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 5/23/24
At US Bank, when we say we're in it with you, we mean it, not just for the good stuff, the grand openings and celebrations, although those are pretty great. But for all the hard work it took to get there, the fine tuning of goals, the managing of cash and workflows and decision making, we're in to help you through all of it. Because together, we're proving day in and day out that there is nothing as powerful as the power of us. Visit usbank.com to get started today. Equal housing lender, member FDIC, copyright 2024, US Bank. Homes.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.com goes above and beyond to bring home shoppers the in-depth information they need to find the right home. And when I say in-depth, I am talking deep. Each listing features comprehensive information about the neighborhood complete with a video guide. They also have details about local schools with test scores, state rankings and student-to-teacher ratio. They even have an agent directory with a sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know all in one place. Homes.com, we've done your homework. Hey, I'm Kramer. Welcome to Man Money. Welcome to the Kramer Market. I'll be with my friends. I'm just trying to save you a little money. My job is not just to entertain, but to educate, put days like today in perspective, call me 1-800-743-CMC, tweet me @chimcramer. Look, I know it was a horrendous day today. We're going to get to that, but it sure is a heck of a day for Nvidia. One of my favorite stocks, one I always say to own, don't trade. Yet I keep hearing about how to trade Nvidia. Should you go longer short, the greatest artificial intelligence play of our time. One that's already changing the world with its borderline miraculous semiconductors. Should we declare victory, sell the darn thing up here? Hey, maybe buy some more and then hit me. Why don't I just tell a dad joke, so here goes. Yeah, that is why my sister's name is Rose, because your mother loves roses. Thanks, dad. No problem. Nvidia. Come on, dad. Come on, that's been dazzling. All right, look, yes, on a day when the rest of the market was hideous. I mean, like, just know it's in. Yeah, plunging six hundred six points, S.P. telling point seven four percent, NASDAQ losing point three nine percent. We have to recognize that there was one stock, a one truly great company that frankly has nothing to do with the doubt of the S&P or the NASDAQ, or that is how, or the Fed for that matter, that stock is Nvidia. It is quite simply something much bigger than a semiconductor company, much bigger than a platform, much bigger than the company that I named my late rescue dog after, because I didn't think enough people owned the stock. Who is Nvidia? What is she, to misquote, Shakespeare? Nvidia is a cult. Nvidia is the standard. It's a mythological warrior. It's the lume. It's the steam engine. It's the wind tell combination all wrapped up with an iPhone in a 2001 Space Odyssey bow. So when Nvidia reported last night and showed you how strong the quarter was, the stock flew up more than nine percent today. I think it would have been up even more, of course, on a better day. It peaked at one thousand sixty three before the market really rolled over. But regardless, it was able to win when everything else was losing. I'll take any stock that rallies 88 points on a day filled with heavy losses. So a couple things before we get to the legend of Silicon Valley. First, we got a radio in the service economy this morning. It was just way too hot, which then sent interest rates higher, and therefore, yes indeed, has always crushed the stock market. That makes sense. There are a lot of people who own stocks now because they're expecting rate cuts and getting them, right? Okay? They need that, but they're kind of miracle. Every time we get a hot piece of economic data, they're disappointed. I'll tell you that we're not going to get consistently downbeat numbers until we have a lot of layoffs, and that hasn't happened. Job losses determine whether the recent brown shoots that I've been watching turn into a genuine showdown. I'm sorry, slow it out. Without them, listen to me. It's hard to imagine the fed cutting rates, which makes it hard for these people to own stocks. Anyone who's betting on rate cuts here will easily be spooked like they were today, and that's been a constant. Every time rates go hard. Second, after opening strong, almost all the text and quitting semicructures got clobbered, even as initially most semiconductor stocks had roared in sympathy with Nvidia. I say call it ineluctible pin action, it only failed. Third, in the end, the mark got so out of the Nvidia seem to be the only stock that went up to save a couple of bargain-basement retailers, which is simply not sustainable. We've been up for a long time. We were due for a setback, but it made Nvidia star shine that much brighter. Now, let's talk about the zeitgeist of Nvidia. This is a company run by Jensen Wong. He's a man I call DaVinci because he's a visionary, a true modern-day renaissance man. He's created a series of semiconductors that can be trained, and then can take a data set and infer pretty much everything that needs to be known. I like simple examples of the power of AI. Say you don't speak English well. You want to go to McDonald's. You use the drive-thru window. But you fear you'll screw up the order. They'll screw up the order. The orders get screwed up all the time. But there's a lot of fear. But at the person, the other end of the speaker is not a person. If it's an Nvidia-powered robot that's sympathetic, you can speak 27 languages, never make a mistake, then you'll have the fastest and best experience there is. With 40 million legal immigrants in America alone, I've got to tell you that's a good business. Whoever rolls that out nationally first wins. Or maybe you want to build the single best full self-driving car in the world, one that can't make a mistake that's so flawless, so safe that