MAD MONEY 文字起こし 23JUN21　Mad Money w/Jim Cramer 06/23/21

ジムクレイマーのMAD MONEYの文字起こしになります。米国株を英語学習を通じて投資したい方に向けて作りました。皆さんの反応を見て改善点や英語解説などい追加して行けたらと思います。とても有益な番組なのにジムの英語が難しくて悩んたのをきっかけにこのノートを作成しました。 聞き取れない部分もあるのでご了承ください。

是非MAD MONEYを聴きながら合わせてこのnoteをみれば、様々な州のアメリカ英語を聞くことでリスニング力を鍛えることが出来ると同時に、タイムリーな米国株投資情報を得ることができます。　イイネ！と思った方は投げ銭いただけると嬉しいです！

https://podcasts.apple.com/us/podcast/mad-money-w-jim-cramer-06-23-21/id147247199?i=1000526670838

0:32
Cramer, welcome at money. Welcome to Hey Mark, I'd be going right friends, I'm just trying to make some money. My job essentially is to entertain you but to educate and teach you so call me at one 807 43 CNBC or tweet me at Jim Cramer. Every day It seems we get another piece of extraordinary economic news. Every day, it's presented as something dangerous, something negative, whoa, something that will cause real problems down the road.

1:07
Rather than greeting good news with one or maybe even jubilation, we respond with fear, because we've forgotten what a rapidly expanding economy looks like. Maybe some people are too young. That includes days like today where the Dow sub 71 points as we ticked down point one 1% NASDAQ gained 1.3%. So I'm going to give you a classic example. Okay, Leanne story, the digital edition, The Wall Street Journal monitor woke up to us existing home prices hit record high and may. Alright now this piece, like so many others, reads like Exhibit A in the case against j pal R value Fed Chairman who's trying to hold off on raising rates in order to boost job growth even as demand is constrained by supply, which makes overall sales look weak, high prices weak sales recipe for disaster. Now wait one second. First, Powell recognizes that a booming housing market is actually a good thing, not a bad thing. This is an industry that gives people good paying jobs. Even if they don't have a computer science degree from Stanford pluses. I never get tired of telling you housing punches above its weight in the economy. So you'd much rather have a rising housing market, which about 10% of the economy, then a faltering housing market. Yet, when you read these headlines about home prices, hitting new records, they're, they're almost always written like a harbinger of bad times, like the economy has to be overheating because of housing. So is this industry the enemy when it's good, something that must be tamed less, we end up with Weimar Republic style hyperinflation, this time with wheelbarrows full of greenbacks in our Deutsche Marks, I think this is a good time to give you some context beyond the headlines. Because in the context of what's happening in the housing market, it's actually healthy, not toxic. And I'd say that knowing the KB homes, which just reported disappointed some who are looking for better numbers, for a clear head of what's going on. I'm turning to Doug yearly, the CEO of Toll Brothers, not just because he was a giant home builder, but because I've known him for years. And when things aren't good, he's always been forthcoming about it, as has his previous boss, Bob taught, not that long ago, going through an important and incredibly enlightening analyst day you can read it online to explain why the housing markets growth might actually be longer term than you think, rather than a cyclical boom and bust kind of growth that we've all come to expect. Listen to this. Over the last decade, 6 million less houses were built, six painless houses were built, then in the previous four decades going back to the 1970s. He goes on, it's possible that housing is just beginning to recover. Given that we have many more people in this country. Then when we were building more homes and quote, US conclusion, quote, it's going to take a long time for this pent up demand to be satisfied. We think it's going to take years before we ever get back to anything close to the equilibrium that we had seen in a bunch of the prior decades. That's what we used to build 2 million homes a year when we have half the population. We're now we're doing half that with voice modulation. Now, if you think that you really just talk this book and I get that I'm sure the skeptics out there doing it. Why don't we do this? Why don't we go to Stuart Miller. He's the St. Jude executive chairman of banagher. Another exec I have known since he was a young man and I helped manage his brilliant father's finances when I was at Goldman Sachs. Miller tells us quote, new home construction cannot ramp quickly enough to fill the void of the production deficit that has persisted over the past decade and quote, he continues quote, while some question whether that deficit is 1 million homes or 5.5 million homes, the bottom line is that supply is short, and is likely to remain that way for some time to come and quote, that's why we literally can't build new homes fast enough to meet the demand. Now let's say okay, let's do what everybody tells me has to happen if j pal raises interest rates. That's not concrete, more Homes, even my push down housing prices by of course destroyed back. Then again throw some make housing less affordable by driving up mortgage rates. Hobson's choice to make. But a lot of that demand might be indestructible. If we just give it some time that will be good. It'll be a good thing. As holes dug nearly lays out, quote, there are 73 million millennials who are now entering their 30s. And they're buying homes and quote now this key ineluctable demographic detail always gets left out of stories about the red hot housing market. And that's just plain misleading to do so because it means that demand may be and here's a word no one ever wants to use with housing, but I'm going to use the demand may be secular, not cyclical. The Fed can try to slam the brakes on the economy by raising interest rates. But molinos have been stuck living in their parents basement for years, after decade getting over the fancy equations, they're finally got the capital to buy their own homes. Why would we want to put a stop to them buying or their own homes, and all the good things that happened to the economy when housing homes because the multiplier effect of housing. Speaking of the financial crisis, though, we all remember the last time we had a red hot housing market in 2006, right before the worst economic meltdown since the Great Depression. And yeah, that red hot housing market absolutely wrecked the financial crisis. It was the it was the epicenter, but 2021 is not 2006. The problem back then was that many people were trading homes like they trade stocks when Robin Hood, except with even more leverage. Our regulators were asleep at the wheel. Rather than trying to enforce lending standards, the Federal Reserve decided to cool down the housing market by raising interest rates 17 times in a row in rapid succession. Now that worked out well. Great, yeah, cool. The housing market crashed everything. I don't want to repeat the mistakes that led to the financial crisis. No, I gotta show I got to speak about this stuff. By the end of the last housing boom, we saw people buying houses with no money down as a fraction of what the loan to value Oh, and the worst stuff was like they're buying them down, getting the down to buy them and then getting the downpayment from a home equity loan. Sometimes with no documentation needed, sometimes were wildly overvalued numbers. At the time the homebuilders told us all these things were happening, including especially told the company even tried to limit speculative buying at the cost of lower sales, because it saw what was happening. But this time, none of that stuff is going on. lending standards are much more stringent. There are no more no doc loans, no more ninja loans. It's actually very hard to get a mortgage even though rates are low. Again, I think that points to constrain but secular growth for the first time in the history of the US housing market. Finally, the Saturday articles about how the housing markets too hot always seem to leave out the most salient part of the story COVID-19 this stuff gets covered like the economy's still normal, but there's nothing normal about this situation. People have become untethered from their white collar jobs that have been the deaths that they use of slay that. So now they can work remotely. They're fleeing the cities to work in places like Boise, yes, Boise, Idaho. In many ways. Boise is the perfect microcosm for this event. Ever since May of last year, there's been a massive exodus of people moving to the west coast to Idaho, creating one of the hottest real estate markets in the country all documented in the toll animals that same thing has been happening in Austin, Austin, Texas, which was already on fire in before the pandemic. It's got that how hottest housing market in this country, which could also be the world. We're also seeing insane levels of demand from several markets in Florida. This is COVID-19 and some tax situations. Could all these markets be cooled down by the Fed? Absolutely. But what the heck would that accomplish? when oil prices are on fire we build more houses which creates more jobs over the country. When home prices fall those jobs vanish. why there's so many reporters that like hurting the economy is a good thing.

