Mad Money 09/03/26 | Audio Only

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 Kramer. Welcome to Mad Money. Welcome to Cra America. Well, do my friends. I'm trying to make a little money. My job is not just to entertain, but to teach you. So, call me 1800 743 CBC. Tweet me at Jim Kramer. We're witnessing 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 Dell people are looking at and they're looking at Snowflake and of course there's Salesforce and yes, there's Crown Strike. I know they're making their shareholders fortunes overnight. You know how much I love that. It's why I endlessly suggest you should own some individual stocks with your index funds. But with the averages taking off today, Dow gaining 624 points, S&P jumping 1.06%, and the NASDAQ pulling 1.4%. Perhaps you have to go back and pick at the market's old readership, the forgotten Mag 7, because a lot of them have gotten real cheap. That's right. on a price jaring basis, they've fallen so far behind the other, I'd say, many more inferior companies that I'm beginning to think that's 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 they've destroyed their balance sheets for the most part or lost the 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 Nvidia, and Tesla have become four laworn losers. Actually, I think in some degree perennially disappointing, falling way behind the market. So, what I have to say is we are at the price. More damage. They just aren't interesting anymore. People don't want to hear about them. Not when you could be in a Dell and watch it soar for a second day after magnificent earnings. They aren't going to be sexy like Crowd Strike and Palo Altos. Not in the wake of AI shenanigans and mythos moment cyber whatever. The Mag 7 can't tack on a stunning 17% gain like Snowflake did today. It's breaking out as a way for companies to embrace first the cloud AI. They won't rally 100 points in a matter of weeks like the mistakenly left for dead sales force or the rocket ship that is Dell. My by my >> no six of the seven don't have the horses. That's right. With the exception of the extraordinary gains and apple which has not wrecked its balance sheet. What do they have that are just I tell you the rest of them they've gotten they're in the bargain bid given 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 take them down here. I'm going to tell you why these losers are winners. Let's start with Amazon. Ever since we went out uh to see Amazon earlier this year, I've been stuck on something that CEO Andy Jasse 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 semiconductor business that's buried in the company. I like the healthcare initiatives. Internationals inflected. Amazon Web Services doing incredibly well. Their grocery delivery business. Wow. Their advertising business. Reacher. All right. What can I say? All this for a stock that's up just 12% for the year. That's wrong. Amazon's balance sheet isn't as good as it was a year ago. Enough already. Uh what if Amazon Web Services is able to make four times what it just paid for 2 million GPUs from Nvidia? That ratio, by the way, is what Nvidia CEO Jensen 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 Jasse is willing to wreck Amazon's balance sheet like the old days. It It's because they're going to make fortunes with the money they spend. And we are getting closer and closer seeing huge profits for investments that the street has hated. 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 at 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? There's a big cap stock that's 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 Whimo? Now, they're doing terrifically. Maybe you 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 at a price and $342 is the price for Alphabet, whether they get it right or not. Amazing that nobody cares about Uncle Warren buying a lot of Alphabet. All people care about is that everybody's underwater from that secondary offering. They did 13 points higher from your I say so what it's 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. Maybe 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 it Facebook from now on or maybe Insta because people are sick of this Meta name. Last week, this company settled a gigantic lawsuit involving teen abuse that was brought by a heavy list of states attorney general who basically want to crush this company. I know that most, if not almost every single person in the media acted as this settlement was a big win for the authorities against Meta. Those people are wrong. I could not disagree more with them. 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 amount of money for this giant company. They make so much money this company. This teen abuse lawsuit could have been an existential threat to Meta. I was worried 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 wake. 