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 4/29/24
electricity a big idea that's inspired countless new ones from powering the light bulb to virtually powering our entire lives 30 years ago State Street launched the spider 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 ssha.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks only TS are subject to risk including possible loss of principle else distributors and distributors you seek the key but first you must learn the ways of precision craft and performance with Acura's all-electric zdx with a premium bang and all-of-son sound system up to a 313 mile range and a type S variant with an estimated 500 horsepower the zdx is their most powerful SUV yet unlock the energy when you visit accurate.com to order yours today. 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 America I'll be my friends I'm just trying to make a little money my job is not just entertain but to educate and teach you so call me at 1-800-743-CVC or tweak me at Jim Kramer Apple and Tesla led the market today down gaining a hundred forty six points that should be advancing point three two percent now it's that climbing point three five percent the average is frankly they were almost a side show to these two stocks and each had a very different story to tell both incredibly instructive about what can make a stock go higher in this dynamic market now you wouldn't expect the overall market to be this benign coming to the biggest earnings week of the year where the worse and fed me worse labor report at the end of the week but the subjective these two stocks both incredibly weak for the year has nothing to do with the fairly important point anyway so how did Apple stock rally 2.5% Tesla stock war 15% right I've been saying the Tesla stock we keep going down on loss and until Elon Musk pulled a rabbit out of a hat he wasn't able to find that rabbit in time for the quarter but he bagged a terrific one this weekend when he got permission to sell a subscription based river of full self driving for the Tesla and China which gives him a whole new revenue stream a big one that can go a long way to restore price momentum if you're vicious price cutting in China just as important as how must got it he made a surprise trip to China that would premiere Lee and nailed down a deal with Biden the Google of China that allows us to have the best maps available this is unbelievable and it's also a perfect example of the CEO redefining their there've been a feeling it must have gotten so I don't know they had so much going on that you haven't been paying attention to Tesla now here he is doing something no American CEO can do just get on a plane and make a deal with a leader of a country that our government is particularly fond of I can't think of anything similar in the annals of American business that maybe went arm and hammer went to the Soviet Union during the Russian Civil War and became Lenin's chosen capitalist at the time the US troops in Russia fighting against the communists and this guy still made a fortune to go shave with Lenin of course I don't put Xi Jinping in the same category as Lenin but he's so much more for at least a little more friendly ha but hammers the only other executive I can remember who could make a surprise trip to a hostile country and come back with an extremely lucrative deal that said it's not a magical elixir for Tesla's not full self-driving competition main stiff but let's face it no one else can pull this off which is why shareholders love the guy and business talked up so much making fools of last week's downgraders it's almost as if it must get leverage over the regime he maybe does maybe the justice dazzled by him as everyone else either way it's out of made people a lot of money will Tesla move the move have staying power look plenty of people shorted the stock betting that they can finally break the darn thing they fail the stock can keep running until the shorts are all crushed all right different story Apple now I'm not a fan of what went into today's rally see today Tony second at you from Bernstein famous animals won't he be a lot upgraded Apple to a buy with a piece called buy the fear upgrading to outperform Apple's D-rated specifically says amid a weak iPhone cycle and fears that Apple's China business is structurally impaired second only believes that the expectations have got finally gotten so low that it can work stocks are performing the recipe by 19% year to date on top of that he points out quote Apple is entering a seasonally strong trading period the stock is outperforming three months leading into the iPhone launch in 15 of the 17 of the last 17 years by an average of 1,280 basis points and quote that is huge and he doesn't believe the China problems existential he's his normal sink locality now second at you believes that because the stocks less expensive than it's been it's now worth buying you know what he's doing he's urging investors to be like buffet whose well attended annual meetings come up Saturday as Tony says quote despite his reputation long-term by an old investor Warren Buffett has been remarkably disciplined about adding to his Apple position when it is relatively cheap and trimming it when it's relatively expensive end quote even as this quarter would likely won't be good and the guidance will be weak Tony believes Apple can sustain word of 5% revenue growth and that could translate to 8 to 10% earnings growth everyone who watches this show knows one thing I believe in owning not trading Apple it's been my view for at least 20 years now but Tony's an Apple skeptic get this in February of 2018 he downgraded the stock because he thought Apple's growth would slow dramatically thanks to weak iPhone sales he also cut his price target from 195 to 170 now I know you might think that's not that bad given that Apple's now $172 but oh contrary there's just one problem since Tony's 2018 downgrade the stocks had a four-for-one split if you adjust the split Tony downgraded Apple of $40.03 and retrospect that was not above it like cool now anyone can spoof any analysts bringing up this stuff you can spoof me to and people do over time if you over every pick no one in this industry is right all the time nobody even comes close including