Mad Money 08/05/26 | 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 Crra America. Other people, my friends, I'm just trying to make a little bit of money. My job is not just to entertain, but to do some teaching, educate you. So, call me at 1800 743 CBC. Tweet me at Jim Kramer. Tonight, tonight I'm breaking for. We're going to do some personal finance, some estate planning, some advice for parents of newborns, a long-term concept, maybe a new way to look at things for children or even better, grandchildren. Yep. Tonight, I'm talking about an investment in Space Exploration Technologies Corp., otherwise known as SpaceX. Elon Musk brainchild. So while the Dow shot up 263 points today, they record close. S&P dropped.17% NASDAQ declined 83%. I'm going to pivot and talk about SpaceX, which was down a hideous 13.6% today. You know why? Because one day I think this stock could be a huge winner. I just don't know when that day will come. I do know this. 911.5 million shares of SPACEX WILL BE UNLOCKED FREE TOMORROW, meaning various insiders will be free to sell a big chunk of previously restricted stock. Now, that is a ton of shares and then some. Historically, that means tomorrow is likely to be a bad day for SpaceX. Make no mistake, there's a very good chance this thing gets hit again tomorrow, even as pretty much anyone connected to the stock in the profession seems to be aware of the avalanche of stock coming at you. and a lot of people have shorted ahead of it. And that's why I want to take this moment to explain why the stock might be valuable years down the road. Again, with the caveat that I don't know how many years or even which road, but you know what? It doesn't matter. I'm not being facicious here. This is Elon Musk we're talking about. Quite possibly the greatest business person of our time. Because of his success with Tesla, he's been able to raise all the money he needs to get the job done. So, even as skeptics may blanch about the long-term viability of a company with so much mammoth ambitions that need so much cash, I would tack the other way and say that Musk will never have trouble raising money. He easily raised $44 billion to buy the money, losing Twitter for heaven's sake. So, I bet he'll have no problem raising a couple hundred billion here or maybe a few hundred billion there or possibly much more once SpaceX has a line of sight to profitability. He has that many accolades, that many true believers, many of whom have enough money to help his cause. As long as he's there, I think this one's good to go, which is one of the reasons I like the story. But for the extremely long term, what do you get? What do you get with this stock that may pay off in the distant future? Maybe not fast enough for you, but just in time for your kids or grandkids. Let's delve into last night's earnings presentation, cuz it told us a ton. First, Musk is developing a rapidly reusable rocket with Starship. Musk makes this one a little tough to understand because he measures success in terms of tonnage to orbit. New metric for me. It's a good apples to apples metric though. Right now, SpaceX is delivering 2500 tons a year to orbit via one of these rocket classes, the Falcon. In his words, that's 80 to 90% of total Earth Bass to orbit per year. So, he's got the edge on everybody else. He has aspirations to send up millions of tons per year. One of the primary uses he wants ultimately to perform is to install data centers in space. Don't laugh. Don't snicker even. Sure, they're heavy. But the entire goal of the space business is to be able to send up heavier and heavier goods. IT'S KIND OF WHAT HE'S GREAT AT. Better than everybody else in the world. I know the idea of a data center in space sounds kind of crazy. Sure, you can save on air conditioning, but is that really enough? Look, you know who believes in the concept? The person that maybe I trust the most in business. How about Jensen Wong, the visionary CEO of Nvidia? >> As far as I could see right now, there's no physical limits. There's no laws of physics uh limitation. There are a lot of technical challenges. Some things are way easier. Some things are way harder, of course. Um but one of the things that's really terrific is that the amount of energy that we'll have in space is, you know, basically practically infinite. And so, so I think that that's a a very big plus and a and a really a really great motivator and a a reason to to really endeavor to put data centers out in space. Sure, Jensen stands to win here. I know that he's talking his book. Oh yeah, Mus has committed SpaceX being an all Nvidia house, so they'll make the GPUs for these data centers in orbit. But so what? He's a believer. It's not idle and it's not farfetched. Lot of sun, very cold. If that's the case, why am I only recommending SpaceX for the uber patient? Well, that's because of comments like this that I'm about to give you that do sound like science fiction and probably scare some of you or make you think, "Wait a second. Will you give me a break?" Listen to what Mus had to say on SpaceX's conference call last night. I know this sounds totally nuts, but you you can you can probably scale to um a thousand times the economy of Earth in terms of intelligence launch to space. Uh but probably, you know, maybe even a million times. Um so, you know, we are going to land a lot of tonnage on the moon. We're going to build the factories on the moon. The robust will be helpful with that. Um and then it's like well how much intelligence would you like uh as we you know grow towards being a a cautev two scale civilization. >> See that that's going to make people uneasy and I get that but I'm a believer in Musk. I he's sounding a little too much like Conrad Hilton the third