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tv   Mad Money  CNBC  June 23, 2016 6:00pm-7:01pm EDT

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remember, first results roll in at 1:00 a.m. a nail biter to the end here. i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00. more "fast money." meantime, don't go anywhere. "mad money" with jim cramer starts right now. 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 "mad money." welcome to cramerica. and thanks for joining me again from cnbc one market in san francisco. other people want to make friend, i'm trying to make you some money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc.
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or tweet me @jim cramer. could there be a better moment than to start thinking longer term? this is the perfect time for you not to be caught up in the law of the brexit vote as an island off the coast of europe, allegedly determines the fate of the western world. even if the bulls have to be gratified by pulls that suggest the uk will choose to remain. and the s&p gained 1.34% and the nasdaq up 1.49%. every time i come out west to the one market headquarters in san francisco, i'm reminded of how myopic and short term oriented we are on wall street. versus what's all around us here. the connectives of the fabulous -- the executives of the silicon valley are determined not to let events keep them from pursuing the long term prizes that make for tremendous success and yes, riches for those who can own shares in their companies. at the risk of choosing not to
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be trapped by the prison of brexit let me give you a scan of who's doing what and how their ingenuity may impact your portfolio. i have used to be a sports writer. i'll put it in the prism that i remember so much. described how people are looking at the season and the schedule to make it easier for you. right now, the company that everyone fears play, the company that everyone fears slash respects the most isn't in san francisco, but seattle based amazon. whether it's with the endless disruption in retail and what it means to try to keep up or the connected car and how the echo combines with ford to get your garage door open, and while it warms up to cook your roast, amazon is worshipped, feared and worshipped. you ignore amazon at your own peril. only the paranoid survive against them as andy grove described so eloquently in his book about technological change. a great read. how does this play out in the real world out here?
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let's take macy's. 150-year-old retailer. today we learned that the merchant will be stepping down next year as ceo. while there was charter about lundgren being nudged or it being sped up, what really matters is the statement that the 64-year-old released. i quote, now is the time to reset our business model. our company must and will change in response to the profound secular changes that are driving consumer spending, end quote. this is a remarkable acknowledgment from lundgren. why? because he's been trying to reset the business model for years now to compete with amazon, and he hasn't been able to make it work to the satisfaction of himself or certainly his shareholders. witnessed at the $33 stock of macy's stood at $69 this time last year. some would say that they're worth more dead than alive. the own real estate can be worth more than what it can sale in the properties. amazon makes it far less likely to go to the macy's and charging
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you prices that are competitive or not better and the amazon prime shipping. amazon keeps raising the bar to keep up with then, lundgren had to spend fortunes. the same that nordstrom, kohl's and sears and penney had to spend. hence, while walmart stock has held up bet theirton other. how do you keep up with amazon? let me think because i saw a lot of companies that are involved. you have companies that know what people are going to order, before they do it, companies with analytic, they can measure the cloud and give you ways to stay on touch on your mobile with that customer that makes you more competitive. or perhaps you need an artificial intelligence that's smarter that up the artificial intelligence that amazon already has. i cannot believe how many exist to do nothing other than make others competitive with amazon. whiechl they do a good job, amazon is relentless in
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innovation. who else has the street cred out here? there's tremendous respect for facebook. a business model that so many do fear, virtually infinite content that facebook doesn't have to pay for. advertisers crave, they want to advertise against its. you actually want to read it that's a license to print money. the fact that instagram gained the last 100 million faster than the previous 100 million stunned people out here. in a town obsessed with growth, that number was the envy of the industry. you want to know the power of facebook? the internet tools company went public at 15 bucks and quickly traded up to $29. it close out at 90%. why? yeah, take a guess. the biggest customers whatsapp, the facebook messaging service. uber is up there too. when is the last time you heard of an ipo that made you that
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money? you'll be a coveted company with a red hot stock. we hear about alphabet google and for what it is working on in the future. it eebs driverless car. we spent time at ford, but the notion of a google skunk works out there making strides with machine learning as they call it has people far more excited about the company than the revenue may or may not be as robust as someone on wall street thinks. talk about the weight on a given stock. we hear about microsoft but only in the context of how they had to pay $26 billion to capture the cloud growth of linked in. we didn't hear much about apple. people seem grateful that they won't have to upgrade their phones, they had them. because the next generation isn't supposed to be as revolutionary, according to the press. some would say that's a suboptimal issue but others certainly not the sellers of the stock might be thinking that the
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bar is finally set low enough that the 7 could beat expectation. we heard the companies that are trying to disrupt others. companies like robinhood, they have an app that lets you trade stocks for tree. if that reaches critical mass that could become a problem for the traditional brokerage firms. and you hear endless chatter about twitter. no one can stop talking about twitter. why? everyone is on it, checking all the time. seeing what people are saying about them and what they're saying about the world. using it to get his or her point across and that the punitive republican nominee got the nod by tweeting and having the press report on its. the irony is lost on no one. but the second reason, because after linked in got the monster bid all that twittering couldn't resist who will bid for twitter?