Tony Tony second name is a very smart guy so I'm not trying to put him down the bigger issue is that I think of him as the leader of the Apple's best days are behind it contingent the one that has always the most critical questions negative questions one is arguing we've done the most work frankly to keep you out of the stock but it's really in a de facto sort of way I think he's playing this thing just playing the whole negatively brilliant never really a attacking thing never really attacking Tim always that's Tim Kubasio always damn it was what I call faint praise never blasting Apple yet being incredibly effective at making you dislike the company shares even worse Tony's a generally great analyst his work on earnings is among the best he knows numbers like no other he may be the best there is in that department the goat of estimates if we were talking about any other stock to you know I got to take them pretty seriously but when it comes to picking Apple's stock price and where it's going his direction work is suboptimal and for shareholders the direction of the stock is more important than the sales earnings whereas I might have said in a moment we're fiery moment of the old days quote the direction is all that matters and he's gotten that rolling down waste the Sunday and now here's what I am most worried about it snaps would be a little superstitious here if this guy downgraded Apple it from 40 at 40 hours and he missed the move from 40 to 175 I actually don't care what his numbers are I don't care about his iPhone estimates or service revenue projections I just know that if this guy when he finally climbs on the bandwagon it's now well it feels a bit suspect if someone who got the price wrong for six years is now all over it it makes me worried that there is a last some sort of jinx unlike Tony I want your own Apple not traded even as I suspect this quarter will be the next quarter will be worse but I am with him that you should buy the stock I just think you need to wait wait it out because now you got a second eighty spike on top of what could be a bad quarter that's not what I want is someone who wants to talk for the travel trust I wish he waited here's the bottom line today Tesla rally some genuinely transformational news what you buy the incredible leadership of you on boss but Apple rally don't upgrade from an analyst who historically does not have a great understanding of this particular stock that's a much less inspiring kind of rally with no staying power to speak of carry in New Mexico carry agent who you are carrying after second time call it I thank you for all you do thank you I'm just want to know what your take is on Morgan Stanley is an investment we all more you stay for the trust I wish it had been up more Goldman Sachs is doing my an island model is doing better Morgan Stanley I like the last quarter but the stock seems to stalled out again it's very very inexpensive so I'm not going to trade it I just wish I had bought Goldman Jeremy in California Germany Jimmy shill first got a long time booyah granted have you on a show what's going on the guys in the mad money group chat and I which is just a text thread that you've inspired us to talk all things stocks on we're increasingly leaning towards Google reviews over Yelp and giving Google dominance in search do you think Yelp has a realistic chance at competing with Google in the long run you know it can it has a niche and I've got to tell you it's been around forever I'm surprised someone hasn't picked it off I guess they like to be independent but it's down 13% and I don't think it's you know look it's hard for me to say no don't own it because the next thing you know stop you know stop them might just say I'm gonna sell the thing and then it makes me look bad so I'm just gonna say I don't really like it how's that let's go to Keith in my home state of Pennsylvania Keith hey mr. Kramer how you doing I'm doing well how but you oh I'm doing wonderful hey I got a say thank you to you and your team you guys and your advice have helped us pay off the mortgage on our house and we love you guys for it because we listen to your advice when we really take it to heart so I have a stock I'd like to talk to you about sure thank you I'm putting on it sure well how can I help so I have a question on Shopify I just it's been really lagging since March and I just want to know going into earnings if now is a good time to get in since it's really low or what your opinion is on I know it's down 7% for the year I would buy a little before and little after me you have to may ave make the move but I think Shopify is doing incredibly well it's just it's had a big run I think it continues it can continue and I like the company very much all right today brought us two very different kinds of rallies Tesla's are genuinely transformational news and Apple are up there from an analyst who has not nailed the stock before that's the way I put that on that kind of rallies unfortunate a lot they're very not inspiring what my money tonight as I said last week there is rolling one we're starting to see some brown shoots in this economy that you can't ignore so where should you go to get a water read on where we stand look though further than the railroads I'm seeing what the big poor tell us about the strength of our economy and the country's whole then in a market like this I'm always trying to find some under the radar stories that could be a winner for portfolio tonight I am in Valley and industrial conglomerate that's been quietly creepy higher than I really like and rest of my stock was nearly beaten down by the says of GOP - once so in the drugs and tailwind or a headwind to the company I'm getting the latest from the CEO so stay with Kramer don't miss a second of mad money follow at Jim Kramer on X have a question tweet Kramer hashtag mad mentions 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 net suite by Oracle net suite is the number one cloud financial system bringing accounting financial management inventory and HR into one platform and one source of truth with net suite you reduce IT costs because net suite lives in the cloud with no hardware required access 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 net suite and then you can think