season of Madman there though. Still when you look at the business it's got a lot going for it. Keep in mind, SpaceX has Starlink, a worldwide satellite internet and mobile service system that I think is better than what you're using now. I have it. It's unbelievably fast, high quality, cost much less than my regular provider. There's service availability in 167 markets. They just signed uh 1.7 million internet subscribers this quarter. And on the mobile side, they're gutting, I mean, they really are gutting for Verizon, AT&T, and T-Mobile customers. Those stocks rolled down today. As Gwyn Shotwell, president and COO, said on the call, "I anticipate us to be able to acquire quite a few of their customers because I think our service will be better." End quote. Now, again, as a customer, I believe them. By the way, I'd much rather hear about Starlink than Moon Robots. Uh, but the latter are a lot more fun, aren't they? Now, Mus says they're quote, "Already the choice among airlines with outstanding customer feedback, but still have significant room to growth." In fact, he goes on to say, "We have heard from one of our airline customers. Shockingly, customers are flying shorter hop flights instead of direct so they can ensure that they are on a Starlink activated flight." They've never seen this in the business before." End quote. Finally, you're getting a huge amount of computing power which will either be used by SpaceX or be rented out for a considerable amount of money, some of which has already been rented for billions upon billions of dollars. Very shrewd. We talk about this stuff all the time. The world's hungry for compute. No one knows how to use it better than Musk. It can be used for a bunch of other SpaceX businesses. Gro 4.5, which is getting better with each release. The younger people tell me it's being used for X, which remains very important. It's used for Cursor, a popular tool owned by SpaceX that can help write code. Now, I've given you lots of shortorthhand about what this company does tonight. I don't want to make it sound like Child's Play. It's anything but. Full disclosure, I would never recommend SpaceX if Musk weren't involved. I know this company will need far more money than it currently has, but unlike so many others, I'm confident that Musk can raise all the money he needs and see this through. Maybe you don't believe me. Do you think your children or if you're older, your grandchildren won't be doing stuff on the moon someday? Do you think that orbital data centers won't make sense? Even they they can get all the power from the sun and all the cooling from space. Nobody lives up there. Might end up being the only place that the politicians let us put them. So, do this. Think about it. Maybe you put some away for the next generation or even the one after that. Hey, back in the day, people bought 100red-year railroad bonds that paid off. >> Don't buy. Don't buy. >> Here's the bottom line. SpaceX could be a 100redyear piece of paper, too. Maybe. Imagine if that way like a 100red-year railroad bond, but with a heck of a lot more upside. But no pressure. The stock could go lower because of that lockup expiration I just mentioned. So, you got plenty of time and plenty of space. How about Dustin in Oklahoma? Dustin, >> who are Jimbo, how you doing today? >> All right, couldn't be better. Thank you. Feeling like Feeling Feeling peachy. Feeling peachy. >> It's been a great last few days. Hey, real quick. I never do this, but I just wanted to give a quick shout out to my father. It's his 71st birthday today. Randy, he's the one that got me uh involved in individual stocks and uh thank you, my friend. I thank you both. >> Don't be mind that shout out at all. I think that Happy birthday. Happy birthday to D. >> Thank you. Thank you. I love it. So, we just went to San Diego for a family vacation where I grew up and showed my family around and football season's starting. I'm a Chargers fan, so I took my family to go see this stadium. This stock has been ragebound from 16 to 19 over the last 6 months. What are your current thoughts on SoFi? I'm a long-term investor, but I want to hear what you think right now. >> Okay, look, SoFi, Robin Hood, a bunch of these fintech companies have kind of been in the doldrums as people said, "You know what? We're focusing. We're going to go right back to the old. JP Morgans and Bank of America is a Bank of New York. So, I think what you're doing is you're seeing a a shift toward the old. It'll come back to the new. Take your time. So, is good. I would own it. BK in Massachusetts. BK. >> Professor Kramer, this is BK from Massachusetts. It's a pleasure to speak to you again. >> Oh, thank you. Good that you call. >> Yes. Uh, so I have a question on sterling infrastructure, right? I know you've uh you know uh had had them on uh previously, but the stock recently after earnings, it's been cut down pretty pretty significantly. It's almost cut in half. So, wanted to take get your take if it should be if it's a good buy or hold this level. >> Look, I think this thing got caught up in that whole uh situational awareness hedge fund where these kinds of stocks went down. And what it's doing is giving you another chance to get in and I would take advantage of that. Don't buy it all at once. $500 stocks tend to drop very quickly and then you get a chance to buy a little more and more cheaply. Anyway, look, I think SpaceX will go lower maybe before it goes higher because of this a big chunk of unre of of freed up stock that will trade tomorrow, but maybe that's a chance to get in on a very long time story. You got to think like that. On May money tonight, Arista Networks just delivered another terrific quarter. So, what's ahead for the networking equipment company after an already strong 2026? I'm finding out with the CEO then with the schoolworm and tick threats hitting the veterary health space. I'm going to sit down with the industry leader Alanco to get a sense of where things stand and health companies position. And then one of my all-time favorites Shopify just hit an all-time high after earnings. A lot of people were stupid enough to short it. And I call them that. I don't mind. I'm a believer. I'm going to get the latest from the company's top ass. 