MAD MONEY 文字起こし 14JUN21 American Express CEO, Solana CEO & Off The Charts

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Mad Money w/ Jim Cramer - American Express CEO, Solana CEO & Off The Charts on Stitcher

0:47
Cramer, welcome to Mad Money. Welcome to Kramer. Other people make friends. I'm just trying to make you some money. My job is not just entertain you but to educate and teach you so call me at one 800 743 CNBC or tweet me at Jim Cramer, clean up in Aisle seven.

1:04
When you do that in the supermarket, it can be one of two things either you have to brace yourself for the mess, because you need something from mile seven or it means nothing because you're not in that aisle and you have no reason to go there. That's this stock market in a nutshell. On a day when the Dow lost 86 points. That's the advanced point when I present that as actually rally point seven 4% with the s&p and NASDAQ setting new record high closes, we've got a series of files, some of which badly need cleanup, namely the industrials and financials. But other aisles still have high demand. And it's tough to keep the merchandise on the shelves. Here's the problem. Most people insist on seeing the stock market as a totality rather than a market of 1000s of different stocks. It's like the supermarket see there's the freezer aisle, it's not the same as the fresh produce aisle, right? They're different. But you often hear people treating them like an undifferentiated mass, when really rich money matches Come on our air. Their funds are so big that sometimes they can only be meaningfully trading the entire market, the s&p, they'd overwhelm us individual stocks if they tried to take a sizable position. So it's easier for them to flit in and out of the s&p 500 futures,

2:12
which contained every you don't have to do that, though, right, you can just avoid the message and head straight for the clean aisles that are staying strong. If you get a clean up on aisle seven situation that takes down the entire market. Think of it as a buying opportunity for the other better aisles or entirely. If you really want to own one of those messed up socks. Maybe they're too low and you can do it. So what's the difference between a good and a bad you get a crowd stuffing their carts with anything that moves in the senior and junior growth stocks right now. That's just the economy could be cooling down or the Federal Reserve might be about to slam on the brakes to tamp down on inflation.

2:56
Too many right kicks for the shop. Once the Fed starts a tightening cycle money managers start to swap out the boom and bust stocks and they swap into the secular growth stocks.

3:09
That playbook was a huge driver of today's action as swing traders are trying to get ahead of that cost what they're doing. They're selling these now because they think you're going to sell them later. Then they're the aisles for the drawers are smashed and there's liquid all over the floor and boy, that was the industrials today. Where the glassware is flying all over the place. There aren't enough mops to clean up everything. Oh boy, that was the bank aisle where people were slipping and falling through JP Morgan, jamie diamond talked about a 38% decline in trading revenue. Ouch. That's much lower than expected. Of course, once one jar gets knocked over tend to take down everything else in the aisle, which is why both goldman sachs and bank of america got hammered to even as the waiter ladder told a very positive story this morning on Squawk Box. I don't know if you caught it really good. That a week trading number from JPMorgan is a serious mess. It's a real problem. So you'd have to expect some analysts gonna cut numbers and maybe even downgrade the bank stocks tomorrow. It's wait can't get ahead of these things too quickly. But how about the other aisles? See, for the most part, nothing really newsworthy happened. That's what makes some of these moves so disconcerting to people. For example, no one said boo about caterpillar. Get it stopped fell for the fourth straight day. Now some might say that's because Biden's infrastructure bill is stalled. Cats now down nearly 30 points from the ties. But I think that misses the real driver to me cats following because there's a perception that the Federal Reserve will have to change his posture at Wednesday's meeting. Now I think that's wrong, but a lot of people are assuming j pal have no choice but to tighten up the last week's red Hawk consumer price index number. That's why the Dow Industrials really got hit today, but not the NASDAQ. The Dow is full of stocks that would be crushed it pal gives the inflation niece's what they want.

4:55
That's this group. Okay. This group actually does well on that but I'm really

