Mad Money 10/29/26 | 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 Kramer, my friends. Hey, I'm just trying to save a little bit of money here. My job is not just to entertain, but I'm trying to put it all together, too. So, call me at 1800 743 CBC. Tweet me. Jim Kramer. Sometimes it's just a question of figuring out not what a company may be doing, but what the market wants from a company. What's loved isn't all that predictable. And what's hated can blow your mind. >> So on a day when the Dow was down 133 points, S&P 500 said.3%, and the Nasdaq tumbled 1.38%. It is worth it to judge how fickle this market can be and how punishing it can be when it changes its mind. Last night, two of the biggest and most consequential companies on Earth, the multi- trillion dollar Alphabet and Microsoft reported and the reaction to these two companies, well, they're wildly different and more important, radically changed from just a few months ago. Alphabet with its core search, YouTube and cloud businesses belly flopped. While Microsoft with its enterprise software, LinkedIn, video games, and Azure cloud business excelled and hung in there like a champ, Alphabet stock got crushed while the stock of Microsoft officially soared before getting dragged down by the NASDAQ's decline. It was an ugly day for the NAS. As recently as 5 months ago, these two companies earnings could have produced the exact opposite results for their stocks. That's because back then, Microsoft showed what many thought was a lack of enthusiasm for AI, backing a suspect co-pilot product while restraining spending for new data centers. That meant it was willing to jeopardize a first mover advantage. I heard Wag say, "Here we go again. They'd rather be a second place Bing than the huge search winner that is Google." Microsoft didn't want to break the bank, though. It wanted to remain cash flow positive, even if that meant it might not be the first or the largest in the field. The stock got pulverized for its conservative style. SELL SELL. Alphabet on the other hand went all in. The company spent $91 billion in capital expenditures in 2025 and then initially forecasted between 175 to 185 billion in capex for this year. Of course, that's been raised to between 195 and 205 billion. The numbers show that Alphabet though meant business at least to the market back then. Tell pay for it. It announced an $85 billion stock offering this summer. Almost 45 billion was sold in underwriting offered in June. Berkshire Hathway taking down 10 billion worth. OH, A THIRD IN I want to be in. But another 40 billion was to follow on in an at the market program to start in the third quarter. Initially though, I liked it. The stock soared because Alphabet meant business. It developed its own chips to compete with Nvidia. It's building data centers all across the world and turning to SpaceX for even more comput. a spare no expense strategy that the market loved at the time. There was so much enthusiasm that the stock actually soared after the secondary placement, especially when the company reported strong second quarter results back in July. What a lifetime ago that was. But what must be one of the ultimate turns of fate last night. Both companies reported it in the wise tortoise of Microsoft trounced the hair that is goofy. Microsoft turns out spent within its means and still put up a terrific quarter led by its Azure cloud business with an unheard of 48% growth much better than expected 45. Copilot started slow but it's becoming a screaming success. One of the fastest growing AI products in the enterprise which is incredibly sticky and not like the fickle consumer business. Most important Microsoft is still cash flow positive and indicated that it will remain that case for the rest of the year. The discipline this company had when so many companies were breaking the bank is now being viewed with envy and kudos. The combination of a shrewd CEO and Sacha Nadella and a tightfisted cany CFO and Amy Hood resulted in a quarter that will have put Microsoft away from the crowd in first place in the big companies in this country. Alphabet disastrous >> search seems to something lost. Treadman growth is slowing. Something that hasn't happened in ages. YouTube which had been a constant earner saw its growth rate slow too. Only the cloud business run from the whiz of the joint. He was on the show Thomas Curry and starred. It wasn't enough especially in Alphabet went cash flow negative for the second straight quarter and could spend even more next year. Plus, they didn't finish that stupid ATM program. The at the market, there's still 27.6 billion more of stock to sell. That's just a little of the stock. They may not think so, but I never like to buy companies that have these kinds of ATM offerings going. They just weigh you down. Better just to get it done. Let the stock lift. I wish they would let me handle the selling. My trust would be hurt. Wouldn't have been hurt so badly. And I sure know how to trade better than they are. I think the stock of Microsoft with all of its discipline is now set to sore while the stock of Alphabet won't rally. That's right. Microsoft is going to be number one. Too much baggage for for Alphabet, no discipline, no sense of what it's supposed to be doing. Plus, they don't even have enough chips. So, they're paying $920 million per month to Elon Musk's SpaceX for compute. Maybe they should have taken down more than Nvidia chips. I don't know. I don't know if they do. How did this change in fortunes happen? First, give Microsoft its due. It has software and a cloud that are loved by business. It's still building