8:51
Unlike the lead up to the Great Recession homebuyers are actually solve it right now with excellent credit, strong stock portfolios, the home builders, they're in good shape. The banks are strong, sometimes good news is good news. If you try to overthink it, you're going to miss out some huge moves. Bottom line. The next time you read a story about how we should be alarmed that the economy's doing so well think about the alternative. Would you rather see a headline like housing prices plummet as market weakens from higher race or power to Home Builders? Drop dead? Call me crazy, but I think that sounds like the wrong way to go. Ted in New Hampshire, Ted.

9:32
Oh, hi, Jim. You're one of my heroes. I have several 100 shares of IBM, okay with with a cost basis of 135. Right? And I bought it for the dividends. And it's moved up nicely now. Any suggestions? And oh, by the way, I'm 84.

9:52
All right. Well, you're young 84 and I want to tell you, I want you to keep joining IBM they are going to do this split up but the main part of the division is going to stick with IBM, I think IBM is doing better than people think. I think it's a very solid situation and I applaud you owning it. If anything, I would actually want you to buy more. And I know that sounds a little while but you know, I'd like IBM since that last quarter. Is it Brian Spencer are pleased. Next time you read a story about how scary it is that the economy is doing well. I challenge you to think about people turning on Mad Money tonight. Time for your portfolio to get the stock app loving some loving on taking a close look at the company that was first brought to my attention by Hugh Cramer. Then is it time to snap up shares of snap? starts find out and star borders leveled accusations against the box management team saying the company's underperforming. I'm gonna sit down with CEO Aaron levie yet his response so stay with Kramer.

