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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 5/3/24
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 loves distributing distribution homes dot com knows that when it comes to home shopping it's never just about the house or condo it's about the home and what makes a home is more than just the house or property it's the location and neighborhood if you have kids it's also schools nearby parks and transportation options that's why homes dot com goes above and beyond to bring home shoppers the in-depth information they need to find the right home and when I say in-depth I am talking deep each listing features comprehensive information about the neighborhood complete with a video guide they also have details about local schools with test scores state rankings and student to teacher ratio they even have an agent directory with the sales history of each agent so when it comes to finding a home not just a house this is everything you need to know all in one place homes dot com we've done your homework 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 somewhere and I promise to help you find it man money starts now hey I'm Kramer welcome to mad money welcome to Kramer and I'll be my friends I'm just trying to make real money my job is not to entertain but the edge cake teach so call me at 1-800-43-CBC tweet me at Jim Kramer can't beat the numbers we got this morning last time I told you we had to root for week or hiring and muted wage growth because that's what gives the fed a reason to cut interest rates and that's exactly what we got no wonder the Dow Game 450 points recipe shot up 1.26 percent the NASDAQ voted 1.99 percent that we finished with the Fed needing the labor report I'm hoping we can focus back on individual stocks at least just a little bit not just the interplay between the bomb market and the S&P 500 remember now that we have a clear signs of a slowing economy we got and gotta look at stocks with a bullish slant because in this environment we won't be fighting the Fed something we were very worried about in April the numbers now tell us that those fears were unjustified just like Apple pulled back hard going into its good quarter it reminds you that the critics and commentators can often lead you astray the house of a so with that in mind what's with the game plan right it all starts not Monday but Saturday when we hear from Warren Buffett the Oracle of Omaha who will no doubt be incredibly positive about pretty much everything especially his portfolio that could be bullish for Berkshire Hathaway as well as American Express Coca-Cola Apple and most of all oxen and petroleum which is the stars of this portfolio and by the way you know the whole things would be covered by CBC I mean I know what you're doing tomorrow I know what I'm doing now it oxen else especially pension is the oil giant reports on Tuesday after the close Buffett loves it I think Buffett will mention Apple several times he's got a new phone coming maybe he's got he's wise that he's gonna hold on to the stock I believe you know it's a gigantic position he'll also probably talk about how Berkshire's gigantic cash hoard can't be used to be kept on anything to buy still the Rosie US worked far more than not Monday morning should be a good day bears beware on Monday morning we also hear from one of my favorites Tyson foods I still think this is a bounce back play it's too cheap and despised and Wall Street from missing many quarters but that was many moons ago I like the setup of Tyson foods I have now called the bottom and we've been right after the close one of my absolute favorite Simon property group might be a it's going to report and this may put up some just terrific set of numbers but that 5.5 percent yield the risk seems low while the reward may simply be to be just I think sensational remember this is the highest quality mole read in the world Simon properties was only as time I thought they told a fantastic story frankly to someone when we're from Disney actually by the way you just report needed perhaps that's the influence of CFO extraordinaire you Johnson from the PepsiCo who leads some up but I think what's going to be a real orderly conference call for once I think we should get some excellent numbers because of all the initiatives and cost cuts Disney put in and part to fend off Nelson Pelston that rough and tumble proxy fight I'm glad that's over next we're constantly on the lookout for anything good come from China right and we get results from wind resorts on Tuesday night we know it's too casino so me Cal the Chinese family haven't either you put up some good numbers which is why we are in for the travel trust the Chinese seem to be willing to travel locally even if they issue visiting here also at the close oh this is a new one Reddit reports and I'm thinking to put up some healthy numbers right out of the shoot Pinterest and snap recently put excellent traffic and advertising those are good comparisons for Reddit I actually wait a very positive story in my humble opinion now we go to Wednesday all right Wednesday we hear from uber in the morning now I wonder whether they might be seeing some impact of a new survive lift that David Rich doing a good job you know that and possible sign that uber's become too expensive to use I worry about these things I keep thinking that the negative report from DoorDash this week might be a little similar to uber and we could see is a suboptimal traffic number when it comes to cars we're also fascinated with Elon Musk right and Tesla that maybe we ought to sober up and listen to Toyota motor when reports it's becoming increasingly clear that the sweet spot for automakers is not EVs no that EVs is not it doesn't really matter here it's hybrid hybrid vehicles where Toyota's long been a leader I think they'll put up great numbers like we used to expect from Tesla but remember it will be hybrid