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tv   Mad Money  CNBC  November 18, 2021 6:00pm-7:00pm EST

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>> gold, on the other hand, i think to sell that one i know he likes it crypto down over the last week or so. i think that will probably reverse in the next couple weeks. >> 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. and i promise to help you find it "mad money" starts now hey, i'm cramer, welcome to another west coast edition of "mad money," welcome to
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cramerica, my job is not just to entertain, but educate, call me, tweet me@jim cramer. we need to talk about competition. it'ses best thing in the world if you're a consumer it's how you get lower prices, better products but competition is the worst thing in the world when you're running a business if you have shares in that business, i think that's the biggest lesson from the companies reporting this week, including today where the dow dipped 60 points, s&p advanced, nasdaq gains 4.5%. unbridled competition is wreaking havoc, and putting tremendous pressure on a number of stocks. in fact, that competition is extra deadly right now, and i'm going to tell you why. big institution money managers who control the largest pools of capital are searching for companies with two characteristics, they wanted fast revenue growth but they
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also want rise gross margins if you don't have rising margins, you know what that translates into, it translates into the kinds of things i most fear about, maybe some companies are simply buying revenue at a ridiculously high cost, rather than focusing on profitability down road. we don't know what an underlying company is worth if it can't generate actual earnings or just buying revenues, so where does competition come in. all right, well, when you don't have much competition, it is easy for your gross margins to rise, because your customers don't have many alternatives competitors translate directly into higher earnings and higher stock prices this isn't a new idea. i created the term faang and added a second a facebook, netflix, google, were unbr unbridled companies with fast revenue growth and expanding mar begins fact they are in striking distance of all time highs, shows the challenge of limited
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competition. no one is challenging google and search, no one can touch facebook and twitter, and amazon has been up and down solely because of its margins but i think that's mostly under their control. apple has production issues. we're seeing their phones are selling incredibly well, and the stocks hit a new high, based on words they're moving into home grown electric vehicles. i say own it, don't trade it then there's what's arguably the greatest market darling of the current era, and that is nvidia. which we're speaking to tomorrow i can't believe we're going to the oracle, the oracle of tech, the oracle of philosophy, yes, jensen wong. this semiconductor, and software company, we're not pitching as a chip company, this is a tight, and it's got the fastest revenue growth, and outstanding growth margins i have seen of any large
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company. i'm so thrilled to make the pilgrimage to the headquarters tomorrow it was truly a thing of beauty the stock's 8% rally, i read it from 1:00 a.m. to 3:00 a.m. today, and i'm still trying to understand everything they're doing, but i'm not going to stop now i am thrilled that my travel trust owns all of these stocks, save netflix, and it's awfully hard to go wrong when you bet on companies with strong sales growth and rising gross margins. that's what i teach them, which i'm urging you to do okay enough positives let's go to the dark side. the companies that haven't been able to deliver the one-two punch, and what happens to their stocks in many cases, these are victims of ruinous competition take the payment space, for years, financial technology was fi fintech, they love it. the growth was extraordinary plenty of growth to go around.
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not a lot of competition, but this is the quarter that many claim is the end of the line for fintech, especially since there's so much money going around to fund new competitors at scale meaning that they have real heft from the get go, taking on the credit card industry, and by extension, processors, visa and mastercard, a firm became the exclusive buy now, pay later for amazon, something that would have been a nice plum for square, given they just shelled out 29 million for after pay another buy now pay later service, and we know it means a lot to macy's, too, as we'll find out later in the show klarna, which is a force internationally, they just smash everyone else this margin, including my beloved paypal, a company with a once roaring stock being crushed mercilessly every day. earned a big chunk of the business of macy's
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no, not happening. in short, the battlefield is now littered with fin tech busts, and while we're buying paypal for the travel trust, can i tell you something, mastercard, the recent action is a humble reminder that you can't afford to get cocky about a segment, a sector, that it always seemed to be hot, for years and years and years, it's now gone cold. second example, we're seeing the beginnings of a war in the electric vehicle space this could be better for selling. we were lucid earlier this week. now, though, ford has announced it's doubling the electric vehicle capacity, and it will have the chips to ramp up production, at the same time, we just learned that apple wants a piece of the pie, too. nobody has the brand name that can be with apple, except tesla. when you see competition exploding all over the place with rich players, guys are loaded, you got to bet the gross