of all the ways you could be spending the money you save company retreated malleable anyone by popular demand net suite is offering a one-of-a-kind flexible financing program for a few more weeks head to netsuite.com to start saving when you're hiring the best way to search for a candidate isn't to search at all don't search match with indeed indeed is your matching and hiring platform with over 350 million global monthly visitors according to indeed data and a matching engine that helps you find quality candidates fast use indeed for scheduling screening and messaging to connect with candidates faster plus 93 percent of employers agree indeed delivers the highest quality matches compared to other job sites according to a recent indeed survey leveraging over 140 million qualifications and preferences every day indeed's matching engine is constantly learning from your preferences join more than three and a half million businesses worldwide that use indeed listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at indeed.com/madmoney just go to indeed.com/madmoney right now and support this show by saying you heard about indeed on this podcast indeed.com/madmoney terms and conditions apply need to hire you need indeed now the busiest week of earning season is a pot us we're seeing brown shoot size of economic weakness all over the place so in this kind of environment what do we do with the railroad all aboard we know the truckers are struggling here but could the rails be different because this is an important group for the broader economy I want to take them one at a time with Norfolk Southern, Union Pacific, Kansas City remember that's a combination can pack in Kansas City U and CSX now we're starting Norfolk Southern that's the most controversial the east coast railroad because at the end of January I told you the company is performing some octagon but the stock might be ready to bottom because it barely got hit on a disappointing quarter. I also said it might be a good place for an activist to target sure enough later that same night the most mature reporter that Angkora Holies had taken a stake in Norfolk Southern and planned to watch a proxy fight to put its own slate of directors on the board the activist at Angkora wanted the company to embrace precision scheduled railroading something every major player in the industry is already adopted because it offers a massive efficiency boost as we saw from Union Pacific this week Norfolk Southern's management does want to go there though they say it'll hurt the liability my view look Norfolk Southern pre-announced to the downside over this month and then last Wednesday the reporter recorded it still managed to fall short of those for the lowered expectations when you look under the hood the numbers are not good total revenues down 4% it 10% decline in coal 8% decline in your modal costs were elevated although the managers had to expect margin improvement the second half the year I like CEO Alan Shaw who was on earlier this evening but I think both sides have compelling arguments in this fight do you know what just this morning the influential proxy advisory firm Glass Lewis sided mostly with the dissidents recommending Angkora slate of board nominees the vote comes next week I prefer precision railroading which to me did for cuts against Norfolk Southern but look they have the reasons and I definitively am not a railroad man however I am someone who knows what drives up earnings and stocks next up back in January I told you that West Coast Focus Union Pacific was my favorite player in this group and hey they reported arguably the best quarter of any railroad last Thursday morning which said this talkable was 5% in a single session say I've got this new CEO Jim Vennies could be doing a good job he's a precision railroad guy going cargo by cargo mixed back industrial freight revenues up 4% bulk freight down 4% automotive up 4% intermodal down 6% however Union Pacific did a much better job of holding down costs than anyone expected which allowed them to deliver a sizable earnings beat while the company gives quality of guidance on said numbers they said the profitability outlook is gaining momentum I'll give this even as are some areas of soft as a intermodal and this collagant magazine also promised to resume its buy back in the current quarter that's sweet look I think it was a good solid result for Union Pacific although this talk pop last Thursday it's still down slightly here today with it just it trades it just over 21 times earnings I think it could expand it's my favorite the group still all right how about my second favorite back in January I said it was Canadian Pacific Kansas City formed from the old merge of both can pack and Kansas City Southern now they've now got a great business bringing cargo's north from Mexico autos in particular unfortunately these guys reported last Wednesday the market didn't like it stock tumbled more than 6% I thought the numbers were decent not that great not that bad carlands were down 3% year over year on my basis but prices increased 5% worth making up for it strong performance for us grain parts of set by Canadian grain crop interestingly Canadian Pacific had some of the best intermodal numbers out there they were weak for a bunch of others driven by cargo's coming through the ports of Vancouver and Lazaro Cardenas which is the largest port in Mexico again that's why I like this one so much meanwhile on the cross front Canadian Pacific's numbers were basically in the line they've made some huge progress in Mexico remember that's my big focus car miles per day we're up 23% active cars online decreased by 15% but it's precision railroading most important Canadian Pacific creator is a four-year outlook for double degeneration growth while the market didn't like this one I think can pack was a victim of high expectations it shares what 11% for the year going to the quarter bank hit the best performer the groups up by far in fact even after last week selling the sell off stock still sells the best performing railroad in 2024 I think Canadian Pacific's pullback to a viable pullback I really like it here finally there's one that is just oh got I'm on the fence but it's CSX I know it's the worst performing major railroad this year