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 5/14/24
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 distribution distribution my mission is simple to make you money I'm here to level the playing field for all investors there's always a more market summer and I promise to help you find it man money starts now hey I'm Kramer welcome at money welcome at money I'll be all right friends just trying to make little money over here my job not to sit or tame but dedicate to teach you call me one eight hundred seven four three CBC tweet me at Jim Kramer if the federal government is giving money away I think you should take it today uncle sand decided to give a lot of money away it for every people took advantage of the opportunity well you couldn't tell from the average down gaining 127 points that's been advancing 0.48 percent NASA coming 0.75 percent to a new all-time record but today the market was consumed by smaller investors buying shares and lousy meme stocks like GameStop and AMC they're betting that like in January 2021 the short sellers won't be able to take the paint the house of and when that happens this shorts need to go buy and stop creating what's known as a short squeeze to fulfill stocks the ever dizzying heights even much higher than we saw today now we don't know when that ends but it does end eventually and it doesn't end well sure the last time we did this in 2021 being many people holding a deflated bag I want that later from now though I want to talk about the big opportunity nobody seemed to care about Washington's give them money away where in a fact sheet they hit my desk from the White House title quote President Biden takes action to protect American workers and businesses from China's unfair trading practices wow here it comes the gist the president believes that the Chinese are I'm gonna quote again flooding global markets with artificially low price exports and quotes so Biden's using his power to slap tariffs on an 18 billion dollars in exports from China that's meaningful normally once that kind of news gets published any stock that could conceitly benefit with sewer but you see today's in bet today investors were so drawn to illusory short busting opportunities that they overlook these very real tariff opportunities there are now a host of industries that are about to be protected by bigger tariffs on Chinese exports and it will help their sales and earnings for years now some of them like steel don't really matter because our government has already done a real good job shutting down the Chinese steel but there are others where these tariffs boost are a very big deal let's start with the biggest single winner that nobody cared about always and minor now the government's slapping 25% tariffs on Chinese face master surgical loves previously the tariff was 0 to 7.5% for this PPE I went to minors the dominant American player in the space so it can probably take some share here now the stock has walled its eyes after poorly received quarter and it seems very viable and no one cared next beneficiary makers of syringes and needles China's being hit with a 50% tariff on these medical supplies up from zero like massing gloves Chinese producers have really come after these components who wins from this I happen to like Becht and Dickinson a terrific medical device coming to be spent some time with when we were out at JP Morgan Healthcare Conference in San Francisco this year Becht and Dickinson's got a significant organic growth superior operating capital recently raised guidance the stock was actually down a couple of bucks today sure you can say needles are in a big business for them that they makes much more highly valued devices that's true but more customers will be driven to the company and I think they'll see less Chinese syringe competition especially when it comes to any new injectables like the GOP there's one weight loss drugs either way it is a win for a very undervalued stock how about solar cells the government raised tariffs on Chinese solar cells from 25 to 50% and the market reacted totally wrong that's right the worst solar stocks the money losing home solar plays that depend on those cheap Chinese panels all rally because they also have a huge short position the memes just bought anything with an outsized large short position the mister making memesers they strike again but there's a real solar company a made in the USA solar company first solar that's the clear winner in this crazy market the stock actually fell to any aboves at these levels first solar cells were at nine times X years earnings estimates with tremendous growth rate and this is before we factor in the impact of the tariffs on some of their major competitors now I think it's an out and out winner part of part of the world where solar might be the dominant power solution by 2030 stay with us a year from next tractor where I get that number now while this this was more diffuse our government's doubling the tariff on legacy semiconductors from 25% to 50% legacy can be a slippery term when covid rage we knew that our country couldn't produce enough of the older larger form factor chips not the state-of-the-art and video kind of chips making us hostage the foreign suppliers and then the supply chains got busted so this is part of a larger strategy brings him and dr manufacturing back home now here's one where the market actually got it right as Texas instruments the biggest legacy chip bigger solid stock jump three bucks to a new 52 week holiday too late to buy I think so same with microchip technology another legacy chip market and analog devices one I really like to hit a 52 week high because legacy is a slippery term there's some edge cases though I you might be on semi and that's a