文字起こし Mad Money w/ Jim Cramer - 12/06/21

ジムクレイマーのMAD MONEYの文字起こしになります。米国株を英語学習を通じて投資したい方に向けて作りました。皆さんの反応を見て改善点や英語解説などい追加して行けたらと思います。とても有益な番組なのにジムの英語が難しくて悩んたのをきっかけにこのノートを作成しました。 聞き取れない部分もあるのでご了承ください。是非Podcastを聴きながら合わせてこのnoteをみれば、様々なアメリカ英語を聞くことでリスニング力を鍛えることが出来ると同時に、タイムリーな米国株投資情報を得ることができます。イイネ！と思った方は投げ銭いただけると嬉しいです。

‎Mad Money w/ Jim Cramer：Apple Podcast内のMad Money w/ Jim Cramer - 12/6/21

I'm Cramer. Welcome to Mad Money. Welcome to America of your one my friends to try and make some money. My job is not just to entertain but educate and teach you so call me at one 800 743 70 or tweet me at Jim Cramer. We clean the Totems of this business. And often those totems actually lead us in the right direction. Last week, I told you the market was oversold the deepest oversold level since the pandemic began. And I thought that seemed extreme versus the backdrop. Remember I said sentiment got much negative so unless we got a sudden spike in COVID, fatality not cases, they tallies so far, so good. We're due for a bounce, which meant it was time to hold your nose and buy something sure not the downward 647 points s&p jumped 1.17% and the Nasdaq rallied point nine 3%. It was a textbook oversold bounce. So therefore the question is, are we looking at a sustainable rally or merely a temporary short squeeze may hedge funds for quote with their proverbial pants down? There's only so far we can go when sentiment alone. And that's what drove this sentiment. Okay, we need to see something tangible, something real. So let's see how they unfold. Sometimes that gives us the clue. Now, the mornings trading begins about an hour before dawn. When if you watch the bottom of your screen, you could see many prominent NASDAQ names getting crushed, or the s&p 500 names held up. Well. What's weird about this, though, is it's a pattern that starts in the early morning hours. For instance, if you're up at 5am, to watch CNBC, you'll typically get a sense of what the day might look like. And this morning, the sellers were getting insanely bad prices almost like no matter what tech names, they don't, they were willing to obliterate the stock, it was almost as if they wanted to drive the NASDAQ down as much as possible. And you know what, I'm not paranoid, that is a real possibility. These these early morning moves are done on almost no volume, though. They feel as if someone is going to give a technical term here, painting the tape. And that's the way to influence stocks so that they in this case, look heavier than they rarely than they really are heavier meaning more likely to collapse. Now, I'm not going to accuse anyone of market manipulation, I can't prove it. But this kind of action certainly raises eyebrows. The moves heavily concentrated from five to six him were commented on endlessly by market observers, and therefore they set a negative tone narrative. Could they be doing it to take the whole market down? Is that what these traders are doing? Or then again, maybe the sellers are just so stupid, it didn't know what was going to go on. It is an asset hold we did live by the s&p said by many caps. Still I wouldn't place too much faith in their stupidity. Apple was the most important stock in the NASDAQ that came out strong right out of the gate. Other than Apple, though the early morning sell off in tech seem totally out of touch with reality. And I do believe there were people trying to create a climate and reality of fear. And they almost succeeded in doing that getting you to sell your stocks. I didn't want that to happen. Hence the nine o'clock show. Now generally speaking, this market reacts not to the ephemeral, but to three things reacts to earnings, the Fed and COVID. Obviously, we had no earnings this weekend, right? It's not like Bitcoin goes down. 20% Thank heavens at least stocks don't trade like that. The Fed already spoke last week they're done speaking, and that leaves COVID. But the COVID News this weekend was actually positive. If you watch the talks just this weekend, you know that there's so far so far, and I had to keep saying so far nothing special about this Omicron strain, except that it could become the dominant one and more important, it seems to make you less sick than the Delta variant. Dr. Gottlieb couldn't confirm that Dr. Copel can either but there's my two, my two totems in that business. If fear though breeds selling, then less fear should be less selling or actual buying. And that's what we only got this time buy when the market opens. So I'm begging please don't take your cue from the phony pre market action. Wait for the real action if the mornings research comes out and traders actually short the work. The higher the volume, the less likely it is that the stocks are being manipulated with that in mind, how do we get to today's action? Okay, markets have multiple leaders. Sometimes it's really the fang stocks that lead the way and there was some good action and everyone that later but the best leaders are the transports. The transports why? Because they show you the commerce is accelerating right here. And then the second best are the banks because they show you that lending is expanding when they go higher when these two groups are in good shape and go up in tandem, it is very, very rare but the pin action is

