May 2018 when they lost their ability to judge because so many were being by crypto maniacs. When crypto sold off, that demand vanished. There have been other times when i have been asked whether it is still safe especially when the going to earnings. I typically said i dont want to play that game. I like nvidia but i dislike earnings rules which brings me to lesson one, i am not a hedge fund matcher anymore. I am not trying to teach you how to be a hedge fund matcher. Read the research, by speaking to the analyst, the company would go up or down in results. That is your trading, not investing. These days, i cannot even play that game. I just know i like the company. See, i have come to the conclusion that what matters is the longterm and not a quarter. The lake great and to growth telling the ceo that a quarter isnt a reasonable proxy, a good period to reach read a company. He lays all of this out and i used to believe he was right but there are too Many Companies that stocks break down even when the company is doing well. The market cannot always analyze those months without the stock is doing. This is a matter of principle. When the stock goes up post earnings, i am hated for not recommending an investment. When the stock goes down, i am vilified for not pulling people out of. But i am still not going to play the earnings guessing game because it does not help full. It is not what i teach. It is not what i do. When i say i own nvidia, as long as the fundamentals stay good, there is no reason to do anything except sit on the stock. It does drive me crazy that the stock is high and drops to 400, you are going to be furious with me. Of course i did not say buy it at any price, no matter what. I just said and it. If you talk to nvidia and now you despise me, what is a few more . We dont feel compelled to tell you that today is the day to buy nvidia. When i get angry and tell you to sell it if you are mad at me, i dont literally mean that people should go and sell the stock for heaven sakes which is what i heard was being said about me all morning i was being glib which is how i tend to get myself in trouble. What i mean is that you should not own a stock like nvidia if you dont have the trading mindset that is the only way to handle the numerous down drive over the years from eight dollars to 1 trillion in market value. If you cannot handle the drug volatility, there is no reason to own Something Like nvidia. Finally, people need to realize that nvidia like apple is the stock equivalent of a living and breathing organism. Apple has gone from a Computer Company to an ipad company, and the Company Makes the fastest chips in the world perhaps the most important tech break since the iphone or the personal computer. These are things that the ceo of nvidia has told me. I think the stock is a must on. I cannot tell you when to buy it i cannot tell you the price to buy it. You can buy some now and later at a better price. Let me give you the bottom line on a very tough position for me. This whole lesson is about how to own stocks, not how to trade good stocks. Trading is way too hard. If you want to own good start that can go up to hundred percent a yea , you must recognize that it can also go down hard during the journey. If you cannot take the potential pain, the nvidia stock is not for you brenda from north carolina. Renda thank you for making us lots of money you bet i dont know what to do with my shares of Johnson Johnson. Whether to keep it or sell Johnson Johnson for eli lilly. First of all, thank you for the compliment. Secondly, i would do the latter. Johnson johnson, i got tired of worrying about this asbestos issue and Ovarian Cancer and talc and i decided to thats it. Im done pick i say sell j j and go with something which is less controversial which is eli lilly. How about sunday in illinois . What is going on . Hey, my friend, longtime fan. I love what you do for us. Thank you and i will see you at thursdays meeting, of course. You know my favorite bucket, get rich carefully. I got to do a revival of that book just to catch up with all of the things we now know. How can i help you, kind sir. I tell all of my friends about that book. And i am waiting for you to come out with your new book. I am working at. It will take a little time. I take some days off now and then i am looking at a company that provides luxury accessories for the u. S. , japan, this Company Recently increased its quarter dividend by 3. 7 and they have recently announced an acquisition. The company is tapestry and they just recently announced that they are going to acquire the pre. What are your thoughts . I am not a fan is interesting is that deal was, i dont think it makes a lot of sense because they took down a lot of money. How about ralph lauren which is down pretty much nonstop from 135 all the way to 121. At one point, it was down almost 1. 5 today. I am so glad we will be together at noon for our club meeting. If you want to own a terrific stock like nvidia that can go up 50 like it did this year, you must also recognize that it can go down hard in trends. It hasnt been a magical year for disney. Investors will look elsewhere if stocks did not go up. I am sharing where i come down on the stock now. So stay with kramer. Dont miss a second of mad money. Follow jim cramer on twitter. Send jim an email at cnbc. Com or give us a call at 1800743 cnbc. We got this tremendous quarter, coolers, everything you need for a wild tailgate party. 