Mad Money w/ Jim Cramer - 11/30/21

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‎Mad Money w/ Jim Cramer：Apple Podcast内のMad Money w/ Jim Cramer - 11/30/21

Hey, I'm Cramer Welcome to Mad Money. Welcome to Kramer AKA a bit one of my friends, trying to save you some money. My job is not to just entertain you but to educate and teach you so call me one 807 43 CNBC or tweet me at Jim Cramer. Today's client came down to four words a few months early. That phrase spoken by Federal Reserve chief Jay Powell, explaining why he might favor ending the Feds bond buying program sooner rather than later sent the market into just an abrupt and miserable Tailspin that people are going home and feeling very bad about. It's one of the Dow plunged 652 points as a B plummet of 1.9%. That's tumbled 1.55% Could have been worse their pals comments about winding down a program that's helped keep the economy going. They were unexpected. They were sure. The feds bond buying program has made it cheaper for companies to borrow money, which helps propel the economy. Also unexpected pals decision to call inflation were persistent and less transitory. which marks a break with this previous thinking. In the past he very much believed that inflation would simmer down once we worked out our supply bottlenecks. He always told us that was transitory. Now he wants to retire the word transitory entirely. Pals feeling like the oven has gotten just too hot and we may be burning the target. So why keep turning up the heat with more bond purchases? Want to close out the program sooner rather than later? All right now let's hit Palin made these statements, let's say a week ago, before on Cron. I think the market would probably want to take it in stride. It's common sense. But we got pulverize today because the timing was so bad. We were already freaked out about the Omicron invasion. So the common seemed a little tone deaf. But does it early enter the Feds bond pot buying program mean the bowl is a good bovine walking.

2:09
Look the bulls obviously suffering or else we wouldn't get this question. So if you own stocks, Jay Powell did pick indeed a lousy moment to get religion on inflation. Well, she doesn't want to hear about an accelerated taper while we're waiting for the other shoe to drop with the Omicron variant. However, as Powell pointed out, the economy is definitely stronger you and I know that a is stronger than it was and we're lucky to get pretty good unemployment number, okay. This Friday, so he wanted to lay out what he thinks the Fed should do if Omicron doesn't wreck the economy. If this industry really doesn't burn us believe me fed Powell can just change he said he'll say there's no reason to accelerate. He can walk back his comments like he did three years ago, when he got to grips about tightening the market rolled over. In the immortal words of Joey Brown in some I get hot. Nobody's perfect. Now, to some degree, all this is inside baseball. What the heck does it mean to you regular investors of Powell now thinks inflation is more persistent, and the bond buying program needs to wind down ahead of schedule, honestly. Not much. In fact, I think after this mouse through selling, it's become a reason to buy, I'm not going to tell you to sell. Let me explain. Consider the average investor who these days invest for the most part with long term index funds. That's the kind of person who should be looking for a price break to put money to work. Rather than wait till the end of the year. Maybe stocks have gone too high. Pals comments are not a reason for the typical index fund buyer to run from the market or sell. And if you are selling here, you're freaking out about the inevitable. Didn't we all know that the Fed would start to hit the brakes once the economy got hot enough, one day. That's what always happens. Even if pals be more measured about it. This time. Jason Lee stated the obvious he just did it a few months early. You had to expect the Fed would tighten Sunday, and you had to know the market, we get hit whenever that happened. Plus, while Omicron may slow down the economy, it's also bad news on the inflation front because a new strain means more people missing work, creating more supply bottlenecks that lead to higher prices. See before the Delta variant, we actually looked COVID players would merely damage the economy, but they also damage the supply chain, which does cause more inflation. And that makes it harder for Powell to ignore inflation. We just didn't know when he made these comments. Certainly at one of the best days of the year, NASDAQ yesterday. I can't understand why he felt important. I mean, why the hell might low wish he waited another couple of weeks. But again, nobody's perfect. Still Chase doing what's right. With this much job creation, not enough people to fill the jobs you and I know that one as you look at, you will get every single shot, right, right. We got shortages galore here and they're being used to jack up the prices, so he had to bite the bullet. He's not he's not oblivious. He's not obtuse. Now, last time, I told you if you wanted to buy stocks, you had to wait until we get our first confirmed Omicron hospitalization here in the US. But for your average index fund investor who's trying to figure out whether it's a good time to buy put more money to work in the s&p. Well, they just got a clarion call to pull the trigger on at least some of that cash right now, even ahead of the hospital. lest we find out the Omicron isn't as horrible as we think. The call at one point today we had nine to one selling to buy nine to one, keep those numbers in mind. That is a Howard ratio or the late mark. He's a legendary CNBC anchor and good friend of mine would always tell you that you had to do some buying you had to hold your nose He would say and do some buying. That's how he called the Clairvoyant Haynes bottom when the selling got to excessive in March 2000. Not. So given that it's a good idea to keep some money in s&p 500 index fund for your retirement. You have my blessing tomorrow morning to commit some capital, some capital, not all the rest of us we put the work in stages if we start getting battered by Omicron cases here in America if something really goes wrong, I think what one quarter of your money remodel when one quarter that day Omicron hits our shores, and then the next half over the following few days. This is the kind of thinking I think for people with IRAs 401 ks This is your chance if you haven't done it yet. How about if your individual stocks a little bit different? You don't want to go too deep into this market yet but there are some things you can start buying here. Either dividend stocks a CNBC Investing Club members know all too well because of today's Bolden or tech stocks which do well when economy slows whether it's caused by the Fed or by Omicron. That means Amazon down day service now or Microsoft probably down because people think Salesforce is slowing, which is not. I'm going to mention Tesla because people like Mina mentioned Tesla, it is a tech stock. Don't need to buy more than that right now. I think getting more opportunities to buy stocks into weakness, keeping my powder dry for the rest but are putting money to work putting money away. In short, I am not sanguine. Okay, that would be foolish. I wish that Powell hadn't made these comments until the market finished processing the new variant. But I think the supply chain weak is potential absentee workers who fear Omicron won't create more inflationary words. It's just what happened. We didn't think we'd never seen anything. Never seen anything like this. That's a pass got the bases covered. Pals gotten over with. He said what he had to say about inflation and bond buying without coming to a series of lockstep rate hikes as he foolishly did in 2018. It's almost cathartic wanted to make more money tomorrow than I still want to be conservative and be sensitive to the first Omicron casualty here. This sell off is based both on COVID. And on the Fed probably in equal parts. Tomorrow, the Fed won't say anything, right, that damage is done. But while we're still in Omicron, Purgatory, you see, you need to keep your powder dry, because I think the market will have another leg down. When we get a wave of sensationalistic stories about how the new strain is arrived. There are shorts I'm trying to. I'm trying to prevent that as you see later in the show. Remember, we do have a strong economy. That's not bad. It's good. We've also got our best drug companies working harder and faster vaccines for the new variant. Also good. So the bottom line, it's too early to buy hand over fist but too late to sell at this point at a nine to one down ratio. Okay? You'd be selling into a classic fear trap. That's just not worth it. Buy it. Don't sell it. Oh man money today. Salesforce important development getting to the heart of the quarter with the company's top brass. Then another Investing Club day Pay Pal is formed from its highs. But to say the least, does it pay to invest your check with the CEO and the Omicron burying us to spread fear so I'm going to do go on one of the best doctors the world try to end fear. Go for rationality. Dr. Eric Topol stable cramp.

