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tv   Mad Money  CNBC  January 25, 2022 6:00pm-7:00pm EST

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>> market not down is the new up merck, mrk. >> karen >> jpmorgan for fundamental reasons not sentimental reasons. >> mills? >> as"fast" "mad money" with jim cramer starts now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you money. my job isn't just to help you make money but it's to educate you. call me or tweet me. in retrospect were we paying too much for everything? that's wall street's conclusion on a day where the averages cut
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again. do you finishing off nasdaq, forget about it. i'm not satisfied with that too expensive explanation as people are trying to dump microsoft as if it is a bag of red hot charcoal you understand making a little less emotional for years i've warned you that nothing is more dangerous to a bull market, nothing than supply a stock market is like any other market if you get too much inventory, prices will plummet. of course, even when you get too much merchandise, too many ipos, too many specious spac deals it's hard to turn off the spigot
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that money is all behind us. i fortunately have some insight because i went through the process myself when i went public street.com after a decent 26 year run. first, you have an idea and you talk about how it can scale becoming the first mover in a disrupter company. they love you, laugh it up and give you money and that establishes your valuation suddenly our enterprise was valued at $25 million. i had about 500 subscribers. good lifetime valuation. then a few months later they took our products so i had to come in at 125 million after we've already spent and lost the initial round of funding 25 million to 150 million in no time flat. more and more money gets lost until you become public and it
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opens at a billion dollar valuation. many people like the product the investment bankers generate a, boom, vicious pop needles to say, it never should have been worth that much. fast forward a little bit you have another losing quarter except this time your publicly stock gets slugged you find your company losing money with a stock in the single digits trading slightly above cash a lot of pride mixed with self hatred nearly every one of them had a similar trajectory and almost none of them made it looking back, we got high, a high valuation, on our own supply thanks to the valuations that were created by the venture capitalists and the designers of the ipos so they could get a lot of money for the companies that backed us. i never spoke to anyone.
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the vc guys did it to seem to make money for themselves. keep raising the price and bail the silly public it was beyond me we were losing a ton of money but you know what? those guys made out like bandits. well, guess what out of nowhere we saw the same darn thing happen over the past couple of years. 400 ipos last year alone, many which looked like thestreet.com. ridiculous capitalist valuations and sky high stock prices out of the gate worse, we still had 200 spac deals where they're trying to pull those off big shot guys who can call a lot and there was a ton of hype including ridiculous projections that the sec says probably shouldn't have happened. they have no support now you have no idea how they're doing or who profited. almost all disasters the sec needs to shut them down. they are outrageous and i have
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decided i have had enough. i can't take these losses any anymore. someone has to stand up to the big time promoters and money men and women and it mightas well be me because i don't play for dinner i want to believe that many of last year's 600 new listings are better than the 300 but recent action tells me they aren't. the brokered ipos emptied the pockets of investors they're selling their winners to fund the overbehind losers on top of that, you now have a host of companies that most people have no idea how to value. there were lots of crummy enterprises that never should have gotten through the ipo chute. they had tremendous revenue. they all seemed to have similar characteristics. they offer in a secure way with a 360 approach to all things digital. we've had so many cloud deals that we stopped being able to value them with anything but
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press releases very much like the end of the dotcom era. they try to figure out new ways to pitch the enterprise value. test similarity per share. the superlatives ran out in november at the end at the very top of the month it was all about raising price target now cutting price target is the only mention here, at least for the ones that anyone still talks about. given that many of the newly published stocks are bunched into stupid etfs and they can drag down a host of other names in a vicious cycle these newly minted stocks and spacs are now killing us it's the extra supply that's dragging down the rest of the market sometimes i wish we had a minor league stock market. like soccer over europe, they send them down to another league we need that here. finally there's the actual companies, the good ones the real ones. the ones that are being tarred by the same people as the bad ones ibm reported the best quarter in
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years. opened unchanged and wam street comes to its senses. american express reports the best quarter of the ceo's tenure and they say he missed the revenues johnson & johnson produces a quarter that is incredible and the robo headlines say it was bad. the stock is down big, reverses and jumps gigantically raytheon, eye popper one that like all the others i love but they dumped on it, spoke to greg hays the ceo texas instruments is crushing it itself then when they hear it they gobble up every share. we've got congress j.p. morlg began laid an egg i bet jamie dimon is buying a million shares right now not me many think that microsoft is done stick a fork in it i'll wait and see. yeah, general electric was hard to understand so it got sold netflix made thousands of stocks
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look bad when it should have only made netflix look bad if you sit back and calculate the winners, morgan stanley, halliburton, lockheed martin and today's class, the players on the scout team, the kids that got picked last and missed practice, they are all there wrecking it for the rest of us there's far fewer of them in the majors see, the bottom line, look at the majors the real companies and real earnings report. the winners outnumber the losers 13-4 if i wanted to add verizon, make it 14. add in travelers now i have 15. pretty amazing i can't even find 15 good companies out of a whole 600 odd enterprises that came public last year especially the spacs that need to be banned they're laughing at you. they're so damn -- they're so rich and they're laughing. looks like history's about to repeat itself. first it was the dotcom tragedy.
