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tv   Mad Money  CNBC  October 20, 2021 6:00pm-7:00pm EDT

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>> dan -- >> auto tinaon >> do is. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. call me or tweet me. the bears always get the benefit
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of the doubt they just sound so much smarter than the bull, don't they? we always treat the bulls as lightweights drives me nuts how the bears have such reference. for decades they have given the absolute worst at dvice but they will never admit it. they know nothing. act like the bears are the only ones with gravitas it's easy to find super rich, super smart bears t they are the most risk adverse they have already made their money. you only need to get rich once, right. they can afford to have total
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contempt for the stock market. why would they want to invest in something that could go down rather than parking their money in municipal bonds the truly rich and the megarich tend to only worry about one threat and that's inflation. someone making $15 pre-pandemic might be making $30 now. i remember what it was like to live out of my car an extra $15 is live changing. they love the argue the real victims are people that work for a living they're the victims. call me crazy. i think a strong labor market is good for workers the problem is boys have the
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strategic ability to grab it by the mike so many are super rich i think many of the wealthy willingly or unwillingly are pulling up the ladder behind them they are scaring you away from some of the best stocks in the market that don't have anything to do with inflation at all. it's a group i'm now calling can. c tan. tesla, amazon and netflix. tan, it is i think tesla, amazon and net netflix, while e doni don't con
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with hedge funds, the stocks were going to zero now know who i'm talking about when i say you told me it's going to zero, you losers. if anything, it did the opposite these are some of the most can feel successful companies of all time they spent years coming on air amazon, just a ponzi scheme. a company borrowing billions to become a national book seller. turns out they borrowed billions to become the best run retailer.
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mo moderna used the platform to crack the code of covid. they want it to be something else it's a record club a business that's more antiquated they decide to sell other people's content via the internet. they will never admit other than to say they got out in time, which i'm sure they didn't that leaves me with tesla. i heard a lot of people talk trash about a lot of stocks. i can't believe many that were
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derided as tesla musk going to jail these sure sounded like good reasons to short a stock, at least if they were true. they were gbogus. also under price, tesla a tech machine on wheels whose time as come one of the reasons i like nelson who was at halftime, he said he didn't think like a rich person. he's like a young person someone still trying to make money.
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do you think it's a coincidence that so many hedge fund guys made giant hedge funds against t.a.n. and lost. they wanted to create wealth with the shareholders. they were willing to take huge risks for you. if you already got a billion dollars, it's meaningless which is why they had no appreciation for these companies or their leaders. the bottom line, it's time to end this ridiculous charade who have been bearish for ages
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they have a very different agenda from you and we need to stop pretending otherwise. quinton in georgia >> caller: thank you so much for taking my call >> what's going on >> caller: i actually just went to palm springs this past weekend. i was in the airport and i had t this epiphany of about 80% of the travelers wearing lululemon. i want to get your take on supply chain and the price of cotton >> good question about supply chain. they havebeen very open about it and whatever problems they had. cotton, i know every one has figured out about cotton but it's not a reason to sell lulu it's the first one to buy if it were to come down below 400, i would buy some kim in virginia.
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kim. >> caller: thanks for taking my call >> my pleasure what's up? >> caller: i have a question about micron and 26. >> here is the issue i spoke with sanjay today, the ceo. every analyst in the book seems to decide that thing is shot i believe it isn't i think they're three, four points down and a lot rest up. it's much more than just for heavens sake those are going down in price. they have hard time making the quarter which means it's not going up from here the big bet against it going down doesn't make sense at this level. the bears always seem to get the benefit of the doubt no matter how stupid they are. please remember bearish billion flairs have a different set of priorities than most of us it doesn't mean they are smart sometimes they were lucky. be careful taking advice from them without think about that. as the world reopens, they plan
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to help business digitize and improve experience doesn't sound like you know it, i'll explain it. we'll learn more about the mission. netflix reported last night up breaking down if it might be worth buying is it time to take a bite of the natural and organic stock in i'm talking to the ceo stay with cramer
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look at the stock. this experience management software, we'll explain it in a second the stock quickly popped to the mid-50s before plunging to the mid-30s a couple of months later. i always thought they had a great story especially at a time when companies are desperate to retain workers they does experience management for kcustomers and employees. beating expectations on every line and raised it forecast. take a closer look, ryan smith is the founder and executive
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chairman welcome back great to see you >> thanks. good to have you >> great to be on again, jim >> glad you are here we have a topic that i know you have more input on let me start with you. you're able to pull or tell people, i know you don't doe the surveys. those are out. they make it so that managers know what to do to get what ever is the right thing done. s >> the organization capture,
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analyze and act on the da fa that they can't get anywhere else this is experience data in is just golden. that's what driving the results. i'm proud of qbe e 3 in particular we have 49% growth we had 125% net retention rate prioritizing and investing. every company is competing for their customers in a world where switch cost is close to der. t -- zero. we are helping organizations deliver on personalized experiences. they are building deeper relationships at scale these are relationships built on understanding and not putting information into a database. they want great experiences that keep you coming back for more.