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. Meta is the best advertising medium in history. I think WhatsApp could be the most undervalued asset of all time and the stocks down 7% for the year. You're getting the smartest team who knows what to who knows how to win for next to nothing. Meta is trading at 19.5 times. These are all below the market multiple and they're so good. Just watch. The iconic Dena Pal McCormack, 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 everything and perhaps place a junior college next to the data center to teach people trades that will be there after the data center opens and all the other people have left permanent employment. They'll rent out their voluminous compute and make shareholders fortunes. Meta, it's at the price. How about Microsoft? Look, Mr. Soft is getting religion. They've realized that by giving us more disclosure on Azure, their cloud infrastructure business, we'll find more things to like. They're right. In the end, I come to praise Microsoft CFO Amy Hood, not bury her. They've been very clever getting power for the data centers. Pump it right out of the per. They got this deal with Chevron as a partner. I got to tell you, 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 and I'm this is not a stretch. I'm not kidding. People even like Copilot. Next, I know Nvidia's up 22% for the year, but and that would be a lot for every other company, BUT NOT FOR NVIDIA. This is Nvidia for heaven's 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 uh toward Gibbs. 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 a brilliant move, and it'll put to rest all the nonsense that Nvidia's technology is only good at training, not inference. It's foundational. I'm throwing 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 next year. I'm going to say that again. Less than 15 times next year or investments. If it announces tomorrow that it's going to buy back a half a trillion dollars of its own stock and manage that buyback aggressively like I would if I were in charge of it, not on autopilot. It is. But when the stock drops from these ridiculous dips in there buying, stock grows up 50%. I am not Hey, look. I nailed the Dell for 100 points. Give me some credit here. I think this thing goes up 50% if I manage the buyback where someone like me like an AI version of me. Tesla. All right. Airline needs one thing to happen. The SpaceX buyout. Okay. A stock's down 60% for the year. That seems wrong. Remember remember my supposition. If the rest of the market was doing nothing, then it would be fine that the division 7 is doing nothing. But the bottom line is that's not the case. The market pulled ahead of the mag 7. We got sick of them, right? I mean, the group's about to reap the profits finally of spending all that money, and we now decided that we're so close to we're so close to 2027, and we're not giving you ANY CREDIT. THAT'S WRONG. THE STOCKS ARE CHEAP. I THINK IT IS TIME by >> to buy foundational. Bobby in New York, please. Bobby. >> Hey, Jim. Thanks for taking my call. >> A Bobby, my pleasure. >> Um, I read your new book and I highly recommend it as a must readad. >> Well, thank you. Thank you very well. You're a nice guy. Thank you. >> No, thank you. Uh, in your book, you urge investors to know the purpose of every stock they own. >> Yes. >> I've owned this Dow blue chip dividend aristocrat as a safety net since 2005. What's your current opinion on Proctor and Gamble? >> Okay. Uh, this is something Jeff Marks and I from the club kick around and we're both kind of heartsick about it. We know that 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 at 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 to the sunset. I'm not recommending the stock right now. It's got to get down to 19 times earnings before I'll take a shot at or invest in it to use a more foundational term. Andy in Florida. Andy >> Jim thanks for taking the call and pleas over the last couple of years. It turned out well. Yeah, it did. It did. >> Okay. >> It did. My concern is about their win business, though. It's constantly in the red, and I think their projection this year is to lose about 400 million. >> So, my question is simply is this. Should we lighten up on the stock? Uh given that there are other other forces coming into play like uh Elon Musk getting into the generator business and geothermics. >> I think Elon's doing it for his own businesses. The wind business has been a disappointment. We all know that that stocks like the worst head and shoulders chart I have seen in a long time. However, I think the orders are going to continue. I think that the hyperscalers are 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 our rates go down and I am not that worried about GEV because it has fallen so much from its high. Maybe another hundred and we'll keep buying. Let's go to jury in Arizona. Jury, >> Mr. owner. I listen to your recommendations and I'm getting mixed results from you. I don't know whether >> I don't know whether to buy, sell, or hold my Intel. >> Okay, now 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 fieldy is safe. Here's the problem. The government has a huge position in it and they're 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 stock's been going down and I have been saying listen I may just have to go in and buy more right here get a better average and have it come back. I understand it is mixed but my my belief in Intel is 100% I just need to see the government get out of the stock or just go buy it anyway. I am going to go to Ben in Nevada. Ben, >> yes. Hi Jim. first time caller. >> Uh, it's an honor to talk to you. I'd like to >> I'd like to ask you about Walmart. You know, the expert so-called experts say that Walmart is a better investment than Target. But Target's taken off and Walmart's lagged behind. So, what do you think? >> Yes. Is is such Well, Walmart now down 3%. I I want to buy Walmart. But Target, see, new co came in and he he just kind of energized the place. Cut prices on 10,000 items. That's what they needed. They needed price cuts. The stores look absolutely terrific. Walmart's just Walmart. And when you have one in 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 7 finally are cheap compared