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now it's the cloud-based as far as jonathan in new york jonathan. >> caller: boo-yah, jim. >> spac, i hope it's a spac. >> caller: overweight buy rating do we hold or do we buy more ddi to get rich. >> which one >> caller: amazon. >> go down mission people are saying they're selling amazon we're not going to sell it down. sorry. warren buffett thinks coca-cola is one of the best that stock isn't doing anything. at least amazon is doing anything i refuse to capitulate to the crowd. i smell their degrees penny and i hear their roar and i think they're wrong. mike in louisiana. mike >> caller: boo-yah this is mike from shreveport. >> i love shreveport it's underrated. what's going on? >> caller: i've been a fan of
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the show since may of 2005 i started a position in a stock since six weeks ago. i've been buying a little at each dip i'm beginning to wonder should i buy, sell or hold nvidia. >> nvidia is a long term situation. what's the matter with nvidia, a lot of people right now, it and a couple of its brethren got overextended at the very top people got way too enthusiastic but you know what, that enthusiasm is being wrenched out of the stock we own it for the trust. we own a bunch of winners. some of which we trimmed and some of which we say, you know what, we're going to be in there as long as the same management team is in there and that team continues to deliver fantastic products for the consumer and for the enterprise and that's what nvidia is doing nothing is more dangerous to a bull market than supply. the newly minted stocks and spacs are ruining it for the rest of your portfolio when you look at the real
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companies that reported so far i've got about 15 winners and 4 losers i'm telling you something, "mad money" tonight, verizon beat earnings expectations into the fourth quarter then tale of two ear ras union pacific versus csx which could represent the best buy in this market i'm tracking the two by the way, logitech delivered green after reporting spectacular third quarter results last night i'm getting the latest from the company's top brass. far more winners than losers among the real companies but the rest, stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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yep, it's go time with wireless on the most reliable network. ok, that jump was crazy! but what's crazier? you get unlimited for just 30 bucks. nice! but mine has 5g included. wait! 5g included? yup, even these guys get it. nice ride, by the way. and the icing on the cake? saving up to 400 bucks? exactly. wait, shouldn't you be navigating? xfinity mobile. it's wireless that does it all and saves a lot.
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like a lot, a lot. is it the right time for growth buyers to consider verizon? for years they viewed this as a bond equipment in this new and difficult market for investors to appreciate value, dividends and certainly verizon, let me tell you something, looks mighty attractive especially when it's selling for less than ten times earning. they reported a solid set of numbers, modest top and bottom line and better than expected full years earning can this be the year when it mor morphs welcome back to "mad money." >> hey, jim.