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that's what experience management is becoming that's becoming just as critical as a crm system or hr system for company. >> i want people to understand that experience management means trying to figure out what people want in this case, you are the only single source of truth about what to do >> first, thanks to our incredible team and customer base you go back 20 years when we started this company out of nothing, it would have been a dream to be in the experience world and to be at the fore front of such an kpexciting tim where experience is becoming the currency it's the currency of business. every one starting to realize this there's not a ceo that i don't talk to from george from crowd strike to tim cook where every one's going into this new world
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whether saying first of all, it was lot easier to send people home than to bring them back to work there's a premium on getting it right. what we're seeing is organizations mess up in a couple different ways to start there is they're trying to guess where people are at in the journey on wanting to come back. where they are in their vaccine decision making and reality is that guess work doesn't need to exist. you can measure, gauge the experience and understand as a leader, a leadership teams how to bring people back based on the information you have and predict what's going to happen when you do that getting people back into the building or developing work, whatever that is is just the first step most of the time in product and innovation people get it wrong it's really important that we're measuring and we're understanding the impact of the decisions we make of pulling people back into this new future because there's not a company
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that's been through this before so the data doesn't exist. i've always said if the data exists, you google it. if it doesn't exist, you have a -- >> i like that verb. it's the kind of thing that people are trying to figure out. the customer service is better than i thought if you go through the acquisition and help people understand why the in your opinions are so superb >> we acquired a company who pointed out over a billion dollar acquisition it's game changer.
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we built the world e's most powerful platform. people are sharing feedback everywhere you can harness the indirect and the direct feedback. there's an airline customer who is getting an error message when trying to change a flight. when they call into the customer service, claire bridge identifies the context of the conversation, the frustration that might be in the callers worlds and the tone. they identify them as a premium flier. most importantly, if this turns
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tout be a common experience, they can alert the company to the larger issue, provide the detailed information >> i love this a lot of this is available on the website. they have transcripts of a call where someone is like too heated you picked up some very, very big customers. big visible customers who are happy to talk about it like door dash has opinion a big find for you guys rgs right >> it truly has. we have been on for a couple quarters talking about different industries and look at door dash, we were powering the customer experience for door dash really through the pandemic and they had incredible growth
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they've been able to be nimble to adjust their offering from and through the customer experience what we're seeing is a broader trend where now people are saying, wait a minute, i can have my customer experience on the exact same platform that i'm running all of my employee experience with the great resignation and everything that's going on, people are starting to standardize from wall to wall these are the innovative company. they are saying, look, whether we're going for multiple products to single products to mull approximate products, whether we're trying to understand what our experience in market, if you look in georgia's case they're hiring in a bunch of people in hyper growth mode. they have to hire the world security experts getting that is important and having a conversation in a
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dialogue with your people, with your constituents at scale is really only possible this is what we're seeing. this is why the growth is what it is and people are saying, this system, this platform that is experience management is critical as anything else we have in the business >> well, i got to tell you -- s >> jim >> you're hitting it out of the park you and the jazz but good luck with you guys. you want ben simmons, i can make that happen. >> we're tipping off tonight it's great start ryan smith, best of luck tonight. it keeps coming up that ben simmons is angry
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maybe you can help me there. it's way over my pay thank you, gentlemen we're back after the break whadda you guys doing out here? there's a creepy man in a white mask. run, run! michael myers has haunted this town for forty years. if you track michael's victims, it's a straight line home. he's coming for me. we're coming for him.
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make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein bars and shakes. for every fitness routine. why does the stock of netflix get slammed today even though it seemed to have an excellent quarter. why does anything sell off on good earnings? usually the stock has too much going into the numbers netflix valleyed more than 23% making it the best performer by a four to one margin remember, the stock splent the
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first six months of the year trading sideways that meant netflix was like a coiled spring if we got any good news from them this is one of those companies that benefit from the delta variant. it meant people were stuck at home again there wasa ton of excitement about the current line up. they've had a onton of success with "squid game." i like the quarter at 11 different firms raise their price target not perfect. still very strong. when i see flet flix down nearly $14, i think you should buy this dip. it's too good too be ignored the headline numbers were solid. they are not the most important piece of the puzzle.