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 1800743CNBC. Miss something? Head to madmoney.cnbc.com. Last night, we got still one more fantastic quarter from Orisa Networks, the networking equipment maker with a ton of exposure to data center. After spending July in the doldrum, stocks been on fire like every other AI play. It tacked on almost 4% today thanks to these incredible results. Arisa posted a sizable revenue beat and a 13cent earnings beat off an 89cent basis. They also gave strong guidance for the current quarter and raised their fullear revenue forecast. At this point, the stock's now up about 50% since we spoke to the company in February. Can it keep running? Let's check with Jri Yal. She's the chair and CEO of Arisa Networks. JP, welcome back to Bad Money. >> Hi, Jim. It's always good to be with you. Well, it's great. How are you? >> I'm doing fine, thanks. And one of the reasons I'm doing fine is that once again you crushed it and and it's not just up 50%. But the fact is is that that you had your first $3 billion revenue quarter. This is a remarkable journey from when I know I first met you. What is behind the strength in this $3 billion quarter? >> Oh great. It's great to be here Jim. Just to put this in perspective just 5 years ago our entire year was less than three billion. So clearly we have a remarkable set of customers uh a great team and the best of breed products ever. But the secret source that's putting all this together is our software our extensible EOS and the fact that AI is not just a point product for us anymore but is really a platform to construct these AI centers as I call it. >> Now I I do think that people need to know I mean in your conference call you you're a partner with Nvidia but you also have to go against Nvidia. They've got they've got a stack that competes with you. How are you ever able to be able to win business that might have gone to Nvidia? >> Well, first of all, yes, we are a little company relative to Nvidia. Everybody starts out little before they become bigger. And I have enormous respect for what Nvidia has accomplished. Um, if if Nvidia and Jensen did not build the GPUs, I wouldn't be here to service their networks, right? So when you look at the entire stack if you will there's the data centers and the physical power infrastructure then there's the XPUs Nvidia being the market leader then you have to have a network you need a foundation to build a good house and then of course you have the diversity of models and applications and agents so if you don't have a good network what happens whether it's Nvidia or other XPUs is you end up idling in a state where you your your um processors are extremely inefficient And these are very expensive assets to leave idling. So we feel very blessed to be working and connecting to the Nvidia GPUs. But I'm equally excited to be connecting to the Google TPUs or the AMDMI series as well as a range of accelerators that are coming out in the market. So the name of the game here, Jim, is diversity. Diversity of accelerators and diversity of models with one network, which is hopefully Aristotle. Now >> in the years we've been talking to each other, we've talked about titans. You introduced the term. I like you much more than hyperscalers, by the way. Uh, but there's a new big wave of customers and they're choosing you, too. So, you're somehow penetrating into the next level of the new guys. How is that working? How come you're able to get in there? >> I think I I like the name Titans, too. Hyperscalers makes it sound like, you know, they're very hyper, but they're actually very methodical. And >> only you can get away with I couldn't say that. See, I couldn't say that because people say, "Oh, he's a comedian." But you're right in the thick of things, so I'm going with what you have to say. Go ahead. I'm sorry. >> We'll we'll we'll go with the side job together. But what I was going to say is the the Titans have done a fantastic job of not only building out cloud computing, but now layering AI on top of that as a fabric uh so that they can connect their back end and their models with the front end and the CPUs. So the same cloud titans are now becoming AI titans. But the point you bring up is an excellent one too. There's an increasing number of neoclouds that are creating this massive amount of augmentation be it inference accelerators or training because power space and compute capacity is at a real constraint right now. So we need both. We need the large titans to build these u megawatt data centers but we need the smaller distributed ones as well to complement that. And then you add sovereign AI to it and different geographies have their own limitations. So it would be very difficult to build a worldwide AI fabric with that with just the titans or one suite of customers. You need a mix of all of these hybrid possibilities. All >> right. Now you brought our attention uh to this problem of supply chain particularly memory. Uh you were the first person to mention it. I think a lot of people were pretty glib about it and figured you know look these are commodities. You just pit them against each other you get what you want. How do you see it coming and and it's really made it so