potential winner they made hard to get auto chips during the pandemic might be worth anyone now that stocks got so low the biggest winners though will be the American auto makers there's a widespread belief that our car companies are going to be roadkill once China's auto industry gets here we got that from who what none of the automakers themselves especially forging executive chairman bill for it he's been the most Adam about the existential threat of government subsidized competition with the PRC one CNN bill for its head about eleven months ago the Chinese and I quote developed very quickly and they developed them in large scale and now they're exporting them end quote he went on to say quote they're not here but they'll come here we think at some point we need to be ready and we are getting ready end quote hey with a hundred percent tariff on Chinese Otis Ford doesn't need to be all that ready it can focus on other things that actually make money now Biden didn't outright ban Chinese vehicles but he basically doubled their price and if we're can't big that well they might as well throw in the towel if we get a firm commitment from the government and we'll stop the import of any Chinese car made in Mexico or at least not the same hundred percent tariff on that well that would be a goal one way to closing the back door from China to here not only does this terror protected American car companies from cheap Chinese electric vehicles it also means that the regular vehicles their regular cars and trucks and hybrids will benefit too I like this policy but even if you hate it it's a clear giveaway to Ford and GM and you kind of cash it only give away when you get it it's your reason GM and Ford stock sell at the bottom of the SB 500 barrel is because of this existential Chinese threat whenever China's been able to them loud that don't merchandise they've destroyed pricing and destroyed companies that won't happen here now not with these tariffs I've been a broken record on Ford I'm particularly aware of that and we own it for the travel trust it's got a 4.83% yield for heaven's sake if we're I can just curtail the immense losses electric vehicles I mean something like 150,000 per car well then it's much easier with the new tariffs and the stock can and will go higher even though it seems to be as I told my partner David Faber epoxy 12 and I can't help that home deep but I'm not that great a quarter why do I believe these ideas can work because this market cannot walk and chew gum at the same time today it had short busting when it's mine it can't handle another thought like the winners when the new tariff schedules this gave you hey maybe by tomorrow people realize that first solar is the winner and the little solar is the losers maybe they'll realize that Owen's a minor makes personal protective equipment or Beckton taking symbol boost its margins and syringes immediately bottom line that's how I like to pick stocks but you can just decide that if it doesn't have a big short position it's not worth your time that's the case though you know what you'd be better you better hope that hello Kitty comes warm back with a litter box with some fresh stuff dumped in it mmm that works Donna in New Jersey Donna hello Jim it's Donna from New Jersey I thought so what's up hey Jim Adobe dropped in February and it hasn't been over five 20 since March no although targets are over 600 Adobe looks dead in the water now earnings are due June 13 Jim what do I do sound now or no no no it's really the cheapest I've seen and a lot of this has been down 20% fear lot of this is because of belief that they weren't able to buy this kind of a and that they have a too expensive off sweet offering and have to cut the price of the sweet offering you know shot in Orion is going to figure this one out now I don't know how he's going to figure out I don't have an answer for him but I'm betting I'm not running Adobe and I know that he's a smart person and therefore I'm backing with him at the level 475 give or take like 10 or 15 points so there I go there I'm saying that to Donna from New Jersey now let's go to aryl in Indiana aryl hey Jim why has the profit to earnings has remained so flat compared to other stocks when the stock market has been doing so well well of which stock LNG oh you know I think LNG look okay so this is very complicated business right now LNG is we're trying to figure out whether they'll be able to build more more plants we do know that the president said you know we're gonna put a pause to 2028 it's wrecked the whole industry it's as if the president somehow felt that it wouldn't matter and the president was just dead wrong now okay they're like natural gas it doesn't matter he destroyed the growth industry and I think it was shortsighted because why because I like the fact that our allies were depending on our natural gas we should have helped them instead of doing something that I think is going to ultimately help the Russians all right this market cannot walk and chew gum at the same time today had short busting on its mind not making money maybe we'll get back to real business tomorrow oh man money tonight Stanley Michael Decker got hit after earnings and with the stock returning to pre-report levels I said that was CEO pressure up the company ringing the opening bell then next track reported earnings after the bell and I'm running through the numbers with the CEO and CBC is out with their disruptor 50 list today highlighting some of the future about that highly some of the innovative private companies that are changing the world so I'm talking with number 22 chime to see how the digital only financial providers shaking up the space I suggest you 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 dot-com or