MAD MONEY 文字起こし　07JUN21 T-Mobile CEO, Tradeweb CEO & Off The Charts: Amazon

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Mad Money w/ Jim Cramer - T-Mobile CEO, Tradeweb CEO & Off The Charts: Amazon on Stitcher

0:32
Cramer Welcome to Mad Money. Welcome to quit America. I'll be one of my friends. I've just tried to make you some money. My job is not just to entertain you but to educate and teach. So call me at one 800 743 CBC or tweet me at Jim Cramer. It was like a dream today being back downtown again. There was so much symbolism to be on the floor of the New York Stock Exchange. And it made me feel like the old days where the action is what's the real point of all this read Portage Wall Street. I don't want to get too existential on a down day a day where the prospect of higher interest rates spook the market. Dow slipping 126 points s&p declining 1.08% NASDAQ actually advancing point four 9% but for me, it was a double wall street Hong Kong. The first time being when I was hired by Goldman Sachs almost 40 years ago, the second time shortly after the legendary Mark Kane's passed away, and I started working on squawk on the street. Great it was a bit jarring sitting side by side with partners called David reunited for the first time since the pandemic hit the floor slow right now that being careful which I like. But it's still got what made me want to come there in the first place. So my parents took me to the gallery when I was five. No security back then. And a nice trader gave me a roll ticker. Wow.

1:44
The next time I went as an employee of Goldman Sachs, where I was a helpless stooge being knocked over repeatedly by clerks wanting to place orders knocked over until I guess they felt I wasn't worth knocking over anymore. These days much of what's done is electronic the stock market equivalent of what Kramer fav tradeweb does for bond trading one that later, but the excitement's still there. What drives it? Well, in some cases, it's stocks like GameStop and AMC that are having stunning moves, as they're being bid up by a throng that just keeps winning. Both companies have taken advantage of the swamp to raise capital in order to fix their balance sheets go on offense. We don't know what GameStop is planning, we're gonna find out maybe when they're put on Wednesday, but AMC wants to become the most powerful movie theater chain in the world, perhaps is part of a larger hospitality scheme. Maybe CEO Adam Aaron gets it from his history running Vail resorts, Starwood Hotels, and where we can cruise lines to say nothing of a successful ownership stake in the 76 years, where he trusted the process that has them in the playoffs. All those are compelling story, especially in a thinly traded market like this one where so many professionals are still on vacation, make it easier for the home gators and gamers to just really assert themselves and not take over. More important though the New York Stock Exchange has both real and symbolic functions. The exchange introduces initial public offerings, at least the ones that they won versus the NASDAQ. And there's a feeling of tremendous excitement as for traders crowd around the new post, where the offering is to figure out what what it's going to open it. Now we're post nine, once a hub of trading. Now we witness the principles of new companies ring the bell, Joyce Bowman filled with promise even if that promise is sometimes called miracle. The second thing that goes on though is what I love today because it suggests the pandemic may be waning. I'm talking about people jawboning over the price of goods to get the best price for the customers on a daily today that means giving traders big accounts what is known as a picture what a stock looks like whether there are big sellers whether buyers by people willing to pay higher prices. Now you can't give secrets in 20 years in trading doing never knew who was on the other side that's for big, you just want to feel a sense that you're going to see a curveball maybe change up or maybe something like that, nowadays is possible that most accounts don't even care about what's known as a floor look, because so much is done electronically. But if they care enough to ask today, what have you seen more sellers than buyers? Okay, that's a funny phrase. That sounds like circular reasoning as it Why did stocks go down? Oh, more sellers and buyers. That's some keen insight. You really don't need Cramer for that one. But you want to listen to me. There are many big accounts who are selling stocks, you're far more than those who are interested in buying them at these prices. So the sellers have no choice but to accept lower prices, something they obviously don't want. They're always hoping that more buyers will step in. However this weekend, Treasury Secretary Janet Yellen former Fed chair said that this economy is strong enough to handle or even welcome higher interest rates. Well, that's what causes sellers to just what's known as hit bids all over the place, knock something down. Let's say you're talking about a stock like nuclear Judo the steel maker largest in our country. That's the second best performing the s&p 500 up roughly 105% coming into today's session, just one point got crushed. Those who own the stock might be thinking that a rate hike from the Fed means that our business will cool and the price increases and steel will no longer stick because everything that uses steel other than infrastructure might be hurt by higher rates. Construction Carlos more beds of transition fewer buyers. how upset are the owners? Well, Nucor bought a terrific little insulated metal panels come today for a billion bucks. Suddenly it's good for business might even sent the stock into further or better another day. But today, ah sellers overwhelmed the buyers hit all the bids down to 1.15 and change a week after the stock was at 110. Now to me, I think it's a fabulous biography. Nucor has multiple years where it does well when the cycle gets going. So we bought some for the travel trust in Fall one by joining our shores plus com club, but the stock closed down more than 2% which put me in an oppositional camp, although maybe an opportunistic one. I think it becomes cheaper as it comes down. Sellers obviously don't agree. Of course, that's not how it played out everywhere. We saw buyers overwhelm sellers and Eli Lilly, as Biogen got a relatively easy FDA approval for an Alzheimer's drug that might not even be as good as the one Louise working on. We saw an oddity in Florida this one buyers one furious moment, willing to pay far more than sellers were willing to sell at. In other words, they took several offerings that were several dollars above where the stock was trading, the seller said we didn't have time to cancel their offerings, something we see almost daily in the red on stocks like AMC or GameStop. Does the Forstall matter a lot of people ask me that? I think so. It can provide more orderly markets on digit basis. It can give you actual referees if something goes wrong with trade. It's a very fair place to do business. The big blocks tend to be done upstairs as they call it between the big brokerages however, will always be a shrine to capitalism at its best, okay occasionally is worst. And nothing or at least I hope nothing can ever take away from the simple beauty of traders fighting for you fighting to buy and sell IPOs at prices that meet the demands of the buyers and sellers. So I wax nostalgic today about being back for the third time on Wall Street and hope that one day you can come see the trading and action yourself. It's an electronic charge. That's right and electric one, stocks change hands something that makes you feel small compared to the forces that move the market. The bottom line though, never forget that the floor is all the way a supermarket with the merchandise being stocks, except unlike an actual supermarket. The nysc is more of a caveat emptor institution, BB where they can't pull out a crowbar not even a deli gal. But let's look at definitely let's get out of the way. Nobody ever made money going to the movies. But they sure made a lot of money buying a seat. Brian in Oregon, Brian.

