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 5/9/24
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They also have details about local schools with test scores, state rankings, and student-to-teacher ratio. They even have an agent directory with a 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.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. Mad money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer, America. I've been my friends. I'm just trying to make real money. My job is not just to entertain but to explain, so call me at 1-800-743-CMC or tweet me at Jim Kramer. Even on a decent day like today, we're down game 331 points. S&P Climb 0.5-1%. And as that line plus 0.27%, I'm sure you have some positions, some stocks that you own, that are treading water. Or being hit, especially some of those techs. And you're struggling to figure out if it's worth it to hold onto them, or maybe move into the drug stocks or the banks, or something a little more placid, like the industrials. I get it. Back on my old hedge fund, we reviewed our positions three times a day. That's right, every day. Three times a day, I'd have to defend them to Karen Kramer, our head trader. If my enthusiasm flagged at all, if there was a negative news story, a downgrade, a price target cut. Or even if the stock was just heavy, where sellers didn't seem to care what prices they sold their stock at, sheep deem it vulnerable and kick it out, whether I liked it or not. It was brutal, but necessary. We were running out of the people's money. We had to contain our losses. They were looking over our shoulders. When it came to dead money, forget about it. She said let's boot it and come back at a better time. There are other stocks to own that can win. You see, this attitude a lot from people who come on our network. Don't you? They're running money aggressively. They can vacillate constantly. I did the same thing in my hedge fund. It served me well. But that's not how we run the charitable trust. The one you can follow if you belong like so many of our callers to the CMC Investing Club. It's not the way you should manage your own money at home. You've got other things to do. You have no need to trade in and out of positions like crazy, because you don't have any investors looking over your shoulder criticizing your every move. You can afford to find companies you believe in and stick with them, as long as the facts don't fall apart of you. Now, that does require a great deal of faith in both management and the underlying business. Because invariably, your stocks will go down and you'll want to give up on them because of the pain. The house of pain. But that's usually a mistake when you're not running money professionally. Stocks sell off for all kinds of reasons. And it's difficult to swap back into the good ones before they rebound. As long as the thesis hasn't changed, you must resist the desire to give up on your favorite stocks. No matter what you hear from the billionaire class and the hedge fund managers who want to cut their losses because they can't spare a spot on their portfolio sheets. For what feels like a do nothin' stock. Which brings me to the most talked about stocks of the current era. Nvidia, Apple, Amazon and Tesla. Remember them? Four companies with riveting stories and technical metal stocks. I like the first three, not so much the fourth. Let me start with Nvidia. Now, okay. Bear with me here. Hardly an hour now goes by without some portfolio manager, some analyst who trimmed or dumped their Nvidia stock. They're Nvidia positions while it's too high. Sometimes I wonder if they even know what Nvidia makes. Everyone agrees the stock has moved up a great deal. Many have sold it and bought it back repeatedly. That's great. I believe you should just own Nvidia, not trade it because I've come to believe in the CEO, Jensen Wong. I like their business. I believe in him when he says we're on the cusp of the new industrial revolution. In that AI revolution, it will be powered by towers of Nvidia's chips, which happen to run at places and speeds. Especially I could see them selling trillions of dollars to these chips because they give you everything you need for what's known as accelerated computing. And that's why we own Nvidia forever for the child of trust. Of course, we check our thesis constantly. This morning, I interviewed Renee Haas, the CEO of Arm Holdings, a company I like very much, closed partner Nvidia, and point blank asked him if he believed in the new industrial revolution. He does. Maybe he's just talking to his book, Everybody Does It. Maybe I'm long about Jensen and Renee. But I do have a degree of faith in Nvidia, and anyone who's believed in this stock long term has indeed made fortunes. I will ask Chase for you to allow the CEO of Arista, who knows the space cold, about her conviction though, later in the show. That's a winning stock too. Of course, the stock of Nvidia acts very heavy. And it peaked at the beginning of March. Sure, that was about 90 points ago. Should you have given up on the thing? Should you give up on it now? Now, what if I told you the Nvidia stock basically did absolutely nothing last July through December of last year, because it was digesting a huge move then, and the market temporarily turned hostile? What if I said that's typical of the way the stock trades? In this tape, you shouldn't expect much of Nvidia when it reports in a little less than two weeks. If you can handle the fact that it periodically goes in and out of style, maybe you're not cut out for individual stock picking. That's okay. Most aren't. How about Apple? Right, this has been a strap yourself to the mass stock for ages. In the last few months have been one of the, really the rougher rides I've experienced. Not only did you have to endure the endless reports that Apple's China business kept getting worse, reports that turned out to be false, you also had