data centers, but it is an asset light needs more compute. But by spending within its means, it knows that they know how to run data centers. They just seem a lot better, a lot savvier than everybody else. They run it like a business, not a science project. Now, tonight after the close, we got numbers from Amazon. And with the stock trading sharply lower, it looks like the results were more like Alphabets than Microsoft, although I beg to differ. Now, Amazon reported top and bottom line miss for the period which uh with misses for both the domestic and international retail units, negating another strong quarter for the Amazon web services cloud business. I know that doesn't sound too positive. Hey, uh but look, I got to tell you, I care much more about AWS $180 billion run rate business guarding an astounding 39% than I care about the low margin retail business at this point. A top and bottom line for them simply won't be tolerated in this environment. Amazon, famously conservative with its guidance, also disappointed with its fourth quarter outlook. And that was all she wrote. I want to wait for the earnings call before I give my final judgment. But I do think that this Amazon quarter was stronger than the headline numbers or stronger than what the sellers are thinking. While earnings per share was a few cents below expectations, largely because of elevated interest expense after Amazon's debt issuance binge this year. The company's operating income was very strong, nearly $2 billion above the consensus estimate. In fact, Amazon's 13.9% operating margin was the highest in the company's history. Its web services retail businesses are extraordinary. As CEO Andy Jasse said, "There has never been a trillion dollar revenue business, and we may have two of them in the next 5 to 10 years, but this is a market that isn't interested in the longer term. For right now, a miss is a miss. Even though I think that Amazon's a buy. Bottom line, we own Alphabet, Microsoft, and Amazon for the Chapel Trust. I write about them constantly. I don't want to buy more Alphabet. Yes. Yes. Today was the worst day the stock ever had. But I got to wait a little bit. Let the analyst cut the darn numbers. See where it trades. See what price earnings mortal have. Microsoft though. It's a buy right here. And Amazon, give me a break when the smoke clears. >> Bye bye bye. >> Dan in California. Dan, >> Mr. Kramer, thank you very much for helping us little guys. I'll make my question really quick. Okay. About 3 to four years ago, you had the CEO of ELF on your program and I watched it on TV. He was so convincing to me and you liked him. I bought the stock. >> I still own it. >> I'm up about 475%. But the question I have now is the PE ratio is like 150. And I know that's a red flag, but I want your opinion. >> Yeah. You know, look, this has been this was one that I backed at 15 to 17. I tang him in. I just liked him. I thought he said everything right. I went and bought recommend it. Recommend it. Recommend it. And now it's expensive. Just like you said, I want you to cut the position by a third. Let the rest run. Okay, let's go to Deb, take out your call. I like that. Let's go to Robert in New York. Robert, >> Jim, I hope all is well. It is such a pleasure to speak to the number one guy on Wall Street. >> You're very, you know, you're a good man. Thank you. These are long days. To hear your voice is terrific. >> Jim, I got to tell you, you're going to have a better day right now when I give you this next one. Okay? Cuz you and I can do one thing. We can always back it up with our facts on how great you are. Now, July 29th, this next stock, I was on your show. The stock was at $361 a share. >> You said to me, >> what? No, no. You said to me, "Can you hear me, Jim?" >> Yeah, sure. I'm missing you. Robert. >> Okay. You Okay. So, you said to me, "Robert, this stock has gotten beaten down. I don't like it as much as you do, but I think it's an excellent company, and I think we're going to get a bounce here." Well, not only did we get a bounce, baby. You made me $86 a share. And everybody in America can look at what Kramer did on July 29th when we talked about a stock that I was so hyped up on. You brought me down. I own it and I know know what to do because I made 46 G's on this at 500 shares up $86 a share. Do the video. Intuitive surgical. >> Yeah, absolutely. We saw the change coming. We saw the change coming. We saw that technology was gravitating toward toward health and medical and leaving the data center and you caught it and you are tuned to things and I tell you when I hear that kind of money that's being made I say, "Are you making that money at the movies? Are you making that money at the racetrack? Are you making that money at your job? Are you making that money period? And the answer is no. And that's why I salute Robert for coming on the show. I think after this unnecessary dip, Microsoft and Amazon are buys here. Alphabet, you got to wait before you pull the trigger. Holy cow, they got to fix things. If they if they think they're doing as well as they did in the call, then I got to tell you something. I'm going to send them some high class pharmaceuticals. Well, tonight breaker just reported earnings and Chile sure is back. I'm digging into the numbers with the CEO and that big crispy chicken sandwich. Um, then during times like these, sometimes over reliable stocks like PNC insurance companies, they're not bad. I'm going to learn about the Harford's latest quarter with the company's top brass. And how is the data center buildout team holding up right now? I know you don't care, but I do cuz money can be made. I'm finding out with the CEO of Verdom. So stay with Kramer. >> Don't miss a second of mad money. 