10:53
Don't miss a second of Mad Money. Follow at Jim Cramer on Twitter. Have a question. Tweet, Cramer hashtag mad tweets, send Jim an email to Mad money@cnbc.com or give us a call at one 807 43 CNBC miss something head to Mad money.cnbc.com CNBC is workforce Executive Council is a premier group of C suite Human Resources executives from leading companies across the country. It offers a members only portal and chat plus exclusive industry contact with access to breaking news calls and digital networking experiences. The network and resources HR leaders need now applied to the workforce Executive Council at CNBC councils.com slash WEC. About a month ago

11:57
we got a call from Jay in Florida about a company named app Levin. That's a PP for you home gamers. But because I didn't know much about this one, aside from the fact that it sounded like our favorite character in Superbad. I said they do some homework about this circle back to it turns out app love and make software tools for mobile app developers and the stock recently came public in mid April, that feelin with the thought price hit 80 bucks and then taking the 65 at the close on the first day of trading. Within a month Apple then had actually tumbled below 50 bucks. However, in the last six weeks, the markets gotten a lot more friendly toward high growth tech stocks and app Levin's rebounded to $81 and change having done some more homework. I think this company's actually got a lot going for it. But it's not simple. This is not like the iconic low effort stocks I recommended last night remember the fours the cost goes, the ones that are easier to follow because you already know how they make the money. App Levin is more of a high maintenance stock, he can do some research if you want to understand this one. When you've done the homework though, I think it is a my reasoning. First you need to get your head around what these guys actually do. App loving gets it start got it start as a marketing software company that helps mobile app developers bring in new users. And we all know if you got an app you want more users then in 2018 applovin started a new business. Rather than just licensing software to other developers, the company began to create its own portfolio of apps, mostly games, where they can use their tools to make more money. At this point app Levin has more than 200 of its own apps couldn't seven the most popular mobile games in the world project make over wordscapes, clockmaker and bingo story among many others. All told these guys now 40 million daily active users.

13:45
Finally app Levin's also got a host of technology tools beyond their original marketing software, they got a monetization platform that helps app developer squeeze more money out of the customers, they've got a machine learning platform that feeds off the data being generated by their own apps. Last but not least, app Levin recently acquired a company called adjust, which is a service that helps mobile advertisers track the effectiveness of their marketing campaigns. The great thing about app love is that nearly every part of this business reinforces the other parts of the business. The analytics and machine learning platforms make their marketing and monetization software better. Those terrific software tools that allow the company to squeeze more money out of its own mobile apps. Those company own app generate massive amounts of data, which is fed into the machine learning platform to make it more effective. Management talks about how they have the strategic flywheel. And really I gotta tell you, unlike most companies that claim to have a flywheel effect, then how many times have the platform's got a flywheel on track? It's an ecosystem. No, these guys actually have it. They're not just blowing smoke. In recent years app Levin has bought a bunch of mobile games as part of an effort to expand the company's own app side of the business. On average, when they buy game they can keep over 100% revenue growth in the first year of ownership. Their platform is so effective that is practically plug and play When I read about this as that I got to develop an app just handed over then to make it great. Put it all together, this is perfect play on our rapidly growing segment of the economy. Now we know app Levin's business is good because the company keeps putting up magnificent numbers from 2018 through 2020, they had a 73% compound annual revenue growth. Even better that growth rate is now accelerating appointments forecasting more than 80% revenue growth for 2021. When the company reports first quarter results last but the numbers are even better. They were talking 132% revenue growth, including 89% organic growth, any way you slice it, that's just plain phenomenal. Their third party software business credit 90% plus clip thanks important to the strength of their machine learning platform. Remember though Apple often has its own portfolio of mobile apps, and they use all the company's software tools. But when one division sells something to another division, a this is a difficult accounting issue. They're not allowed to report that is revenue. So app Levin created its own metric called Total software transaction value. Basically, their own internal studios were standalone businesses in the software tools business would have had 155% sales growth. Fair, I don't know another way to look at it. That said the bulk of that blog is revenue now comes from its company owned apps, this division saw 141% revenue growth in the first quarter. Remember, these are mobile games, and app Levin's now making a fortune squeezing money out of its player base. And not only does this company have rapid revenue growth, it's also pretty much it pretty much profitable. And the first coordinate was $10 million. But when you look at the earnings before interest, taxes, depreciation amortization, it came in at $131 million, up 110% year over year, we don't see a lot of companies like this on our show. Now, when we're dealing with fast growing software stocks, you rarely see something that has both triple digit sales growth. And it's just a hair's breadth away from turning a profit. That is the holy grail in this business. If applovin had come public a year ago, money managers would have been falling all over themselves to own this stock. But But since the IPO came this April with fast growing software stocks were very much out of favor, the deal blew up in your face. And that's why you can get the stock up only a buck from its IPO price. Even though its first quarter out the gate was spectacular. Alright, so what's missing? What am I saying? What am I not saying here that makes it so it's not both conflicts? It's funneling. There are some concerns. applovin is important a gaming company and remember the gaming stocks have been having a very tough time lately, because they're viewed as COVID place, but I'm not worried. Crucially, app Levin makes mobile games, meaning you can play them anywhere, not just when you're stuck at home on the couch. If anything, you're more likely to play mobile games when you're out of the house. The other issue Okay, remember, Apple rolled out these new privacy features make it harder for mobile apps to advertise. However, it looks like this isn't hitting app loving as hard as we might have expected. I think the apple related negativity is baked in the stock babies give me why you get bargainer. So what do you do? Okay, right now it's at 81 app love is trading at nine times that shares I'm not earning sales Okay, Bear Bear with me No, put that perspective. Let's set up a couple other fair scoring getting me software in place Roblox unity. Roblox is at 16 times next year sales even though it has a similar growth forecast. Udemy trades at 24 times next year sales growth and it's got a it's kind of lower growth forecast. well above is not exactly cheap. The stock is a bargain compared to those peers. My one real concern with this one is that the IPO was what I call a sliver deal. They only offered a small chunk of stock which means it's likely to get hammered when the block couple next insider selling gradually expires over the next four months but gradually, I think that can give you a chance to buy more applovin into weakness if you're willing to be patient. So let me give you the bottom line j in Florida. I got to give you the highest honor you got horse sense I think Apple Ivan's got a great business in the stock is worth buying. Yes speculative, but it's worth buying. Could be a bumpy ride. Please leave some room to add your positional weakness, but app loving. I'm loving.