give us a call at 1-800-743 CNBC miss something head to mad money dot CNBC dot-com 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 dot-com slash mad money just go to indeed dot-com slash mad money right now and support this show by saying you heard about indeed on this podcast indeed dot-com slash mad money terms and conditions apply need to hire you need indeed if like me you think business has been slowing in the federal only have to cut interest rates then you need to consider what works when rates come down take Stanley black and decker that's the toolmaker reported what I thought was a solid quarter a week ago but Wall Street didn't really care for in the suck out clobber I told you we're buying this one all the way down for the travel trust at the time which has been a great decision in retrospect because the stocks down roughly back to where it was before the quarter doesn't hurt that this is a very well-run company a sudden great deal to cut cost from these years now this morning Stanley black and decker rang the opening bell here at the New York Stock Exchange to celebrate the hundredth birthday of the wall it's yellow branded professional division and a little later I got a chance to sit down with Donald Allen he's the president CEO of Stanley black and decker take a walk done not many companies can withstand the test of time but here's the wall a hundred years tell us how it happened and how important this product is what what yeah we we've actually had a great morning here at the stock exchange gym we were celebrating the hundred year anniversary of the Walt and it goes back to the individual that created his name is Raymond DeWalt and he had really three tenants that he focused on one was innovative products safety and then productivity and those are the three things that he said I wanted to provide to trades people so they could be successful on the job site and that's what resonates today but now we have an amazing powerful brand a hundred years later that allows us to continue to bring those three tenants to the marketplace I think it's important to point out that at a time where we know that housing is not booming and we know that rates are high that there are things you can do you can innovate create some new products you can make it so that you're more streamlined and build up gross margins takes care these are all what you're doing right now that's right and so we've you know announced a transformation program a couple years ago as you're very well familiar with first focus was how do we get our gross margin rates back up as we went to that highly inflationary cycle pricing in the marketplace streamline the supply chain and as we exit this year we'll be around 30% for gross margins as a company and getting our path closer to 32 33% by the end of next year the other thing that we're doing is like how do we gain share in a challenging market because you know the market is in pockets the consumer markets down pro markets still pretty healthy the wall goes to the pro which is fantastic and so managing that with our different brands and say okay we can we can find a way to outperform the market in 2024 and then as the market gets stronger as whatever happens in the future whether it's lower interest rates other types of activities that occur this company is going to be even better prepared to take advantage of that not only from a growth perspective but also a profitability one of the reasons why we have such respect for your company in the club is that you pay a substantial dividend while we're waiting for those things to happen right and we have to understand that you're dividend aristocrat we should not be concerned that the dividend is so high you should not I mean at the obviously there's a little bit higher debt leverage on a balance sheet we would like we'll be working on bringing that down by the end of next year two levels that would support the current credit ratings we have we think the dividends an incredibly important story to our shareholders and it has been for many many years in our company and so we want to make sure that we sustain that dividend hopefully increase it as time goes on here as earnings and cash flow continues to grow but you know I think it's something that you know people can look at it and say I'm gonna get a four to five percent yield on a dividend today that might be challenging to find that type of return anywhere else I think so now you do have optionality you just sold a division and merely paid down debt which I just love and you do have a faster division aerospace faster is just a fantastic business auto not that great right now and I would ask you do you want to sell that order the fact is that generates a gigantic amount of cash flow yeah I mean right now it's generating about 35% of the company's cash flow it's a significant part of our EBITDA as well it's a great business to your point I mean there's a piece of it that's tied to aerospace and you know wide-body planes in particular in the construction of them and then there's the automotive piece although the market's not great right now we've positioned that business well for the ship that's happening from gas powered cars to EV and so we're in both places so as those as that market continues to shift or in some cases it might be 10 years or more where we have both of these types of products in the market and we're able to provide the fasteners to both of them it could be explosive now a lot of people see Home Depot report today and some real federalist disappointing again they have they're constrained by the Fed Home Depot is 15% Lowe's is 15% I think a lot of people perceive that really this is your whole business but you're worldwide there are areas of the world that are very strong