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how are we doing i hope you're okay. >> doing okay. i hope the same for you. i like this quarter. let me tell you why. there are so many things that read like the growth stock i've been waiting for a lot of stuff that hadn't been working gone a lot of big spend behind you. are you ready to make it for a multi-year move where we expect nice growth, not just dividend >> yeah. absolutely we have been working three full year to get where we are today everything from the network build and the spectrum board to divestment acquisition on tracfone. we are setting up for '22 where we have seven different vectors to grow from international broadband, mobility, mobile edge compute and also together with tracfone in the value segment. we've never had so many vectors to be able to grow from and that's what we have done
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'21 was the most transformative year for verizon at least as long as i can remember >> i felt that way maybe my trust has to be in this this is a new verizon. one thing on the table immediately. the airline situation when will that be resolved you took care of that, too, haven't you? >> yeah. absolutely no, no we launched. we have now more than 95 million folks covered. we have some sites not covered up yet and we're working through that with the airline industry and the faa. i feel good about that right now. everybody is working through it. we're up running with the network so it's just an amazing network we have right now. >> i've been saying over and over again, when is hans vestberg going to come on and say the end of the major capital spend cycle is upon us is it possible that we can say
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that as of today >> i can say the following all macros is going our way meaning work from home, broadband, wireless. everything that is needed in today's regular society, verizon have in the portfolio. also mobile edge compute computing at the edge of the network together with amazon, google and microsoft so we have everything that is needed for that. secondly, we are coming out now from a phase where this year our business as usual is coming down it's going to come down the next years to come as well. so we feel that we are really now leveraging the mobile network build the last couple of years. we're excited at verizon our customers should be excited for the customers we're coming out. >> you know i've been a verizon customer pretty much all of my life >> yes, i know. >> i have the apple 13 i'm watching football games this
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weekend and there's this t-mobile they want to give me $1,000. they want to give me more money than draft kinks, caesar's, everybody else combined. how do you compete against $1,000 give away >> no, i think what we have, we are very disciplined in our business you saw in last quarter we continued to add over 500,000 new subscribers but more important, we brought in high quality subscribers on our post play ultimately for me it's grow our top line and grow our bottom line and see that we take the right number of customers that want the value that we're giving that we're going to continue to focus on it's working our strategy is working. we just come out with new what they call mix and match. we give our customers more opti optionality. we have a third on metered plan
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we're moving up. unlimited space we only have roughly 1/3 in unlimited premium. our job is to see our customer understand our value proposition moving upwards we work with the content guys from visa plus, discovery plus gaming in order to have unique, exclusive offering from our customers. continuously loyal to us with extremely low share. >> two things that i have not talked about with you. one, these phifios numbers were nice pickup. we have not talked about the acquisition of tracfone which i initially thought was not material and i now realize is quite material both of these are drivers going forward, correct >> absolutely. sometimes we don't talk enough about fios record year for fios 2021. that was the best year since 2014 bringing customers on fios. we build more open on fios than
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ever before. we do it because the customers love the service we continue to expand. big business with very good models right now we continue to focus on fios for customers. at the same time not to forget we're now also going nationwide with broadband and outside the fios footprint we're doing access with awesome growth we grew over 40% in the fourth quarter compared to third quarter when you count the new subscribers. definitely an important piece of the valuation or verizon stock that we have a strong fiber fios >> just so everybody knows i've been recommending your stock since the show began over 17 years. it was principally over the differ dend. i see the dividend boost and that will continue even if you become a growth company, am i correct? >> absolutely. for 15 years we've increased our dividend and my job together
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with my cfo is constantly put our board in position first invest in our business which we are doing of course and second to see that they are in a position to continue to increase our dividend that we're done and third capital allocation principal is to pay down our debt which we're also doing as we took on new debt during the eband auction we're having. >> that was very, very good. hans vestberg, chairman and ceo of verizon excellent job. this is it i've been telling everybody, it's different i knew you would pull it off, hans good to see you, sir thank you. "mad money" is back after the break. >> thank you >> announcer: coming up, which of these two rail stoocks can keep your portfolio on track cramer takes a whistle stop of two railroads and in different directions next.
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all aboard don't let this lead you astray it's happening to many, many people it seems like the carnage never, never stops. we're learning that this is a stock picker's market, not a spac picker's market that's impossible. but a stock picker's market. the kind of market where your ability to pick between winners and multiple losers has a major impact on your portfolio's performance. right now we're in the middle of earnings season as you know. this is the crucible that s separates the gold from the draws. i want to tell you a tale of two railroads. it's not like we have to think about software as a service to help in a dental industry. i'm talking about union pacific
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and csx, both that reported last thursday union pacific gave out its numbers last week. csx, on the other hand, disappointed its stock slipped 3.2% on friday how is it that one railroad is in great shape while the other one is struggling? in the same business what separates a best of breed outfit like union pacific from a second stringer like csx before we get into specifics, let me set the stage for context. the last five years have been golden age csx has given you 127% return for dividends and union pacific has given you 146% return trouncing the s&p 500 and dow jones. this golden age was ushered in