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. All throughout this summer, shares of Kramer fame Brinker International, the restaurant company that owns Chili's Grill and Bar and Majan is literally a resurgent. But with oil prices and interest rates climbing this fall, investors got nervous about consumer stocks and did some of them took profits in Brinker. That was a big mistake. Yesterday morning, Brinker reported it latest quarter and shut the lights out. Excellent quarter driven by another remarkable result from Chili's which had 10% comps in the period very easily clearing the even the highest bar of Wall Street in set with this quarter. Brinker also raises fullear outlook for sales and earnings. Each shares then immediately jumped more than 12% on Wednesday in response to the quarter as they should. So how' they do it? Let's take that question directly to Kevin Hawkman. He's the president CEO of Brinker International. He joins us now. Mr. Hawkman, welcome back to Bad Money. >> Hey, thanks for having me on the show, J. Okay, so Kevin, I I got to put this in context. A lot of people were trying to get two to 3% comp sales numbers, and we're thrilled you did 10, but more importantly, you did 10 on top of some really big numbers the last couple years. How are you able to continue to do this? Well, we have a very powerful flywheel where we're growing traffic the right way. That's growing sales. That's expanding margins which allows us to plow investment back in the business to grow traffic again. And so we were a plus 10 this quarter, Jim, but that was rolling last year of a plus 22, which was rolling a 2-year number of plus4 for a three-year cumulative comp of plus 52. This business is absolutely on fire. And even in a tough macro, we are not using that as an excuse of why we're not winning. We just continue to grow market share by doing right by the American consumer and they are rewarding us with their business. >> Well, this is important. I want to do it before we get into the menu which is so so meaningful. Do a little teaching here. I've been trying to explain to people that traffic is what you're trying to accomplish, not higher prices. You are generating the traffic. Where are these people coming from and how are they finding you? Well, they're coming from everywhere because they're looking for value. Whether you're a low-income household or a high-income household, value speaks to everybody. And when you offer $6 everyday margaritas, and you offer 10.99 full meals with almost a half pound burger, fries and a drink, or a giant chicken sandwich, fries and a drink, and unlimited chips and salsa, you're going to win every time. You know, the American consumer is showing up where value shows up. And it's not just about a low price point. It's about having great food, service, and atmosphere for that discerning American guest. And we are winning with that. >> Well, I think it's also about new. New does matter. Uh I want to talk about uh the big krispy because this is something that others have tried to do and have done on a limited time only and worked once. But this is you're you're offering a bargain big crispy. >> Yeah. So this is a gigantic chicken sandwich. It's over 80% bigger than the leading fast food chicken sandwich. You know, we handb bread it in restaurant. This is not made in a factory and then frozen and then driven miles and then reffried. These are these are these are freshly cooked and breaded sandwiches. Um the consumer is showing up for that sandwich. We are now selling every 1.4 seconds, Jim. We are selling another Big Krispy. People are loving this sandwich. And you know, I read quotes all the time and you know in social comments and you know I'm hearing things like, "Hey, it's affordable to go out to eat again and boy that chicken sandwich is humongous and delicious and that's what's growing traffic for us right now." Well, I I think it's important it's this is something people are hearing about in in great cities like Florence, Rome, and Venice, aren't they? >> Well, we had a little bit of a of a of a of a new sandwich that we put as a secret menu item. You know, hopefully it'll be successful. Go to the everyday menu item, but it's called the Big Crispy Chicken Parm. And it's the only way Chili's can do chicken parm, which is with uh marinara sauce, but we also have one of our fried mozzarella planks on it. And literally you can bite the sandwich and get a cheese pull. You know, we launched that in vaguely Italian cities, Naples, uh I think it was in uh Florence, uh and in Rome, but it was Rome, Georgia, uh Florence, uh Kentucky, and Naples, Florida. So, these were distinctly American Italian cities. And we've had some pretty good success online. We're looking forward to selling a whole lot more of them this November. I will point out that my wife for a very long time liked the Baconator, but she prefers the fried mozzarella sticks. You're famous for these. These are fantastic. >> Yeah, they're pretty amazing. So, I think when people think about mozzarella sticks, they think about little skinny mozzarella sticks, but Chili's always does things in abundant proportions. You know, we have generous generous portions. And so, these are literally more like planks. Uh you can get them three or six or you can get a a twofer in our triple dipper which obviously does incredibly well for us. It's about 16% of our business now. Uh there's lots of ways to experience that mozzarella. But there's a new way which is the big crispy chicken