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 4/22/24
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From powering the light bulb to virtually powering our entire lives. 30 years ago, State Street launched the Spyder S&P 500 ETF, Spy. A big idea that inspired the world to invest differently, and still does. What can you do with Spy? Before investing, consider the funds, investment objectives, risks, charges, and expenses. Visit ssga.com for a perspective containing this and other information. Read it carefully before investing. Spy is subject to risks similar to those of stocks. All ETFs are subject to risk including possible loss of principal, ops distributors, and distributor. My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a more market summer, and I promise to help you find it. Man, money starts now. Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramer, I've got to build my friends. I'm just trying to make it a little money. My job, not just entertain, but to put it all in context, so call me at 1-800-743-CMC. Tweet me to him, Kramer. Not all rallies are created equal. Some are just plain better than others. Today's move with the Dow gaining 254 points. This will be climbing 0.87%, and then as the poll voting 1.1%, I actually did feel better than the, you know, kind of running the mill rally, because it was as broad-based as you can get, and that's a terrific sign of staying power. But we had a real ticket to get through, so let's parse what happened today and figure out if the market can keep rebounding, because it's not clear to me that it will. First, we came in with a negative oscillator reading minus 5.64%, and I was negative as it was a couple of days before, but still a coil spring. Now, you know I follow the SBA oscillator religiously. When you have many down days, you can almost always count on a bounce. I like to look at a year's worth of the oscillator. We bounced off of oversold levels in August and twice in October of last year at almost the exact same readings, and then the market just roared until this three-week selloff. It's reassuring that the market can still bounce, isn't it? Because it means that there's some rationality to things, but not every oversold bounce is staying power. The oversold oscillator readings in August and in early October did not, in retrospect, indicate a true bottom. Matter of fact, things went right back to being awful. So maybe it is a bit of cold comfort. Second, the Nasdaq 100 started out marginally higher today, then again at 9.48, it plummeted, dropping from 17.182 to 17.01.0. It then bottomed at 11.15, very mysteriously, frankly, it started its way up. This move did, though, break a key pattern that we've had for weeks. When the market opens up, then it starts going down and then stays down. Nothing in particular happened to turn things around, but the bottom market seemed tame. Oil wasn't running unusual for this market, isn't it? The fact is the buyers came in because stocks got low enough to tempt them. The SBA never went negative, but remember the real sellies, the carnage has been in the Nasdaq. Third, this was really interesting. The market shrugged off the sudden reversal of a giant company of Verizon after an up opening. The giant telco company reported in the early morning, the stock initially rallied 3% in the before market trading. Then, when the regular market bell rang, the stocks still opened up and it was increasingly down from those lofty pre-market levels. Verizon then experienced a sickening decline as we realized that we continued customer losses and the cash flow disappointed. Almost every line item came in a week ago. There could have been a lot of negative read through, so Verizon could be a sign of weakness for Apple or the broader consumer, but none of those came up. If the market were looking for reasons to sell off Verizon's stock falling in 4.6% would have been an easy one, but it didn't happen. Absence of an egg in it. Fourth, when Tesla goes down, it tends to hurt everything water related today, though. Tesla's price cuts $2,000, with the price of three of their five models, and its continued travails around laptops and executive departures actually produce rallies among its big competitors, Ford and GM. Ford actually led the entire S&P with a 6% gain. Why? The takeaway here was that people still want cars. They just don't want Teslas or even EVs in general. We own Ford for the travel trust, and by the way, you can join the CMC Investing Club ahead of Wednesday's big club meeting to find out more. That's a noon meeting. Now, the long story short is Ford has the best non-electric line up, including hybrids, popular internal combustion engines, and, yes, the F-150 truck line, the greatest selling truck line in history. And that's where the money is going. Hey, by the way, Ford's one of the cheapest stocks in the entire S&P 500 even there for today. When you see that kind of action, it means that market's willing to buy cheap. Even though it also means it's selling here. Fifth, speak of buying cheap. The financials just keep running. You've seen that? It is a very impressive move. You can see the stocks are gaping more in the back of America. Two lagers, they've come roaring back, but nothing comes close to American spend. With a 13-point advance last Friday, off a quarter that was initially panned as a disappointment for people reassessing the stock of a fighter. You know, it's almost up to another two bucks today. Six, NVIDIA of the stock bounce. Now, listen to this. Don't laugh. This company has lost more than $300 billion of market capitalization from the top. What was the straight line? It's been a hideous stock. As any decline, I can recall, frankly, down 10% alone on Friday. Now, the stock mounted in advance today, but not enough to race Friday's gains. NVIDIA's gone from being the star of the show to being the good of the game, and I'm not talking about the greatest of all time. Of course, we've learned from multiple pieces of research today that NVIDIA, the business, is doing quite well. Now, I think the stock