18:53
Snap to it. Kramer he checks out two very different companies, but only one is on track to make you money. Find out which next. CNBC is workforce Executive Council is a premier group of C suite Human Resources executives from leading companies across the country. It offers a members only portal and chat plus exclusive industry content. With access to breaking news calls and digital networking experiences. The network and resources HR leaders need now applied to the workforce Executive Council at CNBC councils' dot com slash WEC.

19:43
If it suddenly feels a lot more friendly to secular growth stocks, could it be time to snap up some snap? In the last month and a half the power of Snapchat is as seen in stock weed down hard while it's may lows. And this is exactly the kind of stock that works in an environment where money managers are are starting to worry about a slowing economy because the Fed has to remember whether or not the Fed tightened sooner than expected snaps gonna put up some excellent numbers this same ones no matter what the Fed does. The only issue here is that the wall street fashion show and what it dictates she back in February fast growing internet stocks like snap went out of style. Big institutions reacted to the economy by dumping secular growth stories and swapping into the boom and bust cyclicals now we're witnessing another rotation in the opposite direction one that's going unnoticed for weeks both but not anymore. Now everybody's talking about. In other words, staffs got great numbers, but the market's appreciation for those numbers tends to be very based on factors that are out of the company's control. So if you want to get a solid read on this stuff on emotional read yet look beyond the fundamentals. That's why tonight we're going off the charts with the help of Tim Collins, he's a brain technician. It's also my colleague at real money calm where I blog every day, because Tim thinks snap could be on the verge of a big break. Yep, his reasoning. Check out the daily chart. At first glance calls love that snap recently bounced off its 50 day moving average okay in the 50 days the blue. All right, that's a short term measure of the stock's trajectory. Throw in the fact that it's now broken out above last week's highs and you do have a powerful combination but as Collins pull back, it will back at you He also spotted some Yes, he spotted the classic in verse where some people say it's reversed but inverse head and shoulders pattern male second person hanging upside down. This is one of the most reliably bush formations in the entire book even if it sounds like what happens when you're running low on shampoo so you leave that bottle upside down. Granted This is not a picture perfect inverse head and shoulders the right shoulder doesn't have the kind of like a quasi mode of feel to it right? See that? It's a it's a French book. Say foreigners 60 pages is not a bad read. It's clear to Collins at the neckline is a 65 once the stock breaks out over the neckline as it did today the pattern is complete see it broke out above the neckline that's really important. And now the stock is ready to roar. So it matters that snaps now cross through that level. This little green dot right there is the key okay. Beyond that even though stock stocks had a big move from the May lows and I know a lot of people feel like well, I missed it. But wait a second, Carl says is still a long way from being overextended. And I want you to take a look at the stochastic oscillator the false gaskets that are down at the bottom. Now this is a powerful tool that tells you when a securities getting overbought or oversold overbought means that the stocks come up too far too fast to the point where the buyers are interested and you're likely to get hit with a pullback. But at the moment the full stochastics are right smack in the middle meaning snap could have a lot more room to run. See no man's land. Now after monster move in late May the stock spent the last few weeks consolidating its gains were really good by trading sideways and that allowed the oscillator to cool off. Even better, Collins points out that we're seeing a bullish crossover here that's the green circle where the black line crosses above the red one, and that's another reliably positive pattern. Put it all together and Collins thinks that the chart is telling you to buy snap on any breakout a bit a bit. This got momentum, and it currently very much favors the bulls. This is beautiful. Given that the stock just broke out above the 64 $60 level today. He recommends snapping some up right here right now Morrow morning. Basically the inverse head and shoulders pattern he thinks is going to at he'd be happy though with new automized 75. When you zoom out to look at snaps longer term weekly chart, it's even more enticingly daily when rather than an inverse head and shoulders in the weekly chart. we're now seeing a rounding dubbio Yes, as far as Collins concerned, he thinks that even more bullish now I happen to like the head and shoulders Moore's way but I gotta admit this beautiful two w pattern same takeaway snap is broken out