70 responsible thursday, breaking out of this longterm funk. How is it that the yetis pulled up so much better . A ton of other stuff, elmers glue, paper made, crock pot, mr. Coffee but these are two companies that make discretionary goods at a time Consumers Want to spend their money on services or experience. The stocks plummeted last year. The 16th best performer in the 1000 list, there was a key difference. Ever since the market bottomed roughly 10 months ago, yet he stuff has rebounded like crazy, up to 61 . We have had more than 35 in a tough period of time so what allowed getty to turn things around . More importantly, can it continue to out perform . While the Revenue Growth did decelerate to just 13 last year, their sales never shrank. France on the other hand went from 13 growth in 2021 to nearly 11 revenue shrinkage in 2022. For the full Year Contract to generate 6. 6 growth but the analyst expect a 4 decline. Why didnt yeti get hit as hard . I think it is because yeti is the dominant brand. They have too many brands but very few in coolers. You can see this difference when you look at their gross margins. What they make with the revenue. In the last few years, yetis margin has swung from the high 50s and 2021 the low 50s, last. Newman had already seen fish vicious retraction. The worst, 22. 8 in 2019 to 22 last year. Yet he took a big profitability hit last year but that happened off of a much higher base. I have to admit this move took a lot of people by surprise. For 2023, wall street expects yeti to take a 3 while analyst c and wl numbers pledging those plummeting. Yet he has never paid a dividend. At least know they had to slash the payoff by 70 a few months ago. 9. 9 down to 3. 3 . After the stocks rallied last month, it only yields 2. 6 . That is why i always warn you, please stay away from anything with an inexplicably large high yield because the dividend needs to be slashed. All that said, i think both stocks might be biased. They really might be. With yeti, the book is pretty simple. Perfect numbers. The company is on track to be a great story. Yeti sells down 14 but raised a full year Sales Forecast at the same time saying the second half would be a lot stronger. Especially for the holidays. You want to get in ahead of the kind of fluctuation. They raised the fouryour guidance. I wouldnt be surprised if yeti has uphill earnings. As for new brands, this one is a turnaround story. Companies back in may, the old ceo retired. Chris peterson took the job. While he is not exactly a newcomer, he certainly seems like a breath of fresh air. He nearly save the company 35 billion per year. And in july, the reset expectations, everything was bad. The company delivered a top and bottom line in the quarter. Peterson slashed his fullyear outlook in the quarter and stock actually jump in response. Trading like this was the last quarter which you are always looking for. The last bad quarter is the single best time to invest. I am looking at the same thing with esti■ lauder coming up later this week. Finally, we learned that nwl is ready to close 8 and automate the remaining warehouses. And they are closing a lot of their brands, they have way too many brands. These stocks represent two totally different propositions. It sells for 16 four four times, stocks are less than 10 times last years numbers at this point. It is a value play. Honestly, they have made it very clear that this is about to come back in a big way. Let me give you the bottom line on both of these. Both yeti and nwl brand had a rough go of it over the last couple of years but yetis stock held up better thanks to stronger brand positioning a management. With the new ceo, i think they can both work. Nwl as a really interesting turnaround story with a lot of provement ahead. Matt money is back after the break. Coming up, disneys pick and gaming. What do the charts say . Kramer makes the tackle, next. Let Innovation Refunds help with your erc tax refund so you can improve your business however you see fit. Rosie used part of her refund to build an outdoor patio. Clink dr. Marshall used part of his refund to give his practice a facelift. Emily used part of her refund to buy. I run a wax museum. Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. The citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] did disneys been the last couple of years in the doghouse . The house of mouse booted its failing ceo. The previously rated ceo. Turnaround time and this guy just keeps getting clobbered. I worried it could take ages to solve but last wednesday, Something Interesting happened. The stock got hit and the stock came roaring back in a positive story. It came roaring back on a thursday. Your stock cannot rally unless there is tremendous buying power. On friday, disney came back a big chunk of its games. I needed a reality check, could we really be looking at the bottom . He is a terrific technician, a stock market mentor. And while he has not bearish on the stock, it is an opportunity. First we need to look at what happened when disney recorded its previous quarter and that