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tremendous. Today right from the get go the airline in the travel stocks took off that's an amazing sign it means The Vacationers of the world are less worried about the Omicron strain than their governments are. Historically these stocks are trading down on travel restrictions. This time the buyers of Marriott Delta United Southwest and so many others told you it is the authorities are boys who cried wolf. Were perhaps COVID has become an acceptable risk. Fours the acceptable for those who are unvaccinated, but reasonably and yes, rationally acceptable. If you've got your shots, typically three. Remember the thin wall street fears most isn't another vicious COVID outbreak. It's about a lockdown. They don't want to see a lockdown. I think a vicious winter COVID outbreak, it's highly possible a likely but a lockdown is no longer in the cards. When these travel stocks took off. That's what they were saying. It means you can afford to take more risk when you can buy some of the more aggressive stocks that are now down. Even better than that though. It was the transports the show even better than the transport show. The backs Oh, that's where the excitement was today. When you see the banks move up, you know you're gonna have a good session. It's the most important group because it tells you the economy's buzzing and the market can handle a rate hike. And that's crucial because the markets been in a funk ever since Fed chief Jay Powell retire the term transitory when it came to inflation, the term transitory become our lovey blanket. So once that blanket was pulled, it got ugly, thin enough today the bank shrugged it off, though. That's Chenkin there's the banks are based in the markets offensive line, you don't notice how important they are, but they allow you to spring a running back industrial or a fleet of foot wide retail receiver. Okay, so in other words, what's your Fleet Foot what? What your I'm trying to this is difficult analogy. I'm gonna grab the ball. Okay, so there's an offensive line. And that is the stocks that I'm talking about the banks and the transports, particularly the banks, they blocked for you so you can run down field, okay. And the ones that want to run downfield are the industrials. And then you want to pass the ball to the retailers. So you have time in the pocket because of the offensive line. The offensive line typically the backs. Amazingly, they can't be considered leaders have but the beat down Chinese stocks failed to keep falling to again, sometimes it's about the absence of negative So now we'll review banks good. Travel good, China not bad. Which brings me back to sentiment. I did some work with my friends at market edge this weekend, trying to identify an action point where this market can bounce on the candlestick, the public's collective decision to continue traveling as represented by the rally the transports market edge puts out this s&p oscillator and it's a reading who's out every night I pay for it, which measures buying and selling pressure in the market. When the oscillators at zero, we're neutral. But as it moves toward the positive bits, it'll just be careful. That means there's too much both just ready for for mirror image of the downside. As the oscillator gets lower, it means the sellings become too severe. And that's how you get that coiled spring I was talking about last week ever since the pandemic began. We'd know one thing about sell off when the oscillator that the s&p keeps track of this market edge. When it trades to minus five. It's like a magic line in the sand. Things get a little dicey when the oscillator penetrated the five level last week even breached seven, negative seven that is it looks like might be on the verge of something big and bad. Maybe we get some horrible Omicron numbers over the weekend. But when nothing happened bad, we finally got the net oversold bounce. How long can the String class? Here's the bottom line. I don't see much in the calendar that could derail the bull until Friday. When we get to consumer price index number which I expect to be red hot. But in this market, four days is a lifetime. And for traders today was a bird in the hand. Oh, maybe two of the bush comes next week. Let's go to Stefano in New York State File.

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Professor Kramer loving being a member of the investment club. Yes.

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Yes. So good.

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So thank you.

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So 2021 has been an issue of supply chain issues. We've seen in all these companies, especially retailers that have reported this specific retailer has been able to control their own supply chain issues, but it's still down 5% for the year compared to the s&p that's gone up about 20 What is going on with Walmart stock

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Well, you know you remember the Investment Club. We're gonna do a thorough vetting of this stock on our Thursday club call, but I will tell you I find The action is more disappointing than the actual company, which I think is doing fairly well. That said, I mean, you know what you're going to be seeing a new thing new video worker home with my colleagues, that Investing Club where you'll see me literally kicked myself because I was so upset that I didn't let more Walmart though when it was in the high 140s Stefano, thank you for those kind words. I think the strength is going to last this week. But because there's just nothing until Friday, it could be real cool. I know that sounds like a short term, but it's a lifetime for some people. Well, man tonight, the turbo charts cloud stocks has hit the brakes. Well, what was it what these cloud stocks down to earth, I'm piecing apart the action over the last bunch, you can make the best decisions. And now the damage is done is it's time to start picking among the rubble. I'm gonna give you my take and share some stocks on my radar. And CBC revealed a new index the CBC index Gen 50, highlighting 50 stocks that are most important to Gen Z and millennials I know a lot of you watch Joe on they take a closer look and that a highlight some of my favorites, so stay with Kramer.