to the rest of the market. And I think it's time to buy. Why? Cuz everything at a price. Oh man. Tonight Five Below is is known for selling those viral squishy dumplings. We got hundred of them. I had a couple last night 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 terrorist helping change the way we detect and monitor disease. You brought my look, I had this on MI diversified. You brought it to my attention. We've done the work. I'm very excited about we're going to take a closer look. And so far it's been fighting its way back after months of turbulence. Can this fintech favorite keep the rebound going? I got to see you in person. So stay with Kramer. Don't miss a second of MadMoney. Follow Jim Kramer on X. Have a question? Tweet Kramer #madmentions. Send Jim an email to madmoney@cnbc.com or give us a call at 1800743 CNNBC. Miss something? Head to madmoney.cnbc.com. Last night, we got the latest in a series of strong quarters from Five Below, which is like a a slightly higherend dollar store with more of a focus on kids. This was a stock shot up 7% just after the open today. But then it cooled off and we finished the session down more than three bucks. Now, I think that first move was right. I think the selloff was a mistake. And now you're getting an incredible opportunity in a long-term outperformer that periodically does give you 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 pre previous management. Unfortunately though, I pounded the table on this one in March when the stock was close to its highs at 235, then pulled back to 170s. Gez, by the time uh July came around, most because Wall Street was worried about higher oil prices putting the squeeze on the consumer. Five Below kept putting up great numbers though, but for months that didn't seem to matter. Then the stock bottomed at $173 in July. Do you know it's been roaring ever since going all the way to $263 and change last week before pulling back to $240 again today because oil spiked. Now last night reported really it was a superb quarter and now the stock's getting zero credit for it because people are so worried about the price at the pump. The numbers were excellent though. Five Below put up 14.1% same floor sales growth when the analysts were only looking for 10.4%. Their revenue was higher than expected and their earnings exploded higher. Five Below delivered a 28cent earnings beat off a$140 basis. That's 107% earnings growth year-over-year. Hey, by the way, these numbers don't even include the tariff refunds. If you bake that in, their earnings per share would have been up 418%. Look at at the same time management gave encouraging guidance for both the current quarter and the full year. So they're they're talking about 8 to 10% same store sales growth this quarter. Wall Street's expecting 3.5%. Now they say they'll do a$11 to13 per share in earnings. The analysts only want to see 85 cents. Wow. Five also raises four year forecast substantially across the board. The analyst thought that they'd earn $929 per share. Uh management says it's going to be 983 to 1031. Again that's without factoring in any tariff because I could not believe this stock did not finish up big today. Put it all together and it was a terrific quarter. 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 Felo is to use it. It's kind of a hackne phrase but laser focused on their core customers specifically kids and their parents and that's what's driving these magnificent numbers even in the face of some pretty strong comparisons. A year ago they had 12.4% same 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 phenomenon 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 back to school season. This is a company that understands its young customer base extremely well. They did a great job picking the right merchandise and an even better job of marketing that merchandise on social media. At the same time, Park keeps improving the store, creating a better shopping experience. Layout really matters with this company when you're trying to figure out how to keep young children happy. At first, Five Below moved its higher priced products from the back of the store. Now, they're spread all over this the the whole store, each in their own category. So, what was the issue? The what what what happened that caused the stock to give up all its gains and then some today? Look, I'm 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 uh that was a negative catalyst and this most recent one is the idea that Five Below pass the peak when it comes to its same store sales growth. Last quarter, Five Below printed a quarter with above 20% same store sales growth and then gave updated guidance that implied a significant deceleration with the remainder of the year. This time around the idea was confirmed when their same store sales were only up 14%. But man, mo most retailers would kill for 14%. 