to hold on through multiple downways and price cuts. Oh, why? Sell, sell, sell, sell, sell. All based on declining phone sales and the possibility of a cut to the full year forecast. Instead, when Apple reported you got a better than fear result for handset sales and a strong forecast for the current quarter. They opposite of what everybody said, well, many people said could happen. Now, if you had faith in Apple, the solid quarter was not a surprise. But if you did, I know at times I thought I was the only one that left it, too. Or the stock wouldn't have worked like that after earnings. Now, we have the worldwide developers conference in June and the next phone in the full, which could be chock-full of AI, and therefore a must upgrade for you and for me. I like those odds. Again, the toughest course of action, just owning Apple and holding it tight, turned out to be the best move. As it almost always is with the leadership of Tim Cook, Amazon's been difficult because there's so many moving parts, any one of which can sink the stock prime, web services, advertising, delivery costs, antitrust regulators, who have it in for the company that's done more to give us low prices than anyone's safe, perhaps Costco and Walmart. Now, you may not realize that every single metric has improved markedly, markedly in the last year, especially time to delivery, because Amazon's worked hard to change routes, so you can get everything, well, I'd say, a lot of stuff same day. By the way, web services is really thriving, too, and that's where the money is. That was declining, declining, declining, and now it's shooting all the way back. We tend to do you want to tease accomplishments. But the fact that all these moving parts came together fuels downright miraculous to me. But it's actually not a miracle. It's just how to speak great management. Now finally, there's Tesla. Now, this stock doesn't fit the pattern of the other three. First, Tesla's sales are going down, not up. Second, the estimates are going down, not up. Third, the stock's super expensive for a car or a tech company. Fourth, prominent execs seem to be jumping ship pretty constantly. Fifth, the bloom is off the electric rows in this country, at least for now. Sixth, I tired of hearing about Elon Musk's robo-tax. Maybe one day it'll be a savior, but our market isn't set up for a man China wants to do it. They're going to do it cheaper and homegrown. Now, I know Musk is entertaining fuel. Everyone wants him on TV, right? I know he's a visionary. I'll even stipulate that if he's wrong about the technology. It's because he's just too ahead of his time. Doesn't matter. To me, Tesla doesn't pass the test. There's two of the packs on on our side. So it's very hard, just by having faith in this one, or the man. Here's the bottom line. You need to think about these kinds of challenges for you by any stock, and most certainly before you sell any stock. You don't need to swap in and out of stocks constantly ahead from manager. You just need to figure out which companies deserve your confidence and you stick with them. Let's go to Betsy and Connecticut, Betsy. Booyah, Jim. Whoa. Booyah, Betsy. What's happening? I love your show. Thank you. Thank you very much. I'm calling about Boston properties. The stock has taken a real beating these past five years. I'm tempted to get in now, but the commercial real estate market is facing lots of headwinds, particularly office buildings in large cities. Do you think there is some buying opportunity now? I think you've been-- Well, first of all, thank you very much. I think you'd be reaching for yield. That's something I learned when I was a Goldman Sachs should never do. I literally think, and the stock has had a move here, but I literally think that what's happening is that people want a good dividend, and I want a safe dividend. And then stick with the show, Red Roar, and I think you can hear three of them that I think you will like very much. Let's go to Omar in New York. Omar! Hey, Jim. Long time, Sam. Thanks for having me. Thank you for calling. I've been in DoorDash. No worries. As of late, DoorDash has been trading below $120. And Uber on Instacart have recently announced that preparing a joint effort to take market share away from the fast food delivery giant. As an investor, is there any cause for a concern regarding DoorDash's future outlook? Okay. Well, it's an expensive stock, but I believe in Tony's shoe. I have believed in Tony's shoe when it was private and when I owned restaurants. And I think he's doing a terrific job. I actually like the quarter. I think people were way too quick to say it wasn't great. They, I think, will be judged harshly. Let's go to Bill and Massachusetts with Bill. Oh, yeah. Jim, Bill. Yeah, Bill. What's up? About six months ago, we talked on the show about a bird of holdings and it has doubled since then. Yeah, it's good. Very happy. Good boy. Good boy. That one. Thank you. Go ahead. No new one. Yeah, Jim. Yeah. You're with me. What's up? So what do you think? What do you think Verde is going to do with this point? Should I pick up some more? Should I wait? No, you don't buy more. Here's what you do. After 100% movie, you can't buy more. What you have to do is you want to trim something. I would take 20% off. That what I want to do is make it so that you play with more of the houses money than you're doing. And by the way, I think the world of Verde than have and everyone knows that because Dave, Cody, he's a chairman. I've been back in Dave ever since he really decided to kind of take it over and we put, I don't know. We put about an 80 point game. Never shabby. All right. Look, you don't need to operate your portfolio. Like a hedge fund manager, just figure out which companies deserve your copies and then stick with them. On man tonight, how is AI spending impacting one horse of a stockholder risk to networks? I'm sitting down with the CEO if you're supposed