was on may 10th. Check out the daily charts. Too optimistic at the time, he got it wrong. He felt there was a chance we would get a big upside drake out. But he also recommended putting in a stock loss around 9650. In case something went wrong and that turned out to be awfully good advice. The stock fell through that level. Fitzpatrick felt it would be in a long period of side is trading. Sure enough, something did go wrong. Full of uncertainty which wall street absolutely hate. The earnings per share came in a little light. Even that probably couldve been okay. So a lot of people dumped the stock in response to that quarter. Even if you believed in his ability to turn things around, it is hard to bet on that turnaround without more detail. Remember, the stock market is a prediction see. You can see it on this. This one goes up to may 11th. The stock blew right through. Fitzpatrick suggested stop at 9650 and when it did that, no kidding where it went. Overly finishing the day at 92 and change. That is truly a hideous move and all of this happened five times the average volume. Look at this. That tells you big money wanted nothing to do with the stock. Check out how disney has and trading since then. It didnt even bounce back. Instead, fitzpatrick points out that it has been stuck in a sideways action with an 85 for and that floor has been tested multiple times and it has held. Digital remains below its 200 day average. That is a big negative. That indicates biggest attritions are actually buying the stock, that is something i totally believe. If you want, you need to verify disney is coming out of the space. Otherwise, youre looking at dead money. The stock jumped almost 5 . But fitzpatrick doesnt think that that changed the chart. As he sees it, disney is building a base above 85 which means it is too early to buy this one. However, after last thursdays run, he sees some signs to buy in. November is when fitzpatrick believes we could get a break out. Me, i think he is wrong. I think he liked it too much here. But i think after that Conference Call and the kitchen sink quarter, i think you buy the stock. The investment committee, the Investment Club and just to be sure, the Investment Club meets at thursday at noon. We will be talking about disney, one of my favorite stocks because i tend to rank my favorites. Take a look at the weekly chart of alphabet. It is still hanging in there. And also it has a nice pattern of higher highs and higher lows and it remains above the 20 day average. It is above, you can see that. Which suggests stocks are currently at 131. I will take that any day of the week but that high is two years old. He doesnt think this will be particularly relevant if the stock catches fire again in the fall. We dont know. Look at the daily chart. Earlier this year, the 50 Day Moving Average cost above the 200 day. Oh my god do people love that. The red cross above the green. Right there. That is a classic sign of a powerful uptrend. So testing his 50 Day Moving Average over the last couple of months, that helped. Recently, stocks have been trading sideways. We get that. Consolidate and a series of lower highs and higher lows on very light volume. This is what fitzpatrick wants to see. If we have heavy volume, it would investors are selling, trading sideways is the hallmark of traders cashing out, not investors abandoning the company just traders. Fitzpatrick says we need to see an upside breakout until the stock can move above its resistance, he thinks it is stuck in a holding pattern. I think the order is wrong, i think the stock goes higher. I think this is probably the two best of due apison seven. Fitzpatrick, i am disagreeing with him. Disney is not yet ready to roar i think it is ready to roar. I like what bob eicher had to say. He prefers alpha. I agree with that but then dave at the stop loss 1. 15, no, i think it is going higher. I am going to marry from idaho. Greetings from idaho, jim. I have a small position in apple and i noticed it is doing really well and at the end of july, it took quite a nosedive and i was wondering if things have changed and if i should buy, sell or hold. I want you to hold. A lot of people did not like the quarter and i think those people are wrong. The reason they are wrong is because apple gave you a terrific quarter and people were concerned very much that maybe this was a no growth quarter but this is not an important quarter for apple. It is not a new apple iphone. I gave my daughter the 14, yesterday. And it is like, i wish i could give her the new one but we dont have the new one, yet. It is the new one that will matter and i think it will still rate cell great. Just talk concerns, the letters at t, i am interested in the phone and i want to say a shout out to all of our friend and hawaii. What a disaster. I hope they do okay. At t, i dont like it because the balance sheet, i dont like it because of leverage. Theyve got a yield that i dont know they can continue to support and i think there are more longterm process x seem pretty darn bleak. I call them as i see it. The chart, disney, it is close to the out break out. I agree with him. We got much more ahead. It may be the dog days of summer but i am still turning in my homework. And with ai stocks, is this just an example