but it's only down two percent while CXX is a better operator than the other big East Coast railroad Norfolk Southern that may be not saying that much and I like Norfolk Southern there's no activist campaign to turn things around now when CSX reported back on April 17th the numbers were indeed uninspiring they had a three percent five increase also have by four percent decline in revenue per unit which is the opposite the rest of the industry chemical model of revenue is that roughly high single digits very strong coal was flat trucking and others were down while the earnings per share came in better than expected the CSX reiterated for your forecast the stock I think anyway because the first quarter results were still not so hot overall I think CSX is fine but I can't give you a reason to own this one right now even Norfolk Southern a worse company has a better stock thanks to the activist campaign finally let's not forget about private one or at least one that's wholly on subsidiary of Berkshire halfway and that's Burlington Northern now we don't have the numbers yet after the first quarter as Berkshire doesn't report until this upcoming weekend but we do have the full year results for 2023 they were not good you know they were actually not good at all volume the clients across the board eight percent of time for consumer products the most important cargo costs are going in the one direction too I can't believe Warren Buffett will tolerate that kind of performance we'll find out on our own Becky Quick travels at Omaha at the end of the week boots on the ground Friday and then of course for Saturday's meeting that's this is the company I'm actually most interested in hearing Buffett talk about he didn't talk about it much at all last year I'm honestly not sure what to make of both in Northern I think maybe the losing market share to you in Pacific Canadian Pacific so putting it all together things have gotten certainly gotten incrementally worse for the railroad since the last time we checked in on them three months ago that's the brown chutes talking still it doesn't mean the stocks can't work Norfolk Southern's reward because an activist firm by finally forced them to adopt this precision railroad and they're like so much that would make it a great self-help story if the activists win next week's boxing contest but apart from the one-off situation the bottom line is my views on this group haven't changed yet we've seen the quarters I like Union Pacific the best followed by Canadian Pacific Kansas City with CSX in third ironically the making the economy gets more like it is that the federal cut rates and then the railroads get that boots that we all want them to have their bunnies back at the break coming up a deep dive into an industrial on the move all you need to know about this stock to watch next take your business further with a smart and flexible American Express business gold card it offers flexible spending capacity that adapts to your business you can also earn up to $395 in annual statement credits on eligible purchases at select business merchants that's the powerful backing of American Express terms apply learn more at american express.com/business gold card last week the stock of Dover came out of nowhere poor spectacular quarter here now this is a company I used to follow really closely back in the day I thought I thought it was a sleepy industrial conglomerate textbook metal bender hey especially in elevators but in recent years doberts reinvent itself the way I love a company to do embracing clean energy and engineer products for the data center aerospace even biopharma it's a smokestack stock to turn to something a lot more modern and people got to finally start realizing this because that's one of the reasons why the stocks now relied 41% from its lows last october and I don't think it's done after struggling by leap for most of 2022 and 2023 dovers come rolling back it's reminding me of the Dover bold actually dividend aristocrat with the stock that's quietly consistently outperformed ESP 500 so how did Dover get its groove back well first after a string of seemingly disappointing quirks company poor a solid set of results back at the beginning of February while Dover missed expectations for organic revenue growth by more than 3% points they managed to deliver meaningful earny speed however management's full year forecast seen pretty lackluster revenue growth worse than expected their earnings guys worse than expected you think that this was truly dispiriting but because Dover was coming off a string of not so awkward while still these numbers in stride you know what they did investors focused on the fact that dovers orders there's an interesting metric right orders had turned positive for the first time since the fourth quarter of 2021 that alone was enough for people to overlook the mixed results in the conservative full year forecast when the orders start turning around generally everything else follows that's which one which brings me to last Thursday when Dover reported his first quarter and this time there was nothing mixed about the results first dovers order growth the hero of the previous quarter actually accelerated again or do look there's about 8.5% that's tech that's how good that is doesn't they tech while organic revenue growth remained negative okay it was only down 1.3 percent much better than the down 3.6 percent decline of Wall Street was looking for and total revenue was up 1 percent okay first positive revenue growth in ages that's how you look at it well top of that Dover puts in 8 cent earnings beat off the dollar 87 basis even though management only reiterated their full year forecast they did suddenly raise the low end of their earnings outlook by five cents which is better than nothing long story short the numbers are finally headed in the right direction people want to own this stock is Dover CEO Richard Tobin put it under the quote here we are particularly pleased with the success of our organic growth platforms as well as the order trends in the quarter which validate the aggressive working capital posture we adopted in 2023 end quote he went on to say order momentum in the quarter was strong and broad base particularly in our shorter cycle in markets building up