Mad Money w/ Jim Cramer 9/3/26

0:00It's NFL Kickoff time Wednesday exclusive NFL team valuations from Michael O'Zanian Thursday CNBC Sport live from the NFL's first ever game in Australia with Commissioner Roger Gideaux starts Wednesday CNBC. My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a more market summer and I promise to help you find it. Man money starts now. Hey, I'm Cramer. Welcome to Man Money. Welcome to Cramer, love you my friends. I was trying to make a little money. My job is not just to entertain but to teach you. So call me 1-107-4-3 CNBC. Tweet me at you, Cramer. We're a way to sing the revenge of the Magnificent 7. And most people don't even seem to know it. Kind of like when return of the Magnificent 7 came out and nobody watched it. Sigh. We've had some stunning winners of late. I know it's down. People are looking at and they're looking at snowflake and of course there's

1:03sales force. And yes, there's crown strike. I know they're making their shareholders fortunes over right. You know much. I love that. It's why I endless is just you should own some individual stocks with their index funds. But with the averages taking you off today, now gaining 624 points, S&B jumping 1.06% in the NASDAQ, hopefully 1.4%. Perhaps you have to go back and pick up the smart gets old leadership. The forgotten Magnificent because a lot of them have gotten real cheap. That's right. On a price journey space, they fall in so far behind their other I'd say many more inferior companies that I'm being to think that just plain wrong. Why the heck am I suddenly willing to stick my neck out? And say positive things about these seven stocks that have been written off because they've destroyed their balance sheets for the most part or lost their momentum or just become plain ugly ducklings. Simple. As I learned 45 years ago when I worked at Goldman Sachs, we used to say everything at a price with the sole exception of Apple, these Amazon alphabet meta, Microsoft,

2:08and data and Tesla have become four Lauren losers. Actually, I think it's something we are anyway disappointing pulling way behind the market. So what I have to say is we are at the price. More damage. They just aren't interested anymore. People don't want to hear about them. Not when you could be in a Dell or watch it soar for a second day after my Diversaries. They aren't going to be sex like Crowdstrike and Palo Altho is not in the wake of AI shenanigans and mythos moment, they're my worst cyber, whatever. The Mag 7 can't tack on a stunning 17% gain like Stope like did today. It's breaking out as a wait for companies to embrace first the Cloud Man AI. They will rally 100 points in a matter of weeks like the mistakenly left for dead sales force or the rocket ship that is Dell. No, six of the seven don't have the horses. That's how with the exception of the extraordinary gains in Apple, which is not reckonsparalgy. What do they have that are just I'm telling you the rest of them they've gotten they're in the bargain

3:08given some changes that impact all of them and some individual traits that make them winners. I say well let's just say they could be twice plus. So I'm going to tick them down here and tell you why these losers are winners. Let's start with Amazon. Ever since we went out to see Amazon or this year I've been stuck on something that CEO Andy Jassy told me. He said they're going to make an immense amount of money in artificial intelligence. They were going to profit from their gigantic commitment to data centers and next year will be used for the compute sales. Well I think it's being pulled forward. I think it may already be used right now. I also remember Andy talking about the $50 billion dollars sending Dr. Business is burdened in the company. I like to healthcare initiatives, international is inflected. Amazon Web Services doing credit well. They're grocery business. Wow. They're advertising business. Reacher. All this for a stock that's up just 12% for you're that's wrong. Amazon's balance sheet is as good as it was a year ago. Enough already. What if Amazon Web Services is able to make four times when it just paid for two million

4:08GPUs for Nvidia? That ratio by the way is when Nvidia CEO Jetson Wong told me companies can expect to get when they buy Nvidia chips. That makes me think that Amazon is cheap. We've all kind of forgotten that there's a reason why a smart executive like Andy Jassy is willing to wreck Amazon spout sheet like the old days. It's because they're going to make fortunes with the money they spend and we're getting closer and closer seeing huge profits for investments that the street has had and you can't wait until next year to buy the stock of Amazon and that's why it is a screaming buy with the stock trading in about 20 times this year's earnings. That's wrong. Hey, you want to hate it stock? How about this alphabet up just 9% for the year? This big cap stock has really been left behind. Sure, it's done next to nothing but when you look at the monster grower that is Google cloud. You have to wonder how can you not own the stock? Is it because of waymo? Now they're doing trivially. I maybe don't like YouTube. Wow, biggest entertainment channel on earth. Search Gemini, maybe their AI isn't ready. Oh, maybe it will be. Again, I say everything under price and $342