to raise rise. Then I'm comparing Monster Beverage to Celsius Holdings, telling you which company comes out on top. Might be surprising to you because these energy drink stocks, they can be very fickle. And if you think that rates are only headed lower, then it might be a good time to pick up a retail read. Not in an office read, but a retail one. I'm revealing the ones on my shopping list, so stay with Cramer. Don't miss a second of Mad Money. Follow @ChimCramer on X. Have a question? Tweet Cramer. #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com 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 ssga.com for a prospectus containing this and other information. Read it carefully before investing. Spy is subject to risks similar to those of stocks. All ETS are subject to risk, including possible loss of principle, Alps distributors and distributor. When you're hiring, the best way to search for a candidate isn't to search at all. Don't search, match. With Indeed. 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You need Indeed. ♪♪ The roller coaster action, the stock market, the demand for infrastructure that can power artificial intelligence never really went away. Take a risk in networks. There's makeup high performance networking equipment that's increasingly essential if you want tons of computing power for AI, among other things. With Tuesday night, a risk reporter strong top and bottom line beat with management raising their full year revenue forecast, which allowed the stock to jump 6.5% yesterday, and a bit more today, as it should. The only problem that stocks up more than 25% for the year, that's a high quality problem. Is it? Can it keep running? Let's check in with Jay Shree Ula, the bankable chair, president of the risk and networks. If you get a better read of the quarter, there's a lot. Welcome back to Bad Money. Good to hear from you, Jim. It's been a while. You're way too long. Jay Shree Anthony again reported a monster quarter. I know there are other people in the networking business who are telling me that there's just not a lot of business going on, which made me think that you're getting all the business, because wow, what a quarter. Thank you, Jim. I have to thank our wonderful products, technology engineers and most of all our customers for choosing us. Well, let's talk about the fact that you have basically a ventured forth, not just ethernet, but somebody would just say dumb switches, they were never dumb. But you're working on a network as a service that can use all the knowledge that you have and really help companies beyond just anecdotal. I mean, you've got a great empirical set of data that works terrifically for artificial intelligence. Absolutely. I think over the last 15 years, Jim, we've created this operating system called the U.S. and we built into it a network data lake architecture that enables a tremendous number of overlays for zero touch automation, security, observability, and especially for this new wave of artificial intelligence. And that's really coming in as a strong offering so that customers can not only build a great foundation but also overlay the right software characteristics on top of that. I really like the line that you had in your conference call where you talked about the key is observability, which I know because of cybersecurity and many of the companies we deal with are so concerned that you said we cannot secure what we cannot see. The other guys don't really offer that option, do they? Not really. It's very difficult to see if you're not smack bang in the middle of the network where you're connecting to everything from users, IoT applications, AI infrastructure, etc. So we're in an ideal position to look at all the telemetry and observe everything and then take action on it. So I think the network position is a pivotal point and a critical junction for that. I want to step back for a second, but the people aren't that familiar with what you do to make a huge amount of money for people. If we did not have a risk of what would happen with all the great GPUs that we're reading about, what would happen with Blackwell? What would happen with the current iteration of what NVIDIA is doing? I think, you know, let me take you back ten years when you and I first met. You almost asked me the same question then. At that time, we were powering the cloud and as we talked, you know, it was Satya's Azure and all the cloud networking that we powered now gives us a second chance to do this with AI. So, you know, what NVIDIA is doing is now bringing these massive training workloads at billion parameters across GPUs. And these processors have to be utilized fully. They cost often billions of dollars. So any kind of idle state and 30% downtime costs them money. So without a good network, you can't have that utilization and that's exactly where Rista comes in. We're building the absolute best of breed foundation for AI networking to make those GPUs hum and ignite better. Well, look, I am all in, but I also am cognizant, as you know, that I believe in Jensen greatly. And he did talk on the last conference call about his own ethernet networking space prize launching new spectrum acts and end offering design for AI optimized networking. And I started thinking, well, are you friend? Are you partner? Are you competitor with NVIDIA? Well, I just want to say to Jensen personally and of course, NVIDIA as a company, we are first friends. You know, majority of his business, we don't compete with it at all. Of course, there's about 1% of his business that may be overlapped with our business, but I would hardly call 1% anything but friendship and slight overlap. So we'll compete where we have to, but we're friends for most part. Now, people say to me, wait a second, this is Broadcom, which happens to be a position like Justin. Are they competitors? I see them as being actually key cogs with you. I don't know, I think that