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tv   Mad Money  CNBC  May 7, 2020 6:00pm-7:00pm EDT

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more if they smoke m.o. is the ticker. >> guy adami >> yeah. don't smoke. just say no. number one, number two and i'm with mike coco beware on this. >> thanks for watching "fast 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 just trying to make you some money. my job is not just to entertain you, but to educate, teach you. call me 1-800-743-cnbc tweet me @jimcramer. what if we have a vaccine? that's what today's rally was about, a virtual dry run if moderna can produce its vaccine
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in mass. the speed record is four years for mumps. moderna uses artificial intelligence by the way, fueled by amazon web services to speed up the drug delivery and discovery process their covid vaccines are already going to phase two trials, shooting for phase three this summer that's incredible. that's much fafster than anyone believed a long time ago that would change everything how many if's? mighty big if's, too the rally gives us a glimpse of what the future may look like if moderna works with the dow up 211 points [ moo s&p climbing 1.1% and the nasdaq 1.4% >> hallelujah. >> at least that's the glass half full version of what happened today the world view says you have to ignore tomorrow's hideous nonfarm payroll number at 8:30
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because that's in the rearview if there's a vaccine around the corner, you have to believe the economy's bottom and fuchl is much brighter than the past. we're buoyed by companies that said april and the beginning of may have been surprisingly strong lyft, uber, pay pal and two companies here tonight, etsy and square but let's not get ahead of ourselves. this market does have a tendency to bounce between unbridled optimism and total despair no middle ground the glass half full view, let's unpack it. first now that we're gradually reopening the economy, it's possible that april marked the bottom in a host of different industries from toys to waste disposal to aerospace. that's what the hard headed c.e.o. c.e.o. ratheon technology told us it can't get worse than april for aerospace because everybody stopped flying companies that make components that services passenger planes,
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thank heavens they have a powerful defense business. second, we're getting a partial return to normalcy some restaurants are open admittedly with very, very few tables maybe not enough to ultimately survive. with the government covering eight weeks of payroll makes sense to give it a shot. i have to tell you, it's aided by the experts from georgetown and johns hopkins. they're not fooling around this morning i got an email headed, that's right, sports are back there is a big usc-249 bout. fantastic fighters it's being broadcast this saturday in front of a fanless audience looks like at least some of pro sports have figured out how to do business in the covid era can basketball, baseball, or football be far behind maybe someone figured how to do team sports for real you abbott test them 59 halftime that might explain why disney's rallied today after suboptimal
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quarter, by the way. big deal for them if espn has something to broadcast again other than michael jordan. third, we know that reopening the economy right now is incredibly risky. there is a real chance we get a major spike in new cases but maybe all the physical distancing preerchts that from happening. the government has less control over the stuff than we like to believe. if people feel safe the economy will coo come roaring back if they don't feel safe it will after we come out of quarantine. they can lift the lockdowns and back to normal oil may a comeback after collapsing to a negative 37. i don't think we'll seal that again last month oil futures back to 23 bucks that's nowhere near high enough to present a bankruptcy in the patch. they see this rally as a sign that maybe the reopening is working. fifth, we don't have a vaccine yet, but you know what we do have a drug that can get severe covid patients, some of them at least out of the hospital a few days earlier.
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gilead's remdesivir. regeneron announced it's tantalizingly close to a mono clone alan ti body that can fight the virus once you catch t. maybe they can work side by side with remdesivir, a cocktail that's how we got hiv under control and hep c. those knocking dr. fauci, come here, i got something for you u. [ ding ] that's your head six, we have companies that are thriving in this new world companies like service now salesforce.com, octa, a family fave companies i brought to you again and again and again. these cloud based software plays which we have been behind from the beginning, well, the stay-at-home economy they figured it out they figured out how to get it so your business is open that's why their stocks have been on fire including today's monster 40% run in twilio, the cloud based messaging play by
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jeff lawson. finally the action the stock market suggests we're seeing real economic activity maybe the stimulus checks. payroll potential. unemployment's gone up what you get for being unemployed whatever, whatever, it's happening and it's beginning to work we see it in stocks. home depot rallied for days on end. so has lowe's. perhaps there might be even a gardening season this year like christmas from home depot or lowe's so crowded i'm going from seed i am, i'm planting seeds this year the home builders seem to have bottomed, too. that's a big part of the economy. above its weight prepositive narrative out of the seven points but there's one little problem we don't know how much of this stuff is going to happen it's entirely possible moderna's vaccine doesn't work maybe it's ineffective afrter a few weeks.