parm. So anyway you get it you're going to get a superior mozzarella stick that quite frankly I think is unbeatable in the market right now. >> Okay. Now I did hear a term I learned a term frankly as I always do when I listen to your calls. We have to start worrying a little bit about check management. What is that? Yeah. So, what's going on right now is uh customers are pulling back a little bit on all the things that they purchase, whether it's alcohol or dessert. You know, they're literally saying, "I still want to go out to eat. I'm going to go out to those with great value, but maybe I'm going to buy, you know, more of the three for me, or maybe I'm going to skip that dessert." And so, the reality is we just need to be there for the guest right now. And so when you have, you know, complete meals at 1099 and margaritas at six bucks and you don't need a coupon, you don't need an app to get that, you don't need to be to go, you know, you you know, you have price certainty when you go to Chili's. It's that kind of everyday lowest price strategy is winning the day and that's why we're growing market share right now. >> Okay. Now, you did mention that look, it was a little bit boilerplate, but look, you have to worry about inflation. You have to worry about food inflation, but it does not seem to change your menu prices. So, I think people will be asking, well, are they just getting hurt really badly and we don't know it or is it just the way you do things that it's not going to hurt your uh shareholders? >> Yeah, I get asked this all the time, Jim. You know, we've grown restaurant level margins uh over 600 bas over 700 basis points since I started. We are growing profitability the oldfashioned way. Number one, we're doing it with traffic, right? So, as we bring more and more guests in, we can spread more of our fixed costs over more of the building. And quite frankly, that's why we're growing profitability, not just sales. You know, the second thing is we are all things to all people. You know, casual dining and Chili is one of the few retail outlets that all walks of life come to. And so, not everybody buys the 1099. Sometimes people want something a little bit more premium, whether it's in whole meals or in, you know, margaritas is a great example. We sell margaritas from $6 all the way up to 12 or 13 depending on the type of things that you want and the quality of tequila that you want. So quite frankly, as long as we meet every guest need and continue to grow traffic, we'll be able to expand margins even in an inflationary environment. >> All right. And Majanos, we're just still trying to figure it out. Huh. >> Yeah, we've had a little bit of progress there. So I talked about the uh the progress we made in banquetss. Banquets's about 15% of our business. We put a cross functional team against it. We grew double digits uh in sales um this quarter. So that is a good uh small win that we have for the business. That's our number one marketing tool is most people that come to a Majano's banquet have never been to Amajo. Great way to introduce people to the brand. And now we're working on throughput and speed. We've got a whole new kitchen display system that's going in right now. Hopefully it'll be done in the next 90 days. And so hopefully we'll get that speed of service uh ramped up. And you know the food's still great there. It's all about how do we get that service to a higher level like we've done at Chili. >> Understood. Well, I got to tell you once again, you amaze. You're just amazed. I don't know how you can continue to put up these numbers when others just falter. And I want to congratulate you, Kevin Hawkman, CEO of Brinker International, EAT. And I always love you. Love it when you come on the show. >> Hey, love coming on the show, Jim. Thanks for all you. >> Coming up, Kramer is getting a read on the state of the insurance stocks with the top brass of the Hartford next. At an uncertain time like this, one group that you might want to consider is the Steady Eddie Property and Casualty Insurance Companies. Take the Hartford, a Connecticut based PNC insurance company, employee benefits manager that's been a leader in the space, get this, for over two centuries. And in just a few months time, the Harper will be under new management. Chairman and CEO Chris Swift, who has held the CEO role for nearly 13 years. He's going to be transitioning to the role of executive chairman March 1st next year. Now, Swift is widely credited with stabilizing the Harford in the wake of the financial crisis and helping transform the company. I'm real sorry to see him go. I mean, the guy did unbelievable, but it would be executive chair for a little bit. So, let's get a fresh look at the company, which just reported solid results on Monday evening. Joining us now is Chris Swift, the chairman CEO of the Hartford. Mr. Swift, congratulations on what you did for this story company. >> Well, you're kind to uh say that, but you of all people know it was a complete team effort over the last 10 to 12 years to put us in the position where we are today. So, it's gratifying from that perspective. >> But I do want people to know, I mean, Babe Ruth came to you guys for policy. and you're building the Golden Gate Bridge. You went to You guys are the one people know to go to and some of it I honestly believe and you kept it. You kept it is this image. >> It's it's iconic. It's it speaks to really trust, strength, uh endurance, uh many many different ait uh adjectives that describe someone you want to be with. >> And yet at the same time, you've always been very a democratizer. Small business loves you. I