MAD MONEY 文字起こし 28JUN21　Mad Money w/Jim Cramer 06/28/21

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窶皿ad Money w/ Jim Cramer: Mad Money w/Jim Cramer 06/28/21 on Apple Podcasts

0:47
Cramer, welcome to Mad Money. Welcome to America, I'd be able to make friends just try and make you some money my job not just entertainment education teacher. So call me at one 800 743 CNBC or tweet me at Jim Cramer. Sometimes this market divides itself into categories that are just mind blowing, today was all about old versus new. And COVID variants to kill versus variances are meaningless. And that is what drove the action dow sinking 151 points SB advancing point two 3%. And that's a new record. The Nasdaq gained 98% Holy cow. I'm gonna break it down for you because I let's start with the old because it's the only way to explain this stuff. And I think a lot of you are confused that the Dow could be down and the rest of Morgan could be up for for weeks on end. The leader oil the oil complex has roared, the stocks haven't gotten given up as much as they don't go up as much as the price of crude oddly right. But that's important because the producers aren't drilling as much as they used to. Instead they want a husband their cash. If the long history of reckless spending, they pledged to be more prudent, and they are. At the same time the oil companies are all they're all trying to be better corporate citizens, which means less drilling and more investments in cleaning up the environment. He'll only be so great if you're in the fossil fuel business. But when a group of climate insurgents want a proxy fight against Exxon Mobil recently, the industry got religion on climate change. Paradoxically, that's been good for their stocks because less drilling translates into higher oil prices. But with crude down $1. Today, the buyers have cashiered their generals. So everything the oil patch just got obliterated, while Exxon is no longer in the Dow Chevron stock, which I liked very much was down 3% and that heavily weighed on the index. So Chevron's first negative second. Well, there's the Boeing saga. Now it looks like the Federal Aviation Administration is taking a very hard line with Boeing's two planes sit to lease, and I was all excited about the possibility for the big united continental order to be announced. Then I discovered that the new 777 model has issues 777 I mean,

