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tv   Mad Money  CNBC  May 19, 2020 6:00pm-7:00pm EDT

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out of the money calls so that's my final trade sell spdr calls. >> guy adami >> the twitter traded particularly well despite a lousy tape and some tweets from president trump, so i think you stay with the twitter there, mel. >> thank for 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. so call me at 1-800-743-cnbc or tweet me at jim cramer. c, is it a v
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is it a u? maybe it's an l. or perhaps it's a z. or maybe it's a w. or a nike swish. we keep hearing people argue about the shape of the recovery. but this whole debate misses the point. the defining question of this market is very simple. will we have a depression? anything that makes a depression less likely causes stocks to explode higher that's what yesterday's rally was about. even though we gave up some of the gains today, i'm calling it a consolidation day no matter what dow sinking, nasdaq dipping 5.4% when you have a bag r big rally yesterday and it us diddant give up everything because of a late afternoon sell off, it is a of a kelgs. the issue is not whether we'll have a rapid v, recovery u,
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bounce the w, l shape, i don't know the l, of course, is the house of pain for ages maybe we haven't started talking about the swish because of the michael jordan series. the market slows down dramatically all the people fretting about the shape of the recovery are getting ahead of themselves. forget the recovery. we need to know the shape of the decline. will it be a bad recession or full-blown depression? that's what's on the table until last week the depression scenario was pretty much the only thing on the table f not in my mind the very likely scenario even if the fed and treasury department moved aggressively to cushion the economy, there was still a possibility we were headed for bread lines and massive homeless encampments in major cities i have a food line near me in brooklyn that stretches as far as the eye can see there is a real chance the great depression redux whatever is happening here it's
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entirely possible the economy hasn't yet bottomed. i think we probably have, but it's not going to shock me if we have millions more layoffs and i could certainly see the stock market going lower, not out of the question. however, yesterday the market exploded higher because we got several positives all at once. you sure didn't get that impression if youlisten to the questions the senate lobbed at fed chief powell and secretary mnuchin. our senators don't seem to believe anything changes for the better some of them were downright rude, i thought. i thought it was confusion the treasury and fed have been instrumental in steppimming the decline. the source of the confusion? none other than the stock market [ bell ] the opening bell when you study the great depression as i have, gratuitous thing -- self-aggrandizing study the great depression, it's always framed by the stock market after the great depression -- the great crash of 1929, stocks just got hammered for years.
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all sorts of great american companies with incredibly elevated stocks, the rcas, radio companies of america, much more than what we have now, that's right, they were much more elevated than now. went under in no time flat and even the ones that survived saw their share prices get vaporized. during the depression the stock market itself was the fabulous metaphor for the broader economy. it told the tale, and it told the truth about what was happening in real america. they were in sync. this time it's very different. see, this time the market is much less representative of the u.s. economy you have international companies built on fabulous secular themes the cloud, the internet of things, 5g, data center. these things kept working in the middle of a covid-induced economic catastrophe many do better when people are forced to work from home such as the cramer covid-19 index which will be updated the day after memorial day in case anyone's caring.