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by csx under hunter harris he brought in precision schedule railroading. meaning that the rails come on time in a nutshell, this was a way to manage a train more efficiently. it means a much better customer experience he died eight months after he took over but csx continued to implement his strategy and over time the rest of the industry copied it. union pacific was the key to imitate it that was the key story before the pandemic came along and derailed the industry and the economy. as business started bouncing back, the railroads, they roared they had a solid year in 2020. great one. we just finished in 2021 especially with the supply chain crisis they've been able to clean up by charging more for their services there's a trucker shortage like everything else, csx and
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union pacific have pulled back last week union pacific shot the lights out and what happened what separated the winner from the loser? >> union pacific is a charitable trust. while their business volume was down 4%. like microsoft, sell that, sell that, sell that. operating revenue grew by 12% coming in better than expected, a positive business mix and better pricing union pacific was having a problem with rises prices. earnings per share came in better than expected they were able to pass on many costs to their customers it was up 15% across the entire business nice business. especially in coal and renewables and intermodal. big shipping containers go from a containership to a train to a truck. at the same time they have been rolled back. the freight car philosophy was
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down they're just not operating as efficiently as they used to. that's covid related, workers missing time because they're sick or had to quarantine. i'd buy into that. ceo lance fritz said they were caught off guard as well as the federal vaccine mandate that has since been rolled back all of them are temporary. even though the quarter wasn't perfect, it was unbelievable as we teach people in the investing club, that's what really matters they have pricing gains that should outpace inflation and better efficiency. put it altogether and union pacific should be able to throw off a ton of cash. management is spending money buying dividends and paying back stock. the stock jumped they've given back some of those gains. it still is only down 12 bucks from the recent highs. how about csx? when you look at the headline
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numbers you might think this quarter wasn't much different. csx had excellent 21% revenue growth slightly shrinking volumes, 24%. they had some efficiency issues. there were two major differences. csx took a bigger hit in terms of its efficiency ratio. cost divided by revenue. the most important metric in the railroad business. more important, management was vague. union pacific gave you specific numbers for 2022, they were quite bullish. csx was a lot more cagey more qualitative language. fewer numbers. that was the criticism of general electric today which got hurt csx didn't give you something you could hang your hat on which is why the stock got hammered on friday down 3.2% you needed something firm. why was union pacific able to give us a clearer forecast a lot of it comes down to
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geography. they are a west coast railroad csx is an east coast railroad. forcing them to reroute the trains, an epidemic of train robberies. but for all the headaches trans-pacific trade is remarkably strong business best in the world. business that belongs to union pacific and will get better not worse over time as port owners figure out the snafus. meanwhile, csx is an east coast railroad the east coast has more of the high density highway system, they have more competition from truckers many east coast ports can't accom accommodate. as for coal, while that business was on fire last year, probably be strong again in 2022, it's not seen as a long-term growth market we know coal pricing can be incredibly volatile.
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one last point, i think the market's more for giving for union pacific. 1.19% dividend at the same time both companies have a long track record to buy big buy backs but csx was more noncommittal about the repurchase program and partly because they need to spend a fortune and integrate a sizeable acquisition. bottom line, don't let it distract you it is a stock picker's market. when it comes to a very simple comparison straight up of the railroads we need to stick, as we say in the club, with the best in breed. the best in breed happens to be union pacific. let's go to tom in connecticut tom. >> caller: boo-yah, jim. tom from connecticut here. >> good to have you. >> caller: founding member of the investor's club. i very much enjoy the morning meetings with you and jeff. >> please listen there are thousands of people waking up to this. it's great
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thank you, tom, for mentioning it it's very important to me. >> caller: i have coffee with you guys every morning >> thank you >> caller: brother, down to business i'd like to talk to you about the commercial aviation business, jetblue, jblu. i bought into them when they were in the 17, $18 range. as i'm sure you're aware, they're under 14 today jetblue is in a competitive market they have breeze coming in flying around the north and southeast. they're upgrading their interiors. they're throwing a few more seats in the aircraft trying to keep it roomy. they're updating the available seat miles my question to you is do we double down and buy more during this dip or keep our trade tables up and ride in the turbulence. >> keep the tray tables up i do believe they are an excellent airline. the airline business as you know because you're a member of the club, very, very difficult to make money in. after a halcion period where it
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was great, it's no longer true guys, in this stock picker's market, not spac specificer, leave me alone, stick with the best in breed. cramer faf union pacific much more "mad money" including my exclusive with lodgegitechloh i'm learning about what was behind the company's smashing quarter. i want to know what millennials and gen z are watching because they represent the future? when it comes to investing, there are many that they do that is a hindrance to their financial freedom. all of your calls, rapid fire in tonight's edition of the lightning round so stay with cramer
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♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed
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the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.