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 comps were much much much much much better than expected 14% when Wall Street was looking for 10%. I don't know how anyone looks at that and sees a sign of weakness and yes for the full year five below says to expect 10 to 12% same sort of sales growth which represents another deceleration versus the first two quarters of the fiscal year. You see why the stock went down but they're also lapping increasingly strong numbers. So, let's not forget the company has started to develop a reputation for upupod. They underpromise then they overd deliver with Winnie Park at the helm. Ever since she took over, Five Below has beaten the comps in six out of six quarters. So, here's what I'm focused on. Five Below just raises fullear earnings outlook by 14% in the midpoint. Yet, it stock actually went down today. Suddenly, this thing's gotten 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 on market multiple, but it's such a better stock than the than the average stock of the market. Now, with the midpoint of the new higher earnings forecast implying more than 50% growth versus last year, that strikes me as an incredibly fair price to play. Honestly, I'm calling this one a steal. So, let me give you the bottom line. Last night, Pablo reported yet another extraordinary quarter, the latest in a string of them under new CEO Winnie Park. I think her strategy is obviously working and the stock simply not getting much credit at all because Wall Street's worried about higher oil prices putting pressure on the consumer. Uh, and I just think people are just finding endless reasons to quibble over an objectively great set of numbers. Stock deserved to jump nearly 7%. It shouldn't have been a head fake that it was and these insane gains that they evaporated. You know what I say about that? I say bye bye bye. Yes, I think that five below is a buy by by buy. Everybody's back. Everybody >> coming up, you put Kramer to the test with a call about Nitera. Now he's ready to deliver his results. Next last week during uh am I diversified summers in Pennsylvania stumped me with a stock called Nerra. Now it's hot and I simply haven't been following it closely enough to give a good answer. So now I want to circle back because it is an intriguing story. See, Nata 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 a cell, which lets them detect information early, especially when we're talking about embryos. Now, originally, this nut was 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 amnocentesis needle. remember that scary thing. But gradually, well, unless you're involved right now, but gradually they've taken their DNA testing platform and then pushed it aggressively into cancer screening, which is a lot bit 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. Nutter's blood test can quickly let you know if the cancer is coming back. Company published fresh lymphoma data this week that 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 to30 billion dollar business. And right now, these guys only have a small fraction of that. Now, TE also has this organ transplant test to spot early indicators that the transplant is being rejected. Medicare now covers this for kidney, heart, and lung transplant recipients. Who wouldn't want to? 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 why the terrace stock is up 55% over the past three 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 I keep talking about, especially the ones with the highest growth. But some of it's company specific. See, about a month ago, Dera reported a phenomenal quarter with much better than expected revenue, surging gross margin, and a total test volume of 22.4%. Their oncology tests, cancer test volumes were up 57.2% year-over-year. While the company's not profitable, which does bother me. It's headed in the right direction. It lost 47 cents per share, 2 cents better than expected, much smaller than the 74% loss they reported a year ago, but they're losing money, and I don't like that. But Wall Street sees Nar turning profitable in 2028 with tremendous earnings growth from there through 2031. The balance sheet gives management plenty of room to keep investing. They finished the quarter with roughly $1.09 billion in cash equivalents against only $80 million in debt. Now on top of that, management raised its guidance to Terry increased its fullear revenue forecast by hundred million 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% with positive free cash flow. That combination is exactly what we want to see. It's what's really drawing the buyers. This product pipeline adds another layer here. Signeter, which is their cancer test, has achieved significant regulatory milestones. Medicare coverage expanded for their kidney transplant test. International expansion starting to matter too. Their cancer test has gotten some big approvals in Japan. Now, Natara has some major backers. One that jumped out to me, Stanley Dra Miller. He's the big-time hedge fund billionaire. Absolutely loves the stock, at least as of a few months ago. His family office had $865 million position in this company at the end of June. Naro alone represented 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 with a grain of salt. I know Stanley saying, Jim, come on. But I'd never buy a stock simply because Stanley Ducking owned it as a couple as a filing a couple months ago. Filings are backward looking. Still, it does tell you that truckiller had a lot of conviction in the terror at the end of 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 risks here. The terror is not cheap and it's certainly not undiscovered. 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- date, the industry itself comes with plenty of uncertainty as well. These tests require continued clinical val 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 caller who brought it up and Stanley Dra Miller are probably on to something. In the end, I think this is a promising story. Nutter is doing incredible things with his DNA fragment blood test, and their business is on fire. I think it represents a major facet of personalized medicine. Something I care tremendous about because I think it is the future of healthcare. Bottom line, I would put Nero on my watch list because it's moved so much. I think it's just run to to the point where I can't justify chasing it, but it is definitely worth waiting for a pullback and then doing some >> buying. Let's go to Bill in Massachusetts. Bill >> Jim, I'm trying to diversify out of some of the AI theme and um I missed uh Johnson and Johnson and I miss Cardinal Health, but I was thinking about doing one of our other club stocks and adding to my Eli Liy. 