the regulators would be nuts to reject it. That self-driving car will be built within video chips because they're the only ones that have that enough horsepower, which of course is why Elon Musk has been buying them like crazy for Tesla. And why by the way, Jensen said this will be the big story of 2024. The fact that a video can do all these things, that it has a platform that can be trained, educated, and then draw in the inferences and answer questions like no other means there's no end to the demand, that it's simply better than everyone else's product. But here's where it gets a little tricky. In the stock business it'll often pay to be skeptical. We've seen all too many geniuses, all too many stocks that could do no wrong, all too many products that sounded too good to be true. We've been had too many times. So what has developed is an instinctive belief that if everything works and the orders won't stop, then something will eventually go wrong. Perhaps it's a product gap, maybe it's an unknown competitor, could simply be that the stock's price so expensive that you can't own it, you have to trade it. I've heard them all, but this reflexive skepticism has not served you well with Nvidia. This company routinely exceeds all expectations by staggering amounts, and while the stock might look expensive based on forward earnings, it always turns out to be much cheaper in retrospect as the actual numbers try to see estimates. When you look back, do you know that Nvidia's truly never been expensive? During its whole run, to its current 2.5 trillion dollar market gap, which brings me to the joke at the top of the show. Nvidia's become a fascination, the kind of the stuff of alchemy. Many of the people who own it have no idea what it does. They may have bought it because I name my might, Nvidia. They may have bought it because chances and long dresses and cool motorcycle jackets. For the most part, when you're dealing with a business that's a business to business operation, like this one, it's hard to get your head around what they really do and how the product works. Maybe the buyers just like the quirky name. Maybe they like the stock's keeps winning. But if people want to take the time to learn what Nvidia really does, how it has the AI feel almost to itself, how almost everything it makes is in short supply, how it sold 26 billion dollars in product this quarter, which is over a billion more than anyone expected a few days ago, but probably 20 billion more than anyone expected a couple of years ago. If the people took the time to learn the company and it's all there, they wouldn't trade it. They wouldn't own ETFs that encourage the way I'm a jammer buying and selling. They would just prosper like my travel trust does with the investing club's own don't trade mantra. If you're going to own this document, take the time to learn. You see that's really the secret. If you did, you'd know that the customers said to be deserting Nvidia aren't deserting their desperate for the product. The stories you read about weaknesses in the marketplace are the ones that seem to be planted against them. This is the kind of stuff I've always seen with Apple. Apple's another stock I've always told you is one that you should own, not trade. So what do you do with Nvidia now? I think you're going to get a chance to buy it. But if you just want to trade it, don't bother, please. This is a company dedicated to the proposition that there's a new industrial revolution and it runs on Nvidia and it shouldn't be traded. The bottom line, until the AI revolution runs on something else, and despite what you hear, nobody else comes close to these chips, you should just own it. No, do not trade it. Maybe you need to pretend Nvidia's man's best friend. Hey, maybe you just treat the stock like your son, or whatever it takes. Just don't sell it on moments notice. In fact, don't sell it all unless you need to do some profit taking to even out your portfolio because it's just become too large. That's right. Nvidia's position's too large. There's something that rarely happens to any company that you do have to take some profits. Let's go to Rebecca in New York. Rebecca. Hi, Rebecca. Oh, hi, Rebecca. Hi, Jim. Hi, Mr. Crayola. Wait, it's a, you know, it's a real show. People make big mistakes. I mean, I have those mistakes. What's going on? Right. Okay. So my grandson, Arya, you would like to ask your question. Arya, yeah, yeah. Put them on the phone. Put them on the phone. Yeah. We have a secret in my family. We have a little stuff. And Crayola have a segment on the show to explain common sex to a knowledge for young viewers. What was that stock there? Rebecca, what was that stock that young fellow just talked about? Shouldn't repeat himself. Yeah. Yeah. Gab? Is he Gab? Yeah. Yeah. Oh, my. He's so smart, Rebecca. Gab is one of the stocks that bucked the onslip today. That's a really, really good sign. It does report next week. And I think it's going to be an excellent quarter. So I say own it. And maybe buy some more for goes down again tomorrow. And thank you for the time works. All right. Look, until the AI revolution starts running on something other than invidious ships, the usage of chest, dicta, owning the name, not trading it. Everybody tell you, elf, still a beauty player to blush over? I've got the CEO after the earnings of the stock story today. Then shares a trawl swab recently jumped to a 52 week high this week for losing some of its gains yesterday. I'm seeing if there's a long term growth in bank loan with the company's top rest. And later, where do we stand on our fight against Avian Fool? It's where you can have it on the poultry industry. I'm betting this story when I sit down with the CEO of Animal Health Company. So stay with Kramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer. #MadMensions. Send them an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something? Head to madmoney.cnbc.