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 5/15/24
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 allows distributing distribution breaking news the peanut butter group and chocolatey corp have merged to create pbc ink 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 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 pbc incorporated dot com to try the flavor merger of the century jiff pb and see my mission is simple to make you money I'm here to level the playing field for all investors there's always a more market somewhere and I promise to help you find it man money starts now hey I'm Kramer welcome to mad money welcome to Kramer a beer with my friends I was trying to make a little money my job is not to entertain you by the educate and teach so call me at 1-800-743 cbc tweet me Jim Kramer this market feels almost blasphemous to me because we're being led by an outrageously bullish combination of stocks the kind of stocks that absolutely should not be going higher at the same time nobody wants to say it but I don't know if I can recall moment where we have such disparate stocks climbing together in new highs you asked me it a few weeks ago I would have told you this combination that led us today is not conceivable yet that's what's happening now getting another 350 points say record clothes S&B jump 1.1 is that record clothes that's like over 1.4% you guessed it record clothes this actually defies the whole nature of the conventional wins about what can happen when we're at this point in the business cycle now look in the old days for the crash of 2000 doesn't it we'd be celebrating daily today now the commentators and prognosticators their circle respect they just try to ignore what's happening so they can go about go back to talking about how the consumers tap to out or something we learned about from some incredibly weak retail sales numbers just this morning or how inflation is still raising and starting frightening the budget deficit a consumer price index is too high there were even people complaining about the economy is just too hot still I know I saw it twice this morning I wanted to reach in and grab the teeth you know right but I couldn't because you know they were right there and I would have grabbed what I heard all right look just a negative spin if your negative spin on all sorts of positive news not only no celebration no positive nature but really an out now pessimist pessimist day I don't know how they can do it then there are the stocks themselves when you listen to the stocks they're saying shut up and drive they're not saying you must not listen to all the strategists in billionaires we're trying their best to scare you to the sidelines they are telling you those people are awful the bears have had it wrong there are just too many groups going higher all at once that's what that's what's happening let's look at it let's deal with the actual stocks how can J.P. Morgan Bank of America Qualcomm and Applied Materials make common cost of 52 week highlist how can southern copper and southern utility both will be onatics on the list what allows Boston scientific to make a little device company Texas Instruments the semiconductor company be in tandem with 52 week highs it's all about the zeitgeist of this very odd very boys time let's go over what's really happening with this tremendous rally because it's defying everything we've been taught about how this business works I'm gonna list them because it's that special first for years we've been taught we were either in and eat we were either in one kind of market or another month but not both we could either say have tech go higher or other groups go higher fan rallies or other stocks go down not this time not this time we have a ton of industrials banks utilities and tax all going up at the same time that almost ever happens because utilities go up when we are going through a session industrials to go down when we're headed for a recession tech's rally when inflation is low and the industry's got a thesis going internet data center or in this case artificial intelligence financials soar when inflation is getting under control and the consumers strong enough to pay back loans but rates stay high whom putters move up when interest rates about the plummet those things simply can't all be happening at the same time not what kind of vacuum is this the stocks leading us higher are supposed to be mutually exclusive what does that say about the people who are buying stocks it says there are many different camps of investors right now many groups of buyers and perhaps by mistake they are converging there's a camp that says a weak cpi could put rate cuts back on the table so they buy the industrials there's another camp that says you can't buy you can buy the stocks i've got i'm sorry buy the banks because ever since last year's crisis they've gotten so cheap then you can own them without too much to worry about there's a camp of things that the federal leave interest rates higher for longer causing recession so they buy the recession with utilities especially after these weekly sales numbers we got this morning the tax can take off because they're in sector the growth mode thanks to our official intelligence boom which you can see feels added to earnings from more than just in video i saw my own eyes today with when i talked to bill ready to see your Pinterest who's been using NVIDIA GPU chips instead of CPU chips to hasten inferential pics the home butters can rock because more years rates actually went down the day a big deal is it seemed like that the tenure was headed and it'll ultimately to five now would have driven rates up to eight percent but then we got that cooler a seep our report this morning second this kind of rally is built on skepticism many investors believe that the key to this market is the consumer without the consumer they say you can't get to all-time highs they know nothing that sentiment