Transcripts For CNBC Mad Money 20240712

Ask yourselves now that nearly all the big tech outfits reported and a day the market rebounded from its lows. S p jumping 1. 19 and the nasdaq surging 1. 69 . All right. It didnt make back everything it lost, but like i said, nobody ever made any money panicking. If you panicked yesterday, always a better time there is a whole network of smart, rigorous Money Managers who believe apple, amazon have become ridiculously expectative. Downright danger to zone they dont welcome the possibility that these could be worth trillions of dollars im not kidding, every day same goes for their compadres netflix and microsoft. There are tons of stocks in this market way too expensive by any traditional valuation metrics. However, that does not include facebook, apple, amazon, maybe alphabet say nothing of microsoft only netflix is one that i think is a bit of an outlier this is 2020, not 2000 that being the dotcom boom with the exception of amazon and netflix, all of these big tech stocks are valued based on their earnings, not their sales. The stocks are up, maybe the earnings havent moved up as much but were not talking nose bleed levels right now. Apple, microsoft, alphabet and facebook all sell for 35 times earnings estimates apple used to sell 15 times before it developed that continual perpetual earnings revenue stream that comes from service. Before you say 35 times earnings is too expensive, though, remember that these are some of the best businesses around the average s p stock saw 25 earnings they trade at a premium than the average stock, but arent they better than the average stock . Dont they deserve a premium these companies are taking over the world. I dont think theyre average. I think theyre much better than average. Only amazon and the companies that reported tonight is an outlier. It sells for about 100 times earnings and thats because it has a much higher growth rate than its f. A. N. G. Campaigns. To understand tam. In other words those trilliondollarplus market capitalizations, they look insane other than amazon, theyre priced the traditional way we value stocks are not out of whack at all while amazon trades on sales its pretty reasonable, four times sales. Nothing compared to some of these redhot cloud plays everyone is interested in. Snowflake, a company i really like, the exciting Data Analytics company, it charged 120 times sales, not earnings, sales. Big difference zoom, another company i really like if you want to talk about outrage out valuations, at least use the ones that are priced to sale, not priced to earning. Zoom will grow to its valuation because the sales to earnings is growing so rapidly which is why i like it here if you want to argue that something is outrageously expensive, zoom fits the bill. The Big Tech Companies that just reported, theyre nothing. Heres maybe a better way. You have to struggle you cant just choose traditional metrics all the time facebook, alphabet, apple, amazon and microsoft, they are all what i call proprietary. In fact, theyre so proprietary that they often get dragooned to washington so legislators can yell at them for being too entrenched and having too much power. Theyre per se monopolies simply because theyre the best there is when you hear representatives bashing these companies and making the argument for more antitrust enforcement, theyre really telling you why these stocks are worth buying. Congress is telling you to superbuy some politicians may hate big tech for being so powerful and immunized against competition. I say, look, this is mad money. Its not mad politics. These big tech plays are generating immense amounts of capital. Theyre like banks with amazing Balance Sheets, unlike the banks, they still have great prospects. Look at it like this, a lot of journalists made a big deal about on their Conference Call they said that advertisers are flocking to their platform because its more gentle, its more kind than the big social media sites that are being boycotted. Is that is that facebooks achilles heel . I dont know i looked over facebooks quarter. I didnt see any problems. I mean, if theres a boycott, ill pointblank call it ineffective, okay . They have so much cash, that stuff looks like a borderline irrelevant situation theyll say weve seen the mighty fall again and again. 25 years ago, for instance, the five Largest Companies with general electric, at t, cocacola and merck. Ge and at t, a shadow of their former selves. Why . They took on too much debt exxon got crushed by the drop in oil. Merck still important, although its lost its edge as the best drug company and has a very low multiple could the same thing happen to big tech sure, but not any time soon. None of them have too much debt. None of them have land lines, so to speak they still have the best engineers and developers so theyre not like merck and theyre not Natural Resource companies that are carbon based. I mean, theyre not sugar water. Theyre not Natural Resources. Still, we need to consider how vulnerable these companies are every single quarter, so lets delve into them in light of tonights earnings reports, even though i think they werent that significant, except for one company. Alphabet, the Parent Company of google was one company that did something very unusual they delivered a huge top and bottom line beat, and sent the stock soaring. Real strength is the google cloud, theyre breaking out the valuation of i always expect alphabet to somehow drop the ball and scare people, but they didnt this time it didnt happen youtube looks great. This is, as of today, a new alphabet hey, listen, it was up the least of all of these. As for amazon, they obliterated the estimates. What do you say about a company that earned more than 12 per share. Wall street was looking for 7. 