after the close I really like a arm holding and I think we could see some very strong numbers from Renee Haas and company that's the advanced semiconductor design from that it kind of reminds me of Qualcomm what a home and that's been I'm also expecting a terrific quarter from Airbnb that's after listening to Expedia's coffee school last night when they talked about Airbnb's competitor Verbo VRBO having some technical issues that really hurt business hey look what's bad for Verbo is most likely good for Airbnb I mean hey Robinhood had a real good quarter last time I bet we could get another one that's given how popular crypto remains as we learn last night from block the artist for me known as Square and by the way block is doing very well the trade desk might deliver a good quarter as there's been so much advertising money spent on streaming and these guys offer an alternative to Google for digital ads I really like Jeff Green's model oh and we don't want to miss the tremendous production that will be the once-loved now-squared AMC Entertainment I still can't believe the $3 stock traded $380 just three years ago I saw GameStop going up at the end of the day today and I just said well you know there's no accounting for taste now it's been my experience that when you get a surprising good quarter from a good company then there's probably more of them not another good quarter and that's why I'd be looking into roadblocks buy some ahead of time it's delivered next some quarter last time and it should repeat it when it reports Thursday morning sometimes socks just become lightning rods and one of those reports on Thursday and that is Warner Brothers discovery yeah I know under 10 you can't resist right two issues here well they keep the NBA contract that makes them so relevant and will they have lowered their debt they need to go two for two of this stocks go to make it back to double digits next up will be tapestry the old coach it's got to dress the FTC suit to try to stop his merger with Capri I think the FTC actually it may be one to something and try to block this deal for once they're genuinely trying to keep prices down for the consumer even if it is for something that I would not describe as a necessity it's more of a accessory I voted out myself on the fly now tapestry might be able to prove that there's a huge amount of choice in the category and I think they can make a strong case to get the deal done it needs to complete deal to make it as much money as possible for shareholders not that the current FTC cares that much about that point and then after the close Akamai technologies get this Akamai reports now this is one of the three of three content delivery technology companies and the other two fastly and cloud fair most disappointed horribly this week Wall Street with Wall Street thinks that there could be a slowdown this department but what if there's no slowdown what if it's just Akamai taking chair from fastly and taking share from cloud fair that's what we got to find out and they'll probably be the equivalent of power mutual wagering on this one finally on Friday old Kramer favorite and bridge reports there's some skepticism about the ability of this Canadian pipeline company to pay its dividend which gives it a 7.3% yield I think the dividend is safe but we do need to see more growth that's what I went out of a stock now if I have a hope for next week it's that we don't get sidetracked by different Fed officials who just feel like they can't resist right they can't resist talking in the crew captain in the confusion there they give us by talking about the feds next move it's just horrendous for pretty much everyone and everything you know what it's amazing to me that they're even allowed to talk about the economy in public have you ever seen Supreme Court justices talk about ongoing cases in public that would be a huge scandal wouldn't it be it should be the same for the Fed but the bottom line now that it's clear the economy is having a meaningful slowdown we know you need to worry about the Fed becoming our enemy again which means we can go back to glorious stock picky mode at least for like a couple of days thanks to the benign employment number big improvement I said we take calls I said we go to Brad in Texas Brad hey Kramer how are you doing Brad I'm doing well how about you doing great last time I called was about NRG that was that $29 I think I'm up over a hundred percent now so thank you I like that congratulations thank you and also let your interview with that CEO of that one quality company yeah I can't remember who they were but it doesn't really matter but here we go San Antonio has the most locations in the country I physically went to all 28 locations and talked with the workers that line don't stop from open to close the experience of the 10 out of 10 customer service 10 out of 10 price points 10 out of the 10 blue collar workers are here every day and with a hundred seventy seven million total shares and a 69 million share free float with a 10% short interest and earnings coming up how do we feel about Dutch Bros. Alright does reports this week down here's my let me just give you my one problem with Dutch Bros is that every time I it lifts its head somebody comes in does some insider selling and it just wrecks it but I share your appreciation with Dutch Bros but remember the coffee market I say it's gotten a little crowded with the Fed meeting and the labor report finally behind us we're back to stock picky mode for a couple hours talk about a big proof of anybody tonight last time you told him about crack about I hadn't looked at the stock close lately so I did my homework and I'm giving you my take then the travel room has been a dependable team the last couple years and now that a few companies in the space of reporter I'm seeing it he's still tough holds up and generally I fell 6% if you're turning in a top and bottom line beat early this week