5:00
focus from these two these people need these people need to listen where power actually says, rather than presuming, whoa, stick to the feds old playbook. See, I really got to make this point. See he's past different. He's thrown that playbook out the window. I think pals very committed to an easy course, even if you believe inflation is out of control, he wants to keep rates low, so that the unemployed and the disenfranchised, get decent jobs, if the cost of a stronger labor market is above average inflation. So be it whether you agree with PAL or not. He's been very upfront that this is the plan. So I'm willing to wade into the beaten down industrial aisles, start picking up bargains tomorrow of the mess has still yet be cleared this group, not this group. But how about the aisles that are bustling? Alright, what's there for you? If you if you like me, you believe that inflation is running its course and the Fed knows what to do? Well, okay, so let me introduce you to these two terms. These are really what's driving a lot of stock market action right now. And a lot of people don't know them because they've gone out of style. I want to bring them back, right. Right now there are senior row stocks and junior growth stocks. As much as I love that term for ag that is my acronym for Facebook, Amazon, apple, Netflix and Google. I think we need to broaden out chrome senior growth stocks because there's so many other senior growth stocks that are now being put in the court. For example, we had a big move in Adobe ahead of its earnings on Thursday that counts this stock which had lost its lift not that long ago, actually hit its all time high today. It better be Google reports. Microsoft force Nvidia, right. And after Warren Dorsey Salesforce has started to run to when the banks plummet the money flows into the financial technology plays banking late so to speak. So that means square and pay palsey panic by many FinTech should have its own aisle. Then there are the junior growth stocks smaller and faster growing than their senior components. Now there's, for instance, these by these these types of roaring, there's Twilio, the fantastic cumulus app developers push messages to the customers. Among other things. There's Roku, which is the cord cutting kingpin CrowdStrike we just had them on right, they stopped crypto clap those at TV online marketplace for all sorts of handcrafted goodness, based in Brooklyn, and DocuSign, which has become the de facto way to close deals over the internet even after the pandemic. Junior growth stocks are beloved by Cathy wood of Ark invest, who had an incredible year in 2020, but was struggling in 2021. Until recently, often she seems to keep these stocks all by herself. Now, I am not against Fang in France. I've been a huge supporter of the senior growth stocks, especially Amazon. But I'm getting ugly that it's time to examine the stocks the godforsaken oil, where people keep slipping on copper and lumber and Iraq has now those stocks going down. If you think as I do, that the Fed will keep the fires going. You want to own a steel stock or heavy machinery player Chemical Company, even clips it was down to dollars today could go down under 20. You got to probably buy it then if Caterpillar comes to 200. I mean, come on. Let's buy that one. Dow Chemical good yield. I even Sanctus energy stocks because many of these companies have changed their suboptimal ways Chevron pioneer, even Exxon, these are the kinds of companies that thrive when economies around the world are growing. And that's exactly what I expect. But the bottom line until we see the feds eyes on end, it's of course the whites of their eyes on Wednesday. You can expect the action to look like today, where we had lots of traffic in the junior and senior growth aisles with shoppers fleeing from the messy industrial and yes, bank stock aisles. Let's go to Tina in Illinois, Tina.

8:49
Thank you for choosing this over law or journalism. Jim.

8:55
You're very kind. And you know what, I don't regret it one bit work hard here and my love My team so much go What's going on? Yeah, you guys are awesome. I bought Bumble back in February. I liked the women first narrative Bumble, BFF and Bumble biz, one that two of my adult children have chosen recently as a way to meet people. Even with today's bump, I'm down 33%. I know you recently said it's not a sack you were down. would you suggest I buy hold or sell. I like the stock. I like the company very much. The stock is a tough stock to own right now. But the company is great. Whitney Wolfe hurt you Come on. And we will talk together and you will see why I think that well actually you just told me in your anecdotal, I think empirically what you found is what everybody's finding around the world and that stocks should be bought not so let's go to john in Florida, john.

9:52
Hey, Jim, how are you? I am good, how are you? Good. So it's a pleasure to be talking with you. So get the question.

10:00
Right around April, May last year, I bought Clorox because I think it was a pandemic and everybody trying to be clean. It was a perfectly good and reasonable stock to buy and I paid close to $210 a share. Now, I can't find it on the supermarket store shelves. I hear things about supply chain, the stock is at $178. I don't know what I should do. Should I buy it? buy more of it? Should I sell it or sit tight? It's kind of in a no man's land. Look, I think Linda Randalls doing a great job. But here's the problem. The stock only yields 2.66. Typically, I like that stock went yields three, it's down 13% for the year, that is not going to endear people who want to have stocks that are actually doing well. I think it's a great company. I think you just have to hold it until it hits 3% and then buy some work. Alright, until we hear from the Fed Wednesday, expect to see lots of shopping in the junior and senior growth aisles of the supermarket. And shoppers continuing to abandon these two very messy piles. Oh man, man, it's right. You've heard the June swoon. But it's the month whines dad and we've hit into July. How should you approach the averages? I'm going off the charts right now it's gonna blow your way. Then I'm talking the state of small business with the CEO of American Express in a special interview for say, Miguel, and after a big day for Bitcoin. I'm sitting down with a crypto firm that claims his transactions are both faster and cheaper than either Bitcoin or aetherium. could present real competition. You're not gonna want to miss that. So stay with Kramer.