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so many things go wrong when you inject a healthy person with what's basically a tiny dose of disease. maybe we reopened the economy too soon we've seen other countries pull this off, but they all had enough testing and contact tracing so they could rapidly stamp out any new outbreaks. they embraced face masks, something many people in thi country seem to find repulse i have or inconvenient including the president of the united states when you exclude the new york metro area we haven't bent the curve in the country new cases are accelerating seems ill-advised to reopen until we have the pandemic under control in some states we can't pretend this thing will go away. i do favor reopening, but in the states where it's going on still higher, i don't know sounds ill-advised the strength of the stock market might have less to do with the fundamentals and more to do with the lack of viable alternatives. money managers have been inundated with cash after a fabulous april for me i am more optimistic, but i don't want to get to wild eyed i like to keep cash around for
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the inevitable disappointment. we don't know how the situation will play out. so we should own stocks that can thrive during a recession. yeah, cramer's "mad money" index. but also do fine once we claw our way out of the abyss i don't want anything that's getting obliterated by the virus, think the airlines. i don't want to mess with companies that have challenged balance sheets and suspect dividends. i'm willing to make an exception for disney even though it suspended its dividend for the next -- they do half year because it has such an iconic brand. everything else in the covid blast radius forget about it don't touch the hotels if you have them and they're running, sell them don't touch the banks. if you have them, they're running, sell them the bottom line, i get this rally, it's based on hope. while hope should never be forward of the equation, truth is there are some positives now occurring. the trick right now, we need to acknowledge that good things can still happen without going into denial about all the bad things that are currently happening. it's a tough tight rope to walk, but i'll get you where you need
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to go. let's go to harish in illinois harish >> caller: hi, jim booyah >> good to have you. >> caller: thank you here's my question i bought nike at around 89 last year it had a decent day today but i'm wary of the post-covid world. maybe buy one of the stocks on your -- >> no, i don't want you to sell nike nike's really good and they're having a good quarter. i don't care where you bought it i care where it's going to i think nike goes back to its old high so please don't sell that one. all right. the prospect that moderna's back seen to set a phase two trial could be effective fighting covid-19 ignited a "squawk" of hope consequently in today's rally. despite its promise i want you to continue to stick with stocks that can thrive in recession but also going out of one. on mad tonight, norwegian cruise lines. how are they navigating uncertain waters
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i'll tell you why beyond meat is able to keep winning in this market etsy sales doubled in april. the stock went down a little bit today only after hitting its all-time high. i'm talking to the c.e.o. after earnings, so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. yes. the first word to any adventure. but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant.