5:11is the price for Alphabet whether they get it right or not. Amazing that nobody cares about Uncle Warren by a lot of Alphabet. All people care about us and everybody's under water from that secondary orphanage. They did 13 points higher from here. I say so why? I don't care where it went. I care where it's going. It sells plus 17 times earnings. It's the price. Next, okay, here's one. Maybe the cheapest of all. I'm going to walk you through this one. It's a hated stock. But I'm going to walk you through it. It's called meta platforms. I'm going to call Facebook from now on or maybe Insta because people are sick of this meta name. Last week this company settled a gigantic lawsuit involving Keynabuse that was brought by a heavy list of states attorney general who basically want to crush this company. I know that most of them almost every single person in the media activist this settlement was a big win for the authorities against meta. Those people are wrong. I could not disagree more with that. They know nothing. They settled for a maximum of 18 billion. It could have been less and they have they have 10 years to pay it. That's a very small

6:12amount of money for this giant company. They make so much money this company. This Keynabuse lawsuit could have been an existential threat to meta. I was worried that they may have to fork over 100 billion. I actually thought that was going to be the number. And then I thought there would be hundreds of thousands of individual lawsuits filed in its way. I think the settlement takes off the table. What I thought was the existential threat. I am saying it was a huge win for meta. Is that a reason to buy? Well, wait a second. Metas is the best advertising medium in history. I think WhatsApp could be the most undervalued assetable time in the stock stand 7% for the year. You're getting the smartest team who knows what the who knows how to win for next to nothing. Metas trading in 19.5 times. These are all below the market multiple and they're so good. Just watch the iconic Dina Powell McCormick president of meta is going to show this nation why you want to own a data center. You want it in your own town. They'll offer your town lower prices for everybody and perhaps a place of junior college next to the data center. Decheves people trades that will be there after the data center opens and all the other people left permanent

7:15employment. They'll rent out their voluminous compute and make shareholders for chance meta. It's at the price. How about Microsoft? Look, Mr. Softy's getting religion. They realize that by giving us more disclosure on Azure, their cloud infrastructure business will find more things to like. They're right. In the end, I come to praise Microsoft's CFO Ami Hood. Not bury her. They've been very clever getting power for the data centers. Puffy right out in the perimeter. I got this deal with Chevron's the partner. I get to say this is monster 2.67 gigawatts. No one's talking about it. It's the cleanest behind the meter plan for power I have seen yet. People even I'm not this is not a stretch. I'm not kidding. People even like co-pilot. Next, I know in videos up 22% for the year, but it would be a lot for every other company, but not for a video. This is an Nvidia for having sake. I'm going to do my fantasy thing next week. You know, we do that thing here. I'm not trying to figure which player Nvidia should be, but I am leaning right now toward towards gifts. Anyway, Nvidia bought hugging face today. I know it sounds like a foreign version of Kleenex, but it's a king of open source AI. I think it's really

8:18moving. It'll put the rest of the nonsense that Nvidia's technology is only good at training, not inference. It's foundational. I'm drawing that word around all day today because it makes me look really smart. But what matters is that Nvidia sells it less than 15 times. I'm going to say that again less than 15 times. If it announces tomorrow that it's going to buy back, I have a trillion dollars of its own stock and manage that buy back in Greston. Like I would if I were in charge of it. Not on a little pilot. But when the stock drops and these ridiculous dips in their buying, stock grows up 50%. I am not a look. I nailed the Delphur 100 points. Give me some credit here. I think this thing goes up 50% if I manage to buy back where someone like me like an AI version of me. Tesla. All right. It only needs one thing to have in the SpaceX buy out. Okay. It stocks down six years. That seems wrong. Remember, remember my supposition. If the rest of the market was doing nothing, then it would be fine that the week there's no seven is doing nothing. But the bottom line is that's not the case. The market pulled ahead of the mag seven. We got sick of them, right? I mean, the group's about to reap the profits finally and spend all that money. And we now have decided that

9:18we're so close to, we're so close to 2027 and we're not giving you any credit. That's wrong. This stocks are cheap. I think it is time to buy. Foundational. Bobby in New York, please. Bobby. Hey, Jim. Thanks for taking my call. Oh, Bobby, my pleasure. I read your new book and I highly recommend it as a must read. Well, thank you. Thank you very much. You're a nice guy. Thank you. No, thank you. Any book you were to invest is to know the purpose of every stock day on. Yes, I've only this style blue ship dividend. The worst of credit as a safety net since 2005. What's your current opinion on proffering debt? Okay, this is something Jeff Marx and I've been the club kick around and we're both kind of heart sick about it. We know the proctor has no growth. So being a 21 times earnings with a three with a 3% yield is not enough to attract people. They have to shake things up in proctor. They really do. It just doesn't have the growth that I would have expected this point. That's why we took a small profit and we headed off the sunset.