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margins are going to come down for the entire industry, and no longer just going to make money and do well because they're not unionized. huh-uh that's the sell off. third, have you seen the gambling stocks lately try not to they're being crushed. they are just being annihilated and why? well, i mean, i can tell you why, it's because there's too much competition that wasn't the case when draft kings came public via spac a year ago it looked like they had the whole field to themselves, and national gaming came in. real rivalry with bar stools and the companies with no real cost of capital, the casinos, the digital rocket been squeeze while the cost of acquiring new customers is shot through the roof i don't know how through the industry without aggressive consolidation. it seems like the days where digital gambling was just a green field are over seems uninvestable i like the pure casino stocks
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but they are caught in the morase take a look at walmart or maybe don't. don't look at the stock at least, virtually every retailer is blown away this earning season there has been very little discounting, and promotion stocks are 21% today, we have an amazing quarter, wow but walmart, it actually chose not to raise prices. it decided it wasn't going to have a good stock. it decided to be a price cutter. wall street is furious ski that took it out on the stock, zero benefit for those running the largest retailer in america. they can do no wrong because they're passing on rising costs to the public, and the public has no choice, and especially the professionals who buy stuff and then do over your house. why do they have no choice, because these two chains have single handedly wiped out the competition already. there are no small hardware stores to speak of i know it seems like a sim
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police -- simplistic way to judge stocks, but that's not what i'm talking about here wall street loves more than anything what they want is when companies can make fortunes because they have little competition, they have tremendous pricing, but are they going to keep raising prices on you at will. the bottom line, it's no secret that many of these silicon valley stocks traded at lofty levels, because they have no rivals whatsoever. as we have seen from the melt down in the financial tech stocks, you get complacent at your own risk when you got those fat gross margins. i say stay close to gross margins because they more than anything else is the coin of today's wall street realm. i say we take calls in the special west coast edition i think we start with michael where we were, new york, michael in new york. >> hi, jim, mike here from
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oceanside, new york. first of all, i want to thank you for everything you do for us regular investors. we love your show. >> thanks a lot, buddy. >> i know you told us to stay away from peloton, unfortunately i did not listen to your advice on this one. i like the brand and took a chance my average price is $92. i got out of 75% of my position. after a recent earnings report my question is do i hold the 30%. >> i don't like a company that tells me it doesn't need to raise money, and raises money. there's a company called bed, bath and beyond. they have hangers for sale, i'm going to tell my wife to maybe put the peloton in the closet, and go buy some hangers. that will probably save us money. please, i want to save you money. many silicone valley stocks trade at lofty levels because they have few rivals as competition wreaks havoc across a host of industries, it's important that you don't
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get complacent social media companies were hit hard by apple's privacy rules. how is twitter doing in that world. don't miss my exclusive, and the miracle corner on 34th street. shares of macy's rally 20% i have to tell you something i see much more ahead. my sit down with the company's top brass: you don't want to miss it. stay with cramer don't miss a second of "mad money," follow @jimcramer on twitter. have a question, tweet cramer #mad tweets. e-mail or give us a call at 1-800-743-cnbc. miss something, head to
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is social media in crisis thanks to these new privacy rules of apple they get harder to do targeting advertising. last month s.n.a.p. reported a dismal quarter and the stock went into free fall. twitter told a different story, delivered a generally solid story with inline sales, highly active users earnings came in a tad light, and that was one time items. according to management, twitter is not getting hurt by apple's privacy rules because they do brand advertising, though not direct response. in fact, they see these privacy changes as an opportunity because they make brand advertising more attractive. initially twitter stock jumped in response, then it quickly gave up gains, and actually sold off hard the following day since then it's continued to go
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lower, kind of a quandary. a good buying opportunity especially because it reigns supreme as the place to convert, and that matters tremendously to the people who work there. before i weigh in, let's check in with ned seigle, the chief f financial officer of twitter welcome back to "mad money." >> thank you for having me. >> people come out here to work because they have a purpose, and twitter is, as you know, i think, the conversation of the world. is that driving the best minds to twitter >> it's foundation for everything we do our purpose is to serve the public conversation. that's how we attract and retain the very best people to the company. that's how we attract the conversation that happens on twitter. it guides our policies, our principles, and all of the work that we do it also brings advertisers to twitter because they understand and want to be a part of that conversation. >> okay. now, obviouslythe next questio would be we've got a presidential election coming up in 2024, do you let anyone who is running for president be part