has left so many behind trampled by the bullish stampede they just weren't able to think about anything beyond the same old tattered playbook that no longer fits the market who needs the consumer when you've got the enterprise it's true you just didn't need the breadwinners out there buying buying at the stores plus we have to leave open the chance that the consumer stocks could be the next to rally if we get more signs that the fed might want to cut rates that will make a lot of quarters for the companies that are in retail that aren't that good look better and you know what we are having some layoffs didn't we just see a gigantic wave of unexpected layoffs at shuttered red lobsters unemployment could be ticking up more important if you've been waiting for the consumer to break out you would have missed such incredible moves honestly the consumer was in good shape the fed would be getting ready to raise rates again which would obliterate nearly everything on the new highless except for the utilities yep this weirdly broad-based rally would be truly impossible if the consumer stocks were leading and the consumers were really spinning like man third you know what the billionaires they couldn't kill us a week ago Barry Stern let car-carrying billionaire and very nice person came on our errands head that he expects the regional bank or two to fail every week that's an incredibly dire forecast the house of pain could you see JP Morgan Bank of America Wells Fargo Morgan Stanley Goldman Sachs and city group Sock all hitting a 52 week live Stern looks right but if you believe the doom and gloom his doom and gloom you got left in the dust and you should get out now frankly I keep waiting for both billionaire to come on air and say you know what he really likes to tape he's investing in Microsoft not at the high but what a run Qualcomm typically have some applied materials think Schwab is great maybe southern copper and Lillian Merck two formal companies that also aren't on the new highless but we're galloping today can you imagine if someone came on that's a billionaire said that you know Joe you know Becky I really like it here at Andrew you know what I'm buying a lot of stuff you imagine that you'd sit there and you say wow I'm really learning something finally let's recognize that many investors have been brainwashed into believing there simply wasn't enough money going around to have all these groups go up at once here I think they're missing a lack of new shares created thanks to weak IPO market couple of the bullish investor who tends to put money in index funds think of it like this if you want to stock with a huge buyback like Apple and we keep getting waves of money coming over the transom in S&P funds you end up with a stock that a substantial share of base that never moves including a gigantic club of ownership by passive index funds that don't trade a humongous buyback stops up additional stock and then crunches it anytime there's a huge way of actual money coming into the S&P it picks up stock and puts it away that means it's actual buyers not index buyers but buyers come in they have a giant amount of competition for shares when you have multiple bidders like giant company buybacks and huge S&P index buyers then when a natural buyer comes in a portfolio manager saying who wants to buy two million shares of a company well that's that buy can move up a stock even a stock like Apple so let me give you the bottom line of this amazing time it's a strange confluence a remarkable unseen unrecognizable bull market one that happens when the buyers see every class is half full even if they're wrong even if they're wrong because they're buying can make themselves right just by being aggressive enough and that's really what happened today let's go to Ryan and Florida Ryan buyad Jim buyad Ryan what's going on my dad and aren't fans of your show look you can't break my heart today at these current levels i love it i've been buying a lot of it i know the ceo didn't look too good on the last interview with you but the drive-throughs are always packed and they're starting to roll out more and more deals to bring in more customers during the slower parts of the day what do you think about starbucks over the next 12 to 24 months okay i think starbucks the stock is too cheap i think that they have to uh uh let's just say they've got to be realistic that a turn is going to take a while and that a plan includes having say a starbucks too like panera too where they really figure out how to handle throughput and they figure out whether the breezes can make all the drinks and how to handle the lines and mobile order pay without cutting in front and they have to do those things and uh when they do that they'll get it right so no my trust owns it but you see my trust is down a huge amount and when that happens it's my fault okay it's my fault because i believe and when you believe and a stock goes down it's on you not on them the bookmark that we saw today is one that happens when buyers see every class is half full and even if they're wrong they're fine to make themselves right as long as they're aggressive or not well man my attorney i'm diving in the latest from today's CPI see what these numbers mean for the stock market then could common breakups be your money's biggest breakout i'm looking into united technologies and GE and i got another one in there that i think is awesome and it's been a half a decade since Pinterest IPO so i'm gonna sit down with the CEO to see what's ahead for the social media stand out so stay with Kramer don't miss a second of mad money follow @chimcramer on x have a question tweet Kramer #mad mentions send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com at ever north health services we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible behavioral health solutions that also keep your projections at their best it's possible pharmacy benefits that benefit your bottom line it's