10:21I'm not recommending the stock right now. It's got to get down to 19 times earnings before taking a shot at or invest in it to use them were foundational term Andy and Florida. Andy. Jim, thanks for taking the call. My pleasure. I just have another role of the last couple of years to turn down. Well, yeah, did it did. Okay, I did. My concern is about that wind business though. It's constantly in the red. And I think the projection this year is going to lose about 400 million. So my question is simply is this should we lighten up on the stock, given that there are other other forces coming into play like Elon Musk getting it to the generator business and I think you on Sweden for his own businesses. The wind business has been at this point, but we all know that it's got like the worst head and shoulders chart I've seen in a long time. However, I think the orders are going to continue. I think that the hyper scaler is going to find a way to be able to make it so that we like a data center next to us by maybe making our rates go down. And I am not that worried about you, because it is falling so much from its high.

11:23Maybe another hundred will keep buying. That's good. Jury in our zone of jury. Mr. Commander, I listen to your recommendations and I'm getting mixed results from you. All right. I don't know whether to buy sell or hold my intel. Okay. Now that let's own this right up front. I got too excited about intel because I knew it was going to have good quarter. It had an unbelievable quarter and the stock went down anyway. I continue. My field is safe. Where's the problem? The government has a huge position and it's supposed to be able to sell it if they want to. And we're all waiting for the government to sell the stake. And that's why the stocks been going down. And I have been saying, listen, I may just have to go in and buy more right here and get a better average and have it come back. I understand it is mixed, but my belief in intel is 100%. I just need to see the government get out of the stock. We'll just go buy it anyway. I'm going to go to Ben and Nevada. Ben! Yes, I'm Jim. First time caller. It's an honor to talk to you. I'd like to ask you about Walmart.

12:31You know, the experts, so-called experts say that Walmart is a better investment than Target. But Target's taken off and Walmart's lag behind. Okay. Yes. Yes. But Walmart now down 3%. I want to buy Walmart. But Target's, you knew CEO came in and he just kind of energized the place, cut prices on 10,000 items. That's what they needed. The needed price got to the stores. Look absolutely terrific. Walmart's just Walmart. And when you have a situation where it's just a continually good company, no one gets excited about it. I don't care. Buy some Walmart and put it away and I'll be very happy with it. So will you. The magnificent seven finally are cheap compared to the rest of the market. And I think it's time to buy. Why? Because everything at a price. Or man tonight, five below is known for selling those final squishy dumplings. We got a hundred. I had a couple of that for dinner with a little hot sauce. But after today's drop, the toys aren't the only thing getting squeezed. Could today's move be your chance to buy? I'm going to give you my take. Then the terrace helping change the way we detect a minor disease. You brought my- you look, I had this one that might diversify. You brought it to my attention. We've done the work. I'm very

13:34excited about it. We're going to take a close look. And so far it's been fighting this way back after months of turbulence. In this Fintech favorite keep the rebound going. I got the CEO in person. So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question. Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com. Or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. Last night we got the latest in a series of strong quarters from five below.

14:42We just got a slightly higher end dollar store with more of a focus on kids. This was a stock shot up 7% just after the open today. Then it cooled off and only finished the session damn within three bucks. Now I think that first move was right. I think the cell-off was a mistake. And now you're getting an incredible opportunity in a long-term out performer. I think those give these kinds of opportunities. See ever since CEO Winnie Park took over at the end of 2024 I have been a believer in five below. I wasn't a believer in previous management. Unfortunately though I pouted the table this winter March when the stock was close to its highs at 235 then pulled back to 170s. By the time I just like him around. Most of the wall strip was worried about higher oil prices putting the squeeze in the consumer. Five below kept putting up great numbers though but for months that didn't seem to matter. Then the stock bottom did $173 July. The oil has been worrying ever since. Going all the way to $263 and changed last week before pulling back to $240 again today because of oil spiked. Now last night five below reported, really it was the superb quarter.