of a classic pad that has run its course . And rapid fire, tonights edition of rapid rounds. Our customers dont do what they do for likes or followers. Their path isnt for the casually curious. And thats what makes it matter the most when they find it. The exact thing that can change the world. Some say its what they were born to do. Its what they live to do. Trinet serves small and medium sized businesses. So they can do more of what matters. Benefits. Payroll. Compliance. Trinet. People matter. I love taking your calls not just to answer your questions. This show has got the smartest audience in television. For example, steve in new york asked about sterling infrastructure, a small Civil ConstructionCompany Based in texas i said i will get back with you. This is engineering construction, a group i like a great deal because they are on track to make fortunes. There are three main lines of business, ite development services, Distribution Centers and advanced facilities. There is the transportation where they do classic Infrastructure Projects like rehabilitating highways and then there is the building solution, residential and commercial construction, all hot areas. The stock never really took off in the last few years. With the covid crisis to an all time high of 82 earlier this month. This is all about data centers and ecommerce so we made a couple of acquisition to bulk up the business in these areas. They made a mix as a demand for new data centers exploded during the pandemic. From 2019 to 2022, the company more than tripled and they are expected to keep growing like crazy this year. However, this year up 144 for 2023, so far. And possibly even better results flowing down and here is where i owe steve in new york an apology. Because i wish i had gotten back on the name of it sooner. Sterling just recorded a magnificent set of numbers last week with a phenomenal quarter that sent stocks soaring 32 . The company delivered a gigantic revenue and massive earnings over 93 point basis, one of the best quarters and the entire recording period. Even better, they are talking about earning 440 per share. Like i said, one of the best earnings reports of the quarter. The structure says had a record backlog continuing Strong Demand from new data centers they are helping to build new plants for hyundai and the equal e truck company, basically. Think of this business it should remain, quote, the Fastest Growing highest grossing segment for the next few years. A pipeline of Large Manufacturing products, batteries and other manufacturing as Companies Bring their factories back to the u. S. To prevent future supplychain mishaps. What a story larger than we have ever imagined and this is where the money is. To say the data center cavity is poised to accelerate and even further. We will be forecasting double digit growth over a multiyear period. If things were going to slow down, it looks like that is wrong but these other divisions are doing quite well, too. The backlog is being boosted by all of the government construction programs just like we thought. Just last month winning utahs transportation department. Most companies. Finally, cells are of 30 yearoveryear. Thanks to the peculiarities of the housing market. Fueling demand for new home construction. Home building is supposed to catch fire like this but we have such a massive housing shortage in this country that it turns out hirings derailed this industry. As for commercial destruction, it was up 50 yearoveryear. We are short of apartment holdings, too overall, i think the infrastructure story is a remarkable story my only regret is that i did not circle back to this story sooner. Of course, the stocks surged 30 last week but youve got to think twice about buying sterling stock. When you look at the numbers, it is not like the stock is wildly expensive. It could have traded but that was when wall street was far more episodic. Up, down, up, down. Right now, the factory construction and all of the spending hitting over the next couple of years which suggests earnings explosion in the not toodistant future. I would not be surprised. Sterling stock still has more upside. Bottom of the line, this is exhausting. If you like sterling infrastructure and i dont blame you if you do, i hope you can have ideally a better price on this one but if you are looking at sterling for the long run, i think you can adjust by putting on a small position than waiting for a pullback to buy more. Worst case, there is no pullback coming up, kramer wants to hear from you. Your calls on the lightning round, next. Tonight on last call. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. Sleep more deeply. And wake up rejuvenated. Purple mattresss exclusive gelflex grid draws away heat, relieves pressure, and instantly adapts. Sleep better, live purple. Visit purple. Com or a Mattress Store near you. Lightning round is sponsored by td ameritrade. It is time and then the lightning round, are you ready . Scott . Great speaking with you again. The company plunged 16 after earnings last month. Still has an interest of 20 , today. Should i plugin or plug out . The only way youre going to plugin as if someone engineers a short. I say stay away. Lets go to sue in texas. Okay, perhaps we should go to larry in florida. Larry . What is happening . Chill says high. I started a business that when i thought was a fair price and the stock got crushed. Do i have an abandoned jim . Ive got to tell you, they need to make a clean breast of things by coming on matt money and explaining what went wrong. Since we heard from them last, they were in the 100s. I find it embarrassing to stay away from tv like that. I welcome the company to join me. I am going to david in texas. David. How is paypal looking . I like into it very much. I happen to like him very much. I think the time was the right thing. I wish him very well. I prefer the stocks of mastercard and visa over square and paypal. Thats go to mike in new jersey. Mike. Motive care . It is one of those, once again, i will soulsearching this week and i said to my wife, i have so many new companies that i dont know well enough. It does drive me crazy. What is the point of lightning round, no. Lets go to steve in arizona. How are you doing . Hot here in arizona. Firsttime caller. 3m is not out of the woods when it comes to one they have which is it looks like a lot of there for a chemicals problem is finished. As a spokesperson, i can tell you that they have some real issues when it comes to problems with the combat arms trial. When that is finished, they can be looked at to see if they are doing the right thing. How about greg in florida. Good evening, jim. Firsttime caller, recently a new club member and i am learning a lot and i am joining the club. And i will see you thursday at the noon meeting which is going to be fun. How can i help you . On holdings . On Holdings Reports tomorrow. I do like the stock very much. And now, the lightning round. The lightning round is sponsored by td ameritrade. Is pullback reason for fear . Kramer explains, next. Y td amere is more than a trading platform. Its an entire trading experience. With innovation that lets you customize interfaces, charts and orders to your style of trading. Personalized education to expand your perspective. And a dedicated trade desk of expertlevel support. That will push you to be even better. Trea theres no going back. We find ourselves wondering, is this just another . Or maybe the cannabis stocks . Did the stratosphere and quickly limited back to earth. So the stocks will totally collapse. But as a leap of faith, charge point is based a commodity business. Electric vehicles are growing at a much slower space. Dont even get me started on cannabis stocks. Compilation i wanted to nothing more than the installation of cash. I know people fear the artificial and diligence could play out the same way turning into a giant waste of time and money. We have seen these tragedies and and we seem to be believing that all powerful new trends will be shortlived fads which brings me back to the good news, these companies that have boosted her the most part extremely profitable but the bad news, other than nvidia and its alkaloids, no company is harnessed for profit. Sure they are spending. What are you making on ai, the question does the answer is nothing. Nvidia has got so many other orders having trouble meet demand, there is not much here. What they say is that with ai, they are streamlining the support system. I did hear elon musk see you needed computers to make cars. I get it, you dont really need all of those copywriters if can do the same thing but better and Cheaper Technology uses and i have never seen and it like that since 1998. More than 300 companies came forward claiming themselves as internet related but many had no profits and some barely had sales. In the end, we were right to be enthusiastic about the internet. It did change everything. Even if google took a long time to recover from the crash. Amazon, ebay, priceline and yahoo, a few of the dotcoms amounted to anything. I do feel that none of the pier ai stocks will amount to anything and i am concerned that the Big Companies will regret the ai hype to us. I think its marked the peak of ai stocks in the fourth quarter. Most of them rebounded hard, today. Nvidia because of a very bullish Morgan Stanley. I think that microsoft google, service now and cisco. Watch cisco, it is doing better. For right now, we are starting to realize it is pretty much all hype. Because nobody will know was knows what to do with ai. Until somebody can give me a general use case where general ai actually saved business money by cutting support staff for increasing the knowledge of its workers, they can send the stock cascading south. That is where we are in the dog days of august. We are sick of ai. I would like to say there are always market. I am jim cramer. See you tomorrow. Last call starts now im Brian Sullivan live from florida tonight. Its a special edition of last call because we have an exclusive and wideranging interview with Florida Governor and gop president ial candidate, ron desantis we met with him at the Governors Mansion in tallahassee earlier today. Where we covered a truckload of topics, including inflation, debt, deficit, possible entitlement cuts, his wellknown fight with disney and what he would tell bob iger today. Thats all coming up over the hour. But the governor and i began our chat on a different topic. That was china because the governor recently said the u. S. Has a, quote