>> gm, double duty. >> snap. >> haliburton will get it done. happy birthday. >> "mad money" 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. other people want to make friends, i'm trying to make you money. call me at 1-800-743-cnbc or tweet me @jimcramer. and the winner is, cloud computing going away.
i'm not just talking about the breaks, the fabled second leg of the horseracing triple krouchb. i'm talking triple crown in stocks. with the dow only gaining 90 points, the nasdaq climbing a very strong .82%. so what happened today that made cloud computing the business, not the horse, break away from the pack before the first term was completed? i think some of it is a total delayed reaction, last week's salesforce.com reported one of the best quarters of the year. the ceo right here spoke about companies not being hamstrung by keeping all their data and hardware on premises, and have the data on the cloud.
in this case is partner is amazon. it helps you draw attention to what happens if you adopt the cloud and bring out companies cloudforce to sift through all of your data. salesforce seemed to be all caught up in what happened to president trump. the focus was on wall street, not washington or silicon valley. but companies have to make judgments about what their customers want or may want are going to be the ones surviving in a jarring fiscal landscape. captain morgan says that amazon's marketing powers put products into the hands of
customers. if you like this pair of shoes, you might like these pants too. somehow this message just didn't resonate last week. we were too caught up in the scorched earth from the white house. today every company what helps manage businesses on the cloud, whether it's red hat software, or adobe, or alphabet class a saw their stocks roar higher. now i don't want to limit it just to the cloud. there are some astounding moves in the broader tech sector. autodesk, the world of computer aided design. since then it's stock hasn't been able to stop climbing.
in this is beginning to feel like the nvidia of software. i would have named my horse nvid nvidia. qualcomm has officially broken out. remember, tim collins said it's going to go to 59. so here it is at 59, so he's taking some profits, that was his initial price target. the video game complex including the game developers and the semiconductors that power them, take two rallied. remember, this video game move is all about the stay at home thesis that we propound daily. the idea that these days people love to sit at home, play video
games, maybe checking their facebook page, drinking beer, look at dominos making a new record close, or munch on fritos or doritos. i had some fritos on saturday. i couldn't believe how good they are. anyway, shocker, pepsico just broke through to an all-time high too. stay at home thesis is -- that was easy. >> there you go. then there's apple. apple. which in many ways is the company that makes the whole stay at home trend possible. this morning the fellas at lbc capital markets put out an article called "apple, the path to a million dollars." before you dismiss the idea as
being totally wacko, remember that apple has an 80 billion dollar market cap. second apple still trades at a big discount to the broader stock market. it sells for 14.8 times next year's earning estimates. even though i think all of us recognize that apple is hardly an average company, when you consider its incredible products, fabulous management, and they're amazing balance sheet. the thrust of all these trillion dollar recommendations are two fold. the new incredible service chain that i'm endlessly harping on or touting, whatever you want to say, that's got a growth rate in the low 18s. apple will inevitably come up
short as it has with many of these tech analysts. and system a workhorse, compared to the high strung cloud thoroughbreds which are really hard to ride. what if we take a page from warren buffett and decide that apple should be judged not as tech stock, but as a consumer products company. well, that's a horse of a different color. apple stock is much, much cheaper than unilever or colgate or clorox, which is surprising. it's a little less expensive than proctor and gamble, because the iphone is a lot like one of proctor & gamble's primary wages. but the real money gets made when they sell you the blades. the only difference is that
while gillette claims innovation, apple actually delivers amazing innovation with each new iphone. i'm thinking iin ining iphone8 have already considered the 7 plus to be a lap top alternative, thanks to its gigantic display. comparing a razor to an iphone, but the business model has always been one that's hard to find. these cloud computing companies simply don't need any help from washington, for the most part they're low taxpayers who use nearly every penny they make to grow their businesses.
