My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a more market summer, and I promise to help you find it. Man money starts now. Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramer, Rika. A few of my friends, I'm just trying to save you a little bit of money. My job is not just to entertain, but to explain things. So call me at 1-800-743-CBC. Tweet me at Jim Kramer. This market astounds me pretty much every day. This weekend, in my regular think piece that I send out to CBC investing club members, I marvel that the same memory stocks keep going up and up and up. Many people have been left behind because they think they've already missed these moves. So I have to ask, what if they haven't? So today, where the Dow was 273 points, doesn't mean the climb 0.5% and as I said, 0.3%. It's actually kind of an ugly session, mostly because of a rise in oil and interest rates. I want to explain how some of these big moves can happen and why they actually might not be over. Front and center of the companies that make memory and data storage products that go into the data center, Sandist, it's up 650% year to date. C-gate has galloped 261%. Y-concept 254% and Western Digital is up 211%. These moves are all kind of incredible and definitely crazy. These memory names have become risky. They had been risky boom and bust stocks for decades. There'd be periods of spectacular growth followed by horrendous swoon that would wipe away all of your gains and then some. I always regard the management teams in this business as financially suicidal because they'd overbilt one time for good, sowing the seeds of their own destruction with things got bad. I was always reluctant to recommend them to you because of these wild boom bust cycles. Then along comes the data center and the world should be changed for them. The demand for memberships has now become seemingly endless. These companies have all learned a collective lesson. They're not over building this time. They want the shortage to last. Memories and such short supply that Elon Musk has taken to axe to talk about how it's become the key bottleneck to data center growth. Meanwhile, the memory makers, they've adopted this new business models with long-term agreements that lock in huge gross margins for multiple years out with their customers. They're basically building only the suit. They've raised prices to the budget. Apple is complaining that they're driving up the cost of your new phone. Can we trust these companies and their stocks? Now, three of them are buying back huge amounts of stock in their open market. San Disguise has a $15.5 billion buyback C-Gate subbuy. We're going to sway through a $5 billion buyback in our next issue. Western Digital put a $4 billion repurchase authorization on this year. They're taking that money and sending it to you, the shareholder. Rather than investing in new capacity, only micron has no buyback, quizzical. These used to be smaller capitalization stocks, but in the two years since the data center build out started and earnest, everything has changed. I want you to listen to these spectacular games. When San Disguise was spun out of Western Digital 18 months ago, it was a $7 billion dollar comment. Now it's a $262 billion dollar comment. She gets $1.5 billion to $215 billion in the same period. How's the pleasure? Western Digital 17 billion is now a $185 billion. Only micron was sizeable at $106 billion, but now it's in trillionaires! That was easy. And you wonder why I think you should add some individual stock side-by-side with your index funds. And you might think these memory stocks have all run too much. That's the consensus that I hear from. But their margins, which are immense, have largely been locked in for years out now with these agreements. Seagate's West margin came in at 52% in the slightest quarter of record. Last year was 37%. Western Digital's West margin was 54% up from 41%. You're going, this is incredible, stop people. San Disguise margin, 26% to 85%. One year! Micron hit 85% up from 39%. These are monumental numbers. I remember when Intel could ever get to 64 growth margins. That would be amazing. Listen to what these guys are doing. People have a hard time getting their heads around this. Endless to me and for memory. They don't believe the agreements with customers will hold up. The biggest fear, they think that Samsung will break ranks and put up factories to flood the market with supply. That could happen in 90 times soon. Takes so long to build the factories. And look, that's why micron sells for just seven times its fiscal year, 2027, Estimates, Sanders trades at eight times. Now, if you look at the fiscal 2028, Western Digital's at 16, Seagate's at 70. In general, these stocks are cheaper than the market because no one believes. No one. Well, maybe some, the people are making a fortune. Last week we bought a position in micron for the child trust because I truly believe this industry has changed for them. That said, I admit to being uncomfortable buying a stock that's moved up this much. Fortunately, we bought it in a big discount as it was trading with the prices at that moment of the Korean sale. Of the