15:45And now the stock is getting zero credit for it because people are so worried about the price that the pump. The numbers were excellent though. Five below put up 14.1% same floor sales growth when the analysts were looking for 10.4% the revenue was higher than expected and the earnings exploded higher. Five below delivered a 28 cent earnings beat of $1.4 basis. That's 107 percent earnings growth year over year. Hey by the way these numbers don't even include the tire free funds. If you bake that in their earnings per share would have been up 418%. Look at the same time management gave encouraging guidance from both the current quarter and the full year. They're talking about 8 to 10% same floor sales growth this quarter. Wall Street is expecting 3.5%. Now they say they'll do a dollar one to a dollar 13 per share in earnings. The analysts only want to see a 85 cents. Wow. Five below also raises 4 year forecast some stance to cost the more. The analysts thought that they'd earn $9.20 cents per share. The management says it's going to be $9.83 to 10.31. Again that's without factory and any tariffy because I could not believe this stock did not finish up being today. Put it all

16:46together and it wasn't terrific for. So it does drive me nuts to see the stocks actually down. I thought Winnie Park and her team told an encouraging story in the conference call too. See five below is to use it. It's kind of a hackney phrase but ladies are focused on their core customers specifically kids and their parents and that's what's driving these magnificent numbers even in the faces from pretty strong comparisons. A year ago they had 12.4% same floor sales growth. This past quarter they generated 14.1% growth on top of that. Thanks to robust traffic growth and increased customer engagement and do not get us started on the curious viral phenomena known as the squishy dumpling. Under Park's leadership five below has gotten very good at identifying new trends and then making big bets on them at the store. They had a great summer and so far they've been killing it back to school season. This is a company that understands that young customers are basically extremely well. They did a great job picking the right merchandise and even better job of marketing them merchandise on social media. At the same time Park keeps improving the stores spading a better shopping experience. Layout really matters with this company when you're

17:50trying to figure out how to keep young children happy. At first five below moved its higher price products from the back of the store. Now they're spread all over the whole store each in their own category. So what was the issue? What happened that caused the stock to give up all its gains and then some today? Look I'm not going to spend too much time arguing a point that I don't really believe in myself. One thing I've seen both in the June quarter that was in negative cows and this most recent one is the idea that five below pass the peak when it comes to its same store sales worth. Last quarter five below printed a quarter with about 20% same store sales worth and then gave updated guidance that implied a significant deceleration with our major deer. This time around the idea was confirmed when their same store sales were only up 14% but man most of these others we killed for 40%. While sure mathematically five below same store sales are indeed decelerating but come on I mean that's just the law of large numbers. These cons were much much much much much better than expected 14% when Wall Street was looking for 10%. I don't know how

18:51anyone looks at that and sees a sign of weakness and yes for the full year five below says to expect 10 to 12% same store sales worth which represents another deceleration versus the first two quarters and the fiscal year you see what the stock went down but they're also lapping increasingly strong numbers. Let's not forget the company has started a developer reputation for you pod they under promise then they over deliver with Winnie Park at the helm ever since she took over five below speed and the cops and six out of six quarters. So here's what I'm focused on. Five below just raises for your earnings I look by 14% in the midpoint yet it's not actually went down today. Some of these things got a lot cheaper yesterday five below was selling for 27.5 times this year's earnings now it's selling for less than 24 times this year's earnings. So it's back of market multiple but such a better stock than the in the average stock of the market now with the midpoint of the new higher earnings forecast applying more than 50% growth versus last year that strikes to be some incredibly fair price to play honestly I'm calling this one to steal so let me give you the bottom line last night five below reported yet another extraordinary quarter. Wait is in a

19:54string of them under new CEO Winnie Park. I think her strategy is obviously working and it's not simply not getting much credit at all because most people are worried about higher oil prices putting pressure on the consumer and I just think people are just finding endless reasons to quimble over an objectively great set of numbers. Stock deserved to jump nearly 7% it shouldn't have been the head fate that it was and these insane gains that they evaporated you know what I say I say yes I think that five below is a buy buy buy if he's back coming up you put Kramer to the test with a call about Nitterra now he's ready to deliver his results next it's NFL kickoff time Wednesday exclusive NFL team valuations from Michael O'Zanian Thursday CNBC sport live from the NFL's first ever game in Australia with commissioner Roger Gideaux starts Wednesday CNBC

21:03last week during a am I diversified summers in Pennsylvania stop me with the stock called Nitterra now it's hot and I simply haven't fallen in closing up to give a good answer so I want to circle back because it is an intriguing story see Nitterra is a diagnostics company focused on genetic testing for everything from cancer care prenatal screening and organ transplants their technology lets them analyze tiny fragments of DNA that circulate in the blood rather than having to scoop it out of the cell which does some detect information early especially when we're talking about embryos now originally this Nitterra was a it was a woman's health company with non invasive prenatal tests it just draws some blood from the mother rather than going right in with the big amniocentesis needle remember that scary thing but gradually unless you're bothering now but gradually I'm taking their DNA testing platform and then pushing aggressive into cancer screening which is a lot more money they can help detect microscopic traces of cancer that are too small to appear on traditional imaging so let's say your cancer goes into remission the terrorist blood test can quickly let you know if the cancer is coming back company published Fresh Slim