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there was nothing like this in the early years of the great depression i wish people understood, you have to go look at the time frame of when people were focused on the stock market and on the economy, what they said over and over again was, wow, did you see how bad the stock did, did you see how bad that did? no, now we just have to focus on employment forget the depression. they're not even trading like the storks acks are in a recessn it's remarkable. some of them are out and out winners. facebook thanks to the new small business -- i think it's a fabulous idea if you ask me. microsoft because of its cloud service division, netflix because people were desperate for home entertainment amazon, deliver right to your door no mask. let's drill down on amazon for a minute because it's emblematic of the great depression people talked about, radio corporation of america, exact opposite
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in the depression there were no amazons. we had legions of bankrupt communications and retailing companies. particularly retailers, they didn't have enough shoppers because they were simply -- well, there wasn't enough money. this time even with 30 million people losing their jobs we had a safety net including programs put in place after the great depression and the government's multi trillion dollar rescue package without the paycheck protection program and the $1200 checks per person, and especially the massively expanded unemployment benefits, we would be in much worse shape. they didn't have any of that in the 1930s. this safety net generated enough demand to boost companies like amazon or walmart that reported today, it was a stellar quarter. number powered by 70% growth in its e-commerce division. it's giving you another chance to buy because it sold off at the end of the day the relative strength of the stock market has obscured the depths of this i ceconomic meltdown stocks aren't behaving like we're headed for a depression. still, that was very much the case, at least until very
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recent in the last seven days we've gotten remarkable revelations. the state started reopening for business, realized no pent up demand despite rates of joblessness. we heard from home depot and walmart business got stronger, april was the bottom as things looked pretty darn bottomless 18 days ago oil bottomed a terrible barometer of the economy. wall street disagrees with me. when crude plummeted to negative $37 a barrel that terrified people it gives hedge funds more confidence more importantly at these levels, oil producers can pay their bills which is huge for the banks that lent them money you get big credit card defaults coupled with oil defaults, they are cancelling dividends oil has come back with a vengeance. oil credit card liquidity is surprisingly low unlike the great depression, the banking system remains intact even as i continue to hate the stocks in there.
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then when you look over all the debt issued, it wouldn't be issued under normal circumstances. no one would buy it anywhere near the levels it came out. companies would have gone bust come on, carnival was struggling to survive, desperately trying to find financing. stock down to 8. offering death rattled terms no one would lend them money except the federal reserve promised to buy the bonds of spiraling companies. every time every single airline, every one would have gone under if it weren't for the treasury department they had no business and they had no business being in business without the government they would have folded with truly catastrophic layoffs that would have extended to boeing and 2 million people who work for it and boeing supply chain companies. treasury secretary saves these companies. he saved them. are you kidding me that's how you really get into a depression even after all these interventions we have a lot to worry about. there was one more missing piece of the puzzle. we need to have some hope for a vaccine. not the vaccine, some hope when you look at the major pharmaceutical companies, they all say next year, that's a long
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time yesterday moderna released preliminary data, very, very, very preliminary data that suggests they might have something by early next year or late this year that gives us hope although the hope is partially repealed today when people started poking holes in moderna's press release. moderna was careful about what they told us yesterday which was not a lot. somebody blew the preliminary data point out of proportion the company sold stock at the opening seemed to think that the subsequent stock sales were both ill-advised. look, i'm not saying this market's done going down there is always the possibility we get more sell offs like we did at the end of the day. you'll hear more about that as we go off the charts bottom line, even if the moderna -- we needed remedial statistic lessons. i know that class was hard the fact is we've taken depression off the table that's more important than which letter of the alphabet the market resembles it does mean we won't be
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revisiting the market's lows because of all the not as bad as feared news that permeates the market how about darren in florida. darren >> caller: booyah, jim >> booyah, darren. >> caller: want to give a quick shout out to my pop, brother and buddies ricky and ryan i want to talk about salesforce, great track record i currently own it and walking taller on the spike up today i'm extremely bullish on it in the short term, though value on the stock and high 190s to low 200s. i want to double my position leading into -- >> no, no, come on what would ricky think that was one of his friends. i don't want you to double -- you have a really nice run here. if anything, look, i would rather sell than double here you have a really great gain my charitable trust owns it. we look at it every day and say we thank our lucky stars it's this high, but we would not
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double down here and, yeah, just tell ricky to be cool all right. let's go to michael in california, please michael. >> caller: great big booyah to you, mr. cramer. >> giant size booyah back to you. what's up? >> caller: thank you for taking my call. i'm a huge fan of yours. got my dvr filled with cramer "mad money." >> there you go. >> caller: i'm calling on clovis oncology, ticker symbol clvs >> i have to tell you, i have always liked clovis. i think it's a great spec. you have to understand -- my sister lives in boulder. i say buy clovis it is a spec if you put more than a tenth of your money in this, michael, you shouldn't be dv -- what are you doing? dvr-ing me, whatever you're doing. it's too speculative i do like the idea let's go to ian in michigan. ian. >> caller: hi, jim here is ian weinberg
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>> caller: i took a play back in april $32. is it time to take some profits, buy more shares or hold on >> what's the stock, ian longer term i like trade desk, ian, very much i'm going to give you that you have horse sense trade desk sis the alternative t google it allows your customers to be where ever they should be, all over the web, the internet whatever and i think that's a really good call but it is a hard stock for ian to own i would have preferred for ian to say that he liked, say, netflix. that would have been easier. all right. here we go the depression, well, last couple days seems like it might be off the table and that's one of the most important factors in this market. it's one of the reasons we rallied so hard until stat put out the moderna story which said what moderna said.