Korean Samsung and SK high-end, not Seagate Westers or Encyclopedia. The timing was this, queasy that the club members have to be having. Although, at the time I thought it was taking my life into my hands and I didn't, you know, concerned that it could keep going down, of course. See, I don't really know a soul who's really comfortable buying stocks this high. I consider micron more of a gross stock than the others so I can soul myself with the idea that maybe it's just not just restricting output that has made this thing go higher. But at some point, we all know this memory shortage has to end. Does it? I don't deny that. However, I do question the timing of any downturn. I think micron can double again before the boom comes to an end. So, there's no data center. Slow down. I knew that's a risky statement, but these long-term agreements are spectacular for micron margins. Hey, and by the way, get this. We're going out to visit micron later this week to interview CEO Sandra Marocha from their Idaho R&D Fab. Fab, you'll get stood for Fabulous. Not really, but I like that. I think it'll be revealing. Don't miss it. I can't wait. It'll be incredible. Of course, we know I got to get steel-troned boots. I think I have them. Of course, we know that there's now a lot of pushback to building sites. There could be some crimping memory stocks. I think there are plenty of towns that want them though. Those stores are too positive. They don't fit the negative narrative. Believe me, the media loves important negativity because that's where it tracks eyeballs. Or at least they think it does when I see their numbers. I have to question it. But I'm an outlaw. I'm also concerned about something that Michael and Trader, CEO of Core, we've said on the interview in the last week, that there was just no way we wouldn't overbuild double negative. Sorry. How will we know when to stop when the demand is so great? Why should we even think about that right now? Again though, I can't see the overbilt happening any time soon. So why not own one of the memory stocks? As I said, in our invested club meeting last Thursday, you ought to go play the replay. The great word is always tell you this time is different. It's the most dangerous statement because nothing ever really changes. And that's why I see it. What's the central standards can Michael will be able to change your stripes. Yet that attitude is scared away from some of the most incredible gains I've seen in my career. These are the same people who would never buy caterpillar. They would say, "I told you so." When Cisco reported and give that weaker guy, it's rather than thinking about what a buying opportunity, which is how I feel. I would buy Cisco right here because of their negativity. I don't think caterpillars cyclical over all these days. Now, they're taken away by the way. This is again these gray beards of situational awareness crash. You know that one with the crazy hedge fund. Not crazy. It's an over lever hedge fund manager. They say he was not over lever. They just said he was in the wrong stocks. I say that you have to free yourself of these constraints and understand that sometimes it really is different. Sometimes the opportunity is too great and you can't afford not to take it. No, it's not a stupid something like, "Oh, he's selling me and go away. That's real clever." But this whole data center move is created a gold rush that will turn many formally simple stocks into secular growth winners. That's a very rare metamorphosis. What is happening? The data centers, as we know from Amazon, can be used profit centers. The opportunities for these companies are choose to punish to even think about holding their expansion to too much money on the line. And that means they need these components. Ask him, throbbing about that. Best of all, with the exception of Nvidia and perhaps maybe AMD, these memory chip makers are perhaps the most indispensable. The entire build out. Musk is right. Memory has become the bottleneck and these four companies will, you know what? It's pretty good if it stays that way. Certainly not their fault that the products are such demand. Bottom line. I say, "Oh, what?" We pick my ground for the travel trust because of its growth. But the others have less risk because they just keep returning that money to shareholders through buybacks. In the end though, these moves are real. And while I acknowledge that I'm not early, I actually don't think I'm that late either. Hey, why don't we go to Tony? My home state in New Jersey. Tony! Yeah, and what's your thoughts on Honeywell? Okay, Honeywell, I feel like I've been beaten to a pole pair on this thing. I felt that this split would be good. Honeywell aerospace was a complete disaster and I don't blame me. I blame management. I don't know why I should have trusted him though. But Honeywell, the regular Honeywell, look, that's the most important thing in a good job. I say when it hits win, another guy downgrades and hits 220, that's when I'm going to tell you to buy it. I own it though. Bill and Massachusetts Bill. Jim, a quick shout out to Sean, even when I have phone problems, he makes sure I get on. I'm a club member and I'm really digging up, Rella. Man, I love to hear that. Sean, I also congratulations to the club. We had a pretty good meeting last week and I'm glad you remember. I wish others were joined. All right. What's up? Jim, it's a pleasure being a club member. I just wanted to thank you for a vertical holdings and I was wanted to pick up some more. What do you think, bro? I think that vertib is going to have a very, very strong year and I'm not going to fight you on that. I think the order book is incredibly solid. Let's go to Andrew and Ohio Andrew. How you doing? Boo, yeah, Jim. Yeah, Andrew. What's going on? So Microsoft is obviously priced in a company.