that you are even more competitive than ever because you have memory. >> I think I told you the last time I was here, memory is the new gold. I think you know we you need to have the gold standard in memory and we are very proud to partner with the absolute best uh memory leaders in the world. But this has been a tough journey. I was a little more of a Debbie Downer in the last quarter about this if you may recall because frankly I believe in sharing the good, bad, and ugly with our shareholders. So last November we saw some shortages in memory, in optics, in silicon substrate, wafers, chip components, and we began to work on it. And you can see our purchase commitments for components has tripled in the last year. So, one way we're really leaning into all of this, including memory, is by planning ahead and buying more because many of these have lead times of 6 to 12 months. Uh, the second thing is an outstanding leadership team. If you don't have the people executing, you can plan all you want, but you have to bring it in and bring it home. And the third thing I'm most grateful for that improved significantly in the last few months is our partnerships with key vendors. We signed some fairly large commitments and multi-year agreements to make sure we can be assured of supply because at this time of supply chain, which I believe is an industry-wide phenomena for two years, the best thing Arista can do is work with our partners and commit to supply over these two years. So, I think these three this three-pronged approach is going to really help us. doesn't mean we're out of the woods and doesn't mean there more won't be more tight supply or rising components, but we feel pretty good about our execution. >> Let me ask you, I've never talked about a company that we have on, you've probably seen them, that probably is a great uh a great, let's say, window for you, which is Snowflake. I mean, could you tell from Snowflake also that this problem is going to occur because they're scrappy like you and they're great like you? Well, I love what Frank and Shrether have done at Snowflake and I'm I'm privileged to have an inside view since I'm on the board, but I think we saw this problem from actually our customers first because they needed to start planning building these data centers, getting the power and compute almost 18 months to two years. Um, Snowflake is certainly on the fourth or fifth layer of the stack where they're building the infrastructure, but I needed to get down to the brass stack where where's the power? Where's the building? Where's the real estate? Where's the cooling? And that gave me an inside view into how we would connect to that appropriately in the next several months. So, I think the earliest preview was from our customers putting in the capacity. >> Well, I know that's because you're hands-on, although you do do give an exhaustive amount of credit to people who do a great job at your company. I've been reading a lot of conference calls in my career and you have more names and I think people should recognize when you do that, it motivates people and it doesn't cost you anything to mention great people. What did it cost you to say all those great people's names on the call? The answer is nothing. But boy, did it mean a lot to them? You know, it does. >> You know, I absolutely does. Since you and I are probably similar in generation, I'm a big fan of I get all the credit and debit, but as you know, it's the team behind me, right? >> And it's like it's like the Beatles. So, we're a Beatles team here of a lot of people executing. And I haven't yet figured out if who the lead singer or guitar player is, but we certainly work like a team. You don't need to do that. But we do know that you do run the company and you do a fabulous job. Jay Shri Yalis, chair and CEO of Arista Networks, a company that we have liked from your first crisis when you you talked about your first I'm not even going to bring it up, but you solved it just like everything else you do. Money's back after the break. Thank you. Thank you, J. >> Coming up, returns have been healthy for Alenco Animal Health. So Kramer's checking in after the quarter with the CEO next. Normally stocks in the same industry trade together, but we've seen a pretty wild divergence in the veterary pharmaceutical space. Just in the last 12 months, Alano Animal Health is up 85%. So, Wetis has been cut in half. After years of trading sideways, Elanco finally came up with a handful very impressive products for some major end markets. Now, they're taking share and taking names all over the industry. This morning they reported an excellent set of numbers beating estimates on every key line. Organic sales up 8%. Imagine also raised their fourear forecast. Initially the stock traded up more than 9% in early trading although eventually it pushed you pulled back a little bit. It's finished session up 2.4%. But this was still a great quarter. So let's take a closer look with Jeff Simmons. He's the president CEO of Lanco Animal Health to learn more about what's going on. Mr. Simmons, welcome back to Mad Money. >> Hey, great to be here Jim. Thank you. >> All right. So Jeeoff, it looks like it's innovation that's really driving the outperformance. Maybe you can talk to us about the big six because I like that when I read through your packet. There's clearly some some very big drugs that are really driving things. >> Yeah, I guess maybe that's our number, right? I think uh I just told the team today, this is probably our best six months, Jim, the first six months of this year. And since our IPO in 2018, uh, you know, it's probably been built over the last 6 years when we acquired Bayer and really started building this. But if you lean in and say