2:56
I think that was okay. Now, the company is adamant that there's no need to worry about the push back timeline because it's really not pushed back. But I gotta say, I think this is more about the tenor or the terror. The FA must really despise these guys. If they're all the reasons safety issues. Can you blame them? Unfortunately, industrials. me boy, it's too important to the group. Now that the aerospace kingpin has two strikes against let's see, I know the project's in trouble. And no China orders and site you have to ask will strike three beat a gigantic equity offering, never trusted CFO Greg Smith, when he said there wouldn't be a big secondary didn't need it. But he retires this week, let me put it this way. If you like Boeing, please keep your powder dry. I think you'd get a better chance to buy it at lower levels. And my job trust owns it. So I'm really not talking my book, we also have the new COVID berries to consider. Do you really want to travel before you find out whether your vaccine works against the new strains? If one of these mutations can break through the vaccines? Well, that is bad news. Hence why the airlines and cruise lines were all down hideously today. Plus the $500 million equity offering from Carnival sure didn't help. It totally steals. Who knows whether these companies will have any earnings power left over for actual shareholders, and Mary our top four bucks in this. That's a ton of points to share on covariance, but it's also giving you buying opportunities. I mean, I guess how can you not like American Express down more than four points here? I mean, there's a lot more to Amex and just travel overseas. How about the infrastructure bill? Well, that was fabulous for a host of industries, but only if you can pass the Senate on Friday. It looks like President Biden might have killed the bipartisan package by tying to a second infrastructure bill that the democrats could try to pass on a party line vote. He walked those comments back somewhat, and I still think things work out. But the steel machinery sucks. It can't withstand this kind of hiccup. So their stocks gave up the goods. Now just contrast. Every company I just named with these new names in the NASDAQ. Okay, I mean, why don't we start here with Intel you that's it just accomplished something incredible coming up with a successful gene editing treatment to combat transthyretin amyloidosis. That's a rare genetic disease but it doesn't pack more than 50,000 people. They had a small study. Wow, it seemed to really do great things. Only phase one but stock shot up 50% on the news pin x years incredible regeneron superpartner on this although that one actually pulled back today, but CRISPR that's the one without the ecri SPR attitash medicine both have similar experiments and their stock soared today. Now all these are huge holdings of Kathy woods, our genomic revolution ETF, just like with Tesla, she believed in gene editing early and often a couple of months ago Woods favorite stocks have been laid Wait, but when we got that white hot consumer price index number in mid May, and Wall Street decided that the Fed would have to destroy the economy in order to save it from inflation. These hyper growth plays have caught fire again. Now the wood stocks have tremendous momentum. Remember this kind of market works please if it's exciting, it goes higher, even if it's already got a seemingly insane valuation. Right now the valuations are irrelevant. I know that's not supposed to happen, but it is these companies is something special. And right now Wall Street like special Hey, speaking of special How about Nvidia, how about the stock of Nvidia jumping 5% on the possibility that they'll be allowed to acquire ARM Holdings. The big money is betting against steel, which would make Nvidia a major player in CPUs for cell phones and personal fears. Remember, they janyk GPUs they think they can be bought as a competitor. The semiconductor industry hasn't been supportive either. They don't want Nvidia to become any more powerful than it is already. But this weekend we learn at Marvell tech Broadcom immediate that that's a gigantic Taiwanese chip maker are all born with the merger good idea this antique better seems ridiculous to me personally as arm Nvidia have very little overlap in their product lines. I was worried that the one base arm could lose engineers to California, so the British might try to block it. However, Nvidia CEO Jensen Wang plans to go on a hiring binge in the UK when Jensen promises something he delivers. That only leaves China's potential obstacle now during the height of the trade war most people for China would block invidious last acquisition of mellanox that's an Israeli company no while the Chinese regulators drag the Chinese drag your feet they'll be let it go through I'm betting The same thing happens this time and Wall Street starting to agree which is why the stock pulled 138 bucks that is the highest I've seen in video jump and if you want to go to my Twitter feed you'll see also Nvidia can jump but that's the dog then there's paper which is about to give everyday users the go ahead to sell things on their personal Venmo accounts for fee so Pay Pal goes up nicely. Well Visa MasterCard get hit even as I think that connection is at best tenuous next up when Tesla gets hit with a big recall in China 25,000 causes big you have to figure the stock crash right? But this is a in Tesla we trust market and Tesla grows so instead the stock rallies rallies up 2.5% Hey How about AMC new Fast and Furious movie 2 million viewers this weekend mean stocks with good news and a big slate of films coming up what what happens jump 7.5% but I still think it could be a buy. Hey, how about Facebook with a big win over overreaching Federal Trade Commission sending that stock up 4% and propelling it into the trillion dollar club. Finally, there is Brooklyn based Etsy which jumps 7% today if we found out that it's buying Eli oh seven that's his Brazilian counterpart for $270 million. Now that's a big deal. But ELO seven has 1.9 million active buyers 56,000 active sellers, 8 million items for sale. That could be huge in this fractured market more netsy later. Let's I know it seems simplistic. How can the new companies have such a halo while the old fashioned ones have a pigpen like aura can change a bunch of big banks announced capital return plans this very evening. It seems sweet. But maybe that's just too boring for these buyers. We're back in an environment where the bulls like excitement, and if it's soporific it can barely budge either way bottom line right now the people who trolled this market want companies that are for lack of a better word cool even if you think coolness per share is a stupid metric right now the market disagrees. I want to go to Deepak in Texas Deepak Hey Jimmy boy yeah

9:09
how you doing Deepak can hear from again what's going on?

9:12
Oh good I'm fired up and and I would like to thank you for the valuable opinions to share on CNBC. Really

9:17
great job. Thank you. You're terrific. Thank you so much. What's happening?

9:21
So my question is regarding Ali Baba, and you know how does the second half of this year look like to you for Alibaba? Is it is it gonna bounce back to its 52 week high or low? Take some more time given

9:33
Deepak I think it goes higher. I think Alibaba is in the sweet spot is one of the ones that the government seems to not mind at all. And I also feel that by the way, the DD could be good this week when it comes comes public. Can we go to Carl Mississippian Carl?

9:47
Oh yeah, Jimmy Choo. Yo, what's happening? I want to thank you and your awesome staff for taking my call and I wanted to thank you for taking us to school every night of the week.

9:57
Well, I do my best man. I've been around now for a while and I hope so my knowledge helps. Let's

10:01
go to work. All right, good information for researching this stock is my firstborn coming into September Grace's. This stock has a market cap of 330 billion with a nice dividend rate of 2.6. Looking to build a long term holding, Jim, what are your thoughts on Procter and Gamble Procter

10:20
and Gamble is a solid buy put a little bit of course reinvest that dividend, but put more and more money into it over time. That stock is a winner. I wish I'd been able to own individual stocks that would be one ounce in New Jersey,

10:34
Alex. Hey, Jimbo, my money man, yo, hey, I'm a member of your work tirelessly. Man. It's like I can't keep up with you all the information.