mean, you are, if you're going to open a small business, you should go to the Hartford. >> Well, we think so. I mean, we insured two million small businesses today, uh, we've been growing, you know, rapidly. But I think the real secret sauce that we've uncovered over the years is technology. If you make it easier, if you make it uh, smooth, intuitive, whether it be for agents and brokers or directly, customers could come to us. If if you have sort of a easy to use, easy to understand platform, you'll win more times than not. And it's evidenced by our growth rates. We're growing twice as fast as the market. >> That's incredible. Now, I also know in your industry, there's there are these drafts after you've written and written written apparently uniquely uh done by AI, but maybe the industry that has the most upside is what I keep hearing. Well, I I I think uh AI will be transformative to to many different, you know industries >> but uh I think you're referring to policy forms. >> Yes. I mean, they the same they must take forever unless you can just p >> some some are bespoke, but most in our small business are all the same. So, it just depends. But I think your your broader thesis on AI helping transform this industry is is right on. >> Okay. Now, uh, we often hear and I'm going to say that I don't agree with this before I say it. We often hear that insurance is one of the big problems in inflation. Now, that true or false? >> Uh, it's false. You know, we we we react. I mean, our cost of goods sold or the cost of our product is a reflection of the economy in general. And when there's inflation in the economy, whether it be for lumber or bricks or labor or if you have uh litigation, you know, that is sort of out of control these days in my judgment. Yes. All that is reflected in the price of our product. And oh, by the way, there's been more storm activity except for this year in the Atlantic basin, but there's more severe convective storms across most parts of the country. Now, another thing people say is that when the when the Fed raises interest rates, you you guys make much more money than everybody else. Again, I don't think that's true. >> Well, we we do make increased investment uh you know, income, but I guess it's just proportional, you know, to what we're investing in. We're a fixed income investor. We don't take a lot of risk. >> Uh we our our duration is probably five years or four and a half. So yeah, all all boats would rise in a in a rising uh rate environment where you're acting as an intermediary. >> Now tell me uh when I looked at this last quarter, it just seemed like a very straightforward quarter and I don't want to lower catastrophe losses. I don't want to paint your businesses that there's no ups and downs, but this has been about as steady of business as I've seen in the last say half dozen years. Well, again, requires good execution, requires discipline. You know, I would say I was very pleased you with the quarter both from a growth side and overall margin. But to be fair, I mean, there was a a couple soft spots. Uh workers comp losses were a little elevated. Our disability losses were a little elevated, but I think that's all within uh a a normal expected outcome uh with some variability, and we know what to do and how to manage through different cycles. Well, you mentioned something I want to get into, which is the the so-called bespoke policies. How do you know how to write, and I I know you do because I' I've used you. How do you know how to write kind of one-of-a-kind policies when people come to you and they have they have some sort of one event and they need it insured and or they need a camp that they're starting to be insured? How do you know how to do these things? Well, I I would I would say Lloyd's got sort of the the market cornered on that and we participate in Lloyds, so we might write some of those topics, but I I would say or you know, coverages. I would say here in the US, I mean, everything we have is pretty stock in vanilla. Uh there isn't any exotic stuff uh in in our book today, at least in my judgment. But Lloyds, you could get some more exotic type coverages. liability, political risk, >> right? >> War risk. So, there's there's some unique stuff that people could choose to do. >> Absolutely. Okay. So, now tell us about your successor. >> Uh Mo Tuker, he's a he's a great guy. Um and I would say it's been a thoughtful process. Uh the board is obviously, you know, fully engaged. Uh Mo is an underwriter. He's very strategic. Uh he's got a a penchant and a flavor for uh technology, you know, just like I do. So I think it's going to be seamless. I think there's great continuity in our strategic orientation. I think there's great momentum that we continue and uh great ability to execute and produce results for our shareholders. >> And I know that you're dedicated to team and it's the right concept. But there was once an article in 2009 which said who would ever want to be run the Hartford because it was in such trouble and the answer is how about the person who saved it. I'm sorry I'm giving you credit. I have to do it. >> Thank you. All right, that is Chris Swift. He's the chairman Cio of the Hartford Insurance Group. That's HIG. And he'll be sticking around for a little bit more. And I happen to like the insurers. You know why? Because they don't go up and down crazy like so many of the stocks that you're watching your screen right now. Thank you. They have money back. Yesterday for the Belver Vverive delivered a big beaten raise sending shares soaring more than 60% right they've tacked on another 1.2% 2% today in what I think