22:08from a data this week it was very strong their test was a much better way to spot cancer than PET scans or CT scans if you look at the analyst research solid tumor molecular residual disease could be a 20 to 30 billion dollar business and right now these guys only have a small fraction of that Nitterra also has this organ transplant test to spot early indicators that the transplants being rejected medicare now covers this for kidney heart and lung transplant recipients who would want if you're in one of those situations believe me you want to take that put it all together and this prenatal testing company has turned itself into what I would consider to be a precision medicine platform and that's what Nitterra stock is up 55% over the past few months up 95% over the past 12 months if you look at the other players genetic testing they've also been cleaning up too some of that's because there's been this rotation into healthcare stocks that keep talking about especially the ones with the highest growth but some of its company specific it's about a month ago to tell a report of phenomenal quarter with much better expected revenue surging gross margin and a total test volume of 22.4% their oncology tests cancer tests volumes were up 57.2

23:11percent year year while the company's not at profitable which does bother me it's head in the right direction it lost 47 cents per share two cents better than expected much more than 74% lost their reported a year ago but they're losing money and I don't like that but Wall Street season is turning profitable in 2028 which medicine risk went from there through 2031 the balance sheet gives management plenty of room to keep investing they finished according to roughly one a 1.09 billion dollars in cash and equivalents again it's only 80 million dollars a day now on top of that management raises guidance that's area increases for your revenue forecast by a hundred million dollars at the midpoint to between 2.85 billion and 2.91 billion that's a lot and they see their gross margin coming in between 64 and 66 percent with positive free cash flow that combination is exactly what we want to see it's what's really drawing the bars this product pipeline adds to another layer here signature which is their cancer test has achieved significant regulatory milestones Medicare coverage expanded for their kidney transplant test international expansion starting to matter

24:11to their cancer test has gotten some big approvals in Japan now Nitorra has some major backers one that jumped out to be Stanley Druckermiller he's the big time hedge fund boy billionaire absolutely loves to stock at least a few months ago his family office had $865 million a position in this company at the end of June Nitorra will represent close to 20% of the portfolio and nothing else comes close to it in terms of scale now look you got to take these 13F forms with the greatest fault of no Stanley or he's saying Jim come on but I'd never buy a stock simply could Stanley Druckermiller own it as a couple as a filing couple months ago finally so backward looking still it does tell you that Druckermiller had a lot of conviction in Nitorra did it June when one of the most successful investors of all time has such a large stake in a single company you better believe that catches my attention and I get the appeal but there are real risk here the Towers not cheap and it's certainly not in this government stock trades at roughly 16 times this year's expected sales not earnings but sales even as the company's losing money and it shares are already up 43% year to day the industry itself comes with plenty of uncertainty as

25:14well these test required continue clinical validation competitors are spending aggressively on liquid biopsy and cancer monitoring insurance reimbursement matters and regulatory standards can change this kind of valuation even a modest slowdown could hit this stock hard so I'm not telling you to chase the terrier but I am telling you that the color blot it up and Stanley Druckermiller are probably on the sun in the end I think this is a promising story Nitorra is doing incredible things with his DNA fragment blood test and their business is on fire I think he represents a major facet of personalized medicine something I care of a tremendous amount so I think it is the future of health care bottom line I would put Nitorra on my watch list because it's moved so much I think it's just run to the point where I can't justify chasing it but it's definitely worth waiting for pullback and then doing some buying let's go to bill and that's it's just bill Jim I'm trying to diversify out of some of the AI theme and I missed Johnson and Johnson and I missed Cardinal Health but I was thinking about doing one of my other club stocks and adding to my Elye

26:15Lily what do you think well I'll tell you Bill I think it's it's always good to look at Lily as a stock that I think has a lot of things that are going well but I want to wait it well she you know you know you try to tell you truth Bill it's it's pullback I think you're fine I think you're fine dad some I'm gonna I'm gonna okay that I understand JJ's moved to great deal it's been a great club hit and Cardinal has been terrific too so thank you referencing those two good really good ones let's go to and Indiana and hey Jim is that club member thanks for steering us through these I guess more defensive time oh thank you yeah you know we have to look look we can't be whole hog when we go on the federal on our side that's the big problem today was a brief how can I help you you you and H have enough profitable growth to consider it for my portfolio yes the answer it does it does you know I've got to tell you I thought that less course very very good the stock market did not like the quarter as much as I thought it would but the stocks make you stand here I think the UNH is good to buy I want to go to Anthony and