48. Its ludicrous to see the stock go down 30 year over year their operating income forecast was a little bit light which is why the stock got dinged a little bit you know what . There was this thing, it was called covid it cost them, like, 4 billi 4 bn facebook, another huge top and bottom line beat 22 Revenue Growth if you thought the boycott would hurt them, think again i love instagram shops, what theyre doing for Small Business says that we should expect even faster growth next quarter although there might be some headwinds in 2021. For now, though, facebook is looking really good and what theyre doing for the Small Businessman is pretty phenomenal and never talked about how about this one is this the worm in the apple . Ooh, i like that now, finally there is what we have behind me, okay apple is getting hit in afterhours despite reporting a solid top and bottom line beat iphone sales were week, but you got to keep in mind this is the last quarter before maybe their most important iteration comes out, the 12. Four different models. All carriers are subsidizing them aggressively. 5g ceo tim cook is feeling optimistic apple is launch a new description button on friday the Service Business is on fire. 585 million subscribers across the companys various platforms. I think the pullback is a buying opportunity especially with the 5g launch and the fact that the company didnt skip a beat even though they didnt have a new phone. Thats amazing and the Services Business is growing like a weed. The worlds their oyster oh, they didnt give guidance. Why dont you get me an epidemiologist they know more ive got a professor of aerosols at ucsd that knows more than tim cook because its about covid. Why give a forecast . Unless tim is taking epidemiology at night or something. Okay, heres the bottom line after hearing from nearly all the big tech names, the idea that these stocks are somehow ridiculously expensive and dangerous, to me thats insane in most cases the edge estimates were way, way, way, way, way, way, way too low thats exactly what you expect from the best companies that are growing into their enormous market capitalizations every hour, every minute of the week lets go to mark in florida. Please mark caller booyah, jim thanks for taking my call. Im a longtime fan going all the way back to your kudlow and cramer days for us retail investors. Youve helped me tremendously over the years. Well, thank you. Caller my question is, is how high do you think the vix is going into the election and how high afterwards if its contested . Thanks okay. Yeah, i was watching the vix snap up yesterday and i said, all right, well, i care about the oscillator i care about vix vix failed exactly where i expected it to it really did. As far as i am concerned, let me tell you why im not as worried about the election, weve been down for a while if the democrats win, im thinking about a 10 pullback in a punch of stocks im talking about later in the show. If the republicans win, business as usual. All right. The big tech haters have gotten it all wrong, i think. These stocks are not expensive, all right . Theyre just doing great things. Not so fastly. Im sitting down with the ceo of the high flyer to try to make sense of its recent decline. Its fastly. And my exclusive with etsy stock closed in the red today, but could it be the prime time to craft a position in the company . And live person powers a. I. Messaging for Companies Like chipotle and delta and demand for its product amid the pandemic has pushed its stock higher what is the single after earnings im talking with the ceo fresh off its report these are not the cloud kings, guys these are Companies Making fortunes, great Balance Sheets these are banks except they have no bad loans and they have great ceos stay with cramer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet kramer, madtweets send jim an male to m madmoney cnbc. Com or give us a ssll at 1800743cnbc mi something head to madmoney. Cnbc. Com. Sales are down from last quarter but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Its moving day. And are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. What happens when a highflying tech stock stomach stumbles look at fastly which helps all sorts of companies ensure everything runs smoothly over the web. A little over two weeks ago this was one of the hottest stocks on the market then fastly announced not so hot numbers and the stocks been obliterator. Tiktoks regulatory issue, started hearing they could be developing their own inhouse content Delivery Network meaning they want to be able to do what fastly does. Yikes. Last night their full report and their sales were nearly in line, but the earnings came in weaker than expected. Disappointing guidance for the next quart . Cut the fullyear forecast