might be a good way to put it. I think one of the beauties of aristos differentiation has not only been our operating system, but working with merchant silicon chips. Broadcom being one of the best portfolios we've seen in the industry. We certainly work with all of them, but we have done our most work with Broadcom. So again, a case of a great partner and friend. Now, a lot of people care about momentum, I'm more caring about value, but you give us both because you've been buying back stock, which tells me that, of course, the stock is above what you bought back, but also the visibility you had. In November, I know that you felt the things were a little bit murky. The view that you gave in that recent quarter made me feel like, you know what, you have more visibility than most companies right now in technology. Yeah, I think I feel a little blessed there. In November, we were kind of wondering, is the cloud going to pivot to AI? Does that mean they spent less on cloud? And I think the entire cloud CapEx was still a little bit of a question mark. But today, I'm most proud to say we have momentum in three sectors. The enterprise, including the campus, the specialty cloud providers who are building some of their own specialized workloads, and then, of course, the core cloud titans and AI titans. I think our visibility has gotten good across all three, and it gives us a great deal of satisfaction that we can satisfy all three markets appropriately. Which leads me with the thing I wanted to bring up initially that I didn't. I should have. The term "tighten" is fantastic. Now, people tell me when it comes to you or we should just be speaking about meta and Microsoft. And I come back and say that all the titans use you from what I can tell. And that I should be using the term "tighten" and not hyper-scaler. What do you think? Well, I think that you can use your term. I clearly love the word "tighten" so much. I not only use it for cloud. We now have a new class of AI titans coming up. So, whatever the term, I think the most important thing to remember is they are the most demanding customers. M&M, especially. I like candy, but I like M&M as our customers even more. Well, the last thing. You just authorized a new buyback. I am sure there's some people who say, "Well, wait a second. Jim, you think, Jay Shree's so great. You think that the company's so great. They should be building the next big thing." But you are kind of the next big thing, and you still think your stock is cheap obviously with a buyback. You know, I think part of being a growth company and being a responsible company to our shareholders is to keep providing value. One aspect of value is good results and good stock returns. And the other aspect of value is to believe in our own stock. And our last buyback expired, and Chantel, my new CFO, and myself thought this was a perfect time to get another authorization from our Board of Directors. Well, I think that your analysis of what people should look for in a stock is sorely wanting away from you in the technology cohort. It's great to see you stand for so much, and it's good for shareholders as well, for technology and for great leadership. That is Jay Shree Ullal, chair, presence here at the Ritzi Network, the civil's A-N-E-T. They just bought back in time to stock. I think maybe you should join it. Mad money's back, it feels great. Coming up. Kramer quenches your thirst for stocks. It's a battle of the beverages when Mad Money returns. ♪ Breaking news. The Peanut Butter Group and Chocolatey Corp have merged to create PBC Inc. And the byproduct of the merger is the new, delicious, jiff, peanut butter, and chocolate-flavored spread. I got the press release and get this. Critics tried to say it creates a monopoly on cravability. But obviously, it's not illegal to be irresistible. Calling it now, this will revolutionize the snack industry and the contents of my pantry. Visit pbcincorporated.com to try the flavor merger of the century, jiff, PB&C. ♪ As Wall Street finally lost its appetite for the energy-drink stocks, I mean, as you could've just had some stunning performance over the last four years, you think alphabets are big from its 2004 IPO with that 7,090% gain? If you bought Hanson Natural, which is the company that became Monster Beverage at the same time, you can now be up more than 24,000%. Meanwhile, just the last four years, Celsius has rallied more than 4,700%. These things have been incredible winners. I mean, you think that they're AI. You think that they're, I don't know, networking or something. But in March and April, both Monster and Celsius turned to ice cold, along with so many other formerly beloved growth stocks. Monster was down more than 15%, just over a month for stabilizing the low 50s, having the most recent earnings report last Thursday. Celsius plunged over 30% from peak to 12. I was starting to lose failure. But we batted a bit going into this quarter on Tuesday. So when we saw the actual numbers, these declines turned out to be justified. Let's start with Monster, which has given the bears a lot of ammunition over the past year. After the company last reported in late February, the stock shot to a new all-time high in mid-March, but the fourth quarter results actually weren't that good. In fact, they missed one really every night. Monster only rallied in response to the quarter for one reason. They told us that their currency adjusted sales worth and accelerated to 20% in January, which was very impressive. But after the stock peaked and rolled over in March, sentiment quickly turned negative again. They reached a crescendo in April 25th, a week before Monster's first quarter report. When two analysts downgraded the stock on the same day, one of these truest even hit the one with the dreaded double-down way that you hear about. There you go from buy to sell, they don't stop at hold, arguing that marginal expectations were too high. Stock