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 5/22/24
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 house distributors and distributors homes dot com knows that when it comes to home shopping it's never just about the house or condo it's about the home and what makes a home is more than just the house or property it's the location and neighborhood if you have kids it's also schools nearby parks and transportation options that's why homes dot com goes above and beyond to bring home shoppers the in-depth 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it today we got the minutes of the Fed meeting from April 30th to May 1st I know these are now rearview mirror pros but Wall Street obsesses are anything the Fed does and when the ministry reflected a harsh review on inflation the market got clocked without telling 202 points SBC can point you said that's a climb point one eight percent now we've been doing fine today until these remarks were released and then we had the sudden drop even as the minutes reflect negative data long since forgotten now what the heck did the Fed say three weeks ago that could scare the market so badly look these Fed officials were lamenting that inflation hasn't come down fast enough and might even be ticking up ever since the Fed pivoted last fall into a stance of normal rate heights which then causes stock market to up well the Fed's been waiting for inflation all over today's minutes indicated they've become impatient with the pace of decline they were hoping to go down faster he so is everyone else but in the three weeks since the Fed meeting occurred guess what the minutes at the meeting reflected everything's going the fence way just consider these inflation wins post we do we got a labor report that indicated the economy was cooling wages to stabilize usually important report and if the Fed had seen these numbers at the time I bet they would have been all it would have been a lot less hearing the minutes might have actually been positive after that we got a core they expected some price index reading then we had a dramatically weaker retail sales number much lower than expected again I think the Fed officials would have sung a different more positive tune if they had seen these numbers ahead at the time of the last Fed meeting we were dealing with nascent commodity inflation oil and spike copper broken out now oil aided by surprise training of strategic drilling reserves it looks like it's breaking down copper which had been on a furious tear some say a short squeeze got pancake today that matters because copper doesn't spike unless the global economy is really heating up copper's used in housing especially in China and electric vehicles and data centers traders use free port Macquarie FCX as our largest copper producer proxy for it's been straight up until today when the stock was down more than five percent I'm not concerned about copper to button all you guys do is dig a little more yeah oil and copper going the fence way so how about the consumer two-thirds of our economy is based on the consumer consumers been so robust I'm sure there's some incredibly frustrated people to fit you can hear them saying what will take to get this consumer to stop spending is there any price that's too high for them or if they become so accepting of inflation they just don't care and won't rebel and that is the problem that we've seen with countries that have embedded inflation when these officials look to the consumer three weeks ago they probably felt like the Fed should never have stopped hiding because without a pullback consumer spending we can't beat inflation particularly when we have such good job growth I know the various Fed governors and regional Fed presidents love to give speeches and interviews they love the limelight they certainly aren't shy some of them may be gasbags they all seem like failed actors and actresses but if they take a moment from speaking actually look at the companies that are leading indicators they recognize that they're finally winning the worry with the consumer spend too no victory lap but we're getting nascent signs that enough is enough there's some bar strikes let's take Walmart for a great quarter in part thanks to its booming grocery business remember the largest gross in America and their sales are extraordinarily strong maybe too strong what's driving that when you dig when you come up with that after years of seemingly endless price increases the consumer has had enough the consumer is now staying more at home unless you can offer me some sort of deal an 11 bucks steal like a Texas roadhouse or bringer's chilies I'm just going to go to Walmart throw in a couple of stakes on the trigger maybe the Weber especially now it's nice out people want value now Walmart's one of the few that are offering it's happening right now hey TJX was doing really terrific you don't do really terrific TJX unless you're saying you know I'm not going to Macy's although I like that Macy's quarter what else apparently the franchise he's a big Donalds are browsing at the company's forcing a five dollar value meal down their throats I'm sure there's some areas where there's no resistance to higher prices but those are exceptions when you look at McDonald's as a whole it's clear people have had enough of their raising price too they need that five dollar value meal produced traffic I wonder if the feds heads have spotted the cheaper burger and cheered it it's part of the overall buyer strike they had a swing by McDonald's could be good for them well here directed from the source the biggest restaurant supplier in the country tonight Cisco and I think they're going to tell a story of newfound resistance to higher prices and now how do I say that because listen to what CEO Kevin Hurricane at this analyst they said and I'm quoting it is our belief that restaurant menu prices have impacted foot traffic and this is something it needs to be addressed more broadly by the industry end quote he goes