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 5/20/24
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a finder baseball cap and then I put it down and not on my head but right on the desk my day job on the set of squawk on the street I wouldn't put it on as I concerned about a jinx if it was in the way when the doubt dipped under 97 points a day it was yes be it's a 0.09% the NASA game point six five percent nice game they're led by the semis but I don't think not wearing the hat was about a jinx it's something else that's a lot more pernicious frankly you see way back in the 80s and 90s we celebrated each millennial milestone on the way up oh they were hard thought sometimes we seem cracked like when the doubt was stuck in the 2000s from July of 87 till January 1992 a crash like we had in October of 87 can do that sort of thing there are other times we just breeze through the milestones lots of hats on those with beautiful days up then came the turn of the millennium and while the Dallas somewhat held in there the seventy five seven percent collapse of the Nasdaq was too much for people to handle a whole generation of investors vanished many never came back those that did came back they got crushed by the Great Recession when those round numbers reversed reversed hard cut by more than half at the bottom that's when I gave up on the hats what goes a hat for Dow 14,000 when the Dallas is 7,000 yet did get that gloomy before March of 2009 now alone I'm beginning to rethink my negativity about the hat what is so bad about celebrating the immense wealth creation granted I know that the Dallas and his representative is the SB 500 no kidding but it still resonates why embrace that yes my deus first it has been almost 20 years since the Great Recession that the climate was bruising this we have what was known as systemic risk in the entire economic system was in jeopardy as I surveyed the landscape here I just don't see anything like that happening now you could argue that we didn't see it the other time either but oh contrary a lot of people saw the financial crisis coming I was screaming about the danger you know nothing back in the summer of 2007 for heaven's sake that was so long ago that two new generations the millennials and Gen Z may have forgotten it away with a you know some of these guys Gen X but maybe it's ancient history however these are people who for the most part still have a very negative view of the stock market in the financial future I think they want to make money in it but they don't know how maybe they need to be lured back in by being a little more positive that's really the issue we my generation the baby boomers have closed the door well from pictures the last generation that genuinely believe that we have it better than our parents I wonder if by not even showing interest in doubt 40,000 am I doing my job maybe I should demonstrate some confidence maybe this market deserves a little positivity second okay there are 30 stocks in the Dow it's not a lot diversified the winners for the last 10,000 points they were diversified American Express, Caterpillar, Goldman Sachs, Merck before the top five stocks JPMorgan William where CEO Jamie Diamond told people that his succession is well underway finished eight he says the timetable for retirement is not five years anymore that plus a decision to limit buybacks at high prices because that's stuck to tumble nine dollars or 4.5 percent today what matters to me though is that Dow 40,000 was a team effort not just tech the biggest worry surrounding this market is that it's been led by a handful of tech stocks but this workhorse venerable index is truly diversified enough to show you that many areas of the economy are still doing very well these stocks should have been hurt by the feds 11 straight radox they should have been crushed by the inflationary spiral they should have been annihilated by supply chain problems during covid none of that happened again maybe give me the doubt 40,000 that third's the biggest issue what the heck is the matter with celebrating when stocks go up don't we want to make money don't I want you to make money we have so much negativity that surrounds us we're drowning in it all of a sudden something positive falls into our laps and major milestone has passed does it really makes sense to scoff at it 42 years ago with the doubt hovering in one thousand eighty I came down here right down the block started my life long obsession advising people own stocks I was surrounded by people who told me that I was out of my mind for one to recommend stocks I had people tell me I was going to crush everyone by telling me this talk or that stock was worth by when the market was a giant joke when I got my chance to do something extra what happened I was inundated with words of caution from people who knew a heck of a lot more about the business than I did they'd say seen recessions take place in a piece of resonations they didn't buy an around Reagan's entire uplifting rap Hollywood actor what do you know so what happens well first the Dale drops back to 77 or 1682 applied to work in Goldman Sachs because I really believed I'd be right as one of the few people applied I got hires the summer social in eighty three when the Dow was back over one thousand I felt like I was in Jellystone National Park down here all kinds of bears bears on tech bears on finance bears on bonds bears on the government an area bull in sight but the stock market well let those people behind except for a couple times when the bears were in charge you got to admit that when you get a run from 1000 to 40,000 they're a little celebrating or ended are we supposed to be as underconfident negative as everyone was at that one thousand should we not be skeptical but we but but but be knew us should we be knew us who believe in nothing something not the idea that stocks deserve to be at these levels that they should be much lower if these prices are real and it's all out coming no benefit of the doubt for the bulls okay we don't need to be cheweders but we do need to acknowledge reality acknowledge that the market however temp early got to these levels that they're not exalted they're just higher than they used to be and