, then, of course, you're automating your whole company. And now you're able to deploy automatically all those agents. It's all one piece of code. So your sales, your service, your marketing, your commerce, your analytics, your slack, all of this is in Salesforce. Your data and now all your agents. It's an incredible new thought and how to automate a company in three tiers. Now you did say that humans aren't going away. But one is Amy Weaver, who you introduced me to does excellent work as CFO. When you always have to ask them to CFO leaves, why? What's happening? And you have replacement. Jim, it has been an amazing story with Amy Weaver, who came in more than a decade ago as our general counsel. And as you know, four years ago, when Mark Hawkins, who is our fourth CFO, decided to retire, she decided to come in and kind of take three or four years. It's been incredible, incredible transformation that she's led to be our CFO and to move from our general counsel to be our CFO. And she's decided at the end of the fiscal year, which is next February in 2025, she's going to step down. She'll still stay with the company for more than a year or more after that to onboard the new CFO. And yes, Jim, we've hired hydrogen struggles, incredible person Jeff Sanders, who we've worked with for 25 years to find our new CFO. So, you know, this is a great opportunity for a lot of folks that were talking to internal candidates and external candidates who want to be Salesforce's six CFO. This is that moment understood a great honor to be one of those. I understand operating, non-operating, no, I'm sorry, non-gap operating margin, a stellar 32.7, 210 basis points. That makes me feel that maybe the IT environment's gotten a little bit better. Jim, I think we're just in an incredible new environment. And I think that technology is like nothing I've ever seen before. And every company understands because they're using these new AI models at home or personally. But now we can really show how they're going to get value for their companies to do four things. We've talked about this. Now we're able to manifest it and we have these amazing stories like we just talked about with OpenTable and ADP or with Wily or with Window. But it's amazing what's going on. So, but the people understand this. I mean, maybe they have to come out the dream force because I feel like some people say, wait a second, this is technology. We don't know how to use it. It's costly as a fortune, like you said. I mean, does it just have to be a story told in order to realize the savings rather than realize the expenses? Jim, at dream force, we are going to light up for our customers. Every single one who comes to dream force, I'm going to turn agents on for them. So, you come to dream force. You want to know about how to automate all your customer touch points. We're going to do that. You're going to want to know how to amalgamate all your data and federate all your data clouds into our data cloud. We're going to do that. And now for the first time, Jim, we are going to turn agents on sales agents and service agents. And if you know it, remember, Jim, we're also building the agents for Workday for HR as well. We're just on with Carl Eishinbach. So, agent force is becoming this incredible new platform that you can even build your own agents. Well, this is going to do for customers and we're going to do it for them there. So, we're going to have thousands of companies turned on at dream force with agent force. And that is going to be a remarkable thing. And what they're going to do is they're going to be able to connect with their customers in a whole new way. And we've got the stories that are so inspiring with what these customers are already doing. And we're working. I'll just tell you one thing I'll give you a little bit of. It's just you and me at this point. Jim, you got to listen to this. This is amazing. The largest healthcare company in the United States who has the largest epic database. Kaiser. With 20 million consumers is resolving more than 90 percent of all of their patient inquiries right now with agent force. That's incredible. It is incredible. Remarkable. But what was that? We won't be going out the dream force if you give it all away. So, let's say right right here. This isn't this is a Mark Betty up who's a bullion as they say. I am so excited about the future. I'll say September 17 to 19. I will see you and I'll also see Tiny Dancer. Jim, I'll see you later. Thank you Mark Betty. I can't wait to have you. They're probably the best. They have money back into the print. Coming up Kramer is no secret shopper. He's on the record and hunting for retail deals. Next. At Morgan Stanley, old school hard work meets bold new thinking. At 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit, new world ideas. Morgan Stanley. To learn more, visit morganstandley.com/yus. Investing involves risk Morgan Stanley Smith Barney LLC. At Ever North Health Services, we believe costs shouldn't get in the way of life-changing care. 