27:19New Jersey Anthony hey big Jim boy how you doing today not bad how are you Anthony what's going on I'm doing all right a big booya to ya fifth time I appreciate that all right I need you I bought all your books and you signed them all for me but the question I have for today is about big farmer sure which stock is best of breed is it jnj Pfizer or Eli Lilly and okay so let's take a jnj is best to be triple a balance sheet 18 drugs no loss of the equivalent of you're not going to have any expiration problems okay Willie has one huge drug that we know is going to be a franchise for many many years I do like a diversified pattern more and Pfizer started to creep up and is playing catch up but I need a reason to recommend it so I'm going to say jnj really and then Pfizer and thank you for the kind words and for the buy of my books all right now if you like the tarot I'm actually giving my blessing put a besie yeah look let it pull back a little bit you put a position I really like the story I just don't like the losses much for

28:20me money had including my sit down was so fine how is that stock fairing in the current rate environment it's very rate sensitive I've got to see you know then the market's taking its cues from the farm market but is there enough money on the sidelines keep stocks running I'll explain in a positive I in a positive light though and what you call rabbit farms nice addition to lightning round so stay with creamer I wouldn't make a reaction in so-fi technologies digital bank of choice for the younger generation I've been a long time believer in this one and by the way last year my faith was rewarded as the stock we have from eight dollars to an all-time high of 32 bucks in change in November fortunately so far it's a bit the last six months past between 15 and 20 you know the current important really solid top bottom line beat in late July stock actually sold off 9% response I didn't understand that since and though it's been rally hard the point works now up with in 10% since that quarter so can the stock keep them bounding let's show you if you know it all

29:22fancy you have so far well I think back I can't believe you're here it's great to see you in person great to see Jim okay so I gotta I gotta tell you you were a revenue expected to be up more than 30 percent even I was for sure expected to go more than 50 percent I'm trying to figure out why the stock might be stuck here given the fact that the fundamentals are truly stronger than people expected sure as you said we've seen revenue growth of more than 40 percent the first two quarters of this year record margins really strong profitability strong credit performance diversified revenue 60 percent lending 40 percent non-lending what I think happens is the following if investors are confident where interest rates are going we get credit for our fundamentals when they're not certain about where the interest rates are going we get less credit for our fundamentals because it creates more uncertainty about the future the fact that matters over the last five years we've delivered 20 consecutive quarters of more than a rule of 40 so more than 40 percent revenue plus revenue growth plus margins in fact last quarter with 70 which is astronomical doesn't that tell

30:24you I mean other companies have had very similar and it hasn't correlated anymore it should correlate both you and I know it should and historically will correlate do you think I'm going to come back and start correlating again sometime as soon as there's some certain to be around the straight so we have we have the Fed meeting it's September right again in October we report results late October I think as we go in the back half of the year we'll have some important indications on inflation important leading indicators as it relates to interest rates and as long as there's a certainty on interest rates either they're going down or stable the fundamentals really start to play through what we've seen over the last two years as you mentioned the stock was up over 144 percent because interest rates were relatively stable after going up for three years so I think we're going to enter a time period again where there's stability in interest rates or declining interest rate environment both of which really help us get benefits from our fundamentals look I mean to me I've always looked at the story as a quote the story primarily growth in accounts growth in offering new products that more accounts come from and yes I'm going to say it the

31:25so-fi name is that's one of the only times I've ever seen the naming of a stadium bringing more people and the right people too or very recently they take a lot of your products so why isn't it considered more of a let's say a tech company than an a thing company well the way I would think about is this we're using technology to deliver a financial service to our members it's a period of product a superior product without that technology we couldn't do it okay but it is a financial financial model and therefore there is considerations for risk and for capital and for interest rates but I'd say because we're very diversified and we're one stop shop for your financial services needs we've been able to deliver that durable growth over five years 20 consecutive quarters I mentioned more than the rule of 40 because we can allocate capital to different businesses and different environments and that ultimately is what's driven that durable growth and as I mentioned doing 1.2 billion dollars a revenue last quarter up 41 percent we also saw a huge inflection point twice the number of products were taken out per member and we're starting to see these these relationships that we have with members blossoming and we're