that's what makes the 3-year-old thoroughbred an apt analogy. remember when trump was elected and i thought he would be good for business. but trump's been making a powerful case for innovation overseas. boeing who donald trump just picked on until the respective ceos caved. you may consider that corrupt or rank cronyism, but this is mad muff money. one man's corruption is another man's investment opportunity. black stone rallied 15% on the news. there's some terrific rallies working if you work with the president. but they did not extend to mark
fields, the ceo who lost his job today. more on that in a moment. and who will kraft heinz buy next. campbell had a tough quarter and maybe the family behind the company is ready to cash out. pinnacle tried to sell itself once before, much lower price then. maybe he's got his hat permanently in the ring. but to me, today's about how cloud computing has become the big winner, both on the track and in the stock market. when the president's on the road, the market turns to what it does best without the company's help. the cohorts are the ones that are riding the winning horse in the triple crown, cloud computing, both here and in the
triple crown. john in connecticut. >> caller: boo-yah, jim. >> how are you doing. >> caller: i'm doing great. i'm interested in general dynamics, i worked for the company for 30 years, i'm thinking the target price could go to 220 by the end of the year. do you agree with me? >> i agree with you, general dynamics is a great company. it's superior in every way, you've got a winner, congratulations for working there all those years. todd in georgia, todd? >> caller: boo-yah, jim. i got a daughter who's on snapchat all day long and i'm wondering how they can grow and make some money.
should i buy some now or wait for the ipo? >> you know, they have ipo'd there already. i think snap could be a long-term good situation, i actually prefer twitter to snap. i think twitter's made a lot of changes that i really, really like. and if it was data mined better, that's what we would like. snap, i think is a way for our kids to do things that we can't see. so i'm not as crazy about it. i mean i was checking my facebook page yesterday, geez, a lot of people god married and had kids the last few weeks, maybe that's just my facebook page. charles in mississippi, charles? >> caller: hello, jim. big red neck boo-yah to you, buddy. >> good dale. >> caller: i was just calling to find out your take on ralph lawrence. -- ralph lauren. >> they got a new ceo which is a
good thing and they just came in to figure out how to do a world wired strategy on salesforce ralph lauren. i don't like to bet against ralph lauren. cloud computing is off to the rices, and it seems like this cohort is a horse of a different color. we have more coming, where ford is headed after firing ceo mark fields and replacing him with the man at the head of the autonomous vehicles unit. but before that, he was a dynamite cabinet maker. then i'm raiding your father's liquor cabinet. and some researchers from wall street are starting to get nervous about the american
and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount while at a all times being hostage to the peaking u.s. auto market. and it sure didn't help that he followed in the footsteps of al mallalay. mark took the reins of the story of ford motor corporation on
july of 2014 was fired today, less than three years after taking the job. he had been a board member from 2013 to 2016. while it's true the stock had fallen from 17 to just under $11 under field's tenure, something i obviously don't like, it was too high to begin with. the hand he was dealt with mallalay was good, but also depended on the american market. plus it's predecessor had. invested in driverless cars. any commitment to autonomous business took a few billion dollars investment to get it right. still, fields's first quarter of 2017 was indeed a weak one, it
was down 30% and that was bad too. on top of that, he made it clear to me that it would be a down here, something i knew would cause him headaches and sure enough investors started calling for his head just 11 days ago. can't deliver a bad year when you're already in april and may. first ford lagged badly behind in the superfast growing large chinese market, no fault of fields, he was trying to catch up from day one. and ford simply couldn't beat the competition. third the stock of tesla just took off, passing ford in value as it went from 240 to 310 during field's tenure. finally fields ran into the buzz saw that was president trump,
pressured the plants to make small cars in mexico, which would have cost u.s. jobs but give on the company a higher profit margin. the man who replaces fields, he's a close friend of chairman bill ford who are refused to say that fields was fired, instead saying they both agreed that after 28 yearsed a ford, it would be good for the 68-year-old fords to be fired and replaced by the 64-year-old hackett. hackett worked at office cabinet company before joining ford. steelcase finished under 15 when he retired. the stock was up on a spike when it became public and the company never fulfilled its grand
ambitions. in my opinion fields should have been given more of a chance. but now it's hackett's chance. i guarantee you the job won't be any easier than the one that fields did. after running a traditional oil compa company. still more "mad money" ahead, including a cause for a little happy hour on cramerica. a big boon for a british control maker. and cloud big data, ma sheern learning, i'll share you the buzz words, i'll speak with the ceo behind it.