that's because the companies these stocks represent are doing so well that they can make you a ton of money if you sell some of these stocks right here if you want to take profits you can you aren't going to knock these leadership stocks down with your selling the prices are the prices to be incredibly oxymoronic yet realistic about it so maybe bring one of those hats I'll wear proudly for what the Dow has accomplished not what it will accomplish we went from one thousand and forty thousand I can bear witness sure we can go down we went from one thousand seven hundred seventy seven when I got started I could have tossed down one thousand hat going to become a lawyer I didn't write call here's the bottom line I'm not asking for noise makers champagne here no trophies but a baseball cap without forty thousand on it hey lose two zeros and that's where we were supposed to be if I listen to my bearish betters forty-odd years ago turns out my betters they know nothing Miller in Colorado Miller hey how's it going today Jim this is Miller an Allen call from Denver boo yah how you doing I am doing well how about you what's happening I'm doing well hey first time on the show I wanted to ask you about Ali Baba stock you know it's had a cheap valuation for quite some years now you know pre-cash flows improving just wanted to get your thoughts on the stock you know and risk that investors should be aware of you know I was talking to my buddy Dave Tepper he's got a huge position he was one of my thousand bosses that I had at Goldman and we both admit I mean this is just one of the cheapest it's the cheapest stock in the world cheapest major stock in the world if you can stomach owning a stock that is from China buy it it's what I have to say and buy some work that goes down let's go to Tom in California Tom boo yeah Jim oh yeah Tommy on that you're going to do the lead over the years thank you my question my question is Tesla I sell or hold great question it's a what I call a down stock there's the preponderance of people come in do want to sell it I don't want to bet against the stock down here at 174 but I would buy it in scale that would mean buying let's say 100 you buy 25 year 25 the one at 150 25 125 not 100 25 and then 25 and then 25 at 100 that's the only way I can recommend it because it is a falling knife right now and Indiana and hey I'm a grateful club member thank you for everything thank you hope you like the pieces we get about yes and video yes but I'm still back on the piece you know about cutting your losses or battling a stop yes anyway thank you for that thank you oh yeah constellation energy you know you do the piece then I hear you know it's like your prestige then you know there's dows Jim fitterling and then there's a herd on the street piece Friday in the Wall Street Journal yada yada yada right what about starting a position up here I'm for it I'm for it we've done enough work with CEG and with Joe Dominguez to recognize that this is the the power company that the all the type of scalars one it's the cleanest power it's nuclear power and even though it's run incredible mount I think it can be bought let's go to Paul in Florida Paul oh yeah sir Jim it is Paul from Florida there we go and we we've been listening since 2002 so our question is this what are your thoughts on monday.com symbol M N D Y and have you looked at the options well I know a lot of people feel that it's going to get a take over bid I can't acknowledge anything I don't know anybody take over but I do know this my monday is a very good salesforce.com many salesforce.com I you call maybe a junior salesforce.com is the way to put it and they're very smart people I would not bet against it okay maybe I have to bring me one of these I don't know the doubt 40 that doubt 40,000 I'll wear proudly for what the doubt has accomplished I don't know what I'll do in the future but I do believe that we must have faith it's the right call or mad money tonight contour brands has been out wearing the the apparel sector so I'm finding out what's making the parent company of me and Rangler fly up the shelves then should you be all aboard the region cruise lines I've got the CEO to see if the company's latest put a consent and sell it hard and Palo Alto earnings across the tape after the bell and sit down with the cyber powerhouse CEO to find out more because once again it looks like well let's just say another tough day. Stay with me. 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 Fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution and borrowing everything costs more also a fact smart businesses are reducing costs and headaches by graduating to net suite by Oracle net suite is the number one cloud financial system bringing accounting financial management inventory and HR into one platform and one source of truth with net suite you reduce IT costs because net week lives in the cloud with no hardware required accessed from anywhere you can cut the cost of maintaining multiple systems because you've got one unified business management suite you improve efficiency by bringing all your major business processes into one platform slashing manual tasks and errors over 37,000 companies have already made the move see how you'll profit with net suite and then you can think of all the ways you could be spending the money you save company retreated Malibu anyone by popular demand net suite is offering a one-of-a-kind flexible financing program for a few more weeks head to netsuite.com to start saving when you're hiring the best way to search for a candidate isn't to search at all don't search match with indeed indeed is your matching and hiring platform with over 350 million global monthly visitors according to indeed data and a matching engine that helps you find quality candidates fast use indeed for scheduling screening and messaging to connect with candidates faster plus 93 percent of employers agree indeed delivers the highest quality matches compared to other job sites according to a recent indeed survey leveraging over 140 million qualifications and preferences every day indeed's matching engine is constantly learning from your preferences join more than three and a half million businesses worldwide