above 65 smooth sailing to 80 which is not YOLO to the moon but we'll do it. Meanwhile, the 10 week and 21 week simple moving averages are currently right on top of each other members tend to swim in these two levels have been so good for snap in the past. You can see the stock regularly breaks out or breaks down if you're testing them. What's happening. Well snap breaks down below these crucial moving average levels at the 68 moving average at the 60 level. Okay, yellow flag for Collins below 60 he lose interest until this thing false the mid 50s that said he thinks the upside scenario is far more likely in the downside scenario. And you understand me That sounds like dishes think okay. That's why we add we always meld the technicals with the fundamentals when they have money. Again, you need to understand that this is this book is all about the wall street fashion show and that I use it's a shorthand term I use on Mad Money and it's for what I'm willing to pay for the same sales or earnings as that parameter changes based on bonds or the Fed or whims or all three snapshot the lights out when reported in late April delivering a spectacular quarter at triggered a wave of price target boost from analysts The stock barely budged in response quickly gave back these bigger gains because money managers had lost their taste for fast growing internet stocks. Back then they were loving in loving the industrials as most acts. They're roaring. So the big boys had no interest in social media companies say 66% revenue growth. Now though the hedge funds are worried about a coolie economy, the Federal Reserve officials making noises about possibly raising interest rates are really expected to bring whatever companies like snap on hostage to the border economy. So suddenly that 66% revenue growth, same revenue growth that they had before saying, now it's looking more attractive. That's the whim while this is is good news rapidly growing social media stocks like snap. Okay, let's look at the other side. Bad news for the smokestack cyclical stocks that make money in a booming economy. I want you to take a look at CSS now. This is one of my favorite railroads. Great company. Right now the stock looks like it could be ready to derail. So a few months ago, it was all now his

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boss his ex is pulled back from 104. And it's the highs to blow 95. Today, the stocks still up nearly 40% versus where it was just 12 months ago, cause points out that the late may break down took out a key support level. All right, an uptrend that had carried the bulls for a year. In addition to falling through the four sports ESX has also broken down below its 10 week and its 21 week moving average is very negative. These were strong floors underneath the stock the whole way. But now now they become ceilings of resistance. Now series six could be making a bullish flag pattern here where a stock consolidates its gains in the shape of a flag before taking off again, that pattern doesn't work unless stock can break out above $100 or five bucks from here, considering the recent action constants TSX. Go to C 9040s 100. His advice? Get don't want to own this. better sit on the sidelines, wait to see what which way it moves. Now he actually likes to break down below 85 or breakout above 100. But not here. This is no man Same for him. So did business suddenly get worse for CSS? No, no, no. This is the mirror image what happens snap? railroads are cyclical businesses badly print money. The economy's booming. So when people start talking about a slowdown, their stocks just get killed. Here's the bottom line. The charts as interpreted by Tim Collins suggested snaps got more Run, run and CSS could have more downside. And you know what? That's exactly what you should expect picture perfect from the rotation that's going on right now in this stock market. Claire's in Utah Clarence.

27:25
Louis Yeah, damn, we got Clarence. Hey, buddy, I appreciate the knowledge and the info you put out. Thank you very much. Thank you What's going on? I'm pretty new at it. But I taught Zynga A while back and they said they're gonna cross platform before they expected revenue growth. They closed down to 1027. Today, I paid 1070. I'm just wondering, should I hang on? Yes, you

27:52
should remember we don't care man money where stock came from. We care where it's going to and I think you have a winner here. And I just like that stock for a very long time. But I think you're okay. I need to go to Oh, I can't not enough time. Maybe we can have that person call tomorrow. All right. But tonight's Chartist thinks snap has more room to run and CSS could have more downside. I agree with snap. I'm not so sure about CSS as I like the rails, but that is a not great chart, which were made money. There's a battle brewing at box. I've got the exclusive with the CEO of fuse with Star board. That is it time to raise a glass of the wine spirits business. I'll tell you if it's worth considering as the summary opening kicks into high gear and all your calls rapid fire tonight's edition of the lightning round. So stay with Kramer.