on quote the industry needs to take action to improve affordability for end consumers end quote hey come on that's the budding consumer rebellion now we're not seeing a buyer strike just yet everywhere last night told brothers reported very good quarters sold a ton of homes that million dollars pop getting to get that price down for a while tolls earnings are so juicy the company finally increases the ability of new homes stock popped on the news but then today the skeptics jump in mainly wondering wait a second maybe tolls are going to build too many homes maybe there's going to be some supply at last they question whether there's at last some resistance surprise at the million dollar market has been there for a couple weeks they think the housing cycle may be over so they want to get out of the best home builder for the cracks occur so the stock goes down 11 points or 8.5 percent oh and there's also the anecdotal target sells goods that are priced to the mohamar target delivers in-line earnings wal-mart give us much better than expected numbers exactly the consumer beginning to rebel target stock goes down 12 or 8 percent lose stocks been getting going down for ages but could that be the consumer opting for cheaper athleisure could be lose stock plums 23 dollars or 7.2 percent fed listen up there are suddenly buyer strikes all over the place now all of this actual macro activities vying for headlines with invidia and when the third largest company on earth reported delivered another great quarter a big top and bottom line beat management issue in better than expected out of the target quarter well the stock jumped in after hours trading even better for individual investors not as so the institutions they asked in 10 for one stocks but boosted dividend from four cents to 10 cents per quarter that which will actually be one sample share post blue the stock got a boost in after hours trading but not by an insane amount because in video well let's just say it's in the habit of blowing away the numbers oh and do apologize don't forget that chemical health care electronics and water company besides tonight's gonna split into three companies it's a huge win for ed green the now outgoing CEO and for shareholders like my travel trust tomorrow it will matter regardless of those meeting notes and i will certainly fill everybody in uh this evening of who remembers the club about what it means bottom line for the part of the market that isn't tech or industrials like DuPont for the part of the market that was consumer oriented today was a day when the fed won let's hope the fed concrete realizes that their inflation lamentation from three weeks ago may no longer be necessary if they don't and they stay upset about the prospects for deflation just when it's finally happening and we might have quite a few more days like this one why don't we start with josh and alabama josh hey jim how are you i'm good josh how are you doing i'm good thank you for taking my call of course um first time long time and a club member and i say that because i want to thank you and your team for all the hard work that you put in every day to teach us and cheer us towards financial freedom thank you and jeff martin zefima right now working on DuPont working on in video trying to bring it to you because that's what matters how can i help jim my question is about disney i've had a long position in disney for several years now and over the past couple of years i continue to add to the position as the stock has slid down into the right despite bob iger's return the company has has still had an underperformance in the market and understanding how tight the streaming market is do you think that the other revenue streams and including parks are enough to stay in the stock all right well you know um we got to blow out a lot of disney for for the club when it was it when it was higher thank you nelson pels for doing that although i think he doesn't get enough credit for actually moving the stock higher uh it's now all the way back down where we are inclined at one hundred dollars to buy more so if we're inclined to buy it in euro club member then you know this is a very good level the stock has gotten too cheap let's go to john in washington john buyad you me chills from beautiful seattle washington i am feeling chill i want to know what your thoughts are on rivian baby rivian okay my wife wants to buy one uh she looked at the stock price she says hey are they going to be in business i don't want to be written a lot of money coming at their way but i'm guessing since you wanted to lose it let's put it like that all right how about jackson in north carolina jack hey how's it going it's good it's good how about you doing pretty good all right good i want to be sure sounds good no problem all right so what do you think about the future of arm holding not the last thing report wasn't it wasn't the best but uh no you're right but you know what let's you know let jack let's give first of all the stock is up since rinde gave you that quarter uh second i'll say this about rinde man that he gave you a good price for that underwriting it is going of gave all the way up went all the way up and then gave back some but they are here to stay and that is uh maybe one of the highest growth companies i think it's a lot better than ball climb everybody's all crazy about ballcom i'm banging with rinde i think he's real good all right listen to me for the part of the market that is consumer right today wasn't they were the fed one and that's two-thirds of the economy let's just hope they realize that their regrets over replaced from nearly a month ago may not be necessary at this point in cycle we may have money tonight we have seen over a portion of a quarter before the bell and the stock shot up during all the time i but throughout the session there was buyers of more stock finished lower i'm sitting down in the sea you'll get their reef in systo we just mentioned the s y y time reported disappointing