32:30getting they're getting more engaged they're trusting us more and they're doing more with us and so we sit on the call that it was a real inflection point where for the first time we had a twice the number of products as members and that's a trend we expect to continue well why don't you tell me about one I'm so if I coach you mentioned several times in your conference call something that people really like because they they've got the whole panoply of what they're doing in life yeah so one of the things we have to do to help our members achieve their goals their ambitions their American dream is we have to teach them to spend less than they make and invest the rest if you just save you're just gonna get by are you winning that battle you know I would feel like that but if you invest you invest you can get ahead right and so so fight the hope is a mechanism that we can bring all the data we have about you and about other people into one place and answer your questions so we can give you actionable advice on spending less than you make and invest your rest so it brings together this broad array of products that we have across lending and buying and saving and spending and gives you an opportunity to start doing more than just saving but to actually invest okay now you offer things I'm I'm doing around the office I asked for anyone

33:34use a stablecoin does it because I look I think it's a novel idea but does anyone really have an appetite for stablecoin I know you want to offer everything people want but is there demand so far you as these payment stablecoin think of it as payment rails it's not necessarily some of the consumers will want to use every day some people want to use it for international remittance that's probably the best you can that would be right but in the United States the primary value it's going to provide is for payment rails so for example so far is now doing settlement with market makers in exchanges in so far USD instead of Fiat additionally payments can be made between merchants and card networks 24 seven dollars don't move at 24 seven but they should so we have a deal with master card where we're moving towards settling on a 24 seven basis using so far USD on tens of billions of dollars of spending that would have to wait three days to settle if we're using the traditional payment rails on a Friday through Monday also it's 24 hours a day versus 12 hours a day in Fiat so it's really about a payment system as opposed to consumer appeal that helps me that helps me a lot

34:38because I don't want to bank in stablecoin because I have a very traditional just a way I do things but as long as master cards in there because I know me but he's very very thorough person that's a great team up for you now tell me about the everything app strategy how yours compared to say another company that has 28 million people and is doing quite well with a great stock today yeah we have a very diversified business at this point 85% of our products are from non-letting products but we have to offer the lending products because those are big important decisions buying house paying for medical school or law school so we need to be there when they're making those big decisions that will impact them for decades but we also need to be there every day when they're spending and they're saving and they're investing so we want to help them in all the days and between and so the real driver of our businesses building a one-to-one relationship with a member building greater trust with them right and then they take out more products which drives more revenue our competitive advantage versus everyone else is that we have a higher lifetime value than they do because we have more products and those products generate more revenue per product

35:41and that competitive advantage in higher LTV allows us to give better interest rates on savings 4.5% interest on so 5 plus better interest rates on loans 12% on unsecured personal inverses 25% on a credit card and products that you wouldn't get from your bank like a mortgage or home equity loan and even an in-school loan and less but at least we will be seeing you on noted or game games this time good good exposure we're very excited about the partnership if you go back even though you went to army you would you don't mind that huh I grew up as a diehard army and Notre Dame fan but the reason we did the deal with Notre Dame is it's obviously a world-class brand great institution and the amount of people that watch their games on Saturdays is unmatched by any other college football oh absolutely including me well I want to thank you Anthony Noto CEO of SoFi Technologies for your educating the people who bank with you because that's what we need this next generation we teach them I like what you say we get them to say right thing to do everybody's back in the great thank you thank you Jim coming up he's the fastest

36:46mind on Wall Street so we're putting him to the test with your help bring on the lightning round next before you calling the lightning round a reminder this labor date don't just take the day off but your money to work with me and the CMBC investing club you only get the morning meetings which I do with Jeff Marx yet my market analysis and a front row seat to how he managed the club portfolio with both every twist and turn in this market plus if you join now you get a sign copy of my latest book that you hear people talk about called how to make money any market I need to to scan the QR code or do this head to cmbc.com slash kramer club to join I sure hope you do I will for just in you in our monthly meetings and now it is time this time the lightning round please everybody stop you saying this talk to them I will just don't know the course of the next time my staff for the quiver to buy you playing the sound and then the lightning round is over are you

37:48ready sking dang tell them why I'm clearing my stomach Jeff in New York Jeff hello mr. Kramer this is Jeff from Sotis New York and the top shore lake Ontario holy cow yeah I remember that remember that lake what's going on picking up the last of the garden vegetables and I saw the on next that you had plenty for Lisa's non-better sauce oh my god yes that's awesome so good this was why other one at last that was a little too hot and I didn't take some peps though don't tell her just want to show so go ahead on the topic of vegetables I'm trying to diversify away from the data center so I invested in a local finger lake food packaging company there's up 50% in the last six months and it keeps hitting all time high hold or take profits in cynical food I don't know cynical foods I don't know I stopped following I should follow more food companies I gotta go I gotta I'm gonna give you a considered answer in that senate the foods I do not know that company let's go to Ron ours on a ride hey Jeff thank you for taking the score my pleasure