of AI outside already. At these levels, is it a buy, hold, or maybe time to take some profits? >> Okay, now, here at short term, you could take profits because this sucks up on a spike and I don't like parabolic moves. Longer term, I think that may be staying good, I'll tell you why, because that quarter was so excellent that I really have had. I've had to change my view of being a soft supporter to being a stronger supporter. And Sachin Adela, Amy Hood, superb. What can I say? Let's go to Johnny Calphone and John. >> charity. >> charity. >> John, what's happening? >> Okay. >> I love that. Thank you. Didn't even know I was alive then, but that's good. What's up? >> In April, you talked about Abbott's lab. I thought they were being punished. I did my research. They hit 81. I got into 84. What should I do? What I have now? >> Okay. People feel it's a acquisition. The access, it may not be good when I disagree. I said that Abbott was good. I wish we had brought up the travel trust. We had a couple of drug stocks that didn't get in the queue. It's only 20 times earnings that's still too cheap for Abbott. I would hold on. All right. This data center move is created a gold rush in stocks. You know what? I don't think it's too late to get your steel tip toes on the boots and get right in there. Okay? Just do some research. Choose wisely. Listen to the club. We have a pretty good analysis of the five jet points. What made my name tonight? The stock of Airbnb has been all care-related. So what's behind the move higher? I'm going to take a close look at this travel name. Look, I mentioned we're seeing a storm we've been in stocks, but it helps us to stay in a visit. Well, I'm going to go up the charts and find out. And you've been pulling in with some stocks that I promised a circle back on now. Keep it up my end of the bargain. How about yours? Don't miss my deep dive on some of the number names that stump me as part of my homer. And stick with Quay. Don't miss a second of Mad Money. Follow @JimCramer on X. Have a question. Tweet Cramer. #MadMentions. Send Jim an email to
[email protected]. Or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. But what the heck just happened to stock of Airbnb? Oh man, this was being incredibly frustrating to own since not long after it came public in December 2020. We know Airbnb is a great product and great management in CEO Brian Cheskey. But for years the stock, I'm calling it dead money. I kept recommending it though, even highlighting it and having to make money in any market. That's one of my 10 recent grades. I grew up with newer companies with the management, scale and staying power become real blue chip companies. And none of that seemed to matter at all until we were on reach to the latest. Now Airbnb is up 25% over the past month, 35% over the past three months, and 44% over the past six months dramatically outperforming the SB500. I love the city black to stock probably getting its due, but can this neglect the stock keep running? Look at the time and gasoline prices have risen, airline tickets are expensive, and Wall Street keeps worrying about discretionary spending. Not to mention potential competition with May I. Airbnb stock finally took off. Why? This is Airbnb reporter Stellar Quarer. This was a big top and bottom line beat, 17% revenue growth, gross booking value, 16% nights and seats booked, jumped 10%. Basically Airbnb's growth is accelerating again. Management has been spending really heavily on new products and this year those investments really started paying off. First time bookers grew 11% the fastest pace in four years. Knights booked through Airbnb's app, jumped 23%, and now represented 64% of total Knights book. North American Europe both grew at high single digit rates. Latin America grew around 20% Asia-Pacific, and the high teen's business is just playing good. average daily rates increased 5%, and this wasn't just Airbnb jacking up prices. Bedroom nights which multiply the number of nights booked by number of bedrooms in the property increased 12%, really cool metric. Fashioned and overall, that's a night's growth. That tells us customers are increasingly booking larger homes with more bedrooms, meaning more people going on vacation. Even better, that momentum continued into the current quarter. Management gave very strong guidance for the third quarter and also raised their full year for a cast pretty substantial. Those of us who followed the stock for a long time know that typically