quarter last month so i'm checking out what is what's happening at that company giant restaurant supplier are they seeing let's put traffic and later snowflake ceos during me this will be fresh off the company's call i'm real fresh to break down what we should make of his tech quarter member techs do it well go into any stable craymer don't miss a second of mad money follow at shim cramer on x have a question tweet cramer hashtag mad mentions send him an email to mad money at cnbc dot com or give us a call at one eight hundred seven four three cnbc miss something head to mad money dot cnbc dot com take your business further with the smart and flexible american express business gold card it's packed with benefits to help unlock more value from your business purchases that's the powerful backing of american express learn more at american express dot com slash business gold card 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 three hundred fifty 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 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the stock open up really ten percent hitting a new all-time high short live field that i hit with a wave of profit taking only finish the day down a lot percent there was also an accounting issue that to me was frankly very meaningless but you know how people are with those things how do we miss them a pull off such a strong quarter why the heck did the stock sell off anyway i it is just the people are looking for a chance to ring the registry given how much the stock is run or do we need to be more cautious let's check in with Laura albert the presidency of Williamson over to get a better sense of the quarter and what's happened is albert what about the man money how are you i'm good are you okay well no i'm not good because you see Laura when i left to go to the dentist the stock was up 30 and when i got out and woke up it was down 30 and i still think it's the same company the whole time would you agree with me then it's the same company you can't worry about a day in the stock market but you know we're focused on what we can control and that's served us well over the long term and right now we're proving that we can perform in any environment and we can continue to increase profits i'm higher than people who expect it and this is a quarter that showed us that we beat we beat earnings we beat the top line guidance we took up the year but it's early in the year so we probably didn't take it up as much as they wanted but it's early in the year we got to give ourselves some flexibility well i think that's right i think you understand unfortunately it is a bit of a game we don't like to play it on mad money because we've liked your stock the whole way because we think that you do a great job and because we think that you're you have a your stuff has a look it has a feel it has a sense of quality that is not having it caught up with things that people are saying well wait a second there's a buyer strike i'm not paying those prices they are paying your prices yeah i mean we have a very different um competitive advantage than most which is that we design our own products and we have our own sourcing organizations so we're able to bring innovative products that no one else sells frankly in the market and bring them at better prices and better quality than our competition at the same time you did say one sentence that promotional activity is extremely aggressive but then you also said it's always aggressive so i mean i have to believe that the housey on days where you could charge whatever you want and it a long time ago you're still at a competitive business even though you do have that competitive edge look we're studying everybody's prices all the time and where we win is when we bring in product that's the best quality value relationship in the market and our customers seeing things from us that they haven't seen before and they're really responding we also know that you know the customer isn't shopping for as much furniture as they were because of the housing slump but they are you know still updating their homes they love their homes it's their biggest asset and so we've leaned into what we call easy updates things that you do to your house even when you're not moving and it's really important for people to realize as much as there is this you know housing slump if you will that it's it's we're not just a furniture brand you know we have seasonal holidays we have collaborations we celebrate life stage events and that's what's given us a lot of resilience even in what's a more difficult market well you broke up one of the taboos you said that this isn't historically an important quarter there's no holidays i mean there's no seasonal i saw your halloween stuff i mean it's got to be good for a couple of points it was that good each of the holidays have it except for this one take their time now you do have three weeks of the next quarter in the quarter and i think you said listen let's not play my hand on there that but i think it's been pretty consistently better is the way i want to look at it regardless of the seasons it's a consistency thing and what i keep hoping is is that the brands that you throw out at the end like the rejuvenation and and all the four brands that one day you'll say you know what these are brands that you need to focus on jim these are really starting to become a part of a major part of the mix anytime soon well every brand that we now have started off is a very small business i started in 1995 and you know the whole company was this is just a fraction of what it was and half the brands weren't even there more than half 75 percent we've built these brands we have people who are passionate about what they're doing who are entrepreneurs and that's a really important part of our culture is keeping that entrepreneurial spirit amidst a company that's a big operator and that you know everybody depends on for execution and so we do both and i think that's what keeps us really hungry