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we don't necessarily have anything other than encouraging data they're not going to put out a release saying, we solved covid. on "mad money" tonight, you heard it many times before small business is the backbone of the economy, so how are you getting creative under quarantine things that could leave a lasting change i'm going off the charts with what she thinks about the current set-up with corporate offices closed due to covid-19, more people are accessing corporate systems from home so ping identity, find out how it's allowing access while keeping your data secure 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
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they're always treyger ying to m their payrolls, they were proud of restructurings. they raised the earnings per share investors want to badly. >> buy, buy, buy >> small businesses don't have public shareholders. they own restaurants or bars or luncheonettes. they create. however the flip side is they tend not to be well capitalized. as we discovered during the pandemic, most of them are not essential. according to fed chief j. powell, 20 million people lost their jobs these jobs overwhelmingly come from small business. these companies are the backbone of our economy we got a serious spinal injury going. when you see the fabulous numbers from walmart or home depot today, those numbers came at the expense of small businesses that were forced to stay closed. because the stock went down doesn't mean the numbers weren't great. treasury secretary mnuchin worked out a plan with congress to keep people who work for small businesses stay employed you don't fire your workers, those loans turn into grants my restaurant took money from
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the payroll protection program and it's the difference between closing or staying open. we're not supposed to have restaurants in new york, why not shutdown p.p.p. gave you a reason for being. unfortunately i have a nagging feeling the paycheck protection program is not enough. i'm worried many restaurants won't be able to keep going even after they take the money. the new social distancing rules means more restaurants are dependent on take out and delivery not enough seats to survive. not enough people can make money that way does that mean the backbone of the economy is being ripped out? nope, it's not being ripped out. but it is shifting from brick and mortar towards your house or your garage or your apartment. what's happening is people are creating things, making things, baking things, selling them online in businesses powered by etsy welcome to the ones selling handmade goods that cannot be bought at the god forsaken mall. in a world of layoffs and quarantine and heartless landlords who own buildings and therefore don't need the rent
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money so they don't see a need to cut you a break or owned by reits who don't want dividends cut, they're thriving using wix to develop websites that look no different from the big boys. using adobe, using square as a register and take pay pal. they can zoom you a registration as the economy reopens lots of people are terrified of going to a store they can flag specials with tulio. get it fast with uber eats, post mates, grub hub or door dash they can't replace the substantial bar and eco system that used to be a hiring machine. it says something that with brick and mortar companies struggling to survive, small businesses are springing up online see your handy work? explore etsy scroll instagram it's amazing it's a celebration of small business creativity unleashed by the pandemic and it is not going away stay with cramer
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♪ ♪ are we coming out of the woods? this market spent the last two months chugging its way higher after yesterday's phenomenal rally stocks are trading like a new normal, or at least they were until 3:00 today. we need to be careful. this is still a very uncertain moment we don't know if we'll be able to safely reopen the economy without causing a second wave of covid infections we don't know how the economy can recover. at times like this i like to take my emotions out of the equation and go with a more quantitative approach. i hope things get better i obviously thought we could be heading to a severe depression i fear they might not get better as fast as many think. we need to put that to the sidant that's why we're going off the charts with the brilliant technician who owns the fibonache queen website and happens to be my partner, carl quintanilla and i go back and