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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 B C's workforce Executive Council is a premier group of C suite Human Resources executives from leading companies across the country. It offers a members only portal and chat plus exclusive industry content. With access to Breaking News calls and digital networking experiences. The network and resources HR leaders need now applying to the workforce executive council at CNBC councils.com/wec.

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The last couple of weeks have been absolutely brutal for vast swathes of this market. And while some of these groups did rebound today, their stocks are still done huge. We keep hearing this meltdown described as a risk off moment for the market. I've always hated that terminology. I think it misses the most important dynamics here and it confuses you. What we're really dealing with our severity, several concurrent declines. You've got the total breakdown of the pandemic, please think Zoom video peloton Roku, where the decapitation DocuSign and that's been going on for a while now. But it's accelerated dramatically. Here. You've got the IPOs from the class of 2021. Almost all but you're struggling at this point, because they came in way too hot. And they got burned. Water was supply. We've had a record number of deals this year, and sooner or later that always ends badly. You've got the Chinese stocks group that's been slow motion train wreck

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since summer, but got much worse last group and SEC finally form wise new rules that result in the delisting of many Chinese stocks that don't comply with simple us regulations. You got a nasty sell off and anything connected cryptocurrency, Bitcoin down 25%. From its highs less than a month, you've got some specific retailers that are being strangled by supply chain was even as many of their competitors are in great shape. Then there's the most important group to this market, the one that's in the center of the blast radius. And here, the ultrafast height growing most US stocks, most of which are cloud based software names that traded sky high price to sales not earn these sales multiples. Well, they have no earnings. And this is the group that is we're focusing on now. You know, I have been a huge fan of cloud companies for ages. I still think we're early innings, no longer infancy. But I really like the group in the last year their stocks have been trading though. As I've liked them, I have to admit this, the stocks are trading it what some people could say are ridiculous valuations. Now the Wall Street is turned against turbocharged growth stocks, the whole edifice has indeed come crashing down, even though many of these businesses are still putting up excellent numbers. So tonight, I want to take some time to do a cloud damage assessment. You need to understand why this is happening and how much worse the pain can get before it's safe to start picking these former high flying stocks. Then I want to help you pick the best ones to circle the wagons around at a lower level because the clouds not dead at all, but the stocks. It's getting over done. First of all, let's talk about how we got here. You got to understand we're dealing with a sector rotation and some of that has to do with inflation worries there are few things more lethal the high flying growth stocks and inflation. These these stocks are what are known as long dated assets that trade on their earnings prospects many years down the road and inflation erodes the purchasing power of these future earnings. So the Consumer Price Index jumped 6.2% in October and the Fed chief decides to retire the long term. The term transitory when describing inflation, instead warning a persistent inflation. Well, money managers know what to do, they turn against these stocks. Plus, now investors are worried that the Fed will tighten sooner than expected, and it's putting enormous pressure on this entire market. Second problem going to this monstrous hell of these turbocharged quote stocks are speculative. And speculative assets tend to trade together, because they often have the same shareholders into computing, of course, to ETFs That's why you always hear this risk off talk when cryptocurrencies new IPOs and spec start falling apart as they all have, the pain tends to spread to the highest value growth stocks to all this has created a dynamic where investors are eager to sell first and ask questions later. Even if today's rebound, I think this is something you still need to be wary of. And we get a hot CPI number in the week, we're gonna be right back in the soup. Third problem in a glass half empty market. A few bittering supports Kennedy question tire group, even when there are plenty of good original perks from the same industry. In this kind of environment. money managers tend to accentuate the negative Oh, eliminate the positive. So it doesn't help the day have been. There have been some a couple of quarters Wow. From the cloud court over the past several weeks, Twilio Miss numbers got pummeled then DocuSign delivered a hideous disappointment last week and the stock almost cut in half. Now it doesn't matter it's service now. And workday and Salesforce don't believe what you heard reported strong results. The results were good. The forecast not as good as I'd like but nobody's getting any credit for doing well. Unless their stocks already got crushed. Going to print like we saw the CrowdStrike and snowflake one of my absolute favorites. But even in these two cases, both stocks coming down substantially from the highest. So what we're gonna do, we're gonna zoom in on the cloud place and assess the damage we put together universe of 15 names. You got the cloud kings, that's Adobe Salesforce, ServiceNow, Splunk, Twilio, VMware and workday. You got the cloud princesses Koopa software Porter tonight, it's not clear how good it is. HubSpot just crushed it a New Relic Okta and Atlassian. Then went through the top 10 Holdings with largest cloud ETFs and added another 26 stocks, which brings the total of 38 father dozen more that deserve consideration, including new IPOs like app Levin monday.com. And what was that hot Qualtrics center one, where UiPath although some miscellaneous names that are too important to ignore, again, like CrowdStrike, DocuSign and new software, when you look at all of the cloud stocks, okay, all 50 As of Friday night, all but one were down more than 10% from their highs, open one. On average, they were down really 33% median down 29%. Before today's rebound, a full 72% of these 50 Cloud stocks were in official bear market target within a bull market, meaning they're down more than 20%. That's amazing. Half of them are down at least 30% A third of them are down 40% and 10 of 50 have been virtually cut in half. The biggest losers are wix.com Oh God, their stuff is so good music at a Brooklyn restaurant and fastly, which is the best way around the web. They were down 60 and 70% respectively. This Friday's close mean fast these fast but