for the win i think those work for why you're getting b2b i think the b2b tends to be a ceo who says you know what i really like this stuff let's just have it you know in our places at the same time i can't tell when you get a ten percent business business growth what it really means for the bottom line because you don't break out that group uh... with dave and busters jim sound properties mariot it's not because it's just not significant yet and one day you'll break it out or is it because it shouldn't it's just should just be part of the business in general well it is part of each brand so if you're buying you know from west elm it's it's in the brand and but at the same time you know we look at it separately to hold people accountable who are pushing those lines of business and you know we have the trade business and we have the contract business they're very different motions you know the the trade business is more like the consumer business and the contract business is more of an annuity where you get a big deal and then they have to replace they have more units and so it is slightly different that way but right now it's not big enough no okay so two things that uh... were that i guess got some of the being a bonnet one was you pottery barn not strong enough is big and then the other is this radish u uh... the furniture to me was just something it was the way you had to report it was exactly the way the accounting law say you have to report it with it was not meaningful but it didn't distort a headline is that fair well we were very clear in our headlines and uh... it was not material to any previous period and not material for this year it was that we over crude freight so we had a forty nine dollar true up that we caught and the minute we caught it we're transparent and mentioned it right oh no i look i'm please don't be defensible i'm just saying that i'm trying to figure out why the knucklehead sold it okay that's my job you don't have to do that you can keep selling the furniture i got to figure out what happened to stock as i i have a more pedestrian job but i do think there might have been some people say listen if potty barn doesn't maybe potty barns part of what's caught up in the the fatigue of buyer so to speak and i just need to know that no potty barns just business is usual that it's going to when it clicks and clicks there's a couple things to know about potter barn that maybe we weren't clear enough about first of all potter barn is a beautiful brand customers love pottery barn and we have great innovation that's working in that business the difference is that last year we had a lot more promotions and we have made a big decision that we're not going to continue to run that level of promotions hence the margin is higher and we are still really giving the customer great value but we're not playing this competitive game against ourselves where the price goes up the price goes down you can count on us for the price until the item is discontinued or is on clearance now that's a big difference in the way we're running the business and i'd say the second thing is of course you know potter barn is affected by the housing slump it's you know it's it does have furniture in it and that's industry-wide we're doing better than the industry but of course that's going to affect us and last year it was less affected so when you look at it on a multi-year basis really healthy business all right i think you put it so that everybody understands it and understands that it was a excellent quarter not just within the confines of the housing weakness but just an excellent quarter period i want to thank Laura Albercio of Williamson but Laura thank you for coming to the show great quarter thank you okay may have money to pack it for the break coming up stock your pantry with this stock shout-down on earnings when we return earning your degree online doesn't mean you have to go about it alone at Capelli University we're here to support you when you're ready from enrollment counselors who get to know you and your goals to academic coaches who can help you form a plan to stay on track we care about your success and are dedicated to helping you pursue your goals going back to school is a big step but having support at every step of your academic journey can make a big difference imagine your future differently at Capella.edu this certainly sees and we've seen a new dynamic the restaurant industry really everybody's leaning on higher pricing to make up for some lag and traffic there are some notable exceptions that have done much better by giving people value but for the most part i guess you can see the fewer people are dining out now that could be weak news for the food service companies that supply the industry traffic is what they're leaver to take sisco the largest global distributor food and related products to the whole food away from home industry i should say the much largest because they're so big today they held an investor day here in new york stock exchange and in addition to talking about the future drivers of the business that has been laid out their growth targets for the next three years now maybe wall street didn't seem to like all these things because the stock got hit but if you believe the restaurant industry is willing to cut prices and order lower and more customers or if it's just more robust than people realize it could be a buy-up to uh but i think we need to do the homework so let's take people with kevin hurricane he's the chair and CEO of sisco corporation remarkable back to my money Jim it's great to be here today with you okay so the takeaway of your investor day is basically that you've got a recipe for growth and it's working yep today we issued guidance to our investors for the next three years which which most people can't do yep which was anchored around uh sales profit and total shareholder return so we guided sales growth four to six percent earnings per share growth of six to eight percent and a total shareholder