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does good news still matter? the answer is yes. we got that answer from logitech they make personal electronics and computer accessories then got credit for it logitech was one of the great success stories of the covid eras around the time people started getting vaccinated last year the stock peaked it's been all downhill ever since. logitech got dumped in it became another zoom or another peloton. i think that narrative is wrong. logitech the business kept putting up strong growth numbers. last they turned in a fabulous holiday number it sent the stock soaring more than 4%. this company is real products, real earnings and trades at 18 times earnings could it be ready to make its big comeback let's check in and take a close look with the president and ceo of logitech international and learn more about the quarter
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welcome back to "mad money." >> hey, so great to be here, jim. thanks for having me. >> i look at your products and i look at video everywhere and how that became something we first did very jerry built and now we realize has to be high quality what i think of is logitech. you just kept moving the ball. >> we're so excited about every area of our business, including the concept of video everywhere. last year during the pandemic we couldn't get enough of our video products, especially our web cams so we lost a lot of low end share. we're getting it back. units we sold equalled a year ago even in the web cam. >> also we now realize gaming is not done microsoft certainly realizes that 3 billion gamers it's very difficult to win in a competitive situation i believe without logitech. >> we love a competitive gamer, we've been focused there for years and years.
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we are winning in the game share for many quarters in a row we love the social game. the social gamer comes to the pc like they used to go to the playground it's become a phenomenon way bigger than just the hard core game. >> i think you need to explain to people like, for instance, if you were a gamer you'd realize the g 435 gaming head set does make a difference. a head set is a head set that's not the case. >> no, it's not. if you're wearing your head set for hours at a time like a lot of these gamers are, you just don't want that much weight on your head. these are ultra light, feel good on, looks good on and sounds great. the speaking audio quality both ways is fantastic. really the difference between winning and losing, how the library is done. we have wireless devices.
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>> speaking of technology, watching a commercial this weekend in commercial. kid riding around on his bike. what's that guy doing? he's making a tiktok video, you idiot. when you make tiktok videos, a great way to do it is with logitech. >> it's funny you said that. i'm sitting next to our new memo cameras. there are so many different ways to make a great video and more and more, you know, you want great mic quality, great video quality. you want to use the software and service. we're really set up to serve the tiktoker, creator, streamer. we have a whole suite of products i'm using a light. they're super. you can see the lighting quality i've got is really, really good. we get the highest preorders for a product. we have i think 8,000 preorders
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for this product that's extraordinary for us. >> how do people know? i know you're advertising more now i'm not clued into that world as much as i should. how did you get that kind of pre-order? >> we simply put the moves out through a press release and immediately there's such an interesting to make sure >> i want to go back to video anywhere it is very interesting zoom peaked a long time ago. zoom stock goes down quite a bit even though it has a great balance sheet and very good management yours is embarking in a different direction. is that because once you have zoom it doesn't matter whereas you need zoom in every room so you need logitech? >> no. i think what's happening here, you need a platform for your collaboration. that's what zoom provides. they do a great job.
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so does microsoft and goinggoogle so many people don't have great video quality. that's where the web cam comes in 90% of the world doesn't have a web cam. and then the next step you've got is conference rooms. all of them are videoed so far there's a big freeze of the pandemic they're not moving that's ahead of us we have a lot of growth ahead in our video business. >> one look at our network where we've tried to do everything the way you should in terms of health care. we have people on zoom we have people who are on zoom and it looks like the first day of the pandemic. why don't they get it that they can do satellite like quality and it's not expensive why do they have to look like the day zoom was invented? >> i think they're going to get it we have to keep getting the word
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out. the onus is on us. yeah, everybody should look like they want to on camera and there's no reason between $39 to $99, if you want to buy one of these lights, it's $59 these are low cost products for what you're doing all day is transporting yourself to somebody else's desk. >> one last question you did indicate you had some supply issues just now but the fact is you source so many different places i was quite impressed by this quarter. i didn't see any supply issues. >> we could have done better we lost several points of growth because we couldn't get supply we still had a terrific quarter. >> this was a great number when it came out. like 9:01. please be good please be good it was better than good. great to see you, sir. >> thank you great to see you, jim. >> thank you "mad money" is back after the break.
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>> announcer: just chill out. >> chill master j. >> the chill man is in the house, he's happy. >> announcer: the lightning round is coming up when "mad money" returns what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.
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hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.