28:47
What the heck is really happening at box the cloud based storage and digital collaboration platform that serves roughly two thirds of the Fortune 500. Last year box Fender off a challenge from the activist investors at starboard value. They handed over a few board seats to avoid a full on proxy fight. Then box proceeded to get an enormous boost because of its platform helps facilitate remote work. So the stock soared activists game plan, but earlier this year, we started hearing that star board might make a play for full control verse management gave in to the demands they either want new initiatives to drive revenue growth, or they want box to put itself up for sale. While we actually heard rumors of a sale a few months ago in April box announced a new agreement with another firm KKR which agreed to lead a $500 million investment in the company and got a board seat exchange management's using those the proceeds to buy back stock. The activist is starboard took this particular action as a declaration of war. So they launched a full on proxy proxy contest, writing public letters to express their displeasure and nominating for new directors for box's annual shareholders meeting next month. With the three directors they already have that would give them control of the board. Both sides have an interesting story to tell. That's why I want to hear from the CEO who's come on the show repeatedly says the company came public in 2015 and has always been straight with us. So let's check in with our Levine is the co founder and CEO of box to get a better sense of this crazy situation. issue. Let me welcome back to Mad Money. Hey, Jim. Good, dude. Good to be here. Thanks for having me. Okay, so I want to know what went wrong here, the stock has had a very big move, you had a good quarter, you're doing a lot of stuff. And a lot of different companies are very interesting. But somehow I know things went astray with starboard. Can you give me your view of how to get things back on track? Or how they went off to begin with?

30:28
Well, yeah, it's a it's a great question. And I probably can't represent you know, how things went off track, we've been executing our plan, that that we put out in the market now a couple of years ago, which was to drive greater operating margin and greater growth rates. And, in fact, in many cases, we've been actually upgrading those plans, especially on the bottom line, over the past four to six quarters. So we believe that we're executing a very effective strategy, we just guided up in our last quarterly earnings, both on our growth rate for this fiscal year, as well as our profitability targets. And we believe that we are building the most disruptive, and the leading platform in content management. So we're very happy with the plan, our board unanimously decided on this path forward as a company, as well as bring KKR in as a partner for the next stage of growth and, and profitability. And, you know, I think we, you know, fundamentally believe there's a significant amount of upside in our stock, and we are going to be focused 100% on driving shareholder value from here.

31:30
Okay, so let's talk about that KKR. financing, what, why did you have to do it, you had cash. And it also seems like I can understand why people could say, you know, what, that really is kind of like almost like a poison pill to block the sale. And it was unnecessary. And they pretty much bought a position, so to speak, because they didn't take it all down, they syndicated it out, why bother with them?

31:54
Well, we did a full strategic review process through the winter and in the early part of this calendar year, to really identify what did we believe would be the in the best interest of all shareholders to drive shareholder value going forward. And that was a very comprehensive review of multiple options that we could pursue as a company to drive shareholder value. As a result in in during that process. KKR emerged as being incredibly excited about the company. And as we spent more time with them, and learn what they can offer, both as a board partner, as well as you know, whether it's helping on the bottom line with their various operating groups, on driving, you know, continued growth, especially as we continue to do incremental and very prudent m&a, to to continue to expand our product efforts. As we continue to go international, we felt that we had a very strong long term partner that wanted to invest in the business, and be able to see significant stock appreciation that we believe all shareholders will benefit from. So you know, we think that the KKR endorsement is very helpful. Obviously, they only join boards and make investments where they believe there's significant upside and returns for shareholders. And then what we wanted to do is, again, as you noted, do our cash flow levels, we wanted to make sure that this also would benefit shareholders in the near term, by providing a buyback opportunity, if you wanted to monetize your investment in the near run. And so this kind of creates an opportunity where some investors that might be more short term oriented, would be able to sell their shares back to the company and and then if you are more long term oriented, you can ride the upside as we continue to scale to new levels

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as a company, it says you said because obviously Star Wars not going anywhere. And I was just it was disconcerting to read in their letter that they said, to date, the board has refused our attempts to work together. And we appear to be at an impasse, when at the same time, you have called the dialogue constructive in your last letter. So it'd be one. It's kind of he said, she said they they don't regard as constructive in you do I would rather see because I like to, like starboard? I like the idea. No, it says little, little cylinder. I'd like everybody to get along. I would love to see some sort of compromise. Is there anything you can do to make this work? Because I don't see anybody here is a bad die, so to speak. Yeah.