. we're now coming up on the 1-year anniversary of the brexit vote that shook the world. when uk shocked just about everyone by choosing to leave the european union. it triggered a monster global selloff. but after a few months of pain, we quickly bounced back and we knew some companies early on would flat out benefit from brexit. you can argue for leaving the eu as a policy question, but the one thing we know for sure, it helped make britain's currency cheaper, the pound went into free fall versus the euro and the dollar, and that's good for companies based in britain who do a lot of companies overseas. which brings me to diago. diageo makes amount of the
popular brands, including joh y johnnie walker. britain's weak currency means that when diageo sells me a bottle of booze, that money goes back into more pounds. this stock has seen a major brexit bump. that's not the only thing driving this thing higher. first, though, let's go back over the bull case and how it's played out. i last recommend the stock in september and since then, it's given us a nice, 8% gain, that was a post brexit move. why did it like it? while a weaker currency makes it tougher for companies who rely r on imports, it's good news for exports.
all of the scotch costs weaker pounds, but all of its exports are in foreign currencies, plus the fact that diageo gets most of its stocks from outside the uk. which gives it the boost it has been experiencing. now it's not just brexit, though, this is what's really important. there's another big reason i like diageo, it has to do with turn around in mccau. for years china was ripe with corruption, and if you wanted to bribe an official, you gave them a bottle of expensive scotch. in the last year, particularly
in the last few months, mccau has roared back. i bet they also feel just fine giving each other expensive liquor. i'm not saying i approve of bribe bribery. but when you live in a communist country, paying people off is kind of how things get done. it's an unofficial tax for product makers like diageo. in terms of brexit, the pound remains extremely weak against the green back. now diageo itself only reports twice a year, not quarterly like american companies, so we haven't gotten any superrecent numbers. but when the company posted its first half results for the fiscal year in january, they straight up told us that britain's weak currency has boosted sales by 850 million
pounds and boosted profit business 300 million pounds. and with uk actually going through with brexit, we can expect this to continue for at least the next year. remember these numbers are from january, didiageo reports againn the summer. the company's overall scotch steals were up 6% in the latest reporting period, that's a major acceleration, i wouldn't be surprised if it maintains that level or even keeps improving. about a year ago, we learned that diageo was bringing in a new ceo. he came in with the goal of cutting costs, growing the business and making smart acquisitions. its too early to know how this is going because the company
only reports every six months. but things are going well, not as well as constellation brands. one of the hardest ning investors can do long-term is simply let your winners ride, something always comes up to scare you away from stories that are working. i think this is an excellent company with a powerful growth narrative. brexit is still on your side here. the weak pound is a price cut. diageo has been roaring on the brexit vote. if you don't even it already, wait until the next bout of market wide weakness and then you've got my permission to pull the trigger. let's go to james in florida
james. >> caller: i have a question about yum china. i acquired a sizable sum of shares when it broke off from yum. what should i do, sell some? hold or stay in? >> you have a sizable stake in yum china. i happen to like yum china very, very much, i cannot cancel doing any sort of selling in it. i want you to hold that stock. let's go to joyce in utah. joyce? >> caller: hi, jim. my question is this. i own shares of panera bread. should i take the profit now and leave the remaining shares in my account, or should i sell all of my shares at this time. >> no, i want you to take the prof profit. you got the gain, always think about what happened with
walgreens and rite aid. this is just the beginning of diageo's move higher. more "mad money" ahead, including what to make of the calls of caution about american credit card debt. are we tiptoeing towards another financial crisis? or are these guys and gals just crying wolf. and signing on the dotted line when it comes to data in the cloud. and are you ready cramerica? i'm going into overdrive with a fast fire lightning round. so stay with cramer. ♪
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do consumers in the united states have a credit problem? that may sound like a bizarre question to ask when the average is flying high and the big banks all in pretty good shape. but it is something we need to consider. why? because during this past earnings season, there were some serious issues at the credit card companies that nobody was talking about on air, namely capital one, discovery credit services. the big banks had a lot of the same concerns, but it wasn't a problem for them to move the needle because they have all these credit lines. we have some analysts reports that suggest the problem might be more widespread than we thought. last friday, a very good analyst team at wells fargo downgraded