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. [Music] Now that retail earnings season is in full swing, we're seeing a real difference between the halves and halves nots. I mean Walmart and Target turn on terrific numbers. So did TJX, the off-priced kingpin of the child with trust zones. These are all chains that offer consumers great value. But as we've started hearing from more small and mid-sized retailers, Wall Street's been a little more jaded. Not all the smaller chains saw their stocks get hit. But most did. And the decline tended to be much larger than the few gains from the group. Of course, the markets in this reaction is often wrong. People make a lot of mistakes during earnings seasons always tell you. That's why tonight we're going to walk through the half-dozen of the retailers that just reported. See whether the moves and the stocks make sense. Maybe they need a little adjustment. Let's start with the two retailers that saw their stocks rally and response journeys today. Surprisingly, they're both department stores. Remember those? Nordstrom and Coles. Let's thank Nordstrom delivered better than expected same-store sales and a substantial earnings beat with management raising its full-year earnings forecast. Now you might not think an expensive department chain would work here, but Nordstrom's strength came from its off-priced Nordstrom rack business with 269 stores around the country. As for the court department store, it got a boost from the company's annual anniversary sale. More of that sale fell during the second quarter of the year, which really bolstered the numbers even as it will hurt the current quarter. Well, overall, I think Nordstrom should get credit for leaning into value. That's what the customer needs and wants. Stock rallied over 4% today, but while that's just a file, viable. I'm not willing to stick my neck out. I have to tell you though, I think that this rack is worth more than the whole chain, and that may be the conundrum people feel. How about Coles, the other retailer that came ground today in response to earnings. These guys are trying to amount a comeback under the leadership of new CEO Tom Kingsbury. He's a retail waitress, formerly at Broglinton's stores. Wow, what he did with that one. But I think the stock's mild bounce today was more of a reflection of the fact that Coles was down 34% from its April highs as of last time it's closed. Although I like its total embrace of the fast-growing Sephora business, which is embedded in over 900 Coles locations. At the end of the day, this was a mixed quarter for the department store chain. Coles saw a 5.1% decline in same-floor sales, worse than expected, and a significant revenue risk. Kingsbury said, and I quote, customers exhibited more discretion in their spending, which pressured our sales end quote, "bad." Of course, there were pockets of strength, like the aforementioned Sephora, but with home decor, that was nice, and gift and impulse purchases. Wow, impulse and Coles. And while their sales were solved, Coles certainly executed well, delivering a 15-cent earnings beat off of 44-cent basis. It's been a while since we've seen one of those goals. Imagine also raised a four-year earnings forecast dramatically. It is a lower disreventable outlook. Hey, I'll take it. Long story short, Coles do imagines muddling through a weekend environment pretty admirably, but I can't embrace the turn-around until we see some improvement on the sales front. I love that Sephora business, though. How about today's weekend losers? Let's start with what had been one of the hottest stocks of the past few years. Abercrombie and Finch, hand out, stock plunged 17% today. Despite reporting, I thought it was a pretty darn good solid set of numbers. Abercrombie had 18% same-floor sales growth, higher than expected, 21% revenue growth. They earned 250 per shares. People were looking for 222. That's 127% earnings growth year over year. Hey, how about Nvidia? The company even raised its four-year sales forecast aggressively, also boosted their operating margin guidance. So what was the problem then? Well, the sellers seemed to focus on three words from an otherwise positive quote. Abercrombie's, "Well, let's just say, really, to the CEO has to play so well-run, fan Horowitz." And she wrote the words "increasingly uncertain environment" into the call. Really? And while the updated four-year forecast was terrific, the forecast for the current quarter represented a deceleration from the results they just reported. Hey, look, frankly, I'm going to ask me a short story. They're the only explanations I can find for this. Just meditating. And I don't think it's convincing. Abercrombie's giving conservative quarterly guidance into a tough operating environment. And with football season on the rise, and let's just say I take the over on the third quarter outlook, draft Kings has nothing on me. In the end, the stock rallied 16% in