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of the conversation even if they have been previously banned for twitter, here i am thinking about former president trump. >> there are no changes to the policies and all the decisions that we have made in the past. you know, there are elections happening all over the world, all the time on twitter, and the conversation around them whether it's from the candidates themselves or from people with lots of opinions that they want to share or people who want to learn and see all sides of the conversation are so robust and we work so hard to enforce our policies, clearly and transparently and consistently, regardless of whoever it is. >> do you go through the ranks and, say listen, these big decisions, including the banning of president trump, we want to know whether they're on board. >> we try to be thoughtful when we create the policies so that when the decision is being made, it's really just about reading the policy and thinking about how to enforce it. >> i've got to tell you, as soon as the apple decision came out, i said these guys are what we call first party they're not going to be affected it's going to get a lot more
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advertisers. i still think that i didn't think the quarter cthat was bad so to speak. you and i are both mystified that the stock is still going down. >> we feel like we left the quarter with the wind at our back, ads revenue, 41%, we grew our audience 13%, accelerating from q2. we feel like we've got tremendous momentum going into what is a really important quarter in q4 and as you mentioned, we're not as impacted as others by apple's changes, because of our brand advertising and because there's so much unique signal on twitter we historically haven't leveraged as much as we can. >> let's talk about that i agree, you know i think the personalization, which jack dorsey has been talking about is the key to social media and the key to the web you know i think there's a lot more ways to monetize. is it distraction that's kept you, you know i think there's pots of gold all over the site >> i think 41% revenue growth
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suggests we're not distracts, we're laser focused on our revenue product road map, which is continuing to build out our brand products but also getting the 50/50 brand revenue and direct response revenue over time our map ad formats, these are app installs where you click to download, whether it's from a crypto advertiser or a betting advertiser this is a great way for us to benefit from secular trends that are happening in the world web site clicks helps us connect buyers on twitter with the people who are selling goods and services you know, well more than half of the ad revenue for twitter is tied to services and digital goods, not to physical goods, so we really feel like we're laser focused on the road map, and got a lot of opportunity in front of us. >> crypto, i know you were quoted the other day in the journal saying as the cfo, not ready to do business but you know, we had cfo of sister company, she's all in. can you be all in as cfo i mean, or is it just too
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difficult to transact, say, in bitcoin. >> i don't think investors buy twitter because they want exposure to bitcoin but there's so much that we can do with crypto to help people on twitter. you can go to my profile you can go to the top right, and you can click on tips, if you like what i'm doing, and you can tip me in bitcoin. you can tip me with the cash app, you can tip me with venmo as well. we have hired a crypto lead who's going to help us think about all the ways we can leverage crypto and block chain technology to help people on twitter. we don't need it on our balance sheet in order to make sure that all the benefit that is crypto can deliver to people on twitter are there for them. >> why can't we go to twitter and be willing to pay for special fees that help us? i'm going to give an obvious one, in gambling, help us in more importantly for me, fantasy. 55 million people play fantasy, but i think all 55 are tuned into twitter, but i don't feel like twitter is getting compensated for the information they give me.
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>> i know you spend a lot of time on twitter, jim, you have 1 p1.7 million followers, you follow sports teams, and the markets. you come to twitter be a part of the conversation and see what other people are saying. there are going to be ways for us to monetize twitter over time, through ads and subscriptions. although you won't be bed bet betting or twitter, you're going to download the twitter app. we're going to continue to grow the investment you see from the financial services and crypto advertisers on our platform over time >> one last question, this comes from my daughter who first put me on twitter in 2009. she said you've got to ask ned why he allows all those nasty comments about you, and ask him whether that's because twitter makes more money having those than not >> well, as you know, we work so hard to promote a healthy conversation on twitter. >> you do. >> we want people to feel safe being a part of the conversation we want them to trust the
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information they see we have policies that we try to enforce consistently, transparently, and all around the world in the same way, and we've promoted more and more controls for people. you can go to twitter now, and you can start a conversation and if you don't like how people are replying, you can remove people from the conversation. you can block them >> how about if we ask for their real names. >> there's some situations where having a real name might be helpful, and others, such as arab spring that allows people to speak truth to power that can be incredibly important. we have to find the balance between those, we hold everybody to the same account, whether it's a real name behind the account. >> and that's absolutely true. you have tried every way you can. it's a tough situation when people want to trash you it's tough. >> getting more control will help you continue to tweet as much as you do, but also help make sure that people whose voices don't belong in those conversations aren't there.
