Transcripts For CNBC Mad Money 20240714 : vimarsana.com

Something. The best stocks, theyre never cheap. They rarely come in. And when they do, you got to be ready to pounce. Buy, buy, buy the good news, rarely is not the same as never. Every now and then you do get meaningful pullbacks in truly high quality stocks. The bad news, when those pullbacks happen, most people tend to be too afraid, scared to do any buying. And you know what . I cant blame them case in point. The stock of costco. I think the world of costco. Im a proud costco member. Gold star. My wife lisa is an executive club member. She lords her status over me every time i shop there, im blown away by the prices im a twocart shopper the bargains are so great, one cart is not enough were like a train when we go there. We buy costcos private label products why . Because theyre usually better the place never fails to amaze my trainer jim, this week he bought a car from costco they gave him a better lease deal than anywhere else. Fish, beef, crab legs, glasses, diamond rings, shirts, you name it, go to costco but the stock . Hmm. Well, the stock, ive liked it for years, but ive always kaug cautioned that it is on the expensive side we used to own costco the stock for any Charitable Trust we told it because we had a huge gain and i didnt want to be greedy remember this, bulls make money. Bears make money but hogs, they get slaughtered since then, the stocks continued to climb, and ive never felt we had a Good Opportunity to get back in because, well, you really dont get a lot of downturns in here, do you today, though, costco got hit. The first real price break in the better part of a year. Opportunity . It sure felt like an opportunity, right until i saw why costco got hit bernstein, Good Research firm, downgraded the stock from holds, in other words they missed a lot of the move, to sell in a devastating piece that read so negatively that it could talk even the most optimisticbull out of buying this costco dip. Have you had their crab dip . Anyway, listen to this litany of all about costco first, bernstein is worried the company may be approaching peak club counts, peak members per club and peak revenue per member once costco hits the saturation rate, those numbers could start to deteriorate second, they mention a possible downturn catalyst. They never really say never really spell out what it is. Costco does tend to thrive in a weaker economy third, potential competition finally, they argue costcos expansion into china may not go as well as many people expect. Or as the piece was titled, cost, remember, the symbol, cost rational exuberance downgrading to underperform on u. S. Saturation, competition, and a slow boat to china even worse, the bears lodging is backed up by charts and graphs showing how the stock is so expensive versus historical valuation when pretty much any metric you care to name. That sounds very rigorous and very scary while the analyst freely admits that he missed the big rally, he does that at the top, i thought that was humble of him, his logic sure looks compelling. There is just one eyewitness newsy teensyweensy problem with this analysis. They make it sound as though costco has very little control over its own destiny, and thats just not true. Costco is a best of breed retailer that has repeatedly reinvented itself. And if they need to reinvent themselves again, thats exactly what theyll do. As a close follower of the chain, i can remember when they initially decided that natural and organic was a fad. They didnt embrace it big mistake. And when management realized it, they went all in on natural and organic. They argue bring have the best selection in the world now i can remember when costco failed to embrace the internet it steamed me they had contempt for digitalization and somehow believed they wouldnt lose business to more digital friendly competitors they love brick and mortar when they realized they got it wrong, they pivoted hard and became one of the best operators on the web, some say the ultimate omni channel retailer the company has been judicious about raising the price of club memberships, but if they decide they need the money, i bet they could put through substantial price increases without losing many customers i dont want to say any, but many as far as the Chinese Business is concerned, the slow boat to china, costco recently opened a store in shanghai, and it was so swamped with customers that there was barely room to push the cart they had to close early the first day because they couldnt manage the huge crowds shoppers were literally fighting with each other over rotisserie chick chickens within saying they decided to put up another one that doesnt sound like a cannibalized business. First, accept that costco shares will never be cheap. Thats why i always tell you to pay up for best of breed second, i think the bernstein downgrade could be spoton, at least for the moment this stock is up 41 year to day. Theoretically, its not such a bad idea to say wait a second, maybe take a little profit here. Id give it a day or two more the make sure all the weak ends get shaken out i have no doubt costco is worth buying into a weakness the stock may look expensive now, but it looked expensive five years ago too, and its more than doubled since then thats why im unmoved by the valuation argument okay, let me give you another example. Mr. Softie, microsoft, as of yesterdays close, this stock was closing around 27 times earnings its been years and years since the last time i saw microsoft trading such an elevated level but if you sold the stock based on evaluation worries, well, you felt like a dope last night when management gave us a gigantic dividend boost and a 40 billion buyback, even though the company is a trillion Dollar Company it rallied 2. 55 today im going give you another one that i like. We had a caller about it the other day, wendys yeah, i love going to wendys. My wife adores the baconator its her favorite treat. If she is really in a good mood and worked out really hard, she has the double baconator i think the ceo is fantastic, but the stock recently got hit and i got to tell you, last night when the viewer called, i almost was like how did this happen how could it go down this much so quickly phyllis oh, the callers name was phyllis, just so you remember. I myself just blanked out. But regina gilligan, my incredibly smart producer who has a really smart outfit on told me. This anyway, what was wendys crime. Do you remember what wendys crime was . Defender of phyllis . Do i remember their prime level . What did wendys do wrong breakfast it decided to hire 20,000 people because of breakfast. They wanted to do more business later. What kind of country, you hire 20,000 people and your stock gets clobbered thats wrong good grief you know what it gave you . And phyllis, a great entry point. Theyre investing in growth, for heavens sake. Thats what i want i can list dozens of opportunities to buy buy expensive and quality stocks in each case, its toes say what the bernstein analyst said about costco, sell, sell, sell but whats really the alternative here if youre hunting for stocks that are cheap that. Tend to