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 americanexpress.com/business gold card. The market doesn't joke around. So why would you get serious? Choose tasty trade. Tasty trade gives you the tools you need to make smarter moves. Dig into data with advanced charting, track profit accurately with order chain trackers, see risk clearly with curve analysis, and trade with low cap commissions, stocks, options, futures, and more. All on one platform. No wonder serious traders choose tasty trade. Join the club genius. Tasty trading is a registered broker dealer and member of FINRA and S.I.P.C. Nvidia wasn't the only stock to roll this awful day for the averages. In fact, Kramer fave elf beauty, the affordable cosmetics maker performed even better, rather than nearly 19 percent. Response to this spectacular quarter, they sent elf simply blew away the numbers, leaving a 20 cent earnings beat off a 33 cent basis, much higher than expected sales. I'm 71 percent year over year. Incredibly, the stock first sold off at first, as it typically does, elf gave very conservative guidance for the full year. But by the time we got in this morning, the market already come to its senses, realized that the results were too good to ignore. I'm not sweating the questions, guidance, because I've been following this company for ages, and it's given you insane gains if you believed in the story. But don't take it from me. Let's dig deeper with trying them in. He is the chief, chase the chairman, and CEO of elf to learn more about the quarter and about comments, Mr. me, congratulations, but just another stunning quarter. Well, thank you. Thank you so much for having me. All right. So, Trey, I've got to get right at something that you talked about at the beginning. You talk about a couple of price points. I'm just going to say it. 650, 950, 20, you have redefined what has happened in the world. When are people going to realize, and I think that's one of the reasons why your stock has this big short business, whatever that the world has changed. And you've changed how people view the cost and price of cosmetics. Well, that's right. Our mission is to make the best of beauty accessible to every eyelid face and skin concern. And that's exactly what we're doing. We take inspiration from our community and our and best of prestige. And we're able to bring products at these incredible prices. And people are recognizing that our consumers in our community recognize that health actually often is better than prestige. And you don't have to pay as much as you do for those products. One of the actual best pieces of research I read every year, and we do hours, the Piper sandwich study. Now, the people who they actually go after, teens, they are the most discerning people because they know how to do all sorts of tech things that you and I never dreamed of. And you came out once again, Gen Z number one, how far in between the rest, you're like number one, well ahead of everybody else. You're just in a category by yourself. Well, that's right. And that latest survey, we had a 38% mind share amongst teens. The next highest brand was at 8%. So multiples above that. But you know, the great news for us is it's not just about the strength we have Gen Z. We're all to the number one brand amongst gen alpha, the number two brand amongst millennials. So we're starting to see multiple generations realize the magic of health. And you are also something that the big change always tell me people run to. It's not just that they have a cosmetics aisle that's essentially run by an altar. They're actually seeking elf. That's right. And in fact, if you look at our last fiscal year that we just reported, our business was up 80% at Ulta over 70% at Target. It is a prime destination where help growing their category. In this quarter, we became the second biggest brand nationally. We passed Lori Al Paris to be the number two brand nationally with a 12.8% share. But at Target, our longest standing customer, we're their number one brand with almost 23% of their category. And so we really drive a lot category growth and retailers really appreciate for that. Now, one of the reasons I think you do that is you run brilliant campaigns. You currently have a what I would call a maybe a little cheeky campaign going on. Why don't you tell us about that one? Well, I think you're thinking about our change the board game campaign as you know, a big part of our success is the diversity of our team. Over 75% of our team are women, over 65% Gen Z and millennial, 45% diverse. We feel having an employee base that represents community we serve has been a big advantage. But it doesn't just stop with our employees. We're also one of only four public boards in the US out of 4200 that have two thirds women and one third diverse representation. Now, to be honest with you, we don't want to be just one of four. We think there's a tremendous value of having that level of diversity and inclusion on your board of directors. So the campaign that we're running right now, I think the latest situation we started with partnering with Billie Jean King and equality champion to serve up some facts of what board inequality looks like in the US. And what you just saw there, if I think that the tagline was so many dicks, so few of everyone else. Really, we went and basically looked at all 37,000 public board members in the US. And we found that there were more people named Richard, Rick or Dick than there are Hispanic board members on public boards or not that far away from Black board members, etc. And by the way, our point is there's nothing wrong with being Richard, Rick or Dick. We just want to make room for others and shine a light on it and really encourage other companies to do what we've done because it has been a key part of our success. I have to say I really enjoyed the irony of where your posters were downtown, which was the the white male bastion of a banking in this country, the old Morgan building. Now, that doesn't mean you're not doing some other things that are a little more conventional. You are sponsoring an Indy 500 racer. But of course, it's a female