so just to look at you and say you know what you really are Home Depot is is pretty much a fatuous way to look at it's Stanley Bakindou I agree I mean obviously Home Depot and Lowe's are incredibly important customers for us and the results that we saw from Home Depot actually were pretty much what I thought would happen because they were not they were relatively consistent with our results for a cute one and so there wasn't anything really surprising in that this morning but you're right I mean we have 70% of the rest of the company that we sell through all kinds of other channels in North America we have a European business that's about 30% 35% of the total revenue it's significant and then we have emerging markets and so we're no we're like 60 to 65 countries around the world and we're able to use that amazing brand like the wall in all these different areas and then you supplement it with the Stanley brand and the black and deco brand in some countries and then obviously the craftsman brand is great here in the United States. Now I think that we should talk about the transformation because what you're doing is really making so you're making more money in your sale sales and that is so often important because you do have a lot of leverage if we can get that done not leverage debt but the ability to be able to make a lot more per per sale if things go right. Yeah you're right and I think you know when we we started this transformation two years ago we probably felt at the time that the market would cover a little faster than it actually has right but the good news is that as we built this journey to how do we get our gross margins to 35% and I think as we get as we exit 25 we're going to be very close to that number if not at that number that's without really very little growth and so we're not really benefiting from that leverage impact and when this market comes back well it's gonna print money in a very significant way and I feel really proud of what the team has done to position ourselves to take advantage of this whenever it happens in 25 or 26. Well I can't resist in the time we have the moment early I always want to see new products what's going on the wall but please give us something for for Stanley and for Black and Decker because we know that right now you're starting to think about already and have to be ready for the holiday season what are you looking at yeah well I think the wall you know we launched a dual power shift at the world of concrete show in January which is an amazing battery set set of battery powered tools that serve the professional that works on concrete construction and it was a significant launch we had hundreds of users there trying the tools and eventually buying the tools in the future that's another wave of innovation and develop craftsman we continue to look at opportunities both in the outdoor space in the garage space so that's really where craftsman is strong and it can be a do it yourself or in the garage or it can actually be an auto mechanic and how do we continue to innovate some of the power tools the mechanic tools in that particular space and of course storage cabinets as well Black and Decker we're working on some interesting things for this holiday season that's that's still to be well okay we'll keep it under wraps which is important but I want to thank you so much on a very big hundredth anniversary to Walt day at Staun Allen president CEO of Stanley Black and Decker and yes the CMC investing club does have a big position because we think it's a coil spring good dividend paid away and then last off and race coming up catching rays Kramer shines a light on a solar play with a tech twist next support for this program is provided by Chevron demand for energy is projected to continue rising in the future to help keep up Chevron is increasing their US oil and gas production and they're innovating to help do it responsibly across their operations including their Gulf of Mexico facilities which are some of the world's lowest carbon intensity operations helping supply energy that's affordable reliable and ever cleaner that's energy in progress learn more at chevron.com/meetingdemand what are you doing with these results next track right after the bell the solar technology plate that helps solar panels move with the Sun maximize their energy output or to protect them during bib weather here's this document been red hot over in the year before selling off hard March and April I'll virtually every other close time but when next track reported for the close today it delivered another excellent quarter talking a healthy revenue beat with much better than expect the earnings and cash flow a real blowout like I thought the guidance for the company was conservative let's take a close look at the quarter I'm checking with Dan sugar he's aka show they like to call him the fan or CEO of next tracker to get a better real this is way to welcome back to my buddy Jim thanks so much for your interest in next tracker in our solar sector of course now you had another strong quarter and what we want to do is just maybe get some of the key drivers of how this can be so much better than expect well first of all Jim the economics have never been stronger for solar solar so lowest cost way to generate power on most of the planet and we're seeing demand accelerate both in the US and abroad and for next tracker specifically we have differentiated products that make more energy our lower cost operate reduce risk for owners so we're just seeing a lot of very strong demand which is why we've been able to set our guidance up for next year now the president today put in some tariffs for solar panels and I wanted to know whether that's going to make it less economic for your clients to