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will it be facebook, apple, how about alphabet, microsoft, they have enough cash? how about salesforce.com. speaking of twitter as if it's some sort of dysfunctional diamond in the rough, sitting in the ground. the only thing you need to do get it out, polish it and make it worthwhile is to get rid of everyone who works there. that's right. the company's -- it might as well be the last diamond mine left to grab. they don't care about the business consequence. when its came up out here it was only in the context of how this vote is part of an anti-immigrant backlash. that it's basically a referendum to many people out here on tolerance. so here's the bottom line. i am not going to get into the brexit issue. what i care about is this. you now know what's being focused on in silicon valley. when it comes to winners it's amazon, when it comes to last place teams that could be next year's playoff contenders, twitter. but the franchise has to change hands before it can ever dream
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of getting out of the cellar. let's go to rick! >> caller: hi, jim. hsbc, what do you think about them, this brexit happens and the markets rely -- >> look, we'll look longer than that. it shouldn't be owned anyway, it doesn't have great balance sheet. i have so many american banks. wells fargo. i saw the former ceo this morning, feeling great about that. i own it in the charitable trust. go that way. claude in illinois. >> caller: hi, jim, how are you? >> i'm doing well. >> caller: my question is it finally a window to end the tech i ipo drought and if so -- a multibillion company like uber could be prospects to go public soon? >> okay. look, there were certain aspects of this deal that were generous,
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it's not one of the giant multibillion dollars companies. it's a tiny little thing, so no, i don't think it means that much. i know it' been hard to take your eyes off the latest poll results or the weather report in london for that matter. but remember there are plenty of long term visions being created out here in silicon valley that could be very profitable for you. british exit or not. now, on "mad" tonight, one monster move for a tech stock today that i know you love. can it be trusted? voice activated technology, amazon, echo, even drones for crying out loud. it may be the one of the most innovative companies in the valley, but it's been around for a hundred years. i'm talking about the motor stock. i got to sit down with the ceo of the ford research and innovation center. and i'm talking with the company that's working to inspire new generation of investors so i suggest you stick with cramer.
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>> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all.
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oral-b. know you're getting a superior clean. i'm never going back to a manual brush. did micron suddenly get the groove back or is it just the stock playing catch-up to the in vogue group? no. it looks to me like a major turn could be unfolding here. with not one, but two product lines doing much better. hence, the coe gent research upgrau upgrades. remember we have been in the minibull markets for the semi-conductor stocks like nvidia and broad com. we have seen the tightening in pricing for flash memory and d-ram and d ram is going higher
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after the 50% decline. that plummet came after some major consolidation in the industry was supposed to drive pricing relentlessly higher. for more than just the brief period of time than the group enjoyed. in the double digit declines its didn't matter what these guys did. in the last few weeks inventories very worked off. you could get a decent upswing in pricing that would give micron much higher earnings. hence it wreptd up to $18. and instead of expecting a two cent gain in the quarter, they believe that micron can earn five cents. wow, that would be something for a stock that peaked at 36 bucks, 18 months ago. and could be one of the best performing stocks in the s&p 500 the year before. i love the position on the upgrade and they're recommending a buying of the highest growth
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company and you have to broad com, nvidia and the battered down names like micron. consider fellow traveler western digital. earlier this year they bought sandisk. the maker of flash chips for $16 billion and the deal that many thought at the time was the severe overpay. looks like that's not the case. you can't possibly think about that now. with the tightening of the flash market. especially because western digital's disk drive business has been -- as ever. they're expected to earn five bucks a share. but they didn't believe that $5 was truly doable. if it is look out above. $50 stock could see 60 bucks as it did rally today. this semiconductor and related companies that have been winning huge of late, notably land research on the equipment side, broad com and nvidia are proprietary in nature. meaning they don't need a strong economy or a turn in the personal computer cycle to
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rally. and that's not the case with micron or western digital. both stocks have been moving up as of late. so these upgrades aren't exactly at the forefront of the turn. that said though micron and digital are still beaten down. so the trade seems like a very good one. that can last at least through the next couple of reporting periods. i personally favor the stocks of the internet of things play. related to the car more than the computer or the cell phone. however do they catch a bottom in pricing that's in at going way in 90 days that's why i think these stocks are buys for at least another 10% before you have to say okay, where's the new supply going tom come from, everywhere. where's the demand coming from, not sure. here's the bottom line, please don't get carried away with the trades. when two firms recommend micron there's something there. something worth grabbing even after today's big session. let's go to stephanie in north carolina. stephanie? >> caller: hey cramer, i hope