11:36
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12:03
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12:23
Yeah, we're kind of a weird moment here. With the Dow Jones pulling back from its highs. It's the NASDAQ doing well. I mean, right now everyone's laser focused on the Wednesday fed meeting, right? Lots of money managers who worried about inflation except the bond traders who are usually the first ones to freak out and if they're okay, okay.

12:42
You know, this morning, but I think we do need to take things, let's say one week at a time, rather than getting dragged into the inflation debate or the bogus growth versus value false dichotomy. I want to help you navigate your way through this period by looking for patterns, patterns, so that you know what to watch for. And that's why it's not recording off the charts again with the help of Larry waves. Look, this guy's a mythical figure in the world of technical analysis, everybody used ever study tech. Technical Analysis always starts with Williams. He's been trading Stocks, Futures and commodities since before I learned how to drive. He's also written more than a dozen books and created a host of indicators that we use all the time here every every trader does most important. No, I mean, this guy's been on a roll. Yeah, I can't believe last week Larry's chart work told him to pound the table on Amazon. So we did just that. And since then the stocks jumped nearly 200 points. But especially it's finding seasonal patterns cycles that tend to repeat themselves here appear in this breed told us to buy the retailers going to the Easter holiday and it played out almost perfectly. Last year use a terrific Thanksgiving trade and a powerful Fourth of July trade. And of course last April when everyone thought the world was ending. We used to be one of the poorest country and cause I have ever seen in my entire career. He predicted the economy would start rebounding from COVID by mid May which meant it was time to buy buy buy. I know I was a little skeptical. Many other you were putting out a perfectly so tonight. Tonight we're going back to the well because waves as a new pattern he wants to highlight. Last year we talked about that for the July trade how you can usually make good money buying the s&p 500 shortly for the holiday and then selling a few days later, Wim still likes the Fourth of July story, but before before then there's usually a late June swoon. Think of it as the pre Fourth of July play. And that's what we're going to talk about tonight. Williams has been at this since the 1960s. And he's found that stocks tend to get hit near the end of June, ranging from a modest dip to a substantial dive. And that's why he recommend selling the s&p 500 towards the end of the month, and then maybe buying it back a few sessions later. You don't have to short the market. But if you're nimble enough to trade this might be a good moment to try to sidestep some pain. So when would you sell or take a look at what I'm about to show is almost science fiction. Take a look at this chart which shows how you would have done historically if

15:00
He sold the s&p on each trading day in the second half of June, assuming you closed out the trade four days later, well we'll use finds is that if you sell in the last week of June, you typically lose money. The second last week is when you ideally want to ring the register. Or again, if you're so inclined, you can go short. In particular, you would have seen the best performance sell in the s&p when the eighth or ninth last trading day of the month in in 2021. Write this down, okay? It means selling either this Friday, or next Monday, the 18th or the 21st. You got those dates, Friday or Monday, I need you to write that down because I think it's going to happen. If that's the sweet spot to sell. How long before you swap back in or check out this table? Looking at the last 22 years if you sold the s&p on the eighth last trading day of June, then bought it back on the first profitable opening. If the three days you made money, how often 1650 How about 100% of the time. However, if you waited a little longer and sold on the first profitable opening, after five days, you actually made the most money even if it only worked 21 out of 22 times. The only year that didn't work was in 2011. Come on, that was a crazy roller coaster market. They kept being slapped around by European financial woes and the totally manmade us debt ceiling crisis. We don't have anything like those two, so I'm not that worried. I mean 2222 a bit. If you want to see this table in chart form, it looks like this.