do solar the tariffs that were put in place don't impact our utility scale solar and are factored into our plan so they they're really more focused on the EV industry and other industries Jim okay good to know because I don't want to feel like that what's happening is whatever you do good they take away certainly don't want that now I also was looking at the backlog it's at four billion dollars now what is it I mean that's an incredible growth since we saw you last tell us where you're getting that business from because it's obviously not just the United States right that's correct Jim we're serving today almost 40 countries around the world including the US the US is our strongest market but we're seeing very strong growth and South America like Australia and Oceania Africa the Middle East and India and our backlog basically doubled in two years a year ago it was 2.6 billion a year before that it was about one billion so now we're at four billion dollars a backlog for the company so what we're seeing is tremendous growth in the sector and next trackers continued we've had about a 30% compound annually growth for five or six years in a row up till now of any great use cases so the people understand exactly what you do situations where we would normally not expect solar to kick in because you don't want me always here oh solar is really good but it can't be baseline it's never going to be that it's too intermittent and it's like the way they like to slide the solar industry I know when it's started total cuts of the Sun not your best day but I have to admit that the idea that this thing is this intermittent as people say it's just people trying to knock down solar you nailed it there because battery costs have dropped so much we're seeing batteries associated with most of the projects that were involved with and in fact if you look at solar and solar plus storage which really means batteries if you look just in the United States there's over 7,000 projects that have applied for interconnection to the grid and in total that amount of capacity is about 1,500 gigawatts which is more than the 1,300 gigawatts of existing capacity in the US grid so because the batteries allow the power to be there when you really need it we're just seeing solar and solar plus storage dwarf legacy energy technology in fact there's zero new nuclear zero new coal in the interconnection queue and solar and storage have 25 times more interconnection positions to get hooked up to the grid than gas does. Well don't you think it's interesting that I took your numbers from your grid which showed that maybe we could be 25% solar or 25% wind in 2030 then everybody seems to think that you're being too aggressive why are you sticking by your guns on that? Well it's not just next tracker Jim the US energy information administration the governments know how plays for what's going to happen with energy which historically has been very conservative on solar has forecast a 26% annually compound on growth and within 10 years solar will be the number one source of energy in the US grid and that's born out by our five to six years of 30% growth so we see it's happening and it's driven by fundamental economics where solar is the lowest cost way to generate power on most places on earth in fact the systems that we're seeing going in a day are about one-tenth the cost of systems 15 years ago she's that's so it's really about technology and fundamental economics. Okay now I know you've got this great graph in one of your decks. Next class is improving solutions to mitigate severe weather. Weather events make up sixty two percent of all solar losses hail 54% then I read this article about how in a renewable energy world not my usual publication then you actually had a hailstorm in Texas that did damage some of your solar panels. Care to discuss that because I know that you said you taught me that hail is a huge problem for solar. Yeah we're seeing extreme weather on the rise across the world and in what we call Hurricane and Hail Alley from Texas up through up through the Pacific Midwest. We had a customer about three or four years ago that had a hail event and we developed a hail stowing technology. In this year we saw on 27 projects that our hail stow technology was triggered we talked to the owners of all those plants and there's no reported damage on them. So you can't mitigate mitigate every situation every time but there are technologies out there to help renewable energy perform in a wide variety of conditions. Okay now how much of your business is because of companies like Microsoft and Alphabet Google saying look guys unless you use next track or something like that we're not going to give you the business I'm not going to put our data centers near you. How much are they recommenders for next track? Well there's both a desire to have carbon free and environmentally preferred generation but there's also a need for power Jim. Right. What we've seen in the United States is the power consumption was fairly flat for about 15 years but it's really accelerated as the result of re-industrialization, electrification of appliances like vehicles and data centers and so these data centers what they just need they need energy and they want renewable energy because it's lower cost and and more environmentally preferred. So we definitely see the growth of data centers as a huge demand generator both for the grid and also for the renewable power sector. Well that's terrific and it continues why I think that you're able to blow away the numbers. I like the conservative guides. I don't want you to start raising numbers get ahead of everybody. That's smart. Anyway that's Dan Shugar and Dan Shugar is the founder and CEO of Next Riker NXT. Congratulations on a