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>> and you know i will you know i enjoy it, too early morning, late at night, doesn't matter ned seigle is the cfo of twitter, has always been great, forthcoming, always helpful and i still think the twitter stock is worth more than it's selling for. let's just see what happens. back after the break coming up, this icon didn't wait for a miracle on 34th street cramer catches up with a company that's having a year to remember next
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we knew this was going to be an incredibly good quarter for retail we didn't know it would be this fabulous macy's up 21% after reporting a magnificent set of numbers here's a stock up 175% for the year before today movement. it keeps higher, business is on fire wall street was only looking for $0.31. there's a monster beat inventory flying off the shelves. full price new york city promotions and still looking for 32 even better, the company is make big moves to expand the digital footprint, and i wouldn't be surprised if this can continue to run and run and maybe run further. let's dig deeper with jeff gwinett, the chairman and ceo of macy's friend of the show, congratulations on the quarter, and welcome back to "mad money." >> thank you, jim, it's great to
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be with you. i see you have treasure island right behind you. >> gorgeous, fantastic, i know you know the area well jim, i got to tell you, this quarter took my breath away. we could be talking about how great online was the millions of new people that have come to it, but i am struck by the fact that if you do third party and beautiful c, i think people want an alternative to amazon could macy's be that alternative when it comes to nice apparel. >> what i say, jim, is that, you know, obviously the polaris strategy is getting some traction, and you know, through the pandemic we have really focused on transforming into a digitally led omnichannel retailer, and what you saw today is our announcement that we were going to add a marketplace on top of our tracking to be a $10 billion web site now, that always works in conjunction with having brick and mortar, in the mall, and what we're experiencing in off
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mall brick and mortar formats. we're just in a healthier place than we were when we entered the pandemic you look at our balance sheet. we have had the opportunity to invest in our business, and we had a good post today thanks to 100,000 colleagues that wake up every day ready to serve this customer. >> let's talk about all the new customers you're bringing in i've always felt that was an amazing metric the fact is macy's is growing and growing with new people. can you tell me, what's the demographic, younger people coming in, these are people who definitely want to use any sort of omnichannel that you've got going. >> yeah, so we had about 4.4 million customers that came into the brand in the third quarter. and a portion of those were core customers that were reengaging that we hadn't seen them for about 12 months, but the bulk of them were brand new to the brand, and jim, they're younger, they're more diverse and they're predominantly coming in through digital and they're coming in on new categories, and we now have the
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opportunity through everything we're doing with our personalization initiatives to start to see, you know, new ways for them to shop the second and the third time we're finding that they're finding their way into the stores it's just been a great fly wheel for us, and so what we look at is of those new customers, we want to see at least 20% of this shopping with us the next quarter, and that's what's been happening. we have been on this run of new customers coming in, and we now have a loyalty program it's 70% of our business, and so we have this opportunity to move away from broad-based promotion to now go into personalized messaging, and that's also helping our profitability. >> look, my first credit card was a macy's credit card like many people of my generation you've got buy now, pay later, could that lead to people having a credit card, lead to a macy's credit card, which is an incredibly profitable operation. >> you know, that's exactly right. that was like a very very needed feature of ours was basically to
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have installment pay, and not have it in big ticket or fine jewelry, but anything that a customer wanted. this was a younger customer that was asking for that. this affiliation with klarna, big win. pay pal and venmo, new ways to transact is with the younger customer in mind, and so it's been a big win for us. >> all right so i want people to understand how important this is, and you're the person who can explain it really really well to our regular all of udience. we will select carefully selected third party sellers with our customers in a scaleable way and provide everybody greater breadth of assortment and exciting products could you walk us through this this sounds like a curated amazon >> we invested early in digital, we have the second largest web site in our country, and our category is next to amazon, and we were doing it with basically owned inventory, and basically
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doing it with direct and we were looking out at the landscape. we saw a lot of the behaviors of the customer during the pandemic, and they were asking for categories and brands that we didn't carry. you know, in the pandemic, bread makers was an instant sell out, and we had an opportunity to look at how do we accomplish this the time chs was right for us t develop a marketplace. in the past year, we did all of our research we looked at where the competitive cycle was. it stands for fashion and style. we picked the right partner in miracle, which is going to be our technology partner that's going to build this marketplace with us. with a view in mind that this is going to be inkrcredital value,n top of the 10 billion we have put out there as a marker. this is going to make happier customers in new brands, new categories we're going to connect sellers, do it through miracle, standing up a new organization to do it, and doing it at bloomingdales