7:20
Mr. Kramer, so good to see you back on the trading floor this morning. Thank you, man. I just love being back there. How can I help?

7:27
I love to pay for the food and I've loved it for the growth but you today it's been a disappointment. They consistently beat estimates with a price target of 1700. I've been a recent buyer in the 1400s CEO Brian Nichol was very optimistic at the recent Piper Sandler consumer conference. How do you feel about the time multiple sides of trading below its 200 day moving average? But

7:46
Brian, I've got to tell you, I too am surprised the worst restaurants are going up and not the best ones. But you probably is the best. So you have to stick with it. I think it's a terrific opportunity. But I've been I've been REITs and 300 wrong for the last 150. So maybe you can send Jim value to me, but I've been right far longer than wrong. And I think the stock is a buy. And thank you for coming on the show. Barton sorry,

8:08
Bart. Yes, john. Hello. Good afternoon. How are you? I'm doing wonderful. Thank you for having me. All right. I had a question about stock. I recently purchased timber Morgan or Kay ami short and

8:28
I think kender Morgan. And this is tough. I like pioneer for growth. Okay. I like Chevron for yield. And I like Tinder Morgan as a pipeline company, because it's really well run and it's time again for K ami to do well. I actually like them back on the show. I know that's probably not possible, but I do like them. Let's go jack in my home state New Jersey jack. Hey, Jim, What's up, buddy? How are you? Good.

8:55
So Jim, the last administration was all about deregulation. One of the industries that was deregulated was the chicken industry. poultry factories sped up the production lines, the USDA allowed the selling and diseased chicken for human consumption. And now the CDC is probing outbreaks of salmonella salmonella in 43 different states that in 2019, USDA publishes their final rule to deregulate meat inspection and six months later, meatpacking plants, workers all over the country are hit the hardest by the pandemic, and all all infected with COVID-19. Then last weekend, a cyber cyber attack resignation in the media industry. Kim, I think something's up now that the Biden administration is about to do a 90 day study on what caused the pandemic. So my question is, if the pandemic has anything to do with the deregulation of the food or meat industry, how many doors that opened up for beyond meat?

9:45
Well, they've been beyond meat. It's both a price situation and a belief that the service businesses like the cafeterias, we're going to come back and that's what I've been saying. While I've been pounding the table. That's what really matters. All Emily, what will matter is it we're just going to realize the cows are real life. lousy energy distribution, whatever they cause methane. And frankly, as much as I like them, it's a real inefficient way to get your protein. Anyway. The nicey is back then. Some may think the four doesn't matter anymore, but I say it's an important shrine to capitalism for better or worse on T Mobile is giving a competition run for the money. As it works to bring 5g to all but it to 42% and run over the past year can the uncarrier stock continue to soar with the CEO, then Amazon founders that face us now to fly to space, but Kim the stock of Amazon soar to a new stratosphere as well. Whoa, I'm going off the charts by now. And Trey Webb had been a COVID year a winner. And with the company reporting record monthly transaction volumes in April, May, it sure seems that traders who turn to the company during the pandemic are sticking around. I'm gonna talk to the CEO to find out what it means for the stock. So stay with Kramer.