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remember you look for losses and nothing else from these guys the real key metric has been subscriber growth. these numbers stalled earlier this year. the last time netflix said they had 1.5 million net subscribers which was better than expected because management had given you a cautious forecast in the previous quarter this time they had 4.4 million net subscribers. that's much better what's changed in his letter as shareholder, reid hastings said there was a covid gap. remember they didn't talk about it at the end of the quarter
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the bulk of the subscribers came from the rest of the world europe and middle east, africa and asia tremendous growth they are a worldwide company so many of them are international. you had money heist and sex education. the spanish and british that everybody loves. there's the south korean "squid game" that was sampled by two-thirds of the subscriber base it's already the number one show
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in 94 different countries p they are doing merchandising. i think they have a brilliant formula here all that said, the numbers weren't perfect. f flet f netflix gave you another cautious guide they are pretty conservative.
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over the next three years that could change as netflix is running out of room to expand in north america. i think they will focus on monetization cfo said they plan to grow their margins at roughly 3 percentage points that's extraordinary fi that can pull it off, they will have a much larger market they started micking investments in vid ceo games they brought their own studio. their goal is to take gaming the same way they taken over tv. on the call i mentioned how all sorts of squid game content has been popping up on roblox. which brings me to the next piece of the pie they are putting the other fan events like disney for their
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most popular content again, just like diz sney not every one agrees deutsche bank hit the stock for downgrade. they think it's already baked in the 25% since mid-august i think that's wrong the quarter is a wake up call for anyone sleeping on netflix international business as for the stocks recent rally, you have to remember that was playing camp up the fang the bottom line, when you see netflix pulling back, management laid out a long term strategy, you need to look at it as a gift a gift to buy, not sell. anglo in pennsylvania.
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>> caller: hey, jim. earnings due on the 26th, is it time to get a position started on twitter >> i'm worried about twitter you see stories of paypal may be buying pinterest i think it's too nasty, too vicious, too horrible, too nightmarish. too disgusting otherwise, it's okay netflix pull back as a gift, it is s the just a gift. don't stare at it. take it. package food company demand is waning except for these guys we have a battle between the stay at home stocks and the going out stocks i'm discussing which could prevail as the country continues to be open all your calls, rapid fire with the lightning round.
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. in a moment where every one is worried that the package food companies could bet torn to pieces by inflation and is ramp ant, some of these stocks have managed to roar by taking matters in their own hands that's the organing and natural house. the stock sold off hard. sales came in weaker than expected the stock erased all the losses
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and management held very bullish investor meeting it's on tape you can listen to it and watch it where they rolled out some achievable long term growth and margin targets that helped push the stock up to its highest level. let's check in with mark he's present of hanes celestial. welcome back to "mad money." >> thanks for having me, jim >> sir, a lot of people are tuning in. productivity deprioritized we have now done hane 2.0.
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i think it's very exciting and i want you to tell us about it >> sure. we are moving from phase of resetting our foundation and now we're going back to focusing on profitable growth. we told off 23 out of 5 brands over the last two years. they are growing about 15 to 20%. there's terrific brands in high growth categories and we are very well positioned and we're excited about the growth potential. >> let's take a case study
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where was it three years ago and where is it now? >> it was our biggest brand when i got here three years ago and had a 2% ebitda market it made no money because it had been over extended we were in pizza bites and chicken nuggets and diapers and wipes. we consolidated to the core business we started adding marketing dollars and test been up over 20% now we're investing again. it's really good poetser child of what the strategy was intended to do and we're going to extend that to a lot of other
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brands i like baby food and snacks that don't make me fat and i like plant based meat that had been a a category one of 500 you emphasized this is going to work. it's a double digit growth category very well positioned there it's growing like crazy and we're very well positioned they had something made of oats
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and be like a yogurt in reality, there's method to the madness as you got it now. non-dairy is gigantic and only one company, oatly, is doing it right. >> we're only really penetrated in a meaningful way in north western europe we were focused on transforming and resurrecting the north america business >> they are delicious. you didn't have any money. now pepsico is moving in
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can you stay on top. it was the -- own the category there were so many categories you were trying to own i feel like others are coming in can you reestablish? it is number one >> it's a wonderful brand. we are turning on the support. we have product improvement there. it's the number one brand in the category we're really excited about the future >> one last question i know you have some brands. are those brands worth anything or just trying to bleed out and not get hurt
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>> about a third of the brands were losing money. every brand makes money. i think over time we will divest them given they are profitable, we're not going to give them away. they make money. i want to make sure the decisions we make are creative to shareholders. if that means they slowly fade out over time, that's okay the good news is it's only about 7% of our portfolio at this point. three years ago it was almost 30%. the dproet brand will really driver it. >> i think you have a better story than almost every other consumer it's good because you have the wind at your back and it's finally understandable i never really understood it i was always trying to be nice thanks so much
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thank you so much for coming on "mad money." >> i appreciate it take care. >> we're back after the break. [uplifting music playing] ♪ i had a dream that someday ♪ ♪ i would just fly, fly away ♪
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are you ready? it's a great way to start the lightning round. what's going on? >> caller: i'm calling in about a stock that i don't think has got enough attention it was profitable when it ipo'ed in may it was direct to consumer. founder led. when i go to work in the e.r., nine out of ten people are wearing it i'm call about the lululemon of health apparel fig. >> it's an interesting idea, kind of quirky but so was crocs. >> alhow are you? >> caller: doing well. big shout out to my girls. >> i like that it's an automobile semi.