10:47
fraction alerts. Thank you, Porter. Thank you.

10:51
It's my question is about Citibank. I bought it a year ago. I'm up about 20%. Sorry, 70%. Wow. The ratio is still relatively low. Inflation is I think it's going up. People say it's transitional? I don't think so. I see prices going up wages going up. You know about that. That means inflation interest is probably going up, which is good for banks, right?

11:15
Yes. But city. We've got these big capital term plans are now saying city decides to keep it unchanged. I would have expected better. It's inexpensive. But I don't think it's necessarily going to go up as much as I would have liked how they've been expanding their buyback. But you're right. It's a cheap stock. Congratulations. Remember, don't be greedy fools a funny business plenty hogs get slaughtered. And you're a data double going out with the old and in with these new stocks. You have the people in control this market one companies that are cool. So take note. One cyber company has created a vaccine for ransomware. I'll reveal the name when I sit down with the top reps then the IPO market has been on fire 214 traditional IPO so far this year well, but could the red hot market continue? I'll tell you how to approach the newly minted companies, good ideas for you to make money. And it's your story and they're now seeing an expansion into Latin America with its second acquisition this month. As I just mentioned, I've got the CEO so stay with Kramer.

12:16
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.

13:20
So far this year, we've seen some audacious cyber attacks. In the past, hackers might steal passwords credit card information, now they take oil pipelines hostage shutting down the supply of gasoline to the east coast. This is a new world where companies need to spend a lot more money shoring up their digital defenses. Which brings me to deep insight Dallas is a privately held cybersecurity company that's emerged as a leader in what's known as deep learning. They use artificial intelligence to prevent cyber attacks, especially so called files attacks that are very difficult to protect against according to deep instinct they can predict and prevent any kind of threat while covering every endpoint or at a lower cost than traditional solutions. Sounds intriguing to me. But we need to learn more. So let's check in with Layne best. He's the chairman of deep instinct to get a better sense of his business in the cybersecurity space. Mr. Best Welcome to Mad Money. Thank you very much for having us today. Jim. Appreciate it. Okay, so Layne, you were former CEO of Palo Alto president ceo of z scalar, who had them on many, many times. We've talked about the evolution of cybersecurity and cyber threats. What can deep instinct do that I know comparisons maybe Otis, the others can't?

14:27
Well, it's a very important point, really, the first opportunity that we provide is prevention as a service. This is actually a new category that we're creating. I look for trends in cyber and my last few companies, which you referenced, were companies that created platforms that did in most cases where other cyber companies weren't doing today. The reality of how we do this really depends upon deep learning, which you referenced already. It's an autonomous set of learning and teaching algorithms that are built up on a platform, and it's analogous, if you think back to when Yahoo. And they first began in search, they required manual indexing of the internet to search. And then Google came along with sophisticated algorithms to crawl and search faster and more accurately. The same exists here, in comparing more traditional machine learning models used by CrowdStrike consented a one, we simply can find this and prevent this when it comes to cyber threats.

15:28
Well, it sounds like that you have tremendous conviction in yourselves, that you offer a ransomware warranty of up to 3 million if a customer gets hit by ransomware. And almost more important, maybe, is the false positives greater than point 1%, you'll refund up to 150% of a customer's annual spend on our server, how can you do that without going broke?

15:49
Well, it really is all about creating a robust prevention platform, in the deep end stack instinct could have prevented all the critical infrastructure and service threats we've recently seen. We actually proclus focus on the pre execution of ransomware, or other cyber threats. You know, if you take a look, you know, in recent independent survey, 70% of cisos, are convinced that they're going to be hit by ransomware attacks. You know, we are so confident in our prevention service capability, that we even offer customers this warranty and in our mind, that's what a service is about, you know, a warranty a guarantee behind what you promise. Okay,

16:31
I know you were able to learn my friend, Heather bullington. He was a partner at Goldman to come over to deep instinct. To me that means well hold it there could be a possibility of a public offering someday. You have raised a lot of money already, though, right?

16:45
We have indeed. In fact, we just recently raised over $100 million, led by BlackRock, BlackRock, BlackRock itself had the conviction and vision of our prevention as a service platform. And you know, this money will fuel the growth and acceleration of the company. We estimate maybe 24 to 36 months to enter public markets. But the reality is, we're seeing our business accelerate so much, because of all the cyber attacks, it could be sooner.

17:15
Now, I know I often judge a company by their clients. You have Nvidia, Nvidia Kinect, anyone you have T Mobile, they can have anyone, how did you acquire such incredible marquee names?