that use indeed listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at indeed 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 this is generally a tough time for your power space but some companies are doing a lot better than others take contour brands the dental specialist best known for Wrangler and Lee jeans over the past 12 months this talks up more than 75 percent while it's told to begin 2024 the company reported a great quarter at the beginning of the month contour delivered an excellent beat and raised set of numbers that sent the stock up 8% in a single session it's not nearly 15% is the quarter how are they doing it or today contours the nearest talk exchange to celebrate the five-year anniversary of their spinoff by VF Corp their former parent company and we got a chance to speak with Scott Baxter he's the chairman president and CEO take a look so first congratulations five years tell me the journey oh Jim it's been an incredible journey of five years through a pandemic supply chain inflation all of the above but we have survived and we have thrived and our company is doing really well thanks for having us on today of course now the the Wrangler leave it I knew when I first met you and before radical change and the radical change is both on the gross margins which we care about on Wall Street but also the utility the doors the the direct to consumer these have all gotten very hot yeah we've expanded our D to C business in a significant way we've expanded our digital business in a significant way and we've expanded our categories we're in the outdoor business now we grew our outdoor business in these last five years from 100 million to 200 million we're in the t-shirt business now when we're our own company we have permission to do the things that are accretive to our balance sheet so we're doing those things because what we make we pour into our company well I also want to point out from our point of view pour into the dividend which was our viewers like just took a nice increase in the dividend as you saw buying some stock back this last quarter too so real pleased with how that's going all right let's talk about the positioning of Wrangler uh those who follow country music have suddenly discovered your brand even though it's always been a great work brand yeah well Jim I will tell you you know we've been in the country music business since 1947 when Wrangler came out so it's been a brand that's been around forever but we are number one in denim we're number one in bottoms we're number one in tops and hopefully you saw this week one of our star entertainers that's part of our portfolio lainey wilson had an amazing night at the academy of country music awards winning female artist of the year and then artist of the year so congratulations to lainey and and we have a collection kicking off with her in the fall where she's helped us design that collection so we're really looking forward to that launch okay now this is the kind of thing i really want to hear because i've always felt these are two solid brands very under managed previously but i also want to just talk about uh sport and work uh i am an at gica i don't know why i just found but one of the reasons i am is you're cheaper than another brand called car heart but i think every bit is good it's not better so you're doing something maybe it's the project genius i don't know how you're getting there but the stuff is superior i want people to know that we're running a really good business we've got a really good team you know we we just put our nose to the grindstone and work really hard but from an atg perspective we think about it like this that Wrangler brand being attached to atg brings a lot of consumers into that marketplace now they like us for that but we've always been known jim for being a great brand with incredible value at a price point that every consumer can participate with us well it's funny the frugal consumer these days they're looking jennaks at gen z they go to google right and they walk and you come in cheaper than everyone in the space so you must be taking a lot of share we've been taking share now for about eight quarters and we talk about it on our call a lot and so it's been very significant we've been very pleased with it as you can imagine we've got really good channel partners and we've got really passionate consumers plus some of the things that we're doing around collaborations have been really successful well speak to me about that because that's something new too yeah so for instance we've got stout our women's collaboration right now we just did daydreamer we just kicked off our new league golf line you know we we did some insight work now that we've gotten past our erp so if i can give anybody any advice don't spin a company off and do an erp implementation at the same time and then have a pandemic but we got through that so now we can think about our consumers much more intelligently and one of the things we learned was our male league consumer over-indexed to watching and playing golf so we kicked off a league golf line and it's doing really well fantastic in the meantime let's talk about something it fell in your lap what you're wearing i know that you're not a fashion company but denim has become the most fashionable theme in women's closets and in department stores well i can tell you this one of the things that happened you know good and bad some good came of that pandemic and that is that everybody went casual gym yes you know offices buildings you know restaurants weddings it doesn't matter people used to dress up a little bit more but now it's very fashionable to wear denim you know we make a lot of great denim and a lot of different designs and styles and silhouettes and so we're catering to the customer we're giving them what they want right now because our team is really listening well that's going to be cutting in i think to athleisure and i know that you're not a denigrator of anybody that's not your style at all but i will say that one of the reasons i think the lululemon stock has come down a great deal is because what you're bringing the party well our consumers really like what we're bringing to the party and i think the thing that's