be cheap for good reasons. Those reasons rarely change. One of the cheapest groups, the automakers do you really want to invest in an ailing industry that is facing nearterm problems like strikes and ride sharing what about brick and mort theyre fail the online or off price test the only winners in this group either offer incredible bargains or have incredible digital footprint. The rest, they have been total dogs i think theyre going to stay way that way you want cheap how about the steel makers even with the tariffs which is what you would expect with a slowing economy, the oils, the horror, the horror bottom line, the next time some analyst knocks down a best of breed stock with a cogent downgrade thats focused on valuation, you need to take advantage of that best of breed opportunity weakness and you need to do some buying all right. Lets say costs. Lets go to ron in california. John caller jim, we levee you out here in sacramento 10th and p gang sill watching you. My man john im in Old Sacramento right now, mentally caller okay, what we got Warren Buffett has a couple more dollars than me. I see some news kraft heinz is in the news with somebody dumping some do you think hell buy it up or lick his wounds and hang back . You do have a kind of worst of breed situation there and other than other than cheez whiz, when i go to ginos, which im going try to do this weekend, john, there is nothing there. Lets buy best of breed, not worst of breed well always make more money bernsteins valuation concerns for costco, theyre logical. It may even be right for the moment, but history tells me that best in Breed Companies dont trade for cheap. Why should they . Take this dip as a buying opportunity. Not tomorrow let it sit for a couple days let the baby ends blow out other of it. On mad money tonight, its behind vrbo, trivago chip poet they ley is up have you missed the move im getting my take. And 5 of the world was taken offline but the market hardly seemed to notice. Ill explain why so stay with cramer. Dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com. Or give us a call at ssomhi743cnbc head to madmoney. Cnbc. Com. Tv announcer its just as powerful as the lexus rx. As many safety features as the rx, the new. The lexus rx has met its match. If theyre talking about you. You must be doing something right. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Classical Music playing throughout to the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Roughly two years ago, when Expedia Groups then ceo left to run uber, many investors decided it was time for them to leave too. The company had a couple of tough quarters after his departure, the stock got clobbered fall do you think to less than 100 in february of last year. But since then the Online Travel play has been gradually working its way higher once again. When Expedia Group reported its latest quarter at the end of july, they knocked it out of the park and the stock caught fire then the whole market rolled over while expedia rebounded over the last few days, its still more than a few points off its 52week highs. A stock that is clearly trending higher, lets check in with mark okerstrom. He is the president and ceo of Expedia Group, who took over from dara two years ago to get a better sense of how things are going and how things are turning. Mr. Okerstrom, welcome to mad money. Good to see you sir. Thank you so much, mark, thank you. Happy to be here. Great everyone knows expedia, but its really Expedia Group. Right i want people to understand they my think its one company, but youve got a bunch of good companies. We have a ton of good companies. Most of the leading brands, not all, but most of the leading brands in travel, whether its vrbo, expedia, hotels. Com, travelocititive, cheap tickets, trivago, you name it why not brand everything expedia, which is such a good brand and Everybody Knows it the fact of the matter is consumers love to have choice, and consumers have developed relationships with each of these beloved brands over the years. And what weve done is essentially brought them under one family, allowed them to share a lot of the great to believe cal advances that weve got, access all of our great inventory, including great lodging inventory, air, car, hotel, et cetera, and it gives us the scale advantages we might have if we were one brand, but were able to spread it across all of these brands that have a Loyal Customer following. Im wondering, youre kind of our wholesaler you handle allour books. Do people understand that you actually are the backbone of a lot of corporate bookings, that if youre going to be able to get mercks business or celgenes business, you have to be affiliated with expedia. Absolutely. We have a big part of our business and a growing part of our business is powering other players out there. We power a lot of the big traditional Corporate Travel players that might service that. We have an incredible business called ingencia which is the fourth Largest Travel Agency in the world which allows us to go into big corporates and service their Corporate Management business i love the product, and i always thought it was undervalued. You guys obviously did too. Yes. But you branded it new. Yes circumstances that something people have a hard time to find i know at one point you werent that happy with how its going but you really kind of turned it around so we recently rebranded the whole thing to vrbo. And the reason why we did it was that the original brand that was the essence of home away was vrbo, Vacation Rentals by owner, a very authentic brand as we thought about our International Expansion plans, which are kind of the next phase of growth, listen, lets pick a great brand that we can really back its vrbo. We had a little bit of hiccups as we transitioned to the vrbo brand, but were optimistic that over the longterm, its going to continue to be a great growth brand into the future. We always looked, when i was talking to the guys that i like about you, that there was this great disparity of the unicorn of airbnb and home away, vrbo. When you see Something Like an uber, when you see something, do you think people are getting religion that when youre a Public Company youre cheaper than private weve always had a strong track record of delivering Strong Healthy top line growth and healthy profit growth. Thats Good Business as we look at a lot of these company shas have gone public recently, nice top line growth a little shy in the profitability. And listen, i think at some point investors, what do they want they want to see the cash flow flowing. And we built a Great Company and were proud of it. In one of the conference calls, this is terrific, you talked about how people see the planes full and people know that the hotels are full, so therefore are we doing well . Yes. I think those are signs also that the consumers going places yeah. Listen, i think Consumer Confidence still remains pretty high youve got this secular shift from things to experiences right. That is buoying travel. If you look on a global basis, travel is going to continue to go up, up, and up. And were thrilled to be at the center of it all it is the essence