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forth. the thing you need to know is she nailed the crash we checked in with her in early february she warned the market was vulnerable to a major downside correction when we spoke to her again in early march she cautioned the averages probably hadn't bottomed yet if you took her advice you could size up one of the worst declines in history. how does she feel about the current set-up 1234 take a look at this daily chart of the s&p 500. she thinks this is a binary picture. if the big index can break out a bit higher than these levels, she predicts a monster rally but if it can't mount a break out she's a little less sanguine let's jump back to late march. it's a great example of how her methodology works. remember brodens called her the fibonache queen for something. when she finds a cluster of important levels, it's time a stock or index changes directions it's a predictor when the s&p bottomed in march, it ran from 2,165 to 2,194 and
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bottomed at 2,191. there were a bunch of timing cycle running from march 22nd to march 26 we bottomed the 23rd this is available in her work. since then the chart has turned much more positive we have a series of higher highs and higher lows. five day exponential moving average, five day is the blue. right there is the break out above it on the 30-minute chart where every tick represents half an hour of trading, she got favored buy trigger, ultra short-term five period moving across the above 13 period moving average, that's what she wants to see i know, little technical there's one fly in the ointment. the s&p hasn't broken out above its 200 day simple moving average, which is currently around 3,000 that's what makes this chart so binary broden's concern is the 200 day moving average could act as a ceiling of resistance and it
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might be a hurdle that can't be taken out, and it has to be. don't get me wrong she thinks the s&p is a buy here there is too much right in her charts to say anything else. however she says you should be ready to sell if we fail to break out of the 200 moving day average eventually she has incredibly bullish price targets, maybe 4,136 that will be huge. if the s&p can't clear that hurdle, instead it breaks down below the may 14th low at 2,766, well, guess what all bets are off talk more about the tech heavy nasdaq 100 much cleaner picture and it should be. remember i told you the s&p 500 is not working as an index this is the one to follow or the cramer covid index specifically. nasdaq is above the 50 day simple moving average and 200 day moving average well above it's already cleared the hurdle she's keeping an eye on in the s&p. her buy tricker on the 30-minute
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chart has fired. best of all she noticed a pattern in the nasdaq 100 ever since the bottom all the momentary declines in this thing are similar in time and price. they last for one or two days and 24ethen the index bounces b. could be tomorrow. she thinks the nasdaq points higher as long as [ inaudible ] 9,489 and then 9,660 if that's higher potential par gets, i didn't want to mention 11,569 it would be too outrageous that would be a new high anyway, what would make her less bullish? if we get a decline below last week's lows, that ruins the story. and she'll be watching the 30-minute chart for that 5 and 13 period exponential moving average cross over in the wrong
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direction. but until then she expects the nasdaq 100 to keep heading higher this is where you should be, people what about the dow take a gander at the dow industrial average chart is good, but not great not only is the dow a substantial amount of overhead resistance, below the 200 day simple moving average. while still bullish, the dow is a hurdle to jump but a more difficult hurdle those are the two strongest areas, think nasdaq 100, brodon says you need to meet resistance this picture could get real ugly if it stops working. finally let's go to the russell 2000 small cap index russell is currently in the low 1300s, a bunch of resistance from 1399 to 1445. there is resistance. still below the 200-day moving average which creates another ceiling. if the russell can jump these hurdles, she could see it running to 1576 or even to
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1,953. if that break outside fails and russell sinks below 1200, back in the hot water again here's the bottom line the charts as interpreted by her suggest the majors are in rally mode it's a precarious rally where you need to proceed with caution if we fail to break out from the levels and slip back to where we were not that long ago let's go to floyd -- i'm sorry, lloyd in florida. lloyd. >> caller: hey, jim, how are you doing? >> i don't know, lloyd, pretty good day how about you? >> caller: doing good, doing good so far. >> so, let's go to work. >> caller: no problem. i had a question in regards to aurora cannabis stock. it fell to $6 and increased to $19 today. i was wondering is it still a good-bye good buy -- >> this is a controversial story. this is a major short squeeze. when i comment it's a short squeeze, what happens is people get very angry at me they say, well, wait a second. give me a break.