17:32
Well, the Nvidia acquisition in terms of acquiring them as customer came that they recognized the deep learning capabilities that we actually developed upon their GPU platform. This was extremely interesting to them. And, and that led to a lot of other opportunities as well. The amount of calculations and sophistication in the deep learning technology is significant. And most other companies really can't do that. Even the ones that claim they ingest, you know, malware into their cloud. They can't do this as fast as we can.

18:06
Then I want to go back of what you said, a lot of people, I've asked, Can you make the claim that you could have stopped certain intrusion, like colonial, most reluctant to even go there? You seem so confident, is it? Do you have something that that actually outwits the bad guys?

18:24
Well, in order to develop a deep learning platform, you actually have to know how to go on the attack. And you have to build these sophisticated algorithms, such that they can outsmart the bad guys. So all of this went into the development. And what I look for is platforms that are built from the ground up. In the case of deep instinct, they actually had designed a deep learning capability, based on their knowledge, know how, and you know, quite frankly, some very unique talents that they have within your engineering team.

18:57
Wow. Well, I've got to tell you, I'm very excited about your company. Everything I hear about it is it's just it's dazzling. And you wouldn't be with Nvidia but weren't dazzling those. Guys, there is so Well, Jim, I you know,

19:10
I'd like to also share and leave a thought with some of your viewers. You know, imagine if the derna or Pfizer had created a vaccine two years ago that could have predicted and prevented the pandemic, deep instincts created cyber service that's analogous to a vaccine against ransomware has sophisticated side Well,

19:29
look, you can't do better than that. That's what we need. And I want to thank you for coming on lane best Chairman, because it's currently a private company, but poison an exciting private company that makes Beckett

19:43
company. Cramer takes the IPO markets temperature, should you clap your hands along with the biotech boom, find out next. Get an edge invest like a pro access. CNBC is live streams around the globe, unparalleled now Access to CNBC experts actionable investor insight and ideas start your free trial today@cnbc.com slash pro