the three weeks before the quarter. Today, it basically just gave back those gains. I say buy the pullback and one of the hottest retail concepts out there that's very well-run. I think it'll bounce. It's overly punished. Second down retailer, it's too close to home. I'm talking about footlocker. As a former holding the child of trust, we bailed on in June. Absolute numbers here were not as strong as Abercrombie's. Footlockers still firmly in turnaround mode under new CEO Mary Dillon. I should say relatively new, but they were still better than expected across the board. I actually liked the quarter. After five quarters of same store sales shrinkage, footlocker returned to growth up 2.6%. Handily-based dishes, that should have been enough to keep the stock a little bit higher. Gross margins expanded, that should have been enough. Images increased by 10%, that should have been enough. And they only lost 5 cents per share when Wall Street expected a 7-cent loss, but they still lost money. How come the stock lost 10%? Well, first, the stock came in the quarter again, like some of these others. Very hot. Up 45% for the last time the company reported May. Second, I think the sellers are basically saying that they don't believe footlocker can make its full-year forecast, because they'll need a couple of strong quarters to make the numbers, especially when the earnings front. But having listened to the cop school matchmen laid out some major positives. Most important of all, footlockers' relationship with Nike seems to have improved substantially. Nike needs more than Nike thought. That's very important. It ain't just all DTC. At the end of the day, footlockers and turnaround story, it's going to take at least a couple more quarters to unfold, but it's going to unfold. Stockway have gotten ahead of itself over the summer, one reason why we sold it for the travel trust. But if you have a larger review, I think this is a viable dip. PVH got hit today, parent company of Calvin Klein, Tommy Hoviger, sold stock slide more than 5% and company reported a solid set of results last night, slightly higher than expected sales, paired with a monster 72-cent earnings beat off a 229 basis. I mean, the second quarter was good. Problem here is that the guidance for the current quarter was completely mystifying and outright bad for that matter. The expected sales to be down 6-7% that's worse than we thought. And the earn 258, we're looking for $3.12. I mean, that's brutal. Now, PVH typically guides conservatively, but this was below, much more below the expectations than usual. And given that the stock's been more or less flat over the past 12 years, with no strategic plan that I really have any confidence in, I can't blame anyone for selling it. It's starting to really bother me. Finally, Bath and Body Works, the struggling mole wheat killer, reported another bad quarter today, shares sunk 7%. Corporal sales missed, revenues missed, and the only earnings came in just a penny better than expected, which was still down 7.5% year over year. Worse, management guidance for the current quarter was horrific, and they slashed their four-year earnings, their four-year forecast. CEO, Jennifer Boswell says that, quote, "taking a prudent approach," end quote, to their outlook by cutting numbers. So I'll take the prudent approach and tell you, please don't go near Bed Bath. You can go to Bath and Body Works. It smells nice. You walk by, I suppose. I always think, can you smell it? I smell it right now. I mean, you can just, you know, reflect on it. It's like international flavors and phrases right here. Or maybe it's here in the vagus nerve. Bottom line, looking back at the last 24 hours, in retail, Nordstrom and Coles deserved a rally today, but they're both very much in show-me mode, especially Coles. Abercrombie and Footlegger got way too hard. I really like the Footlocker Abercrombie great-buying opportunity. As for PVH, Bath and Body Works, all I can say is, as the man who is behind so much of the greatest of the show, Cliff Mason said to say, all I can say is, if you lie down with dogs, you wake up with fleas. Okay, how about Mike? You're watching. Mike! We are Jimmy Chil. Yeah, I'm chilling. I chilled all day today because it was national video day. What's happening? What are your thoughts on Rivian stock short-term? I think Rivian's a great long-term stock. Why? Because the actual product is so fabulous that I would be the last thing I want to do is write these guys off now that they have a deep pocketed partner. Does that mean you should own the stock? No, it means that you shouldn't sell the stock necessarily, but it means the company's sticking around. And that's what really matters. Okay, listen, Nordstrom and Coles deserve to rally today. Abercrombie and Footlegger didn't deserve to drop so much on good numbers. But as for PVH and Benton Body Works, why don't we just steer clear? You can go buy some Calvin Klein Tommy over there. That's fine with me