happening for us is we're hitting other channels and hitting other categories and that is how we've been successful and we're starting to operate better globally gym which has been really important we've got a little time under our belt pandemics behind us a little bit i think you're starting to see what the company's going to look like post-pandemic and how it's going to operate post-pandemic well the animals seem to be uh wondering what's going to happen to china i'm going to go there just because i know that i think your brand can really resonate bigger than a half yeah we've done a really nice job through the years in china but then of course we've had a tough patch during the pandemic like most coming out of that now but one of the most important things that we have to do right now is refurbish our stores so we are making a capital investment right now as we speak in our stores 600 plus stores in greater china to go ahead and make sure that we continue to resonate with that consumer there okay one last thing in your conference call last you talked about green shoots for the uh the innovative platform but it sounds like i know that when i look at numbers people might consider me concerned well wait a second the industry itself hasn't bounced back but the green shoots isn't it happening it's happening right now i mean it's happening all around our business we're kicking off new products we've got a big second half plan from product introduction and our innovation pipeline has been very strong it's been strong for years and we're not slowing down well i've got to tell you i'm so impressed from the time i first met you and for the five years and what you've done it's really terrific that's godback's president care and CEO of contour brands what are my favorites i'm so good to have you in the show thank you probably heard of me here today anybody better coming up cruising for profit why it anchors away for this ship shaped stock maxed fact running a business is not getting easier on your wallet with higher expenses on materials employees distribution and borrowing everything costs more also a fact smart businesses are reducing costs and headaches by graduating to net suite by oracle net suite is the number one cloud financial system bringing accounting financial management inventory and hr into one platform and one source of truth with net suite you reduce it cost because net suite lives in the cloud with no hardware required accessed from anywhere you can cut the cost of maintaining multiple systems because you've got one unified business management suite you improve efficiency by bringing all your major business processes into one platform slashing manual tasks and errors over 37 000 companies have already made the move see how you'll profit with net suite and then you can think of all the ways you could be spending the money you save company retreated malibu anyone by popular demand net suite is offering a one-of-a-kind flexible financing program for a few more weeks head to netsuite.com to start saving lately a lot of people worry that the travel bull market might be on its last legs and in some areas the boom certainly seems to be deflating but only some areas parts of travel are still doing fantastically instead of the case of deruision cruise line holdings one of the major publicly traded cruise place earlier today in deruision held an investor day event right here at the New York Stock Exchange where magical had some very bullish long-term targets also gave us a terrific full-year forecast in fact they raised their full-year earnings forecast after already raised it when they're imported less than three weeks ago that's confidence and that's why the stock's up almost eight percent today can you keep running or should you use cities bounce to jump show let's check in with harry summer he's the president and co Norwegian cruise line holding vietta better in this is where commissioner summer welcome them everybody it's great to be here thank you so much for having me so it looks like those who think that that some travels on its last legs have to be wrong after you've been able to raise numbers and be so uh let's say a boy buoyant about the next couple years listen we see cruise the man continue to be fantastic you know we target the middle and upper tier income right consumers and they continue to be doing well in the current economic conditions great confidence great booking patterns great book position for the future now i think people should understand this is something that i knew uh ocean of or the haven side you've got an element that almost no one believes is possible in cruising it's tremendous value for what is definitely something that would normally if you were on land cost ten times that all right how are you doing listen we have a very efficient platform we manage our expenses great and we are super laser focused on delivering fantastic guest experiences what we do on Norwegian with haven which is what you're referring to it's our luxury ship with the ship concept great for multi-generational maybe the rich grandparents want to be in some impure luxury where they have all the amenities concierge butler private dining that they can like but still have the minis of of a big ship with lots of entertainment other dining venues lots of activities to do at night now i am quite familiar with ROI many of our viewers are but how about ROX rocks what is that you know it's a it's a new term that we've tried to instill throughout the company that people have a balance between return on experience which we call ROX and return on our investment which we call ROI and if we can balance those things together we can unlike a great guest experience and unlike great financial results well i can tell that there are people who are loyal to a fall Jason our director will only go on Norwegian we love him you should but there are people who just are Norwegian and there are people obviously who are world Caribbean people but what what defines someone who is Norwegian listen a Norwegian guest loves the freedom and flexibility that we provide we have wonderful ships all state of the art all well-maintained we have lots of different dining experiences lots of different entertainment