16:24
Even if you're not nimble enough to dump the s&p and then get back in a few days later, you need to be aware of this pattern. Why? Because if history is any guide next week's going to be ugly. Based on waves his analysis shorting the market next week has been a good strategy for at least the last 22 years. So if the s&p starts getting crushed, I want you to remember that you're up against a powerful seasonal trend. You want to start bottom fishing. In other words, don't read too much into it. Don't try to extrapolate Don't try to find a deeper fundamental reasons to justify the weakness. You know what, why did you think of it as the weather? Remember, this seasonal pullback is usually followed by a nice rally right after the right around the Fourth of July, something Williams told us about last year. If you want the s&p 500 a couple of days before the July 4 holiday and then sold it into the first up opening and a couple days later, you would have made money 21 of the last 22 years. Before that jump though you need to get through the late June swoon. If all this sounds like astrology, sell the s&p right after the summer solstice point B I get it. But Weems is not an astrologer people his methodologies is empirical he gets he actually tried to run the numbers on astrology during computer simulations of the country on the conjunctions and the equinoxes and the solstices, but he just couldn't find anything that worked. late June swoon has nothing to do with your star sign and everything to do with a long established 22 year historical pattern. Well, I don't know why it works. I absolutely certainly would not bet against it. Here's the bottom line. The charts is interpreted by Larry Williams suggests that the s&p 500 could get hit next week. And if you're nimble trader, you might want to sell the s&p at the opening next Monday, then swap back in you're the end of the week. Even if you're not that nimble Watch out for the weakness because it could create a nice buying opportunity. Let's go to James in Connecticut James.

18:13
Hey, Jim, first time caller here from Griswold Connecticut. I want to first thank you for all the great content that you provide for free and I You saved me a lot of hassle.

18:24
Oh, that's nice. You got that ESPN guys up there feel the same way at Bristol worth it? How can I help?

18:30
So I'm looking into Dave and Busters. I haven't opened up position yet. I caught my eye last week with their strong earnings report.

18:39
It seems like they're building on the reopening momentum. They showed

18:43
they started the quarter of 107 stores open they now have 138 open and Brian Jenkins seems pretty confident moving forward.

18:54
First of all, I totally agree about Brian Jenkins. Second, I agree that the company's doing well. But third, here's where I'm gonna disagree with you. When I see a quarter like that and the stock didn't go up and the NASDAQ's been on fire like it is I question whether you shouldn't wait for next week at a lower time. I don't like how that stock is acting in relation to the quarter itself. Jim in New York, Jim.

19:18
Alright, Jimmy chill. How are you today? Chill man is so nice on on Twitter. I don't know if you guys have noticed that lately. I'm completely Joe, what's up?

19:29
Thanks for all you do. Thank you. Thank you. Back in May, you gave us a couple of suggestions for a trade starting around Memorial Day. I guess I guess based on a seven year chart, I think if you're if I remember correctly, correct and

19:46
you know, and then holding them for a period of time one of the stocks I purchased was c wh purchases around 44 to since

19:56
tanked a little and I had to stop out at 3988 now

20:00
With every one wanting to venture outdoors, you know since pandemic is it seems that there would be a pent up demand for camping supplies or the on the margin squeeze due to higher costs. I think it's the markets I also think the stock had a big move off the bottom. I do think that Thor which is only up 16% now and had a great quarter was down five today makes more sense for what to buy. And thank you for the kind words I like th Bo Alright, the s&p could hit a rough patch next week. If you're not nimble enough to swap in and out of the index. I actually recommend using the weaknesses they talked about at the top of the show you some buying some very high quality stocks which were Mad Money had I'm hitting bar San Miguel with the CEO of a reference press to find out how the company is supporting small businesses like that one then I'm talking the new kid on the block walk chain in his go miss my sit down with a co host so wanna find out how it's giving Bitcoin aetherium a run for the money and forget about man why the pushers of meme stocks are sticking it to themselves. So stay with Kramer.

21:11
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21:47
We need to stay on top of the recovery. You know what that means. It means following the money by which I mean the payment companies. And when it comes to payments. It really doesn't get much better than American Express. They had tremendous insight into what's happening with consumers and small businesses. Earlier today. We got a chance to venture out of the studio for a fully vaccinated sit down with Steve xquery, the chairman CEO of American Express at bar San Miguel, my small plate Mexican restaurant in Carroll gardens, Brooklyn. Take a look.