and not the urgent. Much more money I had, including my suicide with the CEO of a firm, fresh off the company's report. Then what is it that make sure I'm twinkies signaling about the impact of GOP-1 weight loss drugs? I'm unpacking the latest in the impact of food stock space, following J.M. Smucker's earnings. And I worry of course, I'm not in a position of the lighting round, so stay with Cramer. What's the future look like for a firm holding? It's the financial technology company that's the king of Buy Now Pay Later. Now, you might think they're struggling right in a world where the consumers got and were picky about discretionary spending, unemployment rate, kicking up a little bit. But then again, they're going to get a huge boost when the Fed starts cutting rates. And hey, you know what, they're already doing pretty darn well without the Fed help. When a firm reported it to the close tonight, they blew away the essence, better than expecting gross merchandise value. That's a key metric. Great take rate, operating the income, and basically every other key metric looking terrific. Even better management gave tremendous guidance for both the current quarter and the full fiscal year. Now, what are the stocks flying in after hours? It should be. But can it keep running? Let's think deeper with Max Lefton, the founder and chairman CEO of a firm, pouring out more about what happened with this quarter and the future of Mr. Lefton. Welcome back to man money. Thank you. You're good to hear. There are a host of narratives involved with this quarter, all of them incredibly positive. I'd like to start with the fact that you're the volume this year, volume through your network was rather extraordinary. At a time when a lot of people are saying that the consumers weaker. So how do we explain this? Well, I think the honest answer is we're still small. And so even if you think the world is not growing quickly as it perhaps should, we are growing extraordinarily well. You can see that we click 30% very nicely. We grew revenue even faster than that. And people like a firm. They enjoy using it. Well, I would also point out that there are a lot of people who felt that you won't be profitable for a very long time. I think it's safe to say that you make great strides in profitability this quarter. That's right. We did and we're on the record now. Gap profitability is next. That's we're coming after. Well, that's how stock goes up big. And I know that you've wanted that. You've certainly always been very candid on the show that you want to give everybody credit who can get credit and deserves credit and yet still make money for shareholders. But I thought was for me the most enchanting thing was the credit quality. Dirty day delinquencies holding in even though you are supposed to be lending to people that maybe other banks wouldn't lend to it. That's right. And I always want to repeat that credit outcomes for us is a policy decision. The numbers you see are not and are never an accident. We manage credit very carefully. The oft repeated line here is credit is job number one. We always always always start with lend when you can and expect to get paid back. Now, the mission is to bring in as many worthy borrowers as we can to help as many merchants sell as much merchandise as we can. So, of course, we're very growth focused, but we're not going to compromise credit. And that's in the numbers right there. And that is something that your three the top three brands in the country commerce platforms all must embrace or else they wouldn't bother to handle your business. That is right. We are rich with extraordinary partnerships. Now, Apple Pay is something that just started. This is one of those. I think we're all kind of used to it, even though we didn't have it a couple of years ago. What's been your experience firm with Apple Pay? You know, that's not live yet, but we are so excited to bring it out. We've been working very diligently. And it is coming. We are just thrilled to be included. It is a beautiful product. It's the digital wallets, the wallet I use personally, and many of us do. And that is a beautiful experience. Can't wait to bring it to the world. So when we see the analysts, these banks, we always are gripped by the idea that some do well when rates go lower and some don't. I would presume that your business is a volume business and that therefore rates go lower. You'll have more volume. You know, every time the federal reserve makes a rich decision, we are a recipient of that news, and we adjust the business to make sure that we play well with that. Raise up. We have to adjust and we've shown over the last year plus that we know how to win in a relatively high rate environment. As the rates are expected to come down, we'll certainly benefit over time. It will be a tailwind, but we know how to win under any rate scenario, as I hope we have shown. Well, that's true. You're not MasterCard or Visa, which have no rate scenario risk at all, but