possible complex specialty care that cares about your ROI it's possible because we're already doing it all while saving businesses billions that's wonder made possible learn more at ever north dot com slash wonder 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 the market world today thanks to the morning's core that I expect to get some more price index reading 8.3 percent increase versus the previous month when Wall Street was looking for 0.4 now that's the headline number you explained today's a lot of today's move because it makes it easier for the Fed to think about cutting rates in the not too distant future and we know that's really what the stock buyers care about but for a couple minutes I want to drill down into the individual line items in the CPR report because you can learn a lot from the breakdown about the future so let's get granular the platinum services included in the monthly CPI report are broken into four categories food energy core goods and services the first major story is the fact that food inflation is on the ropes yeah in today's April's CPI report food prices were flat from the previous month we're now building up a good winning streak of food inflation running over your basis food inflation was 2.2 percent the lowest increase since May of 2021 which is around when we first started to realize that inflation would be a real problem I regard these numbers as very encouraging if we go down to the subcategories food at home and food away from home you see the food for at home well it turned negative in April versus the previous month even on a year-over-year basis they were up just 1.1 percent there's still some work to do for the food away from home category prices were up 0.3 percent month over month and and geez 4.1 percent year-over-year but you know what I think we'll see progress there soon because we've learned this early season that many restaurants have seen major pushbacks on price increases including McDonald's plus you know in terms of food at home I think Walmart's and inflation fighter bringing down the cost of food nationwide and Costco's doing the same thing okay next is energy another important category energy prices have been one of the key sources of inflation's resurgence this year if you're going down in late 2023 this time the change in energy prices was positive but not too bad up 1.1 percent month over month in April same as in March while the year-over-year change was a 2.6 percent increase the highest number since February 2023 that's not ideal but there's still basically in llama the Feds 2% inflation target within the energy category energy commodities prices were the main problem of 2.7 percent month over month and that's because of a 2.8 percent increase in gasoline prices the biggest increases for energy commodities were offset I'll be only suddenly by a 0.7 percent month everyone decreased for energy services including utility gas services ever down 2.9 percent so again energy's not perfect but the biggest problem is gasoline and we know that the price of oil has pulled back in recent weeks so maybe it's not going to be a major problem going forward the decline in the refinery stocks tells me that gasoline prices could come down it'd be even hard the next bucket is the core goods group which is an amalgam of popular products here price changes have mostly been negative for a while and they state that way in April down 0.1 percent month over month and down 1.3 percent year over year with the latter marking the biggest decline since at least December 2011 so overall no complaints there when it comes to core goods the Feds already won the fight against inflation now if you go into subcategories point some problems like a 2.5 percent year over year increase in medical care commodities a medical here i give up okay there was also apparently a 1.2 percent month over month increase in power prices which i'm not sure i believe ain't this labor department ever heard of TEMU but for each of these bad numbers there were some good lines especially with the automobile front where consumers finally seem to be getting some relief with 0.4 percent month over month decline in new vehicles prices 1.4 percent month over month decline in use cars and trucks in fact use cars and trucks were down 6.9 percent year over year very nice finally and then finally it's all about services i'll just tell you upfront there's less good news to point to here this is really the Achilles heel the best thing that we could point out is that the price increases are in services are indeed decelerating the overall 0.4 percent month over month uptick for services in April was better than the 0.5 percent increase in February and March certainly better than the 0.7 percent January reading still a big problem but not as big as it was how about that when you drill down i i sure don't like that 0.4 percent month over month increase in in shelter or medical care services or the 0.9 percent month over month increase in transportation services which is actually the lowest number for transportation in the past four months but it's still really bad worst of all is car insurance is out of control it's up 22.6 percent year over year i'm almost calling out a national crisis we need a car insurance tva from saying figure out the real price why isn't this industry being taken on i know why maybe the government is too busy going after apple alphabet and amazon so here's the bottom line well today's cool than expected CPR report was a big positive for the market when you dig into it there's some more nuances to be found as some areas are doing much better than others but now you know what to watch and direction prices as a whole as a whole i think they're headed down then money's back after the break coming up a dual look had two major industrial spin-offs who's looking fab after their breakup stick with cramer at ever north health services we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible behavioral health solutions that also keep your projections at their best it's possible pharmacy benefits that benefit your bottom line it's possible complex specialty care that cares about your ROI it's possible because we're already doing it all while saving businesses billions that's wonder made possible learn more at ever north dot com slash wonder what a tremendous day for the averages i talk about one of my favorite subjects which is breakups no not because i'm an old curmudgeon who somehow hates romance not that kind of breakup but because when big conglomerates to buy themselves into smaller more easily digestible understandable pieces tends to create a ton of value for shareholders now just the last few years we've seen two major three-way breakups from industrial titans one's made of fortune for you and one's made a huge fortune for you versus united technology spun off by its and they spun off their air conditioning business that was carrier global um it's kind of like an h-fact business and it's elevator business which was over this worldwide and then merged its remaining aerospace and defense division with Raytheon to create a company called the new rtx then more recently general left you spun off its health care business at g health care for learning its power business g even over earlier this year leaving the remaining business g aerospace these moves have already unlocked a tremendous amount of value for the shareholders old united technology general logic i like to start calculating from when the breakups were enacted because that's the cleanest way to go although normally you can make good money in the time between the announcement and the moments that spin off start happening for example united technology well the part that merged with raytheon and new rtx has rallied 108 since the breakup total return of 130 including dividends now worth over 140 billion dollars this was that that little problem they had with that it was like kind of a problem with their engine they really put that behind them very quickly proud of these guys by the by the way i think rtx is great business both in the commercial aerospace and the defense side but of the three former united technology components it's carrier global that's the biggest winner this was a surprise right stocks up 395 percent since the breakup give me a total return of four and twenty percent including dividends this heat ventilation air conditioning business is now worth over 59 billion all the above all by itself large news carriers just doing a great job thanks to the stewardship of dave getland it reported fantastic quarter last month and i see more strength ahead thanks to the data center boom and a terrific oxygen that they made over europe remember these warehouses full of servers need industrial speed air conditioning and keep the computers running a peak performance it's a major theme for me for 2024 third oldest worldwide of 121 percent since the breakup thank you judy marks give you 134 percent total return including dividends the other business now worth nearly 40 billion dollars on its own but a lot of people think of Otis' nutritional movement by sippquell that's hostage like to new construction but in reality company gets the vast bulk of its money from servicing and repairing existing all theirs which is why even though china soft you still got to repair them you know that they actually care about safety china yes put it all together in the combined value of the three companies is a hundred and twenty three percent higher than the combined value of the technology and rate on just before the split by comparison the sb's at five hundred and ten percent of the same period that is solid outperformers this is like the blow away outperformers that you're going to hear about next no but i sure like it let's talk about the recent general electric breakup just before the spin off of ge health care in january of 2023 ge had a market capisation of just 193 billion since ng is more than triple with g while ge health care is up 46 percent they both trust sb 500 of 39 percent of the same period now most of ge health care's gains came early on and it's been more of a grind since then it's still mainly a grind higher we've used some moments of weakness to buy some for the child will trust you can follow that at cmec investing club i suggest you do because we've made some great buys here while the stock sold off after a quarter a few weeks ago most of the supply chain issues and china orders it's now going to gain a big chunk of its losses i bet it's got more upside i think that last quarter was an aberration not handled well by management i should add next g_e_ spun off its power renewable energy business sge vernova on april 20th and on april second now listen to whether they were brand of this company as ge aerospace uh that's the major one that that same night i told you to keep owning both components and this is something i want to stress i like this gevernova now look ge aerospace up 17 percent gevernova is up 18 percent you know i think this for nova which is really natural gas it's got a lot of them to run the data centers need a lot of natural gas utilities when you add up the current market capitalization three hundred g_e_ enterprises there were two hundred sixty two billion dollars that's about 182 percent from right before the health care spinoff s&p 500 only up 38 percent over the same period even if you go from the less generous starting point like the moment the breakup is announced in never 2021 you'd still be up 118 percent if you held the g_e_ in the spinoffs while the s&p 100 is only up 12 percent that's larry colp you know i have my daughter here today and we went upstairs to the board with my sister that guy that guy is a smart guy was pointed at picture larry colp and both of us right there i pointed at colp so why bring all this up because i'm constantly looking for new opportunities for you for