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what do we do with companies that i have to say are kind of right in the blast of covid-19 but also ones that can raise enough money to stay solvent through this tough period? so take norwegian cruise lines holdings we've had them on a number of times. the company got hammered when they filed an 8 k, a government document, where they reveale the lack of liquidity if they didn't raise capital stock got clobbered. how about a successful fund-raising process they raised $2.2 billion including $$4 million offering, $11 a share. senior notes with 12.5% interest rate that's high. they're in rough shape july at the earliest, you have to wonder how many customers come back before we have a coronavirus vaccine. but the growing concern risk has been taken off the table and
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that's a very big deal hence by the stock surged nearly 8% today let's take a closer look at the president and c.e.o. of norwegian cruise lines holdings to get a better read of the capital rates, what it means for the company's future mr. del rio, welcome back to "mad money." >> it's great to be with you >> frank, we want to understand first of all, what was the investment case you gave to the shareholders and new bond holders when they -- when you came calling for money >> look, we told them the great strength this company has exhibited over the last few years. we're a very, very strong company as you know well i've been with you several times in the last few months and that this covid-19 situation, too, shall pass we've got the youngest fleet in the market place customers are still booking. it's hard to believe, jim, but today we are only slightly below in load factors compared to where we were this time last
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year for 2020, for '21 sailing our loyal guests are still behind us. pricings remain strong and it's a question of how soon we can get back doing what we do best so, look, the subscription was -- the offering was over subscribed nearly seven times. we were able to upsize it. not only did we upsize all tranches we raised $2.4 billion combined with the $1.1 billion we already have, gives us over 18 months of liquidity in the event that there is zero revenue. you tell me another company in any industry, much less the travel and tourism, that has that kind of liquidity cushion and that kind of runway to outlast a zero revenue environment for 18 months. so we feel very, very good about the future we feel very, very good about our customers and our ability to come back. yesterday was a great day, jim
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>> pretty amazing. now let me understand. do you expect to sail in 2020 or is this all for 2021 >> no, we expect to sale sometime in 2020 it would be irresponsible for me to give you a specific date because we still have to gain clearance from the cdc and other government agencies. but we'reworking hard, shoulde to shoulder with them to develop enhanced protocols of every kind you can think of as you know, we're consulting with dr. scott gottlieb, the former commissioner of the fda he's been very helpful we believe together we'll be able to demonstrate to the cdc and other government officials that cruising is indeed safe not all cruise lines are created equal. we had a stellar performance when the outbreak first came out. had a handful, only a handful of any kind of cases on board and so we feel very, very good
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about our prospects, and now with all that liquidity in the bank, it gives us encouragement and the confidence to go forward. >> listen, frank, i did go over the cdc numbers and it is true i mean, you had a much lower rate of covid. i mean, kind of in line with basically every company in the country as opposed to cruise ship company why is that 12 what were you doing? because it was pretty stark compared to the other cruise companies. >> we took immediate action when the virus broke. we denied boarding to anyone who came through china, hong kong, macao, all of asia we think that early action really helped to curb the spread, especially among crew. and then we're very, very proud of our normal procedures in terms of cleanliness and disinfection i'm a bit of a neat freak, jim and my ships are pristine always
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and i think that helps but also we took immediate action when the order came down to seize operations. we took it seriously we had all our passengers home safe and sound by march 23rd, over a month before many others did. and so all those factors combined allowed us to post the incredible performance that we did. and i think customers, travel agents, and investors quite frankly, took notice of that that cruising can be safe if done correctly >> okay, frank on march 8 when the disease was spiraling out of control, the centers for disease control did warn americans to stay away from cruise ships did you launch any cruises from the united states past that advisory >> jim, that was a sunday. quite frankly, i'm not sure whether we did or not. my guess is we probably did start a cruise or two. but on march 13th, friday, march
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13th, when the order came down, we were marching two sailings, one out of miami and fort canaveral. people were on board having lunch. i told my marine vps let them have lunch, open the bar, when they're done, please escort them off the ship because we're not sailing today. >> got it. that's very important. >> well, that's one of the reasons why we posted the numbers we posted, jim >> absolutely. now, what are you doing in terms of customers -- how many customers took advantage of the 125% credit for future cruise and how many opted for cash when you guys put out your edict? >> roughly 50/50 >> 50/50 >> and of the 50% who took the future cruise certificate, a little over a third have already booked their cruise, primarily for fourth quarter of 2020, and throughout '21 >> let me ask you, i looked -- you did cut some of the prices they're pretty good, frank >> you know, jim, we don't believe in discounting to fill the vessels.