what's driving it and these these big six innovations without question, we've got differentiated innovation, these are what we believe are best medicines and the market share we've been taking over the last year and a half. You can see that in big markets, Jim. So, you know, parasiticides and derm, let's just take those two on the pet side. $6 billion market. We got Credellio Quattro broadest spectrum product. Um we continue to you know build out and you look at the four dimensions of differentiation fast tick kill ticks are up right now in terms of the prevalence. Um you know just overall in terms of the products you know spectrum and tapeworm. Um we picked up 3,000 clinics. We're over more than half the clinics in the US. Seven points of market share in the first half. So that's a billion.5 dollar segment in itself that we've got an early innings on taking share. We got a long runway. And then over in Durham, the itching dog, $2 billion market growing in and outside the US and uh we we've got Zenrellia and Zenrellia has done tremendous. I mean it is the product that we think it works. It works really well. Again, we're in more than half the clinics and we're climbing share in a significant way. And we're introducing now another one of the big six right now. Buffrena, a MAB product, monoconal antibbody. This is that kind of allergy shot six to eight weeks and we're bringing that to the market. Candidly, we can't quite meet the demand out of the gate because the demand's so high. So how does that happen? >> Big markets, best medicine, lots of >> How does that happen? You can't quite meet the demand. I mean, is this just something that's new that was where there was nothing else before? Is that what happened? >> No, there there is a product, you know, a competitive incumbent there. But I would say we're bringing a product. We think we got a differentiated label. This is 6 to 8 weeks, so a little bit more extended relative to the competition. And I think, you know, the market wants Durm itching dogs. What a veterinarian wants to do is they don't want a pet owner to return saying, "Hey, the dog is still itching." And Zenrelli has done a masterful job. We're in now 47 countries uh with this product. And we've taken number one spot in Brazil and France already with Zenrellia. So here comes here comes a monoconal antibbody and we're just simply in the early stages of ramping up the manufacturing. >> Jeff, you mentioned something that I don't think people realize is a really bad problem. Ticks, they've gotten worse. Uh there's also some new kinds of tick, this lonear tick, and it it's really scaring people. Uh it's scaring people from their pets. We're afraid. So uh what are you doing to help us? Yeah. >> Yeah. No, there is no question. You've seen more and more written about it. It's it comes back to what I talk a lot to the human pharmaceutical and planet. This one health challenge. You're seeing more and more things that are coming between both the animal health and the human health. And we're leaning in heavy here. So look, we just published our second data on quick speed to of kill to ticks better than the incumbent products that are out there today. And uh this this matters to pet owners. It matters to veterinarians. The blacklegged tick is another one. And that's where we've got the strong differentiation. and you know the transfer over to Lyme disease as we're seeing a prevalence there. So uh for Credelio Quattro we see big differentiation here and by the way with Quattro we're just getting started in international markets u that that international market is growing double digit. >> Okay so what is the resistance I mean you go to a let's say you go to a vet and the vet say look I've I've had really good luck with this other medicine I don't know why I want to switch. Is it that kind of thing? No, you know, look, we're we're we're very happy to say picking up 3,000 clinics in one quarter when there's 30,000 clinics in the United States. I mean, our ramp rate is beyond I mean, it is it is speaking that we do have a very differentiated portfolio right now. And you know, when you walk in and we had the parvo product for a monoconal antibbody that entered us into a lot of new clinics then we come with a quattro into the parasiticide market now a derm product and a second derm. We're picking up leadership in a portfolio where to a veterinary clinic today we mean more than we've ever in 70 years as a history of our company. >> Well, speak to me about uh about well livestock. Uh there is without a dou I mean for instance we were uh did a lot with restaurants in the new world screworm that uh hurt the beef business but you're obviously on top of things. Where are we with livestock? >> Yeah look look we've got a protein revolution going on. You and I talked, I think, 5 years ago, where maybe animal protein was under threat where, you know, meatless Mondays and where are we at with the plant-based? And it came back to three things, right? Taste, cost, nutrition. It's got to taste good. It's it's the the nutrition wellness movement around animal protein is is is crazy and and it's a good thing. And the American farmer, global farmers stepped up. Last year, Jim, first time in 30 years, farm animal outgrew pet health 10% to 5%. So healthy animals create more affordable protein and we're seeing this across the board. Our ruminate cattle business grew 17% overall this fastest growing species. >> Ruminate is a word that's new to our viewers. You got to say what that means because we looked into >> Yeah. Yeah. So cattle. So >> right. >> Yeah. Dairy dairy and beef, right? So what you're seeing today in this is look GLP use animal protein is increasing consumption an aging population muscle retention you