the whole credit market citing credit concerns. i quote, the u.s. consumer needs to delever, end quote. that is not what we want to hear. so have we been borrowing too much money, is this something we really need to worry about? or is it much adieu about nothing? first of all the credit card issuers were crushed when they reported. capital one sanging 30% the day after they reported. this one plummeted more than 15%. what about the big banks? well, you know what? for the larger munsoney centers most of the banking sectors are doing well. but if you go over their credit cards, you'll notice that even the big banks are dealing with some emerging credit quality
issues. they're provisioning for credit losses for the first time after three straight quarters of decline. granted these metrics were still down year over year, but they started to get a little worse not better, with management reporting seasonably higher credit card losses. how about citi? this is harder to parse, because citi bought the costco credit card business from american express less than a year ago. at jpmorgan, the credit card write off rose from 2.94, up from 2 .6. wells fargo saw their credit decline. these small credit quality issues at the big money center banks bloomed into much larger problems for the pure play credit card issuers that don't have the offsets.
capital one saw it's credit line increase 93 basis points. this was the weakness that caused capital one's earnings short fall. and worse, management forecasted an even higher net chargeoffs for 2017. not encouraging. as for discover financial services, very well run fund, their net charge increased across every business except student loans and management got substantially more conservative. and sinchrony is a total dog. with its net charge off 4.6% the first quarter, up to 5.33%, leading to a huge earnings mess much harder than credit cards. why aren't people talking about this? in other words the increed in
banged loans cause -- -- are these credit loans just the canary in the coal lines? wells fargo in their research team recently reported a credit card forum. the problem, the huge expansion in credit coupled with weaker under writing standards. weaker under writing standards for those, has led like you would expect to a major increase in deadbeats not paying their bills. i should be more politically correct, people who can't afford to pay their bills. i'm from that old school, i'm older, i do these things, i say these things. people can't pay their bills. despite low unemployment, something that seems counter intuitive, we're getting bad numbers. an article came out, the u.s. needs to delever. american consumers have taken on
too much debt, particularly credit card debt. the rich are doing just fine. the lower income borrowers could be in trouble. that's the story of our country's life. that's a huge chunk of the population that could have trouble getting financing from anything from a house to a car to a new toaster. that's not a good sign. the one thing that makes me nervous here, capital one, discover and sinc hrksinchronic y, you might see this and tell yourself the stocks are cheap. what about the one credit card company i haven't focused on, american express. there's a reason i left out amex, kind of a combination of visa and capital one. visa and mastercard very strong here. after spending a long time in purgatory u america's investors
made a come back. rallying to a new multiyear high of 80 back in march. even as the company reported last month, i fell was much better than any investor feared. the stock jumped on the news, but then pulled back again, thanks to the negative pin action from the rest of the credit card space. so where do i come out here? i would stay away from capital one stocks until their credit stabilizes. if deutsch bank is right, if this is a rich versus poor issue, where the rich are doing just fine and the poor are defaulting in greater numbers, but if the problem is more broad based, then the whole group will be in trouble. american express included. so i'm saying you have to stay on the sidelines until we have more information, even though i
want to recommend american express. that data from everyone in the space indicates that credit is indeed worsening in this country. but the more i look at these numbers, the more this feels like a return to the old days. when the whole financial sector had weaker under writing standar standards. in shooter i think this is a sine that the credit card companies are getting less uptight. but until we can be sure this problem isn't going to spread, i suggest waiting. the whole financial sector is still hostage to the federal reserve, but if you think we'll get rate hikes this year, i would just bet on the major bankings rather than these pure credit card names. stay with cramer.