great quarter. You're really putting the numbers away. Thanks very much Jim. Absolutely. May have money's back in for the break. Coming up dive on in to a disruptor. Does this fintech favorite ring-a-bell find out? Next. Every year our network comes out with the CMBC disruptor 50 list. It's a collection of revolutionary startups that are reinventing entire industries. Even though these companies aren't publicly traded many of them have eyes on coming public in the future. Many others can tell us a great deal about what the future looks like which brings me to Chime Financial. This is number 22 on this year's disruptor 50 rankings. Here's a financial technology company that partners with regional banks. I'm sorry fee-free mobile banking services. Now it's very much aimed at people who've been I think left behind by the current banking system. So tonight I want to take a closer look with Chris Britt. He's the co-founder and CEO of Chime to learn more. Mr. Britt welcome to make money. Thanks Jim. Okay so when I was looking at all the background information what it seemed to me was that you're taking care of the huge number of people in this country who don't have much and paycheck to paycheck is their watchwork. Yeah it approximately two-thirds of America lives paycheck to paycheck and so we tried to create a new model for consumer banking that doesn't rely on fees and help this segment of the population with their most acute needs which is a really around short-term credit extension credit building and avoiding fees and it's really working well. Now I would say that most of these people from my own experience aren't really wanted at the bank which they can't make enough money up these people. Yeah look 80% of Americans make under $100,000 a year so it's a huge segment of America about 150 million people live paycheck to paycheck. So it's a massive segment and I think if you think about how banks go to market how they make money and checking account business it's really a NIM based business model. What's required for NIM? You need consumers with large deposits and you need people that are credit worthy in it in a world that the credit box for who they're going to give loans and credit to is becoming smaller and smaller. So we've taken a totally different approach and we partner with these banks to give fee-free checking accounts and we don't rely on fees we really monetize their relationships through transactions. So when the Chime member uses their card for everyday purchases in our case over 40 transactions a month on average we were able to monetize that way and what's great about it it's very aligned with the consumer. We only monetize the relationship if they keep us top of wallet and think of us every day. Well what I also like is it's got this plan where people can access their money a little earlier than everybody else because everyone else is so these brick and mortar happens all they want to do is try to make as much money every little way they can including the float that is not what you do. Yeah they make a lot of money from fees we help with short term liquidity in a variety of ways we were the first company to offer two-day early access to your paycheck when you get direct deposit. We also were the first to offer up to $200 of fee-free overdraft and now we're launching a new product called MyPay and with MyPay consumers that sign up for a Chime account you can sign up right now we just are launching the waitlist for this new product. Right now right now all of your viewers can come on. No I'm dead you're not seeing her show I appreciate that. So you sign up you get direct deposit of your paycheck and then if you think about the way payroll works in America about 70% of Americans get paid every two weeks and so the question is if you've worked two three four days in the week why should you lend your employer the money that you've earned so now with this Chime MyPay service anytime into the to the pay period you can click access to that paycheck on demand up to five up to five hundred dollars it's a there's a totally fee-free option that you get access to in one to two days usually in 24 hours and then we also have an option you can get it instantly for two bucks so less than the price of a out-of-network ATM fee. Okay when I go to when I got over my mom grew up in a tough neighborhood now Philadelphia every other block is a check cashing outfit. Now I can't see why you would ever have to go to a check cash or if your bank's there. Well we'd love to get rid of the payday lending. Do you record this? By the way do you record that is anti-the luvian it doesn't belong anymore. Well we see this as a totally different products right we aren't just doing a one-off transaction to someone we're in the business of developing primary account relationships in other words people that get ongoing direct deposit. Right. And when we do that we're able to take risks on people that otherwise may not deemed to be you know worth taking a risk on by some traditional institutions and we don't have to charge high fees because we're able to monetize the relationships through this primary direct deposit relationship that we enjoy with the majority of our members actually use us in that way. Well how do you help people save? What do you teach them? What are what what's available to them? Well we have a whole host of financial education services we have games to help them we do a lot of culturally connected social posts people don't want to be lectured they don't want to read textbooks but we have tools to help people save money automatically and of course you know getting your finances right starts with avoiding fees so that's that sort of foundation. Okay so let's go over games because we know after what's happened