example last fall dan her sponoff its water purification applied solutions business is varalto both stocks are now lagging s before but given how these stories usually play out i think it could be a terrific buying opportunity to pick up dan her this is one of the great performers all time only up 20 percent it's now pure play on diagnostics and medical equipment which very fast growing do not overlook that stock these guys know how to run a company more importantly i want to see a breakup from the company that most resembles the united technology of old and talk about a company i used to like a lot i live for the travel trust it's been a disappointed and it's called honey well yeah we've been patient my patience is being tried it's a consistent underperformer over this period by significant martin not about friends it's about money it's a breakup the answer for honeywell i don't know and i don't care i just want something that will move this car quiz we're a shareholder and that's okay i think they should consider breaking up given how well it's worth you know i technology gee the modern honeywell it's just like they were an amalgamation of completely unrelated businesses that have no theme whatsoever as a greater space division but it's also building automation business and industrial automation business alongside an energy and sustainability solutions unit uh worst these divisions never seem working at the same time at least one is always tripping up the others at this point i don't see what honeywell gets from keeping them under the same roof i think you know do a big bypass big dividend boost but what they really need to do is get the stock higher i've not been happy this year with companies that have not named my trust money you may have detected that now whether it is i don't like losing money for charity for you for anyone all right wall street loves smaller bite sized companies that are easier to value and just generally easier to get your head around the proof is in the pudding management needs to recognize that the negativity around the stock has made it one of the worst performers in the group when you know what there's a tennis player named don budge he used to say when everything's working changed nothing when nothing's working change everything which don budge was instant ceo jon consider this the architect of the modern honeywell is there is a damn check nice fella took over for uh ceo 2017 last year damn straight passes on the ceo titled of him i'll come forward transitioning to the role of executive chairman but when honeywell reported fourth quarter results in february one the company also announced effective this june a damn check will retire from the board entirely so if a malco poor feels that honeywell needs a shake up if not an entire break up ally united technology g then this would be the first and best chance to do it it wouldn't be an affront to darius because he won't be there bottom line breaking up into three separate pieces has been hugely valuable for the old united technologies and g two big conglomerates that never seem to get the credit they were due when everything was under the same route maybe just maybe we'll see some other industrial conglomerates like honeywell decide that they too could benefit from splitting up into cleaner stories to create value for investors i like ceos who make my trust money is it that hard let's go to moustafa in ohio moustafa yes uh all right gim give me some of the yeah give me the reasons quality issues that the boy company experienced and the potential litigation you still think it's an attractive stock especially for the mid or long term well you know today the just forms of you know i don't know criminal prosecution you can't criminally prosecute a company the justice department's got to get on its game talk about another outfit that i'm putting them going from buy to hold on geez it's people that commit crimes not companies get it together all right sometimes breaking up is hard to do but for united technology a great company thank you great case nge a great company thank you larry colt it's been the best thing to happen to i am sure the others will say you know what we don't have to do anything yeah why should we think that i hope you see more of these all right much more may have on it including my swivel with pinterest hey there's a guy's got it going i'm looking through the latest quarter with the co to see what's behind the gen z popularity then should you hold the home doors i'm thinking the stories behind some of the latest reports and of course all your calls rabbit part tonight's edition of the liding round so stay with Kramer now that early seasons winding down we can circle back to some of the best stories from the past few weeks that goes to the shovel take pinterest the social media platform slash virtual pinboard site if the other people this company port is stellar quarter one that sent the stock story over 20 percent in response both because the numbers were incredible and because their integration of ai has made pinterest more attractive to both users and advertisers or today they're coming running the bell here at the euro stocks change sell by five years in public markets and we took the opportunity to sit down with pinterest CEO bill ready find out what's driving this company success and take a look bill big day for pinterest five years give me some reflections um well you know it's it's been a remarkable journey for pinterest right a decade plus after founding um you know pinterest is stronger than ever right we just passed uh five hundred million uh monthly active users um we've put up seven straight quarters of accelerating user growth and the thing i love most is that at the core of it you know we are winning with our users particularly winning with gen z which is now more than 40 percent of our our users um we are winning by delivering them positivity you know when i came into pinterest as one of the