38:52so I'm talking about new scale and last year it was themed every day they would reach a new high I want I want to know what you think has changed and I think people recognize I think it was had these people recognized that it's a lot harder to build a nuclear power plant whether it be whether it be big or small or modular doesn't matter it's just really really hard that's why we own GE Brnova for the trust because at least it's got some nuclear and don't feel like the things we get get too out of control that's the problem good and John and part of John how are you Jim first time long time oh fantastic John Betcha call how can I help you doing well I want to discuss iron iron I already and I took a little dip after the meal cloud meal cloud if you're gonna do a new cloud you gotta do the only one I like is Corby with Michael and Trader the others I think are too specular for me let's go to Chris and Louisiana Chris you need a gym my question is about a box in the software section box is finally after multiple

39:54years it is finally breaking out it has good stores people like stores it's got a good CEO and Aaron Levin's has never been exciting to people it's finally starting to get some mojo I think it's okay to own it's done nothing for years let's go to Kurt and Connecticut Kurt Jimmy chill how you doing brother not bad how about you partner awesome man listen long time listener going back to 2006 first time smaller the reason I'm calling you today is motivation bio NUVB I wanted to run this by you I've held the stock now for almost nine months and I'm basically even they've got it's prosy it's different to the cancer drug it's got a lot of vomit but they're unprofitable well the way that I look at this is just a pure spec it's just a pure spec and you take it and accept the fact that of my good zero but it is a spec and nothing more than that because they don't have any of the things that we look at from traditional drug companies but that's okay you're entitled to have one spec that's what I say in my book that's what I say right here and that

40:57language of inclusion of the lightning round is sponsored by Charles Schwab coming up cream resorting through the endless shifts in this market to find their sources next the stock market is a cheap date if it just rates have even the slightest tick down some fed governor philosophizes that maybe rates don't need to go higher we see this flood of money coming into pie stock that's that is the exact Whitney what drove today's phenomenal games it's axiomatic rates go down stocks go up as long as that's the case we can't leave the table it's very rare to see this top market be such a lap dog to the bond market it'll base the bond market in any direction including rolling over and playing dead when the bond market says to do so of course the problem

41:57is that the bond market has become a heinous taskmaster we know the causes too much supply of debt and too much inflation in theory because the supply from the government which is humongous and on the lending but in practice congresses no interest whatsoever balancing the budget on the other hand the big data center fund raises might be winding down because there's now enough cash flow as I mentioned the top of the show coming in that they can pay for this build out without more huge borrowings now that matters see the bond market oblivious to the to to whose supply and bonds just cares about the size of the merchandise it's possible by the way this current tranche of us government bond office may be the last it's long term that makes secretary best and shop easier provide that to fed doesn't raise rates are there structural reasons why the stock market can snap back i think the easiest to dissect it is the article this pointy in bloomberg about the number of 401k millionaires of fidelity it just rose 19 percent to record seven sixty nine thousand between the first and second quarter of this year presumably this is all captive index money a constant source of new fuel for the market second but i look at the numbers now

42:58I say of the new accounts it places like so five that we are familiar robin one of them 40 million alone for those two i know that some of that money's headed to stock market i know that some of these accounts are open to get loans some others are to trade crypto and to oblivion but a lot of it is in heritances my fellow baby boomers passed their money on to the next generation now one time some of that money might have gone to a new house but we don't have enough houses to go around so a lot of the money ends up getting saved and going to the stock market finally i think individual stocks are indeed at last making a comeback the day lose of ETFs has helped more people in the stock groups but i believe that we're now back to owning individual stocks in a popular way like a pound here in video or a space x they are owned and they are loved it is not just game stop anymore understand the money spick it gets shut down every time rates go higher try doesn't drop but right now today the spick it open so the money's just flowing right in and i think you could keep blowing we have a lot of stock slosh around right now but if my sources right we're about to get a slew of takeovers this month and that can take the share count down oh one more thing if the war with the ran ever comes to an end ask yourself do you want to be

44:02short this stock market if you do please check your mail because i'm sending you an invitation to your funeral i'd like to say that there's always more market somewhere i promise i'd find it just be right here man money i'm juke hammer i'll see you next time all opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc or its parent company or affiliates and may have been previously disseminated by kramer on television radio internet or another medium you should not read any opinion expressed by kramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion kramer's opinions are based upon information he considers reliable but neither cnbc nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full mad money disclaimer please visit cnbc.com forward slash mad money disclaimer