was simply overvalued. So what happened when Monster's quarter of a week ago? You might think they proved the skeptics wrong, because the stock rallied 3% the next day. But that's actually not true. Monster's currency adjusted sales worth came in at 15.6%, which would have been fine, except everyone got excited about that 20% quote number for January. Meaning there was a major de-sells, we call it deceleration in February and March. That sales were in line, the gross margin proved a bit year over year, but Monster's operating expenses were also quite a bit higher than expected, and these guys missed on all the earnings lines. While Monster doesn't give much formal guidance, the company did disclose the currency adjusted sales through by 12.9% in April. Clearly, things are slowing down. I didn't like that. All at all, not good. So why did the stock rally in response to the quarter? Two reasons. First, expectations were relatively low going into the quarter, and the headline numbers weren't horrible. Even if I can't call them good either. Second, Monster announced, and this was really interesting, a modified Dutch auction-style buyback for up to $3 billion of its own stock. Notice that those stocks are very undervalued, which is, in fact, a chunk of change for a $57 billion company. That said, we're throwing both co-CEOs and tend to sell some of their shares back to the company. By itself, insider selling doesn't necessarily mean anything, but it's definitely not a positive sign. Take away the buyback announcement, and I think Monster would have sold off a lot. Celsius, though, is different. From mid-March to late April, the stock was more than 30% of its value, which was breathtaking. That was largely because Celsius announced an amended distribution agreement with PepsiCo, which they already had an existing agreement with, and it says to quote, and I'm going to quote it here. It's very little confusing. I was confused when it came out. Instead of eyes and compensate, the distributor for its continued focus on the end actions to support, quote, end quote, Celsius products. Nobody knew exactly what that meant. I sure didn't, but the analysts assumed that more compensation for PepsiCo's bad news for Celsius. This stock actually dropped 8.5% of the news as people sold first to ask questions later. Fast forward to Tuesday morning when Celsius reported its first quarter results. At first glance, they looked like a mixed quarter. This company posted a substantial revenue miss. They did under $356 million in sales when Wall Street was looking for $390 million, but the margins were fantastic. Celsius is gross margin expanded by 740 basis points of your rear, much higher than expected, which shows in with 7 cent earnings beat off 27 basis. I like that. These guys had 108% earnings per share going through over a year. Now in the college school, Madras said the revenue hit came from, I quote, inventory movement saying, quote, it's so hard to understand. For their largest trip here, which is PepsiCo, which again, I told it owns a stake in this company. Long story short, Pepsi had a big restock in the first quarter of last year. It didn't repeat itself this year. Celsius also indicated that PepsiCo plans to keep its inventory tighter this year. That's not great news, especially since we don't know how long this will last, but it's a legitimate explanation for the revenue shortfall and crucially, it's got nothing to do with demand, which is what I care about. Once they know it's updated, their forecast will account for PepsiCo's planned inventory changes. I bet Celsius will be just fine going forward, because other than that one issue, this is real good. Although Celsius doesn't give much in the way of formal guidance, management reiterated previously stated goal of getting their four-year gross margins to the high 40s. Perhaps that was a disappointment because their first quarter gross margins was in the low 50s. But the CFO earlier that they're taking a conservative approach to forecasting the remainder of the year, thanks to the possibility of rising costs. I get that, I don't see the cost rising. Plus, there are plenty of positives here. Celsius continues to take market share in the energy-trend category, reaching 11.4% by the end of the first quarter. Now, let's up a full point, that's a lot, from the fourth quarter, and up four points from the same point last year. That's huge. By the way, Celsius steadily gains market share. The top two players in this space, Red Bull and Monster, keep losing share. On top of that, management's had an optimistic tone, although they always are optimists, about the spring shelf reset season. Now, that's something we've recently seen about when we're talking about constellation brands, which is expected to see big shelf gains from Medellar this year, thanks to the success last year. Celsius respects big shelf gains, too, possibly the best in the country's history, and once it gains shelf-based, obviously, your numbers can go higher. Finally, Celsius has only just started to expand internationally. Canada's sales began in January, the UK and Ireland last month. France and Australia and New Zealand are all coming out in the fourth quarter. It could be a major source of upside surprise over time. Over his sales miss in PepsiCo's inventory noise, a couple of management's decisions, not to commit to a higher gross margin target for the full year, led to a modestly negative reaction to Celsius' quarter, stock slipping 1.8% on Tuesday. But after looking into the quarter, I'm pretty sanguine about the situation. I guess those are the rest of the street. It's coming out of our view as C-E-L-H shares jumped more than 6% today. I mean, I'm sure there are some people out there who must be thinking that PepsiCo wants to buy the rest of them or something. By the way, if I were PepsiCo, I would want to buy the rest of them, too. It was just a growth category. Hence, here's