10:58
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.

12:00
Good management is priceless just look at T Mobile. Not that long ago. These guys were marginal players in the wireless industry. But thanks to bold management, customer friendly ethos, some brilliant uncarrier branding and last year's merger with sprint t mobile's become a heavy hitter. Now its market capitalization is much more than riser the clown show sorry, that is att. Two companies have been running circles around for years. I mean, these guys have been crushing it. And the gap just keeps widening since the end of 2019 t mobile's run up 83% while Verizon was 7%. And att is plunged more than 25%. Some of that's the sprint deal, but a lot of it comes down to execution. Right now all the major phone carriers are rushing to build out their 5g networks. And based on the most important metrics like availability to speed t mobile's got the best 5g in the nation. They've gone from the uncarrier to the Uber carrier. Now, why don't you mobile keeps putting up tremendous numbers. They had 1.4 million net subscriber additions in the first quarter when Walter was looking for less than a million. So how much longer can they keep this up? And is 5g too far away to make real difference? So let's check in with Mike Seaver. He's the relatively new president, CEO of T Mobile, and the guy who came up with the uncarrier ad campaign back when he was Chief Marketing Officer john legere. successor, Mr. Seaver, welcome to Mad Money. Thanks, Jim. I'm going to start with something that was so hard for me. But you're going to boil it down to translation because it's why you're winning. It's propagation. It's densification. And it's time to market in English. Tell our viewers what that means.

13:28
Wow, fantastic. Well, you just did it for me. Look, for the last few years our competitors have been confused and distracted, confused that maybe media convergence was the future that there would somehow be synergies there, distracted around millimeter wave technology, which is radio waves that don't propagate very far from towers. And T Mobile saw years ago that the future was 5g, mobile internet pure play something the rest of the industry is just waking up to, and that it would unfold in the mid band Goldilocks spectrum, the spectrum that we went after when we pursued the sprint merger.

14:02
Well, okay, I know a lot of what you're talking about is 5g, but we're not in 5g yet. We're in a 4g world. And in a 4g world, I could argue that Verizon and att have the edge on you. And that if we're thinking in the future, great, but I'm in the now guy, tell me why you're doing better than they are now.

14:22
Well, last year, Apple and Samsung mainstream to 5g and all their phones so it practically every phone everybody gets today is 5g. And look, you're right, you back up into 2010. Verizon and at&t lead the 4g era t mobile and sprint were distant thirds and fourths. And Verizon and at&t made the rules of that era. And you know what those rules suck. They were terrible for customers and we changed all those rules. But guess what, we're making the rules for the 5g era because we're way ahead. And I mean miles ahead. And those rules are going to be customer friendly, and it's going to we're going to be able to monetize you know this lead over the decade. We're going to hold on to this 5g lead. For the entirety of the 5g decade, and 5g is just the latest round of network technology. Eventually everybody will have it coverage, better or worse the other guys, way better. We cover 295 million people with 5g today. Now their 5g extended range is about the same speed as LTE RS is twice as fast, because we have dedicated spectrum on it. But the real place it starts to showcase our lead is what we call extended extra capacity, ultra capacity 5g. We're covering 140 million people with that today compared to like four or 5 million with the other guys. And we're gonna be a 200 million by the end of this year, 200 million people with a form of 5g that's 810 times faster than LTE, like 325 megabits per second, like faster than your Wi Fi. By far, covering 200 million people this year, it puts us years ahead of the other guy, so abandoned home. Absolutely. It's one of the uses for it. You know, look, if you can have a wireless connection that's faster than most people's Wi Fi, wouldn't you sell broadband through it? And you know, while the rest of the guys are trying to scramble to figure out how to get fiber or millimeter wave. We're bringing competition today. You know, we're covering 30 million homes today with 5g home broadband available on the market now. And it's 100 megabits per second. And this is about choice. You know that 42% of this country has no choice when it comes to their 100 megabit per second broadband. No choice. That means one or less options, no competition. That's unAmerican. We're changing all that right. Right

16:36
now I know your product leadership. I know you got value leadership. I know you got experienced leadership. But how about balance sheet leadership? There was a time when Sprint's balance sheet completely in tatters. Geez, we had in essence that was it. It was a two box bankrupt. Now you have a better balance sheet? Can you really fight with the big boys? your balance sheet versus varizen, your balance sheet versus att?