20:17
because at the first half of the year we did catch up with the smokin hot IPO mark. So far in 2021. We've had 214 traditional international initial public offerings IPOs compared to 242 deals in August last year. Look at this. We haven't seen anything like this in ages, the IPS just keep getting a bunch of high profile ones this week. You recognize Krispy Kreme doughnut chain LegalZoom. That's a web based purveyor of legal services D market as basically the Amazon. Sentinel one, cybersecurity play. And finally, dd love to focus on that. Well, that's Chinese version of Uber that's coming up on Wednesday. So when you look at the all the data, what can we deduce about the current state of the IPO IPO market? Now look, when I say you had Twitter 14 deals this year, that doesn't include the 356 back office, or the direct listing place like roadblocks Queen base, and the IPO market is only growing more heated from here. Now regular viewers should remember, that's rarely a good sign for the overall market. When you get a flood of new deals, you can weigh on the border stock market, because many money managers need to sell something else to participate in these initial public offerings unless of course they're getting money in. And that's what it seemed like today. Now, June has already been the hottest month of the year for IPOs. It's not even finished yet. We've had 45 deals raising nearly $14.5 billion in proceeds. And when you throw in the stocks coming public over the next few days, well, that number could hit $20 billion. According to the IPO experts at Renaissance capital, the second quarter has been the busiest quarter for deals since the third quarter of 2001. Now it's about 20 years as a couple quarters, by the way after the.com Peak. In terms of performance, when we're talking about the class of 2021, the average IPO was up nearly 20% from its offering price. As of Friday's close, it sounds pretty good, right? But that's heavily skewed by a handful of extremely strong performers. If instead you look at the median, that's like the IPO that's smack in the middle, it's up 8% from where it came public. That suggests we've reached the point where most of these deals are still winners for investors. But the gains can be pretty meager, there's not a lot of easy money floating around in this IPO market. more troubling. There are lots of losers in the class of 20.1. Get this at the end of last week, 90 out of 214 sucks 90 that came public This year, we're trading below their offering price. In other words, if you got into all these deals from the get go, you would have lost money 42% of the time, I'm calling that suboptimal. Now, given that we're about to get the biggest Chinese IPO in over a decade this week, I think it's worth checking in on the performance of these years at this year's Chinese deals. Remember, companies in China don't need to obey the same securities laws as companies in America. So you don't get the same kind of transparency. And that's a euphemism for we don't really know what's going on year after year. That means Chinese IPOs tend to underperform American ones with a tiny handful of terrific exceptions, though. Now I'm always checking the data to see if that will change. We're always getting tons of Chinese deals I love I'd love it if they started bitten. Becky, thank you started making some reliable money over there. It would be terrific for our viewers, but they don't. Unfortunately, that hasn't been the case. And so far this year, nothing's changed in 2021 3031, Chinese IPOs have hit us markets. And on average, they're doing quite poorly. While the average Chinese deal was up nearly 25% from its offering price as of last Friday. That's skewed by three stocks that have more than doubled. better way to look at it, meaning when you look at the median Chinese IPO it's down more than 7% new opportunities that's right down, yet more than half of them are down versus where they came public 17 out of 31. By comparison, the median non Chinese IPO is up nearly 13% for the year. Now that is some serious underperformance. And look, it's not just the class of 2021. If you look at the 30 Chinese IPOs from last year, the numbers are pretty similar, as of Friday's nearly half, 14 out of 30 or negative territory versus where they came public. While the average Chinese deal from last year is up 30%. That's much worse than the average non Chinese IPO from last year. I'd really 64% see these are very telling figures the median performance for 2020 boomers, the median Chinese IPO is up just 4% Okay, how about the median non Chinese IPO? 32% say you wonder why these Chinese deals shouldn't be allowed. But wait wait a second. When these Chinese deals go bad they tend to go really bad looking at last year's China IPOs boy 10 out of 30 are down more than 40% more they came public that's hideous. We've got some real financial horror stories out of China though. Admittedly. They pale in comparison to the human rights horror stories. You got cases of blatant flood fraud like a lucking coffee that people braided beef now on for spotting that. And that came public in 2019. The stock tripled from its IPO price before we found out that Laughlin was fake and a big chunk of its sales and the shares plus imploded. Within 13 months of coming public, the stock got delisted from the NASDAQ. You've got shady companies with disclosures just like Phoenix tree holdings. That's a Chinese real estate company that raised over 100 million in January of last year, the stock steadily worked its way lower, and a few months ago got delisted from the New York Stock Exchange for failing to, quote make timely, adequate and accurate disclosures of information to shareholders and the investing public and quote, wherever our l x technology now this is a vaping play that's been beating the largest Chinese IPO of 2021 Awards. So what happened here orlik surged from $12 to $35 in his first couple days trading, but since then, the stock has plunged the single digits as the Communist Party has started cracking down on vaping. But they were smart to get that deal done. Hmm. Now the company's been sued by investors for allegedly overstating its financials misrepresenting the risks when it came public. However, that doesn't mean you should give up on every single Chinese IPO. While a lot of them aren't cheap, low quality. There's a big caveat. For larger ones. Oh, they tend to be much, much better than the smaller ones. Doesn't make them a sure thing. But it means they're sometimes worth buying on a case by case basis. Which brings me to the one I want you in one. Di Di Di that's the Chinese version of Uber this coming public Wednesday. This company has a stranglehold on China's ride sharing market they that they crushed their corporate competitors and then bought them up when they got tired of losing money. That includes Uber China. dd has also got some really huge backers Chinese tech giants like Alibaba and Tencent, a Japanese conglomerate like SoftBank, even apples, Didi. Finally, based on the proposed price range, which values DD at around 65 billion, I think the valuation seems eminently reasonable. Now there are some antitrust concerns here but as long as they stay on the Communist Party's good side, and I know it's probably hard to do, but sometimes they do, I download my trouble the regular so if you want to speculate on a Chinese IPO, you've got my blessing to bet on DD I would try to get as many shares as you can D idi. Now is one word here, we've seen a ton of deals this year, biotech, we've had 49 of them, typically tell you to avoid biotech IPOs because they tend to perform poorly. And that still seems to be the case of the 49 biotech deals in 2021 29 of them were down from where they came public in the list. That's pathetic. So I'm reluctant to recommend any of these but the fact that biotech companies are raising lots of money, well, I got an idea. It tells me you might want to invest in their suppliers. Now here letter A Agilent Technologies perkinelmer. We had them on recently, Charles River labs, we have them all the time and Viva systems. Those are the winners in the bull market on biotech IPOs. The bottom line, while the IPO market is booming here, there's not much easy money still floating around. So you have to be very selective about participating in these new deals. And I do have the DD deal comes at a good price. So you can make a lot of money. Let's go to Bob in New York, Bob.