things i set out to do was prove a business model for social media centered on positivity rather than engagement via enragement and you know coming up on two years in you know we have accelerated user growth we have accelerated revenue growth but we're doing it by delivering people positivity not by leaning on sort of the you know uh what is so common in social media around engagement via enragement but actually bringing people inspiration to create a life they love giving them actionability but specifically tuning AI for positivity we see it cutting through with our users gen z will tell you one of the biggest reasons they come to pinterest is they see it as an oasis away from the toxicity they experience elsewhere in social media but at the same time these people have a proclivity as you call it they have a strong commercial intent so it's not like you get them and nothing happens that's right this has been one of the fundamental changes in pinterest over the last couple of years is that more than half the users on pinterest are there to shop but historically pinterest has sort of solved digital window shopping right but you couldn't take action on the things that you found now we're opening the stores pinterest is where gen z goes to shop we more than double the number of clicks we sent to advertisers in q4 and then again in q1 actually accelerating even furthering q1 so we've brought that action ability into the platform and it's great for users because it's helping users go take action on the things they find on pinterest but then it's fantastic for advertisers and really making the business model work well for both advertisers and users because ads can be great content when the user has commercial intent when they're there to shop as more than half users on pinterest are there to do i think it's important to point out that your company made a switch from cpu to gpu have a deal with nvidia one of the things that my daughter was showing me this incredible you do a collage and then immediately you go back to your page they're the ads that actually you want and therefore much less invasive you're actually thinking i need it yeah that's exactly right you know we lean heavily into next gen ai um uh roughly two years ago and i've shared this that we now have models that are a hundred times larger than what we had before gpu serving all these things and what that led to was a a full 10 percentage point lift in the relevancy of our recommendations for users but it's not just the ai it's the really unique signal that we get on our platform pinterest has always been about curation but we've really doubled down into curation and particularly making it more refined more granular so that not only can you post pictures of what you're interested in on pinterest you can actually grab elements out of those pictures and say well from this picture it's that pair of pants from this picture and this shirt from this other picture in this you know this half from this other one these pair of shoes and put that together in a great outfit and that is great for the user because they you know they're planning the things they want to do whether it's putting the other outfit or designing a room but then it's also really unique signal for pinterest that is completely unique to social media there's no other social media platform that gets this kind of signal with this granularity and you know the ais is good as a signal upon which it's acting and that is just completely unique signal that we have that you wouldn't find anyplace else that is letting us train the ai to give better and better recommendations for users and that is part of why you see users coming back and shopping more and taking action out of bringing the action and it's lightning quick now one of the things that people said to me jim it's tapped out it's going up so much but i look at the uh really incredible breakdown between international and domestic and i think it may be scratched surface yeah i would say you know we are scratching the surface on so many of these things you know shopping we're just getting going um we we have accelerated user growth in it with every generation you know gen Z's are largest but we decided to use it with every generation in every geography and we have roughly 80 percent of our users outside the US but less than 20 percent of our monetization so to your point on international you know there's a huge opportunity on international and the things that we've done around shopping you know we really start in our home market in the US and we're just starting to take those internationals so we see tremendous opportunity there even as there continues to be you know a lot more opportunity in shopping here in the US as well all right now one of the things i've been thinking about is there's kind of a uh there's a have had not think developing on mine we know that youtube is doing well we know amazon obviously uh the google part that is not youtube and i'm i want to put you in that category one of the reasons i want to yeah by the way i don't mean to slight by any means read it because they're doing well too but nobody ages down they all age up tell us what that means because it's really special to you yeah it is it is quite unique it is super rare to see a a mobile app aged down over time normally ages up over time and as we have leaned into curation and actionability and most importantly positivity that is winning with gen Z and we are exactly as you said we are aging down which is almost unheard of for an app because typically you get your you know your your most engaged users early on and then over time each successive cohort is less and less engaged and this is actually one of the things i shared our investor day last fall not only are we aging down our most recent cohorts are nearly twice as engaged as cohorts from the years prior so unlike you know what is typical where you'd have like a cohort at the beginning there's the most