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our go to market strategy is market to fill as i said earlier, we're literally flat to prior years for '21 sailing versus 2020 the same time. our pricing is down mid single digits >> right that's very true i saw that >> so, look, there are going to be deals in the market place we're going to have to stay competitive. but we know how to do this i think better than anyone else. as you know, year after year, we lead the industry in yield, in ticket yields, and on-board revenue yield. we believe that customers always want value they don't necessarily want low prices, cheap prices, they want value. and today what customers want more than anything else, jim, is to know that they're going to see -- they're going to be safe and healthy on board a cruise ship and we are doing everything humanly possible to accomplish that through the work we're doing with dr. gottlieb, the work we're doing with the cdc, and the experience that we've had operating vessels under
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these conditions again, prove that it can be done if done correctly. and taken seriously. >> frank, how do you feel? there is anger toward your industry critical articles. norwegian cruises is never mentioned. what do you think about the fact the bookings are so good >> i think people are smarter than they give them credit for they understand the good from the bad, the wheat from the chaff, and we're benefiting from that n it's unfortunate the industry had the miss step it had the industry has become a punching bag and poster child for the coronavirus. and we aim to turn the tide. i'm pleased norwegian was not involved in all that riff raf. it's one of the reasons we're faring why we are. one of the reasons the investment community trusted us to invest $2.4 billion in our future, and why everyone should feel comfortable booking their
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next cruise with norwegian cruise lines holdings. >> once again, i did check the cdc numbers for our viewers, and frank del rio and norwegian cruise did have the best percentage numbers by far. thank you so much, frank, for coming on "mad money." >> well, see you soon, jim >> that's frank del rio, president and c.e.o. of norwegian cruise lines we did a ton of work on this, and i've got to tell you, i would go back on a cruise with frank. and we were about to "mad money" is back after the break.
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♪ ♪ beyond meat, it's not a product, it's an ethos if you want to understand why this plant-based protein alternative stock has caught fire over the last month, well, that's all you need to know. many younger consumers and
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younger investors often the same believe we simply can't trust the food chain any more. it's dirty, it's broken, it's unspeakably cruel. like many other themes the pandemic has throne fuel on twne fire the plant-based alternatives weren't made in slaughter houses when you read about meatpacking plants, doesn't it sound like the book you had to read in high school, the jungle the book that inspired teddy roosevelt to create the pure food administration now the fda? this spills over into the portfolios you know what? listen to what -- it's a little long-winded, but come on, the guy is a showman listen to ethan brown, the founder and c.e.o.s of beyond meat told us just last night >> it's definitely an ethos. it's one that this generation so clearly understands. as we talked about before, jim,
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we go to college campuses and the reaction is amazing because i think particularly this generation coming up understands that we can't continue to have the ratio of people to livestock in a finite eco system so we have to start making a different model for producing meat and we have that model and people are excited about it >> a better protein delivery system my hat is on, on to ethan. in other words, beyond meat is an intellectually rigorous cold stock. how about tesla? even when the electric car company was losing vast sums of money, you had believers that stuck with it because they believed the internal combustion engine's time was up how about netflix? talk about another thing that's been pulled forward by the pandemic you know what those three have in common? the believers were right two out of three made fortunes i think if you stick with this
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one you'll do the same sometimes it's as simple as what young people use versus what old folks use. start buying with pay pal on amazon they stuck with pay pal and fell in love with vinmo do you see how that stock is doing? they want fresh and organic sustainable food even though they had health scares customers came roaring back to the stores that one is going to a g thanks to companies like robinhood and sofi which encourages young people to invest in individual stocks not risk stocks i keep hearing in the brain washing industry these believers have enough fire power to move up their cold stocks in choice in ways that seem staggering to most seasoned investors because they just don't get it they don't know what the younger generation can do when they like a stock. cold names are winners tons of pie in the sky stocks, gravitate biostocks, vaccines
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that don't work, technology that never seems to go anywhere but sometimes they've got a point and i think that's the case with beyond meat. c.e.o. ethan brown is trying to solve a real problem i've talking about coming up with the tastiest least expensive meal alternative he's on a mission to prevent diseases livestock breed diseases that hop over to humans he wants to change the way we get protein because it's inhumane raising cows puts pressure on the environment. right when the meat processing companies are making front pages for having workers catch covid causing plants to close and prices to rise, i know the traditional burger purveyors are fairly dismissive. recently i pressed chris, the c.e.o. of mcdonald's who is testing beyond meat burgers in canada why he hasn't rolled them out here, what's taking so long? he seemed puzzled by what he