28:08
Hey, Jim, how are you? I am good. How are you? not doing too bad myself. Jim. I just wanted to let you know I've been a follower of yours since you were at wr radio in New York. Oh, that sounds good. Thank you. Listen Jim. The FDA notified Abdi they will not meet the action dates for the new drug applications for written voc Is this a red flag for for your app the even though it has been approved in Europe and if they don't get approval, would you consider it a catastrophic event for the company?

28:40
We do on for our childhood trust we have been very disappointed that management has not been able to get this written book through the answer's yes I agree with you. This could be very very bad for the company. I hope the company will come on explain to us what the heck is going on here because we have very big game for capital trust. You can follow that by action alerts plus calm but we are concerned very concerned about repo Alright, and thank you for following me all these years. The IPO market may be booming but you need to be very selective participating these deals hey we got much more mid I'm sitting down with the CEO of Etsy what a performer that is if Jays acquisition find out what's going on. Then memo to CEOs you can't aspire to be a meme stock. I'll explain why in order cause rapid fire tonight's a lightning round. So stay with Kramer.

29:39
But this company, picking that perfect gift is personal is craft and customization. The ticket to keeping investors committed to commerce the Etsy way.

29:52
A few weeks ago the turbo charge growth stocks bottomed and they've been roaring higher ever since. Consider the case of Etsy the Brooklyn based online market pays for all sorts of unique and handmade goods. Here's this doc was one of the biggest winners of the pandemic year as as his platform became a digital lifeline for both consumers and small business owners. However, over the spring, this cut winter ended as part of the rotation out of the COVID beneficiaries and ended the boom and bust cycles they can put up incredible numbers in Aurora economy. etsy stock was nearly 40% of its value in the span of two months, then that whole rotation reversed itself as Wall Street started worrying about a Fed induced slowdown. In the past few weeks Etsy stock has surged from the mid 160s, to just under 200, including a monster 7% gain just today. Now some of that's the more favorable environment. But the company's also made some big moves. early this month, Etsy announced its buying depop as a clothing resale platform that's beloved by Generation Z. Then this morning, we learned that they're buying ELO seven, basically at sea in Brazil, and that's what drove today's rally. So can this thing keep boring? Let's go straight to the source with Josh Superman. He's the president ceo of Etsy to get a better sense of these deals and his plans for the future. Mr. Silberman Welcome back to Mad Money. Hey, Jim. It's always great to be here. Thanks for having me. Well, let's start with the news that day, because it's quite exciting the acquisition of ELO seven or E low Sachi. And what does it mean for shareholders, Betsy?

31:15
Well, you know, I think the past year has really demonstrated how valuable a business can be like Etsy. And that gives us the strength to lean in and be investing right now. And the opportunity to acquire the Etsy of Brazil. Brazil is one of the biggest economies in the world, but its ecommerce sector is still in just the very early days of penetration. So we think ecommerce is really poised for growth in Brazil. And ILA seven is one of the top 10 e commerce sites in Brazil, it's the Etsy of Brazil, it's really well positioned, we think to capitalize on it. So we think it's a perfect marriage.

31:50
Now, it seems like they do have a huge number of people on it. And I'm told when I did my research, that Brazil is the fifth largest e commerce market. So you got a possibility of melting the great technology you have with what 1.9 million people who shop on you, oh seven, this is going to be very, I think, additive. I know you didn't say added to the numbers, I'm talking about additive to the ethos.

32:14
We think for the future, you know, and this is all about growth potential over the medium. And over the long term. We think it's it's a fantastic addition, you're right, there's 1.9 million buyers, 56,000, sellers, 8 million items for sale. And just like that, see, these are custom handmade, made to order items. I mean, this this business is really modeled after Etsy. So it's a great opportunity for us to come into Brazil, and in Brazil, the opera, the ability to pay easily online shipping, all the things we take for granted in the United States, those are just developing in Brazil. So the opportunity for Brazil's e commerce sector to grow faster than than the US we think is very meaningful over time.

32:55
Are there things you actually went on with just kind of blow our minds because it's nothing like anything we have in this country?

33:02
You know, you oh seven is a lot like et CIE, that it's a little more focused on special events. So it's more focused on things like baby showers and weddings. In fact, those special events account for about half of ELO sevens business, but the pandemic has allowed, obviously, that part of their business has been hard hit during the pandemic, we expected a really bounce back coming out of the pandemic. It's allowed their home furnishing business and their clothing business and some of their other lines to really develop and grow, you know, during the during the past year. But you know, we think it's a great marriage because it's actually a lot like Etsy.