racer. That's right. When you know, we feel that women are underserved in sports. And so when we found out that in the 108 years of the Indy 500, only nine female drivers have ever raced in it, we decided to sponsor the only female driver this year, Katherine leg and do an activation. We're doing a lip oil exchange. We're shining a light sponsoring her. And really, it's something that our community really responds to in terms of our platform of empowering women and empowering others. Well, it's sensational. And I'm sure that it'll draw many eyeballs this weekend. Now, we do have different kinds of cosmetics. I know that there is skincare, for instance, skincare. Again, I mean, this is something that I don't even remember you being involved. You're now the dominant player. Well, we're one of the fastest growing. The fastest growing brands in skincare with elf skin and notorious clinically effective biocompatible skincare brand. We bought in October, both of them growing extremely well. They complement each other. And we're seeing really great success in skincare as well. But it's 38% growth. You're absolutely right. And it's rather incredible. And then sometimes I know that there was someone who was saying to me, Jim, you've got to ask about the inventory. The inventory balances really up again. This is someone who obviously wants to stock down. And I got to tell you, and you know, I saw your team. And I once told your team, who are these moron shorts that they're going into company that is about democratizing something that costs way too much? So I mean, worry about the inventory number, is actually what you need right now. No, that was actually a conscious choice. As you know, we just finished a year, we're up 77%. Our business has been growing really fast for a long time. And so it was a conscious choice to make sure we had inventory support the demand that we're seeing. It also reflects the Detroit acquisition we made and inventory that came with that. So we feel great about inventory. If anything, we may not have enough because we can hardly keep our best products in stock. And so it's been a real, real challenge to make sure we have the products that our consumers make. And people who think who doubt that, you stupid shorts, you are talking about growing unit lead. If it were really an inventory problem, it would be price led. You are doing it the correct way, sir. Well, thank you. No, we are the only brand in the top five that is really driving through unit growth. And that's been pretty consistent for us for a long time. And it's one of the reasons why you see what you say. And the notion that you will, I think, have to be able to do this overseas everywhere, international, obviously, is going to be something I think is even going to be more powerful for your price point. No, that's right. In fact, our international business in the last quarter was up 115%, primarily for Canada and the UK. But what we're finding is because of our strengths socially with these younger consumers, a lot of that feeds consumed outside the US. So we introduced in de-gloss Italy a few months ago, we quickly became their number one brand. The same thing happened last month when we went to Etos in the Netherlands, we quickly became their number one brand and we're not even done with our rollout. So we have a long way to go. International is only 16% of our business versus 70% of many of our global peers. And so there's, I think, between confidence and doubling our share in color cosmetics, the tremendous opportunity we have in skincare, as well as the incredible white space in international, we're pretty confident in terms of what the growth trajectory for our business. Well, you should be. I mean, it's a remarkable thing. And you have made it so that an industry that costs too much for people is now well in reach for everyone. Congratulations. And we agree, by the way, with your campaign. That's why we had to bring it up. And it's just too strong, a pretty step. I want to thank Turing. I mean, Turing is the chairman and CEO of Elle Beauty, another great quarter. And I love you coming on the show. Thank you. Thank you. Man, mine's back here for the break. Coming up, millions of Americans rank and file have used this company to build their nest egg. Can the stock do the same for you? Find out when we return. The market doesn't joke around. So why would you get serious? Choose tasty trade. Tasty trade gives you the tools you need to make smarter moves. Dig into data with advanced charting, track profit accurately with order chain trackers, see risk clearly with curve analysis, and trade with low cap commissions, stocks, options, futures, and more, all on one platform. No wonder serious traders choose tasty trade. Join the club genius. Tasty trading is a registered broker dealer and member of FINRA, an S.I.P.C. Ever since the market bottom last October, Charles Schwab has given you a magnificent rally. Searching from the high 40s to the high 70s order this week. I've been recommending the retail brokerage side in the whole way, because I thought it was unfairly maligned during last year's mini banking crisis. A lot of uninformed people about the stock yesterday. Schwab held its inaugural institutional investor day event at Wall Street, and clearly, well, you know what? There were some problems in the stock, but it fell 4.6%. Lost another 3.9% point back to 72%, but it was not very big and ran into the meeting. While went wrong, even though Schwab reaffirmed some of his previously issued long-term financial targets, the market also had some incrementally negative comments about his near-term outlook, including a walkdown of earnings expectations for the current quarter, but not the future. So what do we do now? Has it been punished enough with this pullback? Do we have to say the easy money's been made? Let's go straight to the source with Walt Benger. He's the co-chairman and CEO of the Charles Schwab Corporation to find out. Mr. Benger, welcome to Mad Money. Thanks, Jim. I appreciate the