but rally since so should investors view this actions of buying our period or chance to get out why don't we do this let's talk to the company's top best to 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 mad money at CNBC calm or give us a call at 1 800 743 CNBC miss something head to mad money dot CNBC calm fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution 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 cost 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 cracker bill whole country stores I watched it drop steadily from three years ago about a hundred seventy two the 50s now now it sports a nine percent dividend they got good food seem to have good management and they have real estate on their balance. I know let me do this I myself have been amazed that the stock has dropped like the rock and I've been amazed because I think they can cover that dividend we're gonna do some work on that because I used to recommend the stock and it has been horrendous and I haven't looked at it in many years so we'll come back and do that one. Kevin from Missouri asked and you shall receive thank you for that great question last night and in fact I have done some homework about cracker barrel country store the restaurant chain with a retail kicker known and first kind of off highway locations here it goes. Like I said in the old days cracker barrel was really one great stock I mean for really four decades after it came public in 81 it's steadily marched higher I used to constantly talk about it just and I went used to go all the time but then you know come to the financial crisis it did become a mega horse galloping from ten and change in late 2008 to an all time high of a hundred and eighty five in late 2018 ten years when the pandemic hit though the stock it just got eviscerate. Well by April of twenty twenty one was back to pre-COVID levels this thing was like Teflon since then though cracker barrel has been rolling downhill it's now $56 and change only a few bucks above where bottom during lockdown in 2020 so what the heck happened here when you dig into the numbers it's clear cracker barrel came out of the pandemic is a much weaker operator that's highly unusual sure they've had some revenue growth versus 2019 but much that's because they acquired maple street biscuit company in 2019 and that brand became the only real source of new store growth here more important cracker bells earnings are still nowhere near where they were in 2019 because their profitability never really recovered. See these guys earn more than nine dollars per share in 2019 but this year they're only expected to make four dollars and fifty nine cents per share and that's down substantially from 2023 to the cash flow trajectory is similarly subpar. So what's the problem here? First consumers have been moving more towards quick service or limited service food places rather than full service restaurants like cracker bow. Second their clientele skews older and because many older people are on a fixed income they tend to be more resistant to price hikes. While every other restaurant raised prices were over the past few years cracker barrel hasn't had much room to maneuver even though they're dealing with the same cost inflation as everybody else. Third the company's been slow to adapt to the modern era. They only introduced a loyalty program late last year they haven't had much success appealing to younger people and while map maple street biscuit can give them some growth it's still too small to really move the needle at this point to come locked in here. Fourth cracker barrel is some quirky company specific issues the whole restaurant industry wants to speed up the paying process in order to get people in and outfisher that's called throughput but cracker barrel is those attached retail stores you know the ones with like the rocking chairs so getting you out the door faster means you're likely less likely to buy this stuff for the retail sour than the big money is and that's why this talk's been such a nightmare but what do we do what do we do with it now? Okay first thing you need to know the company is the understanding of the problem see last year they just poured into the CEO are they poached her from Taco Bell Julie Messino and I got to say it she's only taken over in November she's only been on the job for five months but we're already seeing signs of improvement in the latest quarter cracker barrel sort of improvement in traffic trends and better than expecting the same sort of sales thanks to higher spending and labor and marketing seems worth it but management guided for meaningful decline in operating income for the quarter that just ended as they continue to spend more money in order to turn things around see Wall Street didn't like that not one bit okay bit forecast they won't crack her about a focus on profitability first hence the recent week this in the stock but this spending is actually part of the initial turnaround plan that Messino rolled out late last year there's been any more on labor and advertising or boost traffic that said Messino's adamant that there's still a lot of work left to do she wants to reposition the brand refresh the stores bolster cracker barrels marketing efforts on top of that she's rolling out new menu items as well as value at oriented menu available week and week times from four to six p.m. that's the end of the early bird specials to your citizen crowd that way they can raise prices after the that early dinner wave without losing too many people finally she's planning to find ways to reduce the amount of labor needed to run the stores which would do a great deal to contain costs and get the margins expanding again now on May 16th cracker barrel hosts a another quoted strategic transformation update call where we'll hear more details when it's turnaround plan frankly I want to hear that plan I got away I can't talk about what I think I would do this thing