engaged and then less and less engaged as you get more more peripheral users our most recent cohorts are approximately twice as engaged as prior cohort so we are finding our best product market fit in years and it really is about the curation the relevancy with AI and the action ability and platform and positivity i want to go back to this point of positivity i remember i got this from Janssen Wong at infinity said Jim going forward it's going to be the company the companies and sites that incite combat versus the ones that are friendly i said well combat is where everybody goes he goes not the people you want you are not like letter x a combat site yeah so that's right so we we are trying to bring people inspiration you know we are trying to you know people come to Pinterest with intent and purpose it's fundamentally different than the rest of social media is primarily entertainment based but you know this is one of the things that i intentionally focused on coming in is that we wanted to prove that you could tune AI for positivity when you look at how social media became much more negative and toxic over the years it was really when AI was put in charge of what you see yes and the AI figured out that you look longer at things that are triggering for you whatever your trigger is right and so you know we shifted from tuning for view time maximization to tuning for positive outcomes like helping you find a thing that you want to shop or buy and testing for things will just make you feel better and we're proving out that there is a a business model around positivity but it can it pays to be positive and we're competing on that and i think you know we're we're not a battleground in the sense of the engagement via engagement at uc elsewhere but i do hope that what we can do is you know prove out a competitive element in social media i would love to see a world where social media platforms competed on their safety standards the same way that auto manufacturers compete on their safety standards which if you go back far enough there's a time when auto manufacturers said that was against the business model right but now it's not just been on standards they compete on who has the best safety standards this the best safety results i hope that we can create a world like that for social media i think you can one next question do you pay attention to this tick-tock battle on washington could there be an opportunity for Pinterest or is that a such well what i would say is you know gen z comes to pinterest because they see something different and unique from the rest of social media however what i would say you know without commenting on anyone specific company if you go around the world you see governments around the world paying much more attention to what's happening with social media and you know the ways that social media has failed or protected users are too numerous to count and so i think as that happens you're going to see you know more and more governments looking at social media and the effects um and on our part we're not sitting around waiting for government regulated to take action we're trying to go do the right thing and prove it's a good business model to do the right thing for users all right i want to congratulate you on five years and most importantly congratulate you on that attitude as a parent thank you that's what i want to see and as a younger person they should want to see it too bill ready is the CEO of pinterest and we are like five years what a remarkable journey thank you so thank you so thank you so thank you gentlemen thank you very much when we return master the markets one stock at a time the lightning round is up next it is time it's time for the label to the better all right we're gonna send this to my stepfather but you play this out and then the lightning round is over are you ready skiing dad's under the light round crisis by the start with Gary and Pennsylvania Gary hey Jim uh free court mc morn that's the exit okay for trade the giant short tweez and copper i see 53 going to 60 john in washing john hi Jim i'm a club member oh thank over the year because i i've lost about 90 percent of my investment in matter court do you think i should sell this now yeah it's done no it got a bit it's done just let's leave it behind and start thinking go before we just think going forward okay let's go to uh brian in california brian hey Jim i'm looking at a company called fateful particular safe fafe it's a rate with the longest duration security you can invest in they do 99-year balances under yeah but i don't really know what's in it i do not buy i know that the guy runs it's ceo's very smart but i'm not sure what's in it and that bothers me i don't recommend this doctor they don't know what's in let's go to mike in Illinois mike hey jm how are you i'm doing well haven't you mike investment club member for the last five months i can't tell you how happy i am i'm 67 years old and retired and totally invested in my family's portfolio and you've been a lot of big help in making me much more comfortable for my retirement thank you very much that is the goal i mean that you look i do is i i just i jeff marx have him and i are really trying so hard to do a good job jeff is amazing let's go to work all right buddy thank you uh my question is on service now i bought a small in the small piece of a while ago i'm sitting on i wonder if i should buy more so yeah i would buy more i mean i feel like i i wanted to buy that stock for the trust we own so many in this space we felt that we couldn't but that was a nice break before the quarter i've been the quarter reported it really wasn't a bad quarter and i think the stocks will buy right here are service now let's go to Tom and maryll and Tom yeah hi jim spooka put ya my wife and i watch you every night um i think uh talking about energy for a data center something i think that uh solar cells and uh windows are kind of a unreliable source so i was