finally got cheap enough to start tempting people. I don't want to make too much of an NVIDIA because all high multiple stocks came roaring back today. But if NVIDIA couldn't rally today, it would have been a horrible sign. Luckily, it didn't happen. I don't know how much staying power NVIDIA stock is going to have though tomorrow, because after the close tonight, Cadence, a very close partner of NVIDIA, guided down for both sales and earnings. And that is surprisingly bad. The house of pain. I need to think deeper in this one to see the impact on video, because we've got multiple reads saying NVIDIA's doing quite well. I don't get it. 7,000 representatives get met in Google a lift by banning TikTok. We don't know what the Senate will do, but it's pretty darn good news for our companies. Now, Mark Zuckerberg did a good job designing this reels, a viable TikTok competitor. He was involved with it apparently at every step of the way. And that will cause his numbers to jump. So, I got to tell you, that stock could be very interesting. Again, even though it works this week, eighth and final development sales force was talking about buying the enterprise software coming from about, actually about $12 billion. Some are going to do this potential purchase price would demonstrate a lack of discipline and to get beaten up for it. Salesforce was going back to its whole way, spending like a drunken sailor. There's nothing to deal, it's not happened. Company's much more disciplined than the critics thought to the stock jump. Salesforce could have been crushing it for NVIDIA. Now, there are a bunch of counters to all these positives. First, if the trusted oscillator is trusted, it should be. That means we're going to go up and then down again, then up again, then down again before we reach a good level for an advance. Looks like a W. We could rally for 10 days before we get punished or even less, but the punishment will come. I think we need to be ready for that. So, after a couple days, you got to want to reposition with more cash. I will explain that on Wednesday's club meeting, too, because we're going to do that. Second, we have a bunch of bond auctions this week. I am very concerned that we can't get through the week without a bond selloff. The bonds are very much in control here, more than that later. And the only reason we can bounce today is that we had a team bond market. I'd be stunned if bonds don't move much down in pricing up and yield into these three auctions. It's a two-year, it's a five-year, it's a seven-year, all of which are normally large. Now, look, we do get through those auctions and we get a good personal consumption expenditure number on Friday. Then we deserve to keep going hard, but I think it's a mighty tough, tough glove at the run through. Kind of like that one, but cleanly, sweet, very hard. Third, today's bounce might just be because nothing happened in the Middle East this week, and absence have been negative. I don't think that'll continue the case. If you want to put it on peace in the Middle East, be my guest, but history says it's a bad wager. Finally, remember that if a stock goes down 5% and then goes up 5%, you do not get back to even though a lot of people seem to be confusing that, you're still down. We had a lot of stocks that went down a great deal last week. They're going to have to climb back to the tree out a great deal in order to be where they buck. We are, so if you're down 5%, you got to go back a little more than five. I think it's a total order. Another reason why the oscillator reading is a bit of cold coverage. Let me give you the bottom line here, a very mixed picture. I think the positives do outweigh the negatives, at least for this moment. History ever says it won't last, so be ready for another decline. Raise some cash. When is it going to go back down? I don't know. Probably should go up first, but there's just a lot to worry about, and I don't want you to think or get complacent. Let's go to Sharon in Minnesota, Sharon. Oh yeah, Jim. I'm a club member, and I have a question about Elf. I know that also got hit, but do you think that Elf is a buy holder of Elf? Okay, so Elf is a high multiple stock that didn't used to be, and yet it was up today. First of all, Sharon, thank you for being a member of the club. I hope to see you on the Wednesday club meeting, but Elf is good. Elf is other than the chart pattern, which is not that good. But we spoke to, I don't know, less than 10 days ago, and things are really, really strong, so I would like you to be in that stock. Let's go to Trey in Texas, Trey. Jim, I rage canceled my auto policy on notice of an 8% premium increase, only to discover a lapse in coverage can be far more detrimental. My new 90% higher rate, paired with effective anger resolution classes, has really put a strain on my budget. As insurance companies are doing far better than I am, I wanted to see if you think I should buy Progressive here and share the line. Yes, the answer is absolutely yes, and not just because the anger management thing, which is really something I don't know a thing about. You'd have to help me with that, but I will tell you this, the Progressives do me incredibly well. By the way, they are the most AI-oriented of all the insurers. Interesting, isn't it? They price really, really well. Now, all right, listen to me. I think the positive for the moment, in this market that way, the negatives of that cadence took my breath away. Remember, they are the partner of their video, but history says it won't last anywhere. May or may or may not, let's try it in and out of sex, recent downturn, including some Super Micros 22% drop of Friday. I'm going to give you my take. I think it's going to surprise you. Then, Netflix, no chill. After the company's post earnings decline, I'm examining the bull and the barricades for the company, and gold just had its worst days since February of 2023. But after this year's run-up is the time to consider the yellow medal, I'm going to sit down with the CEO of Barric Gold, the stock's not doing that well, I know, to