8:20
Don't miss a second of Mad Money. Follow at Jim Cramer on Twitter. Have a question? Tweet, Cramer hashtag mad tweets. Send Jim an email to Mad money@cnbc.com Or give us a call at one 807 43 CNBC miss something head to Mad money.cnbc.com

8:52
Alright, what what that just happened to the stock Salesforce. I mean, really, it's down 10% The Cloud can just report an excellent quarter stock sold off harden if power trading because management gave what I call conservative forecast, not unusual. Let's confront this as well introduce a new co CEO who company which my trust own shares will have club Bolton out this very evening about these numbers and this interview. I want to dig deep with Marc Benioff, the founder chairman and now co CEO of Salesforce and Brett Taylor, the newly promoted co CEO and vice chairman Gentlemen, welcome to Mad Money. Jim. All right. So first, let's get over the news here. Mark, you've got a new co CEO, someone who was just deemed the winner Chairman yesterday, obviously active How are you going to split your roles?

9:37
Well, Brett Taylor is having a big week. I think everybody knows he had an amazing prayer. Google or he kind of created this amazing Google Maps and then he started a company was acquired by Facebook. He became the CTO of Facebook and left Facebook started another company which Salesforce acquired him for the last five and a half years. He has had a phenomenal ride at Salesforce and was our appointed our CFO two years ago and today, congratulations on being the CO CEO of Salesforce. I couldn't be happier for gratulations it's an incredible privilege. We've had a long lifelong friendship and partnership and that's just fulfill fulfillment.

10:21
By so let's let's just dispel some myths immediately. There were people who felt when you need to previous co CEO that therefore you are done, Mark, you're gonna go to the beach, you're gonna run for president, whatever, are you gonna go to the beach and run for president? Whatever? Are you gonna stay as CO CEO?