invitation. Okay, so what you just finished a huge deal, TD Amer trade, and it's just an incredible heavy lift. It got a giant number of people. What's next for Schwab? This was about as tough a deal as I've ever seen close. Well, it was a complex transaction for sure, but I think anyone looking at it objectively would say it was an unparalleled success. We converted almost $2 trillion in client assets, 17 million accounts. Those clients have already brought us about $60 billion in new money after they converted over to Schwab. And although you can certainly go out when you've converted 17 million clients and find a few who have a complaint, the numbers are really small. We actually have to report all complaints to our regulators, and we averaged about 55 complaints per 1 million accounts converted. Now, with the past as an actuary, Jim, I should be able to do the math, but I'll just say that's a lot of zeroes after the decimal point in terms of complaints that we received. It certainly is. Just in terms of the stock price, it did run up well into the meeting. And there were some people who believe that this cash shorting issue had been behind them, which is something by the way that you never, you've never held us any false promises. The fact is, this problem is a short-term problem. That's nothing to do with the long-term future of Charles Schwab. That's exactly right. At the beginning of this year, we said that we expected earnings in the fourth quarter to be somewhere between 80 and 90 cents. And we actually affirmed yesterday that we now expected to be near the top end of that range. However, it was going to be volatile during the year on our way to those numbers. And in the first quarter, we did about 74 cents of earnings. That was a 500 basis point improvement in pre-tax margins over Q4. And I think some of the analysts might have gotten a little ahead of themselves in anticipation of us getting into that 80 to 90 cent range. We still feel really good about where we'll be in the fourth quarter and even better about where we'll be in 2025 with sequential improvement in those EPS numbers. Well, that's what matters to our people. Now, you have consistently championed both individual investors, our viewers, and the advisors are sort of them. We've got some of those too. And I think you've done it because you've got a trusted advisor with a great vision, but you've also offered great value. Now, what I'd like to know is there are we went from 52 percent people into in the stock market to 62 percent over the last 11 years. From your vantage point, I know you've gotten a huge number of those people coming to you. Are they investing responsibly that Charles Schwab way? Or are we seeing too much gamification? Well, there's probably a mix in there. And you're exactly right. There's been an influx of new investors. I often say that when the market is going up, everyone is a brilliant trader. When the market's going down, it's a lot more difficult when it's choppy. I think what we try to do at Schwab is provide as much education, tools, ability to speak with a professional who has decades of experience trading, help people who want to trade, do it responsibly, and do it as effectively as they can. We're not really interested in just pure volume of trades. That's not the best interest of our clients. And of course, that's never been the Schwab way to try to just drive revenue on the backs of behavior that may not be in our clients' best interests. All right. Well, people should know we keep our capital trust with Mr. Bettinger and Charles Schwab. And one of the reasons we do that is because you are good to both the big and the little guy. Now, my wife, unbeknownst to someone who did not know that she was married to me, and they kicked her out of their core group of advisors because they said she wasn't rich enough, which didn't ring well with me, frankly. Do you kick people out because they're not rich enough? No, in fact, one of our guiding principles at Schwab among our five is that every client matters, no matter how small or how large. And if you go back to Chuck's origin 50 years ago, it was all about helping bring investing to the main street of America. I know that that has been co-opted or attempted to be co-opted a little bit in recent years, but Chuck was the original opening up Wall Street to Main Street. And that's still a huge part of what we do today. Of course, we serve a lot of investors of all sizes. About 70% of our retail assets are with clients that have $1 million or more. But if you look at that on a client basis, the vast, vast majority of our clients are below a couple hundred thousand dollars. Do people have a mixture of index funds and do some individual investing at the same time? They do. Actually, we've called that core and explore for a long time and have recommended for most investors setting up a solid portfolio of low cost, generally index funds or low cost actively managed funds is really the right way to build a portfolio. You and I both know that when it comes to investing, time is your friend. And being in the market is often a lot better strategy than trying to time the market. There are those who are pretty good at it, but it's a minority. And of course, those who do it well are incredibly disciplined, very careful. They utilize all the risk management tools we make available. Those are the folks who generally trade and do it successfully over a longer period of time. Okay, and from your perspective, I know we hear about this higher for longer, but are people going, people want your shop, they want inflation tame because they know that the value of the dollar will be eroded. What would you say is the zeitgeist of the place? I mean, we want rates slower because we obviously want to make more money. At the same time, you have core investors who must have inflation slain or else they're going to lose a personal power. What do you think is the mood of the account base, if you will? Well, we just put out today one of our regular studies on client