the bottom line. Mosher saw a small bounce when it reported, but mostly because it also announced a big buyback, I'm not particularly impressed with the latest numbers. Celsius, on the other hand, which a company I've liked for a long time had been on many times, gave us a noisy quarter that mastered true strength of the business. The markets now give me the company credit for the result, but the stock's still down about 18% from its highs. I think this is a very good entry point, even though I don't like it up 6 today. At the end of the day, though, you want to own shares of the company that's taken market share like Celsius, not the ones that are losing share like monster. And I got to tell you, when it comes to taste, which, of course, there's no accounting for, count me in as a Celsius drinker. Only after four cups of coffee. Let's go to Brian in Wisconsin. Brian! Hello, Jim. How you doing? I am doing fine. How you doing, Jim? We're doing good. We're doing good. Thanks for taking a call for all you do. No problem, no. On a con egg, right? You've had a lot of ups and downs and changes over the last eight, ten years. Wondering what your outlook is for CGA? Okay, thank you for the call. Now, here's what I'm going to tell you. Sean Conley has got a decent hand. They're not the greatest brands, but it yields 4.5%. It sells at 11 times earnings. I am never going to criticize anyone for buying with those characteristics. I think you'll be fine. Let's go to Scott in my home state of New Jersey. Scott! Jim Kramer, I've been watching you since you started on television. My, and you're certainly, you might be 70. Yes, I am. All right, good enough. All the wisdom that you've imported. I appreciate that, thank you. Thank you. And how about those fillies, Jim? How about those fillies? Best team in baseball, thank you for mentioning it. Last night loss, but that's okay. They're bringing great joy to my household. Let's put it that way. It sounds like hell. They're bringing great joy to us down here in Marier, Atlanta as well. Oh my God, you must, oh my God, you know, Jeff Marks, my partner in crime. He goes down to Marier all the time. And I used to, I used to be friends with Lucy. I don't know if you know who Lucy is, but. Lucy's right around the corner from me. My girlfriend. Her rear every day, I see it from my filming here. That helps to be a giant elephant that's not making any conclusions. All right, let's get to work. Maybe we get to work. Maybe we stay more focused. I'm sorry. Here we go. Get to work. I've been taking a beating on my CVS stock. What do you think, Jeff? Oh, geez, you know, I think Karen, I think the world of Karen Lynch. I think it yields 5%, but they're in a very hard category. They're trying to make health care work. They're trying to make the small format stores work. They have to deal with the current stores and the problem against Amazon. It may be too much for her to handle, but if she wants to come on and talk, I'm more than welcome because she's cerebral and she's got a plan. So that's my goal, but that's, you know, the jury's still out on that one. All right, guys, when it comes to the energy drink category, which I care about passionately, you want to own shares of Celsius because they're gaining share. Unfortunately, Monster is not gaining share, and I don't know. It's kind of orphaned right here. All right, much more than my name, including a really cool piece that we've worked on about retail REITs. I want you to know which ones are the greatest. You also get some yield. That works all the time. Then I'm focusing on the crux of what's becoming great debate around the Fed's next move. You do not want to miss this one. And of course, oil calls rapid fire tonight's season of the writing round, so stay ready, Kramer. As we've seen more signs of a slowing economy this early season, not to mention clear indications that the Fed's taken notice last week, the bomb market's done what it always does at these moments. Long-term treasury yields have come down. The benchmark 10-year yield is going from 4.7-3-5% on April 25th to less than 4.46% today. This has played a huge bond auction. They're going to crush the market if they weren't such a gracious demand. So what do you do? What's the playbook for a world where long rates are finally coming down thanks to a weaker economy? Like I mentioned last night, this might be a real good moment to buy some real estate investment trust, or REITs for short, because they tend to have behind dividend yields, making them direct competitors of the bomb market when treasury yields go down, and these dividend rates get more attractive. REITs can, of course, have actual capital appreciation of these levels, not just fixed income. Now the REITs were clobbered in the first four months of the years, rates rebounded, and the retail REITs were hit particularly hard, because everyone was worried that the consumers tapped out. But if REITs keep going in the right direction, while considering those brown truths I keep talking about, they will, then this could be the perfect time for you to get some retail REIT exposure, providing you go with the right ones, which is why I'm going to go over the right ones. First, if you're worried about an overstretch consumer, I want you to consider Tanger. That's the old Tanger factory outlet stores. Tanger is the chain of outlet centers with incredible parties. We have them on the show last week. As Tanger, CEO Stephen Yoloff can say much better than I, and we'll just take a look. I think what makes the shopping experience in the outlet center so exciting for the consumer is that customer is aspirational. That's a customer that might come in thinking that they can only afford a certain price point, but if they're in that outlet environment, all brands become accessible to them because they're on sale every day. So you might have thought that coach or Kate Spade or Michael Kors was out