get maybe a little sense of the action. How about that? So, stay with Kramer. Don't miss a second of Mad Money. Follow @JimCramer on X. Have a question? Tweet Kramer, #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something? Head to madmoney.cnbc.com. Fact, running a business is not getting easier on your wallet. With higher expenses on materials, employees, distribution, and borrowing, everything costs more. Also a fact, smart businesses are reducing costs and headaches by graduating to NetSuite by Oracle. NetSuite is the number one cloud financial system, bringing accounting, financial management, inventory, and HR into one platform and one source of truth. With NetSuite, you reduce IT costs because NetSuite lives in the cloud with no hardware required, accessed from anywhere. You can cut the cost of maintaining multiple systems because you've got one unified business management suite. You improve efficiency by bringing all your major business processes into one platform, slashing manual tasks and errors. Over 37,000 companies have already made the move. See how you'll profit with NetSuite, and then you can think of all the ways you could be spending the money you save. 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Listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at indeed.com/madmoney. Just go to indeed.com/madmoney right now and support this show by saying you heard about Indeed on this podcast, indeed.com/madmoney. Terms and conditions apply. Need to hire? You need Indeed. All right, here's one for you. How does the stock lose nearly a quarter of its value in a single session? As Super micro computer did last Friday, when it plunged from 928 down to 713? All right, we can rely on the reason given to us by journalists that the company failed to pre-announce on an upside surprise. Like it's done in seven of the last eight quarters, so I get that. Somehow people have been loading the thing that this data center and artificial intelligence stall work will pre-announce to the upside every time it announces when its quarter will be reported. Super begger did that often enough that I think its shareholders just got somehow addicted to it. Some blend of decline on the stinging after effects that Taiwan's semis cautious guidance gave us cast a poll in the whole tech center sector. I'll give them that. But I don't think either of these reasons explain what happened to Super micro. As a matter of fact, I think they're purely intellectually lazy thinking. There's a simple reason Super micro and its high price to earnings multiple brethren have been getting hit over and over. Because bond yields have been soaring ever since we realized that the Fed was likely wrong when it predicted we would get at least three rate cuts this year. This is a market that's become way more hostile and richly value growth stocks, because that's what happens when inflation stubbornish rates don't seem like they'll go down anytime soon, even though we thought they would. Some get hit harder than others though, because they might not have much of a competitive mode, even like it seems that they do. For example, Super micro is partnered with NVIDIA, providing service solutions for the world's best chip maker. But it's not an essential partner, my turn, but it's not essential. Super micro has become integral to the artificial intelligence people because it makes non-proprietary products that'll help customers who are using NVIDIA's ultra-fast chips. I wouldn't put it in the same campus NVIDIA's true partners with proprietary relationships like Cadence, which are important this evening, waiting to hear about that. I got to do more work on it and synopsis. Cadence makes software that helps NVIDIA design its chips. Synopsus also offers design automation solutions to help build the complicated supercomputers that are now NVIDIA's mainstay. I know people just think it's a chip company, but when they put them all together what they have is a super computer. Now these are very different from Super micro, which I put more in the Broadcom or VELTEC camp as important ancillaries to NVIDIA, okay, essentials and answers. But there's one thing that NVIDIA and Super micro have very much in common. They peaked in the exact same day. Do you know that? They peaked in March 8th. It's impossible to overstate that date's impact of TEC. NVIDIA at $974. Super micro have 1,299. NVIDIA is now at 795, Super micro at 717. That's pretty big to clients. If you google March 8th, you'll see the shares of more VELTEC we're selling off after coming up with a shortfall in the previous evening, where their weaker old TEC businesses couldn't be offset by the strength in the new optical plumbing it's needed for accelerated computing and general AI. And our VELTEC was dragged down by weakness, networking and storage, which are a real downturn. There's no signs of those bottoming, at least not yet. Now we just was confirmed by Taiwan semi just last week. When we had a Marvell CEO Matt Murphy on the show just last week, he didn't sugarcoat it. Although I gotta tell you, he was justifiably proud of the linkage to NVIDIA. That day's shortfall from Marvell along with Broadcom's failure to do what Super micro was supposed to do, simply rearrange forecasts instead of raising. Reviewed as the cause of a brutal day for all things TEC, including NVIDIA, but you know what, that's wrong too. Forget MarvellTEC. March 8th was the day when we got a stellar employment report. We created 275,000 jobs most we were expecting 200,000. In short, we learned that the economy is much hotter, much much hotter than expected. So the Fed had no reason to cut eight rates any time soon, which is why bonds retreated in price and the yields shut up. For me, that's why TEC peaked a month and a half ago. Think about it. It just makes so much sense. So let's just explain what happened with that week to put everything in context. Because that's when this market changed its stripes starting with TEC. First Labor Department's non-farm payroll report is the single most important piece of data we get from