34:02
Well, and and I think, you know, from our relationship over the years, we are very collaborative in nature, especially with shareholders. In fact, in in starboard zone proxy filing, you can see dozens and dozens of interactions that we've had with with starboard over the past couple of years. So we have tried to spend an incredible amount of time ensuring that starboard understands our strategy, that we're hearing their feedback that we're taking their perspective into account. In fact, last year, as part of a settlement that we that we had with them, we added two board members that they approved as a part of that settlement. So we felt like they've helped, you know, continue to evolve the board's governance and independence over time, but it looks like maybe they didn't ultimately agree with with some of the board's approaches, and that's their prerogative. But we fundamentally as a board, believe that we have the right path forward. You've seen it in our shareholder return returns, were one of the fastest growing stocks of this year, and about 40% year to date. So we believe that the current path that we're on is the right path. And, you know, we have seven new board members just in the past couple of years. So we don't believe that further board change is warranted. And we believe that there's again, a significant amount of upside left in the business based on the plan that we're executing. So we're incredibly excited about the path forward. I've talked, I've talked with many, many shareholders, that are really excited about box's path forward. And and we are, we're very focused on executing that plan.

35:24
Let me ask one last question. I understand you to spend 20% of your revenue each year on stock based compensation, you have only had non gap profitability how some could say that you're growing only around 10% that last in the last year. So that in that sense, in classic profitability, and payment, you are not up to snuff versus other companies?

35:48
Well, I would say that actually, if you look at our peer group in the SAS ecosystem, especially companies that are reinvesting for growth, without which obviously is the real kind of prize in one of these markets, when you're going after a $50 billion market, is you want to be driving growth, with strong economics on the bottom line. And, and we believe we're within kind of a normal pure set when it looks when you look at stock based compensation. And obviously, we've been driving, you know, significant improvements on obviously, the non GAAP operating margin improvements, which are really driven by our efficiency, and a lot of the investments we've been making in driving just again, very rigorous execution. So again, when we talk to our shareholders, and if you look at the analysts that have put out notes, there's a lot of conviction on the path forward as a company, and we believe that you know, you can imagine Jim and I know you know that the KKR folks very well you can imagine the kind of work that they did before and I was little before leading an investment in the company and joining our board around the upside potential as a as a business and we've seen similar investments, just just yesterday was Silver Lake going into Splunk last year with Bain and Nutanix so it's a pretty common pattern to have a long term partner that wants to join the board invest and make sure that they are driving you know, significant shareholder returns over the long run and that's what KKR did with BOC so

37:00
and to be fair when I saw it I did say on air that I thought it was good for the company so I can't take that back because I that was my view. I was my view when I saw it with Splunk yesterday was silver like I said that that's good for dog is good for you. Good for the company. So I'm so glad you came on Aaron levie ROI straight shooter with us co founder and CEO of box great to see you again sir. Thanks for I really appreciate it. You got to make up your minds and stocks had a big run but I understand also, all the things that starports raised in Star Wars has a good record in making money for you. The shareholders may have monies back. Stick around man make a suggestion. I would stay with

37:37
the lightning round is coming up next. It is time and then the lighting is over. Are you ready? ski daddy gets the lighter. Okay, buddy. Let's go to Mike in Virginia Mike. Do you miss him? Though man have chosen the house and I got ski daddy. My mind was my new dog and Vidia. He was ready ski daddy 330 this morning. Let's go to work. What's

38:13
up? Sounds like you got more energies in the bed. You bet. Hey, in yesterday's Wall Street Journal, first Solar's CEO Mark Whitmer. That's ticker symbol fslr is highly confident that Washington will have his company back regarding the upcoming infrastructure bill

38:34
we know that yes, I get I had my Apple Watch and literally a second ago they ran in New York Times story about how the the President is going to back is going to not support China for being dropping some Gods some solar panels here because of religious freedom so I think you're in great shape by that stop center move on. Good and john in New Jersey, john.

38:58
How you doing well what's going on? capital world Listen, I'm down and get some blueberries for Mentos farm there Don't forget the

39:08
the raspberry certain paper are almost as he's good got. These blueberries are awesome. What do you think about j A n for my birthday? I think naked and then k d I'm going to run naked through Hamilton. You know I might take that off. Let's take that idea off the table. We'll keep it in our heads but we'll take it off the table. Again it's a gaming Yeah, there's so many of these gambling companies right now. I don't want to be in that. There's just too many of them. Let's go to Charles in Mississippi Charles.