17:00
Well, look, we think we're going to be able to deliver within a leverage of 2.5 and corporate grade and corporate family investment grade securities, we're going to be able to deliver up to $65 billion in free cash flow during our five year planning horizon. So this is a this is a company that's translating the promise of our merger, into synergies and into value creation for shareholders. And we've got the wherewithal financially to defend this 5g lead for years to come. And castle is slashing dividend, they can go against you. Well, you know, it's interesting, it took them years to figure out that the future was 5g, mobile internet pure play. But unfortunately, they don't have the hand of cards. They're years behind now. And we've got the wherewithal to stay ahead for years to come a part of it is Verizon just spent $55 billion, and at&t nearly that much on spectrum to catch up to t mobile only to fail to catch up and that that's not great for their balance sheets.

17:58
So how about your relationship with Deutsche Telekom? I find it fascinating. They want to be even bigger in your company, which I think is incredible, because SoftBank is kind of out. But DT seems to want to be a huge force right now.

18:12
Absolutely. Remember, for the entirety of this successful journey, dt has been our controlling shareholder, so nothing's different. They're standalone T Mobile, they were a 63% holder. But in the new T Mobile after the merger, they fell below 50%, even though they continued to control us through a proxy for SoftBank shares, so they want to get back above that 50% at some point, but it's just getting back to where they've always been nothing newsworthy. There.

18:35
All right. Well, I just admit, suzer admit, because if they really felt that it was time to cash out, they would. And they're not they're going bigger, because I think they see the future. And I think the future is 5g. I hadn't talked about the others. But I see what t mobile's done. And you have run rings around everybody else. Mike Seaver president, CEO of T Mobile. Thank you for coming on the show. Great to see you, Jim. What gets what can I say? It's the best one. It's been the best one. It remains the best one. It's just the best uncarrier there is that money's back in.

19:07
Coming. Prime Day get in there. Invest like a pro access CNBC live streams around the globe, unparalleled access to CNBC experts actionable investor insight and ideas. start your free trial today@cnbc.com slash Pro, browse Nene to the charts tell the secret of Amazon success. Cramer tackles the technicals next.

19:39
The only thing better than the stock of a great company is the stock of a great company that also has a quick chart. So as the wall goes back to normal, I want to circle back to one of my absolute favorites as the show began and I'm talking about Amazon. Now there are lots of skeptics who see this as a COVID winner. I stopped that suspect in a world where it's safe to go shopping again, but I think Got it dead wrong. Amazon's got a lot going for right here right now. Both in terms of the business and the charts. Forget the Jeff Bezos has launched himself into outer space next month. What matters is is handpicked successor, incoming CEO Andy Jassy remains Earth bound. But the Inner Space Race aside, the fundamentals are fantastic. When Amazon reported roughly five weeks ago, the retail desktop blew away the numbers, even if the stock didn't get much lift. That's actually right about where Pete part of that's a widespread sense that there are easier ways to make money in this market, especially since Amazon should be up against some tough year over year comparisons going forward. Because now we've lapped the pandemic, how many times have you heard that? I disagree. Amazon is firing on all cylinders. Right now the retail business is taking on a lot of market share and all sorts of humdrum categories. Think this stuff used to go to get at the drugstore. Once you start ordering toothpaste, I do that by the way, I've kind of likely comes I had like 47 tubes up to I don't know what to do this up. Because I don't one of those subscriptions, paper towels online. Same here. I'm betting that habit doesn't go away. It's too easy. Okay, even now that it's safe to shop for toothpaste and paper towels in person, again, the sense that it is going to pile up in the basement forever. Plus, amazon prime is one of the best bargains on Earth, you get free shipping an enormous library of video music content, a library that's about to get a whole lot bigger now that they're buying MGM. Netflix, I think one of the reasons Netflix stock is actually not that great is because Amazon Meanwhile, the cloud infrastructure division remains in excellent shape. Amazon practically invented this business and they're still a top dog with accelerating revenue growth are up 32% year over year, as the world goes back to normal Amazon's seeing many enterprises embrace the cloud, because they're sick and tired of managing their own on premises tech infrastructure, which is really expensive. This is one of those powerful long term themes. It's good to keep chugging along for years and years. Amazon's a three legged stool though, and the third leg is online advertising. This whole space is on fires. The entire travel leisure sector has come back by ads again. After spending a year hiatus. Amazon breaks everything down into retail web services and the other but the vast bulk of the other is advertising and that you're discovering yet Are you ready ski daddy is 77% clip. According to loop capital Amazon's ad revenue is now 2.4 times larger than snap, Twitter, Roku and Pinterest. And on average is 40 70% faster put them all together these these four companies are worth roughly 240 billion when you adjust for the larger size of Amazon's ad division is faster growth loop capital makes the case that this business alone could be worth 900 billion in for $1.6 trillion company that accounts for more than half of its market capitalization. No one even thinks about it. Remember advertising smallest piece of the pie here it's a business that could be worth hundreds of billions of dollars they're given where the stocks currently trading. I'm saying you're getting them for free. That's them all right now Amazon's got a major catalyst coming up something I held off buying something for this morning because it's Prime Day coming up. Yes. Shopping holiday were Prime members get used this council on June 21 and 22nd. I'm gonna get myself some Father's Day presents. I expect prime gates to do huge numbers. And when Wall Street sees that people are shopping online. Still, the stock should rally. However, if you really want to nail the timing, you know what you need to get the technicals so let's go and nail this one down. Let's go to the charts. With the help of none other than Larry Williams, the legendary technician has been trading Stocks, Futures and commodities since before I learned how to drive, let alone manage money. Now Larry's got an incredible tracker Google comes to spotting cycles patterns that repeat. And he's made a series of spectacular calls for this show since the pandemic first hit most Donald we want to email the bottom in the economy 14 months ago. So when he says Amazon's ready remember, I didn't prompt them on this. Well, let me just say you better listen. So let's start with the daily chart and we're going to go back to September. The blue line here shows the seasonal pattern Okay, in Amazon, meaning how the stock is historically traded at this time, we'll look at this when it points out that Amazon typically rallies in March and April before drifting down in May then taking off in June. That's why he recommended for short term trade in the week after Easter. A trade that paid off beautifully this year. Now that the stocks gotten through the usual made downdraft which by the way wasn't all that severe. I mean, you know, honestly,