anywhere. That report came out the day that NVIDIA peaked. The stock was up 5% in early trading and then finished down more than 5%. That is one of the ugliest island reversals I have ever seen. That's a technician's nightmare of a gap up, crashed down that almost always hurts at least a few days, if not weeks, of declines. In NVIDIA's case, it's been more than six weeks and I don't see any end of it. I know it had a nice bounce there though. Given that super micro-stock is joining the hip with NVIDIA correctly and correctly, of course it peaked on the same day. But if you were to focus on TEC, you would have missed there. A host of Fed officials have been talking about how they'd be more ready to cut rates if the economy ever looked like it was going to get weaker. So wait, get this. We get a red hot job market with higher wages. You better believe that makes them much less ready to cut rates. You can bet that they were also dead wrong. That's what stings did wrong. I know that the price of Plato we get Friday's very important. So it's the super price index. And everybody talks about the old importance, the one that the Fed looks at. We get tired of that. You see, because everything stems from the labor report, because as long as unemployment stays below 4%, it is inconceivable to get rates. Where it's such a historically low unemployment rate, the Fed should never have committed to any rate cuts at all, let alone the 3 that they did. Or at least the dots said dots. Give me a break. Just as important as long as so many people have jobs, consumers spending will stay all dead, as we heard from marketing's best on Friday. People keep buying homes too, pushing up the cost of shelter. No one's hunkering down a few point eight percent unemployment. No one. When you surprise the Fed that badly, you get what I think is a double whammy. We need the Fed to be ready to fight inflation, to preserve the value of financial assets, given that inflation's still a good bit above their target. But they spent months talking about rate cuts, which makes them, actually I think, seem clueless. Worse from the bomb market's perspective, it makes the Fed seem weak, which is why we've had a bomb market route for weeks now, massed by the occasional flight to quality inspired by the instability of the release. So why did Super Micro get obliterated last Friday? It's the bomb market. People in the action of bonds makes us feel like dope for paying up for any high multiple stock, not just tech. We're seeing it systemically isn't biotech or high multiple drugs doesn't like Eli Lilly. Not because it's a drunk company, but because it's got a high price earnings multiple. That's it. Sure, it's most pronounced in tech, and not just the gender of AI stocks. You see it in all kinds of enterprise software too. Those are always overvalued. That's the most hallowed, high multiple area. And also the one that's the most dangerous when long-term industries fly up. In the end, the reason Super Micro went down had nothing to do with Super Micro. Everything to do with the fact that interest rates are unable to find their footing. That's what's so important about this week. If we can either get adjusted to the level where the 10 years yielding at 4.6 percent or if we're going out of 4.5 percent, believe me, Super Micro stock would have rallied the whole market. All the high moles went around. Here's the bottom line. Interest rates, not earnings, are what's in control right now. We bounced today because rates would come. That's what's happening. We want to believe that earnings can blow away the bottom market, but in reality, it's the other way around. We just forget that's the case. If your decades when rates only seem to go lower, even though we just went through the whole process last summer, it's all so hard to get used to the new normers, isn't it? We have money's back yet today. Coming up, investors hit pause on Netflix after earnings. Should home gamers believe the plot twist or is there more to the story? Kramer breaks it down. Next. Take your business further with the smart and flexible American Express business gold card. It's packed with benefits to help unlock more value from your business purchases. That's the powerful backing of American Express. Learn more at americanexpress.com/business gold card. All right, we got to talk about the market's surprisingly negative reaction to the Netflix quarter, where the stock tumbled 9% last Friday. To me, the quarter looked pretty darn good. Yet, the stock's in full blown correction mode here, down more than 13% from its 52 week high a couple of weeks ago. Netflix beloved, saying so how this happened? This is the most popular stock in the market to most people. First, let me set the stage by explaining what happened here, and then I'll walk you through both the good and the bad examples, the bull and the bear thesis, so to speak, because that's the best way to formulate your own opinion. Remember what I'm trying to do here. I'm trying to teach you into understanding how people think on Wall Street, so you can make up your mind yourself. In terms of what happened, Netflix reported a huge subscriber beating no one's disagreeing with that. They added 9.33 million paid users. Again, that's a surprise. Wall Street was looking for less than 6 million. Biggest first quarter subscriber edition since the COVID first hit in the first quarter of 2020, revenue. Revenue came in higher than expected up nearly 15% year over year, and an acceleration versus the previous quarter. Netflix's paid account sharing offering seems to be converting former password shares and paid users. Their advertising share keeps improving. And they keep putting out great content that resonates all over the world. House of pleasure. Best of all, Netflix has quickly become a cash machine. They earn $5.28 per share, up 83% year over year, when the analysts were only looking for $4.52. Free cash flow much harder than expected. That's the number that we really care about on the show. On top of that, management gave excellent guidance for the current quarter. So