doesn't happen with this company. So how much of this success represents a turnaround? How much came from an unusually strong summer? All right, the World Cup certainly helped, right? Airbnb hosted roughly 2 million guests around the tournament. But according to Mizzouho, good researcher, follow up with the company, the World Cup contributed less than 1% of its point to growth. Imagine also say the course short-term rental business accelerated, even excluding hotels and the benefit from reserve now pay later. So this was not one giant sport you meant making the numbers look better. Still, the analyst Melius pointed out that the entire travel industry may have benefited from something close to a perfect storm of summer. Yeah, the World Cup, America 250, even the next championship run pushing up hotel demand in New York, all layered on top of the normal summer travel season. The real test for Airbnb will come this fall when the broader travel industry faces a less favorable setup. That said, there's a much bigger company specific story you're going on. And I think it all starts with AI, artificial intelligence. Yeah, here you go. A lot of people worry that Airbnb would get bulldozed by AI competition. Think of it. Who needs these guys when Chuck G.P.T. can book and plan your entire vacation for you? Well, turns out AI might be the best thing, not the worst thing, but the best thing that ever happened to Airbnb. Madras says AI has helped reduce the time from product concept to launch by as much as 60% - 60. While the company shipped more than 80% more features and improvements in the first half of this year, then it did during these same period in 2025. Chess G's also saying that AI now writes 60% of Airbnb's engineering code. Everybody talked about these guys' victims of artificial intelligence. That they've done an incredible job putting it to work for them. One more we see is changing curry. It's very positive for the bottom line. Even as you've got to believe that it's pretty negative save for child growth. Airbnb's AI customer service assistant now operates in one of the 50 languages in nearly 45% of issues that begin with the assistant are resolved without human intervention. Customer support costs per booking fell about 16% year-to-year. Man, that is tremendous save. He's right to the bottom line. Chess G also made an important point in the conference school. Airbnb is what we call asset life. It doesn't need to spend tens or hundreds of billions of dollars building to data centers or buying GPUs to participate in AI. The company pays inference costs sure. But an Airbnb reservation is a high dollar transaction so they can afford the tokens. In fact, AI is beginning to change the actual product. Airbnb is testing a new AI search experience that will allow customers to describe the trip they want in natural language instead of entering a location and date. Search results can become more personalized. Chess G says the company's entering a new phase where it becomes a one-stop shop for travel. Eventually you can tell Airbnb that you want to take your family somewhere in Europe for two weeks and have the platform help figure out where you should go, what you should stay, what you should do. That's why they've been adding more and more hotels to their network. Now I used to think of Airbnb as the anti-hotel, but they're happy to put that business on their network too. In fact, hotel nights are already growing roughly three times faster than the homeless business. And Airbnb is enormous direct traffic, a younger customer base, and potentially more favorable commissions than some traditional online travel agencies. Management says the robot's going significantly better than expected and they plan to step up the gas. Airbnb is also expanding beyond accommodations with car rentals, grocery delivery, airport pickups, luggage storage, resort passes. Long story short, there's no single silver bullet behind this breakout. Airbnb is making hundreds of improvements to the core business while Simon's honestly expanding into new areas. But as much as I like this cover, you know what? I'm kind of hesitant. I gotta stay to recommend this talk up here now because it's trading 34 times earlier at 180. That's forward earnings. That's expensive. Competition hasn't disappeared either. Bookie holdings and expedite affordable rivals. Expedite compared verbal, that's VRBL, with the rewards programs from a much broader travel ecosystem. Regulation remains a consistent and constant risk in many key cities around the globe. After a 23% move in a month, those negatives kind of make me feel like I don't want to chase the stock. Now look, I am still believer in Airbnb. Nothing has changed when I wrote in this book. But finding a great company and making money in the stock are times two different things. So here's the bottom line. As much as I'm glad that Airbnb is finally getting respected deserves, I don't want to chase the stock when it's selling for 34 times earnings. If you don't already, then you have to have a do this. Maybe you pay a little, if it's just by a little, then wait for a pull back. No matter what. It's the worst keeping an eye on. Man, money's back, everything. Coming up, reports on the bull's death may have been premature. And Kramer has got the charts to prove it. Next. Now we're getting close to back to school season. It's time to frantically catch up on our summer reading. Whenever I got a question about a stock that I either don't recognize or maybe haven't been following. I'm going to have to do some homework and circle back to you. But in the last month, he's been piling up here. So tonight I'm going to do, let's say, a round robin here. I don't know, a lightning round. Get through some of this homework.