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it's not a short squeeze then if i say because of the short squeeze that's why it went up so much they get even more angry. they say it went up because it's doing great. my case is this point money has been made and i really don't care what people say and we know why that is. because i have become, after multiple years, jimmy chill. let's go to -- hey, it could be davie day trader, although i come with a much better credentials. let's go to ryan in virginia ryan >> caller: hi, booyah, jim i want to get your take on a altria and philip morris it yields close to 7% given that interest rates are low and many tech valuations are 12re67d, what do y stretched, what do you think about these two stocks >> i made a consultation with my daughters not that long ago, couple years ago, i would not recommend these stocks because they feel it's my job to be able to tell people not to smoke. and that it's bad for you. so my answer is they'll have to go to someone else
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i want to be nice about it i'm not trying to be mean. but i made a promise to them, so i don't care for these two stocks anyway, the charts suggest we're in rally mode, but one where we proceed with caution. although i have to tell you that nasdaq 100, did that look good or what? much more "mad money" ahead. one in four americans works remotely and more hackers, of course, are targeting home networks which is more fun for them security is critical i'm eyeing one, several, but a new one that can help. when a call center becomes the first touch point for a customer, how can you ensure business can continue to run smoothly, remotely i'm calling them contact centers and i'm talking with the c.e.o. of five nine that's 99999 not the 9:00 to 5:00 all your calls rapid fire in tonight's edition of the lightning round. so stay with cramer. hey! lily from at&t here. i'm back and while most stores are open,
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♪ even as we reopen the economy, i think remote work is here to stay it's been a big theme of the show most people who can do their jobs from home will likely keep staying indoors until we get a vaccine, one that works, one that's proven. that's a huge positive for all software companies to facilitate remote work. crowd strike, citrics, opta, five9. tonight i have another one for you. ping three weeks ago michael in new york called in to ask about ping identity holdings. i said i had to get back to him. ping competes with opta in the access management space. while okta stock caught fire, ping has been less explosive the stock is back to where it peaked in february though it's not making new
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highs. when ping reported two weeks ago, guidance was mixed they pulled their four-year forecast. could this be an overlooked cyber security winner? i'm not sure let's dig deeper with andre duran, co-founder and c.e.o. of ping identity. welcome to "mad money. >> it's great to be here, jim. thanks for having us >> sure. it's your first time and congratulations on your september ipo. on first time we like to ask our guests to just give a little bit of an overview about what their company does so tell us about ping. >> so, jim, we are in a space known as identity security and ping is focused on helping the largest enterprises in the world, 60 of the fortune 100 secure both their employees and their customers. and as you mentioned earlier, identity security is all about enabling security irrespective of what device you're on or where you're located in the building, out of the building, it doesn't matter. it's about connecting the right
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users with the right applications and resources for employees, it's about making that really simple we like to enable one-click access and eliminate passwords entirely if possible, allowing workers to gain access to all the applications they need across the cloud, across multi-cloud, across legacy environments and for customers, it's all about enabling digital engagement, personal interactions through the mobile phone, securing that customer information, making it really seamless for them to register, seamless for them to purchase from customers it's all about enabling that digital interaction. so we help companies in the identity and security identities on both sides of the equation. >> so, andre, this weekend i'm watching netflix on a different tv from what i usually do, brand-new visio i bought at target very excited about it. i have the rhino is my emoji for me where ever i go on netflix. it seems to always know me it always seems to know me
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i think, how does netflix know me does netflix know me because of ping >> for netflix, we are -- we help netflix on the employee and partner side, not on the customer and consumer side of their business but you might as well say tens of thousands of partners, thousands of employees across even more applications, we secure all the access to those applications behind the scenes but i've experienced what you've experienced in talking with netflix many times about kind of the in-hotel room experience and how we identify. suffice it to say they're a world class company, we're proud to serve them. and looking forward to more opportunities with them and other companies like them. >> it's more b to b in that sense. but at the same time, like okta, it's the same thing. i feel like there is something -- in order to be able to have multi factor authentication, you have to use say okta or ping what's the difference if i chose