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can't have hours. However, many of these cloud stocks did peak a long, long time ago. For example, the four biggest losers all made their 52 week highs in January or February. Their stocks like Zune were huge pandemic winners in 2020 can come back Earth is the world's started returning to normal. That's it. Nearly half of our cloud stocks peaked in early October or November. And they're at the epicenter of this recent meltdown. As of Friday Asana was down 54% matter of weeks Sentinel one down 41% Put this week monday.com and lost nearly 30% No reason Digital Ocean or 37 CrowdStrike, whichever just zooms down 34% in less than four weeks guys, these are incredible bear market moves. Now when you drill down over 30 Only 34 Only 3040 and 50. Cloud stocks we looked at are expected to turn a profit this year, and nearly all of them remain insanely expensive on an earnings basis. Only 13 out of 50 traded less than 100 times earnings. That's crazy. Those 13 have generally held up better with the median down 17%. From its peak still nothing to write home about. What we care about with this group are the price to sales ratios though. That's how they've been valued. On average at the respective peaks. The cloud names are trading at 27 times sales. Now after the meltdown, they're trading at around 18 times sales. In general, the ones with cheaper valuations develop better than the ones with higher valuations, although the most expensive aren't doing that much worse than the ones that trade at 20 to 30 times sales because the most expensive ones tend to have better stories. Oh my how much money's been lost by the cloud. just brutal. The bottom line though, the cloud stocks have been eviscerated. But even here to this decline, they're still pretty darn expensive by any metric Do you care to use? So how do you pick among the rubble? Well, stay tuned after the break. Coming up. I'm thinking to these 50 Cloud stocks and share it. This is the beginning of the cloud solve. Or maybe it's new the end, then Cindy says next gen filthiest, putting millennials and Gen Z, like into focus on bringing the list and seeing if any of the names that made the index could be worth owning, or at least looking at having multiple people testing positive for COVID on a Norwegian cruise ship. This weekend, I'm taking a closer look at COVID transmission or country and what it means your portfolio stay we're cramming.