of what happens when you go from a lower wealth to a middle wealth. Thats when you go on a plane. Absolutely. What do people do when they get a little extra money in their pocket lets go explore the world i did. When i was growing up. Im sure you did too. Oh, absolutely. When we read these stories, down beat stories about tariffs and yesterday i know that chief powell is struggling because he doesnt want to cut rates, it feels like that, because he knows the consumer is doing well if he looks at expedia, should he be thinking that the consumer is doing well, or should he be thinking that expedia has gotten inflation under control because of the bargains they offer i think they look at that and say expedia is doing well. You continue to see good strength and average daily rates and average ticket prices. We continue to see spending up room nights are up bookings are up. It seems very healthy to us and thats certainly been the trend year to date. I look at your company, and i think, well, you are the best barometer of how were doing and that its really hard were a bifurcated economy i industrially, the Steel Companies are doing terribly the consumer seems more levered to job growth which is really solid. Listen, i think when consumers have money in their pocket, again, they want to travel and expedia is at the center of travel. Hotels, you do hotels. Com you have a winning Loyalty Program. What does that mean . Because i think that everyone tells me that yours is the best and i should be a member. Its incredible why it is incredible its simple. Stay ten nights, get one free. There is no points to worry about. Its not really confusing. You stay ten nights, you get one free and importantly, you can stay anywhere you dont have to pick one certain hotel chain over another. Any of our properties on hotels. Com, you can stay at using your points. And you just did two really important deals, one with one of the biggest airlines, united, and the other with marriott. What will those mean for your bottom line . Well, listen, i think theyre both very positive deals united deal, this is something for us that we think is going to make us economically better off. I think its a great deal for them and the same with marriott weve been pretty clear over the course of the last couple of years that we have got our prices in the right spot were not in the business of reducing our margins and the marriott deal for us we got very creative on the ways that we do business together but net net, its basically a piece of business that is going to be a creative to our business. One last thing. Ive been thinking of the companies that do have some degree of Pricing Power because of demand this travel. You guys have been able in places raise price, if you have to well, what weve done, weve taken a pretty thoughtful approach to it, which is weve got low basic pricing. Right we can then allow you to upsale into things like having your inventory available and our packages product if you need more demand, even at this low basic pricing, you can pay more on Charitable Trust<\/a> we told it because we had a huge gain and i didnt want to be greedy remember this, bulls make money. Bears make money but hogs, they get slaughtered since then, the stocks continued to climb, and ive never felt we had a Good Opportunity<\/a> to get back in because, well, you really dont get a lot of downturns in here, do you today, though, costco got hit. The first real price break in the better part of a year. Opportunity . It sure felt like an opportunity, right until i saw why costco got hit bernstein, Good Research<\/a> firm, downgraded the stock from holds, in other words they missed a lot of the move, to sell in a devastating piece that read so negatively that it could talk even the most optimisticbull out of buying this costco dip. Have you had their crab dip . Anyway, listen to this litany of all about costco first, bernstein is worried the company may be approaching peak club counts, peak members per club and peak revenue per member once costco hits the saturation rate, those numbers could start to deteriorate second, they mention a possible downturn catalyst. They never really say never really spell out what it is. Costco does tend to thrive in a weaker economy third, potential competition finally, they argue costcos expansion into china may not go as well as many people expect. Or as the piece was titled, cost, remember, the symbol, cost rational exuberance downgrading to underperform on u. S. Saturation, competition, and a slow boat to china even worse, the bears lodging is backed up by charts and graphs showing how the stock is so expensive versus historical valuation when pretty much any metric you care to name. That sounds very rigorous and very scary while the analyst freely admits that he missed the big rally, he does that at the top, i thought that was humble of him, his logic sure looks compelling. There is just one eyewitness newsy teensyweensy problem with this analysis. They make it sound as though costco has very little control over its own destiny, and thats just not true. Costco is a best of breed retailer that has repeatedly reinvented itself. And if they need to reinvent themselves again, thats exactly what theyll do. As a close follower of the chain, i can remember when they initially decided that natural and organic was a fad. They didnt embrace it big mistake. And when management realized it, they went all in on natural and organic. They argue bring have the best selection in the world now i can remember when costco failed to embrace the internet it steamed me they had contempt for digitalization and somehow believed they wouldnt lose business to more digital friendly competitors they love brick and mortar when they realized they got it wrong, they pivoted hard and became one of the best operators on the web, some say the ultimate omni channel retailer the company has been judicious about raising the price of club memberships, but if they decide they need the money, i bet they could put through substantial price increases without losing many customers i dont want to say any, but many as far as the Chinese Business<\/a> is concerned, the slow boat to china, costco recently opened a store in shanghai, and it was so swamped with customers that there was barely room to push the cart they had to close early the first day because they couldnt manage the huge crowds shoppers were literally fighting with each other over rotisserie chick chickens within saying they decided to put up another one that doesnt sound like a cannibalized business. First, accept that costco shares will never be cheap. Thats why i always tell you to pay up for best of breed second, i think the bernstein downgrade could be spoton, at least for the moment this stock is up 41 year to day. Theoretically, its not such a bad idea to say wait a second, maybe take a little profit here. Id give it a day or two more the make sure all the weak ends get shaken out i have no doubt costco is worth buying into a weakness the stock may look expensive now, but it looked expensive five years ago too, and its more than doubled since then thats why im unmoved by the valuation argument okay, let me give you another example. Mr. Softie, microsoft, as of yesterdays close, this stock was closing around 27 times earnings its been years and years since the last time i saw microsoft trading such an elevated level but if you sold the stock based on evaluation worries, well, you felt like a dope last night when management gave us a gigantic dividend boost and a 40 billion buyback, even though the company is a trillion Dollar Company<\/a> it rallied 2. 