24:19
some people thought it was severe, but I could handle it. We have 60 historical pattern we'll continue to repeat, meaning Amazon is poised to rock it higher to the moon as YOLO says or wherever they adapt apes that whatever. Of course the seasonal pattern is not enough to make him pound the table. Not by itself. Good charts also look for confirmation keyword from other technical tools. So check out the bottom of the chart. That red line is Williams is he got his own indicator proprietary got a bunch of proprietary gauge of institutional buying. In other words, it tells you what the big money's doing. In the case of Amazon we've seen a major pickup in institutional buying since the beginning of May, even as a stock pullback over the past month. Buying when it's going down and buying like that is extremely bullish. Now I'm going to zoom in the past few months, right? The Purple Line is what's known as the on balance volume. That's a cue. They think it's this cool little step up for us. And that's what I was doing on vacation. cumulus indicator that looks at volume flow, adding the volume updates and subtracting the volume on down days. According to Williams, this call flows off by signals whenever the stock price makes a lower short term low, or the on balance volume line refuses to go down, that's blue, this purple and this kind of bullish divergence is something that Chartists crave, and Amazon's got it in spades. We just got a new one over the last couple of weeks. The last time this happened in late March, the stock ended up making a major move higher, this is beautiful. Next up, years ago, waves developed his own spin on the accumulation distribution line, another measure of volume flow. This definitely looks at the trading pattern of market professionals, again, not to show anything coincident, but to show predictive with the glaring example of the mean stocks, the pros are usually the ones who set prices with their buying and selling. Take a walk again, with this kind of volume. Gage Williams likes to look for divergences, when the stock goes up, okay, but this green line goes down that's bearish, when the stock goes down. But the green line goes up. Like you've seen in the last couple of weeks, that's very bullish. Yet another reason Williams likes Amazon here, what else we have as the master spotting short and intermediate term cycles, and a stock action that's projecting them forward. So take a gander at this one. When it comes to Amazon, he thinks the most dominant medium term cycle lasts for 60 to 65 days repeat the trough. On average, it's 61 days. When you overlay that cycle in the action, you can see it call for a low in early December. Okay, so we got and that's exactly what happened. Right? Another low in March again, what happened? And now suggests we'll get yet another medium low in June. All right. So right now, it's kind of, well, this is where we are, of course, markets don't always follow cycles. There's nothing guaranteed about this methodology approach is probabilistic. So what this chart illustrates is that based on the history, Amazon's got good odds of rallying from sometime this week, right here through the middle of July. Don't you have to get on board Don't you have to the bottom line right now but the fundamentals and the charts as interpreted by the legendary Larry Williams are screaming at Amazon's a buy the stock has spent the past five weeks catching his breath and now I think it's once again ready to roar. And you know what we want to do what fronted by Alexa? Hey, Alexa, is the stock of Amazon to buy well there for everyone who has an Alexa that submits it. Duke in Virginia, which is really kind of contrast is gonna be Virginia Duke. Duke.