with the game stops and the AMC's we don't mean that kind of deal. Like educational. Right I want to be clear because you know knowledge. Some who might say oh yeah he's just a game of fine that kind of thing. So when I open an account I do want to have my direct deposit goes to you right. It actually goes to one of our two partner banks. So you know we we offer FDIC insured you know reggae protected checking accounts this isn't going to some phantom pool right is unregulated everything is regulated by the OCC through our bank partners the money stays in those accounts it's essentially think of it as like a tri-party arrangement consumer signs up for an account with Chime and one of our partner banks all the money stays in there and they get these short-term liquidity and credit building benefits that we offer. Okay I've got to ask about it crypto it just doesn't seem to be part of the operation. Should it be? You know we're not focused on crypto I I think there are some applications for crypto I think around you know storage value particularly in in certain markets you know probably international money movement and so forth. For our members some of them certainly do trade in crypto. A lot of our members aren't are still getting they're still early in the process of developing their investment plan. So you know we don't want to start with crypto as kind of the lead in that area. No in that sense I get it but it's I'm always very concerned that there are people who start at another firm that's for young people and they fizzle and now it's gone right for now but it's destroyed a lot of people. Yeah so I think you're actually being prudent. I don't think you're being condescending I think you're being prudent. Yeah I have respect for a lot of those companies too but we're when we do launch investing services who don't have yet we will likely start in a regular rhythm of investing into a low-cost ETF. Okay that's what I would say. Thank you. Thank you for your things we don't have ambitions of creating a trading app. Alright very good please don't. Anyway so Chris I've got to ask you I know that it's a sensitive issue but any plans within the next say year to be public. Oh we're excited about the prospects to be a public company. We don't have plans in the immediate future so it's not a 24 thing but it is not too far out in the in the distant future. Good we want to definitely see that on the horizon. I like to encourage outfits that help the regular people because that's not what you're doing. Regular people. Anyway don't still be regular that's Chris Bridges co-founder CEO of Chime number 22 in the CBC Disruptor 50 list and as you can tell I'm very excited about it. You can get the full list of CBC Disruptors at cmbc.com/disruptors please don't miss Disruptor Gecko Robotics tonight on last call and money's back after the break. When we return master the markets one stock at a time the lightning route is about next. It is time for the lightning runners over are you ready skig deck up for the light around Kramer's about to start with Norman in New Jersey. Norman. Oh Jim Boyer. Norman what's going on? I'm talking about a stock some of my family members owned it back in the day when it was up to 400 and now it's down about a hundred and thirty. I've never owned it but I'm thinking about it. What do we think about Moderna? I'm a believer. I've been a believer of Stefan Ben Selson was his 16. I never backed away other than the fact that went crazy during covid and then it crashed and never says it crashed. I'm in. I'm in. Let's go to Barry in Florida. Barry. Yes. Long time listening at first time calling. Oh excellent. Yes. It's great. And also from Philadelphia right? There you go from your alpha model. Okay. Mine med. I like mine med. I am a big believer and by the way I'm in vertex to anything. I'm into it. Anything that makes it so that there's ways to be able to get rid of pain and do good without getting people hooked. I am all in one. Doesn't necessarily mean it'll make a lot of money. I don't care. I think that people recognize this is an unmet need and it will make money in the end. Let's go to Dennis in New Jersey. Dennis. Oh yeah. Mr. Kramer. Oh yeah. Dennis. Dennis. I'm the first time caller. Okay. And I'm calling about motying manufacturing. Okay. That kind of metal bending industrial company is precisely what's working here. And it's what we teach at the club. And that is a club like name. Well you know it's a club not mean like a club like that. I mean like more like the group of people not a club. But I like the concept. How about pros? All we've talked to pros before pros in California pros. Hey Jim, how's it going? Not bad. How about you? What's that? Good. I just need your help on this talk I'm looking at. Sure. They are in the electoral mechanical space. They make devices. And they also produce gas analyzers with a semiconductor industry. The chart looks fantastic. Lower left upper right as we like it. And yeah. So just wanted to get your thoughts on AME and the tech. Oh man. Come on. That's just one of the big industrial stuff. I mean absolutely terrific company. You should own a ton of it when I was at my head spot. I like your I like what you're up to. You go to Jerry and Missouri Jerry. Hey Jim, thanks for taking my call. Absolutely Jerry. What's going on? Well the mean stocks have seemed to have a pretty big key to run. And my stock has been trading with them. This company has made a terrible decision, in my opinion, to use electric vehicles. And I consider the way the chart customers will recharge and then they're trying to return almost criminal. But I don't think that's the future because they say they're selling their EV fleet. Jim should I sell or double down on my Hertz position. I