of blitz. Back on July 16th, Joanne in California, ASP, about ex-al-services holdings at EEXLS. It's a business process outsourcing company, mouthful there, that's a tabernet to reinvent itself as more of a data analytics and AI play. Originally, these guys were all about outsourcing for a long time. That was a great business. But ex-al-services holdings peaked in early 2025. Thanks to AI Displacement, one of these in over the next 18 months this dot got eviscerated. I'll let you lie though, they're a quarter strong quarter which allow this doctor to recover a bit. And the numbers still pretty good here with the company talking about 15% revenue growth, 17% earnings worth a share. It's toxic also cheap. Something for just 15 times earnings. Companies now embracing AI to help its customers harness their data. But at the end of the day, however, ex-al-service is fighting an uphill battle, at least in terms of the narrative. Even if their business keeps doing fine, these AI Displacement worries, they're just not going to go away. The stock's up nearly 40% from a slay tune load. So I think you're getting a terrific opportunity to sell this one and move on to something else. Next on July 29th, fresh end in Ohio. Call me with a question about make my trip. That's MMYT, especially the Expedia of India. After doing nothing for a decade after King Pop, 2010, make my trip starting a remarkable run from the low 20s and late 2023 to an all-time high of 123 at the end of 2024. Just in though, the stock's giving back most of those gains beaten down by AI Displacement worries. Yes, it's a real common theme. Finally, bottomed in the low 30s this March for about $60 of today. We've seen similar bounces in the big American online travel agents. Make my trip has been putting up pretty good numbers, but it's not exactly cheap anymore. Training at 33 times earnings, expedia sells for roughly 15 times earnings, booking for 20 times earnings. Now if you want to bet on the online travel agents trampling the AI competition, I'd much rather go with those two, especially the latter, which is a very consistent company and just a pretty good quarter. Next up on July 30th, I got a call from Quentin or Quentin in Georgia. Can you say something about Establishment Labs? Esther, ESTA, which is a medical technology company that's all about breast augmentation procedures and related equipment. Some of these are minimally invasive and the company says its platform is also much safer than the competition. After a few years lost the wilderness, Establishment Labs started putting up some strong revenue growth last year. It's up 27%, expected to do 28% growth this year, followed by 26% growth next year. Unfortunately, those stashment labs is still unprofitable eight years after its IPO. It reported another money losing quarter. Or this month, this stocks now down more than 17%. For the month of August. This could be interesting for speculation. Maybe better guy would say, I have my reservations about this one. I don't like recommending unprofitable companies at this stage of the market, but we're really high. What else have we got? Okay, two weeks ago, Sam Massachusetts called an NVE corporation. That's a very small technology company that calls itself a leader in the practical commercialization of spin-trontics. If you're wondering what the heck that means, you're not alone. Apparently, spin-trontics is a nanotechnology that relies on natural spin of electrons to store and transmit new information. It has nothing to do with politics. Basically, it's a more energy efficient way to handle memory and data storage. It's kind of a tough story to follow, frankly, because the NVE corporation has no analyst coverage whatsoever. Company had just $25 million in revenue for its fiscal 2026, but surprisingly, proper. It had 15.2 million net income during the same period. After years of non-remarkable performance, the stocks had a major breakout. More than doubling a year-to-date, thanks to a new product, a magnetic switch sensor. It's selling surprisingly well. You think this would be a data center play, right? But actually, it's more of a robotic play. NVE also reported a great quarter last month with 81% revenue growth, 78% of energy growth. Now, I wish I had a firm regrettable in the science of spin-trontics. But when I see these numbers, it's hard not to be cautiously optimistic if not just optimistic. Well, this is another speculative stock. It's one that's quite probable. Given the energy growth, it's not that expensive. It's something for 38 times last year's