sentiment. And what's happened is inflation has now become the number one concern among investors across, again, 35 million clients that we serve. And so when they think about inflation, it has moved their position from the first quarter of being a little bit on the bullish side to where now they're a little bit on the bearish side. So inflation is such a big concern for the average individual and the average investor. Again, this is why it's so important to have a diversified portfolio so that if you have a mix of fixed income or cash and stocks and other investments and you get a bit more inflation, you do have the opportunity to build income on that side of your portfolio, the cash and the bond side. Well, that's exactly how we feel when we have money and just why we're so happy to have you on the show after a terrific run. And there were people, by the way, just, you know, who actually counted this company out. And that is just ridiculous. I want to thank Walt Bender, co-chairman, CEO Charles Schwab, SCHW, where we have our account for our travel trust. Thank you so much. Well, really appreciate it. Jim, thanks for having me on the show and always appreciate the wife's counsel you offer to investors and traders. You are very kind. Thank you. Thank you so much. We have buddies back into the break. Coming up, Go Fetch. Kramer checks in to see if this PEC player can hold its own in a dog eat dog market. Next. Sometimes bed headlines can create incredible buying opportunities. Month and a half ago, The Wall Street Journal published a story about Sowettis, a major player in animal health, speculating into arthritis drug. Lebrella may have played a role in the deaths of several pets. Stock tumbled nearly 8% in response, investors worried that Lebrella's domestic launch might be very disappointing. But when Sowettis reported three weeks ago, delivered a terrific top and bottom line beat, creating much of the growth to the widespread adoption of new bed Lebrella. The stock has now erased its losses from that story. It's still down roughly 13% for the year. Maybe it's worth a bite. Let's take a close look with Christian PEC. She's the CEO of Sowettis. To learn more, Miss Pep, welcome back to Mad Money. It is great to be back, especially after such an outstanding quarter. Good to see you. It was an outstanding quarter, and obviously Lebrella is a major part of it. This is a very big drug for you guys. Yeah, it had 189% growth in Q1. We are really excited. We did $100 million. It's doing a fantastic job for osteoarthritis in dogs, and really the difference that it makes. You can watch all the videos of really just the change you've seen in pets. I certainly saw it in my own. All right, that's fantastic. We just take talk videos, people posting things. Look, I think everyone sometimes looks for community, and my heart goes out to anyone who's petistic. But the reality is the overwhelming majority of pets and pet owners who have used Lebrella have had an outstanding experience, and that's been really awesome. And the product is safe and efficacious. It's been used for over three years with 14 million doses used. So we stand by the product, and it's been an awesome one. Fantastic. Now, you have been my expert for more than a decade now on these different illnesses like the avian flu outbreak. I trust you more than the name of where are we? So I think what we've seen is you and I talked about before. Oftentimes, these zoonotic diseases are diseases that move animals, and we've seen this. High path avian influenza, which you and I talked about a little over a year ago in the birds, has now moved into cows. And as the leader in animal health, with a purpose about nurturing the world and humankind, we're obviously partnering with both regulators and our consumers, and importantly, our customers, to make sure we have solutions, both diagnostics and vaccines for it. So are you feeling confident right now about the situation? Well, I mean, the way I look at it, I think our regulators are really doing a phenomenal job. To be honest with you, they're on top of it. They're looking at potential solutions, both biosecurity, looking at vaccines, looking at diagnostics, to make sure we can continue to control and address it. All right, good. Now, yesterday, Walmart made it in now, today's Walmart, made it announced with Walmart Plus, that they're going to do telehealth pet medicine. And immediately, my wise guy friend said, well, what are they going to do? They're always going to be on the phone. But this matters, and it couldn't matter for your business. Well, I think what we're really seeing is lots of new business models around pet health care. Right. There's a lot of new pets, as you know, who are adopted. And there's a great need. Pet owners today with the human animal bond want to take better care of their pets, and they want to be able to get that pet care where that's convenient. So whether that be at Walmart or e-commerce or their local vet, they're looking at brand new value propositions to make sure all those Gen Z and millennials who want to, you know, treat their pets like family have the ability to do so. Now, post the pandemic, has there been any sort of, let's say, decline in the overall growth of having pets at home? No, not at all. And if you look at the pet care space and even the spend of pets, it continues to grow. In the last quarter, you know, the spend of the vet clinic grew 4.5%. The reality is the human animal bond makes pet health essential. You know, if you asked, you know, 86% of Americans would not change what they spent on their pet, even if they were facing a 20% decline in their own income. So, you know, pet health is essential. Right. Now, we all have our dogs and our cats have peculiarities. I've got Wolfie, who is just driven to distraction by ambulance, by any loud noise. It kind of wrecks this day, so to speak. You've got something. Well, I mean, I think we've got a big weekend coming with all the fireworks. Yes. Oh, my God. That'll be so hard. Yes. We do