until I can't give it a full throw it endorsement till I listen to call I say wait because there's one big caveat here when Kevin and Missouri called in about cracker barrel he pointed out that the yields now 9% right now that's a great return assuming the company could pay the dinner I said the passable covered it only cost them $150 million per year which is about half of cracker barrels expected free cash flow so again they can't cover the dividend but now you got to ask yourself new CEO do they want to pay it see with the new CEO in place and some expensive turnaround initiatives ahead of them which they do have it wouldn't shock me if cracker barrel decides to cut that dividend in order to free up some cash for its investments I'd expect that to hurt the stop but keep in mind that it's been selling off for months because people believe a dividend cut might be coming on the other hand if management reaffirms this commitment to the dividend which I think would actually be surprising well then this stock could sort the point where the yield gets a lot more reasonable again one more reason away for the strategic transformation update in two weeks I don't maybe buy some calls on it and risk you know cut off your downside but ultimately here's where I come down I want to recommend cracker barrel I really do but I'm not quite there yet I can't get comfortable I'm afraid of the dividend cut the possibility one yes the company's finally come to terms with the structural issues yes mop missed about new CEO Julie Massino and her turnaround plan she sounds real smart but before I pound the table and cracker barrel I got to hear what the company says in two weeks during the strategic transformation update call especially on that dividend front so here's the bottom line until we get more clarity on that dividend you gotta wait okay but there is a good chance that we'll find out what they're doing in two weeks and whether they cut the dividend or keep it then we'll make up our minds thank you to our callers Kevin you're no longer in the show me mode you're in the due mode that money is back into the front coming up can summertime wanderlust make your favorite stocks go gangbusters Kramer checks in on a few key names in travel 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 comm slash business gold card last that we heard from both Expedia and booking Holix they painted very different pictures of the travelers Expedia stock getting crushed for the second quarter of while booking Holix the appeal price line rallied nicely so what's going on with the travel business for the past couple of years this has been one of the most reliable themes out there every time it seemed the fall or it came right back but the parts of travel are working have changed pretty dramatically that's my takeaway from Expedia booking Holix and then Marriott also which reported back on Wednesday morning the travel business needs to check up right now so let's take one first up Marriott that's the largest publicly traded hotel chain where this stock that's been very strong for a very long time even spent most of April pulling back from its highs it always isn't free me I think Marriott delivered a solid quarter slightly better than expect the revenue up six percent year of year slightly worse than expected areas per share their four-year forecast was strong but their guidance for the current quarter came in surprisingly light beyond the headline numbers though there were some discouraging trends I have to admit take rev part this is key measure rev part that's revenue per available room Marriott's rev part grew up by 4.2 percent year over year that's 40 basis points lower than what the analysts were looking for occupancy rate was a little light pricing a little light not ideal my list of the conference called management talked about the virgin trends between domestic leisure and leisure travel and basically the rest of Marriott's business so the company said that travel demand has normalized that's a bad word in this case in the US and Canada meaning the post-pinnemic boom is now over but they also know that the rest of the world's doing great merits international revenue per available room was up 11% led by 16.5% quote in Asia Pacific so the US and Canada is slow but international is on fire on this news Marriott's stock fell a couple of bucks in response but then it had a nice pass yesterday I think it's fine doing this one what I'm focused on is the internal shift from domestic to international which brings me to the tool online travel agencies that both reported last night the short version is Expedia bad booking good as reflected by the 15% declining speed today versus a 3% gain in booking that's a fair assessment but there's some important context that you get when you really drill down into these two quarters and personally speaking the actual quarter was just really mixed not a terrible disappointment it was though a little unnerving which is what you expected it is to climb the stock so the bookies came in a little light but the revenue was better they expected up 8% your viewer earned 21 cents per share while she was looking for a 14 set loss even the weaker bookies weren't really demand related but this is what mattered Expedia's verbo home rental platform their Airbnb knockoff had some technical issues that took the platform off-line for sustained period of time that people is devastating the company's trying to migrate everyone the same platform but something clearly been rolling the process and it just crossed the quarter however Expedia pretty good things to say about the rest of its business including in the words quote some acceleration in the rest of our business to consumer business and quote which the company expects to continue throughout the year but given the hit from the verbo tech problems Expedia had to cut its full year forecast rather than the previously expected double digit booking square with