numbers. Remember, given the energy growth. Keep in mind, it's a high risk, a lower situation. Finally, last week, Jim in California asked about ubiquity. That's a company that makes network equipment with a bit of assorted history. The ubiquity stock had been roaring over the past couple of years, thanks to the data center boom, climbing from just over $100 and late 20 or 23. It went all the time, I have just under 1,100 apel this year. That's the kind of one I'm looking for. The last thing in these games came in a few months after ubiquity had once again come under fire. The investigative journalism slash short-cellar outfit, Hunter Brook Media, claimed the company's products were being heavily used by the Russian military on the front lines of Ukraine. They won't sell their stuff directly into the Russians, but it's getting there anyway. Personally, it doesn't sit right with me. But buyers kept piling into ubiquity until reporting it's truly heinous quarter in early May. That sent the stock from over 1,000 to under 600, and just a matter of days. Since then, Crane's Iways, we don't know when they plan to report their next quarter. I haven't been announced yet. But it's been more than three months so it could happen very soon. Overall, I'm not going to stick my neck out for these guys. There are much easier ways to battle network equipment than ubiquity. Companies that are low drama with much less headline risk, Cisco sure comes to mind. They had a great quarter and then they kind of were tapping the guides and stock came down. I like it. Here's the bottom line. Looking at our recent homework items, let's see. I think NBE Corporation interesting for speculation. Establishment labs could have something going for it, although I'm not an expert. People services service holdings is one that I'd sell on a strike. While make bike trip and ubiquity just don't seem worth the risk to me. When they're much better, companies in both spaces. They have money as a path after the break. Coming up, you've got questions, claimers got the answers. Get charged up for a fast fire lightning round. Next. Whenever I got a question about a stock that I either don't recognize or maybe haven't been following, I promised to do some homework and circle back to you. But in the last month, he's been piling up. Get through some of this homework blitz. Back on July 16th, Joanne in California asked me about ex-ill services holdings at EEXLS. It's a business process outsourcing company, mouthful there. That's a tablin to reinvent itself as more of a data analytics and AI play. Originally, these guys were all about outsourcing and for a long time, that was a great business. But ex-ill services holdings peaked in early 2025. Thanks to AI Displacement, one of the next 18 months, the stock got a viscerated. I'll let you lie though, there's a quarter strong quarter which allowed the stock to recover a bit. However, it's still pretty good here with the company talking about 15% revenue growth, 17% earnings worth a share of stocks also cheap. Some of it is 15 times earnings. Cups is now embracing AI to help its customers harness their data. But at the end of the day, however, ex-ill service is fighting an uphill battle, at least in terms of the narrative. The stock's up nearly 40% from its late June low. Next on July 29th, fresh end in Ohio called me with a question about make my trip, that's MMYT, especially the Expedia of India. After doing nothing for a decade after King Pop, in 2010, make my trip started a remarkable run from the low 20s and late 2023 to an all-time high of 123 at the end of 2024. Listen though, the stocks giving back most of those gains beaten down by AI Displacement worries. Finally, bottomed in the low 30s this March before we're bounding to about $60 of today, we've seen similar bounces in the big American online travel agents. Training at 33 times earnings, expedient sales for roughly 15 times earnings, booking for 20 times earnings. Now if you want to bet on the online travel agents tramping the AI competition, I'd much try to go with those two, especially the latter, which is a very consistent company and just a pretty good quarter. Unfortunately, those establishment labs is still unprofitable, eight years after its IPO. Apparently, spin-trontics is a nanotechnology that relies on natural spin of electrons to store and transmit information. Basically, it's a more energy efficient way to handle memory.