the prior year exit rate and bolstering confidence in our full year outlook end quote he then called out a string of some really strong growth in several key markets improving performance in Dover's biopharma components which kind of felt like when when I told you Dan her turn it kind of or team all right you know there's thermo fish thermo fisher it felt like that it felt like Timo so what's really happened here but of course what really matters is how it happened how do they start putting up such strong numbers i love this kind of growth in large part i think it's because Dover has transformed itself after ignoring this one for a few years the company now has built up some great exposure the biggest themes of our era when management called out the product categories where they're seeing the most momentum it's a list of so many of the themes i constantly try to get in front of you Dover's got strength in us carbon dioxide systems you know we're due co2 where they had a big boost in the regulators we're driving a major transition toward natural refrigerants they have great momentum and heat exchangers sound boring wait a second incredibly popular in data centers which can't operate in peak performance unless they get rid of some of that excess heat from all this service they're doing terrific in thermal connectors again that's data center and then bioforma which is a we've seen from the other life science companies make it tremendous come back the best part these are all high margin areas not the low margin of old when you look at Dover's five big reporting segments four of them beat sales expectations only climate stability technology came up short how long is that going to stay bad engineer products they're the largest segment had 9.2 percent organic growth that was far above what Wall Street was looking for one of the classical magnets had the strong volumes and waste handling and aerospace and defense throughout that result also caught up bookings growth in the vehicle services business now they say no pumps and process solutions hey did you see pumps for carrier carriers up again today listen to these guys it's over they have 4.5 percent organic growth in this area also state to be better than expected when you want to get in down here there Dover explained the strength was driven by quote robust volumes and precision components and polymer processing end quote hey this pumps and process solutions vision is also also the one that's benefiting from turn in the life sciences industry just like we saw went down her report now it's probably when Dover's at its best it's pretty active about managing its portfolio basically divesting non-court businesses with less attractive growth prospects while doing bolt-on acquisitions to expand in more attractive areas while Dover never really abandoned those efforts they certainly got de-emphasized over the course of 2022 and 2023 when the company struggled with busted sales supply chain spotty and markets you couldn't really see how good it was doing but Dover's finally back in the swing of portfolio management the company recently sold off de-staco that's one of their engineer products businesses that sells industrial automation components the sale price represented an enterprise value of 680 million then Dover turned around made two bolt-on acquisitions for its clean energy and fueling division what did i tell you broad themes by the way and what can only be viewed as a big sign of confidence Dover also announced a launch and launched a 500 million dollar accelerated buyback that's significant when a company with a market capization of just under 25 billion and it's contributed to that earnings beat the largest bottom line beat for Dover on a percentage basis is the fourth quarter of 2021 in the end it is tough to say that Dover ever really went away but our look the stock did fall off a radar screen a bit at least as the company muddled through a complicated operating environment 2022 and 2023 oh i know i wish i'd circled back soon right which so many stocks i got them earlier can't get everything right but as the stock started recovering in October months before we got any signs that the court business would turn around i just didn't spot it that said you know what for all the disturbance rank i don't think you're too late this Dover compact story's got legs we've had a couple quarters of positive water growth organic revenue growth remains negative that can change i bet Dover can absolutely continue to put up strong numbers going forward which is why i like this stock because currently trading it's just 120 times earnings that's the midpoint of four year earnings forecast so listen to me bottom line after a fresh look at Dover i am thrilled to see that it's no longer an old fashion smokestack stock it's reinvented itself the new Dover has tons of exposure to clean energy rapid growth of the data center even the website's business trio of great things to be levered to these are areas that can all keep doing fine even in the face of a slower economy and that's why i bet this stock can continue to rally right themes will travel let's take i'm kind it's going higher let's take calls let's go to Dan in Ohio Dan good evening Jim how are you? Dan I am flying well how about you partner and if I was any better there'd be two of me i like that i'm happy i might have to adopt that go ahead okay great sure in Williams considering selling it what do you thought i didn't like the last quarter i do feel that the the readthrough from from Lowe's and from Home Depot is not so good i agree with you i think i would hit the exit button and you've got a good game most likely and i take it let's go to Larry in Idaho Larry hey Dan they do it i'm doing well be alert um i have a question for you regarding archer abation i purchased 160 shares at 352 on June 9th 2023 and that's when you advise to buy it well i don't like archer abation it loses money and i don't like the electric i do not like the vertical takeoff market uh unless it's for defense purposes so i would exit that one let's go to Ed in Illinois Ed oh yeah Jimmy chill love member and your number one disciple holy cow i'm proud to have you and i thank you for those kind words how can i help we need your help they're on their has traded