have a product for dog cilio, and we have boncat for cats. And, you know, anxiety in dogs is very real. Certainly loud noises can really cause it. But, you know, if you look at boncat, a lot of, you know, pet owners don't bring their cat to the vet. You know, we have a product, you know, it's really important for osteoarthritis. It's a Cilencia. But a lot of people won't use it because they just are too nervous with their, you know, cat getting it to the vet. So, products like cilio for dogs and boncat for cats are critical. All right. Excellent. Now, the dermatology franchise, great as ever? Yes. We had 25% growth in Q1 with Apiquel site appoint and launch of Apiquel Choo. So, no one, you know, everyone wants to make sure they can give them a beef-flavored treat and address their, you know, their dermatological condition. So, it's been a great quarter for Durham. And I think it's important to point out what was the standard of care before Apiquel? I believe you called the at Elizabethan. Elizabethan. I think you have to recognize that it was medieval ages until your company came along with that great medicine. Yeah. Now, we do have, I mean, the first time, I mean, that's a little competition. Merck's got a drug that sounds like, you know, for preventing fleas and ticks. Alenco's gotten a little bit, the got their balance. She fixed a little. Is it going to get a little tougher out there for Zwettis? Well, we saw, you know, a big competitor come in Q3 of last year. And a lot of people were worried. We printed a 61% growth in Q1. So, I think our performance speaks for itself. I think with some Pericatrillo, Rev, Rev Plus, we really have a broad portfolio. And it's a billion dollar franchise, as you know, Durham is a billion dollar franchise for us. And so is Perisceticide. So, I'd say we're showing that we can truly deliver because it's a phenomenal product. No, it has been amazing. And again, I just want people to understand what this is something that Walmart gave me. If 75% of the people who have Walmart Plus have pets, how big are the number of, how big is the number of homes that have pets in this country? It's immense. And I think really as you look at many millennials and Gen Z are having pets versus having children. And they see these pets as important members of their family. And high-income households are having multiple pets. And they want to take tremendous care. I mean, you and I joke, you know, 20 years ago, they were in the backyard, they moved to the house. They're definitely on your bed. And some of them have a stroller these days. So, you know, they want to take the best care of these pets. And I think that's really what helps drive companies like Zoetis. We have innovation to bring. And we're there for those pets. So, well, that's why I was surprised that the stock is down double-digit. Because it doesn't make a lot of sense to me. I think that there's a lot of confusion. Maybe at post-pandemic, people aren't adopting pets. We took care of that. You've got a lot of great new products. It's very clear to me that there's no real price competition because the other guys still don't have a goal. I think it's science and innovation. I mean, if you bring innovative products that change the life of a pet and, therefore, change the life of that family, pet owners are willing to pay for a great innovation. Any amount. Okay, that's Christian Peck, CEO of Zoetis. Long the recommendation of ours, even from when it was spun off. Yes. That's when we first won. There we go. We have monies back everybody. When we return, master the markets. One stock at a time. The lightning round is up next. It's time to have the lightning rounders over by myself. So, I'm talking to you about by myself. So, I'm just going to do my step-perit with you and by myself. And then, the lightning rounders over. Are you ready? He's getting down. He's coming to the lightning rounders. And then, start with Gary in Georgia. Gary. Hey, Jim. Thanks for taking my call to the show. First off, I just wanted to say thank you for helping me become a millionaire. It feels really good. Wow. Thank you, man. Right back out. Yeah, a few months ago, I bought Eric the Network from my mother-in-law, Gloria. I got hit today. Time to sell or hold? No, no. I wish I had an unbelievable quarter and J. She's doing a tripping job. Look, all these stocks are a little volatile right now, but I think you want to own it and buy it into the volatility. And thank you for the kind work because that makes us feel fantastic here. Let's go to J.D. in Alabama, J.D. Describe her. How you doing? I'm doing well, J.D. What about you? Doing good. I'm getting into investing. I've been listening to your shows here, and I'm now curious about Sigma Lithium Core. Wow, too dicey for me. As a matter of fact, I've got to tell you, I think the Lithium Group they've been, oh, so look at it, album more. I think it may be played out for now. I don't want to be in that group. Let's go to Sue in Florida, Sue. Sue, you're up. Hello, Sue. Booyah. Booyah, Sue. What's going on? It's your Sue from Florida, and I know there's been a lot going on with G.J.T. Donald Trump media. What's your take? Wow, that is a wild one. I don't know. I mean, it depends on the trial, it depends on the money flows. All I can tell you is that is just one crazy trader. I wish I could give you a better line on it other than just say, wow, that is the most volatile stock I have ever come across. Let's go to Gary and Nevada. Gary. Hello, Mr. Kramer. Hey, I'm so glad to get a chance to talk to you. You have a talent that is superior plus educational. I'm very entertaining. Are you the one that came up with the soundboard? Yes, it is. Wow. That is from my old radio show. I wanted to be able to I mean, I wanted people to stop and listen and focus. It's not easy to one man show about business. I'm trying to, you know, make it a little more interesting than it would be otherwise, but thank you for noticing. Thank you very much. Well, I think you've done a fantastic job. I had you. 