return given our strong dividend in stock buybacks of nine to eleven percent so i read the headlines and the headlines are are really a function of what stop where what where the stock trades the next minute and they were saying well you know what this is not what we wanted we wanted much stronger uh given the vicissitudes of the world and the what what people's habits might be would be any reason why you would take it even higher well we're focused on delivering against the guidance that we put out today we believe the guidance we put forward is achievable guidance and that we can deliver against it consistently over time now you did allude to what you made actually was a striking comment that i quoted earlier in the show which is that you said that uh there are there are moments right now where you think that things the prices have gotten too high too high and that that's going to impact people uh that there's a bit of a fatigue is that for everybody who's doing it too high because we know how good operators like i i texas wrote that i a brinker that they're doing everything the right price point if you have the right price point it still works if you have a value prep that your customer connects with your succeeding in this market but just in general we serve over 700,000 customers worldwide feedback from our end consumers meaning you and i go into restaurants is that menu prices are high right now what we're doing is what we can control at sisco to help in that equation if we can bring down our purchase cost of food we can pass on value to our customers and we have multiple other ways to pass on value to our customers and you have both ways to keep down the pressure of what you pat yes negotiating more strategically with our suppliers partnering for a long term with our suppliers to create value for customers in sisco brand jim we have a powerhouse brand of our private labeled product when we can convert an item for our customer the sisco brand we save them money and it is good for sisco as well but i don't want to leave that international me your number two share position and some number three position in a bunch of countries in europe now europe seems to be strong too all of a sudden europe from an overall economy perspective isn't robust but our specific business in europe is strong we actually grew our top and bottom line in our european business faster than the us mostly jim though that's more a self-help as some would describe it fair enough describe it we have an opportunity to really grow our business we call it running the sisco play overseas bringing our broader assortment modern technology for our supply chain easier to do business with tools from a digital ordering perspective specialty business which i'd love to talk to you about bringing that capability to europe and when we put all of those things together we're winning in a meaningful way over let's do that because especially he's got a higher molt you give a higher multiple and higher profit margin it also by the way is cheaper for the restaurant because it's already done you don't have a prep your prep kitchen guy who costs twenty two dollars an hour is not needed for these particular items exactly we're super pleased with our business results in our specialty business we've grown it from 3.8 billion to almost the 10 billion over the last four years and we've you another 10 billion dollars of growth opportunity on top of that and it's due to market share our market share overall as you know is 17 percent our market share in specialty is less than 10 percent so we believe we have an opportunity to get our specialty market share up to our total broad line and win with those customers what do we mean we say specialty specialty produce custom cut proteins we have a Greco-Italian business and recently an acquisition and equipment and supply is called Edward Don a hundred-year-old company that we recently acquired okay now i always think my restaurants i love the specialty business but i did not like the price i always felt that we could make very little money on specialty do you are these prices coming in under all the ones that you and i both know that they traditionally do specialty our specialty capabilities are providing value to the customer for bespoke custom cut products or unique products and we give our customer choice if they want the best possible price delivered one or two days a week we'll deliver that on a Cisco truck if they want delivery six days a week for a unique products with a late in the evening order caught off in a specialty rep who is an expert in that product there's a higher margin associated with those products and it's actually why financially we're excited about it it's a big growth opportunity and at a higher margin profile okay there's an outfit that i like they have good point of service sales toast and for the last couple once the annals have been saying you know what the restaurant formations have slowed down that that april not as many march not as many so far may not as many are you seeing fewer new restaurants for your new customers right there's a lot of churn in this industry is yeah no doors open doors close in aggregate what we're seeing is less foot traffic to customers we have an opportunity though to grow our business profitably by serving more of the customers that are out there so even in a flat to down environment Cisco can grow we can grow profitably by serving more of the doors okay so the truck comes every day what else could you put on the truck if you wanted to well that's where the specialty opportunity could not mean beyond food would you ever consider that i don't think we're gonna at this time talk about non-food okay such a growth opportunity with all things a kitchen needs which that does include equipment and supplies we just did a billion dollar type line acquisition with that we're done but it's about the things that our restaurant needs to be successful so even in our broad line business which is in the 30 plus