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you're having a great day. >> terrific, same. >> caller: i have held on to the yahoo! stock for over a year and i watched it decline from the mid 40s and never recover and there's a talk of a possible acquisition. should i hold on to my position because of a recovery or sell off before hand? >> i think yahoo! is a collection of mosaic businesses and plus alibaba. there may not be as much upside as people think. when a company gets too high profile, fireworks can certainly happen. while that may continue i think there are better names in the semiconductor space that should attract your attention, chiefly nxpi. if you want to speculate in micron, i don't blame you. much more with my exclusive interview with the ceo of ford. i'm finding out how the 113-year-old auto giant is steering to the future.
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and a company that's working to democratize the stock market by using a smartphone and it's called robinhood. and a special west coast best coast edition of the lightning round so stick with cramer.
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one of the first innovators of the american century. changed the course of history with one amazing idea. from detroit to silicon valley, ford is driving the automobile. into the future. >> as we spend a couple of days in san francisco, it's worth remembering that it's not just pure technology companies that have a presence out here. in fact, there are a whole host of companies you wouldn't normally associate with silicon valley that are bulking up their technological capabilities. case in point -- ford motor is working on new tech from connected videos to the internet of things to the autonomous
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driving capabilities. ford stock has been trading sideways. and while i too am very concerned about they're in term head winds something we'll address later, the future is exciting. especially when we get through whatever pause we're experiencing. today we checked in with mark fields, the president and the ceo, at the company's silicon valley lab to find out more about the future of the auto industry. take a look. mark, a few years ago we went to river rouge, we saw the f-150 being made and you're an auto company, but now i think that you're a mobility company because i look at what i see here. tell me about the change. >> well we're on this fantastic transition of going from an auto to an auto mobility company which means keeping our core business of a design and developing vehicle, very, very strong and we're absolutely going to do that but the opportunities around mobility
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services is a huge opportunity for us. and that's what we're focusing on. >> we got to change the word huge because we have to figure out -- i don't think people realize how much bigger one market that you don't have any share in and you're abject about that versus the other you have 6% in. how big could it be for ford? >> when you look at transportation services, taxis, ride sharing, those type of things it's a $5.4 trillion business around the world. we literally as well as our competitors get none of that. that's huge opportunity on top of our core business. >> there seems to be some sort of a mental blockage in the thinking what cars can be like. except for when i'm out here. people think about cars very differently. we think of cars going to "a" to "b," not out here, it's different. >> out here it's a combination of things. clearly there's more congestion out here. you know for us, in terms of mobility and helping people out here, it's not just about
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getting people from point "a" to point "b." it about for us human progress. it's really about the ability to allow people to live, play and work where they want. that's what it's all about out here. and the play is really important. because people really relate to their vehicles out here as well. >> do we speak too much about driverless or autonomous, is that a prevailing theme or is that narrow? >> no, it's a prevailing theme when you think about it. it has a lot of societal impacts, right? think about a day when you can significantly reduce congestion and accidents and in some cases it's about quality of life in some parts of the world. access to food and health care. but at the same time, there will be a large portion of people that will continue to want to drive the way they have. >> why do people resist this notion of driverless when we have had an increase in fatalities for the first final, guys from travelers shared the data because of texting. there are people who are reckless and we could save a
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huge number of lives. to me it seems an imperative of every government in the world. >> all governments are talking about how do they get smart cities, how do they incorporate different modes of transportation including autonomous to improve the quality not only of the quality of life of their residents but also an economic development for the goods to get around. we want to be part of that. that's why we're parting with cities and we want to partner with cities. rather than doing business, but help them solve the mobility problems. >> i think that ford -- you know my daughter has a ford. >> oh, yeah. >> sync was the first. do you think that sync or do you need to partner with everyone? >> sync is the most popular entertainment system and we're going to build on that. we have 15 million sync equipped
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vehicles around the world. it will grow to over 40 by the end of the decade. but we have been open to working with others. and that's why we're out here in silicon valley. some things we'll do on our own, others will work with other companies to make people's lives better but also provide business opportunities. >> is it a space race? amazon or apple is doing it or google or a community and we all want the best car? >> well, it's -- our approach is provide options for folks. we're working with amazon. we'll show a little bit of a demonstration on what we're doing with them. how do we enable that and offer a business opportunity for us and sometimes it will be on our own, other time it will be works with others. >> make our lives better by hitting one button or artificial intelligence does it know when i'm pulling up to my house. tell me how my life will be made easier in the ford of the future. >> well, think of this as you go forward in the future. think of this as you drive down the highway.