i'm feeling better because blackberry is up. what's up? >> blackberry turned out last quarter, showed you a lot of cash and some good intellectual property. i have to chase it now. because it's up 94 cents, it's a very big move but there is substance behind it. joey in louisiana. joey? >> caller: i'm calling about exact sciences corporation. do you see i should sell? >> it's been very well received in the medical community. but i also have to point out. the shorts have said to me, listen, jim, you have to understand this thing could have a lot of short-term risk in it. i do believe it's taking the country by storm because of the problems with colon cancer.
let's go to brit in california. >> caller: i want to know about splunk. >> the stock kind of got crushed but it's part of the cloud computing world where their do great analysis. i'm not giving up on splunk, i think it's a really well raun company. >> caller: we talked got fcx a week ago. >> i see these big chinese infrastructure projects, they're going to use a lot of copper. but i don't know what gives it's up side. i just feel like it's bottomed here. let's go to rex in texas. >> caller: thank you for taking my call, jim. happy musical instrument day. >> really? that's right i saw a guitar ad this morning. >> caller: kudos for last
month's activision tip. last week's dip, trigger. jail, i found a steady eddie for a few years what do you think about now? is it time to pull the trigger on nrz? >> these are companies are you don't know what they invest in and they're doing a lot of stuff that i can't understand. but i see the yield. but i historically do not buy things that i cannot see what they do with the money. jackson in massachusetts, jackson? >> caller: boo-yah. hi, jim, i wanted to ask about rrc, i've been watching them for a few months now, everything i have read said the buy is really favorable, but it just keeps going on. >> if we do not have a scorching, incredibly hot summer, these guys are not going to do well.
if it is a hot summer, these guy also go where they need to go. but it needs to be a hot summer. >> caller: my company is ntnx. >> give on this one, i know this one has a low dollar amount, 17, that doesn't make it cheaper than salesforce, it's much more expensive. sam in illinois, sam? >> caller: just got finished reading your book. outstanding read. my stock is acn. >> this is a stock with a good yield and a strong anti-can sce drug. a great idea,
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this is a company that has risen to date. cyrus one reported a strong quarter earlier this month. let's take a closer look with the president and ceo of cyrus one, i'm going to ask him more about how his company is doing. thank you for being here. have a seat. i have this theory i'm going to bounce off of you. the dividend is just kind of ice cream. what's amazing to me, is if you weren't a real estate investment trust, it's also a co-heart. you're just being pulled down by the whole cohort. >> it's an interesting company. we are a real estate trust, so we do trade with that, but what you're seeing more and more of those rotation a asset food groups and into one that's growing. we grow five, six times faster than the typical retail. >> the reason i point that out,
some people will say, wait a minute, 3% that's not very good. but it's a growth stock. >> you say in your conference call that when people understand your story, they realize that there's no need for them to stay in this data center business. have you been able to convince some of the big builders of data centers, some of these companies that perhaps you should just take their stit sites over? >> traditional brick and mortar, we have convinced them to give all that up and give it to us. what we have been successful at is convincing the largest cloud companies in the world to also outsource it. >> i notice the churn is down substantially since i have seen you last, so that just means people recognize this is the best way to go. >> we call it the california
effect, once they're in, they stay in it forever. >> i went to virtual crowd, it looks like they may be wedded to the business. >> for the time being, that may be the case, but more and more are choosing not to build their own. we have nine of the ten largest cloud companies as cust bhers and that's just going to grow in the next decade. >> you took a giant piece of land in the state of washington. i can't asusume that's going to be for amazon, but you have enough customers that that's immediately going to be filled. >> it's hydro, it's green, it's a great green story and really cheap. but it comes down to dollars and cents and the cost savings for having a data center here versus up there is an electrical savings. >> if you build all your sites
there. you need to be closer to some of the other cities, chicago, texas, virginia. >> everything is application driven. so there's some applications that don't require a high degree of latency, and those applications are going to go in low cost vooimplt environments. so you think of any of these applications, storing videos, photographs, that aren't accessed very often. one of the fast trading environment. >> we have data centers for wall street, where their can't afford to be even a millisecond later, that's not this kind of case. >> we actually own that one. >>
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