25 years in the motion picture industry. Wow. Television and I've seen a lot of talent. Years stands out as being one of the best. Wow. So, Mr. How can you, what can you tell me that upcoming with Lilly? Okay, we had this group 100 acts on the other day and they did a study about how people feel about Lilly versus what Gobi about how they feel about Zepbound versus the product is by Novo Nordes. And without a doubt, I mean, in a head-to-head contest, Lilly is so far and away the winner. I just say you got to own the stock. Now, let's hope it comes in so we can buy more. Let's get taken by this kind of works. Let's go to Reese in Illinois, Reese. Oh, yeah, Jim. I'm talking about a Texas bomber in the entertainment space that never gets talked about. It is growing revenues and gaming, movies, music, and hardware, including sensors in the iPhone. An issue to buy back, give it an increase, and to buy the one stock split, all while having a P.E. of just 14, yet it's stuck in the mud. The stock I'm talking about is Sony Group, stock ticker, S-O-N-Y. I like it, but they got to get out of this. They got to, like, tell me, listen, we're not interested in the takeover, because I just like the stock, as is, and it's been weighed down by the takeover talk. And that, ladies and gentlemen, is the conclusion of the ladies round. Sometimes the market's so wrong that it just takes your breath away, it can't get its head around the great things that some executives do to unlock value. Take last night, Ed Breen, the amazing CEO of DuPont, announced that he's splitting up the company into three separate companies so that Wall Street will finally start giving these businesses the credit that were. Given that we owned DuPont for the Chapel Trust, I was thrilled and also stunned this morning that nobody seemed to care. I remember when Breen broke up Tycho nearly two decades ago and made a fortune for shareholders. I mean, just incredible. It was one of the most celebrated breakups in history. I remember when he did the same thing in the chemical business, merging with the old DuPont without chemical, then breaking them into three separate businesses, the current DuPont's especially materials component. But DuPont still got a divergent mix of divisions, and it could use the Tycho treatment. Put simply, DuPont's got an electronics business with 4 billion in sales where they make materials for advanced electronics. They got a water business with 1.5 billion in sales. That's all about water filtration technologies. And then there's what I guess we call New DuPont, the core specialty materials business, including Tyvek, Cavlar, 6.6 billion in sales. I think Breen's right to break this up. The three divisions are worth much more on their own. There's no real synergy. The divisions don't help each other, and Wall Street would be very, very excited about all three separate entities. So naturally, I figured the stock went open, maybe four or five percent to go in. The reward from there. I'm won't squawk in the street when the market opens. And I hit up the story in Double D and yet the stock's down a dollar. I was stunned. First, you're getting a New DuPont that's far less cyclical than the old one. It's got healthcare that's about medical devices and packaging. Hey, that's the business I love from back in Dickinson. It's got energy storage and electrification. I'm sure EVs are down right now, but how long will that stay? And it has safety and protection. That's a fantastic business. Back in the days when I owned and in and summoned New Jersey, we had to spend a lot of money dealing with fire and safety regulations. And let me tell you something. Nobody ever rolls back a law that's meant to protect people from getting hurt. The New DuPont could be an acquired sell, but it also keeps spinning off the divisions. Some of you have Breen kept doing the legendary Tycho breakup. More important, there's a lot to like about the two other businesses. One, electronics has been down the dump for a bit because it's heavily tied to the semiconductor industry. But after several years lost the water issue, you know, the cities have caught fire and tell you that every day. The breakup here is going to take eight to 12, 24 months. And then there might be a term, you know, we don't know how long of waiting for the law before anybody can acquire these companies. Oh, but in the meantime, look, they can buy others. They can make a ton of money. As for water, it's all about drinking water, municipal wastewater, industrial wastewater, desalination. And right now, I think it's being valued at an incredibly low multiple versus what we call the comps. It's comparable companies in the industry, like Xylem, Pentair, Virato, anyone of which would love the acquired DuPont's water business. Oh, no, we come up with a sum of the parts valuation of $100. And that's conservative for this $79 stock. If you want a more detailed breakdown, you should join the CMC investing club where we did a deep dive on this child trust holding. Long story short, the market often makes mistakes, but ignoring the DuPont breakup is one for the box. We've got a most successful breakup part of our generation with the possible session of Larry Culpe, GE, and he's decided to take apart a portfolio of companies that are obviously worth much, much more separate than together. What's not the like? Let's just say you have a chance to buy DuPont much, much lower than it deserves to be. Perhaps it's been two long since Breen last worked magic for a whole new cohort of measures to recall, or maybe the machines that do so much trading these days made of spelling are who knows? It's your opportunity. I think you should take it. Like I said, there's always more market somewhere. I promise I'd find it just for you right here on Man Money. I'm Jim Kramer. See you tomorrow. Last call starts now. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com/madmoneydisclaimer. 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 or future differently, at cappella.edu. [BLANK_AUDIO]