was not such a great day for tech. This is the company that supplies the guts of the data center from power and cooling equipment control and server racks. Now revenue jumped 61% including 55% organic growth which was just looking for 35%. Adjusted earnings beat estimates by 39 cents a share management raised its fullear outlook. Now this was a welcome change after a tough stretch for the stock. Even after the rebound, Ber shares are still down 35% below their May high, although they're now up about 52% for the year. So, uh, can it keep going? Let's take a close look with Gio Albertazi. He's the CEO of Burton. Gio, welcome back to May Money. >> Thank you. Great to be with you. >> Okay, so Gio, uh, these were fantastic numbers. So, I'm trying to think, is the industry fantastic? Are you just taking a lot of business from other people or is it a bit of both? >> Well, it's a bit of both. The industry definitely is very good. As I was uh vocally explaining to investors yesterday, we see we continue to see very strong pipelines and we continue to see vibrancy. It's a broadbased Americas and the rest of the world. And also we're doing a very good job at uh growing more than uh than market. Combine the two things and combined very disciplined and rigorous execution. Uh I think that delivers the numbers that uh certainly we're very proud of. Well, let's talk about sentiment versus reality, Gio, because you're right in the heart of it. You know that a lot of people when you mention data centers, they're incredibly unpopular. They probably don't know what they are to some degree. I don't want to say people are ignorant, but the stories read negatively. And yet, your business is strong as ever, if not stronger. So, uh it must mean that you there's there's some places in the country that really welcome the data center or perhaps um once the election comes, maybe we're going to find out that there's not going to be many data centers allowed as there are now. Well, certainly there is a big demand for uh for compute capacity be it AI, cloud, enterprise and that certainly drives the the demand as was talking about. I'd say that there is uh you know there there are sentiments out there about data centers that certainly need to be addressed. we see an industry that is increasingly doing a a an active job of uh making sure that the communities understand uh the the good things that a data center brings. And you know when you think about where uh and uh how data centers are are built you know we see a technology continues to evolve to to towards the better and uh and um and we we see an industry that understands where to build data centers that is true in uh in the US and globally. So we continue to be pretty uh bullish about the market u you know notwithstanding the the the concerns that are being addressed and need to be addressed. >> Is there ever a way that these data centers which we're watching these companies that are building them and they're costing so much money. Is there ever a way that these data centers can come down in price to build? You're right in the midst of everything. I'm sure you can tell me whether that one day these will be uh cost a fraction of what they do now. Well, think think about an industry that is becoming increasingly more productive in the way uh the the output and the productivity at chip level the the the better and better use of uh electricity a higher and higher level of uh efficiency. So we should look at the data center in terms of total cost of ownership and the total cost of ownership is being improved constantly. We're of course a big actor in this improvement but uh you know industry of the sides continue to improve continue to become more more efficient. That's a kind of a a rule an economic rule if you will and if you will and certainly applies here >> now you guys have what I I is widely considered to be the best liquid cooling best cooling systems but you also have the best service. How much is the service a differentiating factor for you versus others who do what you do? >> Sure. We also have a phenomenal power portfolio and pre-fabricated modular solutions. Of course, could avoid say that but services is is phenomenally important. Services for us a clear competitive advantage. We like to call it our superpower and uh gives us a chance not only to support during commissioning something that in terms of scale and technical complexity is very challenging for everyone in the market but also enables us to uh deliver through the entire life cycle of the asset those 15 20 years. making sure that in terms of uh uh resilience, in terms of performance, the asset stays at the level that it needs to perform to return the money that it needs to return. >> Wait, Joe, you've got all these jobs. The growth is incredible. Where are you finding the people to be able to do this? Our country doesn't have enough people who do these things. Well, uh, you know, it's it's really about making sure that, uh, from a service net point, let's talk about services as an example, making sure that we have a very disciplined process of bringing new talent on board, training them and making sure that that they service the our install base wherever it is, even sometimes in the in the community where the data center exists. So it is about being very deliberate and forwardlooking in the way we build our talent population be it field service or a factory and of course verive as a whole. So I think it's about being uh being a uh an attractive place to work and being very methodical in the way in which we we we we grow our talent and uh recruit our talent. >> I may be too