22:16
Steve, you have the pulse that and then anyone in this country. I'm starting to get the feel that there's a bit of a fabulous roaring 20s going on as the pandemic ends. Yeah. Well, first, the pleasure to be here with you today. You know, you're in your restaurant, which has just recently reopened. Yes. But yeah. So when you look at the US economy right now, I think it's really starting to come back. I mean, you've got vaccinations where everybody's, you know, more and more people getting vaccinated. We had tremendous support from the government from a PPP perspective, stimulus, credit numbers or not like anybody thought they were going to be when I look at my credit numbers, my delinquency numbers, they're lower than they've been in years. And you know, then personal savings, personal savings are doubled. And so what does that mean? Well, that means people have money to spend, they have discretionary money to spend and what consumers do consumers consume. And so they will spend and the last thing that I'll say, which really gives me sort of hope here, when we look at our travel numbers, our travel bookings in May, we're 95% of what they were in May of 2019. Without international with, yeah, that's us. It's the US bookings without international but that's extraordinary. It's unbelievable. And, you know, restaurants, how are they doing? Well, restaurants are doing great. A Oh, look, restaurants are probably about 85%, of where they were in 2019. But the people that are really spending in light restaurants, millenials 130%, in April of what they spent back in 2019. And so we believe that that's going to continue to to move forward. We also believe that by the end of the year in the US, we will have a full consumer recovery from a travel perspective. And overall, by the end of the year, I think globally will probably be about 80% of where we were in 2019. First of all, that's amazing because the defaults are so low. But second, the millennials, you've got to live on younger people. Like my kids, everyone wants American Express as soon as they're old enough. How did that happen? Well, I think that happened from experiences. I think, you know, what happened was, as we looked at what people wanted, what my kids wanted, what your kids wanted, I mean, we we live with millennials,

24:30
you know, what they want is access and they want experiences and what our card provides, it's more of a lifestyle brand than it is a payment rush. I mean, it's, you know, yet you can get lots of payment products, but can you get a payment product that's going to enhance your life and your ability to lead your life and, you know, with the programs that we have, whether it's fine dining, you know, credits for travel, and so forth. Millennials like that, and Millennials are the first ones that are back, traveling now and eating at restaurants and so forth. We talked about millennials, they support small business, but the only people

25:00
who's really supported small business the whole way from the great recession is American Express why it look small businesses, lifeblood of the economy employ most of the people in the United States make communities vibrant. And we started supporting supporting small businesses Small Business Saturday over 10 years ago. But you know, as this pandemic started to reach a fever pitch, we realized we were going to need to do something, again to support small businesses. And so you know, last year in the summertime Around this time, we launched a 12 week campaign globally 18 different countries, $200 million dollars to support local small businesses cardmember offers and small business offers, in fact, explore I'll give you an exclusive next week, we are launching a another small business campaign $100 million campaign. And we're going to start that next Monday. And that's going to go through Labor Day to support small businesses. We also did is, you know, in the, in the throes of the winter months, we had an order in to help out campaign, right. So we wanted consumers to go to the local small restaurants and order in and be able to support them. We did dining pavilions, we did preservation for historic restaurants, we provided grants, and so forth. So we really get behind small businesses, because small businesses are really important customers to ours, not only from a merchant acceptance perspective, where someone will come in and dine, but small businesses for us are big consumers of our card product. And when we look at small businesses, they use our product to run their businesses. And let's talk about that. Okay. You're breaking some news today. That's right, because one of the things that we look to that we've had the district patchwork is Well, how about our paila? How do we handle the the the register? Do we go to some of these outfits that just started when we don't know? Can we go to American Express? Yeah, so look, we made an acquisition, during a pandemic, we made an acquisition of cabbage and cabbage is a digital platform, which basically has everything that a small business will need to manage your cash flow. So whether it was working capital loan, you know, a transaction banking account, you know, card integration, and so forth. And we brought it in to the franchise, we had to make it Amex, Amex. Ready, right. And when we did that, today, we just launched that world first small business checking account, our transaction account, which we launched this morning, and I think it's gonna be a big hit, and you're giving higher rates than the competitors. I saw that the balance which I every dollar amount matters, it's more bits. Absolutely. So 1.1% of $200,000. And the interesting thing about what we're doing here with cabbage is we're taking a FinTech platform, and provider, combining that with a scale a scale business. And so when you look at our business were the number one small business issue in the United States, the number one commercial card globally. So take the agility and the digital platform. Combine that with scale, and we think we got something really special here. Well, I know last quarter, I loved you know that and now that you're going to have more of the FinTech that we want from American Express, it is going to be enhancing the stock and make it so that you people don't trade away. I we would all love to be just American Express in the register all be connected. And cabbage, I think does. Cabbage is going to really help to do that. I think you know what, what's important for us is, we really want to be an important partner for small businesses. And I think cabbage will do that. And there'll be other partnerships that we'll be able to build off cabbage. And look, before we did cabbage, we acquired resi, the restaurant reservation system. And you know, during a pandemic, we reduced our we eliminated our fees, and rezi. Now, what we're seeing now is double the reservations. And we're seeing more restaurants go digital. One last thing I wanted to mention your support minority for African American business, extraordinary how much you're doing? Yeah, we've done a lot. We've done a lot, not only from grants, we've done grants, we've provided access to capital, mentorship, and leadership training and so forth. And, you know, look, when you look across the United States, I think it's really important that not only we support, you know, black restaurant owners, but other minority owners as well Asian, Latino, and so forth. And we've really tried to do that. And I think it'll make a difference to the economy, your thought leader and as someone who knows small business, you're actually there. me it's not just idle. We appreciate you're absolutely there. Steve's query American Express Chairman CEO. Wow. Great to be with you, Jim. Thank you nice. Coming up. For every interest. There's an app who's giving these apps made and helping Connect investors to the crypto they covet. Kramer mentioned introduction. Next.