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For the break, give you much needed damage assessment for the hardest hit groups over the past few weeks. The cloud stocks which we talked about endlessly on Mad Money, while we got a respite from the pain today, although it was the weakest group in the entire stock market. The same thing happened last week, and the group still had another monster leg down. So when will the cloud stocks find bottom is going to be found this way? We don't want that. Well, let's turn to history. I think that's our best hope. In particular, I want to focus on the last great meltdown in the cloud stocks in the fourth quarter of 2018. Because that's the best way to find clues about how the current sell off will unfold. For those of you who don't remember the fourth quarter 2018, which was horrendous. We got hit with a market wide sell off that only sent the s&p 500 tumbling roughly 20% from peak to trough it was really ugly. Over the same period the NASDAQ lost 20% of its value. There was such horrible bear market action. I remember calling into the judge's show one day, and actually saying to someone who was really saying the markets gonna go slower, and enough because it was that ugly. I was right. Back in 2018. We got a one two punch that sent the market into a tailspin and the pain didn't stop until the bottom on Christmas Eve to Santa rally. First, the trade war with China started heating up in early October when former Vice President Pence gave a very aggressive speech at the Hudson Institute seems pretty prescient if you reread it, the second punch is much more important. It's the reason this moment feels similar to 2018. Just a few days earlier, newly installed Fed Chairman Jay Powell made some very hawkish statements, he vowed to move aggressively to racist rates even going so far as to say he was willing to overshoot as long as it meant we crushed inflation. Of course, at the time, we barely had any inflation. But that was like the old Jay Powell. And I think the disaster in 2018 is what made him revise his whole approach. And that really has been fantastic for the stock market. And by the way, I think for the country, back then the Fed was already in the process of raising rates. They've done it three times already in 2018. They didn't get out of that December. That's too quick, too many too fast. On top of that, though, Powell also told us to expect a series of lockstep rate hikes in 2019. And that terrified Wall Street. It's what quest the whole market, but especially the stocks that we're talking about the cloud based software stocks, it's very reminiscent of what happened last week, although this time pass Hawksnest turned well turn these wireless impressive in 2018. So what happened to the cloud stocks back then, since the break, we showed you a list of 50 cloud software stocks, but only 33 of these existed the first quarter 24th Quarter 2019 How they do at the time, okay? When average 33 Cloud stocks plunged 35.5% from peak to trough in the fourth quarter of 2018. Hey, listen, as Friday's close, we'd already seen the cloud stocks tumbled 33%. From their highs, this time around, you might be tempted to say well, that means the worst is over I say maybe at the same time the larger more established companies like the cloud kings held a much better than the smaller more specular ones. Maybe we're back on this path though. Now looking back that 2018 meltdown turned out to be an incredible buying opportunity. With a few notable exceptions. Roughly half of these cloud names have now doubled or more from their 2018 highs and if you put the highs and if you bought them near your low their lows you did even better. However, there are six of them that never fully recovered spunk New Relic box Dropbox momentum, which is the company formerly known as Survey Monkey and Zahra. So for the most part by the dip made sense, but you had to be selected because some of these flamed out. Of course, there's one huge caveat the 2018 analogy. After tightening that December and watching the stock market collapse, Jay Powell changed his tune. By early January, he reversed himself completely saying the Fed was in no hurry, raise interest rates and promising to be flexible and policy. In fact, by late 2019, the trade war with China was in full swing. Powell actually started cutting interest rates. This time, I don't expect the Fed to back off until 20. Unlike 2018, this is really important. We actually have real inflation now. Why do you think it's persistent, transitory? I don't care. There's no denying it. Plus, the economy's worry, we got a 4.2% unemployment rate for heaven's sake. So something like a 35% decline might be the full extent of the dam. So Cloud stocks, if we're saved by the Fed but I just don't see that happening this time, which means we could be looking at more pain. What if we search for price targets instead? levels where the cloud stocks became a could become more attractive? This could help us right. Okay. First, it's important to recognize that many of them already have reasonable valuations. 18 of the 50 names that are cloudless have single digit price to sales ratio, yes. Which I have no problem with. That includes Kramer face salesforce.com, which is owned by him and Chapel trust, and fellow cloud King VMware. Then there's New Relic, which has become a terrific turnaround player this year before the recent meltdown. In short, if you want to start picking among the rubber on the cheap cloud stocks, will these have already come down enough to be worth buying? Very gradually on the way down. Now, these growth stocks trade based on what's known as the out years. So we should also look at the 2023 sales assessments because in a month 2023 We next year, on those numbers there, there are eight that sell for less than 10 times sales and those are workday, which you know, I like very much five, nine, I had them one good quarter Twilio not that good a quarter, but very good long term prospects. Those are the ones I like, what about the more expensive cloud names? Let me help you come up with some downside targets here. There are eight stocks that trade between 10 and 15 times sales based on 2023 estimates, let's paint with a broad brush and say they'll become more enticing under 10 times and that gives you got Qualtrics Digital Ocean and service now they can be viable down about 10% from your Koopa software might need to take another 13% off to decline 28%, Adobe would have to fall 29% Low there'll be a bad fit for this method, because it's one of the few that trades on earnings, and it's already got a fairly reasonable valuation on earnings basis. Then there are the cloud stocks to trade between 20 to 30 times sales currently, but more like 15 to 20 times sales using 2023 estimates. Go Quietly. These are very expensive. Let's say they're more enticing at 15 times sales. Some of these like UiPath are already less than 15 times sales have used 2023 numbers though others are less than 10%. Wait like HubSpot. You see that today. CrowdStrike won last week. How about the 30 to 40 times sales cohort oh man roughly 20 to 30 using 2023 estimates. In this new world, you probably don't want to pay more than 20 times sales for even some of the strongest cloud stocks that case MongoDB and Atlassian. We need to sync about 5% to that to reach the level based on 2023 estimates. Although the former monk would give me a porter to blow out this very evening and it's climbing higher for the close a unity which I liked very much that's got a full novel absent CSKA would need to lose 15% And that's actor was down 12% Just today, but it's nice to even think about them being within spitting distance of 20 times sales. Finally, they're the highest flyers the ones that currently traded more than 40 times sales Bill comm Sentinel one ports this week, snowflake and Cloudflare let's say they have to sink to at least 30 times sales before they're enticing. If you use 2023 Number setting the ones already there. Snowflake only needs support another 10% Not bad. You know I think snowflakes terrific. Here's the bottom line. The best case scenario, this cloud meltdown turns out to be like 2018 which means there's really not much downside left. But without the thing coming to our rescue. There's still more downside we're likely to solve isn't over. I think there could be one more swoop before we get the Santa Claus Rally that we're expecting so you got to pick out your favorites and then wait for them to sink to even more reasonable levels and some and then reasonable levels at all for others before you start buying puts we're just mad money ahead Gen Z and millennials are a loyal group of consumers and seriously is put their favorites into an index called the CNBC next gen 50. Auntie get closer look at the names pick it up my favorites, then COVID used to wreak havoc cross country so I'm discussing a new concept that might help in the fight against the virus. And of course all your calls rapid fire tonight, so the lightning round, so stay with Kramer.