27:45
Boy, yeah, Jim, for taking my call. Big Sandy just show

27:49
I got a question. Concerning Alibaba, the Amazon of China. Yeah. Because it's been staggering at two seven.

28:01
been kind of hammered it you know, the government has not been the way I like it to be about almost any Chinese stock. But this is the one that's going to roar and come back first. I say get long it or stay long. And I don't say a lot about any Chinese stock on No way. No how, like the charts are screaming, screaming screaming that Amazon is Oh, by Alexa, tonight's chores. There's much more Mad Money ahead. Over the past few years, one of the best sector themes in the FinTech space has been the electrification of certain financial markets. Could a company like tradeweb new bank off the trend, I've got the screws with the CEO, then AMC, GM, and a three letter word with plenty of power. I'll tell you which, if any could be worth considering. And all your goals rapid fire tonight's edition of the lightning round. Alexa, who is Kramer stay with?

29:03
We don't COVID has changed the world. But as we close the curtain on the pen demmick. We need to find stories where things won't just change back. In other words, we're looking for permanent transformations take the digitization of the bond markets. Until last year, Bond trading remains stubbornly analog phone calls or in person transactions. We knew this business would go electronically eventually, which is why I started pounding the table on trade were markets that have tried securities marketplace when it came public a couple years ago, that story went into overdrive and COVID shut down the trading floors. I got buying this one in the mid 30s. Now it's at 81. And I wouldn't be surprised if there's a lot more upside because tradeweb keeps reporting record monthly transaction volumes. Once you go digital why would anybody go back? But don't take it from me. Let's dig deeper with Leo leschi is the co founder and CEO of tradeweb markets get a better sense of where his company's headed Fisher was he welcome in money. Thanks, Jim. Real pleasure to be with you. Okay, so we you know, we've been a big supportive years from the days when actually, you were focused on rates trading. But you've got a much more diverse platform right now into a rates credit equities. ETFs. So I want to, I want you to introduce yourselves to people watch about how you're much bigger company than when you started, and how you're taking a lot of share in a lot of names.

30:21
Yeah, well, look, it's been it's been a run for us, we, we started the business 1997, we actually raised $8 million in capital and started trading in 98. Started in the Treasury market, we were the first firm to actually allow institutions to trade over the internet, Treasury markets. And, you know, over the last 20 years, what we've been doing is adding asset classes and expanding our reach really around the world. So that now we have this vast network of customers connected up to trade, web, trading in all sorts of different asset classes. So what we started in rates we've moved on, we have credit, now we have money markets, we have derivatives, we have ETFs. And we have this broad network of 2500 institutions, trading all these different products. But I would say, you know, what, our real differentiator as a company has been over these 20 plus years, is the people in the company and what I like to think of as collaborative innovation, and is this innovation, where we've been building new functionality, new bits of software, that allow our customers to trade more easily electronically, in what are fairly complex markets. But so this innovation is, is really the biggest driver. But

31:37
let me ask you something, you got a competitor market access, and they've known a number of times, what's your advantage over them? Yeah, I

31:46
think, you know, the tradeweb advantages are, in part, some of what's been happening in the markets in terms of digitization, and that applies to everybody. But the core core of what we do is this very diverse offering. So we have, we trade now, you know, roughly a trillion dollars a day, that's the average for the first five months of this year. It's a vast market with a lot of different instruments and our customers, like the fact that we can offer things and rates and in credit, and ETFs and derivatives. So this diversity is a big, big advantage that we have. The other thing we have is we've been doing this for 20 plus years. So we have a huge network of customers, 2500 institutions that are integrated into our software and our markets. And that allows us to extend into new asset classes and new regions, we're actually in over 65 countries around the world. So the combination of all these factors is really it gives us a big advantage. I

32:45
totally I want to talk about something that is important to our to our viewers, and really important to me, which is the climate bonds initiative. This is a new world. And if you're not on board, frankly, go home. Tell me about this climate bonds initiative. I think it's very significant.

33:01
Yeah, it is, it's like it's an important thing for our our people, our employees, our investors, and our clients. And if you look at the numbers, in climate bonds in in sort of the ESG space, that number has surged for us. So if you were starting to put out these numbers, but if you look at last year, so 2020, compared to 19, we had a 60% increase in the amount of those bonds that have been traded electronically. So what we've been trying to do is focus on this in a genuine way that's related to tradeweb. And we're an electronic bond network. So we're trying to highlight those bonds. I think last year, our numbers were over 80 billion that we were trading in terms of just climate related bonds, we think that number is going to continue to grow. And we're trying to do things at tradeweb to support the attention, the focus and the ease with which you would have in getting in and out of those bonds.