sideways since 2021 can it be an infrastructure or ai play Jim is John here picker dee a good long-term investment now okay deer does have some ai we know that ai co i think actually is equal i happen to like deer the company very very much i will say this though if you want to be levered to infrastructure it's not a good play it's far more levered to ai which is slowing down but no one ever made a mistake buying deer even in the heart of the actual great crash of 1987 it was the stock to buy believe it or not right the newto over has tons of of what can really keep doing well in the face of a slow economy and that's what we're looking for i think dov can continue to rally right themes right market right stock now we have so much mamma made money including my Susan with rest med stocks rebounding from slow this could be more room to run or should investors make questions because of this gop-dash one thesis that has kept it down i've got the ceo is real smart then last week we witnessed the quarter of the a year when this big tech player responded reported you know i'm gonna reveal the company and why it's actually good not not too late to get involved in order calls rapid parts and i system but why do you around to stay with creamer there's a net against this incredible set of results from rest med the medical device come that makes equipment for the treatment of sleep disorder breathing i want you to think sleep apnea this stock had gotten obliterated from last august through last october's wall street of course worried that the rise of the gop-1 weight loss drugs would translate into less obesity which a major cause to sleep apnea turns out that wasn't tremendous buying opportunity when rest med reported last week they delivered a 20 cent earnings beat off a dollar ninety-three basis strong revenue growth and magic actually laying out the case for how gop-1 weight loss drugs might be good for their business in response to stock shut up nearly 90 percent it was like you had a takeover bid here so can you keep running let's think of a big foul he's the chairman ceo of rest med to get better we're recording jim great to be back on the show with you uh just been 90 days but what a 90 days huh oh i tell you mikki this is really some quarter maybe you can walk people through how you're able to put this together and then we'll deal with the gop-1 issue yeah look what the team has done you know there's ten thousand res medians selling in a hundred and forty countries what they've done is what we've done as a company it's our 35th birthday this year we've done it for 35 years 25 years public on new york stock exchange so a hundred quarters what we do is we drive growth we help people sleep better breathe better and live better lives and there's more than a billion people worldwide suffocating with sleep apnea over half a billion with COPD and half a billion with insomnia that's two billion people wanting four people on the planet so our job is to help those people find a path to screening diagnosis better sleep better breathing and better care delivered in the home and we executed these last 90 days more patients came into the funnel we took care of them we took some costs out frankly focused a little bit more on operational excellence we worked through some inventory that was high cost we focused on appropriate sgna growth and appropriate r and d investments and we delivered 23 operating income in the quarter and 27 net income in the quarter on seven percent top line growth to just north of 4.5 billion over the travel that's incredibly impressive and i imagine you because i've helped you've helped me on some health issues that you have uh inc let's say encountered a level of lack of awareness even among practitioners and how many days in med school do they teach this incredibly important topic of sleep yeah it's it's a really good question because i took about all the financial numbers you know we helped 170 four million people the last 12 months to sleep better breathe better but out of out of 2.5 billion that's a lot there is not enough education and look we've sponsored some chairs at at Harvard uh and and other institutions around around the world standard we work with UC San Diego here and we sponsor professorships in sleep medicine but in general primary care physician and GP medicine general training there's probably less than two to three days certainly less than a week spent on the field of sleeping and breathing together i give guest lectures sometimes at Stanford and other places and students come they want to hear about sleeping because it's a third of our lives they want to hear about breathing because without it you die in in minutes but it is a fundamental element for human health and it is under recognized and ResMed's job partnering with some of these mega trends in big pharma and big consumer tech i think we've got an opportunity of a lifetime to drive awareness in our category now mica there were people who felt that GOP dash one would spell the death of you but you've got data which indicates actually let's just say quite the opposite absolutely quite the opposite now i was here 90 days ago and and Jim we've got more numbers uh the MIT nerd has got more numbers for you n equals 660 000 subjects now in the study 10.5 percent higher propensity to start CPAP for the patients with a prescription for a glp one 310 basis points higher resupply rate at 12 months and 500 higher basis uh basis points higher at two years so what we're seeing is more of what we talked about last quarter i'm glad the market is catching up with you and me but these glp ones aren't a headwind to our business they're a tailwind they're bringing people into the health care system and then the doctors saying wow you have sleep and breathing issues we need to diagnose this we need to treat it they're motivated they start CPAP they stay on it and these patients are doing incredibly well and that's just going to continue to grow and it's going to bring more patients into the funnel for many chronic diseases but especially sleep apnea and COPD okay so i wake up this morning i see royal phillips of 37 percent and i say oh my they must have something besides the a settlement of the lawsuits maybe they're being back in here FDA approval