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when you have to get service for a vehicle, a light comes on on the instrument panel. think of as you're driving down the car will talk to you and say you need to have your brakes changed. would you like me to make an appointment with your dealer and they'll interface with your google or ios calendar. it will be done for you. or whether you're coming home. and gosh, you have to have that roast started. think about your vehicle which is probably the biggest thing on your connected devices. you'll be able to start your oven, put your lights on in the house, shut the security system down. it's about making people more productive. >> all right. you said at the -- first thing you said, look, you can't lose your core. this costs a lot of money to be doing it. you have got a kind of a parallel company. you have ford llc. is that compatible with what we saw at river rouge? >> absolutely. again we're thinking of the core business. you have to have great vehicles but the reason we created this
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subsidiary of the ford smart mobility subsidiary, we want them solely focused on mobility services. and that side of it. we'd have the core, the product one down. now it gives us an opportunity to have them solely focused on the services side of it, mobility services side of it. >> which part of what you're out here -- we're looking at is eternal for you? what are you most excited about? you come here and you learn it's difference. >> what i'm most excited about here is the innovation that's going on. >> okay. >> the innovation is who we are as a business. going back to henry ford. when you look at this office, we have over 130 professionals in here. researcher, engineers. data scientists. and they're working on really cool things. advanced sensors, voice recognition. a lot of things that are -- that will allow us i think to grow our business. but also really push us further in making people's lives better
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and using technology in an intuitive way. very energizing. >> all right. so driving in brooklyn. looking for parking spot. i have to drive many times around the spot's are usually too small for me to be able to figure out how to get in. what will my life be like if i buy a ford three years from now? >> we're working on smart parking. we are doing mobility experiments around the world in different cities. one of the vehicles, the vehicles have sensors on them. so when somebody is looking for a parking spot all the ford vehicles are connected to the cloud. a customer will be able to know, gee, you're most likely to get a spot on avenue "a" versus "d." you save a lot of time and 30% of the wasted fuel is people looking for spots. >> is that true? >> yeah. make the world better and offer us a business opportunity. >> partner -- i have not been to
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china. okay, but i have to imagine -- i know because a lot of the gasoline causes a lot of the bad air. your relations with some of the cities there? >> well, we have a huge manufacturing facility in the chaw ching area. it's one of the biggest cities in the world. we are working on a lot of mobility experiments there. they're probably ahead of the curve on the mobility solutions. because it's a little bit of necessity is the mother of the invention. and a lot of people, a lot of congestion, a lot of air pollution. we are saying to ourselves how can we be part of the solution for them? >> you seem to be doing more in europe. i read your barcelona speech. each country different for what you're trying to do or are they all just experimentation labs so to speak? >> well, it's a little bit different by country, but the reason we do the experimentation is to learn. you know, we have been doing these experiments since a year and half ago.