and data storage. This is kind of a tough story to follow, frankly, because the NVE corporation has no analyst coverage whatsoever. Company had just $25 million in revenue for its 2020-26, but surprisingly, proper. After years of non-remarkable performance, stocks had a major breakout. More than doubling a year-to-date, thanks to a new product, a magnetic switch sensor, that's selling surprisingly well. NVE also reported a great quarter last month with 81% revenue growth, 78% earnings growth. Now I wish I had a firm regrettable in the science of spin-tronics. Given the earnings growth, it's not that expensive. So, for 38 times last year's numbers, remember, given the earnings growth. Just keep in mind, it's a high risk, high reward situation. Finally, last week, Jim in California, it's about ubiquity. Ubiquity stock had been roaring over the past couple of years, thanks to the data center boom, climbing from just over $100 and late 20th, 20th, 20th, 20th, 20th, all-time-eye, just under $1,100 apel this year. That's the kind of run the looking for. When the investigative journalism slash short-cellar outfit, Hunter Brook Media claimed the company's products were being heavily used by the Russian military on the front lines in Ukraine. That's meant to stock from over 1,000 to under 600, and just a matter of days. Since then, Payton's eyeways, we don't know when they plan to report their next quarter as an announcement, but it's been more than three months so it could happen very soon. They had a great quarter and then they kind of were tapping guides and stock came down. I like it. I think NBE Corporation interesting for speculation, establishment labs could have something going for it, although I'm not an expert. Excell services service holdings is one that I'd sell in a strength. While make bike trip and ubiquity just don't seem worth the risk. Coming up, you've got questions, climbers got the answers. Next. [MUSIC] It is time to talk to the light round. Good job, everybody. >> I'm Brad Brick, I'm Paul, I'm a team of the units talking to Bob and I. So just be there. I do not know the core or the stock version. And my staff prepares to be able to do it. So I can play in the sound. [MUSIC] And then the lightning round is over. Are you ready? Steve, dad, tell me the light round. Good job, good job. Let's start with John and Cal Point John. [MUSIC] >> Hi, long time listener, club member. Hey, I just want to know, I'm a holder of Uber. Should I buy, sell or hold? >> All right, first, I'm glad you're a club member. Second, you didn't have to make money in any market. I do say Uber's one great long term stock. I am not backing away from that. I actually think the stock is actually having a turn here at 22 times earnings. So the answer is I am able to buy a Uber, not a holder, not a seller. Let's go to Jack and new, Jersey Jack. >> Hello Jim, Buiah. >> Buiah, Jack, what's going on? >> I'm Aaron Fan, I'm a retired teacher in my mid 70s. And I've got my portfolio in two sections, one growth stocks or club number, club names. >> Excellent, thank you. >> The other income stocks. And I'd like your opinion on Tanger outlets symbolically. >> I think AT is good. I saw a recommendation today of taking a price card from $45 to $46 for this $38 stock. It deals $3.25 and I say bye. >> Bye. >> Now we're going to Carl, an Indiana Carl. >> Hi Professor Framer, thank you for seeing the Carl's in law. >> Of course, I'm really doing that a go. >> All right, thank you. Let's go to the sales sum of my IRA. So I have $25,000 just spread across three or four stocks. I'm trying to stay away from AI dependency. I'm looking at a stock that has an FPE of 30 down 10 percent. And I'm wondering if this stock would be a fifth. It would be Rockwell Insert Meat Automation. >> Okay, Rockwell Automation is high, but you're right. It's more robotics than it is data center. And I think it's a great long-term situation. So I'm going to say it's a good idea, but don't buy it all at once, because the stock is one ugly chart. I'm not a chartist, but I see it. Let's go to Prakash in California, Prakash. >> Hi, Gim, Prakash from California. >> How are you? >> I'm doing good, and you? >> I'm good, thank you for asking. What's going on? >> Yeah, I'm my lifting club member since long. And I normally follow the investing club feet. Yeah, I normally follow the investing club feet, and I earn reasonably good money, actually. But like I applied my knowledge and ventured into one stock. And that is NBIX, which is not investing club feet, but I applied my knowledge. And then I just bought a hundred stock. And they didn't see anything. >> Okay, NBIX sprang the opening bell, and then that's actually it. Now this is a neurological, you have neurological formulations. I, because it's profitable, I'm going to say fine. Although I know that neurological issues are very hard. Very tough, most doctors, hospitals, medical companies don't want to touch it. But I will say neurocreen does good job. Let's go to Gregory and Cal Point and Gregory. >> Yeah, listen, I didn't know whether I could profess a Krenna anymore, or should I call you a side of me after love? It's for me, or you can't. I'll see you guys in the next way. >> Congratulations on that. >> Well, thank you, Gregory. It's a hundred pound and 95. Michael Sandblist from JP Morgan, he caught a 200 pound and put me to shame. How can I help? >> That's like the feeding of the 5000. Jim, what a nasty way to start the week today. So I'm looking for opportunities in my instinct, of course, to buy the biggest losers for a balanced spot. I want to take a leaf out of my mentors and they just book and take a closer look at a hero that was green today. So with a great cue to warm, important past, they announced a $1.5 billion relationship with Nvidia. And this company is the end all of actually making the chips work in the data sometimes. How much longer will