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The market came roaring back today man whose big news most of CNBC is next generation 50 list. You gotta love this list. This is a new index for stocks that are most relevant to millennials and Generation Z. Now it's a perfect combination of senior growth stocks that can be seen as steady winners in junior growth stocks that frankly can't sink or swim. Lately, the market has little patience for growth stocks, you know that even today, but sooner or later this rotation will end and when that happens, you need to have your shopping lists ready so you can pounce. That's why I want to give you my top five junior and senior growth stocks from this unbelievably great CNBC next generation 50. I mean, as you see them behind me, it's all the companies that you love. It's all the companies that you talk about your friends, number one senior growth team. Yes, it has to be Amazon. Now it's not just because it's the best retailer in the world. It's because Amazon Web Services is taking over the rest of the world with this incredible cloud infrastructure business. I also like the devices notably Alexa and the Amazon Prime Programming, plus their advertising businesses growing so rapidly that it could soon rival the web service business in terms of profitability, not sales. Just a lot to love for this mega cap stock. Second best senior growth stock, no secret alphabet, the artist formerly known as Google, you know, they dominate the lucrative research lucrative search market. But did you do this? To get the next leg of growth here? We'll come from Google Cloud, which is the same business as Amazon Web Services. Of course, there's also Microsoft Azure. Well, Alphabet has disappointed the last time it reported. I think that's because they didn't spend enough money to monetize its enormous user base. That is a high quality problem. Watch Google Cloud take off. Number three is yes, it's most been your bear market. I don't care Tesla, the electric car pioneer still doesn't have much in the way of meaningful competition, at least not until a Ford builds out to four bros out their entire electric product line that's gonna take a little than a couple of years, right? Millennials want electric vehicles, and Tesla is the only one that's making them at scale. That's the key word scale. Although it's pulled back hard from its highs A month ago, I think it's still got a lot more upside, especially with China finally easing up on American enterprises, possibly as part of some sort of charm offensive ahead of the Beijing Olympics this year, they better work faster since diplomat boycott. For is one that to me, it's when I talk about Annecy. Maybe people just don't know what that was Palo Alto Networks. I think cybersecurity is one of the great quote stories in the world right now. Especially now that we have pivoted to the hybrid workplace we're far more vulnerable. Nobody saw this change coming faster than CEO Nikesh Arora who's turned Palo Alto into a powerhouse. The stock got clocked today. Hey, you know what opportunity. Okay, I know when stocks go down your opportunity. Take it from me. This is a rare break in that stocks price. Fifth and finals here, growth name. How can I not mention apple? Right now the Long Knives are out for the Cupertino classes. We keep hearing that they've told their suppliers that they don't need any more chips because sales are ugly. Now that's possible. But it's broccoli these Apple suppliers storage can be unreliable. As I said last week, the first week of Apple supply club is you don't talk about Apple's supply club, given the strength of the consumer and all the improvements the iPhone 13. I'm skeptical and judging by the stocks rally today, maybe the markets coming around in my point of view still, even if Apple experiences with short term turbulence, they've got the best products that are beloved by millennials, and that's not going to change anytime soon. That's how they think of Apple. They think of it as a product company. We think of it as a stock, maybe that do both. Alright, how about the junior booth, this is where it gets real interesting. These are the smaller what's the next generation 50 index. A lot of these are Uber Junior.