33:35
Well, now you we can't, we got to take this moment to be able to talk about D pop, which is a site that has captivated captivated many, many people. My daughter, who sells on Etsy says that it is the most exciting site, we've got people on our staff who are addicted to it. So D pop obviously has already been a homerun for you.

33:55
Well, deep hop is we think the most exciting company in the most exciting sector in resale. So resale is is where a lot of activity is happening in e commerce. It's growing super fast. And if you think about within resale clothing is probably the biggest opportunity clothing is the biggest category for sales for online and it's a great category for resale. And Gen Z is the most exciting audience 90% of shoppers on depop are under 26 years old, they're Gen Z Gen Z is going to account for a quarter of the world's workforce soon so we think buying a brand that that is the brand of Gen Z and the most exciting category of resale is we think a great opportunity as well and just like yellow seven it's a business model exactly like a like Etsy it's a business model where sellers sell directly to buyers without logistics or or or fat or you know warehouses or factories in the middle and it's a it's a business that faces the exact same opportunities as as Etsy how do we make search and discovery work really well? How to make We make trust and safety work really well. How do we run a global payments platform really well? How do we do performance marketing? So there's so many of these common challenges where Etsy we think, is really well positioned to help.

35:10
Would you ever think about taking Ethereum? Younger people like aetherium? Some of these these goods are a little a traditional or is that just shouldn't be at one the table?

35:24
Someday, of very possibly I've owned Bitcoin for many years. And I'm a believer in cryptocurrency, I know you are, too. There aren't enough people who have it and want to use it everyday for tender for that to be something that we would prioritize on our roadmap today, most of the people who own it are using it at you know, for investment. But at some point, I hope and I think you probably hope that cryptocurrency becomes widespread enough and becomes a common form of tender and is something that people are really regularly asking for. And at that point, we prioritize it on our roadmap.

35:56
I couldn't agree more. One last question. I know you care passionately about the rain forest, and about the ecosystems, is there any way that you Oh, seven can do good now that are alive with you, too, for the rain forest, if you don't, because we know that Brazil's got such

36:12
problems. It's heartbreaking what's happening in the rain forest right now. And it's, it's really one of the biggest challenges we face in terms of global climate change. And as you know, as he's committed to be carbon neutral by 2030, that will extend to depop. And to ILA seven, as well, of course, as part of the overall Etsy ink roadmap. So with some footprint in Brazil, maybe we have an opportunity now to be part of that dialogue. For sure. It's the common values of ELO seven and D pop, they both share at C values. And that is about recycling goods that is about building a sustainable business that's sustainable for the environment. It is about caring about diversity and inclusion. That's really important to why we thought that a partnership with the law seven and with the PUC matter, because they share our values, and we certainly want to be part of that conversation.

37:02
Well, thank you so much, Josh, for thinking of our shell for coming on. I thought this was a great acquisition. I know from a car library, it can be just huge down there. You guys will make it right. Josh silver CEO of Etsy. Thank you so much for coming on there, buddy. Thanks. Look at what can I say? You know, I'd like that scene from the teens. And not just because I live down the block from it. But Josh has done an amazing job. Mc is still a buy.

37:30
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.

37:57
And then the lightning round is over. Are you ready? She was Jimmy in this video. I've got a question about a Canadian company that doesn't get much press on the side of the border. My thought is like the lspd I've been liking these guys. I've been liking this lightspeed. I want to have more. I think they've got a pretty good story to tell. I say yes to lightspeed. I want to go to Matthew in New York, Matthew.

38:27
Hey, what's up, Kramer? Hey, Joe. Thanks for taking my call. Of course What's going on? Not too bad. Not too bad. All right. So you're a chewy guy. I know. You're a pet lover. I am. We got we got to give Bob some love here because

38:38
I really believe in that. You do. I do. I really do. You really do. All right. Look, I'll tell you what, it's damn 33% ami. Interesting, but you know I am I am a chewy guy. So we'll have to then let's let's have a one. Let's have the original bark on and then I can make a judgment. Okay. All right. Let's go to Jake, Indiana. Jake. Hey, Jim. I'm interested in opening a position into very global group. I just wanted to know your opinion on the stock and where you see it going in the short term. Ernie global very global. No, no, give me a second here. Very cool. Oh, give me a second here very well. I had burry on this is a Pennsylvania No, this is the Evansville one. That's why I'm confused. Yeah, this is they make plastic pipes and make closures isn't very good coffee. very mundane and very good company. Let's go to Robert Maryland, Robert. Koch. The chill man doing Joe's doing fine. What's happening? I need your help with Coinbase because it's like the crypto market goes to Coinbase and China dropped out is now the good time to jump back in. I think just by theory, Scott despite theory, I think it's theory and his true self very nicely. Let's go to Rambo in California. rainbow

40:02
Rainbow from San Jose, I'm here with my six year old son Jonah. Okay, Jim, Jim Jonah is very socially conscious and invest with us. He recently asked me to buy him stock for a company that helps address homelessness. And here is Jonah with his recorded question.