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called the hobbiest in me. i want to see it on the menu because i'm a hobbyist he didn't realize that it's not a hobby, it's an ethos and it's an ethos that's going to win just one more example of a long-term trend that the pandemic has accelerated beyond belief, a revulsion to wet markets, an aversion to unhygienic meat houses and slaughter houses if it means saving the planet, and just to be sure, meat, beyond meat, my palate can't tell the difference. zack in texas. zack >> caller: jimmy chill >> yoyo. >> caller: hey, big booyah from lubbock, texas, and happy birthday to my little brother out there. >> i was thinking about that, i remember it was your little brother. what's going on? how's the big bopper doing how about chantilly lakes,
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right? >> caller: absolutely, doing well >> all right >> caller: right now in the current sentiment with oil and gas industry, we do a lot of work with atmos energy what do you think about ticker symbol ato >> that's a solid company. i don't think -- you sound like a younger fella. i think that's a little conservative i mean to me i like something a little more aggressive, but they're a very well run company. very good company. i like the natural gas american electric power had a big drop off and i think that's a better one look, the pandemic is prompting a sense of wariness. it's pulling through a lot of big ideas, too and the younger investors are loving it. the sentiment is benefiting beyond meat. the company represents the investors' vision for what the future should look like, and they taste good. much more "mad money" ahead. look for a way to help small business during these uncertain times? i'll tell you how. etsy can help. can't get a ppp loan i'll ask the cfo of square why it may be time to consider a
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company. rapid fire of tonight's edition of the lightning round so stay with cramer. [ moo i know that every single time that i suit up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan.
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♪ ♪ this isn't just the stay-at-home economy i have a new name for it it's called the etsy economy last night etsy recorded headline numbers were only so-so. the guidance for next quarter is downright incredible etsy is a huge online market place for hand crafted goods lately their site has become the single-best place to find cloth face masks, which the cdc started recommending last month. given the shortage of medical-grade personnel protective equipment how big is the business?
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last month alone, $133 million worth of mask were sold on etsy's platform including the one my executive producer is wearing at this very moment. quite stylish. while the first quarter results were somewhat mixed, small revenue beat with earnings missed, second quarter was stunning 79% revenue growth i'm going to repeat that, 70 to 90% revenue growth as they're getting a boost from the pandemic no wonder the stock is up more than 150% from its march lows. it had run so much and it did hit its all-time high near the opening. and they just got a very public shout out from drew barrymore. >> i just wanted to give a shout out to etsy and say that they are doing so many things right in this time
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>> unbelievable. hey, so we've been behind this forever, but can it keep going can it keep roaring? let's check in with josh silverman, the president and c.e.o. of etsy to learn more about the quarter and the outlook, where his company is headed mr. silverman, welcome back to "mad money." >> hi, jim, it's great to see you. >> josh, sometimes when you're down, you'll go and read a transcript of a conference call. and you'll think, you know what, not only is america a great place, but we have unbelievable companies. i just want you to tell people why a drew barrymore would be so in awe of what you're doing. >> well, first of all, i'm really grateful to drew for that mostly it's about supporting our sellers. at a time when the economy has been so hard hit, we're really proud that we can give people an opportunity to go earn income for their families and for buyers, where they have a lot of needs right now and there are a lot of places that aren't able to serve their needs etsy is very much open for business and shipping. and when you buy from etsy,
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you're supporting your neighbor. >> now, i know that we have to go well beyond masks, but i do have to give you a chance just to talk about the number that you sold, the millions of dollars, and what it's meant >> yeah, we sold $133 million of face masks in the month of april. that's about 12 million masks. and just to paint a picture, you know, when the cdc changed its guidelines at the beginning of april to say that they recommended fabric face masks, we all of a sudden saw overwhelming amounts of demand come onto our site it's as though we woke up and it was suddenly cyber monday. but everyone in the world wanted only one product, and it was a product that basically didn't exist two weeks before and through marshaling the power of the etsy community, within days we had thousands of sellers making masks and our sellers were making hundreds of thousands of masks per day within a week or two of the cdc's changing its guidance.