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, actually, you know, you know, tell you the truth, Bill, it's it's pulled back. Uh, I think you're fine. I think you're fine to add some. I I'm I'm gonna okay that. And I understand JJ's moved a 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 Ann Indiana. An >> Hey, Jim. As a club member, thanks for steering us through these, I guess, more defensive times. >> Oh, thank you. Yeah, you know, we have to look, we can't be whole hog when we don't have the Fed on our side. That's the big problem. Today was a brief. How can I help you? Does you unh 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 last quarter was 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 that UNH is good to buy. I want to go to Anthony in New Jersey. Anthony, >> hey, Big Jimbo. How you doing today? >> Not bad. How are you, Anthony? What's going on? >> I'm doing all right. A big booya to you, $50. >> I appreciate that. >> All right. >> I need you. I bought all your books and you signed them all for me. >> Uh the the question I have for you today is about big pharma. Uh which stock is best to breed? Is it J&J, Fizer, or Eli Lilly? And is it? >> Okay. So, let's take let's take them. J&J is best to breed AAA balance sheet 18 drugs. No loss of equival of uh you're not going to have any expiration problems. Okay. Uh Lily has one huge drug that we know is going to be a franchise for many many years. I do like a diversifying pattern more and fizer starting to creep up and is playing catchup but I need a reason to recommend it. So I'm going to say J&J and Lily and then Fizer and thank you for the kind words and for the buying of my books. All right. Now if you like the terra I'm actually giving my blessing to put a Yeah, look at it pull back a little bit. You can put a position. I really like the story. I just don't like the losses. Much made money had including my sit down with SoFi. How is that stock fairing in the current rate environment? It's very rate sensitive. I've got the CEO. Then the market's taking its cues from the bond market, but is there enough money on the sidelines to keep stocks running? I'll explain in a positive I in a positive light though. And all your calls rapid fire in tonight's edition of the lightning round. So stay with Kramer. Right. What do you make of the action in SoFi Technologies, digital bank of choice for the younger generation? I've been a longtime believer in this one. And by the way, last year my faith was rewarded as the stock ran from $8 to an all-time high of 32 bucks in change in November. Fortunately, so far spent the last 6 months bounced between 15 and 20. Even though the reported really solid top and bottom line beat in late July, stock actually sold off 9% response. I didn't understand that. Since though not though it's been rallying hard to the point where it's now up more than 10% since that quarter. So can the stock keep rebounding? Let's check with Anthony notto old friend CEO of SoFi. Uh well Anthony back I can't believe you're here. It's great to see you in person. >> Great to see you Jim. >> Okay so Andy I got I I got to tell you you revenue expected to be up more than 30%. Even earnings per share expected to go more than 50%. I'm trying to figure out why the stock might be stuck here given the fact that the fundamentals are clearly stronger than people expected. >> Sure. As you said, we've seen revenue growth of more than 40% in the first two quarters of this year. Record margins, really strong profitability, strong credit performance, diversified revenue, 60% lending, 40% non- lending. Um, 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 of the matter is over the last 5 years we've delivered 20 consecutive quarters of more than the rule of 40. So more than 40% revenue plus revenue growth plus margins. In fact last quarter was 70 which is astronomical. >> Doesn't that tell you I mean other companies have had very similar and and it hasn't correlated anymore. It should correlate. Both you and I know it should and historically will correlate. Do you think it'll come back and start correlating again sometime? >> As soon as there's um some certainty around interest rates. that we have we have the Fed meeting in September 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, is the stock was up over 144%. Because interest rates were relatively stable after going up for 3 years. So I think we're going to enter a time period again where there's stability in interest rates or a 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 growth story primarily. Growth in accounts, growth in offering new products that more accounts come from. And yes, I'm going to say it. The SoFi name is it's the one of the only times I've ever seen the naming of a stadium bring in more people. And and the right people too were very interested and they take a lot of your products. So why isn't it considered more of a uh let's say a tech company than a thin company? >> Well, the way I would think about it is this. We're using technology to deliver a financial service to