40:20
I asked my staff to guide me in because it only allows money to have in capital but the stock has gone down 10% to I buy more food yourself.

40:36
I like Whirlpool very much. I think I think they got a guy pitchers running it now. I think he's driven on the fire. And that ladies, inclusion of the

40:48
lightning round is sponsored by TD Ameritrade. investors may want to end on some mean stock pandemonium. But the markets not so easy as read it and forget it. primer sets the record straight. Tomorrow, kick off the trading day was squawk on the street. Mine from post nine at the nysc

41:19
you entered the White House standard right now. I mean, you're some years. Where are you in the secret location? Jim? trailing with some yard issues. Yeah. So you know, what can I say? It all starts at 9am. Eastern.

41:45
The CEOs of small cap companies keep asking the same question. How do we become a meme stock? The answer? Well, first, let me say I'm probably the worst person to ask. I'm one of the few people in the media who has been dumb enough to really antagonize the Wall Street that's mob, so they're certainly not just listening to me. Just read some of my replies net mentions calm with Twitter. But I totally get why companies want to cynically gain the boosters in order to raise money. The desire to become a meme stock is really the desire to have your stock bid up by Reddit followers in the hope that you can do a secondary offering at higher prices and raise a bunch of money for your company or yourselves. The means he has one another AMC s company would have gone bankrupt right except Wall Street bets engineers short squeeze that sent the stock into the stratosphere, allowing him to raise capital which is what they need. If you're a movie theater company in your clothes. They want another GameStop where a savior merge Ryan Cohen, who created a movement to smash the shorts he was even behind, but he profited from it. Both cases have been wildly successful, though GameStop has pulled back substantially from its highs, but still it's run well run from 20 hours to $213. last six months, not bad. Of course CEOs want to emulate that performance. However, if companies really want to draw the attention of the Wall Street bats crowd they want to be careful for what they wish for. Remember, the thing that attracts these meme investors is gigantic short position. No company I know ever aspires to have a large short position against it. You can't just go out there and hire short sellers to set up a squeeze. You have to do badly enough that lots of money managers want to bet against your stock. Nor can you hire someone to compose a devastating short report that's called just the culture stock where you as diabolically brilliant as that might be. There's no Hindenburg research for hire. A lot of people hate short sellers, but they tend to be honest guys who simply want to profit from rooting out questionable management teams tend to however I can say this. Right now the shorts are on the run. like never before. They're a bunch of banned bees, endangered forest animals, I think any stock with a shortage just over 10% could be ready to rock and roll with a simple reach out via Twitter. All they need is to point out a minor positive catalyst and mention the size of the short short interest that's out there. And that's what gets the Wall Street that's people going I bring this up because there are a lot of honest companies out there that need money. And I would love it if they could get Wall Street beds to fundraise for them. If the means your sense that there are shorts to be crushed, they will take a stock to infinity and beyond to make it happen. Of course it doesn't make these things invest one as we saw with course here gaming the moment that means there's push the stock up executive started filling out forms to do some insider selling at elevated prices. Unfortunately, most of the time when a stock has a large short position. It's because the underlying company is doing very badly. They have ugly balance sheets and negative prospects. Aside from a few exceptional situations where the shorts go in frayed stupid gang tackle think GameStop or incredibly Bed Bath and Beyond which doing well. The short sellers tend to be smarter than the law firms or at least they were smarter before Wall Street bets made it so much more perilous to bet against stocks still you don't get lots of short sellers bashing your stock unless you screwed up in screwed up badly. Long story short, you can't aspire to be a mean stock that means aspire to be shorted and the shorts just aren't that stupid to take the bait unless something is genuinely wrong with your business. However, if I were still in the business of shorting stocks, I would close any trade that started bull crowded, meaning anything that has more than a 10% shortage. Because in this new world, that means you have a tornado you're back from Wall Street bets and they will not hesitate to pull the trigger. I like to say there's always a bull market somewhere and I probably tried to find it just for you right here. Oh, Mad Money. Um, Jim Cramer See you tomorrow. The news was Shepard Smith starts now.