we visit hundreds of ports around the world we take places we take people to places they want to go and we do it right we do the guest experience right i i also know i from my then 26-year-old who took a Norwegian cruise that the idea of who's on these cruises is complete i mean in terms of like what the all what older people might think younger people recognize that the cruise is is frugality and value and that means to them in a world where they're always worried about money which they have to be in inflation and difficult times it's the only way that can really have luxury listen we we appeal obviously to older customers but millennia and Gen Z is the fastest growing segment of our cruising right now that they're coming they're enjoying it they see the value for the money but they also appreciate the guest experience these are consumers that value experiences over things and the cruise provides experience now it seems to me that you're one of the reasons why you can be afford to be as bullish is it isn't like they're pumping out ships every single day there's a limited supply of the kind of ship that you have yeah listen there are only three companies in the world that build ships and i don't think there's any more coming online when there are only three companies in the world that build ships they can only pump out three four maybe five in a bumper year it's a three percent supply growth and when you are inherently constrained by three percent supply growth there's lots of room for pricing okay now i've followed your industry for very long time and you did something today that i really got a plug in for you had a captain speak which shows me that you are laser focused on what the customer's about because we're used to hearing executives but a captain spoke about what the experience is listen Patrick Dahlgren our captain yeah our chief of uh of vessel operations 25 years of experience in the industry he knows what he's doing he's not just a title of captain he actually captain ships i love that on ships for one of our competitors but but with us today he has a trip he's been a tremendous value add with knowledge expertise but also a tremendous a tremendous ally in changing the culture in the company now in the meantime you also using a i don't change the culture coming down a lot of people say well wait a second it's just it's it's everyone claims they have it but you've got someone who's really deeply involved in who's making it so that your whole cruise line is changing sure so we we have a resident expert sky kelly he does a great job for us he he's actually known in the industry he recently uh had a keynote address at a silicone valley conference that's how well known that he is but he has a vision he has a vision it's not just that he talks at conference but both both both on day to day stuff like marketing copy and website and translations and fixing things like guest interactions but also on on on more deep fundamental things like revenue management systems itinerary planning you know we don't have it all figured out you know we're still in the early i've followed your career for a long time you have a lot of things figured out okay but but thank you so much but but we are super focused that modest investments can have outsized gains on the ai and what what's important for us you know we we we're a little pedestrian but you've got the same revenue growth is as royal uh versus say 2019 but you're at 12.6 times 2020 for the other guys a little bit higher but you have less you're lower dead there's something wrong with this picture your stock i mean you the pieces acquire but your stock should be higher you know listen we're we're happy that the investor day that we had today was acknowledged by the market like you mentioned our stock's almost 8 percent listen i think we had not put out long long three-year targets the other cruise lines had we put out those three-year targets today we believe they're a compelling uh a compelling message to the market 245 of vps 12 percent of ryc delivered by three turns and returned to historical margins we believe that the combination of those fee factors unlocks value for our share and that's important because you do have debt come to us look at the interest is benchable 1.7 for 2020 24 20 25 1.3 but you have no problem that no right no no problem paying that listen a lot of the debt winds up being refinanced anyway right the debt that we have to pay out of pocket is about eight to nine hundred million a year we're generating close to two billion a year even more in the out years in terms of operating cash flow we have the money to pay down that debt get that the lever have a strong balance sheet and continue to grow the fleet great investor one last question did you ever for a minute in the depth of covid believe that you guys wouldn't come back that's a really good question i'm sure there may have been a minute but we worked really really hard a word i won't use on tv we worked really really hard to get to where we are today and i'm proud of the team and everything that we did well you should be congratulations you know we've been in the back of yours for many many years and i thank you so much my daughter had a good time thanks you Jason our director thanks you Dylan thanks you we're big cruisers are on t we'll come back soon absolutely that's harry summer's presence you know Norwegian Cruise line Holies and clh and bit monies back in front some would say here we go again Palo Alto network supported for the close today the third straight quarter the leading cyber security firm so it's not get clobbered but as i have told you repeatedly the immediate reaction is not always the right reaction what happened this time when you look at the quarter virtually every line item is great even better management raised every line of the four-year forecast one flying the one that Palo Alto's quarterly billies came in at five million dollars weaker than expected now by the way that's million with an M it's practically a rounding arm and that was enough to question stocking after hours trading if this is anything like the last two quarters the poster needs pulled back could turn out to be a terrific buying opportunity but you know what