29:50
Even if you're not well versed in cryptocurrencies at this point, everybody's heard the two big ones Bitcoin aetherium. This year though, there's a new blockchain that's been gaining steam. It's called silver

30:00
Hana, which offers faster transaction speeds at a lower energy use profile. But how important is that the amount of electricity that goes into cryptocurrency mining is downright appalling. So anything that's more energy efficient is an improvement. Last week, the company created salon salon labs announced it had raised one 314 million from a series of venture capital investors in order to further develop its technology and see new projects. I fully admit that I'm in new fight the world of crypto do own some Bitcoin I do on some aetherium. But what we're trying to keep up with the ecosystem and given the enthusiasm surrounding this one, I think it's worth a closer look, even though it's private. So let's check in with Anatoly a yakovenko. Hope I got that right. I believe I do the co founder and CEO of sawada Labs To learn more, Mr. yakovenko Welcome to Mad Money.

30:46
Awesome to be here. Thank you for having me. Well, look, I've got to go right to it because I thought I think you're really really impressive history. And there are people who have made fortunes who are connected with you. So I need to know first of all, why does your company exist? And second, why we need?

31:06
blockchain is a revolutionary technology that is really enabling people to go, you know, person to person without any intermediaries. But Bitcoin and Ethereum are just way too slow for that. So Solanas there to really enable that 1 billion people to go fully interconnected. Oh, well, let's figure this out. Way too slow. The way I like to compare is that, let's say a visa we have American Express on tonight. They do so many calculations per second so many things per se. You tell me that a cerium and Bitcoin don't work as fast.

31:40
No, both a theorem and Bitcoin are can basically handle about a city the size of Berkeley, California. But that's that's where they crop up.

31:49
Why is it because your decentralized finances yours work different or because you just have a better mousetrap.

31:56
Um, so those technologies are about 10 years old proof of work and what they're based on are quite old Solanas, based on a bunch of tech that myself and most of the folks that came out of Qualcomm kind of leverage from our, you know, expertise in the wireless industry, and really optimize this thing to take advantage of Moore's Law hardware that keeps getting faster and faster. And we've benchmarked this to 65,000 TPS, which is the speed of visa. And our sights are bigger than that, you know, in our sea level deck, we literally said that it's blockchain at mastek speed. So we want to play some bigger dragons than just payments. Alright, so the why that, why don't we all switch to slotta Media slot sounds like it's actually commercial, and the other guys sound like that they're antique.

32:41
There's already 1000s of people already switching. So if you want to call it switching, or if you want to call new, new new engineers coming into the space and building new applications, we saw a massive influx of developers over the last year. Well, let me ask you something, there was a really brilliant article by my friend, Mark Cuban, he spends a lot of imagery, you know, Mark, and he was saying that I should ask about your revenues, and how running this is different from running any other business?

33:12
Yeah, financial decentralized networks, what are their revenues? I think it's too early for anybody to really give you a good answer on that. And I think reality of this is that this is, you know, the next stage of software eating the world, and this is eating the financial world. Over the long term, finance makes money off volumes. And I believe that these networks over the long term will will end up making money or generating revenue for the, you know, the underlying holders based on volumes. And,

33:42
and, but this is kind of like me telling you, you know, 1996, that I was sharing pictures of cats, with their friends is going to be half a trillion dollars. It's just, it's just too early. I got no book, I started business in 95, that had no hope for revenue, ended up making a lot of money, and not as much as I would have loved. But yeah, I get it. If I had thought about the revenues, I never would have started. Now let me ask a couple other questions that are really important. What kind of applications run on salon.