no it was just a settlement it should not have hurt your stock yeah look i mean today we were up 18.9 percent on friday today you know settled down a little bit the way i look at it is you know that competitor has had some significant issues they're back in many of the markets in european asia and we were beating that competitor from 2010 all the way through 2020 in 140 countries that we operate in they're back in most of them one of them they are not yet but where they're back they start with zero percent new patient share and they have to compete with the tier three tier two players and earn their way back in i'm confident that we will continue to beat them because we've got the smallest the quietest the most comfortable the most connected and the most intelligent systems out there and more than that we've created an ecosystem with 18 billion nights of medical data in the cloud so we're unlocking the power of those data with ml ai generative ai and we're lowering cost for the health care system improving health for the patients and empowering doctors with the power of health and we're empowering patients with an app 7.8 million of them have my air and they get their own data they know how they slept and how they were breathing all night every day well i want to ask you the wearables of help to the mega trend of wearables that's what people in absolutely jim i think this might be you know if you add up the two big glp one players it's about one point one trillion dollars worth of capital that's pretty big right novo and lily but if you add up just one of the big tech players that's in our field now look at samson they got an fda de novo clearance on their galaxy watch for sleep apnea detection look at apple right another little two trillion dollar company they have the apple watch without symmetry and i think they'll settle that lawsuit with one of my med med tech peers and hopefully you know respect ip pay an appropriate you know settle with that but let's see what that looks like they're going to have the ability without symmetry they're going to have the ability to do the same thing and detect sleep apnea google another trillion dollar plus company they own fit big and fit big has not only sleep it has sleep architecture and they will be able to detect sleep problems and breathing problems so you add that up you're talking about five trillion dollars worth of capital then woop an aura ring there's so many wearables they're going to help people understand the 33 percent of their lives that they should be asleep are they breathing right and if they're not indicate to them they have risky breathing and then send them into the health care system and then a company like res med has to be the digital sleep health concierge to capture the sleeping so consumer and help them find a path to screening diagnosis treatment and ongoing management for life i gotta tell you mick i like that very much it is great to have you on the show mick for our chairman cio abreast med rmd i was really good thanks jim great to talk to you soon man buddy's back after the break coming up hit us with your best shot and electrified fast fire lightning round is next it is time so the way welcome ever today we're about burning saying this talk about the life so since we were able to put it on the question my step here everybody let's play this out and then the lightning round is over are you ready ski that's over the light round because let's go to jeffrey in new york jeffrey hey jim thank you so much for all your advice thank you thank you for a thought just for calling in about uh gg t canopy growth okay that is the best of the pot stocks i'll understand cannabis is actually a big piece of it is own by stz which my travel trust owns we don't think it's worth all that much but we do think it's the best of that lot let's go to sam and calorado sam jim how are you i am good how are you i'm all right jim you know i got an interesting company free tonight you know genomics sequencing is one of the things that i think is going to be a really important part of our health care system moving forward as health care becomes more personalized i think genomics sequencing and dna analysis is an important area to watch i agree with the companies that have been attention to is the market leader in the space and that's aluminum yeah okay that's interesting mention aluminum is a good company that's not well run that's why i've been recommending dana which is better run doesn't really have the same kind of science because that's a gene sequencer but i don't want to own a company as poorly run because then the stock gets hurt let's go to jimmy and georgia jimmy i'm doing well how about you uh oh you know i'm just jimmy georgia i was gonna ask you about uh thank you of america that's all they love very inexpensive stock probably the less well it's more expensive than than city but i've got to tell you uh i do prefer uh other banks i don't think that i i think it's of the big of the big ones i don't it's not my favorite let's put that one let's go to norman new jersey norma yay i can i appreciate you sharing your market with them and you're very caring about dp dinitry five dollar whole uh very expensive stock and i'm not going to recommend it i can't understand why it's so hot let's go to john in bezel made john oh yeah jim we got it the fast growing home health services company it went public and generating its share price fell off quite a bit post IP over recovered strongly after some insider purchases it's treating out of a low market for repeat multiple of 14 despite its strong growth 11 that the 11 panelists covering stock rated at five as a massive 27% short position and i can't feel the like of me figure out why i like your thoughts on ticker p s g bright spring health services i am surprised at that short position too i've got to find out what's the matter before i just bless it because everything you said is true and i really happen to like the industry very much but that position that short position is too big for me to just say i buy that stock some of them may know something that i go let's go to rich in california rich hey jim in fandie eggle we need more of you and david on swap in the morning oh i will do my best i'll do my best to make that happen