39:46
Dell Kramer big bojo from Mississippi. I like Mississippi is beautiful. What's going on? Jim you recommended a stock about a year ago. EP are about him. Saab 95 and it has just taken off. What do you think I should do that sell Oh,

40:05
nice. She's a big company. Well, I gotta I gotta be true to myself here. I think you got to take a little off the dead one and give me a good shake. That's a nice game take your cost basis out and then live the play again. To add Time for one more Yes, I can go ahead and darious in Florida darious. Jim, thank you for having me. I am thrilled that you're on what's going on? You know, I'd like to say thank you man, we love what you're doing. My ticker is spim ticker. We likes them. We like what they're doing with the environment like they're doing with energy I didn't expect them to take off as well as it did. But the market is suddenly fall in love is kind of stocky yet and I think you're in good shape stem. Let's go to Sandy in Delaware Sandy, for growth, is it too late to buy PPG right now that is the exact opposite. I mean, we have a lot to say about a great company PPG but at this very moment, it is not going to do as well as the higher growth stocks. It just won't. And that legem is the inclusion of the lightning round.

41:16
lightning round is sponsored by TD Ameritrade. Coming up with a pandemic recovery be served bottled on draft. Find out why the next reopening play might be found in your local pub. Take control of your financial future with a new Mad money.cnbc.com Craig Mullins exclusive CEO interviews Full Episodes analysis, even your own soundboard plus special access to Mad Money 101 with rules and techniques to break down the market for all investors the red flag that makes them drop the stock immediately. It's everything you need right when you need it, the new Mad money.cnbc.com

42:13
sometimes stock picking can be as easy as reading the earnings release from a major player in a particular industry. And then extrapolating what that means to its peers. Every morning I get up unnaturally early loan for the sun and one of the benefits that you often see information from overseas that simply gets overlooked here in the country. For example, this morning I read the release from a gigantic liquor company Pernod Ricard they were saying that quote, The pace of the recovery is proving stronger than expected and quote, this is the company that makes high end liquor like Absolut Vodka, Chivas Regal Glenlivet, scotch Not to mention Jameson Irish whiskey, and a host of different wines, Pernod Ricard also says the drinking outside the home is accelerating as COVID restrictions get rolled back that means numbers are going higher. The run Inferno record has already happened. That's what happens when you have a pre announcement like that. But there could still be paying action for other stocks. So you got to think what what looks a little light not exactly because these people all these companies are unique but what looks a little like Pernod Ricard will happen STC constellation brands, it's got 2.5 billion in high end spiritual just like porno, but 6 billion in beer, Corona middle Pacific. And I gotta tell you, this is where it gets interesting. Even better constellation as a catalyst. They report next week, so we don't have to wait long for something good. Now to take an anecdotal turn for a second. I own a Mexican Tavern bar San Miguel and Cal gardens Brooklyn, and we sell a ton of constellations product from causton Gilbert's kilos, our number one seller to modellen a row and we have Pacifica one tap and of course, Corona. I see the sales figures year over year actually same day or every night. They are astounding. And here I'm talking about 2021 over 2019 because the COVID restrictions made us shut down in 2020. I talked to a number of bar owners in a similar situation as I keep my pulse on this industry. still very new york centric but I keep my pulse on it. And I have a good read on the rest of the country to sales are incredibly strongly now for beer much stronger than anyone expected. People really want to go out and get plastered. Meanwhile, we know the constellation as much as Corona hard seltzer and there are already signs that it's a big head building once said so much the CEO when he came on that money as far as its spirits go Okay, it's fed Kovacic, not absolute. It's high whiskey whiskey, high West whiskies it's not when you take a look into Jamison, but it's got premium wines that look enough like Pernod Ricard, actually better than Pernod Ricard that I think the similarities are too great to ignore. Of course, one of the big knocks against constellation is they paid too much for their stake in canopy growth. That's their foray into the cannabis business. Well, that's probably true. They, they did pay too much. This is something that's already baked into the stock price. I look at it another way though. I think this is the last quarter before people start buzzing about pot legalization on the ballot. I think it'd be very big in the fall bunch states and cities hold elections and the White House is The auger against turns out legalization has come extremely popular in this country so I bet this company will finally get credit for its big investment in canopy meanwhile constellations huge cash generator bit of a buy back stock and pay down that same time it's been prudent the whole way. When the spending on canopy grew out of control they bit the board part of the CEO and replaced them constellations very tough, very knowledgeable Chief Financial Officer. Right now the stock suddenly up 2% for the year, it's down 20 points from its high. Of course there are no sure things in this business. We can't just say, oh, what's good for the goose soprano record is is good for the gander of constellation brands. But there are a lot of similarities here. The one big difference is the constellation is huge beer business. I don't mind because I think that business is booming. I'd like to say there's always a market summer I probably try to find it just for you right here on Mad Money. I'm Jim Cramer See you tomorrow. The news with Shepard Smith starts now.