33:58
Who does the bonds. I'm sure our viewers at home are saying Well, listen, I mean, I want to in a climate that but really I'm saying they'll probably say I want to own a climate bond or climate bond fund, who does it, who wishes it? And why should we trust it or think it's a good investment?

34:12
Yeah, you know, interestingly, it's a wide range of both companies. So corporate bonds, but also governments now, governments around the world are starting to issue bonds that are focused on climate related activities. So what we're starting to see as there's a there's more issuers, there's more focus and attention. And I think one of the interesting things about tradeweb is we have all the different clients segments on the market. So in addition to having this breadth of all fixed income instruments from government bonds to credit bonds, and derivatives and ETFs. We also have a very diverse clients segment based so we have the wholesale markets, we have institutional markets, and we even have retail markets, the financial advisors who can access bonds on tradeweb directly, so It's out there for everyone. I think it's a question of getting comfortable with it getting comfortable with the the credit that's associated with the offering, and then just education.

35:09
And finally, your tie up with Amazon Web Services data exchange seems to be to me a differentiator.

35:17
Yeah, well, look, the the, there's no doubt that the cloud is is a big part of the future for everybody. And we're we're spending a lot of time our team and focusing on it and how we can best deliver into the cloud for our customers, because we know that that's the future, we know where things are going. And so we've started with Amazon, we're looking at a lot of other options in terms of how we can deliver essentially our data and our transaction capability to meet our customers in the cloud. So you can reduce the amount of hardware you have the amount of metal you have, which by the way, is a positive for the environment. But it's also a real efficiency, and it's absolutely the future. So I think there's a lot more to come on how the markets will be interfacing with the cloud, we're talking to customers

36:02
all the way to before they weren't going they're not going back to the way they were before the pandemic or

36:07
No, I don't think so. Jim, I think it's like the the fact is the digitization is a trend, a secular trend that's been happening throughout a lot of different industries. As your you're well aware, it will continue in the bond markets, there will be more and more digitization and look, we trade on our system. We trade a trillion a day, the markets that are part of our system, trade 6 trillion a day. There you go. So we're still just touching the edge of this.

36:36
Well, I think it's you know, we think it's a great secular growth story. We said the day came public, Leo lasky, co founder and CEO of tradeweb. tw Thank you, sir. Thank you so much, Jim. But this is a cut and dried story. You used to pick up the phone and you say Listen, I want to buy bonds. That's a silly way right now. You just do this over trade with. Everybody makes a lot of money. They have money.

37:01
Coming up next, let's make money together. What do we got Kramer's bringing the thunder and answering your burning questions in today's edition of the lightning round?

37:19
It is. And then the lightning round was over. Are you ready Steve?

37:30
Roxy in New York watching? Hi, Dan. How are you? I am good. Roxy, how are you doing? I'm fine. Thank you for taking my call. I'm a new investor and I really appreciate your show. My question is, what are your thoughts on Novavax?

37:45
I have to tell you even in today's run in mo derner. I still prefer mo journalists. Dr. Novak's is I think the majority that can do a lot more with his formulations than Novak Novak's ever can Tony in New Jersey Tony Yes. court's thought was at the National but more serious look, it's a very good company. I don't recommend tobacco stocks but it's very well run and makes a lot of money and it's very good. I always hesitate to say hey by Philip Morris, but it is a very good company. Let's go to Alex in California, Alex. Boo Yo, yo man what's going on? So my

38:27
suck. I'm gonna need hand sanitizer if I see to get into this chopper. What do you think about blame?

38:33
Rob wiesenthal boy, I met him years and years ago. $10 stock probably stays at 10 bucks. I think there's better ways to make money. Frankly. I'm not gonna recommend the stock for you. That's kind of Betsy in Virginia. Betsy.

38:46
Damn, I love your show. My question is about Atlassian symbol team t EA M. I'm worried about it overvaluation and it's dead. I think

38:57
you have to worry about its valuation because that's why the stock is going down. I think it's a very good company, but no company can grow as fast as it has. It's got a $57 billion market cap cap was a net just way too much. And I think it's a lot of a lot of there's a lot of long knives out for the guys. I really do like the company but I'm not a buyer. Bill in Vermont bill.

39:18
Boy. Hey, I've been a fan of yours for 15 plus years. Plus member and we appreciate Yes, thank you. Clay. Thank you What's going on? I've been in exact science for quite a while and I'd like to know your thoughts on esa s.