why the heck did the stocks sell off like crazy on Friday? So far from the fact that the tape was horrendous, especially for tech. There were a couple of real culprits here. First, even though the second quarter guidance looked great, the four-year revenue growth forecast might have seemed a bit lacking. The midpoint of implied revenue number was a tiny bit below what Wall Street was looking for. I think Wall Street would have been fine with it if Netflix reported on Wednesday. But the four-year forecast suggests that the period of accelerating revenue growth is coming to an end. And the market has become a lot less forgiving of tech stocks. At the same time, management refused to raise their full-year free cash flow forecast, which again suggests things will be worse than the second half because they just reported a huge free cash flow beat for the first quarter and said good things about the second quarter. So you're always trying to piece it together. If you have good and good, but the numbers are the same, that means that the second half is not going to be that good. I don't agree with that, but that's the way people think. Now, look, making these really, really bad. Netflix is now getting hit by currency fluctuations. Oh my god, it's like Procter and Gamble. For example, no, not this one because Procter pulled out of this, but for example, the collapse of the Argentine peso, down 75% versus the dollar, hit them particularly hard. Their 15% revenue growth would have been 18% of Argentina hadn't fallen apart, but it did. These foreign exchange worries limit how much Latinos can take up their estimates in response to a strong quarter. It is a real overhang. But I think the thing it really spooked, that really spooked shareholders, was the fact that starting next year is so important. I got to get this right. Netflix plans to stop providing quarterly numbers for membership or average revenue per member. That's what we used to live on. That was our oxygen. Management basically said that they're making so much money that membership growth is no longer the best indicator of Netflix's future growth. As president and co-CEO Greg Peters put in its conference call, and I'm quoting here, historical simple math that we all did, a number of members times the monthly price, is increasingly less accurate in capturing the state of the business, end quote. Netflix will keep reporting these numbers for the next three quarters, but starting with their first quarter in 2025, over. The person I think with management, I agree with them. I agree with them. Netflix has entered a new phase, true, where the earnings are, what really matters here, but I still think it was kind of a bone-headed move. Because when you start hiding the old key metrics and people who are gardeners hiding, it empowers the skeptics who think that they have something to hide. Even if they're not, I'm thinking about the overall totals in the new world. With that in mind, let me walk you through a pair of dueling analysts. One of them updated Netflix on Friday when they're downgraded. Same information. First, Laura Martin, sometimes she'll be a little in the center, and kind of like that, at Needham, upgraded the stock from hold to buy, citing the company's global scale. It's potential for price increases in ad revenue growth, and even the possibility of using gender of AI at this bolster is business. She thinks Netflix can use its bountiful free cash flow to buy back stock, which works for me, and she raised her full-year revenue in her investments for both 2024 and 2025. Now, I like some of Martin's arguments better than others. The gender of AI argument feels a little nebulous. She says that as a tech-first company, Netflix will be better at taking advantage of AI than other media companies. It seems reasonable, but I have no idea if it's true. The rest of it seems a lot more compelling than me. This is about price increases and ringing more money out of ad-supported business. At the end of the day, Netflix should be able to deliver much better energy cash flow. All right, how about the bearish case? This one from Maria Ripps at Candid Cordgenuity, who graduated from buy to hold and slashed her price target. All right, her view is centered on the idea that Netflix has pulled forward membership growth key trade. It's pulled forward with his password sharing crackdown, and she notes that reduced subscriber disclosures will add to the uncertainty. Told you, furthermore, Ripps believes that the advertising business will take some time to develop, and given how much the stock has run over the past year, she recommends looking elsewhere for upside. Basically, she says the stock's too expensive, and we don't have enough evidence that their modernization plans are working. Now, I am not as impressed with those arguments. First, has Netflix pulled forward membership growth? Look, I guess we'll see, but is it really a bad thing that the crackdown on password sharing has been effective? I mean, we're really supposed to be worried that the lower price to ad supported offering has proven to be popular and helped drive some of the best member growth since the pandemic. I say good. Ripps says the advertising business is still in its infancy, but I say good thing again. It means there's a lot more runway for growth here. As for the stock being too expensive. Hey, I mean, it's just kind of like a lot cheaper. Overall, I'm more inclined to cyber the bulls than with the bears on Netflix. Because last Thursday night, we had saw a company that's simply doing much better than expected at its core business of selling subscriptions and quickly building a strong supplemental business selling advertising. I bet the ad business keeps building and quarter after quarter and year after year, which is a good thing, not a reason to go bearish. Most importantly, I see a business that's becoming much more profitable than anyone could have imagined just a few years ago. I can remember when Netflix only traded on subscriber growth, and it was an open question if the company could ever turn a profit. A