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and macy's, and it's coming it our customers by the back half of '22 . >> are people going to do what my wife does, get the personal shopper at bloomingdales for the holidays >> that's the other thing we sn announced with live shopping, through the pandemic, through necessity, how do we want to attract customers that didn't want to come to a store. now we're using our amazing colleagues as basically personal shoppers, and they're doing that virtually. virtual shopping from one to one or one to many is also a new piece of our arsenal in both brands. >> last question, partners brought in, they're analyzing the possibility of spinning off the omnichannel, spin off the web. i have to tell you, it's possible that the company's worth twice what it's selling for if you do it. >> let me just tell you, at the end of the day, what i think everybody can agree on is the omnichannel behavior of the customer that customer is going to be
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respected at all costs, so you know, the board, myself, you know, our advisers, we look at this all the time, and we look at how is the company more valuable to the shareholder, as a unified company or as separate companies, and so that's what really led us to our transformation strategy with polaris that we're getting good traction on. there's lots ahead of us but with the value that the market is putting on ecommerce, we needed to take another look, so bring in an alex partner, which is a great third party they're going to pressure test this they're going to work through our analysis, we're in the middle of that right now, we don't have any conclusions, but we'll be transparent with the market about where those findings take us at the end of the day, we're going to take care of this omnichannel customer. >> i know you are. this is just a great moment. you've built it for a long time. it's really happening. jeff gennette, thank you for coming on "mad money" and sharing the story. >> thanks, jim thanks for having me
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>> "mad money" is back right after this break coming up, this cramer fav has been a long-term winner, after earnings, what's next for workday. we've got the ceo next (soft music)
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and at genesys, we're proud to help them help you everyday. everybody loves to complain about inflation, but don't forget there are plenty of companies that benefit from rising prices, especially the rising price of labor. companies like workday, the cloud based software program that makes it easier to automate jobs in financial planning and human resources. the other stock has been what i call an anointed winner,
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catching up grade after upgrade in recent weeks, hey, it doesn't seem to matter that they live an incredibly strong set of numbers. revenue growth at 20%, robust guidance for the next quarter, too, even better management raised their full year forecast, guided at 20% subscription next year that's the kind of growth i want wall street seems to be freaked out because they replaced the cfo or they don't like the $10 million acquisition alongside report today i liked it mainly i think workday is selling off because it came in too hot. a real mistake than do anything than buy this dip. that's how powerful the underlying numbers are the newly appointed chief strategy officer, gentlemen, congratulations on the quarter, and welcome back to "mad money." >> we're seeing an amazing acceleration in your business, what's behind it. >> great to be with you again and in person, first time in a
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couple of years, very nice you know, the cloud goes forward unabated and i think coming out of the pandemic companies are reevaluating their systems, and they are trying to move as much into the cloud so they can run their businesses in a remote or hybrid work environment, and labor is a critical area and shortage of supply right now so it drives people to look at their hr systems in particular a great quarter in hr, and finance. >> what i'm noticing is there's a whole new kind of work forceous there you can call them gig. i don't like that. that doesn't work. extended nonemployees. you made an acquisition. to me, it's a gem. i didn't know it existed as soon as i heard about it, i said that was brilliant. >> yeah, we bought a new company today or we intend to do so with a company called venley, attaching to the trend that happened in the pandemic workers want more flexibility. companies want to have more control over their extended work force, and also be able to flex
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and expand quickly venley allows companies to manage their entire work force from sourcing all the way to off boar boarding if they need, for non employee work force, you get a total optimization for workday. >> i realize i should have thought about it a long time ago, the great resignation, it's workday, the great resignation means people are leaving but you don't necessarily want them to leave. you have to figure out what to do 4 million people leave the wor force in september what are you doing in order to help companies that are desperate about this great resignation. >> i think two things, number one, we're trying to help companies keep their best employees. >> yes >> and that's leveraging our new pecan solution where you understand how engaged your employees are and what their sentiment is that's number one. number two is continue to improve your employee skill set so they feel like they're learning through a learning management efforts, and then of