margin improvement Expedia is now looking at a mid to high single digit booking square with flat margins and that's why the stock cut absolutely pull price and then you have to ask yourself did the sellers over react honestly I am tempted to say yes as this appears to be a one-off issue even if it's dragged on for more than expected speed is now very cheap stock it's trading less than ten times this year's earnings estimates plenty of growth expected over the next three years but I still have one major hang up here which is that these verbo issues mass the core consumer travel demands so it's hard to get a read on the state of the industry from Expedia here's the swing factor for me Expedia CEO is on his way out in February the company announced that Peter Kern a friend of the show in very smart guy had had we've had him on the show we'll be passing the reins to Ariane Warren okay previously the head of Expedia for business effective ten days from now well that isn't that smooth transition or at least not one I hope for so I have to put Expedia in the penalty box release the court finally let's talk about a bookie holders the star of the night of the whole stock market well now I guess you can include Apple right with an excellent set of results the bookies grew by by 10% year over year coming in much better than expected room nights booked up 9% total revenues up 70% earnings up stunning 76% all better than expected Wall Street was only looking for $13.98 they gave you $20.39 not even the same zip code the consensus estimate and that's why the stock just took off rallying 3% today bookies gave us some low ball guidance for the current quarter I think it would have been up as much as Apple was I'm not too concerned about that though as these guys like the under promised over deliver and that's what they always do what's the key difference between booking holdings and Expedia aside from the unforced art with verbal Expedia is mostly a domestic travel play 63.5% of its sales from the United States according to facts said booking holdings mostly international only gets 11% of its sales from the United States really huge in Europe and remember what Mary said while domestic travels normalized post pandemic international travels still booming for booking holdings Asia room nights grow mid teens Europe and the rest of the world were up high single digits meanwhile mark was up low single digits President CEO Glen for we might have seen him one squad box today he had this to say when we came out a pandemic there was that revenge travel which has petered out a little bit we're getting more a normalized travel environment though Asia is still recovering some somewhat which is what we had such nice numbers last night to announce about Asia with a mint mid teens growth over last year that was more a post pandemic benefit look all around people want to travel and we're glad to be able to provide great services to them I think I saw my book back there I'm not kidding one of my books is there all right putting it all together for Mary out Expedia and booking holdings here's how I'd sum things up demand for travel remain solid but leisure travel does seem to be waning a bit here in the US these companies are framing that as a normalization after some boom years and I think it's a fair description but the global travel industry shows plenty of sources of growth like group and business travel where the recovery started later and has unfolded more slowly so here's the bottom line in this incredible theme that I don't want to lose I think it's still his legs it's just that there are different legs from six months ago the morning are actually oriented plays like a mortgage pressure booking holdings can keep working but the more domestic focused airlines and hotel chains I think they're in a worse spot and that's where we are right now I want to take calls I'd like to go to Drew in Idaho Drew Gem State Booyah from a charter member of the investment club yes man I am thrilled that you're in we kind of try to keep delivering for you going to ask you about this stock that started I start following it during COVID in the hundreds closed today at 15 is the synergy with the SPN an opportunity or a trap I'm talking about Ken Entertainment PEMM look look you if you're going to go down that area you want to go win for big casino and you want to go draft Kings for gambling those are the two kings and those are the ones I'm offering I'd like to go to Peter New Hampshire please Peter Gem how are you doing TDIF thank goodness it's Friday yeah I got nothing going it all this weekend I'm pathetic what do you got cooking I'm a little bit of extra work and hopefully getting some kids out outside okay okay remember you want to go for the 12 horse there's only 11 I'm not doing anything wrong go ahead hey I'm looking at Stellantis STLA I got in for a couple dividends but however it's retracted about 25% since it's yeah the quarter wasn't that good I was actually surprised these guys have been as consistent as can be I am gonna have to recommend that you do four why because four would be nuts not to do a buyback right here they should be just buying stock hand over fist Stellantis isn't bad but I was surprised they did not deliver on the court all right well the travel theme has still got legs but you need to consider international oriented plays like a more expression for your honours compared to their more domestic counterparts much more man bodyhead including my students with Generac does this energy tech company have what it takes to power your portfolio higher I'm getting the latest in the CEO that Apple is a bright spot in today's tape but there was one aspect of the company that is not being mentioned at all as part of the upside and I think it's got tremendous potential our real what it is and of course I'm going to take the most rapid part transition of the lightning round so stay with Kramer what's going on with