decade ago, many skeptics still argued that the business was destined for bankruptcy. Oh boy, my god, that's not the case. I'm happy to focus on the big profits and the big cash flows. So let me give you the bottom line. Netflix may have sold off hard because they'll stop providing quarterly subscriber numbers starting next year, which does feel ominous. Actually, I'm not worried because this company has pivoted from a pure growth story to a profitable growth story and going forward, profitability is what you should be watching. That's why I'm siding with the bulls here and sticking with Netflix, especially now that it's gotten substantially cheaper despite reporting an excellent quarter. And believe me, do not these people deserve the benefit of the doubt. Let's go to Greg in Illinois, Greg. Jimmy Chil in a electrifying puppy with hat to boo yah, man, are you Jim? Nelson Pelt, he knows nothing and Bob Iger is the man. Although Netflix is pushing media stocks down I'm seeing JPM and BOA price targets on business. 140 and 145. That's the last week. I want to take my kids to Disneyland and watch ESPN, Jim. Are you buying here? And can we get back to 124 where we were just a couple weeks ago? Well, you know, first of all, I command your enthusiasm, which is really terrific. And that matters. Okay. And that definitely matters. You're completely wrong. Okay. Understand, Disney just has been on one way trip to the to the danger zone since Nelson Pelt was no longer involved. This stock goes down pretty much every day. I managed to sell a lot when Nelson didn't get on because I felt that if Nelson got in that boardroom, we would have a shake up and some discipline. I've been proven right, but I will do I I'm going to get angry doing this. I love to go to Disneyland. I love to go to Disney World. But my kids don't want to go with me and I think it'd be really creepy if I went by myself. Right. I'm not worried about Netflix. This company has pivoted from a pure growth story, your profitable growth story, and properly is what you should be watching. Hey, I got so much mad money ahead. It's crazy. Gold is shine this year. So why is Barrick Gold stock lying? You what the heck is that about? I'm sitting down with the company CEO to get a better reel of commodity. Then comparing apples and EVs after the form of both Apple and Tesla, I'm going to tell you if they have more in common than you think. And of course, all your calls rabbit pie tonight's decision. The lightning ramp, so stay with Kramer. The last few months, the price of gold has just skyrocketed. The stocks of the gold miners, they really haven't kept up at all. Take Barrick Gold, the Canadian producer of Gold and Copper. That's one of the best shoppers in the industry. Yeah, well, gold prices are up 30% year-to-day. Barrick's stock is actually down 9%. Now, why not? It's because Wall Street's been very worried about higher production costs. But as I mentioned a few weeks ago, the stocks trading as though nobody believes these higher gold prices can stick. The precious metal got slammed today, but it's still in the 2300s for him to say. Meanwhile, Barrick's on track to boost production while getting his costs under control as the year goes on. So I don't know. I mean, I look over all the documents and start thinking this is a pretty good buying opportunity with the stock down 4%. We got Mark Risto on a real good day. Yes, Dr. Mark Risto, welcome back to Mid Money. Hey, Jim, how are you? Well, Mark, I have to tell you, you got to buy back, right? I think it's a heck of a lot cheaper to mine gold by buying back your stock than it is to mine gold by taking those big machines, getting gold out of the ground. And I can't figure it out, so I'm coming to you because I know you got the best properties and I know you know how to control cost better than anybody. Yeah, Jim, as you say, you know, 15% rise in the gold price last year, another 15% year today, this year, and we're trading it below what we were trading this time last year. It doesn't make sense. But there is a model here that, you know, if you've taken the ride on the physical, you need to rotate some of that back into the equities because you get the gearing and we yield a dividend. So it's a good story. It's all upside for us. And as you and I've discussed many times, we've done nothing to damage the per share value of our business. Oh, nothing at all. I'm thinking the other way, actually. I'm thinking that people refuse to give the miners any credit because they seek costs that go up. And instead, they just rather buy the bullion or the GLD. They don't see the upside to the actual miners. But haven't there been prolonged periods where the miners have just excelled as gold kind of just crept up? You know, Jim, if you go back to 2011, you'll remember the conversations we had then, where the gold price was growing up, the costs weren't inflating and lots of our peer group went and bought things. But, you know, we in Rangold at the time really invested in our future. We're in exactly the same boat today. Gold price has gone up. We're at the peak of our costs. We've all been through cost inflation. We're driving those costs down. We've got 10 years ahead of us of production. We'll work through the cycles. And right now, if you look at the gold price, we're sitting at a $400 margin to where we were just a few months ago. And that translates to over a thousand dollars on the margin of our production costs. Okay. Well, let's look at that. I mean, let's maybe I'm unfairly picking Carlin, but Carlin's big. It's very expensive to mine there. Would that be something that's going to drop? Are we at peak Carlin with $1,400? Yeah, you know, we put those two sets of assets together, the new month and the Barric assets. There was a lot to work to do. A lot of investment in stripping in development, in getting those businesses back where we have a rolling 10-year pad plan. So, you know, looking forward now, we see those costs slowly coming down as we deal with the slower input costs or the lower input costs, as well as better efficiencies. And