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okta or ping >> the big difference with us is ping was born in the enterprise. we've been serving the global 3,000. we protect over 2 billion accounts all of these large enterprises are, as we say, hybrid by default. meaning they have thousands if not tens of thousands of applications across a myriad of environments now moving to the cloud. our scale and performance, we have companies that have -- that are doing over 200 billion transactions a day with ping we serve 12 of the largest u.s. banks. so it is a different market. the hybrid nature of these large enterprises, kind of the mission criticality, the level of control and security they want is just a different degree of sophistication and, you know, okta was born in the s and b market great solution for that. it's just a different market this is an enormous market >> okay. on your conference call may 6,
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you were asked about, how long is this -- the uptick from covid underway it turns out that you say that there were a couple customers who either saw this coming or wanted to be in remote places. did they just see that maybe there could be a reason why you always wanted a backup how come you had these big customers do this? >> we've had a number of companies now who have focused on identity security to kind of free them from the traditional paradigm of enterprise security, which was you have to have all the people and all the applications and all the computers in your building and you can only gain access if you badge into the building. everything was in one place. they put a firewall between that, the internet and everything else. the new world is people are everywhere applications are in the cloud. they're in multiple clouds so the question is how do they secure -- who has access to what when all the resources, including people and the applications are not physically in the building or behind the firewall so the truth is we've been working on this for sometime
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identity is the new perimeter is the saying we have in the industry and many of our customers have bought into that concept many years prior as a way to enable not just the remote work force, but the reality of their enterprises as they become more distributed. so i talk to lots of my customers in the last 30 days and they all reporthaving been in a great place with the rapid shift to work from home because they had been investing in this identity security paradigm for the last couple of years >> last question we've been saying that it can be, indeed, here to stay that there are so many advantage to it. a lot of people feel they want to get a vaccine -- people go right back to the office, it's a better way you're in touch with a lot of people what do you think? >> we've done a lot of surveys, talked to a lot of customers there is no doubt that there is going to be a new norm coming out of this and pretty much all things digital life, interacting digitally, it is on turbo boost right now.
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a lot of habbitits and convenies coming out of this are here to stay you can't secure what you can't identify identity management sits underneath all of this digital transformation which is now accelerating as a result of covid. so it's a good industry to be in has been for a long time, and we really look forward to what the future holds >> well, terrific. i'm so glad you came on. all your success since you came public and before then great to meet you, andre durand of ping identity good to meet you symbol is p-i-n-g. i know people like okta. they've been on the show many times. look at ping, too. "mad money" is back after the break. (upbeat music)
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♪ it is time it's time for the lightning round. rapid fire questions >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then the lightning round is over. are you ready, ski daddy it is time for the lightning round. let's start with greg in pennsylvania greg >> caller: booyah, cramer. >> booyah. >> caller: i'm calling from pittsburgh i'm looking to see how you feel on a company called active >> too close to auto i'm not recommending anything close to auto. i used to like this company very much i gave a lecture a long time ago. when it has auto i say ixnay let's go to diana in south carolina diana. >> caller: cramer, you make it so much fun. question is elastic. is 72 too high >> i don't know.
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how many companies are enterprise search data cloud computing? we have to have them all there are so many. we have ping tonight i need to know they're lasting we need to ask before we owe bonnie let's go to larry in new jersey larry. >> caller: jim, philadelphia philly booyah. >> oh, gees. >> caller: we can only hope. >> have to >> caller: on april 9 you had a great interview with a c.e.o. josh james whose stock has more than doubled since then. so my question to you is, is domo still a buy >> yeah, that was -- it was really cool platforms, management platforms we like that guy very much we want him to come back on. the answer is yes. we had to catch it on the low in the market i like the story let's go to andrew in new jersey andrew >> caller: jim, booyah >> booyah >> caller: how are you doing tonight? first-time caller. i love the show. >> thank you >> caller: love it, love it.
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what do you think about dave and busters? >> i'm not recommending any of the big, let's say experiential plays involving dining out food entertainment because of the pandemic jason in california. jason. >> caller: hey, jim, how are you? >> all right, how are you? >> caller: calling about -- >> no, see, i don't like the auto business. that includes anybody that finances for it. i can't get fired up about a business i think is really in major recession mode let's go to graham in washington graham >> caller: booyah, mr. cramer, sir. >> booyah. >> caller: i'm calling you about athersis >> stem cell, like it, biotech, good spec. how about we go to mario in california mario. >> caller: jimmy chill >> yo. >> caller: watching the show since college.