of reach, but when you walk into that store because the sign outside says, "Everyday pricing, 40% off, all of a sudden it becomes reachable." And you might have aspired to buy into that product your entire life, and now you have the opportunity to do so in our portfolio. Glad to send the FDCs over to one of those Tanger outlets. Alright, anyway. Tanger's outlet centers still have strong traffic and retailers can't get enough of those locations. In fact, these guys have an extremely high-quality problem. The demand for space in Tanger's center is currently so strong that the company had to change the strategy to get this. Previously, they almost always resigned old tenants whose leases were expiring. Maybe they put through a small rent increase, but the tenant rarely got kicked out. Now, though, Tanger's being more selective. They won't renew the lease for underperforming tenants anymore if they can find someone better. Someone whose stores could boost traffic for the rest of the outlet center? That might temporarily lead to lower occupancy rates in your term. But long term, I think it's a really good strategy. Either way, you know Tanger's in good shape when they're practically bidding wars for these outlet spaces. That said, stock actually got hit after Tanger reported a seemingly mixed quarter a little over a week ago, investors focused on the slightly lower than expected occupancy rate while ignoring robust funds from operations, the reed equivalent of earnings, and a terrific 5.2% increase same-store sales net income. That was nice. Look, I think the quarter is really good, and the stocks entice at these levels. It's got a really 4% yield here, which I'm betting will get more enticings this lower economy pushes buying yields lower. This is a terrific growth story. What's next? Okay, have a good old Simon property group. The number one owner of higher-end mole properties in America increases the world. Simon's been written off repeatedly over the past couple of decades. Why? Because, of course, everyone thinks the mole's dead. I know the mole ain't what it used to be, but reports of its demise are wildly overstated, particularly Simon property's mole. And this company's done from very creative things to keep his moles breathing and not thriving. Back during the pandemic, when quite a few retailers went under, thanks to lockdowns, Simon, the landlord, partnered with Authentic Brands Group to buy up some better brands out of bankruptcy. The goal is to simply keep their tenants alive. They're committed with Aeropostol, Brooks Brothers, Eddie Bauer, Forever 21, Nordica, Reebok, and even J.C. Petty in a separate deal. Yeah, they're still around. Just last month, Simon did something very similar, buying up express with some partners after file for bankruptcy. That prevented Simon from being hit with a huge wave of vacancies at the worst possible time. You hate going to the mole, but it's just all those blank spaces, right? It makes you feel kind of like, "What am I doing here?" And once we can't know the pandemic, these retailers can right back, turning out to be great investments. Over the past few quarters, Simon has been opportunistically selling their steaks in these brands, locking in major profits to the process. Now, these guys have poured a stellar quarter on Monday after the close, really good. Simon property generated $3.56 of funds from operations per share, up to 30% year of year. Wall Street was only looking for $2.81. It's nice, big. They raised it for your funds from operations for a case substantially, too. The big beat happened because Simon made a bundle selling their remaining position in the authentic Brands Group, which they got as part of the retail acquisition joint venture, and even putting that aside, the core business is doing quite well. Better than expected Oxfordview rate, better than expected base minimum rent per square foot, not to mention 3.7% same-floor sales net operating income growth. So in response, people realize that sometimes people are slow to understand these companies, but this time this stock rally immediately, 2.4%. It's still basically trading over what it was last December. Plus, Simon currently sports a boundable 5.4% dividend yield, and they tend to raise their payout frequently. They've done it four times in the last five quarters. Now, I wouldn't be a buyer right here. I think all systems are good for David Simon's company. You want to own this stock. Income, even some good. Finally, there's federal reality. Look, we had them on last night. These guys own mainly mixed-use properties in wealthy suburbs along the coast. What can I say about this outfit? Every time I speak to CEO Don Wood, I come away impressed, and we've been speaking to him for almost 20 years. Federal reality's embrace of mixed-use properties means their real estate often at the center of any given community. Their focus on rich suburbs means you don't have to worry about cash-traps, lower income consumers. When federal reality reported last Thursday, it was right down the middle of the fairway, okay, with in-line funds from operations that have spoiled the increase to their full-year funds from operations, guidance, and an in-line occupancy rate. Most encouragingly, though, federal reality reported record levels of leasing in the first quarter, and they're seeing big rent increases when they sign new tenants. Meanwhile, the company pays you four and a quarter percent dividend yield, and this is the most consistent pair in the entire read space. 