you do have a great card, the affirm card, and can you give us a sense of what you're taking about how let's do it? It's doing really well. I love all my children, but it is my favorite child as far as products go. It's done really well. We see great adoption, great economics, better credit performance than the rest of a firm, just a great product that people love, and we are still very much at work building new features. We're rolling out some really cool integration with the rest of the affirm ecosystem, even as we speak, just saw a really fun product launch this morning that I'm sure we'll talk about next quarter, but it's a great product. It's obviously growing much faster than the rest of the firm because we are very hard work bringing it to as many users as we can as quickly as we can. Including overseas, I see that going live in the UK, you think that this is obviously something that is a universal preset? We certainly think that what we do, the way we do it in particular, no late fees, no deferred interest, no junk, makes a lot of sense for every market. It's not limited to North America. We've been very strong in US and Canada for quite some time. UK is happening this calendar year. Super exciting. That's not where we're going to stop. We have many other geographies in mind, and we think as we roll out our core products to these markets, there's always an opportunity to bring more universal access through things like a firm card. In the time remaining, I have to ask this, you are very involved with Ukraine, which I think you and I both believe is a very important cause. You're taking on how things are going. I am mostly not a geopolitical specialist. As a human, I just wish the killing on all sides would stop, but that said, I am a Ukrainian. My heart bleeds for what's happening there. Fair enough. Let's leave it at that. I think it's important to bring that in out. If only just because you and I talk about it, and I think other people should know, why not? You had a great quarter. We also have time to be able to say something good about Ukraine. I want to thank Max Lovechin, founder and CEO of Affirm Holders. Congratulations. You blew it out. Great job. Thank you. Thank you. Yeah. My perspective is right here. It is time to start the light round. Good to be able to start the light round. Good to be able to start the light round, but it's time to start with my vice office. Don't do it. Of course, that definitely played with him. And then the lightening round is over. Are you ready to keep that? To start with the light round. I want to start with David and Marilyn. David. Hi, Jim. How are you? I'm good. I'm good at you. Done your way. I have to say, truly, we are truly lucky to have a soul such as you in our world. I was wondering what your thoughts are on the company to serve the world body. Okay. We are not going to be. We're back in that moment where we're not recommending copies that lose a ton of money because it's just not the right time. Let's go to Mike, what if I get Pennsylvania Mike? Yeah. Listen, a couple of months ago, you recommended filters. B-L-D-R, first source. Yes. I took a position in it. My question is, with the lake test already happening, does that price bake in? No, no. If it's not 15 times or just thinking go higher, this isn't precisely the kind of stock you should be buying at this stage of the cycle. Hold on. Let's go to Ron and about to Ron. Hey, Jim, boy, you buddy. Hey, I'm about C-M-G. C-M-G, I bought it. I think you're in great shape. Why? Because I am told and I read a piece which says that they've got this new chicken that is the honey chicken. And I got to tell you, it doesn't sound like junk food to me. It sounds like good food to me. And that's why Chipotle is probably done going down. And I like it, but Brian Nickel, it's a twofer. Yeah, I like him at Starbucks. I'm not done. Let's go to Fred in Kansas, Fred. Hey, Jim, good to talk to you. First time caller, longtime listener, a hopeful word. Okay. And I'm calling that Vertex pharmaceutical. I think Vertex is great. Well, consistent by both his franchises is incredible and a terrible disease. But I also like the fact that what they're doing in terms of opiates, this is a great company. No one ever talks about it. We've had them on. I think that they're brilliant. Okay, period, period, that story. Let's go to Sam in New York, Sam. Big booty out to you, Jim. Done your way. Also, what's up? She's a longtime listener, first time caller, club member. Sounds good. Sounds good. Sounds good. Oh, thank you. Love your work. And by the way, I left you a description of two gentlemen of Verona of the video. Did you like that? You know, I needed to put some Shakespeare and that's my father in English major's favorite, favorite moment in that incredible play. And I'm bringing the card back. I bring back Barnes and drug company, but it's already gone. That's more of a device company. Go ahead. Why did you hear your thoughts on Viking Therapeutic? Okay, Viking