34:08
One of the coolest things that was launched almost right after we launched the network a year ago is this thing called serum, which is a central limit order book style of exchange. Now, if you've heard anything about decentralized finance, you might have heard of something called uniswap, which is a the thing that runs on aetherium. It's this rudimentary market maker called called constant function market maker what runs on Selena is the same fact that runs on NASDAQ that runs on finance runs on f dx. You know, people thought that this was we were crazy for even trying to do that. And that's the really the fundamental building block of finance, right is price discovery is figuring out capital risk at a particular price. And that thing is running and generating information that all these other applications that manage risk and capital, which is you know, what's now called defy that are building on top of it. So a lot of developers coming in

35:00
To the space using serum and the central limit order book to build new ways to, you know, match capital and risk and generate yields and returns for traders and investors. And that's, that's really cool. This is starting to make sense to me. It makes sense as someone who worked at Goldman, looking for some hoping for this technology one day rather than voice. I get this, but I never believed it can happen. One last question. We're concerned about this outfit tether. Because it doesn't have the balance sheet. They'll be like, some people were telling me Jim, if you don't emphasize tether, you don't even know this is the biggest risks of this whole system. I have to believe Roland slano, we don't have to worry about tether.

35:36
So there's alternatives to digital dollars USD is one of them. We're the second largest network where USD has been issued, but from demand from users using it. And I believe it's over half a billion already. Circle is a I don't know if you know Jeremy alera is this like a rockstar intrapreneur that's been building businesses for like 2030 years now.

35:57
They're awesome. It's fully backed. And these are real digital dollars. So if you want to have the experience of crypto money, you know, get digital dollars into your salon a wallet.

36:10
I'm gonna do I don't know I'm kind of stuff. I heard. If I put you on that it will kind of blow my mind. I haven't had my mind blown a long time. You just did it. And until

36:22
Go, go better to salona you've got it. I mean, you've got it. It's great that you enjoy the show. Thank you so much Mad Money. Sometimes your world gets open and you have to know when it happens. Big money Spectre.

36:39
Coming up next. What's big money together? What do we got? Kramer is bringing the thunder and answering your burning questions in today's edition of the lightning round.

36:56
It is time

37:03
and then the lightning round. Are you ready ski

37:07
with Lucas miniserver, Luke s, yo dreamer backwards through squanto crazy doesn't seem to run on fundamentals anymore. And think that the vaccine stocks are beat up. But I don't think a lot of people realize we still got about a million chance to put in the arms of people all over the world. So my question is on j s. Book 10 j is kind of a it's a tough one stock it just goes up the matter what. And that's from pipeline. And that's why I should own the stock. I need to go to clay in Florida clay lujah Jim boulia Hey, I'm looking to

37:48
add another stock to the space and defense sector have already already owned max our technologies and Virgin Galactic. Lockheed Martin we think you're dead right? I think the James Hey, Jim. Good.

38:03
Morning. I remember him AMT turned us about made about 200 points versus AMT? I think golden. Let's go to Matt and California Matt.

38:12
Jim, I'm calling about a major player in the aggregates business. They have a massive footprint across the United States stand to benefit from an infrastructure bill VMC it's been in decline or buying us summer.

38:26
That does well if there's a housing boom. I know it's got a bad chart. That's what sending it down. Maybe wait a week or two. But boy, is that a good company?

38:36
JOHN in Ohio, john.

38:38
Boy, yeah, Jim. JOHN. Hey, we watch you every night here in Oxford. But I gotta ask you, thank you when you get excited. When I get

38:52
excited. I get excited. I gotta Yeah, I thought I came in and Shawn came in hot every night here.

39:02
But Viacom bi AC

39:06
kind of like the media stocks. Ever since had rk ghosts. They've given up the ghost. Let's go back to them. I think you're gonna have a pretty good fall. And I like buy a copy. I think it did a good job. And I think it's a it's time to buy it. Let's go to Alex in New York. Alex. Hi, Jim. Longtime viewer. First time caller I'm following about a Pennsylvania based diagnostic company that just received FDA approval for an over the counter COVID-19 rapid home test called Intel swap. Jim, what are your thoughts on aura short technologies ticker OSU?

39:39
bethlem. It's about 15 minutes to the place where I put that gigantic bass on he saw on Twitter about nice people follow me on twitter these days. The problem is that I've got binax I got this. There's like so many guys doing this. Ah, can't do it. I'm sorry. And that lays the conclusion of the

40:00
lightning round is sponsored by TD Ameritrade

40:05
coming up, gaze at the craze marvel at the mania, but don't put your money where your means are Cramer's drops a little common sense next.