know and then just hey like my like my kids everybody wants more grams of protein and they want them from milkshakes to cottage cheese to meat sticks and the American farmer and these protein companies have done a great job of bringing more products that taste well that people want to get their grams of protein. >> Well I got to tell you Jeff it's it's been a great journey. You told me this could happen. You made the combination. Now you're getting the balance sheet better. It really is a a joy to see it that you everything you said you could do you've done and more. I want to thank Jeff Simmons presidency of Alano Animal Health. Thank you Jeff for coming on the show. >> Thanks J. Thanks for having me. >> Man's back for the >> coming up. Is it time to buy by Shopify? Kramer's finding out where things stand with the top brass next. Last month, all sorts of stocks that have been kept down by worries about AI competition finally got the groove back. That includes ones that should never have been down in the first place, like Shopify, which makes tools that help businesses grow their e-commerce operations. Sure, there are software tools, and everyone assumed all things software were in danger in a world where AI platforms can write code. But Shopify's customers are mostly small medium-sized businesses, not big corporations that can use AI to replace their software. Plus, Shopify pointed out that AI was leading to a boom in business formation, which is actually good for their business. Sure enough, when Shopfire reported this morning, shot the lights out, posting a magnificent top and bottom line beat with very strong guidance for the current quarter. In response, the stock justifiably soared 17%. Can it keep running? Let's dig deeper with with Harley Flein. He's the president of Shopify to get a better sense of situation. Mr. Figglestein, welcome back to Mad Money. Jim, it is always so great to be on your show. Thank you for having me. >> So, Harley, first of all, congratulations. And I got to dig deeper in this because no matter what, I I'm so angry at people who basically said, you know what, Shopify is going to be eaten by Vibe Code as if small and mediumsiz businesses could somehow obviate you when you do so much more than JUST FULFILLMENT. EXPLAIN HOW PEOPLE COULD BE SO wrong and why you knew you stick your knitting. Well, first of all, I've been coming to your show, Jim, for I think 11 and a half years since the IPO. I've been coming on your show. So, I mean, Shopify has been famously underestimated well before the IPO. Uh, and and I don't mind that. I I I like proving them wrong. But let's just let's just say it uh, you know, bluntly. Q2 was an incredible quarter for Shopify, but not just only in terms of metrics, also in terms of demonstrating that we are the commerce infrastructure company for the world. And if you look at metrics to begin with, GMV, which is the amount of of sales from our merchants, was $116 billion. Revenue was $2.6 billion. Gross profit was 1.7 billion. And free cash flow was $654 million. That means we delivered more than 30% growth across every metric this quarter. And at this scale, our GMV was more than the GDP of over half the countries in the world. So I think the best part about this, Jim, is this is not just a one-off quarter. It was our fifth straight quarter of GME growth above 30%. >> I think it's also important for people to know there's all you got to do is send you a link. I mean, I don't think people until they've used you recognize all the stuff that goes on behind and that was the initial it's you first explain it to me, but it's more complex than ever because now it is AI levered uh on it. You have to understand all these different things or you just let them you do it. And I think people don't realize they can't do it without you is what's really occurred. >> Well, that's right. We are powering every size and every shape of business today and and also leading the companies of tomorrow. So if you think about names the big names that came to Shopify this quarter guest Avon ELF cosmetics Canada Goose Claire's burden Bed Bath beyond. It's going really well from the big guys and also our growth is surging internationally. GMBB was up 37% in on our national side. So what you are watching is us taking up our position as the commerce infrastructure of the future. a unified stack, best-in-class checkout, and leading us into the the the era of AI. And I I want to talk a bit about AI because I think Agentic Commerce is changing shopping and the merchants on shop, the millions of stores on Shopify are really benefiting. What we're trying to do is reimagine how shopping works and how commerce businesses run. And AI channels like ChatGBT and Gemini, they're becoming incredibly powerful discovery engine for Shopify stores. If you look at traffic and orders coming from AI channels to Shopify stores, it tripled in the last year. Now, here's the best part. Something you and I share is our deep love and and and and frankly our our affinity for small business. When you look at AI search, it is particularly helping smaller brands that form the long tale of commerce, which are core merchant base. 75% of all AIdriven purchases were from categories outside of the top 100 in the quarter. So, it's real Shopify products that are benefiting from aic search like a car seat that fits three across a sedan or a dog harness for a French bulldog. These are things that, you know, again, using general search or search engine, you may not always find the small business, but Aenticcommerce is helping more small businesses get found faster. >> Well, I was I was fooling around with with Sidekick. I mean, it's the kind of thing that you would get if you did a a $10 million