we've always said this year was our low point in Nevada. And from how we grow the production out over the next five years. Okay. So, someone looking at your prices, like where your DRC or Ivory Coast or 10, well, Tanzania, I mean, these things cost very little. Chile costs very little. Why spend so much money in the United States? This is the world's biggest gold endowment. And, you know, in Nevada, if you look at Gold Rush, we've just commissioned the first real gold mine that was permitted in the last 20 years in America. And what we've brought back to Nevada is the fact that we can mine. And when you find things in the Colin trend, they come in large boxes. And so, you know, we are investing heavily. We are, in fact, on Thursday, we're cutting the ribbon on the new Gold Rush mine. We are developing the former mine. These are big gold mines. And I've got no doubt that we'll find more, Jim. Now, how about environmental regulations, costs in the United States? Everything costs more here than it does everywhere else. You know, if you work like we do the rest of the world and build your license to operate, you can manage these things as we've proved. And we've got the governor, we've got the Republicans and the Democrats that are opening on Thursday. That's great. Well, that's about the only thing we know. Well, look, I want to tell you something. And this is why I thought of you. I'm so glad you're on. Costco has gold, okay? I don't know if you're a member of Costco. But every morning we go in, we try to buy it. They run out of it constantly. There is no doubt in my mind that gold is on people's minds just as much as Bitcoin. It's just different people. And I have never seen you. If you ask Costco, they say they've never had a product that they cannot stock for. So nobody has left the idea that gold has a greater store value than the U.S. dollar, have they? No, and I think that's, you know, what we're seeing here is that the gold process is the only currency that reflects the decline in the U.S. dollar, because its peer group is beating it on the downside. I'm glad you said that. Look, you know, I'm a big believer in gold. I'd love it to be the stocks. I can't own stocks. I am a U.S. dollar. I default to the bullion. But I'm glad to hear that we really are on the cost. Now, when can we come out to see this thing in action? Well, I think this quarter, you know, with the gold price, where it is at the moment, you've got another whack of margin. And on top of that, Jim, we have big expansion projects, organic expansion. We didn't buy them. We found them in Barrick. And so we are pointing to 30% increase in our gold equivalent production out to the end of the decade. And that's before we bold our minds that we're still going to fire. Oh, my. All right. Well, look, you know, I stay a believer. I think that people don't like the stocks. Sometimes they love the stocks, no, like the bullion. Then sometimes it's this way. But I am so thrilled that you're coming on and it's going to be so big in Nevada, I thought I'd have to go up to Donlin. Sorry, that I'm going to leave you with that with your mosquito spray. But it's great to see you, Mark. That's Mark Frister, President CEO of Barrico, G-O-L-D. The gold miners are going to come back. Man, money's back at the break. Coming up, hit us with your best shot. And the electrified, fast-fire lightning round is next. It is time for something light round, too much. We're going to hit in this stock, so above my life, something like that, putting me in a blazer. And then the lightning round is over. Are you ready, skate, that light round, so let me start with Brendan in the jersey, Brendan. Hey, Jim. So I just heard about this company. I have no idea what it does. And I think I should go all-in, upstart. What does it do? And should I go all-in? Well, I say, that's a good way to start. I mean, a little bit more homework, maybe than just that. Okay, this is a bank holding company, it's artificial intelligence. And I've got to tell you, I don't like it. There are so many good banks. Why not buy JP Morgan at discount? I think that when you look at upstart versus JP Morgan, I have to tell you, my stunning conclusion, given the fact that you don't know all that much about it, is that JP Morgan's a better bank than upstart. Who knows? Let's go to Harry in New York. Harry. Mr. Kramer of proud alumnus of the US Naval Academy class of '88. Wow. Thank you for serving, and I wish that I'd buy it. You know, I wish we'd go down there for Veteran's Day. How can I help? I would love to know your thoughts on a California-based pharmaceutical company. It developed medication for chronic viral infections, and they have a product neffy, N-E-F-F-Y, seeking FDA approval, top mid-January with just over $6 by the end of March. It was 10.22, and now it's been tumbling down to 8.21. Well, let's say, I've got to tell you, these stocks that do, people are not going to like this, but anything doesn't, you know, I've got to tell you, I am 4 square behind, and I know that this is a speculative stock, but this is what we need more pharma companies to do, so I salute you, and I salute that company. Now we're going to Charles in Illinois, Charles. Good afternoon, Jim. I value your opinion, so thank you, Charles. Tell me if I should buy more, hold what I have, or sell my shares, and F-G-H, Mark Global Holding. You know, this company missed its quarter by an element that was so big that I cannot count on this recommendation. I can only count on this selling it. Yeah, I'm not kidding. I think it's that bad. Let's go to Donnie in Illinois, Don. Hello, Jim. Within the last week or two, you spoke in role of Enbridge, and as an 80-year-old, I've been looking at it, and everything seemed good, but there was some analyst who expressed their concern, and that's the concern they used about its ability to maintain its dividend and service is there. See, I just don't see that. I mean, I've gone over the cash flows multiple times. We've spoken the company multiple times. I think it does have the cash flows. Now, that is just, you