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>> that's just incredible. do you know that when i saw that you were on, i thought that the story would be how great mother's day was because that's usually the time -- it's where i go it's almost an afterthought. but i bet you mother's day was fabulous as usual. >> yeah, non-mask sales on etsy were up 79% year over year in the month of april and, look, there are still some sellers and some categories that are getting really hard hit. so weddings would normally be a huge category for us in the month of april, and for our sellers in the month of april. weddings is down more than 50% year over year but many other categories are doing absolutely fantastic things like home furnishings to make your home more cozy things like toys and games with the kids craft supplies gardening activities gifting for friends. all of these categories are just doing fantastic. there are so many great things to buy across so many categories on etsy. and our sellers are so good at inventing products that are
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really relevant for the moment, and then being ready to ship those. >> okay. well, there must also be because you talked about at home this is an economy where people have tremendous resilience if they're not able to be at their job, they have a level of creativity that they probably wanted to be -- wanted to express all their lives. are you seeing people who are suddenly crafts people who basically always had these talents, but now that they're out of work, are able to express them in a way that may be more satisfying, they may never go back to regular work >> it's entirely possible. the number of new shops opening on etsy doubled in the month of april. and what i think is important is that i think that there are long-term trends that are happening here that have been pulled forward by years. there's still a lot of consumers out there that only really shop offline that haven't really tried shopping online. now they're trying shopping online and they're liking it so i think we might see a
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change, a big change that lasts. >> you used a great term you were calling it a meaningful and lasting inflection point >> yeah, we hope so. you know, etsy does so many things for so many people, but most people think of us just for the product they bought. so if you bought on mother's day on etsy, you think of etsy only for mother's day, someone else thinks of us only for home furnishings, someone else thinks of us only for gardening supplies what's great in this moment is people are thinking about etsy for so many other things, and the etsy sellers are really rising to the challenge. they're doing a fantastic job of shipping on time and delighting customers in this moment and so we hope we've had the chance to prove to people that you can come to etsy for everyday things and we can inject joy into the everyday, and then they'll keep coming back over time we'll have to see how that plays out. this is a really unusual moment.
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but we're certainly working hard to make sure that we earn these people's loyalty >> you talk about keep commerce human. i think that at a time when people feel very frustrated and very alone, etsy does feel like a community and it's also a community that has got dynamism. you've done something great through artificial intelligence. you enabled someone to say mask and it doesn't send you just to halloween. >> yeah, that was a big test for our team actually. when we went to bed on march 31st, if you were searching for a mask, you were looking for a halloween mask or you were looking for face cream to make your skin look younger on april 1, and 2nd, all of a sudden the definition of mask changed. our search engine team needed to change our search algorithms in hours. so when you searched for masks, you saw masks. because they were able to change
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our searchal goh rhythm. so quickly, we ended up being the all-time search in google in natural search that has had huge lasting benefits so the team has really worked hard with incredible urgency to respond to the moment. and i think that's what i find so exciting, is that the etsy seller base is so dynamic and the etsy team is so dynamic that we feel like, come what may, our market place is prepared to respond to the changing consumer needs. >> now, also i know that we should also just say, you did this with people -- your own team spread all over the place i think that's important because we've been your brooklyn headquarters it's hard for me to imagine that all the people from etsy aren't there every day, but they're not right now. >> they're not they're not. they're all working from home. to tell another story, you know, we decided in late march to push back our tv spend because march was a really hard month and sales were way down. sales were negative 20% in the month of march they were positive 79%, putting
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aside ma aside masks, without maximums they were up 79% in april. we told our marketing team to get on tv now, tell our story, this is our moment within two weeks they came up with a whole new brand strategy, new television ads in two weeks without getting to hire any actors or bring them in the studio they had to take existing footage, cut it, turn it into a tv commercial, negotiate ad buys and be on tv by mid april we were on tv with television commercials that i think are beautiful and emotional and tell our story really well. >> look, i've got to salute you. look, i'm partial to you anyway because you're down the block from me for heaven's sake. wow, you totally delivered the mask, it makes -- we needed one good feel good story, and you delivered it josh silverman from etsy delivered it thank you so much, josh. great to see you that's josh silverman, etsy c.e.o. yes, i still love the stock.