don't take it for me let's take deep with nikesh sororries the chairman and CEO of Palo Alto networks four and more mr. Roar welcome back to me have money Jim nice to see you again okay nikesh people are selling the stock right now and i want you to tell me why those people may not know as much as they think they do well Jim we just came off our earnings call and all i can tell you is we had a better quarter than i expected we had an uptick faster than i thought we were going to and part of that was we went out with this idea last quarter that we're going to platformize our customers because we discovered and we shared this with the analysts today that our ARR for customers we fully platformized goes up by a multiple of 10 to 20 times so that became the right strategy last quarter we did 65 deals this quarter on platforms i didn't expect 65 and i need to do about 65 to 70 for the next five years we had 15 billion dollars this came out of the gate really fast and part of this was something you've talked about we had some large breaches out in the market we had we were called in to go help fix those breaches that allowed us to generate tremendous amounts of opportunity for ourselves but it was an amazing quarter i think that billings is a broken metric in the market people have to explain that because obviously the people who are selling disagree with you and disagree with me because i don't think those are the correct way to look at your company i think i look at backlog i look at rpo those seem like a better way to judge but these people think that this miss and it is a small miss should trump everything that you're saying well jim our rpo grew 23 percent it's been going over 20 consistently for the last three years our implied bookings which is the amount of business we get in ticked up from 10 percent to 17 percent this quarter billings is purely a function of which customers i choose to take money upfront from and which ones i agree to annual billings my business is there the cost of money is an issue i choose not to take all these customers and start financing them i say fine you can pay me when you're ready and that causes a billing metric to get jolt around our revenue was great our profitability is amazing and our rpo is amazing and our free cash flow markets are great so i don't think there's anything wrong with this port i think that some people don't seem to think it matters that in the biggest hack maybe of our lifetimes unfortunately united hell uh they called you it is now i think called somebody else and i think the conversation would be like how come you didn't get that call but that somehow the five million is more important than the biggest crime cyber crime maybe of our era how did you get that deal well jim like it is a strong partnership we have with them and we worked really hard with them we worked really hard to make sure we could connect all the pharmacies back get healthcare working back in america again that allowed them to get confidence with us in comfort with us that what we had was what they needed they had a large vendor sprawl that allowed them to consolidate allowed them to put everything on the next generation capabilities that allowed us to have our largest deal deal in the history of Palo Alto i mean there is another hack out there uh which is also in the health care industry where they have also declared on the website they've called Palo Alto and and you do not know that that news has not broken yet another health care tab all right well i'm gonna have to i know you probably can't disclose it i'm gonna have to do my do my reporting hat and figure out what that was about let's do some reporting on this IBM deal what does it mean what does it mean in numbers because people don't seem to think it matters for reputation i do what are the numbers say well jim as we said on your channel now your show a few days ago arbor then i came together and said look this is an iconic deal in the history of cyber security it's something IBM hasn't done ever they have gone all in on a Palo Alto portfolio of cyber security products they've decided to take their offerings merge them with our offerings and sell them to us so we are now will be the owners of qradar sass which is their sim product or saw product which is a product we launched 15 months ago and that's a product they're going to now sell for us a thousand people that IBM are going to go sell that product with us we paid 500 million dollars to acquire 100 million dollars of business which they have in sass and also the option to go ahead and migrate as many of their on-prem customers onto our platform their on-prem business of course is multiples of their sass business and i think that's amazing it puts us squarely in the top three players in socks where we are not a player 15 months ago this is a market which is fully driven by i i that's the solution we have delivered to the largest health care provider in the united states can you tell me uh there's major opportunity for cyber security in washington uh with thunder dome i would think that you are certainly part of the uh of the picture there yes so uh we've said that last quarter we were the ones who were qualified as thunder dome vendor uh and then it went through its own machinations but what has happened recently is with a vpn uh zero-day vulnerability that came out a lot of the missions came back plus and saying listen we already have a framed contract with paul auto can you help us get this vpm out and get paul all to end so now we're working our way back into all those missions to try and get the prisoner access solution deployed and as i said it won't happen is one big deal but it's gonna happen over time and we'll get our fair share and that mark you have to tell you last quarter was a miss and i was upset about it i when i saw these number i wasn't upset i said he did what he said he's gonna do it more and i just sit here and i think all right so because that stock was pushed again on friday because the stock was pushed relentlessly into the quarter i think that there were people who got a little too bullish versus a great quarter that's how i look at i don't have any other way to look at well jim as i said you know we've seen