Generac Holdings it's the number one maker of home backup power generators there also has a big business making batteries for renewable energy and Wednesday Generac reported a nice top bottom line beat but the stock still fell more than six percent why will management said the residential business is likely to do worse this year even as they think it'll be offset by better than feared numbers in the commercial and industrial side of the business but after big bounce today the stock is now made up most of the ground that was lost on Wednesday so is the market's just reaction a mistake or is this post earnings to rebound your chance to rank the register let's check in with Aaron Jagfel he is the chairman president CEO of Generac Holdings get a better read this information for Jagfel welcome back to me at money hey Jim how are you doing all right well Aaron I've been thinking a lot about you and your position and the one thing that we know because of global warming because of climate change is that everything has not only become unpredictable but it's unpredictable to the extreme which makes me want to know how can you possibly make a forecast when you are in the most high risk forecasting job in the world it's a tough it's a tough business to forecast it always has been you know there are things that happen that are outside of our control but we've always got to be prepared for when they do happen I think that the one thing we can to say about the forecast Jim is that we know power outages are going to happen because they've been happening over the last couple of decades at a higher you know a higher rate we just don't know when they're going to happen we don't know where other than that we're in pretty good shape well I mean you do talk about the idea that we're seeing events that used to happen let's say once every hundred years they're not happening every five years I mean that's I don't know how that's possible other than because of extreme climate change absolutely you know I mean like the science is clear here air temperatures are warming water temperatures are warming this is leading to you know a greater range of severe weather and that's everything from the hurricanes to the ice storms we see but also you're talking about heat waves and droughts you're talking about flooding all of these things are having a major impact on the infrastructure in the country including the power grid now at the same time we're seeing something that I know you're really acutely aware of it seems like that everything can't have even a minute down of power we've got so many different things that cannot possibly go off unless the end they will really go wrong this is very different from 10 years ago isn't it I think of everything in your home think of everything in a business I mean a loss of power today is it's much more than just an inconvenience right I mean you're talking about a loss of productivity in your ability to work I mean look at how many more people are working from home today even in some kind of hybrid type of work schedule you can't even you can't even do that if the power is out we're gonna electrify everything we're going to electrify transportation you're not even going to be able to take your car out if it's not charged we're putting in heat pumps we're putting in electric ranges and stoves and trying to get rid of all you know the gas appliances the more we electrify things the more this is going to become a problem people are going to have to have some kind of a backup strategy well I be in a situation because I have stuff that I can't have go down where I have to start thinking about my power company and perhaps thinking that you know what my power company has had a lot of irregularity so I can't afford to be there without a generator absolutely I mean this is this is the decision that all of our customers have been taking they say look I have and whatever it is in your life right everybody has something that's so important to them from a power standpoint that they can't risk interruption and so they can't depend on a single source for power anymore you have to have a backup that backup could be a generator that backup could be a battery it all depends on your needs and your situation now when I look at the some of the people like we have this great guy shug we called from next tracker he's saying that 50% of our power is going to come from renewables 25% solar 25% wind and I think about 100% nightmare because sometimes it's not sunny and sometimes it's not windy so I don't know what else to do other than have a generator well this is a real problem I mean look the grid is changing and so I think that renewables are coming in right utility scale wind utility scale solar it's coming in and basically on par from a cost perspective with some of the traditional thermal assets we've used like coal and gas that's the good news the bad news of course is exactly as you pointed out those new renewables are intermittent right and by the very nature of that word they don't operate 24/7 so how do you cover that gap so it's it's becoming incredibly complex for utilities and grid operators to balance supply and demand because demand spikes occur when you know in the middle of the day and on a weekend and they've got to be ready for that today they use what they refer to as reserve margin right right it's the amount of production over the peak demand those reserve margins have slowly been shrinking and this is before we even get to the explosion that is AI yeah I think we're really just overall gonna have to have at least many generations now but how about this notion that people are losing uh let's say losing interest in pure EVs and what does that mean for general well today you know I think that EVs the penetration rate is going to slow a bit we've got an EV charging product we have in the marketplace it's not a huge part of our business today we view it as an important part of the energy