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>> announcer: lightning round is sponsored by td ameritrade ♪ ♪ >> it is time! it's time for the lightning round. rapid fire >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then the lightning round is over. are you ready, ski daddy time for the lightning round i'm going to start with dan in pennsylvania dan! >> caller: ba-ba-ba booyah, jimmy chill. >> oh, ho, the chill is in the house. what's up? >> caller: jimmy, what do you think of omni com? >> yield is 5%, solid company,
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probably the last man standing in advertising i say -- [ moo >> yanni in new york yanni. >> caller: hey, jim. go eagles. >> go birds. >> caller: speaking of what do you think about draft king >> okay, ben soto and i have decided we have to do a full work up on draft king. why? because it moved from 18 to 23 and we feel like we missed recommending the stock we're going to go back and find out more i need to go to tom in my home state of new jersey tom! >> caller: jim, thanks for taking my call i recently want to run something by you i had a good enough reason why to get into the stock. one of my favorite new c.e.o.s surrounded himself with good people everybody had good year right now. i wish you can get charlie sharp to come on the show. >> yeah, i wish charlie would come on, too he's a terrific guy. here's the problem i do not like the bank stocks.
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i don't like them. i think if we don't get a vaccine, then there's a lot of companies that are going to go belly up and wells has got -- [ buzzer ] >> he didn't write the loans they got some bad loans. let's go to chris in california chris. >> caller: cramer, you're the man. thanks for having me on. >> i try to be the man >> caller: what's your take on cyber -- >> blood purification is one of the most important things going on right now and that's been refined. james in alabama james. >> caller: hey, jim, i wanted to get your opinion on taking up a long-term position of real estate investment trust epr properties >> man, they are a disaster, hardly a fraction of the people paying rent, but that's because they are experiential. that went from good to really horrible i'm going to have to say no. and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade check the markets?
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yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. pure protein. the best combination to help you stay fit.
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pure protein. featuring the emmy award-winning voice remote. all the apps you love, including netflix, prime video, youtube and hulu. and the most 4k content. the best entertainment experience all in one place. ♪ ♪ look at square run last night the payment technology company reported a seemingly mixed quarter. modest revenue beat. couple surprise earnings lost. wait a second. we know square's clients have been obliterated in the lockdown down 39% in april and all this started in the middle of march i know it sounds grim. first, though, but then and that caused the stock to get slammed
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in after hours trading but then this morning as the lan lift coverage rolled in, square's stock turned positive with the stock ultimately pole vaulting 10% square cash, their pier to pier payment app is on fire plus with the economy reopening, you have to believe that last month was as bad as it gets for the core business. don't take it from me. let's dig deeper with the cfo of square more on the quarter and where the company is headed. welcome back to "mad money." >> thanks so much for having me, jim. >> i've been through the ppp process, and i have to tell you i thought it was very daunting and then i see that you helped a tremendous number of companies get their money rather quickly how did you do it? >> jim, we were focused on taking the work off of our customers' plates so they can focus on running their businesses in this harrowing time what we focused on doing was
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creating an application that was easy to understand and for some of our customers, our square payroll customers in particular, we were even able to pre-populate many of the fields in the application so, again, we can make it as seamless a process as possible and the result of that so far through this second round is is that the sba has approved over 45,000 applications and $520 million worth of loans to square sellers. the average loan size about $12,000, which is a fraction of the $200,000 average loan size from the first round of ppp. clearly, we are fighting for the folks who don't have other options and who really need this cash flow to run their business. >> just add fighting for the folks we thought the program was designedfor initially and is now working, and i'm glad that it is. but it's hard to navigate and square knew how to do it this was also a quarter where i think that you have two eco systems and they've been very