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it is time it's time for the lightning round. and then the lightning round is over are you ready skee-daddy john in new york john. >> caller: yes, hi, jim. thanks for taking my call. thank you for being a great teacher. boo-yah. >> thank you, man. that's what i want to be i just want to teach
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sometimes i get a little emotional when i see our people losing fortunes. how can i help >> caller: okay. i've been following a biopharmaceutical company schroedinger how does that affect the company and what do you think of this company and possibly would now be a good time to buy? >> i don't know. it seems low enough and in the bill and melinda gates foundation the problem is kathy woods well, when things are good, that's fantastic when it's bad, that's real bad maybe go lightly take a small position. let's go to trevor in colorado trevor >> caller: how are you doing >> doing well. >> caller: i wanted to ask you about digital turbine. >> it's another one of these creative video situations. i've got like 70 of them at least it makes money. there's too many of them
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this is my big theme they've gotten more boistrous about it there's too many of these. let's go to paul in texas. paul. >> caller: boo-yah, jim. >> boo-yah, paul >> caller: my stock is agmc investment corporation. >> yeah. mortgage-backed security company that has a big yield and does nothing. that's what it's had since i started the show that's what it continues to be i don't want you in it i think you should sell, sell, sell john in florida. >> caller: boo-yah, cramer. >> yo, what's up >> caller: i have a best of breed stock that has me in the house of pain. what do i do with my weber >> i don't know. barbecue with it i'd recommend trager there's five barbecue companies. i'm shocked it's this low. it's really good, makes a lot of
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money but it is very expensive let's go to jesus. >> jesus from texas. honor to be on your show. >> thank you for coming on the show what's going on? >> caller: they make things, get paid for it and make money >> which company i'm sorry. >> caller: cleveland cliffs. obviously people are going to say it has high numbers. >> i still believe in the company. that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade coming up, cramer has a spin on generational investing that could make you money for decades to come. it might not be what you think "mad money" will be right back ♪♪
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after this morning i listened to the press say 60, 6-0 part of new card owners are millennials. take american eagle, a stock we bought way too early for the charitable trust it has come down with a yield of 3% american eagle holds a huge
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chunk of the gen z market which is why jpmorgan could see it rallying 50% if you value it like kohl's is being valued. we featured it on our morning meeting at 10:20 and the darn thing roared into bull mode. you know what's a shame? i've always told you to buy what you know that doesn't necessarily mean you should buy something like american eagle because you like the jeans. what i want you to do is say, hey, i like american eagle's jeans. now let me delve into the stock. is it cheap? how is the quarter do they have a problem with infrastructure that's the right way you try buy. unfortunately we have tons of young investors who insist on buying but they don't know not considering they needed to raise money to stay afloat which
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dhe. i saw them buy palantir in mystical fashion betting it was the best cyber warfare stock even though it isn't of course they love the $10 spacs. it hurts to lose $10 of course a year ago this week they piled into two companies not because they liked the businesses, not at all, because they believed they could crush the short sellers. i'm talking about amc and gamestop i think it's a bad strategy to buy something that you don't understand or don't care to understand you might not have known that ceo adam aaron was desperate to race some capital. then he followed that up by selling much of his personal stock, more than $40 million worth to make some money for his family i think that was fine, too, because he was crystal clear he was going to do it he gave you a head start to get out ahead of him
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did you listen to him? i think far too many thousands of investors believed something big was happening here, some kind of turn around maybe involving popcorn. nothing could be further from the truth. the numbers for the box office this year are horrendous they're horrible you had to get out while the getting was good and he told you when that was by his stock sales. why the emoji headed monk boss didn't listen? i have no idea you can imagine a future where they're doing well it's a video game retailer in a world where people download their games over the webb. the idea that chewy could come over to gamestop's board of directors couldn't do anything that feels more like a way of capitalizing on the buzz word.
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maybe what they really should do, i've been thinking about this because i'm a rigorous thinker, maybe they should have gone into dog toys that you can buy with dogecoin. do younger people go to a gamestop i mean, really if you've gone to the stores and seen how antiquatedthey are you've had a rude awakening. they knew they could beat the shorts it made no sense because there were no snorts it. i'm seeing many young investors getting blown to smithereens maybe are proud they smashed the short sellers. now it's time to buy stocks of what you know andif you truly snu knew gamestop and amc, you wouldn't like them here at all unless making money doesn't
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matter in which case you are better off watching football with a dozen apps every bit as good as robin hood. i always like to say there's a bull market somewhere. right here on "mad money." ♪ ♪ president biden warns the russians an invasion could change the world i'm shepard smith. this is "the news" on cnbc. on the edge of war russia ramping up military drills >> america readies thousands of troops tonight, new reporting from the front lines inside ukrainian trenches the fda backtracks on two popular covid treatments >> that's really a reckless decision to be able to take this option away from patients. >> the backlash and why the fda says it pulled the plug. a ne

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