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beginning of 2015. on journey planning, on ride sharing and smart parking. we are learning a lot not only how do we fill a market need, what's the unmet need for the customer, but what's the business model in there for us to earn a good return on that? >> we'll be back with more ford motor president and ceo mark fields. coming up -- >> we know that tesla is in the news. we don't hear about ford necessarily with electric. but you're much bigger than people think. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network
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we're back with more from ford's president and ceo mark fields. the competition in the auto space looks different today than a few years ago. i got his take on the newcomers. i think you know who i'm taking about. take a look. we know that tesla is in the news. we don't hear about ford necessarily with electric, but you're much bigger than people think. >> absolutely. and jim, you know we're not in a race to make announcements. we're in race to do what's -- >> you're not going to be a company that puts solar panels on -- >> listen, our combination is an
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auto and mobility company. we think that makes a lot of sense for us. but we're not in a race to make announcements. we're in a race to do what's right for our customers and we have done a number of thing. you will see over time our strategy come out. and elements and we'll make announcements that fit within that strategy. >> okay. so we know that people don't get driver's license as early as they used to. we know that because of uber there are other ways we -- so we have student loans so i can't buy a car. i couldn't believe this, you have anthropologists and sociologists on your team? >> mm-hmm. yeah. this -- first off it's important to look at the trends because those will tell you what is the world going to look like 10, 15, 20 years from now? then we rewind back to today, what are the strategies we need to succeed in that time frame? one of the things we're doing we're taking very much an approach of design thinking which is really around not only
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design and engineering methodology, but using social tools, things of that nature, insights from the business world. because we want our team thinking of experiences first. and then what is the hardware and software and technology that helps deliver that? in a very human and accessible way. >> but that's expensive. it's expensive. this is not like lightweighting the f-150. these people cost a lot of money. you're competing against facebook to get the people. you're competing against apple. how do you attract them and keep them? >> young people want to make their department on the universe. >> okay. >> they want meaningful work. what more meaningful work than helping change the way the world moves? you look at this office. we have 65% of this office are millennials. 20% of them have ph.d.s, 40% have advanced degrees. i mean, they want to make their dent on the universe. and look at what -- look at the product or the service and say, i did that.
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>> do people who -- you dole with, is uber changing your lives so therefore you have to be doing something with uber, thinking about doing that or the equivalent? because gm did lyft so i know they're thinking about it too. >> as we said a lot of experimentation on ride sharing and car sharing and the journey planning. we are learning a lot around that. to your point, some cities going forward in the future, you could see the private use of vehicles outlawed. so we're thinking about how do we provide -- what's the unmet need out there? how can we play a part in that and allow people to be mobile and in some cases we'll do it on our own. other cases we may say, makes sense to partner. >> talk about the outlaw. because there are countries you can't have fossil fuel cars at a certain point. are you ready for that? >> absolutely. i mean we're a leader in electrified vehicles here in the u.s. for example. we're the sales leader for plug-in hybrids and we're investing until now and the end of 2020.
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we view that as part of future and we're working towards that. >> okay. the ford has been around for a long time. is it -- is it positive or negative in the sense that one of the things that i hear about from tesla is there's no baggage. they don't have the baggage of ford. is it really baggage? >> we have a terrific brand around the world. henry ford and the ford oval is known around the world. and our brand has always been known for innovation and progress. that is a huge asset. and it's having a heritage. heritage is a huge advantage if you use its right and heritage to me is history with a future. versus just a history. >> now you mentioned about the model 3. so my other daughter doesn't have the ford. she says i want a model 3. i tell her get in line. i mean, people aren't lining up for what -- for the press release of next ford yet. how do you do that? >> well, you look at the new
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mustang. >> i saw that in lineup. >> we came back from lemond. >> and you won. >> and we won. it helps our brand. again up, that gets back to the heritage issue. we won 50 years ago, we won now. it sets winning aspirations and provides technology to do it. overall when you look at our electrification plans we're a leader today and going forward and making sure we provide products that people want. >> when i hear you talk about manufacturing technology information, i'm wondering if the whole -- let's say -- the whole stumbling block to understanding ford the stock which you know i have to do is this notion of peak. i don't hear anything that is cyclical about what you're talking about. i hear secular and i hear demand that is not going to be necessarily responsive to unemployment which i know you told me is really the key. and value of houses. but you're talking about