campaign, no, a hundred million dollar campaign with with Facebook. You're giving them the same thing for the for the person who's selling a car seat. >> Think about Sidekick as the greatest AI assistant ever for your business, for for any business in retail or commerce. It knows everything about your business. It knows everything about the industry. It knows everything about Shopify. Daily activives using Sidekick was up 3.6x year. It handled 34 million conversations in Q2. But the real value, Jim, is that new merchants are getting to their first sale faster and established merchants are running way smarter than ever before. And if you just look at the early sales guide, we see that new merchants that use Sidekick to get onboarded, they see an increase in in in how quickly they get to five sales. Why is that important? Because once a new merchant gets to five sales, they they they're actually an entrepreneur. They're really building their business. And so the fact that Sidekick is helping more merchants become more successful faster is really really important. Ultimately, I think AI is kicking entrepreneurship into overdrive. And you know, we're about 20 years in at Shopify here, but Jim, this quarter felt like the earliest days of Shopify. So much energy, so much building, and I think soon commerce is going to happen on every surface area you can imagine. And it'll be it'll be powered by Shopify, the world's commerce infrastructure company. >> Well, I think that uh this idea of jobs being taken away AI, not only is it ludicrous, but I think there are people who can't believe how quickly their dream is realized. I mean, come on. It used to be a year before you saw your first sale. Now, you may have more sales than you know what to do with on day two. >> You may wake up in the morning with an idea in the shower. You then sit down at your kitchen table. You open up Shopify and you begin to using Psychic to build your store. Now, you actually have a store built. Now, you ask Psychic where to find customers from using Shopify catalog. It syndicates your products across every single AI application. By the end of the day, you may have your first sale. Every 26 seconds, a brand new entrepreneur gets their first sale on Shopify. So even though we have the greats, the Alo Yogas and the Viores of and Mattels and Hunter Douglas and Barnes & Noble using Shopify, we're also helping new entrepreneurs start and scale. This is going to be the golden age of entrepreneurship and and and Shopify is powering it. >> What we got to do is this. The next three or four pe uh companies that come public with a decent size, can't do micro cap using and and credit you, I want them on I want them on our show, okay? Cuz this is what people have to do. I want people to be happy and they need to be happy at their job and they can't just say, you know what, is this really my lot in life because you've changed people's lives. You have made it much easier for those people not to have their lot in life, but their dream come true. I actually know this. This is not Polyiana. You know, I know this. Congratulations. >> Look, you've been you've been you've been a huge supporter of Shopify even before the IPO 11 years ago. you've and you've been an amazing uh supporter of us all through the years. But I think it's because we have a shared desire to see more small businesses become more successful, more entrepreneurs take an idea and turn it into into their life's work and and we're doing that every day at Shopify. >> Why not? And people should do well in life and people should be able to realize their dreams and you are making it happen. That's Harley. He's the president of Shopify. Harley, I love to have you on. Thank you so much. >> Always love your money's back after the break. 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, it is time for the white self. Wait a sec. And then the lighting round is over. Are you ready? Ski dad with Stafford in California. Stafford. >> Hey Jim, I want to get your opinion on CME Group. >> CME Group is very good. I've got to tell you, I like SIBO, too. I've always liked the companies that are involved with trading because they have monopolies or at least duopolies. Let's go to Sean in Indiana. Sean, >> Alcoa Corporation, ticker symbol. >> Look, it's better than it used to be, but it's still a commodity. The best part of was how I met my mother, which is how met. That's the one I would have held on to. Let's go to Nick in Iowa. Nick, >> hey, how you doing, Jim? >> Oh, I'm doing fine. How about you, Nick? >> All right. Awesome. H awesome. I'll tell you. Hey, I've wondered on uh Dennis and Minds with the uh >> You know what? This thing is always a bride made, never a bride. I've got to tell I've looked at this thing now for over 30 years and it's been a not great stock. I don't think it's going to change anytime soon. Let's go to Paul in Michigan. Paul >> Jim, we love you because of your genuine concern for the small investor. >> Oh man, thank you. That is what they do this show for. Otherwise, I probably would have I'd be playing golf. My handicap, by the way, is 430. >> That's right up there with Ben's photos. >> I hope you're taking care of your health. And speaking of health, should I buy more HCA? >> You know, you got to wait a quarter. When you have a quarter that disappointed, you got to at least wait one more quarter, see what they're able to come up with. By the way, I have to tell you, I got to do some work on CBS. I thought CBS was good, but that Camwork business wasn't so good. So, we got to do some checking. Let's go. It's tough. Tough business right now. Let's go to Bill. It matches Bill. >> Jimmy, nice call with crowd stripes. We stuck with George Kurt. That's a winner, huh? Kurts