they fly into the radar? And it's now the time to buy and core. >> And of course, got a lot of different packaging parts of which you've mentioned. One, Gregory's always, of course, very proficient of what is an inexpensive stock at ten times earnings. I'm never going to play in one ten times earnings, but remember, they also have a kind of a non-fast-going part of their business. And therefore there is issues, but not a lot, they can't be solved by that low PE. And that, ladies of the conclusion of the nothing round. The lightning round is sponsored by Charles Schwab. Coming up with more saber rattling coming from the White House, Kramer is digging deeper into what's really moving the markets. Next. [MUSIC] >> Thank you for helping me become a millionaire. [MUSIC] >> We know what this market wants. >> More oil and more interest rates. But neither can happen as long as there is a war on. We saw this play out in real time early this morning. At first at 4.30 AM, things look pretty tame. Well, it was doing nothing, rates were in retreat. It looked like we might be able to stabilize from a miserable Friday. Then the president spoke to Fox News and threatened to bomb 'em on if they do anything to get in our way. He said it a little more infallibly, but this is a family friendly show. Instantly oil flies up and interest rates go higher, much higher. Now, it didn't have to happen. Every time the president threatens, the Iranians test the threat. Every time he warns them about bombing, oil goes higher. Why bother? It's obviously not working. Then the stock features go down after those statements and we have a foregone conclusion kind of day like today. [SOUND] >> It's painful. And it's also totally unnecessary. I certainly don't expect the president to change his post-cution of the war. I know I wouldn't do it this way, but then again, nobody elected me president. But the bomb market has a mind of its own and it's not deferential to the White House. When its cheese oil goes higher, then axiomatically rates go higher. It's unable to distinguish the cause. It doesn't say, oh, that's just the president carrying on on Fox News, no big deal. Doesn't work like that. The odds just plain go down and rates go higher because oil, the way higher, is inflationary. Bond holders know they will be rocked if there is more inflation than expected. Plus, the bomb market has no real memory. If the president says close to the exact same thing tomorrow, then rates will go up again. Now the president doesn't seem to care as much about rates as he does about the stock market. But if you want a healthy stock market, you need a well-behaved bomb market. Of course, we could have a less irritable bond market if the government needed less funds.
financing, but the government's in a huge hole. It has to borrow a gigantic amount of money just to pay the interest of the current debt, let alone a titanic amount that comes from running a mammoth deficit. Last week, for example, the government borrowed $58 billion out three years on Tuesday, $42 billion in tenure paper on Wednesday, and then $25 billion in 30-year bonds Thursday. As someone who used to trade bonds, I can tell you that excess supply, and that's the death there's from excessively disgave, can crush you. Then again, many bond investors plan to hold them to maturity so they don't care how the bonds trade. They may not even notice, but bond traders, a lot of the buyers, can't sustain these kinds of losses that occur right after purchase, and they hit the excess immediately. And that's how rates go up so swiftly. It's entirely possible that oil should just be higher and therefore rates should be higher too, so stocks therefore should be lower. But generally they've had weaker retail sales, softer inflation numbers, and softer employment, interest rates should naturally be going lower, not higher. We actually have to hope that rates are only going up because of oil. If it's because the government's borrowing too much money, then rates will keep rising regardless of what happens in the Middle East. But judging by the action, I still think it is oil. No matter what, we're now back in the world of 2007 when rates were too high, both on the long end and the short end. That's the one that's controlled by the Fed. These higher bond yields are a recipe for the Fed to tighten. I think lower oil can still help the cause. But if the president feels we have to tolerate higher oil so that we can keep fighting Iran, there's nothing we can do about this. With this combination, just get used to the stock market going the wrong way far more often than it goes higher. Especially when the Treasury can't stop raising money, because the drunken sellers in Congress just won't let them. I like to say there's always a more market somewhere. I promise I'll find out if I just fear to hear your man money. I'm Jim Kramer. See you tomorrow. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNPC or its 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 Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Those 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.
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