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course a very powerful recruiting platform to get new people in as soon as possible and get them trained up. >> you have won a number of giant ones, i'm going to talk about them, but look, you also can put out a release, both not able to put out such an incredible release workday announce expanded use of applications across google's global work force. you are very close, do a lot together. >> very close. a great partner. we're em bbracing google cloud, they're embracing workday. it's a great way to work together they understand how our products work as use ers and they have a amazing cloud along with the other providers out there. >> man i know well, doug dearly from philadelphia, i asked him, i said, you were mentioned in one of workday's releases. he said, they're coming in, they're going to convert things, we liked them immediately, we just started working with them what will you be doing for now. >> i think that toll brothers just like many companies are looking and seeing that there's
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there acceleration gap what they were able to do in the p past and what they need to do in the future being on a platform like workday, allows people to run in the now. recalibrate, ahave all the data at their finger tips, recalibrate, new processes in place overnight. being able to really accelerate their business by being on this new cloud 2.0 platform. >> so there must be people at this point looking at your business and saying you know what, we got to stop you won key bank, it's incredibly important it's a nationwide bank but they have disparate systems, you are starting to win business that is clearly being taken from others. you have always had amazing win rate when do people it try to stop workday. that's how powerful you have become. >> i think our competitors have been trying to stop us since day one. and, you know, as long as we do the right things by taking care of employees, building great product, taking care of customers, we don't worry that much about competition
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we worry about are we still intimate with our customers are we hiring the best and brightest. the best product doesn't win all the time but it sure wins a lot. >> it really does. my wife is on the board of the college, buck nel, and always checks in and tells me workdays is continually finding ways to save money but in a gentle way you don't come in like gang busters and say fire 50 people >> not at you will a and then allow them to move forward. you mentioned student by the way, you mentioned bucknell, the whole state and local government and then also the education market has been great for us recently. >> it really has been. i don't know if people understand how huge it is. and it's good because the schools don't have as much money as they used to. >> they face the same problems as all enterprises, they need to modernize, move to the next generation of technology we have made an investment in workday students, which actually
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runs everything soup to nuts for universities and that's been really successful for us the last couple of years. it's been driving some of our state and local business as wew well. >> i got to tell you, this is your moment. there have been many moments of years. this combination of what's happened post pandemic, and what companies need, and what you can do for them, it's fantastic. i would give you the big handshake, but we know the new world. i'm thrilled to see you in person workday's chairman and ceo, aneel phusri and i think you got to double down it's that good for them right now. "mad money" is back after the break. coming up next, cramer is bringing the thunder and answering your burning questions in today's edition of "the lightning round."
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it is time it is time for a special edition of the mad money lightning round. and then the lightning round, are you ready, jay in tennessee. >> booyah, jim f, from tennessee digital world acquisition and the trump combination, how does it look? >> jimmy chill, not to go too
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close to that one. that's what i call a dice roll, and i cannot opine on a dice roll too hard for me. jim in nevada, another jim, jim. >> cramer. >> yo yo >> cramer i've got about $4,000 in short-term losses on lemonade i go long-term next month, should i dump it, and if so, what do i buy. >> it's down so low. it's just been such a terrible slug i even like that last acquisition, i want you to hold on to it for a little bit more, okay it can't be this bad there's an advertisement for you. lemonade, it can't be this bad let's go to josh in new york josh >> thanks, dr. cramer, how are you? >> i'm feeling doctorish myself, the chill man's doctorish, what's going on? >> excellent hey, thank you for being the voice of reason where the market goes, i really appreciate it >> doing my darn best. thank you. >> all right well, i'm talking about a fertility benefits provider
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called progeny, what can you tell me. >> we like this company. who the competition is, can't beat that, they have no gross margin problem i say buy. >> go to sharon in california. >> boo ya, jim >> it's sharaf, i'm sorry. >> i've watched your show for over a decade, and i'm baffled with how you keep up with so many companies. >> i don't sleep, itc have a miserable life, and this is all i care about. >> so i've heard i appreciate your knowledge. two blow out quarters, growing revenues over 100%, but still seems under the radar, what do you think of the artificial intelligence, job matching companies, zip recruiter, ticticker zip sgr. >> every time i go in the elevator, the deal came public,
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no one is focused on it. i think you own it i think you're right it needs sponsorship badly, though and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade coming up, cramer tees up some can't miss context around big money moves in the markets next >> cramer, you are super, you are awesome. >> thank you for inspiring me to get in the game. >> your show is the best i'm so glad you're on tv. >> i want you to know you have transformed me thank you, cramer. so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart.