don't want you to sell and I don't want you to double down. Just what you do. Let's just see if it can't go higher. I don't like the fact that my friend you sure left it. I do think that it's probably too cheap right now. But it got to eight nine. I would sell the stock. Let's go to CJ in Florida. CJ. Hey Jim. Who are you out here Jim? Thank you for all you do for everybody and hands on hard work that you do. Oh thank you. Thank you very much. I've met the few dollars here and there. Thank you. I am looking at a stock. I have a substantial position in PLT or Kalantir. Palantir. Okay. Okay, here's the problem with Palantir. The quarters are uneven and Alex Karp doesn't want to come on the show and I don't really understand how I can possibly make the judgment unless he comes on. So there we go. And that, ladies and gentlemen, conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. When I see meme stock mania taking over again, left by GameStop and AMC, I need to remind you that this is irrational. There's no way these stocks should reach such elevated levels on their own. One point today, GameStop had a more capitalization of really twenty billion dollars, but it finished lower just under fifteen billion. But people were buying or selling millions of shares at those exalted levels. Was GameStop worth almost twenty billion dollars? The end of the day, it's worth what buyers will pay for it. I accept that. However, I prefer to be a little more rigorous than that because I want something with staying power. The best way to figure out what a company might be worth is to compare it to another company in the same industry. For GameStop, I think the closest compare is Best Buy, another electronics chain with lots of gaming exposure, and one that has a sixteen billion dollar market capitalization moment, not that much higher than GameStop it for today's ridiculous run. How do they stack up? Let's use the last four years. In the last few, that period is a very good game. GameStop revenues have bounced between five and six billion dollars. Best Buy, meanwhile, did forty three point five billion dollars in sales this year, almost in order of magnitude R. How about earnings? If they're losing amounts of money from twenty twenty to twenty twenty two, GameStop made about seventeen million this year. That's an M. By contrast, even though Best Buy's earnings have been on the decline, it still made 1.4 billion last year, billion big. You could argue that GameStop's on the upswing, while Best Buy seems probably the lower. But if they have roughly the same market capitalization, an electronic retailer that's making 1.4 billion, it should be worth a lot more than a game retailer that's making seventeen million, don't you think? Hey, don't forget the Best Buy pays a generous dividend with a five percent yield at these levels, one GameStop pays no dividend. Altogether, I just see two, I don't see how these two companies that do roughly the same thing can be worth roughly the same price. According to Wall Street, Best Buy's numbers are so much higher. I'd love to tell you it's radically undervalued because we own this one for the travel trust, but at best, I can just say Best Buy is too cheap. Well, how about the possibility that GameStop can't be judged by its current state? Instead, we need to think about how the company can reinvent itself by selling stock here. Well, let's say they can sell a billion dollars with a stock, something I think the S.C.D. would actually probably let it happen, because they don't seem to carry either way. If GameStop had an extra billion dollars, it could get out of some bad leases, maybe makes a little more money, maybe it can use the stock to make it acquisition. Hey, maybe he haven't go buy Best Buy for heaven's sake. GameStop's market capitalization was well above it at one time, but I don't think any potential takeover candidate would be willing to accept the stock deal if GameStop's at these levels. Even if they did, it would crush the stock, and the short sellers who currently are being crushed would make out like bandits. Those who own it would have ego over their faces as the stock would be obliterated if GameStop did a gigantic offering to pay for a transformational acquisition, because that's what it needs as the current business is dying. So, the most obvious comparison says GameStop's overvalued. The company's been reluctant to change the stripes, and it can't use its stock to buy someone else without ruining the short-buster thesis that got it here. I just can't get 64, or I can't even get the fee. I can't even get 44 for that matter. In short, when I see this running GameStop, the responsible move is simply to say, "What about AMC?" Different situation entirely. GameStop at least has a good balance sheet and actually turned to profit last year. It's just that the stock's overvalued compared to its peers. But AMC, well, if left to its own devices, I think this movie theater chain will mostly run out of money in 2026, when $2.8 billion in debt comes due. They sold some stock yesterday from a plan that allows them to raise capital, but the $250 million they raised just made it easier for them to pay their debts to come through in 2025. If the stock keeps climbing, AMC can sell more stock. That's good. It's how these guys made it through the pandemic to begin with. But that biggest stock of 2026, it's just way too daunting. In the end, I think it's a dead man walking. You're catching AMC in the walking phase. Sell it before the dead man phase, and you'll do just fine. I like to say, there's always a bull market somewhere. I pop it up. Just for you right here, man. Money. I'm Jim Kramer. See you tomorrow. Last call starts now! 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