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i'll see that and tell you i think it's been better >> it's held up pretty well. what do we think imp >> people desperately want a rarer play it's the rare play that is kind of a diamond in the rough. it's got some great facilities that's over from previous management it still needs to do more. it needs to get away from china. matthew in ohio. matthew. >> caller: booyah. i bought this at $12 a share it closed at 102 i think it will continue to go higher the company has a new ceo. thanks for taking my call. >> it is it's good. i like it more than international paper. it's a good packaging company.
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paul in florida. paul. >> caller: hey, jim. i had a question and reference to apph. >> it was just a feel good story. it's a lesson. it's a learning lesson for me that just because it's a feel good story, doesn't mean it can't go down 65%. that's exactly what it did it may not be as viable as i thought. let's go to kevin in illinois. kevin. >> caller: in the great city of chicago. love you, jim. i got to learn more about them maybe it's the next amazon maybe it's the next alibaba. can't really tell. let's go to dave in new york
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dave >> caller: long time viewer. first time caller. >> thank you >> caller: xl fleet. >> i had them on i had them on. the story sounded okay it wasn't okay it's hurt a lot of people. i don't think you have it and i didn't let's go to robert in texas. >> caller: robert here from dallas, texas. i've been holding since 146. >> price is going up and up and up i got to tell you, my friend, i saw a really good piece the other day. that's a winner. it's still very inexpensive. that, ladies and gentlemen, the
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conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade coming up, will the zoom boom yield secular space to a restless rabble of jet setters cramer has the answer, next. ♪ ♪ ♪ ♪
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ever since the pandemic got rolling, the stay at home stocks and the going out stocks have been caught in some claymation steel cage death match i call it beyond thunderdome situation. in effort to stay current, say it's more like a squids game and right now the going out cohort is winning covid first broke out, everybody except the aerosole said planes were the most dangerous place to be that turned tout be not true planes have such great filtration systems routes were slashed. thousands of workers were furloughed everybody was stuck at home. we discovered this easy to use service, zoom which made it possible to work from home star was born.
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zoom becomes a verb. it punches from 80 to 20 over the same period zoom goes from 70 to 160 and then to 560. now that united airlines has more than doubled off it ts lows while zoom has been cut in half, which horse do you back now? back in the going out one which means you better united airline ts why? first we know international travel is making a come back united is a winner second, i think people really want to go somewhere i know people are describing there period as the great resignation. the workers who resigned from their jobs seem to be in little hurry to find better ones even though they are widely available. we have gotten through the bulk of a murderous pandemic. i think that caused major
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attitude adjustment. business travel may be coming back i doubt it comes back with a v vengeance. it was very unfortunate when it fell apart oaf price. i'd like to see them get into gambling or gaming
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for now, i'd much rather bet on the going out stocks i think youunited has a lot mor room to run. the stock, not yet it's always a bull market somewhere. i promise to today a discovery in the florida reserve where investigators have been seasoning for weeks. i'm shepard smith. this is "the news with shepard smith" on cnbc partial human remains found near brian laundrie's belongings. >> a person of interest in the murder of gabby petito. >> how his parents are involved and what happens next. >> we've secured vaccines to vaccinate every child ages 5 through 11. >> the white house rollout plan to get kids' shots ahead of th

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