now, there are more issues behind tiktok. Fastly uses a consumptionbased pricing model, but some traffic data theyve been expect from exists customers simply didnt come through the company says its a timing issue. Now were wondering is this a broken stock or is it a broken company that you need to avoid with extreme prejudice . Lets take a closer look with joshua bixby, the ceo of the fastly mr. Bixby, welcome back to mad money. Thank you, sir. Its an honor to be here. Okay. So, joshua, we know that tiktok turned out to be kind of like what netflix was, but we didnt necessarily know that it could be so abrupt what happens, lets say, to a tiktokless fastly . Yeah, i mean, if you look at if you look at the story of our business, we look at the underlying factors here. You know, we go back to basics, jim. We care about customers. We care that theyre growing we care that were adding new ones and, you know, taking the Dynamic Solution that you alluded to out of that picture still drives we drove a 42 growth quarter we had the second highest number of enterprise customers and our total customer adds that weve had since we became a public company. And we since the covid era started had the highest amount of new booked revenue. And that bodes really well for the future if you look at our Net Retention rate over the last 12 months if you look at our dollarbased net expansion, those remain at industry highs so weve got a tremendous concentration of happy customers. Theyre demonstrating that and we are driving the next generation of the internet all right. We continue to feel optimistic. Okay. So let me say this i look at it and say, is there a possibility that if i had unlimited capital from a spac or pe firm i could build a better fastly in two quarters you know, jim, a lot of people have tried to do that over the last 15 years, and there have only been a few that have been able to succeed. I think whats really important here is to understand that this isnt about buying hardware and sticking it in data centers. I mean, anyone can go do that. What this is about is actually about the future of how applications are going to be built, and thats a combination of delivery, security and compute. And we theres a flywheel here that happens. When you have the greatest innovators of a generation who are working to build the future, right . We serve as builders those builders build and they iterate, and that entire process feeds the entire community so what you see in fastly is a combination, we stand on top of all of this Great Innovation thats being driven by the greatest innovators of our generation so you got to get, for sure, hardware out there, but its not there. Its actually about the innovation cycle that drives this future. Which is what were seeing happening in front of us right now. I think lost in the tiktok and the timing issues was the revenue contribution from signal sciences the computer Edge Production tell us about those. Because those seem to make things even more proprietary, is the way i looked at it. Yeah, and thats a great way to think about it. I mean, its a its a situation where you are an innovator, and as you know, the innovators sit on our platform, right . So if you are one of these innovators and need to deliver content, you and i are going to look at an ecommerce website or doing a transaction, we need that to be perfectly fast. We need it to be pixel perfect, have it be secure and personalized and, really, the applications of the future are doing all of that at an edge i mean, this is the new way to build this we sit very humbly in front of the most innovative customers in the world and we get to see the future because of that theyre innovating the future now, and they do that by using our tool and so the reality is, its about security and its about compute. And those are the two elements that we, you know, made really strong inroads in this quarter by launching our edge compute, and as you said, by closing our deal with the most innovative web and api Security Company in the business. Okay. When i go now to shop, i dont want to go see i bought some jewelry today. Im talking about expensive jewelry. By looking on the web. It was lightning speed able to show me every different direction. I was able to see what it looked like on a person it was everything i wanted it was fast, fast, fast. Im sure if im in school, i dont want slow. I want fast. I want beautiful what is covid doing for the business right now so covid, you know, as we saw the world change overnight, but what this this was not a phenomenon that just started with covid, right . Right. We have all moved our lives online this accelerated it. But when you look at our plan, because we build for five and ten years from now, the reality is we knew before, and, yes, covid accelerated, but we know covid is going to be over. As covid ends, what we are seeing is an entirely new generation and a new way of working and a new way of living, and as you said, a new way of buying and that way of living, buying, working is going to be driven primarily on the internet and primarily by those that invest in speed and security and performance. Thats what matters. And thats what weve shown with the winners that are in our Customer Base that have demonstrated that up to the market and i think were seeing