39:38
I think Kevin Conway is running a great company. I think that a lot of different ways to be able to help people and while the stock is down and just happens to be one of those that's been owned by a lot of momentum. Guys, I'm a buyer about turn to New York. Terrence. Terrence. Yes, you're on. It's chill. What's up About IBC I can't believe he continues to go higher up you know, this is computerized gaming but they're really the only game in town so I get it I guess then you go higher still it's been a huge winner. Gary, North Carolina Gary.

40:16
Hey Jim, longtime listener and watcher first time caller. Fantastic. What's up? Okay, so what can they actually biosense hopefully some relief is headed towards the sector. One ticker that seems very promising is akia therapeutics, ticker.

40:31
spec, sir, that's just in total spec. Yeah, you can do it. It's a dice roll spec. That's not the kind of thing I like, but if as long as you're Dyson's is back then Be my guest and that is the conclusion of the lightning round.

40:46
lightning round is sponsored by TD Ameritrade. Coming up, feeling desperate to pick a craze join a craze and increase suffer FOMO no mo and pick your poison with Cramer's help. Next. Tomorrow, kick off the trading day one squawk on the street. From post nine at the nysc

41:18
This is a fabulous set. We missed each we all missed each other. And even though when we were back in Inglewood, Chris, I was looking at David's back. I know verse we started 35 feet apart. It was just time we were Yeah, but let's just say it feels like old times. It all starts at 9am Eastern.

41:58
What does make the mean stocks and cryptocurrencies and even non fungible tokens so appealing? Mostly, of course, it's the money. But there's something else going on here too, that we've got to talk about. Where else can you get a few buddies together? And really yourselves into being right through sheer stubbornness? Where else can you have that kind of control over your own destiny, whether it be the celebration of non us tender assets this weekend in Miami, or the endless elevation of AMC and GameStop. These stories are all about traders taking up assets that wouldn't go up without them. Consider the case of the struggling movie theater chain that is AMC. This is a company with 5.4 billion in long term debt. Yet last week, AMC raised more than 580 million would 8.5 million shares the US stock offering for that it's sold 20 to 30 million worth of stock to a hedge fund we're both profit pretty much instantly. Normally stocks get crushed when they issue big slugs of equity. But AMC actually worth higher as the crowd of meme investors just kept buying and buy and the CEO out of Marin is doing everything right and i mean everything not only to clean up the balance sheet but to grow his business as the world goes back to normal. Second, the same shareholders who like AMC at nine love it appear 56 a pain today because they're overwhelming the sellers like nothing I've ever seen. Three weeks ago I warned the short sellers and even natural sellers to stay the heck away from AMC let the long tail hire remember its virtual virtual circle. The higher the stock goes, the easier it is for Adam Aaron to raise money pay down debt which is added attorneys. As we come out of a pandemic AMC is increasingly finding itself in the last man standing situation because the competitors have all gone under that's given them the power to dictate terms of the movie studios for the first time in my adult life. They are in growth mode people and who knows where that will take them Do not forget Do not forget that Adam Aaron is a hospitality King from previous jobs. GameStop is not much different. The buyers there's so much Firepower they can make the sellers look like chumps regardless what GameStop actually says about the quarter one reports later this week, fire Brian Cohen, the change new chairman and putative Savior, I'd say nothing beyond some vague plans to expand in new industries. As long as there's no real roadmap buyers can dream up with everything is GameStop. overvalued. Sure, by any traditional metric, it's ridiculously expensive. But I have to reach back to all the things I learned besides Warren Buffett, I have to go back to Bill Murray, who said that legendary classic meatballs, it just doesn't matter. Given that no one has ever seen anything like this except for the last big run up in January. I think the buyers who keep beating themselves right as long as they stick together and don't run out of firepower. That will probably happen eventually. But you're taking your life in your hands if you try to bet against these people right now. kryptos easy even after the recent meltdown. There are so many people who became crypto millionaire simply by sitting on this stuff that has created an unshakable throng. These things can get hammered, but as long as the throng is there, they should be able to bounce back especially the big names like Bitcoin and aetherium although I think bitcoins could take longer to bounce back, not a theorem which I own personally. I own these things. As for non fungible tokens when you get enough rich people pushing some new asset eventually the West rich one and of course the NFT market is falling apart but it wouldn't shock me thinking Jawbone these things are higher, especially since there's not even a two way market here. I'm not saying you need to own all these things. I know a guest said and full disclosure, as I told you many times I own some, but I think it's worth owning one at least as a way to ride through this wrong as just rather than as a hedge against inflation by government printing press, pick whatever you want. I'm agnostic, just be ready to gradually ring the register for some very huge gains. I like to say there's always a bull markets over and I promised by just for you right here on Mad Money On Jim Cramer. Great to be back. See you tomorrow. The news was separate Smith starts now.