percent share range Jim we have such an opportunity to serve more doors penetrate more with existing customers and to grow the business well that's why i think that you're getting the stock a little cheaper than you should because i think that you're naturally correctly conservative well who wants to do has some at the beginning of the year well i'd be aggressive doesn't make any sense to we want to put out guidance that we know we can be consistently excuse me deliver against consistently with an opportunity to beat over time and that's what we want that's Kevin hurricane's his chair CEO of Cisco corporate company i've used they are the top quality and they're also the biggest mid-mites back at the break coming up a blizzard of earnings Kramer sits down with snowflake after the break it's snowflake back on track after a couple months in the wilderness the last time we heard from the center price software and data analytics companies back in February they put a strong quarter with a tepid full year forecast stock plunge from 230 down to the mid-100s since them while many other tech names have rebounded like crazy stuff like someone traded back up to 163 as of today's close but tonight these guys report tremendous court stuff like being expectations on every key line item for the quarter revenue product revenue operating income free cash flow your name it take time match we gave a strong product revenue guidance for the current quarter and raise their full year product revenue forecast they gave you a little less a lower margin number but we'll find out about that so with the stock coming into the quarter cold these numbers were enough to send it higher in after hours this the beginning let's check in with sweetar rama swami he is the new CEO of snowflake we interview much before we are gpc right now more about the quarter where it's called mr rama swami welcome back to be a bunny great to be chatting with you jin okay sir sweetar this was a very impressive set of numbers the one that really stood out was this forty-six percent growth in what's known as remaining performance obligation i regard that as the key indicator of the future what's driving it uh jin i think overall uh like there are two broad strokes to the quarter one is at our financial uh performance was really really good uh our product revenue was up 34 percent remaining performance obligations as you talked about was up 46 percent uh some very huge deals it's really an indication of how much our customers believe in us our free cash flow margins but also amazing uh the other part of q1 is really how our product pipeline especially in ai um has been an overdrive our ai products are now generally available or 750 customers are developing on it sending applications to production um and i would say the enough enterprise ai is here right here at snowflake well let's talk about enterprise ai because you gave a number of use cases and some real customers everybody knows i'm going to pick one and people know because it's on their dining room table craft hines why does why does craft hines need snowflake uh can you repeat the question why does craft hines need snowflake well i you know craft hines is and uh is is an iconic brand uh but they have lots and lots of data and so part of the magic that uh uh snowflake brings to the table with its ai offerings is that uh you can analyze customer feedback data very easily uh using using language models and figure out which questions for example have automated responses as you can send which ones you should send to like an actual human uh these are the kinds of applications that people are thinking and implementing with uh with snowflake and the beauty is we make it real easy out of the box and super efficient to get these done now you also made an acquisition some people said to me you know what i i can use snowflake but i have to then observe i have to interrogate my own data i i don't know i mean i rent these guys i have to bring it back tell me about what it will mean that you have uh true era AI observability now that you've bought this uh a new company that i think is going to make it so that you guys are i don't know how much you need Amazon web services once you do that i don't know you tell me uh well one small clarification we signed a definitive agreement to acquire them um the actual acquisition we expect to happen soon enough um but uh as people are racing to develop AI applications uh you know things like observability becomes important because let's say you change the prompt you still want to make sure that the application is working well or you want to try out a new model um it's all part of our mission to make AI reliable and change management which observability closely ties into is an important part of making uh AI reliable that's why we acquired this uh this great team uh but the general theme again is vmake end-to-end AI easy to implement easy to maintain dramatically lower total cost of ownership you don't have to run GPUs if you want to use AI with snowflake that's the stuff our customers love it let's talk about GPU because you've got your June 3rd through six data cloud summit i remember watching a video of Jensen Wong with your predecessor mr. slubin mr. slubin was famously tough on price when it came to Jensen what will the power be like this time well uh you know i've gotten to know Jensen really well or the past few months we are super excited by the promise of accelerated computing language models are just the beginning um i think it's a powerful way to scale things uh we collaborated with NVIDIA on a number of fronts uh our foundation model arctic was unsurprisingly done on top of uh NVIDIA chips we collaborate with them on uh on models uh there's a lot to come and Jensen's of course a visionary when it comes to AI uh we're going to be talking about all of this and many other new product announcements that our user conference is going to be exciting you and i'm looking forward to seeing you everyone see what we can do