55 today im going give you another one that i like. We had a caller about it the other day, wendys yeah, i love going to wendys. My wife adores the baconator its her favorite treat. If she is really in a good mood and worked out really hard, she has the double baconator i think the ceo is fantastic, but the stock recently got hit and i got to tell you, last night when the viewer called, i almost was like how did this happen how could it go down this much so quickly phyllis oh, the callers name was phyllis, just so you remember. I myself just blanked out. But regina gilligan, my incredibly smart producer who has a really smart outfit on told me. This anyway, what was wendys crime. Do you remember what wendys crime was . Defender of phyllis . Do i remember their prime level . What did wendys do wrong breakfast it decided to hire 20,000 people because of breakfast. They wanted to do more business later. What kind of country, you hire 20,000 people and your stock gets clobbered thats wrong good grief you know what it gave you . And phyllis, a great entry point. Theyre investing in growth, for heavens sake. Thats what i want i can list dozens of opportunities to buy buy expensive and quality stocks in each case, its toes say what the bernstein analyst said about costco, sell, sell, sell but whats really the alternative here if youre hunting for stocks that are cheap that. Tend to be cheap for good reasons. Those reasons rarely change. One of the cheapest groups, the automakers do you really want to invest in an ailing industry that is facing nearterm problems like strikes and ride sharing what about brick and mort theyre fail the online or off price test the only winners in this group either offer incredible bargains or have incredible digital footprint. The rest, they have been total dogs i think theyre going to stay way that way you want cheap how about the steel makers even with the tariffs which is what you would expect with a slowing economy, the oils, the horror, the horror bottom line, the next time some analyst knocks down a best of breed stock with a cogent downgrade thats focused on valuation, you need to take advantage of that best of breed opportunity weakness and you need to do some buying all right. Lets say costs. Lets go to ron in california. John caller jim, we levee you out here in sacramento 10th and p gang sill watching you. My man john im in Old Sacramento<\/a> right now, mentally caller okay, what we got Warren Buffett<\/a> has a couple more dollars than me. I see some news kraft heinz is in the news with somebody dumping some do you think hell buy it up or lick his wounds and hang back . You do have a kind of worst of breed situation there and other than other than cheez whiz, when i go to ginos, which im going try to do this weekend, john, there is nothing there. Lets buy best of breed, not worst of breed well always make more money bernsteins valuation concerns for costco, theyre logical. It may even be right for the moment, but history tells me that best in Breed Companies<\/a> dont trade for cheap. Why should they . Take this dip as a buying opportunity. Not tomorrow let it sit for a couple days let the baby ends blow out other of it. On mad money tonight, its behind vrbo, trivago chip poet they ley is up have you missed the move im getting my take. And 5 of the world was taken offline but the market hardly seemed to notice. Ill explain why so stay with cramer. Dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com. Or give us a call at ssomhi743cnbc head to madmoney. Cnbc. Com. Tv announcer its just as powerful as the lexus rx. As many safety features as the rx, the new. The lexus rx has met its match. If theyre talking about you. You must be doing something right. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Classical Music<\/a> playing throughout to the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile<\/a> lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network<\/a> designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Roughly two years ago, when Expedia Group<\/a>s then ceo left to run uber, many investors decided it was time for them to leave too. The company had a couple of tough quarters after his departure, the stock got clobbered fall do you think to less than 100 in february of last year. But since then the Online Travel<\/a> play has been gradually working its way higher once again. When Expedia Group<\/a> reported its latest quarter at the end of july, they knocked it out of the park and the stock caught fire then the whole market rolled over while expedia rebounded over the last few days, its still more than a few points off its 52week highs. A stock that is clearly trending higher, lets check in with mark okerstrom. He is the president and ceo of Expedia Group<\/a>, who took over from dara two years ago to get a better sense of how things are going and how things are turning. Mr. Okerstrom, welcome to mad money. Good to see you sir. Thank you so much, mark, thank you. Happy to be here. Great everyone knows expedia, but its really Expedia Group<\/a>. Right i want people to understand they my think its one company, but youve got a bunch of good companies. We have a ton of good companies. Most of the leading brands, not all, but most of the leading brands in travel, whether its vrbo, expedia, hotels. Com, travelocititive, cheap tickets, trivago, you name it why not brand everything expedia, which is such a good brand and Everybody Knows<\/a> it the fact of the matter is consumers love to have choice, and consumers have developed relationships with each of these beloved brands over the years. And what weve done is essentially brought them under one family, allowed them to share a lot of the great to believe cal advances that weve got, access all of our great inventory, including great lodging inventory, air, car, hotel, et cetera, and it gives us the scale advantages we might have if we were one brand, but were able to spread it across all of these brands that have a Loyal Customer<\/a> following. Im wondering, youre kind of our wholesaler you handle allour books. Do people understand that you actually are the backbone of a lot of corporate bookings, that if youre going to be able to get mercks business or celgenes business, you have to be affiliated with expedia. Absolutely. We have a big part of our business and a growing part of our business is powering other players out there. We power a lot of the big traditional Corporate Travel<\/a> players that might service that. We have an incredible business called ingencia which is the fourth Largest Travel Agency<\/a> in the world which allows us to go into big corporates and service their Corporate Management<\/a> business i love the product, and i always thought