US- ccentric. Uh you're seeing really big big growth in Asia Pacific. uh some good growth in in Europe too. So you're uh and these are places that you're you're comfortable. You have people going uh going into them doing a lot of business there. >> Yeah. Uh we see the the growth and uh and a business pretty broad-based and we're truly global in our footprint. Clearly uh the Americas is our biggest uh biggest market, biggest region, but we see that broad-based growth uh happen globally. And we are a global company with a global portfolio and a global presence. So really benefit from uh a much much more broad-based uh industry dynamics that for example a few few years ago. So we're pretty pleased we've already >> and just last question the order book is as I understand it is very very full. People who think that they're cancellations or people who think that they're not building as many just it's just that just doesn't drive the facts. Correct. what we see in our uh order in our backlog are dynamics that are are not different from the dynamics we've seen in the industry historically. So we feel pretty good about the the resilience and the longevity of our of our backlog. So we we feel very good. >> Well look I I I this market's gotten very mystifying to me. uh this whole group has gone out of favor and people want to buy anything but and I listen to you and I think well this is your stock is down so much from the high maybe people should reconsider so I want to thank you for coming on the show you always have a terrific and now right now contrary view which is wrong because you got the facts the other people don't so I want to thank Gio Albertazi CEO of Verdive Gio thank you for coming on the show >> thanks for having me >> okay Mike's back after the It is time. It's time for the light round. Bic and then the lightning round is over. Are you ready ski light round? I'm going to start with Marcus in my favorite state of Oregon. Marcus. Hey Jim, great to talk with you. My favorite company I I consider the Porsche of the industry. They just hired 5,000 people. They got bookings for about the next two years. All their customers are in the red today. What do you think of Lamb Research? I think Lamb Research is the best in the game of capital Equipment. Now, here's what you have to do. You got to listen to me, okay? If you want to buy 100 C of Lamb, I don't want you to buy more than 25 right now. Now, we have some bad numbers from Intel and uh really bad numbers and I'm kind of uh bummed out about it, but that's going to bring that stock down. You buy 25 then and then you wait another 5 days cuz right now the stock is in freef fall and I don't want you to get hurt. Marcus, let's go to Philip in New York. Phillip, >> how are you? Jim, I'm Rob's brother who loves you and calls in and speaks nothing but the world about you. ASTS mobile. It's been >> No, you know, we got we got we're fighting the Fed with that. We're fighting with that fellow Wars. I'm not fighting Wars, man. I'm bringing a water pistol to a gunfight with that guy. You don't want to go against him. He says no speculation. I say he's right. Let's go to He didn't really say that, but that was the subtext. It was kind of like I saw it like a bubble over his head, you know, kind of thing. He called me parliamentarian. Let's go to Beiju. I I have in my fantasy league. Beiju in Georgia. No, I just wish I did. Beiju. >> Hey, Jim. >> What's up, buddy? >> Ah. All right. How are you? >> I'm good. Long time viewer. Thanks for all your guidance through the years. So, my my question is about one of America's favorite pastimes. What are your thoughts on AMC for the long term? >> Um, long-term, short-term, doesn't matter. I think that this stock is should be sold. Uh, I know a $3 track is very $3 stock is very attractive. They have a very bad debt position and I'm just not going to re recommend a stock that has all that kind of debt. I'm sorry. I know I've been very cherry. I'm not recommending everything. Let's go to Jack in my home state of Oregon. >> Hey Jim, how are you >> Jack? I had some Harry and David the other day. Not bad. What's going on? >> Oh, I love Harry and David. Hey, first off, uh, sorry for your loss. Um, just wanted to say that before jumping into it. >> Thank you. Thank you. I'm, you know, trying trying I'm not saying I'm trying to get past it. I am saying is I'm in the thick of it. But go ahead. >> Yeah. No, I uh my thoughts are with you. But hey, I uh looking at uh Netflix wondering what your thoughts are on whether it's a buy or >> I I tell you I talk, you know, my friend Dave Davis Favorite David Faber down there in the morning. We joke the stock can't lift. I mean, it can't lift. I mean, I'm watching Netflix all the time. I saw that Ben Affleck movie, but I guess that doesn't matter anymore, does it? Used to be able to say, "Hey, you seen that movie?" And yeah, I'm gonna go buy Netflix. People don't do that anymore. But you know why? Because they don't even know if it's on Netflix. Maybe it's on Amazon. Maybe it's on HBO. Maybe it's on Apple. I mean, like, who even knows? And that's Netflix's biggest problem. I'm not done. I want to go to Bill in Massachusetts. Bill. >> Hey, Jimmy. I just wanted to uh say I'm sorry about your nephew, uh, Cliff Mason. I'm sorry about what happened. >> He was something. 