our members. >> A SUPERIOR PRODUCT. >> A superior product. Without that technology, we couldn't do it. Okay. Um 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 a 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 of more than the rule of 40 because we can allocate capital to different businesses in different environments. And that ultimately is what's driven that durable growth and as I mentioned doing $1.2 billion of revenue last quarter up 41%. >> Very big. >> 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 get they're getting more engaged. They're trusting us more and they're doing more with us and so we said on the call that it was a real inflection point where for the first time we had 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 of them sofi coach? You mentioned several times in your uh conference call something that people really uh like because they they've got the whole paniply 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 going to get by. >> Are you winning that battle? You know how I feel about that. >> But if you invest, you invest, you can get ahead. Right. And so S SoFi Coach 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 around the office. I asked anyone use stablecoin does and because I look I think it's a novel idea but does anyone really have an appetite for stable coin I know you want to offer everything people want but is there demand so USD is this payment stable coin think of it as payment rails it's not necessarily something consumers will want to use every day some people want to use it for international remittance that's probably the best use case >> that would be right >> but in the United States the primary value it's going to provide is for payment rails so for example SoFi is now doing settlement with market makers and exchanges in SoFi USD instead of fiat. Additionally, payments can be made between merchants and card networks 24/7. Dollars don't move at 24/7, but they should. So, we have a deal with Mastercard where we're moving towards settling on a 24/7 basis using SoFi USD on tens of billions of dollars of spending that would have to wait 3 days to settle if we're using the traditional payment rails on a Friday through a 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 because I I don't want to bank in uh stablecoin because I have a very traditional traditional way I do things. But as long as Mastercard's in there because I know me, he's very very thorough person. That's a great team up for you. Now, tell me about the everything app strategy. How's yours compared to say another company that has 28 million people and is doing quite well with a great stock today? >> Yeah, Robin Hood. >> We have a very diversified business at this point. 85% of our products are from non- lending 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 in between. And so the real driver of our business is building a onetoone relationship with a member, building greater um trust with them 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. And that competitive advantage and higher LTV allows us to give better interest rates on savings, 4.5% interest on SoFi Plus, better interest rates on loans, 12% on unsecured personal loan versus 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 inschool loan. And uh last but not least, we will be seeing you uh on Notre Dame Games this time. Good good exposure. >> We're very excited about the partnership. Uh if you go back, >> even though you went to Army, you went west, you know, you don't mind that, huh? >> I grew up as a diehard Army and Notre Dame fan. Um 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 team. >> Oh, absolutely. Including me. Well, I want to thank you, Anthony Nodo, CEO of SoFi Technologies, for your educating the people who bank with you, cuz that's what we need this next generation. We teach them. I like what you said. We get get them to save. Right thing to do. Everybody's back. Great. Thank you. Good job. >> Coming up, he's the fastest mind on Wall Street. So, we're putting him to the test with your help. Bring on the lightning round next. Before we get going with the lightning round, a reminder this Labor Day, don't just take the day off. Put your money to work with me and the CBC Investing Club. You're going to get the morning meetings, which I do with Jeff Marks. Get my market analysis and a front row seat to how we manage the club portfolio with every twist and turn in this market. Plus, if you join now, you're going to get a signed copy of my latest book that you hear people talk about called How to Make Money in Any Market. I need you to scan the QR code or do this. Head to cnbc.com/cramerclub to join. I sure hope you do. I look forward to seeing you in our monthly meetings. And now it is time. It's over. The light round by you. Play the sound and then the lightning round is over. Are you ready? Tell them. Okay. Start with Jeff in New York. Jeff. >> Hello, Mr. Kramer. This is Jeff from Sodas, New York in the Southshore, Lake Ontario. >> Holy cow. Yeah, I remember that. I remember that lake. What What's going on? Picking up the last of the garden vegetables and I saw that on X that you had plenty for Lisa's non better sauce. >> Oh my god. Yes, that sauce is so good. This was my The one I had last night was a little too hot and I had to take some Pepto. Don't tell her. She doesn't watch the 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 Fingerlakes food packaging company that is up 50% in the last 6 months, and it keeps hitting all-time highs. Hold or take profits in Senica