that today see, the roughest thing for me you know we did the piece about where do you find the bottom when this happens . Your valuation is 7 billion i dont think i could start and create what youve built for 7 billion. And to me that is the way to look at your company you cant do it for 7 billion you agree with that . You know, what i agree with from where i sit is that the customer relationships we have, the trust we have, what weve seen represented by how our customers grow, i think thats invaluable. Right. To what we see in our customers and actually, phenomenon that were seeing since covid and weve seen it accelerate, weve always been the darling of those that innovate and Digital Natives they get us. Theyre builders were builders were the same as you go to quote, unquote, cross the chasm, you get into storied enterprises that have been around for a long time. As we go into the new quarter, we talked about this with the footwear and the they have to innovate faster than ever. And so when you realize that you have to innovate, you look up in a market and say who is innovating they have a similar innovators toolbox. We are one of those tools. Absolutely. I think whats really important is the story arc. I agree with you. Its hard to understand to find the level, but the fact is that youve got something very special. Josh w joshua bixby, ceo of fastly, great to see you, sir. Likewise. You know weve been working on how to value this its not easy. It was much lower, but theyve created a tremendous amount of value. Weve got to keep working. Mad moneys back after the break. Some things are good to know. Like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. Something else thats good to know . If you have medicare and medicaid, you may be able to get more Healthcare Benefits through a humana Medicare Advantage plan. Call the number on your screen now and speak to a licensed humana sales agent to see if you qualify. Learn about plans that could give you more Healthcare Benefits than you have today. Depending on the plan you choose, you could have your doctor, hospital and Prescription Drug coverage in one convenient plan from humana, a company with nearly 60 years of experience in the healthcare industry. Youll have lots of doctors and specialists to choose from. And, if you have medicare and medicaid, a humana plan may give you other important benefits. 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Call today and well also send this free guide. Humana, a more human way to healthcare. Does this market have high standards. Look what just happened to the stock of etsy, the fabulous online marketplace for all sorts of homemade goods. Last night a phenomenal quarter, the company delivered a big top and bottom line beat with 128 earned 128 growth. One of the best ive seen. They earned 70 Cents Per Share wall street only looking for 57. They had nearly 70 million active buyers. Suspected just 62 million. Even better, etsy gave a spectacular Sales Forecast for the next quarter and the stock already pulled back got slammed down 7 bucks or 5 why . Well, there was tiny piece of hair, they adjusted ebidta forecast was a little lighter than they might have hoped if that sounds like nitpicking, youre absolutely right. I like this stock. Dont take it from me. Lets check in with josh silverman, the ceo of etsy welcome back to mad money. Hey, jim, its great to see you. All right so, josh, this is one of those things maybe if i was a hedge fund i look at it and say, wait a minute, your return on investment, you expect lower roi in the Third Quarter, spending a little more to make the business better to me, thats what i demand of a ceo. I demand that a ceo spend money to make the business better and bigger when are we going to get that into our thick heads thats why your stocks been so great over the long term. Yeah, first, we feel great about the discipline weve had in investing all along during during the last four years and, you know, were going to keep being super disciplined about our investment this is a moment when etsy is really top of mind for millions of consumers and its the Perfect Moment for etsy to be leaning in and really investing in marketing we want to make sure that etsys brand is burned into the minds of tens of millions of consumers,and that they really understand what differentiates etsy what makes us so special so that we keep seeing the sustained momentum far, far into the future. Right i felt the most important part of the Conference Call is when you said you are now part of the zeitgeist. I mean, thats what you should always aspire to, whether it be to make the top of the funnel bigger, whether it be advertising, you have to be part of that discussion maybe masks helped you do that when i order thousands of masks, i dont need a new mask every other week something happened this quarter where people said, ill go to etsy, as opposed to someone else maybe its covid or whatever, but youre top of mind. Yeah, when you talk to consumers about who are the big ecommerce players and who is top of mind, all of a sudden theyll say amazon, etsy, walmart, target were all of a sudden in the same breath of brands that are 150 times or bigger than etsy. We have the potential to be so much bigger than we are today. Its just about being top of mind whats