it was undervalued. You guys obviously did too. Yes. But you branded it new. Yes circumstances that something people have a hard time to find i know at one point you werent that happy with how its going but you really kind of turned it around so we recently rebranded the whole thing to vrbo. And the reason why we did it was that the original brand that was the essence of home away was vrbo, Vacation Rentals<\/a> by owner, a very authentic brand as we thought about our International Expansion<\/a> plans, which are kind of the next phase of growth, listen, lets pick a great brand that we can really back its vrbo. We had a little bit of hiccups as we transitioned to the vrbo brand, but were optimistic that over the longterm, its going to continue to be a great growth brand into the future. We always looked, when i was talking to the guys that i like about you, that there was this great disparity of the unicorn of airbnb and home away, vrbo. When you see Something Like<\/a> an uber, when you see something, do you think people are getting religion that when youre a Public Company<\/a> youre cheaper than private weve always had a strong track record of delivering Strong Healthy<\/a> top line growth and healthy profit growth. Thats Good Business<\/a> as we look at a lot of these company shas have gone public recently, nice top line growth a little shy in the profitability. And listen, i think at some point investors, what do they want they want to see the cash flow flowing. And we built a Great Company<\/a> and were proud of it. In one of the conference calls, this is terrific, you talked about how people see the planes full and people know that the hotels are full, so therefore are we doing well . Yes. I think those are signs also that the consumers going places yeah. Listen, i think Consumer Confidence<\/a> still remains pretty high youve got this secular shift from things to experiences right. That is buoying travel. If you look on a global basis, travel is going to continue to go up, up, and up. And were thrilled to be at the center of it all it is the essence of what happens when you go from a lower wealth to a middle wealth. Thats when you go on a plane. Absolutely. What do people do when they get a little extra money in their pocket lets go explore the world i did. When i was growing up. Im sure you did too. Oh, absolutely. When we read these stories, down beat stories about tariffs and yesterday i know that chief powell is struggling because he doesnt want to cut rates, it feels like that, because he knows the consumer is doing well if he looks at expedia, should he be thinking that the consumer is doing well, or should he be thinking that expedia has gotten inflation under control because of the bargains they offer i think they look at that and say expedia is doing well. You continue to see good strength and average daily rates and average ticket prices. We continue to see spending up room nights are up bookings are up. It seems very healthy to us and thats certainly been the trend year to date. I look at your company, and i think, well, you are the best barometer of how were doing and that its really hard were a bifurcated economy i industrially, the Steel Companies<\/a> are doing terribly the consumer seems more levered to job growth which is really solid. Listen, i think when consumers have money in their pocket, again, they want to travel and expedia is at the center of travel. Hotels, you do hotels. Com you have a winning Loyalty Program<\/a>. What does that mean . Because i think that everyone tells me that yours is the best and i should be a member. Its incredible why it is incredible its simple. Stay ten nights, get one free. There is no points to worry about. Its not really confusing. You stay ten nights, you get one free and importantly, you can stay anywhere you dont have to pick one certain hotel chain over another. Any of our properties on hotels. Com, you can stay at using your points. And you just did two really important deals, one with one of the biggest airlines, united, and the other with marriott. What will those mean for your bottom line . Well, listen, i think theyre both very positive deals united deal, this is something for us that we think is going to make us economically better off. I think its a great deal for them and the same with marriott weve been pretty clear over the course of the last couple of years that we have got our prices in the right spot were not in the business of reducing our margins and the marriott deal for us we got very creative on the ways that we do business together but net net, its basically a piece of business that is going to be a creative to our business. One last thing. Ive been thinking of the companies that do have some degree of Pricing Power<\/a> because of demand this travel. You guys have been able in places raise price, if you have to well, what weve done, weve taken a pretty thoughtful approach to it, which is weve got low basic pricing. Right we can then allow you to upsale into things like having your inventory available and our packages product if you need more demand, even at this low basic pricing, you can pay more on Advertising Products<\/a> or give us more margin and rise up in the search results, and thats something thats been summit its obvious that advertising in these big Search Companies<\/a> really does make money for you. Absolutely. Advertise sag big piece of it. It has been one of our largest growing revenue sources. And importantly, if you want to target travelers, where do you go you go where the travelers are, expedia they do the antitrust, theyre going to have to go up the hill and say listen, the customers have no choice they have to advertise with us its where they are. Well, its a very Competitive Industry<\/a> as always, but we do have a lot of travelers who are shopping around on expedia. Talk about how good theyre doing. That is mark okerstrom, the ceo of Expedia Group<\/a> you know weve liked this one, literally, since it came public. And we also liked home away, now vrbo. You got it. Okay. Mad money is back after the break. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. Stand up if you are first generat crowd cheering ent. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. The world in which we live equally distributes talent, but it doesnt equally distribute opportunity, and paths are not always the same. Im so proud of you dad. [man] i will tell you this, Southern New Hampshire<\/a> university can change the whole trajectory of your life. uplifting music doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Every year right about this time, Money Managers<\/a> do the same thing. They start doubling down on their best performers. Then they tend to hold those stocks through the end of the year they like to show that theyre winning. Sometimes the process doesnt pan out. Last year the fed threw a Monkey Wrench<\/a> into the gears, caused a market wide meltdown but usually when market funds anoint their favorite winners going into the fourth quarter, those stocks keep winning until the big boys take profits in january, which brings us to the big question, whos most likely to be anointed by wall street here when you look at the s p 500, one name stands out above all others, and this is surprising one. You know who is leading the whole well, its not really that shocking. You know who is leading the whole index . Chipotle its up more than 90 for the year in fact, chipotle is running away with it the next closest competitor is only up 75 . Wow its like secretariat. Dont get me wrong i love chipotle the company and ive been poiunding the stock fr years. I have been all in but geez, even i didnt expect the 90 plus gain. Thats quite a run, especially for a restaurant stock so how the heck did chipotle become the best performer in the s p 500 . And more importantly, can it keep climbing, especially after darden reported today a lot of people thought was suboptimal. Until the big Health Scares<\/a> three years ago, this was consistently one of the hottest Growth Stocks<\/a> around when mcdonalds spun off chipotle, it wasnt a 50 stock. By the time it peaked, it was a 750 stock thanks to a turbocharged growth story. But then there were all those cases of e. Coli and norovirus, a spate of food Safety Incidents<\/a> near the end of 2018 they sent the stock into a tailspin i always tell you it takes about 18 months for the American Public<\/a> to forget or get over this kind of health scare. The collective consciousness, they forget the scare 18 months later. We have seen it over and over again. We had it with taco bell, jack in the box people have short memories unfortunately, just as chipotle was getting over the first set of Health Scares<\/a>, they had more. Once again the stock bottomed at 247 in february of last year. Now its more than tripled from those levels now some of that is simply because of the 18month rule chipotle lapped the latest food scares and thats allowed their same store Sales Numbers<\/a> to surge. But i think a lot of it comes down to worship. They brought in brown nichol as new ceo and this stock has not looked back since then previously the ceo of taco bell. He was amazing there he had fabulous strides at modernizing the brand, bringing in new product and funny ads chipotle and taco bell, they might be quick serve texmex there, but is a world of difference believe me, the chipotle guys let you know that. Turns out the skeptics were dead wrong. Brian has engineered a magnificent turnaround weve been over this a lot before im going give you highlights. First he partnered with door dash to roll out a Delivery Program<\/a> at 1500 locations. The impact was immediate second, under brians leadership, chipotle embraced digitization like many popular chains, these guys always had a throughput problem. You often spent a lot of time waiting in line then you get angry and go to another chain. To solve that, the Company Started<\/a> taking online orders, including mobile they created a Loyalty Program<\/a> to bring in more traffic can you believe how far behind these guys were . Third, brian modernized the stock, giving it a better look remodeling is a great way to bring back customers who were scared off by the food Safety Incidents<\/a>. What else . The company has been smart about tailoring marketing to millennials. They steadily released new limited items, including limited time offering. A year ago it was the chorrizo in january they rolled out lifestyle bowls designed for people with specific palettes. And just today which is the reason we wanted to do this piece, just today chipotle launched the holy grail of limited time offerings, behold the carne asada. Believe me, it tastes as good as it looks i almost went for seconds. Now chipotle has been putting up phenomenal numbers the last quarter they gave you 10 same stores, 8. 3 the number they beat. Beating the earnings estimates quarter after quarter. In fact, so far this year, some of the beats have been truly spectacular. Looking back, the analysts who follow this thing severely underestimated Brian Nichols<\/a> ability to turn things around and restore chipotle to its rightful place in the growth stock hierarchy. And the speed with which he could do it. As soon as the stock started getting some lift earlier this year, many of the analysts downgraded the stock and headed for the exits. I guess once burned, twice shy they couldnt believe that the new chipotle had put its missteps behind it and had a brandnew message. They had another food safety issue last summer, but nichol restrained his force they heard about the new keto bowls and saul forgiven. Thats one reason the company has been able to deliver so many monster upside surprises the estimates were way too low now the analysts have been dragged kicking and streaming back to a bullishness. Their upgrades fueled the most recent leg of the rally. These days its hard to find a piece of research that is critical of chipotle maybe thats a bad thing when Everybody Loves<\/a> the stock, it limit yourself potential upside the biggest winners are typically surrounded by skept skeptics, people who refuse to believe. Gradually those bears become bulls. Thats how stocks go higher. Im a little worried the only fly in the ointment that maybe there are too many bowls and not enough bears what do we do with chipotle now . If its not cheap, i feel like youre chasing if you try to buy it up here however, if you want the own chipotle as a longterm investment, you have my blessing to Start Building<\/a> a position here as long as you wait for a pullback before you add to that position its kind of like costco, which i talked about the top of the show best of breed is never cheap thats why i wouldnt be surprised if chipotle can keep climbing to the end of the year when they report again in about a month, theyll be up against easy comparisons as long as this market doesnt turn against the Growth Stocks<\/a>, i think there is more upside i think its likely, even with the labor lawsuit in new york city that caused the stock to get slammed down 5 . Geez, are people skittish. The comparisons will get a lot more difficult next year when theyll be lapping quarters with doubledigit sales growth. Thats why its a mistake to buy all it wants i think you need to come at this one differently, you wait for a dip and pounce on the rest the bottom line, chipotle is the biggest winner in the s p 500 because it deserves to be. Because brian niccol the ceo has done a tremendous job of breathing new life into a tarnished but still terrific concept. Pray for a pullback that gives you a chance to do real buying its going to take a monster wide market selloff in order to be able the get that pullback. You know what . I doubt youll get it. Hey, lets go the carrie in pennsylvania carrie caller thanks for taking my call, jim. Of course, carey. Caller my stock is bng foods, ticker bgs. Is the dividend safe ive lost faith in the stock, carey. Ive lost faith. Too many misses. Not sure of whats really going on there the company is way on the qt im going to say ixnay b g dan in maryland, dan caller jim, you recently recommended tyson as a chicken supplier to the sandwich boom. Yes. Caller but lower on the pecking order like Sanderson Farms<\/a>. It worth flocking to or is sanderson not up to scratch . No, sanderson is good its just a lot more expensive than