ecosystem in your home as more people again they electrify everything in the home including their transportation so I think that that's going to be we're going to go through a period here where it slows down but then it's going to speed back up and I think in the end you know look the internal combustion engine driven vehicles and internal combustion cars and trucks are are converting to EV and so you don't need EV charging long-term now so Aaron what do I do uh in a situation uh where I've been sending power to the utility and now the utility says I don't need any more power where do I put that power that I was sending the utility you put it in a battery because that's the only place you can't put it and still have your system make sense from a from an ROI perspective right so you're exactly right utilities are saying look I don't I don't want the power or at least I'm not going to pay you as much for that power as I would have paid you even a year ago or two years ago right this is going on in california it's going on in other states where they're actually changing that reimbursement rate for that power because everybody's producing their own power during the day they can't buy it back from you at retail rates and turn it around and they've got nobody to sell it to but if you put it into a battery gym you put it into a battery you save that for later you can discharge that battery as the sun starts to set right in your solar production curtails you bring the battery online and now you're self-sufficient and you're using your own power that you generated during the day instead of buying high cost power from the utility all right that's good and I need one last thing I need to know what AI is doing in the process of electricity so AI is incredibly energy intensive technology it's great stuff and we're just on the tip of the iceberg here but a single chat gpt request takes 17 times more power more energy intensive than a google search so think of that for a second right one chat gpt discussion 17 times more the amount of power that AI is going to consume through data data centers that are coming online here over the next five years it's going to be the equivalent of adding 40 million households to the u.s. grid and we're just not prepared for it but that that's insane I mean I must have done a hundred searches today are you telling me that I personally my footprint was gigantic today? Massive massive gem now I'm bummed oh well anyway look you are just a breath of fresh air yourself I do love my jet and rack by the way because this I love my generic as much as I hate my power company how about that because they are not the exclusive they are inclusive I want to thank Aaron Jackville, general chairman, president, CEO it's always great to have you Aaron thank you so much for coming on thanks for having me on Jim appreciate it been a place back here for the book when we return master the markets one stock at a time the lightning round is up next time the lightning round is over are you ready ski daddy come for the lightning round is up with Glenn in Florida Glenn good evening mr. Kramer thank you for taking my call on my set I truly love your show thank you everything you do my stock that I'm looking at is a health care ticker symbol HCA third last quarter good I'm gonna have to go with it I know it's been uneven in the last year but it's been a great long-term horse let's go to Sharon in Minnesota Sharon oh yeah Jim we are Sharon I want to say hey I'm a club member I really appreciate it and I want to tell you that thank you so much for encouraging people to rescue pets and not shopping for them oh we're not doing my daughters doing cats now I'm doing dogs and she's doing cats that's great so my question is about Jean Villanova whether it really is really setting up or oracle which used to be okay well first year this is an interesting thought because right now it's really a play when natural gas distribution I know it's got you know people want to be about winning and it's got nuclear but it's natural gas and believe it or not natural gas is very strong so I think the stock is by but it may not be the environmental play that people think it is how about that let's go to bow in South Carolina bow hey Jim often to talk to you I would like your opinion on live nation right here okay if it weren't for the fact that I fear government investigation I would say bye bye bye because they really own this market but I think that's the problem I think the government doesn't want to know in the market let's go to mark in Wisconsin mark dr. Kramer this is show I got a stock for you but I'd be more interested if you had the insider guidance as to who might win tomorrow's Kentucky Derby it will not be mainstay and it will not be no I I'd say it you know it's I'm not really allowed to offer that kind of advice I am going to be making my bet and you can check on Twitter but I'm not gonna do it here on the show I'm sorry okay all I got a stock for you it's in the IT sector it's not making money right now so win place or show on ticker kd Kim Drell okay Kendrel's the last two quarters have been terrific Martin Schroeder's done a remarkable job it's been going higher and higher and higher and I think I think that Martin's going to continue to deliver and it's a good opportunity let's go I feel better about that more from my my picks you know like the number of live in what a wider let's go to Joe in New York Joe Jimmy kill Julia showman in town what's happening I'm looking at rubric all right now understand this if you're willing to own a very expensive enterprise software company you can own rubric because it is a really good company but it is really expensive now let's go to Deborah and Connecticut Deborah hi Timmy thank you for taking my calls no very long time first time excellent I'd like to get your thoughts tonight on Dorian LPG limited I know it seems so it seems so cheap Deborah my problem is is that