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something that will transcend the concept peak. >> absolutely. when you think of mobility services people have to get around. and if you think about our core business which is cyclical you talk about the mobility services if we do it right it's a little less sensitive to the business cycles. more recurring revenue in the ongoing basis and that's why we're pursuing these mobility services. we think it's a great complement to our core business. >> now, your core business, we have to talk about it. >> i love talking about our core business. >> i know you do. the actual market because of the way you report, i need you to break it down by region because you're the most transparent per region. what's going up, what's flat? >> when you look at north america we're operating at benchmark levels versus competition. we're going to have a strong year. we have said that. but we're starting to see some things in the marketplace that we hadn't anticipated last year or even the first quarter. >> this is what, credit related
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or -- >> it's really in the areas heres in the u.s. that we're dealing with the expanded takata recall which we did not anticipate. >> that's more than a million -- >> a lot of vehicles that we have to take care of for consumers. we are seeing, you know, auction values across the industry come down. >> i saw the carmax numbers. they were disappointing. >> that impacts our residuals. >> right. >> that impacts us. listen, we'll have a strong year, but as usual, we'll provide updated guidance in our second quarter earnings call. moving on the europe, europe is continuing to improve modestly. we're back to profitability, our market share is growing, consumers are really reacting positivity to our new products there. moving on to china, we are seeing that we didn't see the end of last year or the first quarter we are seeing, you know, more margin pressure. >> yeah, but you're still -- you have had a couple good months. >> we have had a couple of good
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months but it's a competitive market. there's over a hundred oems. >> yeah. >> carmakers. >> yeah. there's a notion -- that's where innovation and so if you have a hundred that's a real -- that's a dogfight. >> exactly. we are seeing that play out in some of the marginal pressure. >> then latin america, just still -- >> it's still very, very weak down there. but, you know, our view is that it shouldn't be maybe by the end of this year. you're seeing argentina take the right structural reform actions and hopefully brazil as they -- their new government gets up and running taking the same actions. >> can share be taken because of what we see here? >> absolutely. it all comes down to do you have compelling product? and again, product that makes people go wow. it makes my life easier. but also at the same time, this whole new element of these mobility services, where we can touch people and get them exposed to the ford brand even if they were never going to own a car. >> okay.
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it has not hurt, lower gasoline prices, buy the cars and trucks that you make more money on. >> when you look at the marketplace right now, the industry, the industry is at a record level. >> right. we can't forget that. >> we can't forget that. people put a question mark -- oh, my gosh, are you at a peak. it's in record level. then when you look at, you know, our strengths on suvs and truck, consumers are moving that way. that's a benefit to us. >> excellent. i like that note. thank you, mark fields, president and ceo of the ford motor company. >> thanks, jim. tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> cbs is tesla and these guys are solarcity. and cbs ain't -- cbs ain't going
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to play solarcity. >> nice analog, jim. >> all starts at 9:00 eastern.
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>> announcer: lightning round is sponsored by td ameritrade.
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>> it is time. it is time for the lightning round. i take your calls -- name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. luke in georgia, luke. >> caller: hey, jim, this is luke in atlanta, georgia, sweating it out down here. my stock is sky west. skwy. >> one of the few airlines are doing very well. i want you to stay in it. jose in florida. jose. >> caller: jim cramer -- >> jose. what's up? >> caller: i'm calming you from miami. home of the miami dolphins. i was wondering what's your opinion of dave & busters -- >> dave & busters had a remarkable quarter. i'm surprised that the stock isn't up more. thank you very much. going to dave in pennsylvania.
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dave. dave? >> caller: yes. >> go ahead, dave, it's jim, you're up. >> caller: my stock is tootsie roll. tr. >> all right, been around forever. everyone expects it to take over. the fundamentals are just fine. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. mr. cramer i love the show. >> we really appreciate outthere. >> booyah to my kids they're in lfrment school learning so much from you. >> booyah, mr. cramer. >> i know you hear this all the time, but thank you thank you thank you thank you so much. >> this has been my best year by far and away in the market. >> i want to thank you for for looking out for the regular guys out there. >> i'm trying to teach people to
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be better investors. that's the goal here. >> great to hear your voice and know you're there for us. working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.
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every day millions of dollars of listed securities are bought and sold on the new york stock exchange. >> robinhood, the startup that wants to remove wall street's toll booth with free investing for all. but can the business match its big idea?