so great about etsy is that were not trying to be the same as everyone else. Right. There are so many places coming online right now that will sell you the exact same thing. You can buy it ten other places and then youre just trying to sell it cheaper or ship it faster at etsy, we really stand for something different. Youre buying from another human being. The product is made just for you. And we think that that is, you know, an opportunity thats massive and were only beginning to unpack it. Im glad you mentioned that we were discussing tiffany earlier today. In the end, tiffany doesnt do what i want, which is personalization. But nike does personalization. I mean, it truly does. And etsy does personalization. And personalization means that i got it made for my wife. I got it made for my daughter. And therefore its special and its no longer special just to be able to go on amazon and click. Thats right. When you buy from etsy, youre buying from one of more than 3 million artisans who are going to make that product just for you. And if you want the sleeve length to be a little bit different, if you want it in a different color, if you want that table to be custom made just for your dining room in just the right dimensions, you go to etsy for that. Of course there are tens of millions of items that are also made and ready to ship from the craftsperson themselves, but theyve premade them and ready to ship, but they can also customize and personalize it for you. In fact, were going to be running a whole new set of tv campaigns. They Just Launched yesterday so we are running a whole new set of tv campaigns. Youll see us really leaning into that notion of personalized just for you as a core element of what were pointing out in those campaigns. Brick and mortar offers two things that i just dont want. One, its a race to the bottom for price. The second is because of covid, im afraid to speak to them. I know that sounds odd, but relatives have covid, i know many people who have had covid i dont want covid if i go to get an item at a store, i am fewer than six feet from the salesperson so thats unacceptable to me so, therefore, gi go to etsy. Yeah, there have been a tremendous amount of people all of a sudden shopping online that used to be shopping offline. Last quarter, ecommerce grew 45 year over year thats an astonishing number its hard to get your head around you never would have imagined all of ecommerce growing at 145 year over year, but etsys gms grew at 119 , 2 1 2 times the rate of ecommerce, so were gaining massive share and its because of the convenience its because of the safety, of course, but its also because you get something made just for you and its great value and youre supporting Small Business and youre connecting with another person and i think at a time when were all being pulled apart, and at a time when were forced to be distant, people are craving next, and etsy delivers that. Do i have to worry about the language in the call where you said theres a steady decrease in mass sales and decelerating of new buyer growth . Because i think that that scared some people. So, etsy added 15 million new or reactivated buyers in the Third Quarter. 15 million in one quarter alone. Thats more than 1 million a week its an incredible number. And if you look at the second quarter, we also added an astonishing number of new and reactivated buyers in fact, etsy now has 69 million active buyers. And so from that incredibly high, elevated base, we expect maybe a little bit of decel, yes, because as the world opens, we wont have as much of that covid tailwind, but we think what this moment has done is really made etsy front of mind for tens of millions of consumers and theyre having fantastic experiences on etsy. And theyre having fantastic experiences buying across so many different categories. You know, Home Furnishings weve soled 2. 4 billion of Home Furnishings over the last 12 months and that grew 126 year over year in the Third Quarter jewelry and apparel both grew at about 60 year over year so people are buying across so many categories and theyre having such a great experience that we think that that is going to provide a meaningful tailwind for growth for etsy for years and years to come. Yeah, i couldnt agree more i dont want to look at the stock on a daily basis, i want to look at how the stock has done since weve known each other. Josh silverman, ceo of etsy, great to see you, sir. Thank you so much, jim. Look, if you judge a company by what it did in terms of its stock price, i have noticed that during this Earnings Period youve been almost completely wrong. Think about the longer term. Its actually working like etsy. Mad moneys back after the break. At calvert, we know responsible investing is hard. 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Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com but before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Pattern in this earning season is starting to become clear. If your stocks been surging to new highs during the pandemic, you need to absolutely blow away the numbers and deliver a pictureperfect quarter. Thats how pinterest could surge 27 . Anything short of perfect has been punished. What do we make of tonights results from live persons, the Cloudbased Software company that specializing in Artificial Intelligence in other words, they create the chat bots that help people connect with their customers and in lightning speed turns out covid19 has been fantastic for chat bot service and the stock surged to 57 in tonights close. 