looking for small nuclear reactors and friday a company with a symbol okay oh oh came on the market right that one's too risky i i'm still going to send you to ge burnova that's the one day i'm going to do the small form factor uh nukes that's the place you want to be let's go to jenny and far to jenny hey jim how you doing i'm doing well jenny how about you i'm wondering if you could share your opinion about canopy growth okay once you're expected what if you want to expect it to play on cannabis that is the one you want and i would be a buyer of it by the way enough for the consolation brand selling i think you don't know what you're doing and that letting tell us the conclusion of the lightning round the lightning round is sponsored by charl Schwab when it comes to the home builders and even companies like home depot that can cater to homeowners or contractors the linkage with the bomb market has become incredibly palpable when you look at home depot's quarry yesterday nothing stands out more than the price of money the rate homeowners need to pay if they want to say a home get a home equity loan to pay for big renovations they'd fuel home depot's profits yesterday home depot reported downbeat set of numbers and a disappointing forecast the stock industry valid lean inventories but but for most retailers lean inventories or everything it means they won't have to heavily discount merchandise get out the door but then this talk pulled back as wall street realized that without rate cuts this business might be stuck in the mind today though we come in and we get this cooler considered price index important the sign that the fed might be able to cut rates sooner than we expected and that's not home depots earnings is what propelled the stock up eight bucks today there that showed you the buyers care more about interest rates then they care about how home depot says is going to do is not amazing how powerful it is and you know what it's right the company was adamant that it needs people to do big home renovation projects in order to generate good numbers those projects use to require what's called financing and that means they need lower interest rates to get the job done with pressure even being felt by higher income consumers that's odd as we fail the very knowledgeable CFO pointed out quote it's not the inability to fund projects is it deferral mindset and I said wow deferral mindset that's why you gotta read all the consoles there's a concept I hadn't thought of it's a huge bit of knowledge he says there's so much chatter about rates coming down that quote our customers tell us hey without mine without on the horizon we're just going to wait and so so the that's really the most important dynamic from an income perspective end quote now there are some other very big issues that are holding back the the despot sales first we simply don't have enough use homes in this country and remember it's the used homes that need the most work second rates are too high for owners of existing homes to want new homes because they'd swap out of their existing low interest mortgage for a much higher interest mortgage and third if you read between the lines home depot's customers are being heard as they switch from goods to services because the cost of contractors has been one of the biggest drags of all see that's that's one of the most core customers the contractors it doesn't pay to alienate them but uh pretty much every homeowner knows that this shortage of contractors has kept prices far higher than you'd expect remember housing prices are something like 54 percent since 2019 and shelter remains one of the stickiest stickiest sources of inflation out there one that the fed just can't seem to be I don't see contractors rolling back their fees anytime soon one bright spot when the weather was excellent home depot numbers pretty soft it's incredible that weather can trump interest rates but maybe people feel better about renovations when the weather's good or maybe the spring gardening season is really booming already either way it gives us hope that the numbers can improve if the remaining part of spring gets sun now the homebuilders all screamed higher today led by toll brothers which are partially 21st again because bond yields were down off the tame cpi reading it's a big chicken and egg game though all the homebuilders are nervous that rates won't come down they don't want to build too many houses if rates are staying higher for longer the current mantra because it's horrified they're going to be stuck with excess inventory in that scenario and the gross margins are going to plummet so they build for fewer homes than we need in this country that in turn fuels higher margins and a higher stock price basically the longer interest rates stay high the fewer houses get built which keeps home prices higher crazy and this environment now puts like home depot or Stanley Black and Decker CNBC investing club name that we had on the show yesterday need to hope that people just get so sick of how their homes look currently and feel they have no choice but to renovate because it is don't like the way things are and that's why rates must come down for something like home depot to have a longer range rally oh you know what it is a tall order but there are enough signs of a weekend economy the brown shoots that this one could still be a winner because the fed needs weakness before it can cut so if you own a housing stock i'd say stay the course as long as you know what you're up against and told with the stock up seven dollars and fifty four cents today doing new high they are the best at what they do i'd like to say this is a reasonable market somewhere i promise i'd find just for you right here man money i'm juke cranberry see tomorrow let's go start 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 forward slash mad money disclaimer imagine earning a degree that 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