tyson now as one of the teams of tonights show, best of breed you have to pay more and sanderson is a very, very good Company Tyson<\/a> is much more of a commodity play but at 15 times earnings, which is half of what Sanderson Farms<\/a> is, i like it. Notice after they reported that little bit of economicsup with commodity, the stock got hit and came right back. Thats the hallmark of an inexpensive stock that wants to go higher. Vince in nebraska, vince caller jim, how you doing . Im doing good. How about you. Caller good. Hey, you and i spoke about three weeks ago about red robin gourmet burger at that time you recommended that since some analysts from bank of america, Merrill Lynch<\/a> had downgraded the stock to underperform, to stay away from that and at this time the stock had dropped on that date about 30 a share. Right. Value line has it projected in the three to five years at 50 to 75. Vintage capital took an 11 position to adversary for changes and offered a 40 hostile bid that the company turned down. The stock went to 35 a share after we spoke and its at 43. 94 today on a close. If you endorsed elliotts management activist investor role in at t, why not rgb now . Because i think because in the end the companys just not that great a company i dont know how you make it into a Great Company<\/a> you have to hope that theyre putting it up for sale thats not what they want to do. And i dont like to play hope. Id rather own high quality and bet beth that the high quality wins ite rather own mcdonalds. Id rather own wendys i would rather own geez, well, garden, even down five today off of what seemed like a not great quarter. All right. Ive said it before and ill say it again Brian Niccols<\/a> surgeonaround strategy has been so successful even the bears are hibernating remember, the best stock in the s p 500, build your position slowly much more mad money ahead. What the heck is happening in the oil complex . Im offering the crude reality, we always like to use that term around here. Then does your portfolio have what it takes to fight the unknowns in this market . Ill be the judge of that when we play am i diversified, and all your calls and rapidfire in tonights edition of twith the lightning round. So stay with cramer. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. As i said at the top of the show, best of breed is always worth it, but its not always the best strategy if you dont have a diversified portfolio of best of breed players. This is where you call me, tell me your top five holdings. And i tell you whether youre diversified or not first up a tweet from terry baker 1969 and he says madmoneyoncnbc, , am i diversified apple, amazon, disney, cvs and starbucks. [ buzzer ] okay lets look at this starbucks, major restaurant, walt disney, entertainment, cvs, am zorngs lets call pure retail and technology we have technology, restaurant, entertainment, weve got health care and weve got Online Retail<\/a> and im telling you, i love that portfolio. Action alert, action alert, action alert, action alert yes, that person is clearly a member of my club. Lets go to susan in florida susan . Booyah, mr. Cramer from delray beach i love delray beach how gorgeous is that lets go to work. Caller beautiful its an honor to be able to thank you for all you do to educate us home gamers your knowledge and integrity are unmatched. E. Thank you so much may i never let you down. Caller you wont i know you wont my stocks are microsoft, at t, apple, home depot and amazon am i diversified all right some are going to criticize me for this because i am not going say you have to sell one or these others im not going to say you either have to sell microsoft or apple, because they dont trade together they havent traded together for years. And thats what im looking for is trade together factor at t, you have elliott in there making changes i like that a lot. Home depot, it just got downgraded the other day by someone. That person was off his mind or her mind and then amazon is a retailer. Retailer, tech, tech oh, man, im really going get criticized for this but amazon doesnt trade with home depot either. You have to recognize i think about whether they trade together more than necessarily theyre with their sector. So amazon does not trade with home depot, so im okay with that telco, tech, but we distinguish that and i think were fine i know, close students of the show would say i have to tell her to sell amazon im not doing that lets go to salary in new york sally . Caller hi, jim love your show thanks for all the tips over the years. Thank you, sally. Caller i wanted to sigh if my portfolio was diversified. Okay. Caller spirit airlines, Canopy Growth<\/a>, planet fitness, target, and facebook thank you. This is tough this is tough. Well, target is a fabulous retailer im totally cool with that save is okay as an airline i dont like airline stocks. Planet fitness, good retail. Lets call it retail but canopy has been so disappointing, even though its not you can say look, cannabis retail, airline, retail, you could make this so its gymnasium i dont know if you want to say athletic, and facebook is fine i thought Mark Zuckerberg<\/a> did quite well today its troubling Canopy Growth<\/a> cant be owned right now. I have to wait to see the new ceo. And i know that ive been recommending it, but i just feel this industry, this company is in flux. Lets put it that way. Cannabis, airline, retail, tech, and fitness. And were okay im sorry to have been so equivocal on canopy, but the stock was down big today, and i dont know why lets go to mark in illinois mark jim cramer. Yes here is the 20, soon to be 30 cowboys booyah to you whoa. Get out of my face go ahead long im tear first time long time, and action alerts subscriber. Here are my stocks. Oh, dont try to win me over. Go ahead reporter chicago mercantile exchange. Ooh, i like them. Apple, abbott labs, and twilio jim, am i diversified . First of all, make this very clear. Zeke is on my fantasy team so who am i to say i dont like the cowboys, right zeke and im also playing randall cobb this weekend. Randall cobb twilio technology, upgraded today by morgan stanley. Cvs, much more of a Health Care Company<\/a> than a drug store chain these days cme, the ultimate fintech stop abbott labs, a device company. Apple technology, technology, device, fintech, health care, tech bingo. Im letting that go. I know people say hold it. Jim did apple trades on its own. Its like its own sector randall cobb all right. I love the players tonight they all got some real horse sense. I say stoick with cramer. It was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Lightning round is sponsored by Td Ameritrade<\/a> it is time its time for the lightning round. Buy, buy, buy sell, sell, sell. [ buzzer and then the lightning round is over. Are you ready, skeedaddy . Time for the lightning round. Start with helen helen . Caller how do you do, jim. Im calling you from aikin, South Carolina<\/a> were known for all the horses down here. Well, there you go. I always try to figure out what the mascot is. Now i know whats up . Caller well, my question is about docusign how it is that that company do they have anything new in the pipeline how can they make because its the ultimate utility. I think that what happen, im not kidding, is people use it and they love it, and adobe should have bought them. Adobe bought them, i think the stock would be flying. Lets go to rick in pennsylvania rick hello i would like to know what your opinion is on Western Digital<\/a> corporation. See, why buy Western Digital<\/a> when you can buy micron, which i think has more game. I think micron is less expensive, and micron doesnt have to have drives. I dont want drives. Lets go to randy in california. Randy . Caller booyah, dr. Cramer. Booyah caller one more time for sharing your knowledge. Ah, thanks a lot, man thank you. Caller you bet hey, i like to revisit a stock i talked with you oh, about ten months ago its cwin, clear way energy. 