i do want to ask you about the more i just you know your revenues going very well uh the margins a little a bit of decline something i should be worried about you know how much we care about margins in this business yeah margins are really really important you know of course i uh work with Mike who is amazing at this uh we are leaning ahead into investing with uh um with AI now these are modest size investments and i don't expect these numbers to like dramatically go up and what arctic clearly showed is that you can get a lot done with a small motivated team and a small amount of compute arctic was done on two million dollars of uh of of GPU compute and of course the products are out in ga and we are driving it we are taking it to market we want customers to use it for us to make uh dollars i think we are very much uh in the mode of uh driving revenue for our AI uh AI products uh and definitely hope to share more of that in the coming got it now mike your cfo did mention uh at one point they growth moderated in april but he said that was a normal component of the way that things are in your business why is that well the uh snowflake is a consumption model which means that we make money only when our customers consume uh now in their holidays for example people don't run certain kinds of jobs as you know like easter's usually uh in april so there are seasonal variations like that but the overall trend that we are seeing in the business um be just you know the conversations the vibe that i have with the the customers that i talk to is hugely positive uh people are truly excited by snowflake as their data platform um for data for collaboration and now AI applications um and you have customer after customer take multi-million you know multi-year contracts uh with with snowflake it points to a bright future where the court is strong and you're pressing the gas really hard on new things like it all right so i do you still speak to mr sloop and i only mentioned it's one of the few friends of the show where i i just respect him greatly so how's the communication it's uh it's actually he is uh incredibly kind i talked to him every other weeks uh we also chitchat on uh what's that pretty often obviously he's the chairman of the board and uh uh spent 10 quality hours within uh yesterday i kind of tap into his wisdom for how to create a great uh business uh and he is going to stay uh you know my friend and uh snowflake's friend for the foreseeable future uh and very much a part of you tell him we said hi and congratulations to the great quarter that's three dar rama swami snowflake CEO thank you sir great to see great to see you thank you everybody's back yet to the right now coming up hit us with your best shot and electrified fast fire lightning round is next it is time it's over the white mountain for a course but if i reach in the stock i said it by by myself so you know it cools right now my step is to play with the body playing this now and then the lightning round is over are you ready skid down to the light round cramps and i want to start with dave imazore dave oh yeah jim we are gave yeah whole family or club members so i want to let you in there i love that thank you it's like that password sharing i'm i'm okay with it for a bar play i'm not i'm no Netflix i'm no Netflix right hey um something about uh a stock that was in the club bullpen next tracker oh it's killing me listen to me dave is killing me i was talking to jeff marx i said can you believe it showed this is the CEO next year that thing got game today it's not like a first solar come on you know well we're gonna have to address that when we have it's went up a lot but i'm still a believer in showing even at these levels tom in new york tom good evening jim evening jim my question is on a company that i'm sure it's been around a longer than you and i combine i would appreciate your thoughts on how this old company might bear in this new ai data center onslaught the company is pointing incorporated you know look i love corner used to call in that area up there with the horse heads and that's the name of the town but i've got to tell you it was corny new york i've got to tell you that uh this company has has failed to ever since the 1999-2000 over earned it is not able to generate the kind of return that i've wanted i would not be a buyer all the way up here i just can't come up with a thesis i need to go to mike in Illinois mike my bike jim how are you i'm doing well many time caller and club member uh axon i owned some some of it i've owned it for a while i bought more when i went up it's meant that my base is now it's come back down it's kind of in the middle right where my base is attached i buy more get rid of it well i don't know i thought rick smith did a great job i think that the quarter was really good i think the stock sold off because it's been just an incredible juggernaut i would hold off right now i think you could probably buy that stock at 250 if it gets there people hate the kind hate the chart or whatever but then you'll be at the right level the stock does have a high price earnings multiple so i'm a little more skittish than i would be otherwise dan and nor kelana dan hey jim bujon there's a guy needs to keep his day job what's happening hey uh trying to get your take on um recursion pharmaceutical rx rx okay after we had them one uh two fires ago i thought for sure their announcement on monday was i thought was excellent would move the stock what's going to move the stock is they do have an investment and it's a serious investment uh uh by invidia in them and i think therefore it's a terrific spec and i would buy it let's go to alex in florida alex jim how's it going man i was just uh thanks for having me again i was just wondering what you were thinking about intuitive machines with the recent successes such as u.s moon landing i know what i i'm not there i'm not there on that i've got too many stocks i like they're doing really terrific things that i've got to go