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But Uber of course is not Uber Junior. It's big. This is a tough group to choose from right now because the Juke wheel cohort has been obliterated over the last few weeks. Remember the top of the show I said it was even being sold off hard in the early morning. That's the stocks. Now I always want to find the next Tesla, don't you? And I think lucid has the best chance on this list. Rivia may be away from the ravine southwest. But now that the targeted SEC investigation the merger with the SPAC to come public suboptimal the cannabis end gave me such as have a lot of promise but both industries have become crowded the federal government isn't giving them the supply they need they don't have the support Okay, here's what they really need the nationwide gambling and then a nationwide use of cannabis for recreational not getting it right now. I know the main source want me to pick Gamestop but that's more of a stock than a company. I prefer things to be the other way around. I see some potential and Dutch Bros. Now that's BRS is like don't call it Dutch Brothers place. It's a regional to National Coffee. Sure you see Starbucks, but maybe this today was fantastic. This could be the next Starbucks but it's awfully early. Uber and Lyft are millennial favorites but their profitability is far from assured. There are some healthcare names that could be interesting. 23andme good RX TelaDoc but they really bit ugly of late and they'll never be huge, like the senior growth names I mentioned, because that's what I'm looking for. However, there are some exciting stories here that could be gigantic long term winners. Let me give you my five favorites. I'll come back to these time and again, number one Judo theme is Roblox that's the online gaming platform makes it easy for users to create their own content and share it with friends. Think of robots is the true inventor of the metaverse for a while this one was viewed as a pandemic play like Zoomer Docusign. But it's one of the few that has transcended that now watch this record. I am a big fan of CO de Baszucki and I think you need to treat any further weakness as a buying opportunity. It's pretty much of a gift you're frankly next up we keep hearing it retailers don't have enough inventory thanks to the supply chain questions. We know who doesn't have that problem. It's a company called Etsy I think that Etsy shop fire that you great empowerment stories of our time. Shopify may be the fastest core but Etsy is more visible place for younger people like to buy presence. They're often more environmentally friendly than what you get in a store. They like the connection with the Creator to that said don't buy Etsy if you're looking for a smooth ride. It's always a bumpy 1/3 I like Airbnb particularly now where we are in the in the post pandemic pen endemic. Now Airbnb is a company it's already pretty much conquered the travel category. This is an interesting moment for Airbnb because this is another pandemic play made good. If the Omicron very continues to scare people that are Airbnb will once again become the safest way to travel. Nobody likes pico Telestream pandemic, plus, the technology keeps getting better and better. And that's not thought about enough. I think Airbnbs management's incredibly strong, and they've been able to stay one step ahead of everyone else. And what a nice rally for that one today. I really think that's gonna be substantially higher. Fourth, we keep hearing that even when you own an electric car, you're still playing to a coal natural gas, natural gas based grid. I heard that this weekend when I was touting well wasn't just telling the idea of EVs. Okay, but what if the moon is in phase products that help you charge at home and convert solar energy into electricity. And phase has a huge share of this business. And I think it's only going to keep growing doesn't hurt that there are gigantic credit cash credits for this stuff. Honestly, I think in face is the only solar stock that's worth owning for the long haul. Finally, I want to financial I know they're not that good. But there are two Junior growth FinTech offerings. The Next Generation there's upstart which uses artificial intelligence to identify goodbye or say goodbye to Fico. But the one I liked the most is a firm holdings. That's the Buy Now pay later company. It's taken the finance world by storm. Important these younger people totally distressed the credit card industry. A firm's got tight relationships with big retailers including Amazon. They've also got a messianic CEO Max Levchin, who wants to destroy the hegemony of credit cards and replace them with something more honest, something that has no hidden fees, no extortion, interest rates, and total transparency. A firm often comes off as a financial rebel, which matters because the younger generation always wants to challenge the man. Least until they become the old generation and they like the man. Are these junior CRO stocks. The most lucrative or the fastest growing? No, but I think that the biggest total addressable market or Tam's and the greatest customer loyalty, something that's vanishingly rare to find among younger customers, the bottom line, if you want something forward thinking of the next generation 50 list, I want you to stick with Amazon alphabet, Tesla and Palo Alto Networks and Apple for the senior group. And Roblox et Cie, Airbnb and face or affirm if you want something higher risk higher reward, classic Jr. Growth creations. Scale quick

37:35
coming up, a storm is coming. So give us a call. Kramer's got the answers to all your burning questions. The lightning round is next

37:55
is time and then the lightning round? Are you ready? Steve dead. Tommy's Jersey Tom.

38:07
Hey, Jimmy, chill. New Jersey. What's up? I love you, Phil. I'm a member of your investment club. For the lightning round because I think my stock got struck by lightning. Jimmy. I want to see what you think of my stock going forward. The stock is 10 National gaming. That's a number.

38:26
It's too much. It's down more than 40% I have to tell you. We're in the height of the game. We season coming up. Penn Nat and and DraftKings. They may go down later, but right now I think the sell them is a mistake. It just think. Whoa, they're bad. But to sell my mistake. Let's kind of Kenya South Carolina Kenny.

38:45
Booyah. Jim Cramer. You are the man I try to be the man what's going on? I'm asking about GSK

38:53
GSK is that a 5%? Yield is trying to bring out value. I think it's doing okay, not great. Not bad. It's alright to own income is important. Richard in New Jersey, Richard are you I'm good. Richard, how are you?

39:10
Good. Good. Good. Jim. Love your show. And I love your intelligence. I wish there were more people and more people on Wall Street like you very quickly. I followed a sauna Corporation now from 93 to 145. In the back any idea or kiss?

39:33
I look I actually think that people are saying you know what? It's too expensive versus Salesforce. And Salesforce just did okay, let's buy some. Let's be slick. Let's own Salesforce and not that one. That's kind of been the way this markets working. I want to go to Michael in Florida, Michael.

39:48
Hey, Jim, what's going on? I was just wondering, is Doximity ever going to go up or?