what's going on awesome nothing much man uh shout out to my cousin my wife and mita my son hunter the barns from my family who's close to coast baby jim uh this stock has doubled since sebruary of 22 but it seems to be just getting started my man by so whole vw technology look i'm biased in favor of nuke that's one of the reasons by the way just so i know i like jeever nova is the best way to play it this is a little difficult i also like uec but i'm with you on i'm with you on this stock let's go to the sally in florida sally hi cramer i'm a biggest fan i always watch your show thank you so yeah so my question is i'm trying to invest in favor security okay and i'm choosing to follow also a crowd strike right very hard kind of strike it's really fabulous but more than you Stanley put out this incremental even more bullish was the name of the piece today about paulato and i thought it was exceptional giving bunch of reasons by paulato big decision my trust we bought somebody got hit i would be a buyer paulato right here right now mitchell and out of mitchell mitchell you're up mitchell all right let's go oh and that ladies up conclusion of the lightning round the lightning round is sponsored by charl schwaub coming up find out why alphabet is getting an a google best quarter of the year and stick with cramer let's make alphabet astounded awesome but i'm calling the best part of the year while the 70 billion dollar buyback new 20 cent dividend got a lot of attention they're not the main reasons why the stock which includes google caught fire no it's not that alford's incredibly thoughtful conference call with more information and transparency than we've ever seen from this outfit just as important that information was very positive and it's why i think the stock can keep running why i think the decline today was a good opportunity to buy first alford talked about its own artificial intelligence programs and how this appeared everyone else's normally i take out a grain of salt but when you go through the calls could they have an edge of the competition plus the ai spending isn't killing their bottom line even as ai account from within half of alphabes capital expenditures which with much of that i believe to be within video chips unlike meta platforms nobody cared about the spending because alphabes other businesses are doing so much better first the obvious the 16 percent revenue growth with four of basis points of margin expansion which gave you one a dollar 74 of earnings per share that's a whopping 15 percent above what was expecting for this gigantic company many including yours truly were concerned about how generative ai could actually hurt google search that's a company spreading butter after listening cool i came way thinking wait a second it actually helps search which of course then helps advertising this is the kind of transparency i have long for and they're giving to us some of that transparency allowed us to see the good things that are happening google cloud they've announced over 1000 new products and features in just the last eight months in fact more than 300 customers and partners are united in their endorsement of gender of ai success with google cloud including Mercedes-Benz Sintas you know i love those guys and Walmart all huge accounts they claim the cloud business is viewed as the leader in cyber security the cyber security experts are using alphabes gemini ai for help i can't disagree with that as for search it beat bi-side expectations by 100 to 160 basis points growing at 14 percent and then the company told us the cadence which is very good we now know that viewers are collectively watching a billion hours of youtube each day and ad revenues there were up 21 percent clouds up 28 percent if you group youtube and cloud together these growth businesses would exit the year at a phenomenal 100 billion dollar run rate with fantastic margins by my mind as alphabet president root pore out state and youtube has become the leader in the u_s_ streaming watch time for the last 12 months lots of good brands for example help McDonald's which is going to port soon build the rest from the future they're deepening their partnership across google cloud i love that kind of detail it's fantastic operating expenses were 21.4 percent 24 1.4 billion those were down 2 percent great sign of expense control there were seven or sixty million dollars in employee severance this quarter clearly alphabes got religion on efficiency there it's way more detail than i can describe here but chew on this the company's increasing its capital spending to about 50 billion dollars this year according to japie morian that would represent a bigger increase in capex estimates and metas and metas dot got killed by capex worries but with alphabet the profitability and transparency gave us comfort that the ai pay off will be immediate and they truly needed to spend a lot just to meet new to customer demand we always want companies to spend more money to keep their customers happy forever sake this whole conference was what i call master class of transparency and health made me feel great to be owned this one for the child of trust it was truly glorious and if this member of the magnificent seven pulls back big you know what it's pretty easy i like to say there's always a bull market somewhere i promise try to find it just for you right here amid money i'm jim craymer see you tomorrow last call starts now all opinions expressed by jim craymer on this podcast are solely craymers opinions and do not reflect the opinions of cnbc nbc universal or their parent company or affiliates and may have been previously disseminated by craymer on television radio internet or another medium you should not treat any opinion expressed by jim craymer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion craymers opinions are based upon information he considers reliable but neither cnbc nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full mad money disclaimer please visit cnbc.com forward slash mad money disclaimer at cappella university you'll get support from people who care about your success from before you enroll to after you graduate pursue your goals knowing help is available when you need it imagine your future differently at cappella.edu