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choose the app that fits your investing style. ♪♪
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coming up, awaiting a
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verdict on the kyle rittenhouse trial, live coverage from kenosha, plus is the hologram industry ready to go mainstream. >> the facts, the truth, the news with shepard smith, next on cnbc you need to understand something about institutional selling. now that so many stocks are getting hit with it. first, institutions are hobbies. they tend to have two arms, the trading arm and the research arm, and they're combustible when working together against a company that screws up take disney, this was supposed to be the best of the reopening plays, people were going to flock back to the movies, and the theme parks, once the pandemic came to an inevitable conclusion this started another business, the streaming service, that's become the be all, end all of the stock. doesn't matter if the movies are doing well wall street only cares about disney plus sign ups it's like the old days when wall
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street only cared about espn subscribers. so when disney plus started slowing down, what happened to espn, it happened this quarter, some very big institutions, somehow felt betrayed or fed up with this iconic company so now they're full of wrath, and that wrath blinds them to the reason why we've got a small position for the charitable trust. iconic franchises, including the most coveted intellectual property in the world so why dump it when it's down this is a company with a stock that is cheaper than it will be when the excitement of the pipeline becomes clear, but that doesn't mean a thing right now it doesn't matter to wall street it doesn't matter to the big institutions that do this when they're angry. let's walk through it. let's say one of them out of bounds 25,000 shares in disney, and they believed disney plus was going to grow like netflix, and the researcher responsible for following disney doesn't like the conference calls, it's not going to be the netflix
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after all and go to the portfolio manager, and express their dismay, and the research boss says what are you waiting for, get rid of that darn thing, every single share, sell, sell, sell, sell, sell, next the person in charge of the position runs the trading desk and says, you know that disney position, 25 million shares, i want it out. i don't want to see it ever again. get it off my sheets now, when i work with karen cramer who previously ran an institutional trading desk, how much do you want to lose today, what kind of low do you want me to lose, that translated means how many shares do i have to sell today, and how low are you willing to sell them, what price. if you look at what's happened to disney stock over the last week, it's clear enraged portfolio managers said i want all 25 million gone, gone today, any price, i don't care, just get me out now, the traders have a difficult balancing act, they have to balance the wrath of the pole manager versus what they think is a reasonable price because their pay stems from how
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well they can off load positions without destroying the stock the portfolio measures, well, it's i don't want to say it's unimportant but it's not paramount for them, so a trader might pick up the phone and call say goldman sachs and say listen she's a time sized seller, 8 figure size disney to go now, there may have been a time when disney stock would have traded like this, goldman would call back and say you know what, last price was 158, i will bid you 156, down two points for 25 million shares that doesn't happen. that's called positioning. it just doesn't happen instead, the brokerage trader who takes the order asks for a low, and then tries to get out of the stock with the equivalent of extreme prejudice of course the number of shares is so great that the stock can't handle that pressure, especially because this is only one of many disappointed institutions that's trying to dump the stock wholesale at the exact same time and at the quarter there are half a dozen major players of 10
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million shares or more doing the exact same thing, and the result, even though the bad news happened a week ago, these institutions still are not done selling the stock of walt disney, there's too much to get rid of and no buy back when big institutions turn against the stock, you can't buy on day one, two, three, four, instead you have to wait until the institutional selling runs its course, sometimes five days. we're not there yet. when the big money manager finishes unloading, then if you're like me, and you see disney again, iconic company, excellent long-term prospects, then you can start buying it gradually. which is our plan for the charitable trust we talk about that when we give our talk in december we recognize that the extreme downdraft in disney is about the mechanics of money management, not the management of bob chapek and company, not the fundamentals of the company. think about the process of wrath, and once the process runs its course, you'll have a terrific entry point with the stock of walt disney,
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the profits of wrath await you i would like to say there's always a bull market somewhere, i promised i would find it just for you right here on "mad money," i'm jim cramer, see you tomorrow, "the news with shepard sm smith" starts now. grilled by the prosecutor. a man charged with murder takes a chance to save himself from prison i'm shepard smith. this is the news on cnbc the most traumatic event in my life. >> one of the men accused of chasing down and killing ahmaud arbery what prosecutors got the defendant to admit boosters for all adults on the verge of fda authorization. >> for folks who are at least six months out from pfizer or moderna. >> is this what m. needs to fight back a w


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