down i mean it had a one-day wonder it had a big spike and i feel like i miss a spike i don't want to come in on top of that spike let's say uh not for me okay now we're going to go to tori and lusiana tori hey boo y'all craner oh yeah tori what's happening i'm taking my calls of course so what's your what's your take on crados as i have liked that look first of all i like depends contractors there are very few small ones uh the buy them anymore probably because of any trust that is one we've liked since 11 i think you stay long it maybe even buy more ron and utah ron hey hi jim uh thank you for all the help you give us this fish you bet you have stream against those big sharks i want to shout out to my fellow flying navy pilot bill sturd the local company i've got merit medical mnsi what do you think i think it's good i mean a little bit little bit pricey that real good growth rate this is kind of coming up wait one day you wake up and it's poor by somebody else and that legend of the lightning round the lightning round is sponsored by charl schwaub coming up why this big box battle is just target practice for walmart next after today it's no longer fair to compare target to walmart at best you could say they're like apples and oranges two details with less and less in common to the point where the whole comparison it's meaningless for years we got used to target beating the pants off of walmart when it came to head to head comparisons target always gave us better same store sales growth and more exciting stories of consumer enthusiasm now though you know why this shoe is actually the other foot walmart's crushing it with much better than expected store numbers while target's putting up largely in line results which is not enough to do the job and not what i'm used to from target and that's the main reason why target stock was down badly on earnings while walmart's stock just keeps hitting new all-time highs but let's go back to the notion that the whole kind of comparison is just meaningless with this quarter we're seeing something i never thought i'd see walmart's producing value will give you a level of unparalleled convenience and even a sense that trust me you're of chic yeah she can price there are many things i could imagine say about walmart but in a sense a style and a style and reasonable price that was never one of them i know it's hard to believe unless you've been to a walmart store lately and i advise you to do so but they have a parallel lines that are ridiculously cheap and are whimsical surprising and just play an old cool for the millennials and the gen z's of the world you think walmart's mostly can't have frozen with lots and lots of junk food piled high in the eyes a little debbie just the opposite they have a display of fresh organically grown food right up front that puts them on equal footing with whole foods on quality and well below in price then they have whole new lines like it just announced better goods that's the largest privately brand but we get this seventy percent of the items are priced below five dollars take that dollar stores they have the incredible value of walmart plus which many fuel rivals amazon prime for deals they keep surprising with great offers like today's announcement of a deal with pop for telehealth pet care hey a lot of their customers have pets finally from the point of view from the shareholder walmart's dot com has a burgeoning advertiser business uh... if that's like amazon's new that big amazon business is just just pure gravy and target can't do that in fact the increase it feels like walmart and target are not quite the same business which is the problem for target don't get me wrong targets a terrific company it didn't miss its numbers it's fun to shop at but in the end it's become a meaningful domestic enterprise while walmart's become an international colossus i actually think target city itself up for a good second half and stock might be a buyer settles down strangely though it only just decided to cut prices on 5,000 items if you're initially only cutting 1,500 this year we need inflation fighters at the helm walmart's taking everything down they know the best way to get you in the stores to fight inflation they're all rolling back prices aisle by aisle the customers are craving it in the end i don't think i can prepare the two they're just two different animals so who is in the class with walmart only two companies casko and amazon in fact it's just a three-course race now all three are global types all three are for great value of casket coming in the cheapest given its concentration about 3,000 different products and a club court business while the others have much broader semblance of very good prices all three have scale and heft that nobody can match something by the way the croaker understands which is why it's trying to merge with alberts is in order to compete with them i think croaker like target runs the risk of being left behind not irrelevant but left behind without that deal but the FTC wants to block it because the last time alberts has merged with another supermarket they made a market with the whole regulatory process i don't blame them when walmart was doubting clutter with no sense of order i could never say that they did retail supremacy and i'd scoff at those who did but this is a new well organized well run well managed walmart that's succeeding on price and value and convenience and even yes style target still has work to do i better get there at the end of the day though target's worried about the state of the american consumer but walmart i don't think walmart's worried about anything i like said it's always a bull mark somewhere probably try to find it just for your regular mid-money i'm jim graver see you tomorrow last call 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 earning your degree online doesn't mean you have to go about it alone a cappella university we're here to support you when 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