Foods? I don't know. Senica Foods. I don't know. I stopped following. I should follow more food companies. I got to go. I gota I'm going to give you a considered answer on that. Senica Foods. I do not know that company. Let's go to uh Ron in Arizona. Rod. >> Hey Jim, thank you for taking this call. >> My pleasure. >> Awesome. So, I'm talking about new scale and last year it would seem every day they would uh reach a new high. I want I want to know what you think has changed and where do you think people I think what's happen is people recognize that it's a lot harder to build a nuclear power plant. Whether it be whether it be big or small or modular, it doesn't matter. Just really really hard. That's why we own Gernnova for the trust because at least it's got some nuclear and I don't feel like the things will get get too out of control. That's the problem. Let's go to John in Florida. John, >> how are you Jim? First time long time. >> Oh, fantastic. John, glad you called. How can I help you? >> Doing well. I wanted to discuss IN took a little dip after >> Neocloud. Neil Cloud. If you're going to do Neocloud, you got to do the only one I like is Core Weave with Michael and Trader. The others I think are too speculative for me. Let's go to Chris in Louisiana. Chris, >> good evening. Jim, my question is about uh Box in the software section section. >> Box is finally, after multiple years, it is finally breaking out. It has good storage. People like storage. It's got a good CEO and Aaron Levy. It's just 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 in Connecticut. Kurt >> Jimmy Chill, how you doing, brother? >> Not bad. How about you, partner? >> Awesome, man. Listen, longtime listener going back to 2006. First time caller. The reason I'm calling you today is Newation Bio Nuv. I wanted to run this by you. I've held the stock now for almost 9 months and I'm basically even. They've got Troy, this differentiated cancer drug that's got a lot of promise, but they're unprofitable. Well, the way you got to look at this, this is just a pure spec. It's just a pure spec. And you take it and you accept the fact that it might go to 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 uh 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, ladies, conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer sorting through the endless shifts in this market to find their sources. Next, the stock market is a cheap date. If interest 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 in to buy stock. That's that is the exact litany what drove today's phenomenal gains. 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 the stock market be such a lap dog to the bond market. It obeys the bond market in any direction, including rolling over and playing dead when the bond market says to do so. Of course, the problem is that the bond market has become a heinous taskmaster. We know the cause is too much supply of debt and too much inflation. In theory, you can cut the supply from the government, which is humongous and unrelenting. But in practice, Congress has no interest whatsoever in balancing the budget. On the other hand, the big data center fundraisers might be winding down because there's now enough cash flow, as I mentioned at the top of the show, coming in that they can pay for this buildout without more huge borrowings. Now, that matters. See, the bond market is oblivious to the to to who's supplying the bonds. It just cares about the size of the merchandise. It's possible, by the way, this current tunch of US government bond offerings may be the last. That's long term. that makes Secretary Besson's job easier provided that the Fed doesn't raise rates. Are there structural reasons why the stock market can snap back? I think the easiest to dissect is the article this morning in Bloomberg about the number of 401k millionaires in Fidelity that just rose 19% to record 769,000 between the first and second quarter this year. Presumably, this is all captive index money, a constant source of new fuel for the market. Second, when I look at the numbers now, I'll say of the new accounts at places like SoFi that we are familiar, Robin Hood, more than 40 million alone for those two. I know that some of that money is headed to the stock market. I know that some of these accounts are open to get loans. Some others are to trade crypto into oblivion, but a lot of it is inheritance as my fellow baby boomers passed their money on to the next generation. Now, at 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 daily loss of ETFs has helped lure people into stock groups, but I believe that we're now back to owning individual stocks in a popular way like a Palanteer or an Nvidia or SpaceX. They are owned and they are loved. It is not just GameStop anymore. Understand the money spot gets shut down every time rates go higher. Tight as a drum, but right now today the spigot open. So, the money's just flowing right in and I think it could keep flowing. We have a lot of stock slashing around right now. But if my sources are 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 Iran ever comes to an end, ask yourself, do you want to be short this stock market? If you do, please check your mail cuz I'm sending you an invitation to your funeral. I like to say that there's always a market somewhere. I promise I find it just free. Radio made money. I'm Jim Kramer and 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 treat 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. 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