be the winner. George is a winner. I like him. He's like my Le Man's guy. He does Lance, which is the Philadelphia way of saying moles. the molds. >> 100% since March, Jim. 100% since March. Imagine that. >> It's going to be the kit. George is the king. It's good to be the king. >> Hey, it's pure spec. What do you think about rocket labs? >> Pure spec. That's the problem. It's a pure spec. I like that Voyager. We had that fella on last night. Voyager. That's how my dad would always look. How about that fella? Why do you talk like that? What a fella. But anyway, I like the Voyager. Let's go to Sharon. Sharon, look at my accent. I was in Philadelphia now too many times. I'm back saying, "Hey, how about Sharon?" Sharon in Tennessee. Sharon. >> Hey, Jim. Hey, before I What's your What's your opinion on foret? >> Okay. We just had a little kind of a discussion. Fortnite's good by the way. We had a little discussion about uh PaloAlto and about Crowd Strike. It's there's room for many and Fortnet's in there and they're doing a good job and I like it. Let's go to Angelo in Florida. Angelo, >> booyah, Jim, how are you today? >> I got a science infection. Frankly, I can't figure out what the hell to do with it. I don't know. I tried all that stuff that everyone tells you. None of it working. I'm going to I want to go to the FTC and see what the deals with all that stuff. I took What do you got? >> So, I'm a very happy club member, but the reason why I'm calling today is that I am up 30% on the ticker Hubb Hubble. So, >> Hubble's good. Hubble's a basic great American company. You got to hold on to it anytime it goes down. I feel the same way about mod manufacturing. It's a twofer for there. Hubble and Moody Modi mod. And that lad of the lightning round. >> THE lightning round is sponsored by Charles Schwab. Coming up, Kramer's highlighting his favorite chip stocks to show that there can be more than one winner in a space on Wall Street. Next. Oh yeah, Jim Kramer. I'm a first time caller, a happy club member, and want to thank you for being the people's champion of investing. Thank you for helping me become a millionaire. After I spoke to Lisa Sue, the remarkable CEO of AMD on his squawk in the street this morning, I realized that there's room for many companies at each step of the AI food chain. It's not kill or be killed. People in Wall Street tend to describe it like a horse race where there's no place or show. That is wrong. Take yesterday when AMD reported after the close, the stock got hit hard when the company didn't raise its forecast enough. Then it got hit again when Elon Musk declared that SpaceX would be buying its GPUs exclusively from Nvidia, not AMD. Almost immediately, the Congress said he turned on AMD and piloted Nvidia. AMD shares finished the day down 7%. Nvidia ended up more than 3%. Oh, I get some of this analysis. Elon Musk has a very good eye for value and he certainly thinks he can make a lot of money from Nvidia GPUs, which is exactly what CU CEO Jensen Wong of Nvidia said would happen. I told YOU AT THE TOP OF THE SHOW, BUT THAT does not mean AMD's toast. Far from it. Sue is a phenomenal business. This is a stock that's done spectacularly well. It's up 125% year to date. Even after today's pullback, Nvidia stocks only up 17.5%. AMD's got a terrific GPU franchise that competes with Nvidia and an amazing CPU business that competes with Intel. There may be trillions of dollars in CPU and GPU demand by 2030. And if you think Nvidia can capture all that by itself, I like this. Like what what are you smoking? There's more business than any one of these companies can handle their own. That's true in CPUs and it's true in GPUs even as Google co-designs it GPUs with Broadcom or TPUs as they call them while Amazon does the same thing with Marll tech. I think there's enough room for all of them. In the end, none of these businesses are winner take all loser take none because nobody has the production capacity to meet all the demand. Yet, it's reflexively treated as winner take all by Wall Street. And that's not unusual. I mean, even when it's wrong, we have so often viewed the rivalry among the retailers a winner take all, loser take none. We we usually believe that TJX, Burlington, uh Raw Stores as capable producing only one winner. In reality, they've all been great performers. Sure, at any given time, one might be doing better than others. Ros Stores has been on fires. It's up 40% year to date. Now, some of that's due to the leadership of CEO Jim Conroy. He did a fantastic job at Bootart. To me, the better long-term value is TJX, but they all work in the right environment. We get the same framing with the cyber security space is either PaloAlto Networks or Crowd Strike. Oh, come on. That's wrong. which is why we own both stocks for the travel trust. There's so much business to go around cyber security that you could buy Octa, you can buy Cloudflare, too. Sure, there are some genuinely zero sum situations out there, viciously competitive industries where demand is limited, but those are the opposite. Big opportunities with lots of room for multiple winners. The trick, don't buy into these false dichotoies. The best stocks often belong to companies that have plenty of competition simply because there's plenty of business to go around. Intel, AMD, Nvidia, all three are terrific. Any of them can be bought. All of them should be bought because the opportunity that lies ahead is just so massive. I like to say there's always more market. I promise I'd find just for your men money. I'm Jim Kramer. See you tomorrow. 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. 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 MadMoney disclaimer, please visit cnbc.com/madmoney disclaimer.