39:57
I liked Doximity I think it's a tricycle. A doctors love it. They communicate with it. And it does not stop going down. But again, this fits this pattern. I'm told that poll show we're trying to find footing for these. They're very expensive stocks. We're closer to a bottom than we were a week ago. I think Doximity is a buy here. Let's go to John in Michigan, John

40:20
says Jim, I bought the stock at 50 they recommended analysis 16 TG therapeutics Mike Weis

40:29
has not been one since the stock was like four bucks. I know this thing. This is again, they're all kind of the biotech is found very little bottom here but TG therapeutics student actually nothing's really wrong. They've actually done okay, but they got some price target cuts. They've made a couple mistakes. Let's get Mike what let's get Mike Weis back on he's he's a seasoned guy who used to work on Wall Street and we'll find out what's going on. How about we go to Scott North Carolina Scott.

40:59
Super Kramer thank you for helping us retail little guys

41:03
chill man's trying what's going on?

41:05
Jimbo? I bought foot taller here in the 30 short interest is running about nine to 10% currently

41:11
that I do the right thing? Well, I got to pay as part of our next gen 50 Plug Power is needs a better rate environment leader guy she needs interest rates to go up for it to go higher. And we don't have that right now. But I'm not gonna tell you to sell plug power in the 30s I think you can sell it in the 40s for trade and that laser conclusion of the year.

41:35
The lightning round is sponsored by TD Ameritrade. Coming up America's incomplete response to the vaccination could be putting your health and your money in peril. But are we moving on anyway? Kramer in tackles this Risky Business nuts.

42:00
This weekend we learned that 17 people are under wheezing. cruiseline holding ship for Norwegian Breakaway came down with COVID cluding. One suspected Omicron case. The ship with more than 3000 Poor departed from New Orleans on November 28. For making stops to Belize hunters in Mexico then returning home yesterday. They might say all there we go again a cruise ship with 3000 passengers. I mean, what do you think would happen? I say not so fast. The reason CEO Franco Rio has been very aggressive about vaccinations. You can't work on a ship or board one as a passenger unless you're fully immunized and you've tested negative for COVID. Unfortunately, now to start lowering expectations, two fronts, though, first through many anti vaxxers digging their heels hence why America has become the biggest spreader of COVID on earth. And second, the vaccines can only accomplish so much especially if you haven't had your booster. Maybe the market starting to wake up to this realization which is why Norwegian stock jumped almost 10% They went up. Maybe Thor's once get behind the crib, but this time in a different way. I think our government Big Pharma done a very bad job with messaging here. I can easily imagine Pfizer materna coming forward next couple weeks and being Hey, you know what, we should never have declared the vaccines were too shot regimen that was wrong. She they didn't realize how quickly the vaccines would lose effectiveness. Of course, they really didn't know it was really a way to tell I don't know. But it also turns out that a booster can jack up your protection 95%. But will people still listen, all the authorities now telling you to get a booster, it would have been much better if we had known this was a three shot regimen from the beginning. But this is not made public health or mad healthcare. It's meant money. And I think we should all be thinking about a new concept. Here's the cosmos drill into your head. It's called the concept of access, acceptable risk, acceptable risk of COVID. If you go on a cruise ship, and you know it's stopping in poor countries, relatively low vaccination rates, you have to presume that there's a degree of risk if you're not comfortable that you should just stay home. Shortly terrific. We could identify who are the most immunocompromised people and demand that they take three shots or go nowhere, as these people are now widely regarded as incubators for next gen COVID. But that would be a violation of patient privacy. The only way this truly works is if we vaccinate everyone and develop herd immunity. Something our federal system simply isn't doesn't allow us to do. In a sense, this whole thing feels like our approach to tobacco. We run very strong anti smoking campaigns, and we tax the heck out of cigarettes but we haven't been if you're going to smoke, you simply have to accept the risk of cancer. I think COVID is going to turn out to be similar. You either get vaccinated or going forward, you simply accept the risk of hospitalization or death. If this virus becomes endemic, we'll have to learn how to live with it and move on as best we can. Right now we're struggling with a new strain that's even more contagious than the Delta variant. Even though it might be less severe in terms of symptoms. We hope you want to go out and live your life you really should get your booster shot and do your best to be careful that includes wearing masks not because it will protect you but because protect other people worst case, you're much less likely to catch a cold. Some venues may insist that all guests be vaccinated and they can make you take a test before attending which I think it's the right call. But the President's messaging needs to change. Biden should say you can help minimize your chance of getting sick, but the vaccines can't eradicate the virus unless everyone takes them. So take your three doses, live your life, and let's move on. I like say there's always a warm market somewhere. I pumped out a plan just for you. Right here on Mad Money. Jim Cramer see tomorrow.