I've never made any money with the shipping story so I can't I told myself I'm a jinx I know this one looks like it's going higher but and it's got but I got to stay away because I just can't value them correctly let's go to Connie in California Connie by there I guess now is a good time to buy a P.A. you know and a dorko got bought and that's in that left only up of a P.A. as being like the one that I thought was left to be bought but it's not gotten bought because it got too much natural gas so I'm going to send you to coach Tara that's my faith and that the lightning round is sponsored by Charles Schwab coming up the buyback heard round the world and a vision for the future Kramer caps the week off with apple after the break apple stock is a complex piece there's so many variables that go into a trajectory today the stock rallies 6% thanks to last night's quarter and most of the media attributed the positive response to apple's new 110 billion dollar buyback largest ever look I can't dismiss the buyback as a reason the stock might have grown up but see if it will look a mystery explain that the scale of the buyback is less about property at the stock what about apples continue attempt to be cash neutral it had 58 billion in net cash at the end of the quarter given that the company currently has 105 billion in total debt this repurchase plan is simply in line with what you'd expect and it's what they've given you it's not CEO Tim Cook playing the market judging the stock is overwhelming cheaper something no I think apple were today because his Chinese sales defied the gloomsters all those surveys that told you the things are getting worse according to cantor who keeps track of these things the two best sellers in urban China were the iPhone 15 the iPhone 15 max whilst you're expected the cadence of sales in china to go from bed worse but it actually improved which I felt quite encouraging that benign China scenario helped apple offer forecast of low steel digit growth that is a heck of a lot better than what you'd expect if you were listening to skeptics which is that apple becoming no growth company and working for about 1 percent with these numbers out of the way apple stock now is a pretty clear glide path first of the all-important developers covers the WWDC on June 10th and then to the new iphone launch in the fall the next iteration film might be a must buy why because of all the AI that'll be loaded into it Tim Cook assured me that if I love the Android AI which is very impressive I'll go crazy for apples technology finally enough the one thing nobody in the press mentioned is an upside surprise was the vision pro and spatial computing remember that was this new device that had just come out I couldn't find a single word in Wall Street research even mentioning this $3,500 gadget anywhere nowhere now I did however read in the computer media about how it's a total boss as PC gamer said today in a vicious headline on a horribly negative story and I quote more than half of fortune 100 companies have bought vision pro units according to apple so it's least sold at least 50 of them all right good punchline but for the record I'm hearing something completely and entirely different I'm hearing that the vision pro and spatial computing are both hits with the enterprise not the consumer but with the enterprise and the business to business applications are going to be used at all sorts of industries I can't stress enough how important this is because when I went out to the NVIDIA GGC event two months ago I saw the vision pro hooked up to NVIDIA supercomputer and it let me check out a Nissan Roadster without ever leaving the room of course there was no Roadster it was just a chair but it worked just as well as a visit to the car dealer except I wouldn't have had to leave my house I understand the consumer may not be crazy about devices $3,500 headset you can find something for matter for $5,500 the vision pro's viewed as an expensive toy that might be good for let's say flying across the country watching or moving nothing else but I keep telling you that spatial computing belongs in the enterprise it's only a consumer product for those with a lot of money to burn the apple can attach it to an NVIDIA on the verse the business applications are endless and mouth and really bountiful you can use to create digital twins of any structure or product then plan it out in VR to solve all the potential problems before building in real life any company contemplating constructing any sort of building and by the way that is the largest in total just market in the world with most likely demand that all involve be wearing a vision pro so they can build things together saving time and energy while reducing waste hospitals operations perfect selling cars amazing homes perfect I think the jokes about the vision pro will be retired next year when the enterprise adopts it and buys hundreds of thousands of them at a high price point at which point this thing would be an actual meter needle mover for apple you need to be ready even as the stocks toward today that possibility is not baked into the share price at all vision pro laugh now pay later I'd like to say there's always a bull market somewhere i promise i'd find it just for you right here man money i'm Jim Kramer see you monday 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 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 forward slash mad bunny disclaimer when you visit a state as big and diverse as texas there are a million different trips you can take let's say you've got an appetite for whitewater kayaking you can get your own so this is why they call it Delos River trip to texas or maybe you have a natural appetite i'll take a pound of brisket six ribs three links of sausage and a piece of a compai trip to texas go to travel texas.com/ get your own for the only trip to texas that matters 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