40:22
Tomorrow kick off the trading day was squawk on the street

40:27
from post nine at the nysc I think j pal is a revolutionary Fed Chair. I think he's saying that people don't make it up in this country. And until they make an offer and until more people get a job, he's gonna stay the course. It all starts at 9am Eastern.

40:45
Take control of your financial future with a new Mad money.cnbc.com Cravens 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 me drop a stock immediately it's it's everything you need right when you need it. The new Mad money.cnbc.com

41:19
Okay, new rule, there is no way to stick it to the man with your stock portfolio. If you think you're sticking it to the man like so many of these meme stock pushers, you're probably just sticking it to yourself. This morning I saw a post from Wall Street that's preaching about course here gaming companies makes high end computer equipment and all I could say was here we go again. I think of course your stock would jump eight or nine points in the post and the hedge funds would come in and short the stock slamming anyone who bought it near the highs sure enough course you're finished the day up 11% but if you bought at the open when it was pumped or anywhere over 40 were a lot trading you lost big money as close to 36 bucks. But not a thing who can blame the short sellers for taking advantage of this? They have the mean people basically working for them? Why not let them pump so you can sell Hi, I like course here I think it's good company recommended earlier on anybody came up public, but with the exception of GameStop and AMC stocks just don't go up for no reason. They usually have a cow or something, something that gives people substantive reason to buy not just the hope that will be the next mean play for heaven's sake. There was no catalyst here. I think the whole short wrap as a reason to buy yes 80% of course your stock is sold short, is beginning to wear a little thin.

42:31
Now I can hear someone saying Camry love Logitech and that's up to you. So why can't you just get involved with course here tell people to buy it. It's the same business. True Logitech stock is 33% for the year. Of course here's downslope year to date, after fading into the closest I told you it would, but the two aren't exactly comparable. Logitech has a much broader portfolio of products, of course, your most high end equipment that's much more focused on gaming, which is why it's been written off as a pandemic play that will lose traction now that it's safe for people to go out again. Great Of course there's reporting just a fantastic a gigantic earnings beat this time around. But the stock of plaster in the news because Wall Street has lost interest in the gaming stocks. It's the same thing it's plagued the whole group Activision Blizzard take to both report incredible numbers activities up to 7% take us down with the 10%. So I have to question the staying power, of course, here up 11%. Today, well nearly 65 million shares traded when the actual flows only 31 million shares, implying people are just flitting in and out of this thing endlessly like a hive of angry Hornets. Again, I'm a big wave, of course here in the gaming space, but more generally, but if I own the stock, I view today's action as opportunity take some profits, but only to the mean people give it one more good college try tomorrow morning. Now why would I do that? Because every week it seems like now there's a new meme stock and these moves railers rarely stick. Lastly, there's Wendy's another company I love with a stock that was taken up by the Wall Street best crowd last Monday. They pushed it to just under 30. And at that point, many of their hedge fund brethren came in and shorted the stock because the mean guys had no thesis and they crushed it. Yeah, the mean guys, what were they recommending? And what they said is that there's some good tweets. The chicken tenders because of the name tender was like candy. And then of course the clincher quality the salad. So of course the stock quickly plummeted back to 24 crushing anyone who bought it You're the highs. And again the main people help making fortunes for the for the the baby booming, well suited bespoke short sellers that they claim to hate but are doing their bidding. Now used to wonder why Wall Street best was so focused on AMC and GameStop why they didn't try to branch out but it's looking more and more like they don't have the firepower to branch out. That's why when someone tries to join a new meme stock The only people who make money are the initial buyers who may or may not be pumping and dumping and the short sellers who come in when the share price is impossibly high it have never really gotten such an opportunity or that I've ever seen in my life other than what the Wall Street means do for them set friggin AMC and gay

45:00
Stop. Oh and look out at the end of the day the maymester started going into Petco symbol Wolf, because it has a big short position. I'm really the only guy on TV maybe on wall street that follows this thing that closely and I can tell you it didn't have that great a quarter. It wasn't terrible, but it certainly wasn't as good as the now shouldn't chewy. You think the Wall Street bats would have more love for Judy? given it their savior Ryan good oh Cohen of GameStop was one of his co founders. Maybe they pump Petco again tomorrow and you can sell it higher seems like their their game plan. Just remember when you buy a stock solely because of a meme or Reddit post. You can't expect the move down any staying power unless it is AMC or GameStop course they're open to $40 and change today. At that point, you really were already too late. If you miss out on that initial move. You should keep your battle your shoulder and wait for the next pitch. I like to say there's always a bull market summer and I promise 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.