50 yield i like renewable energy. I think its a good company. Its a good company. I think theyre in jersey. We should get them on. Lets go to nick in michigan nick jim, thank you for taking my call i got a few university of michigan students on the phone here. There we go love the wolverines yeah, go blue caller my 21yearold sister and all of her friends are obsessed with revolve and convinced me to pick the stock in june. I like revolve. I like etsy, okay. And i think both of them are good etsy upgraded tonight. And by the way, buy, buy, buy every kid has cut the cord not lets go to steven in pennsylvania, please steven caller how you doing, jim . Im having a pretty good day. A little worried about detroit, but thats okay. Ill get over it whats going on . Caller not too much. Had interest in at t. I listen to your show and you said its going to be a 60 stock. And what im wondering is you didnt say when to buy it. Right now you buy it right now you got elliott in there those guys are incredibly good i have followed everything theyve done ive made chapter and verse. Ive interviewed paul singer i think at t is going to come and do what they want. Buy, buy, buy because they are so darn smart. And that, ladies and gentlemen, is the conclusion of the lightning round lightning round buzz buz the lightning round is sponsored by Td Ameritrade<\/a> i dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. This weekend, we had the Biggest Oil Shock<\/a> in over a decade half of saudi arabias production taken out like it was nothing. Cheap drones did it. Now only a few days later, oils a goner again. Natural gas is a goner the whole complex is becoming uninvestable right before our very eyes. That is the lesson this week the attack on saudi arabia initially caused the price to blip up from the mid 50s to the 60s. Now its back to 58 as if there had never been an attack at all. When you look at the fiveyear west texas forward curve which is the way to adjust what you can pay for out a few years, it barely budged. It was at 50 before the drone strike and went to 52. Thats it. Why cant the oil complex get any lift you got a combination of powerful forces holding it back, from conservation efforts to the slowing economy to the bountiful supply of crude in the permean basin, a vast repository of oil in west texas that is pushing american production up from 12 Million Barrels<\/a> a day to 17 million in a not too distant future you know a decade ago it was at 5 million. The markets cant handle all that new supply from america which is why oil is so darn cheap. Much of the oil and gas in the permean has been effectively trapped by a lack of pipelines but recently new pipe has been completed, and now they can bring that oil and that natural gas right to the marketplace, and thats the main reason why the attack on saudi arabia barely registered with the oil market for more than a day sooner or later, that permean is going to replace their supply. But thats just the tip of the iceberg. Earlier this week, san jose, california, the tenth largest city in america, banned natural gas in most new residential buildings, beginning as early as next year. Theyre trying to crack down on greenhouse emissions and natural gas is a huge methane spewer san jose is not the first to do it, just the largest this barely noticed news is huge for the complex. Less than a decade ago, we had Major Players<\/a> in the industry like late Aubrey Mcclendon<\/a> of Chesapeake Energy<\/a> or T Boone Pickens<\/a> who pushed natural gas as a cheaper, cleaner bridge fuel than coal or oil. Something that could even be used to power cars and trucks. But the bridge fuel was bridge too far. It didnt happen naturally as vehicles never really caught on even though utilities are phasing out coal, theyre reluctant to build new natural gas plants when they can build solar or wind instead. Thats a major reason why pges Power Division<\/a> is still struggling the older Money Managers<\/a> who are used to middle east shocks pushing up price, they live in hopes the complex will make a comeback many in Oil Service Stocks<\/a> are trading well below where they were when crude was at 26 bucks. Half of where it is. Why . I have a theory. Younger Portfolio Managers<\/a> believe that oil and gas are the new coal despite the saudi fire, despite a president who wants to give Car Companies<\/a> a break to relax fuel efficiency standards, these stocks have become pariahs if you take Climate Change<\/a> seriously, and most younger people do, including younger Portfolio Managers<\/a>, its hard to believe in the health of this industry my Charitable Trust<\/a>, you can follow along and join the club, this week took a brutal loss on the stock of schlumberger. Thats one of the best companies on earth its a Service Space<\/a> i cant believe we sold the stock so much clear than where it was trading when oil was after hat. After a major shock fare failed to move the forward curve, we cant expect the Oil Companies<\/a> to be aggressive longterm, and thats exactly what you need if youre relying on an oil Surface Company<\/a> to make you money. If you want oils, i would scale back on them they didnt move with the middle east burning just imagine how theyll hold up when something bad happens to them, like a slower economy. So forget the oil patch, at least for the near future. If it didnt have a sustained move this week, i dont know when it will stick with cramer. Stand up if you are First Generation College<\/a> student. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire<\/a> university can change the whole trajectory of your life. Quality stock that i didnt mention, got to interview david taylor today, ceo of Procter Gamble<\/a> i think they are firing on all cylinders. Look for that one at a discount. Like i say, i always like say there is a bull market somewhere. Try to find it for you im jim cramer, and i will see you tomorrow ght, rohan oza, the branding guru behind some of the worlds most successful consumer products, joins the tank. Im looking on shark tank for the next billiondollar exit. You think that you can put the fear of god in elon musk . Yes, i think we have the potential to do that. And we have the sales to prove it. I wouldnt play with fire. Weve got battletested ip. Why do i not like it . Because youre not a millennial. 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