this recovery much faster than i expected we are very excited about the upcoming pipeline we're into our biggest quarter into q4 we see tremendous amounts of opportunity i have personally inspected the top 500 opportunity that but also for the last 90 days there is tons and tons of opportunity i think our strategy of getting platformization as a right strategy this market and cybersecurity needs a platform like we have the workdays the service now is responsible we aim to be that platform we aim to be the first 15 billion dollar yeah our company inspired security and i hope we get okay so what did the size sisco's blunt deal mean for you is that an opportunity and you know i like both those guys but it is an opportunity for us because that reaffirms to the market that you need a large ai-enabled data lake to be able to deliver great security outcomes which is exactly where our xi and product is targeted as customers you know we'll see mna see acquisitions they got a little nervous they started looking at optionality and we hope that in that optionality we will get a chance at going in there and showing our capabilities improving our worth and we should be able to get some market shares for that all right now i do have to go back to this healthcare because this worries me is it a what is it another health insurer that got hit i mean if i i personally have been hit by one of the ones that it been that i've been hacked and i know what i know what's like to be hacked and people call you endlessly pretending they know your stuff is it going to be another one like that where individuals are going to be hurt where individuals are going to get called because they sold the information to the bad guys no jim is just it's out of the public domain it's just interruption of keep some health capabilities which are trying hard to work fast with our client to make sure we bring them back up and running so we can continue to have okay great healthcare and can you tell i'm look you're not a be to see not to cuss but what do you tell a person we're all getting these calls we know where they're from they're emanating from people who bought this information from a major health care insurer and you're getting calls telling you that you're entitled a certain program it's all stemming from the storm that when will this end when will people go to jail well jim i think uh we are seeing more and more enforcement lately we are seeing the various agencies the government start to coordinate so i think i'm hopeful about the enforcement actions the government is able to bring we have seen in certain cases that they've gone ahead and thwarted the attempts at ransom where so i'm actually in a cautiously optimistic about what's going on from an enforcement and a sort of organization organizing perspective in terms of how they are unfortunately i think the hacks are here to stay i think we are going to see more and more hacks going into the election i think we're going to see more and more deepfakes more and more ai being used to try and scam people it is the wild west as far as the use of ais concerned so all i can recommend everyone is double check everything make sure you're sure that who you are talking to is the person you're talking to and make sure you find other ways to validate that this is a real call or real engagement that you're having okay we'll walk the cash thank you so much for coming on the cash reward chairman seo palo i thought there was look this isn't like last time but you can go sell if you want i don't care i'll buy it from you may buy it back into the break thank you okay this time i'm gonna let him over that for about one more time this looks better but i don't care really ever play this out and then the lady when i was over are you ready to keep that double i'm going to throw him a game in Michigan game hey jim how you doing i'm doing well but you get good thank you hey a long time long time viewer and club club member here thank you uh looking at uh i think we agree and this company um with the uh the outlook of added lab that hold it by more okay the the outlook is fabulous there is a lawsuit in july that uh involving formula the its competitor rec if thank you's your lost the case i think that this is not going to be a big deal but it doesn't matter people know what happened with j and j and they're scared we're waiting till at least it gets to par or 100 to be able to buy more but we believe in the company let's go to tony in Illinois please tony first turn one time jim gotcha what's happening i got to give you a man side tone booyah to ya fantastic booyah i mean one of the best one of the best today what's happening so i'm going by a stock that i see describing a discount uh poor man substitute for vm wear um in march and april it traded about sixty six seven pounds about ever closing in then all of a sudden it's month it's about twenty percent it's uh 72 um you think you can come back in or where is new tannics gonna go well new tannics is what the market wants right now it's enterprise software uh enterprise cloud platformers people can't get enough of it they don't seem to care about the valuation they just buy buy buy i i have too much discipline to recommend that stock at this level let's go to mitchell in texas mitchell yo jimmy too yes i chillin how are we doing today this is an extraordinarily good day how about you oh wonderful hey i got a great talk for you at least i think they reported 10 percent same store sales for last quarter the stock's been absolutely rocking over the last month and i think it's a good one what do you think about touch growth i completely agree with you ever since my daughter introduced me to bros back in 2014 i had been a confirmed user and a buyer of the stock the recommender of the stock for you it's a little bit uh junior to junior for my trust but i really like it let's go to joe in new jersey joe hey mr. Kramer thank you for taking my call thank you joe what's going on hey about two years ago i sold this stock at around twenty eight dollars a share on your recommendation and made a small profit it's come down to around thirteen dollars a share and with an impressive two four result is canada goose a buy okay i'm going to tell you