21 years and he was only 41. >> But, you know, we go, we move. You know, we go, we go, we go and he would be so bummed if I like he'd be like, "Jim, Jim, stop talking about I can hear him in my ear. STOP TALKING ABOUT IT." SO, go ahead. He would yell at me. He always yell. >> No, you know, I I said a prayer for him. Just wanted to let you know that. >> I appreciate. And his ma. His ma. That's who we're working on. His mom. >> Yeah. Give his whole family my love. Uh, listen. Uh, is I just a money tick for the next 24 months? >> We don't want I tell you, we don't want I because you know there's this thing called losing money. It's, you know, you know how the show called Mad Money. There's also a show called Losing Money and Losing Money buys I read and it buys Nebius. I am not I am I'm often I'm not the host of losing money. I'm the host of Mad Money. They're different programs. And that, ladies and gentlemen, is the CONCLUSION OF THE LIGHTNING ROUND. >> The Lightning Round is sponsored by Charles Schwab. We hear so much about guilt by association. Maybe we should be thinking innocence by association. Maybe that's a better buying opportunity. Last night, a cyber security company called Fortnet reported a hoham quarter. Typically, it was a beat and raise result, but it also showed slowing growth in what has to be the hottest industry in the world. Stopping the bad guys who use AI. It's supposed to be one of the biggest priorities for CEOs in the current business environment. We know from OpenAI anthropic that there are many cracks in the company's cyber edifice and the latest models from these companies seem to be discovering more and more of them every day. Enterprise customers are scrambling to keep up and prioritizing cyber security spending over most other IT priorities. But Fortnet's numbers didn't resonate and the stock fell $35 or 20%. But the weakness of Fortnet's quarter maybe made many wonder whether the whole cyber security investing theme is done. I mean there was tremendous guilt by association that even impacted the two companies that have been the biggest winners from this time and that is Crowdstrike and PaloAlto Networks. Two stocks they just got hammered. Crowd Strike losing five points or 2%. PaloAlto dropping $14 or 3.5%. Now those declines are based on a faulty premise. Fordet offers a very limited set of cyber defenses. It is primarily a legacy firewall business. Basically it's an appliance. That's what Palo Alto Networks was when I first met eight years ago. That was when Nikeshor took over CEO CEO. But he has systematically broadened the product line both organically and through acquisitions and created a platform that has a firewall but much much more including the best defenses for a company's key people. So why buy a little firewall from Fortnet when you then have to put together a patchwork multiendor offerings for other cyber services when you just go to Palo Alto and get a one-stop shop? or why not go with Crowdstrike which offers a full suite of products and advice that make it a mainstay in the industry and that's exactly what's happening in the real world. That's exactly what we're doing in the charitable trust. Not only are Palo Alto and Crowdstrike not guilty by association, but my work shows that Fortnet has been what we call a share donor sell >> to both of those two companies. Their stock should be bought, not sold because Fortnet's weakness is not a tell about a slowdown cyber security. It's just a sign that Fortnite itself isn't doing well. We see this all the time, especially in technology. Last night, we interviewed Bill McDermott, the CEO of Service Now, and the enterprise software company had a slight earnings miss. I mean, the market's not going to tolerate a company that sells at over 30 times earnings, reporting a miss, however small it might be, especially when the stock had almost doubled going to the earnings. Service Now is known as a software as a service or SAS company. Its weakness was viewed as a sign that all SAS companies are in trouble. Even as these companies all have a particular kind of structure, they can do very different things and some are even changing their models as the AI era arrives. For example, Workday, remember we had them recently as a SAS company, but for human resources, corporate finance professionals, man, are they smoking hot. And don't forget Salesforce Charitable Trust Holding has a seatbased model for different marketing silo, but has introduced consumptionbased models for its red hot agent force AI product. Now, I'm close to both Workday and Salesforce. have covered them for two decades frankly and I can tell you that their declines today had more to do with weak disseminating from service now than anything having to do with the companies themselves. I have been itching to buy the stock of workday for my chapel's trust after talking to CEO Anneil Bushby on this show who who told us that business is just great. He's money by the way. Some of these guilty verdicts are downright absurd. Google's quarter was so weak that it pulled down Microsoft after Microsoft had an incredible quarter of its own. A conservative outlook by Samsung caused the stock of competitor Micron to drop today even as Micron's book of high bandwidth memory is much stronger than Samsung's. and know their buy. Most though are more subtle like Fortnite where you have to know the nuance of what it does versus its competitors. Here's my motto. Do the homework. Know what the companies really do. That's the only way to profit from these short-term guilt by association moves which tend to work themselves out. I wouldn't. It's good to say in the long run, but how about in the short to medium term, too? I like to say there's always a more market summer and I promise I'd find just for you right here on Money. I'm Jim Kramer and I'm going to 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 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.