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in my mid 20s now. what do you think about mgm resort >> nobody in college likes stocks and no one picks stocks that's just someone who brain washed everybody mgm is not my fave and that's because i have sat down and looked at the wynn plan for opening which has got a really good academic background and gravitas to it, so i prefer wynn to mgm bob in missouri, bob [ buzzer ] >> caller: professor cramer early, thank you for 11 years of vacation for me and my wife. >> there you go. >> caller: buy or sell drop box? >> i thought the last quarter was break out quarter. they delivered i'm going to say yes to it now i have to go to matt in illinois, matt >> caller: jim, your thoughts on ventis >> that was a tough conference call again being in the senior living business at a time that we know where there were major issues in senior living has kept people
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from seeing their parents go or wanting to go themselves that industry is not an industry i want to invest in. let's go to daniel in florida, please. daniel, brother. >> caller: hey, booyah, florida, jim. long time listener since the day facebook was born. >> thank you >> caller: my question is in regards to disney. >> disney, here's our approach for the charitable trust i gave a lecture about it last week i said, look, i'm going to own it the charitable trust is going to own it it's a great iconic brand that's going to get through it. 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? 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.
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ah, they're getting so smart. choose the app that fits your investing style. ♪ confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at they're all possible with a cfp® professional. this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over,
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♪ i keep telling you that you need a barbell portfolio with stocks that benefit from the pandemic and stocks that benefit from the reopening of the economy. that way you're in good shape no matter how this plays out, including days like today. and when it comes to covid-19 winners it doesn't get much better than cramer fave five9, the contact center software play it allows call center operators to transition from work from home model in just 48 hours, which makes five9 essential during this difficult period while the stock crashed from $80 to the low 50s, it came roaring back since the march bottom. five9 is up 100% from the lows shall and it's close to where it was trading before the crash
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the darn thing started making new all time highs again in april. two weeks ago five9 reported an excellent quarter. it was higher than expected. how many can say that? even if they lowered their full year forecast so it's not total perfection still they are doing very, very well can the stock keep soaring let's check in with the c.e.o. of five9 get a better read on how the company is doing welcome back to "mad money." >> hey, jim, good to see you again. >> okay. a lot of people say to me, jim, it's just a call center. why are you so excited ifs know whuz we i know when you were talking in front of jpmorgan recently, you made the point it's not a contact center, it's more than a call center. it's how people get in contact could you please go through and tell people it's not like 1-800 five9? >> absolutely. we make the software that allows companies or businesses to connect with their customers, whether that's on digital channels like chat on your website or sms or telephone
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call that's really all our software it's web-based so it's very easy for your agents to log in. as you mention it allows agents to work from home very easily. a lot of businesses today, jim, as you know, their contact center has really become the only front door for those businesses there's a lot of companies that i used to interact with by walking in the front door and i can't do that right now. what do i have to do i have to call them or message them and frankly, in a lot of cases, that's a reasonably good, even a better experience in some ways so that's what i think is driving frankly this rush towards contact center >> you also make the point that not only should everybody be in a situation where they should use your software for contact center, the people you are appealing to are quite conservative it's not like you can come in and say, listen it works a lot of the time. you're offering reliability that make them see what they currently have >> absolutely. you know, the name of the
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company five9 means 99.99% of reliability. so we're really one of the most reliable solutions in the market people that are looking for -- if the only front door to your business is your contact center or if that's really, really important that you engage with your customers, you don't want that door to be locked or to be broken you want it open all the time so your business can continue to execute. we've seen since the covid crisis, we definitely have seen acceleration of new companies that are seeing this as an option for them to continue to do business. >> okay. so, your cfo recently said that there is clearly a large portion of the incremental covid orders that are temporary now, this was said may 14, so it's recently. i'm beginning to question how temporary they really are. i'm starting to see issues like the environment, issues like the infrastructure i don't know how broken down it is issues about the way people can interact so easily i'm not so sure this is undone