56 consecutive years of dividend boost. How about that, and world of brown shoots? That kind of dependability should earn the stock of premium multiple, which is why I like federal reality. You want consistency in discipline? Federal reality is for you, so let me give you the bottom line here. If you believe that rates are ultimately headed lower this year and that the clients finally begun, then you might think about buying a read. You want read exposure because dividend stocks are about to get more attractive. Right now, I think you're getting some good deals on quality retail merchandise, like Tanger, where you've got all those great outlet brands, including some that are trying to merge with each other, and federal reality and, yes, Simon property. Now, I bet any one of these is going to be good for your portfolio. They are the best in the retail read industry. You know what? They may be the best in the entire read business itself. They may have money back after the break. When we return, master the markets, one stock at a time. The lightning round is up next. It is time! I'm talking like I'm going to do this right now. Of course, it's here in this talk. I'm going to do another horse talk to him. My temperance for you. What is that? And then the lighting up is over. Are you ready, ski, dad? I'm going to the light round. I'm going to do another horse. I'm going to do another horse. 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I'm going to do another horse. Do you want to know the feds next move? You need to figure out the consumers feeling poor or if people are just moving on from their post-pandemic behavior, turning to normalcy. Let me explain. We came to have a look at these days, but COVID changed practically everything. Worked from home went from being an exigency to being an exceptional alternative to working in the office. People put off non-urgent surgery for fear that they might come down with COVID. So many people held off on necessary procedures that were still getting a surgery boom as they by catch up. But there's been nothing like what happened to travel. During the pandemic, we recognized that life is too short. Many of us went a little stir crazy, which led to a travel boom once we got over COVID. Every flight was full. Expedient and book-y holies put up amazing numbers. The cost of motel room skyrocketed and Airbnb's numbers weren't as the cheap alternative. Yeah, let's all be getting done wine. Many people are coming back to the office more than two or three days a week. We're not building new home offices anymore. The hospitals are jammed. The biggest normalization though, as Wall Street calls it, might be in travel. And it's checking investors to the core. Partly a day goes by where we don't hear a report that travel is cool. Today we got two. First high cut its forecast going forward. Then Airbnb shaded things down for this current quarter. Concerned that business might not be as robust as people expected. Both stocks were hit hard at the open. Today a little higher later recovered because they were part of what I guess Wall Street still calls that revenge travel or long-term money short on time thesis as I do. Now I've got to wonder whether Disney, which reported a smaller dip in exploitation for theme park visitations and Expedia, which blamed its weakness on tech problems, are really confirming that domestic travel slowdown that I see. Booking holdings were saw some slowing in domestic travel, demand-blended on normalization. The post-COVID period is over. And the travel slowdown started in the United States. We were the first ones to beat the pandemic. We're probably finishing China because they were the last. China's still traveling for now, which is why wind resorts could deliver terrific numbers from its Macau business. That is one reason why we own it for the travel trust. But what's somewhere yesterday is still like it here. As I see it, where there's smoke, while there's fire. Travel has peaked. But I'm not willing to say that the consumer has peaked or has done spending. We have a mole. It's a moment where kind of in time where there may be nothing compelling to do. Well soon get me told, or at least I feel that we find nothing great, nothing bad. We saw Costco's numbers today and they were strong. But let's not forget that Costco's the bargain hunters have it. Now in this short run, it doesn't matter whether the consumers' travel or not. What matters is whether there's less spending on travel and whether the Fed notices it. Taking it as one more sign that consumers being less extravagant, which is what leads to inflation. A normalized consumer is one who's reacting to higher prices with rationality. Choosing not to pay for things when they get too expensive, going on strike. And that's how prices come down. When prices come down, we get less inflation. And with less inflation, the Fed can at last cut interest rates. It's called the business cycle and it will never be repealed, even by COVID. So I can only conclude that while the companies that thrive on travel may be heard, it's about time the consumer went on strike. In the end, only the consumer controlled pricing by simply choosing not to spend as aggressively. And if you're in J-PAL, that is exactly what you want to see. I like to say this always is more market summer. And I'm probably trying to find it just for you right here on Mad Money. I'm Jim Kramer. See you tomorrow. Last call starts now. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates. And may have been previously disseminated by Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable. But neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy. And it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com/madmoneydisclaimer. Before they were Team USA, they were kids, trading recess for reps, and summer vacations for travel tournaments. All for one chance at gold. Stream the Olympic Games with fast Wi-Fi wherever you go on XFINITY mobile. Get the fastest connection to Paris with XFINITY, proud partner of Team USA. Now through September 21st, XFINITY internet customers can buy one unlimited line and get one free for a year. Learn more at XFINITY.com/TeamUSA. Restrictions apply XFINITY internet service and two no unlimited lines required. and reduce speeds of 30 gigabytes of usage per line. Data threshold in a very--