6 bucks from its recent highs. Reported a clean beat, better than expected sales, better than expected earnings. Modest earning profit. Wall street was actually looking for a loss meanwhile, management gave solid guidance for the next quart . Raised theirfull year forecast you have to ask will that be enough at least for the first day im telling you right now, even three days later, its down, its up. Three days later, if its up, its down. Dont worry about the next three days lets dig in deeper with the founder and ceo of liveperson. Welcome back to mad money. Thanks for having me, jim rob, you are doing some very interesting things we are looking at your website, which is excitquite exciting, ts notion that youre doing, the curbside qr, the ability to make it so that we dont have to talk about touch is probably in an era of covid, the single greatest Customer Service append ed appendage that ive seen how did you come up with that . When you look at social distancing and whats going on, a lot of retailers have to align with that. Curbside pickup, you can message, make an order through your mobile device and Curbside Pickup at lowes, and we just signed one of the largest jewelers in the world. When you walk into the store, next to the product, a little qr code, hit it with your phone message someone who is not there and even in ai and discuss jewelry. And then when you leave, you know, youll continue that discussion and they can serve you. So in the era where we need social distancing, you cant have someone in your face at a store. So here you can use your mobile device and shop safely you know, because i thought first of all, im doing this mask initiative. I no longer believe in six feet. I believe theyre speaking right at you, youre in trouble. I just believe that. Thats how its been transmitted. People seem to be a little obtuse about that. This is the first product ive seen that said you can still shop and not be worried. Now, how whats the adoption of this . I wouldnt want to own a retailer if i didnt have it. Look, the Retail Sector is booming for us remember last night i talked about chipotle you can build a burrito with the pepper bot and go pick up the burrito at the door what fueled our growth, 29 in the last quarter, was really retail were seeing massive adoption for it in the past we dealt with Big Call Centers and banks, but now retailers are really diving in because, look, they want people to physically come into a store, but once against, youre right, you cant have someone in your face, you know, talking to you, but you can shop safely if you do it through conversational commerce. When you were on last time, you just introduced the conversational cloud, so its been a pretty good summer and early fall yes you know, the i mean, ive been on the show seven or eight times. When we go back to the original, jim, when i talk about the vision of conversational commerce, how ai and automation is going to power the way were connecting with brands, and i can say now that its happened right. With covid, you know, theres just been an acceleration. In the past i was saying, look, this is the future, jim. What were seeing now, its really the present and we see an acceleration into the future. We were fooling around with the instagram messaging you were using with an airline. Yeah. Its just a heck of a lot better i dont want to talk to anybody. Talking to anybody means i got to be on hold and means they dont know what theyre doing. The chat bots always seem to know what theyre doing or always seem to know what i want. The spirit air we went to was rather remarkable. Another fantastic way for customers to, particularly millennial customers, to be able to get exactly what they want without waiting. Yeah, i mean, Spirit Airlines is us, Delta Airlines is us. One of the things the travel and hospitality sector, which has obviously been under a lot of pressure, for us is were seeing a doubling down right. Whats happening especially with the airlines theyre saying, look, we see these giant Contact Centers before they want to change the game what theyre doing is retooling very quickly, once covid, we get a vaccine, people are going to travel they want to create different experiences. Message on the way to the airport. Maybe your flight got changed before you get there you can go to another plane. You dont have to get put on hold the stuff youre seeing with instagram, we Just Launched that a week ago we got facebook messenger, whatsapp, you know, sms. So all of the messaging endpoints are available now and this is really the way Consumers Want to connect with brands. Rob, when will we lose the if you know your partys expense, press one if you know what you want, blah, press two. Why would i call if i knew my partys extension . What is that you know, that is like the most stupid thing in the world. When can you put that out of business with what liveperson does my partys extension you think i what kind of clown would call you i mean, when are you going to put that to bed when are you going to euthanize that