i'm going to put my trading hat on when i see a company report that kind of number that good and it doesn't go up i say ain't nothing going to get this thing going let's stay away let's go to san jeevan taxes san jeev hey booyah jim i've been happy for years and i have to say thank you so much my i watched you from when my daughter was in diapers and now she's in college you really watches for her love of stock oh great great great day that just made my day thank you how can i help now thank you very much and to the stock i'm interested in uh to get your take on is mira gtx the symbol is m as a married gtx it's okay now this is the kind of this is my view on that kind of stock it is a worthy spec you want to be there because it's limited downside and some nice upside and that laid in double conclusion of the lightning round the lightning round is sponsored by charl schwaub in a normal market stocks trade on earnings expectations you beat the expectations you raise your forecast and that forces the analyst to boost their estimates and then your stock goes hard if you beat the expectations but leave your forecast uncharged your stock goes down because that's not good enough and woe to the company that misses the one or both you might as well be delisted oh it's a tough call but one that the whole market needs to run through every three months most recently microsoft gave you an outstanding beat and raised court as in netflix alphabet their stocks were met with jeff propulsant they haven't looked back how that happened simple the key ingredient is that wall street's expectations stay low while business accelerated beyond what anyone anticipated sometimes when i see these moves i think that we're actually getting the quarter today that the analyst didn't expect until next year which brings me to wednesday when nvidia reports now you're going to be expectation for video incredibly low at least in retrospect the analyst didn't see the demand from amazon alphabet mike salt and oracle they didn't expect the infinity could charge as much as it did for its high-end ships they didn't believe the company could meet the man even with lots of help from thaiwan semi they just didn't see it coming allowing ceo jensen wong to deliver one of the biggest upside surprises in history this time though i hesitate to even watch what about to happen because i'm quenching on folk trepidation i still love the video the company of course but the expectations are much much higher than i like this weekend i wrote a pitch for the investing club about the golden quarter these guys reported a year ago now the analyst have extrapolated from those great numbers and they keep saying incredibly positive things about what's coming it's almost like a video some artists that just got discovered last year and his paintings are going up and up in value every quarter it's ironic you know something i call jensen wong the modern day da Vinci because he's a renaissance man with an uncanny ability to see the future the most valuable painting ever auctioned is salvator or monday by the original da Vinci that's an apt analogy if you believe the process of value socks is static then it's based on something absolute but in reality that's not how it works jensen's piece of this moment is the iphone moment for ai was June 19th 2007 a good time to short apple was the split adjusted four dollars in change a great place to bet against that company i don't think so given that socks now 191 i would say it was a spectacular buying opportunity he compares it to when microsoft combined with intel to make a terrific personal computer that was a gradual process but they were full swing in 1990 when microsoft traded at just one dollar in change on a split adjusted basis by after he also compares it to the steam engine which is a tougher quote the poll but news is a change history buying after and maybe that's what's happening here not a beat and raise quarter but a change in history hence why i always tell you to own a video not trade it i've said it for years because i believe ai will change history just like the iphone or the pc or the steam engine i wish i'd simply stayed along the pc players for my old hedge fund not traded them endlessly as i did something i stopped doing by the way when we bought microsoft for the child trust i didn't start making big money at apple until i stopped trading and just sat on the drawing thing and you know what i feel the same way about nvidia why did i trade in and out of those stocks in the old days because every time they caught fire i feared the expectations i thought they had gotten too high i worry about that now with nvidia but only from a short-term perspective for those of you who system buying today want to get out wednesday evening the ai revolution is ongoing it can last for years look how long apple's lasted since they changed everything by going hand out of course apple stock has stumbled many times during that period and the nvidia story might appear to be over on wednesday if they can't keep up with the expectations i'm sure someone pulled the plug but if you believe in what they're doing it's just a bump in the road so i say forget wall street don't let your expectations near term get too high see that's the real danger i like to say this always a bull market something i promised i'd buy it just for your money i'm jim pamer see tomorrow this ball starts now all opinions expressed by jim cramer on this podcast are solely cramer'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 cramer on television radio internet or another medium you should not treat any opinion expressed by jim cramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion cramer'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 take your business further with a smart and flexible american express business gold card you can earn four times points on your top two eligible spending categories every month like transit u_s restaurants and gas stations that's the powerful backing of american express four times points at up to one hundred and fifty thousand dollars in purchases per year terms apply learn more at american express dot com slash business gold card 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