could say, Jim, Enbridge has bagged you before, but it has it. And I think Greg Hebel's a good operator. I'm not going against Enbridge. I'm just not. Let's go to David in New York, David. Good day, David. You're up. David? Wow, David seems to have... David, there you are. How you doing? I'm doing fine, Jim. Thank you. Really enjoying your show. Thank you. A talent-related valuations, should one be heading to the electronics position? You know, I am shocked at Medtronics all the way back down to 80 again. We had Jeff Marfo on the show. I think he tells a great story. By the way, a lot of companies that are doing that colonoscopy do have an AI. I know he said he's got an AI, and the only one. I do have now done enough work to know that the others do too, but that doesn't make Medtronic less attractive. It has many different wheels, lots of good devices that work, and devices have been down for a couple days, but I think they'll start going up again. And that, ladies and gentlemen, put it on the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, what's to be done with Tesla and Apple? Two stocks under siege. Two companies with much different outlooks. Stick with Kramer. [Music] Are Tesla and Apple two P's in a pod? Yeah, there's stocks flying at the bottom if you're spending months in the P pod of pain. The house of pain. We don't have to wait long for Tesla to do it, which pours tomorrow. Socks down in a standing 43% year date, second worst DSP. We have to wait a week for Apple. It doesn't give us the numbers until May 2nd. But I think there's a great difference between these two, actually. Tesla shares our own largely by individuals, along with a few vocal fund managers. Those individuals know only one thing. When the stock was much higher, they thought that Tesla was in upstalk. Now that it's in downstalk, they're selling it. I know that sounds real silly, but there are a lot of homegrown traders who make silly decisions a habit. It's a habit that we're trying to break at the CMEC Investing Club. They're horrendous fellow shareholders when the stock's in decline because they don't want to know what's really going on. They're not interested in cyber-truck deliveries, or self-driving cars, or even cheaper models. They're only interested in getting out before we learn the truth. If the truth is that Tesla's still making money and Elon Musk pulls a rabbit out of the hat, we'll come right back. If he has nothing but self-driving cars, plans, robo's, taxis, I mean, I just say he hurts when to do that, and that fails, so Musk will too. On the other hand, Apple's mostly owned by big institutional money measures. Those institutions don't look at stocks as an up or down entity. In fact, in the case of Apple, they look at iPhone sales, not Macs, not iPads, not watches, not AirPods, certainly not Vision Pro's, not even service revenues. If you just look at iPhone sales, we'll most likely get a disappointment and a statement about for the weakest. They'll be talking about developers' conference in June in the launch of a new phone in September, but who knows if that can take off without an AI tie into some sort? Still, I think the big institutions are looking to buy Apple if the estimate cuts, because they're looking forward to those two events, but I expect their interest will remain tepid, unless the company can announce that their growth is in the rest of the world, is accelerating faster than their business in China Shrinking. I'm thinking about Brazil and Indonesia, India. If they present that and give an analysis of how sticky the revenue stream is, you know, for service, then I think the stock can buy them somewhere slightly below here. Why is Apple OK if at this point, it's about Tesla's very much not? I think it's Wall Street so long a presuming Tesla have a miss is presuming to have a loss. If it doesn't lose money in the messianic buyers, they're talking about Kathy Wood or Ron Baron will step in and call an amazing buy opportunity on our network most likely. They can draw a line in the sand and make it work, but not up here because Tesla's feeling mighty like a car company with the wrong product line, electric vehicles. When everyone who wants one seems to have one already and there's no new product refresh, car companies get very, very low price journeys, multiples. Apple on the other hand does have a refresh and we do know that refreshes are reasons to buy, not sell. There's no pulling a rabbit out of a hydro. There's just an incrementally better product that gives institutions a reason to buy this high quality company with a stock that now sells at a lower multiple than we've gotten used to. It's a slim read, I know, but Apple does make a lot of money. It just doesn't grow as fast as we'd like. Some people say there's no growth at all. If you think there's no iPhone refresh ahead, the stock would absolutely be a sell at below market multiples when declining earnings. Now, I could easily see it trading down to 120. That's scenario. But fortunately, that's not the scenario we live in. And here's the real difference between Apple and Tesla. The institutions who own Apple would never let the stock full that low. They'd find some way to justify paying more than that price, but those institutions don't care about Tesla at all. And there isn't enough retail money to switch to the client. Worst case scenario, Apple, you can buy Apple 160 and then scale in. I would do it every five points, getting bigger as you approach the 130s, where I think the longs will make a stand based on next year's earnings estimates. It's not pretty. But you know what? It's always good to know the parameters of a stock. The stock that you advocate owning and not trading. Like I said, it's always more like something where I pop up. I'm just for you right here, man. Bunny, I'm Jim Kramer. See you tomorrow. 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 Bunny disclaimer, please visit cnbc.com/madmoneydisclaimer. At Capella University, you'll get support from people who care about your success. 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