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>> you know we're always on the lookout for the next revolutionary privately held company. if you can't invest in yourself yet, it could be a game change fore the entire industry. while out in here in san francisco i want to go off the tape with robinhood, a brokerage company that lets you sell u.s. stocks for free. that's right. no commission. you can do it directly from your smartphone via the company's app. no wonder it's called robinhood. how is that even possible? how can a broker make money without charges commissions? no marketing, no account manager, all electronic. on top of that when the cash is sitting around in your account they collect interest on it. soon the company will roll out margin trading and they lend you money to buy stocks that could be a revenue generator for them. even as i'm not in favor of -- still robinhood has handled over $6 billion and earlier this month they announced a big partnership in order to expand into china. as their zero commission
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expands, it can disrupt the traditional brokerage industry. let's talk to the founders, baiju bhatt and vlad tenev. welcome to "mad money." >> thank you. >> there are people who have not been in the market who have been turned on by you and have -- and are discovering the world of stocks that i love. >> yes, it's one interesting fact about the users that has us more excited than anything else -- the generation are much younger are consumers on average about 30 years old. which is just -- which is a big difference in the online brokerage customers. >> well, vlad, you guys -- you worked in the brokerage industry before this. it's not like you went and graduated from school and went into this. what were you guys up to? >> that's right. so previously, in our last company which was in new york, we sold software for electronic trading to large institutions and banks and we basically realized that there was a complete change in the infrastructure that was powering
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the entire industry. so trade matching became fully electronic. the cost of processing the transactions went to zero. you know, we saw that this was coming to retail as well. the same sorts of efficiencies that institutions have enjoyed over the past ten years will come to retail investors and we wanted to be the company that actually brought that change. >> okay. well, if interest rates don't go higher can you make enough money? look if the fed were to raise rates three or four times you'd do better than you're currently doing. >> that's actually something that we can still be profitable without. >> really? >> yeah. >> that's one of the cool things about the purely electronic products like robinhood, all the processing of the trade have gone down to zero so robinhood can do this for free. if the interest rate goes up that's great for us. if it doesn't we'll be a healthy business. >> what do you get besides the app? research or directions about news, do you have stories?
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>> so we have news. we provide some fundamentals and realtime market data. and you know, the point of the app is to be very easy to use. so you can sign up just from your mobile device. and we're the fastest growing brokerage of all time. we announced a few weeks ago that we crossed a million users on the platform. >> that's amazing. >> using robinhood is less like using a traditional financial product where you have paperwork, you have to wait. it's more similar to using a technology product like an uber or an instagram. >> china, they had a big bubble, okay. they have come back to earth. but they like to trade. how did you hook up with baidu and how is that going? >> i think it was three weeks ago we announced the partner with baidu and there are those who can buy through our partnership with them. yeah it was exciting. we spent some time in china this year seeing how much american
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brands are present there. i think that's an opportunity to let those people also save with american companies rather than just spending. >> i want to talk about the disruption factor. younger people on the web -- well, i'm used to paying for things. younger people aren't if it's on the web. is that working in your favor? people just say, listen if it's on the web it should be free and you are. >> yeah, i think what's working in our favor is that people kind of understand that, you know this is technology driven business. you know, the cost of sending an e-mail is zero and if you look at it, you know, that way, a stock trade purely electronic transaction isn't very much different. just data streaming on the wire. so the fact that you're paying 7 to $10 seems preposterous. >> i'm sure the younger people feel that. what are the younger people buying, are they buying what we think? are they buying facebook and amazon, buying general electric
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or drug companies? >> they're buying a lot of the technology companies. those are obviously the ones that young people are excited about and seeing people buy a wide variety of the bigger named american companies. it's cool to see that that is happening. very exciting for us to see this generation of consumers that's been in a bit of malaise. just be like, wow, this is something that we care about. >> well, i have to tell you, i think it's very exciting. someone who loves individual stocks it's a joy to talk to people who are helping people buy them. okay. that's baiju bhatt and vlad tenev, a private company that's doing great. robinhood. stay with cramer. people talk about "deals" on their auto insurance. wouldn't a deal involve two
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well, those two days flew by. i want to say there's a bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer and see you tomorrow!
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>> tonight on "jay leno's garage"... >> i might have to run from the cops. >> don't try this at home. chief charlie beck and the lapd show me how to clean the streets. >> close the gripper. >> i learn how dan aykroyd went from bluesin' to becoming a man in blue. >> pull over right now. >> and "batman v superman" director zack synder sheds some light on the dark knight's latest wheels. >> what makes the best crime fighter? is it training? >> turn. turn, turn, turn, turn. whoa, whoa, watch it! >> equipment? >> the batcat has saved officers' lives in the city of los angeles. >> diet? hamburgers with adam west, the batmobile. this is the greatest day ever! nah. it's all about the vehicles.

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