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so easily. do you think everyone is really waiting to get to the office >> no, i think work from home is here to stay, jim. we just did a survey of our customers. 75% of our customers said that they plan to continue to leverage work from home in a post-covid world only 25% said that they were going to go back to the way things were. we asked why it's simple. number one, it's cheaper number two, it's more flexible agents -- you know, working from home, get to have more flexible scheduled, the ability to pick up their kids from school. flexible and third, access to talent. if you can access the whole country, you know, not just the place where you happen to build your call center or contact center, you get access to more talent and i think, frankly, this is a very interesting opportunity for us to put america back to work i watch your show all the time, jim. >> thank you >> you talk about those unemployment numbers we have 6.9 million contact
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center representatives here in u.s. businesses, many of whom are offshore so there is a work from home opportunity here for companies to cost-effectively on shore their contact center operations, leveraging work from home agents we have an example of that one of our customers' next rep has done an amazing job just since covid. he has hired 3,000 work from home agents just in the last several months >> that is a good story. other than walmart and target and amazon, i didn't know there were companies that were hiring. so i'm glad that you mentioned that because we do talk a lot to the people who cannot find jobs, who do watch the show and just want to make something -- better themselves one of the reasons why i think you can do this is because there is very inexpensive video software, zoom now, since i've seen you last, you've done a partnership with zoom how is that going? >> it's going great. eric nguyen is a phenomenal leader he has really tapped five9 to
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provide his customers with an amazing contact center he himself uses five9 internally, so you know their business has boomed. and so they're using it internally and they're offering it to their customers jointly selling zoom to our customers, zoom phone, and then the zoom folks are recommending five9 so it's been a phenomenal partnership. and i view eric is one of the great leaders in silicon valley today. >> he's a total five9-er when i sent him an email, i asked, do you want to join the family brunch? in more than 30 seconds, he said, what time? he's obviously a five9 guy who has a great relationship with you. people haven't tried you or tried zoom and then go through you, it is -- it is like what it used to be where you have service, except you can also see the people it's really pretty amazing you brought back service and it's a great thing >> yeah, that's a big part of our dna. and you know, we're -- this is a
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huge opportunity for five9 we're executing frankly really well it is about execution to capture this big opportunity a lot of folks have been saying we're one of the few sas companies that's considered to be an all-weather company. last time we were on we talked about being a little bit old-fashioned, focused on profit we have a 19% ebitda margin last year 50 million in cash flow from operations all while growing our business 27, last quarter 28% we have a high growth business, but we're also profitable. >> that's why from day one we thought you were the one it's been terrific thank you so much to rowan, c.e.o. of five9. that's why we go out to san francisco, meet people and then follow-up remotely thank you so much, rowan, good to see you >> thanks, jim nice to see you. or is it? what if business as usual means putting people first... and understanding their needs? if that's your business.
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365 days of every year, then business as usual is precisely what these times require. which is why your lexus dealer will do what we've always done. put you first. find out how we can service your individual needs at right now, there's over a million walmart associates doing their best to keep our nation going, while keeping us safe. we've given masks to all our people and we're helping our customers practice social distancing in stores. we've implemented shorter hours, so we can sanitize our stores from top to bottom while also restocking our products. but if anything, these days have reminded us why we do what we do. because despite everything that's changed, one thing hasn't, and that's our devotion to you and our communities. we're working together, in-store and online, through pickup and delivery,
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to make sure you can still get the essentials you need. and as we move forward, know that our first priority will always be to keep you and our associates safe. ♪ ♪ next on cnbc, one of the nation's top real estate brokers says a tsunami is about to hit the housing market and home prices may take a serious dive plus as work from home becomes the new normal, how does that change the pace of our cities? and how are children coping in the crisis and what kind of lasting impact might it have on them all? we have to find out tonight at 7:00 p.m. with scott wapner. i like to say there's a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer and i will see you tomorrow.
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good evening, i'm scott wapner on day 142 of the coronavirus crisis questions tonight about moderna's vaccine sends stocks lower but there are new signs the country is getting back to business >> volatile session for stocks today. >> stocks lose ground. >> it's just too early to assess how well it is working. >> this as yesterday's star becomes today's g.o.a.t. shares of moderna tanking. >> why is it that the federal government should be the source of this money? >> plus, is america turning against our cities


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