Therapeutic. Look, obviously, they've got something that's very good against against a weight game. But here's the problem. It costs so much money to build the factories. They're gonna have to get a takeover to be able to do that. And that, ladies and gentlemen, are the lightning round. The lightning round is sponsored by Charles Schwab. Denial, it's not just river in Egypt. That's what I think every time the food and beverage companies go out of their way to claim that the GOB-1 weight loss drugs have no impact on their business. The latest is J.M. Spucker, which missed numbers pretty badly this morning, with softness in pet food, higher cost in coffee, and a slowdown in sweet snacks. Stock finished down almost six bucks. Still, they were eager to defend the $5.6 billion acquisition of hostess brands last year. Arguably, I think the worst time in history to get into a 20 business. I get the coffee issues. Coffee's been volatile. I sometimes somewhat understand the problems with pet food. But I'm raising my eyebrows at their explanation for the not so hot sales from hostess. Smucker swears by the acquisition. That's awkward enough. But I find their alibi for the weakness in snack food questionable. On the conference call, chairman and co-worker blamed the microeconomic environment and a slowdown in the convenience store channel. Smucker went on to warn that consumers, quote, "continue to be selective in their spending, a trend that is largely driven by inflationary pressures and diminished discretionary income," end quote, which Smucker says, quote, "disproportionally impacts the hostess brand. I'm not convinced. Our inexpensive convenience store impulse buys sweets really that economically insensitive. More important. I think it's insane that Smucker refused to acknowledge the possible impact of GOP just won weight loss drugs. Smucker admits that it often gets the questions from the media and the responses, quote, "we look at it on that very closely," end quote. Apparently, I've got some new data across households and reached the conclusion. And I quote, "that there is really no meaningful impact from GOP-1 drugs." Really? When the drugs first hit the market, I thought that this story was overdone. But now that one in eight people take these drugs, and these are for people who are over indexing eating this stuff, I think the impact will be pretty harsh for those who prevail what we call junk food. Hostess is the definition of junk food. The whole point of these GOP-1s is that they blunt your cravings, and it's cravings that drives in sales of, I don't know, donuts and ding dongs and all the rest of this stuff. Plus, this class of drugs is still in its early innings. I don't think we'll discover that people lose interest in taking them. They're the most effective way to lose weight in history. I don't think there's any going back. But the packaged food companies keep telling us there's been no impact from these drugs. The liquor companies are adamant that they haven't been heard, even though we know liquor consumption drops dramatically when you get these injections. The doctors very specifically put heavy drinkers on GOP-1s because they blunt your cravings for booze. They put those who can't resist junk food on these drugs because it gives them the willpower they never had. Yet almost every food or beverage company says they have data that shows GOP-1 drugs aren't impactful. I really want to see that data. Let's see it. I find it hard to believe that they can prove the glaring decline in junk food consumption comes down to the economy, which is the excuse they always use. I want to give these outfits to the benefit of the doubt because Mars, very smart company, just paid $36 billion in biggest snack food at company acquisition in history, buying Kalanova. That's Pringles, Cheezits, Pop Tarts, Rice Krispy Treats. But as I listen to Eli Lilly and I see it's stock climbing toward the trillion dollar level, I think these junk food stocks are on the wrong side of history. I'm not inclined to buy the weakness in Smucker or any other food company that has hefty sales in snacks of any kind. Even if they really haven't been hurt by the GOP-1s yet, I think it's only a matter of time before they get hurt in the future. The denials are just too packed and prescription growth is just too great to believe that these weight loss drugs won't end up as a deterrent to buying both junk food and then, ultimately, the food and beverage stocks of the companies that make it. I like to say there's always more market somewhere, I promise I'll find it just for you right here on Man Money. I'm Jim Kramer, see you tomorrow! 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. This is the day of the big sale at your gift shop, which isn't just a big day for your business, but for the network keeping it all connected. So is it possible to get business internet you can really count on? It is. 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