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separate and i know jack was -- jack door city was on the call if you can describe to people how the eco systems collided, i think it tells why square is a great company. >> we have two eco systems one that serves sellers, small and medium size businesses across the u.s. to help them start growing their business we also have an eco system that helps individuals called cash app, which is a mobile app that helps people send, spend, store it, save and now invest money. and you're right that we saw two different stories emerge over the past few months across our seller eco system and our cash app eco system while many of our sellers were hit very hard starting in mid-march with shelter-in-place, what we've seen is some stories of resilience. an improvement in some of the trends over the past few weeks as existingsellers have been able to adapt their business to
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couldn't r contactless commerce, omni channel, products and services we serve, as an example our square online store, weekly gpv is up 5x what it was just weeks ago pre-covid. secondly, we've been able to attract new sellers because of the strength and diversity of our eco system on the seller side and third of all, through the government stimulus efforts, like the paycheck protection program which we've helped facilitate half a billion dollars in loans for, we've seen sellers be able to get back on their feet while materially impacted by covid, we're beginning to see improvement that we're encouraged by. on the cash app side where we have more than 24 million monthly active customers, as of the end of 2019, we're seeing resilience in this time. we're seeing not only growth on top a funnel where we set milestones for customers in march and april, but we're
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setting milestones in terms of product adoption across our debit card, the cash card, our investing products, equities fractional investing in bitcoin investing and our peer-to-peer products and part of that is how cash app is participating in new forms of commerce and consumer giving that's taking place. online and on social media whether it's online tipping or social giving, we're a part of the cultural conversation with cash app >> now, i had another question, but when people hear bitcoin, they go crazy. so we have to go back a little bit on the tape, tell us what you're doing bitcoin you know that remains a fascination for many of our viewers. >> for the past year and a half or so, we've enabled our customers to transact bitcoin through the cash app platform in a fairly seamless way. and about six months ago we launched a new product where customers can transact fractional equities. so you, too, can be an owner of
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amazon or berkshire hathaway, stocks priced out of a dollar per share perspective, to most of our communities and so these services through investing, whether bitcoin or equities, really enable economic empowerment which is what we're focused on for our customers >> one last question are you worried as i am, with social distancing or let's call it physical distancing, some restaurants in particular might not be able to make as much money to be able to stay their ground >> we are seeing stories of resilience of course, there are many customers out there who have been materially impacted by shelter-in-place and physical distancing but we're also seeing stories of restaurants being able to pivot to become retail oriented. grocers, market places, selling their wares online and that's part of what we feel weaken able them to do because we serve verticals
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across a multitude of verticals, whether retail, food and beverage or services, we have the unique capability to help and adapt during these changing times. >> i know small business people who swear by you guys. i'm glad you came on the shop. square had a good quarter and you're dock it by helping your clients. thank you so much. great to see you that's it, amrita, the cfo of square which had a remarkable quarter. "mad money" is back after the break. these days, it's anything but business as usual. that's why working together is more important than ever. at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever.
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our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do.
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we heard square talk about resilience maybe there is more resilience than people realize. for instance, disney, wasn't that supposed to be a horrible quarter? the stock is up nicely since then we saw uber start moving why? because recently uber has been doing better lyft is doing better we heard about square doing better pay pal is doing better. think about all these companies that are doing better, and then you say to yourself, okay, maybe things are better. layer on the possibility of vaccine and then you understand why the market has been so buoyant. could it stay this way we need more good information over and over and over again, or else it won't work norwegian cruise, wow, they did so well. i like to say there's always a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer see you next time. "markets in turmoil" with scott wapner begins now.
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good evening day 130 of the coronavirus crisis tonight, the biggest states in the country get set to reopen. and guidelines the white house doesn't want you to see. >> we are entering into the next phase. >> california gets ready to reopen plus -- >> let's just say moderna has it going. >> new information on the race for a vaccine. >> we introduced though product to guarantee the

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