process jim, i dont know why it exists like, you and i feel the same way. I dont know why this exists its, like, 50yearold Technology Call me, press one, press two, find somebody, talk to them. Now theyre in their home. You got to talk to somebody in their home they probably just got out of the shower answering the phone. Kids running around. Theyre, like, half naked. I mean, it makes no sense. We can make this automated we can make 80 of these conversations automate and its happening. You see it in the numbers, were growing really, really fast now. There is a massive adoption happening. Obviously voice has been around for a long time. We had to break the chains, but weve broken them. Theyre broken, jim. When i looked at your numbers, rob, i said they actually may have more business than they can handle perhaps because of covid your Technology Makes it so the other guy is a loser, right . If you come in and the other drugstore has to have it. Yeah, and thats whats happening. Whether were seeing health care as a vertical really take off. Were seeing obviously retail is really taking off. And, you know, everyones going to do it especially with instagram now just opened up. Too easy. If youre on instagram, youre going to want to be messaging, a media platform like ours you want to automate that. We made a pretty big bet in ai three or four years ago and it worked were here today and, you know, were just doing awesome. All right lets leave it at that rob, thank you again for another great quarter and for doing what youre doing, making it so that we can actually have Customer Service in the year of covid thank you so much, sir good to see you. Thanks, jim. Mad moneys back after the break. [narrator] at Southern New Hampshire university, were committed to making college more accessible by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Lightning round is sponsored by Td Ameritrade it is time for the lightning round. Buy, buy, buy. Sell, sell, sell, sell and then the lightning round s is over . Starting with mario in new york. Mario. Caller just want to know how you feel about workhorse and the potential contract with the United States postal service. Look, workhorse is a show horse, as far as im concerned people on twitter, people want me to promote this thing every single day of the week im not a promotor and im not going to go there, okay . There are other stocks i like in that space lets go to gail in new york gail caller hi, jim cramer. I love your show and i try not to miss it oh, thanks, gail. Caller thank you ive had on my radar for over a year but havent dived in. I want to know what you think of voya as a longterm investment. Its the best house in a real bad neighborhood i will not recommend anything financial or anything oil. Wow. Pretty draconian, how . Jpmorgan, that acts awfully and we own Goldman Sachs and i dont know, jeez, maybe i worked there. Couldnt believe how cheap it is im not going to push people into it. Lets go to bob in connecticut bob . Caller yeah, hey, jim. Thanks for doing what you do. Oh, youre great, thank you. Caller id like to know what you think of new York Community bank i know youre probably interested in that dividend and it is bountiful, okay . I look at it and say if i were running that bank, that dividend is too risky they can tell me all they want, but i dont like the shape of the u. S. Economy right now if covid keeps growing, all right got to put it get it under control. Lets go to bill in florida. Bill caller hey, jim. Bill in saint augustine, florida. Nice place. Caller i watch your show regularly and the way you share with investors a limited partnership, mplx. Im familiar with it. Again, probably like it for the yield, which is around 16 i find that typically, i dont know about these guys, but typically that kind of yield is unsustainable and will be cut. Maybe this is the ultimate exception, and good luck to them lets go to dustin in tennessee. Dustin caller hey, jim. Booyah from tennessee. Booyah. Caller jim, ive been managing golf courses for around 20 years and ive never seen golf courses this busy, driving ranges this busy theyre packed covids really drove the numbers up earlier this week, ticker ely agreed to buy out top golf in the deal valued over 2 billion. Right. Caller the combination of top golf and callaway seems like a great investment continues to explode if covid hangs around if we get a vaccine dustin, people said they spent too much money so thats why the stocks going down people said why do they have to do that . Why do they have to pay so much . But i like your thinking its gotten hit and hit and hit. When we see those situations, that means its actually getting cheaper and worth buying im siding with you. Enough i think if it goes down tomorrow, you pick some up how about we go to holly in maryland holly . Caller hi, jim i love your show thank you, holly. Caller i was wondering if youre still bullish on Simon Property group. I was saying if youre going to own this, that is one of the two to own lets understand each other, the longer covid lasts, the less valuable that property is. Thats the way it works. I was hoping that we would have it under control masks, social distancing, contact tracing. But we have distinguished ourselves as a bit of a laughing stock of which, you know, doesnt help those companies it doesnt help america. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by Td Ameritrade cramer, you are super you are awesome. Im a firsttime investor. Thank you for inspiring me to get in the game. Your show is the best i am so glad youre on tv. I want you to know that you have transformed me. Thank you, cramer. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn new and exciting chapter. Across muticloud, apps, data and security, we focus on solving the business problems of our customers with technology we are a type of company the market has not seen before. Going public will further invigorate our mission to embrace technology, empower customers, and deliver the future. Heart monitors that let your doctor watch over you, just like you watch over your best friend. Another lifechanging technology from abbott, so you dont wait for life. You live it. Theres something happening here, but what it is, it aint exactly clear. Right now the market is furiously trying to market in a blue wave election a total landslide for biden and the democrats. But that just feels a little confused, doesnt it for example, earlier today Health Care Stocks got swamped with sellers because health care is perceived as being the most vulnerable industry under a biden white house. Some people are terrified that democrats will win such a large majority that well start hearing about socialized medicine theyll say its time for our government to negotiate prices with the drug Companies Like every other company on earth others may suggest that the managed Care Companies make a lot less money something united Group Brought up as a possibility. When Bernie Sanders and Elizabeth Warren looked like viable president ial candidates i got to tell you, i know where those worries come from. But can i just say, they seem totally out of step with reality . The selfproclaimed socialist, Bernie Sanders, he lost the contrary biden beat him like a drum Vice President bidens not running on socialized medicine never has. Hes actually running to shore up obamacare and maybe let people buy into a governmentrun plan. The public option. Although his campaigns been pretty quiet about that since he locked up the primary. Nancy pelosi, the democratic speaker of the house, does not support singlepayer consumer, the democratic leader in the senate, does not support singlepayer bidens running mate, senator harris, has a confusing history on health care shes endorsed medicare for all, then she came out against it, but shes not at the top of the ticket listen, do you remember obamas first term the democrats had a supermajority and they had barely able to pass the Affordable Care act. I mean, even with no public option even if biden winds in a landslide, he wont have a supermajority. There is no universe where the democrats have the votes to pass singlepayer in the next congress but the people who are freaked out and furiously dumping Everything Health care, they are in a panic and they do not care about those pesky details. Everything i just said theyre either ignoring or dont believe. If we get a blue wave, these negative nancies will come in next wednesday, too, and unlock the managed care stocks down 10 . The drug stop is going to lose 5 to 7 of their value. Its hard for them to go lower than that. They have bountiful dividends. Its going to be pure panic. When panicked sellers dump highquality stocks, we got to be ready to buy, not sell. By midweek, thursday, i think the selling will abate merck reported a great quarter i saw mr. Frazier on today he sounded pretty great. Really they got clobbered even though its doing terrific one covid drug that was disappointing in Clinical Trials in the hospital. What else . Lets go back to United Health group. What an incredible quarter but it cant rally because people are worried about singlepayer forget it. Finally consider one that we talked about many times here they make the best blood sugar monitor for people with diabetes right now the stock is being crushed by sellers who think were headed for a sovietstyle Health Care System that wont pay up for quality medical devices. Thats a perfect setup i think thats a foolish bet to make maybe trump pulls off a surprise win. Maybe biden wins but the republicans hold the senate. But, man, even if there is a blue wave, a singlepayer Health Care System is simply not on the ballot this year every four years both parties try to scare you into voting against the other guys i dont care how you vote. Im just trying to help you manage your money. But if you want to be a good investor, you cant afford to make decisions based on Heated Campaign rhetoric. Please, im begging you, stay calm stay put i like to say there is always a bull market somewhere and i promise to try to find it just for you, right here on mad money. Im jim cramer see you tomorrow the news with Shepard Smith starts now im Shepard Smith on cnbc, and this is the news. We are going to win four more years were going to change the course of this country faceoff in florida duelling and contrasting Campaign Events in the sunshine state. The story polls are telling with just five days till the vote a trail of destruction, damaging winds, lifethreatening storm surge, millions left without power. The deadly aftermath of hurricane zeta this is