10:35
Jim, I love Salesforce, you know that. And, you know, you see me with our customers and how much fun I have with all of our stakeholders. I'm never leaving Salesforce. This is my life pursuit. But I'll tell you, I couldn't be more thrilled to have a great partner here with that Taylor and, and he's just amazing. You know, I this is my dream that Brett would come in the company. And we could we could work it and run it together and lead it together and a trusted partnership. And it's happening.

11:03
All right, well, Brandon, you put you out in the hot seat that would have put more corn stock is down 30. We could argue that doesn't matter. The stocks irrelevant. However, most of the people who watch the show, do own Salesforce stock in one way or another. And a lot of people are saying that your guidance was not conservative, but that you really see some sort of definitive slowdown, whether it be at Slack, Tableau, main, Salesforce, any of that, right.

11:30
That was it. We just had a phenomenal quarter, right 27%. And a few things stand out to me. Number one is just the strength in our core CRM business. Our Sales Cloud accelerated 17%. Year over year growth is now a $6 billion run rate business just like our service, which is another $6 billion run rate business growing over 20%. Our core business has never been stronger, and slack. It's just amazing the response we're getting from our customers, we exceeded our guidance on slack by $30 billion. Every single company that I talked to you I was actually just on the road, Gavin Patterson, in Europe, I visited Paris and visit London, Amsterdam and Frankfurt, every single CEO I met is building a digital headquarters for their company, because they all know we're not going back to the office five days a week, I really feel like the demand environment is strong and so happy with both the core of our business and I couldn't be more excited about slides.

12:26
Alright, so then Mark, why do you have a current route remaining performance obligation that was 18.8 people looking for 80.7? Why is it 20 billion when when some number that someone has pie in the sky that they're asked you to deliver?

12:43
Was it whichever you can see right here? We're finishing out our second year and the 20 Billions you know, which is amazing. We're delivering this amazing guidance, you know, for today, which is kind of a credible 26 point 4 billion for this fiscal year that we're finished the fiscal year 22. And Jim, we gave guidance that for next year, we're exiting the 20 Billions and we're going to 31 point 8 billion. So we only spent two years in the 20 billion so that's a very fast growing business. Our core is growing very quickly. And you know, we have these phenomenal acquisitions like Slack mule soft and Tableau and so many other great things that are driving our business faster than we could have expected. So this is really strong. We just had a great quarter and we're very excited about

13:33
it. But let me go right out. Okay, you see fourth quarter adjusted earnings per share and 72 to 73 Mark, people are looking for 82 game set match. That's what they were looking for. How do we dispel that or we just own it?

13:47
We audited? Because let me just tell you that the number one thing for us is we're we're driving customer success. This is our highest value. And what we saw in the quarter was phenomenal customer success. We will cyber weekend. We had a Black Friday and Monday and everything that just happened with us. Yesterday was Cyber Monday, we just came off, I think the kickoff to the holiday stocking. Our marketing cloud has sent over 1 trillion messages this year culminating with 40 billion messages in cyber week alone growing 34% year over year, year over year salary really runs on Salesforce for brands like LVMH like Puma Ralph Lauren, just incredible momentum going into the holiday season and it's incredible to see you know, we talked a lot about this new normal last year. You know, obviously everything was digital, even retail stores reopening. We just saw digital continue to grow, continue to accelerate because we truly are this new normal and I always had also we had phenomenal performance and availability during the most important weekend of the year for our customers. We got phone calls from customers who don't use all of our products but some of our products The products that they were not using from our competitors were having performance issues. And whoa, just really amplified, you know, our gratitude to our own team for what a great job they have done for our customers.

15:11
And Brett unless you want to see gameplay at Mercedes Benz T Mobile at LVMH LVMH, just idolized those guys. It's such an amazing company. I am saying that it's not business as usual. I'm saying it's better than business as usual. Would that be correct?

15:26
I think it would be a great example. There's a company called graph in Southeast Asia that you ride sharing of your food delivery, who like tan is a friend of my limits, actually an alumnus of Salesforce co founder that company, they have 16,000 people all on Slack running that business. You know, these are the next generation innovative companies all running on customer 360 and slack and, you know, I talk to every CEO, every board, I've been on the road, almost all quarter, they're all talking about giving back to growth. They're talking about resilience, they're talking about agility and our software portfolio not be more relevant right now. You know, every one of our customers get back to growth.

16:05
Fair enough. Well, I want to congratulate you Brett. I was gonna graduate you in on being chairman of Twitter, but that's already in the past upgrading guys. He was co CEO of Salesforce and CO CEO, Marc Benioff. Congratulations. Happy Hanukkah. BOSU. Thank you very much. Guys, look, you can go sell on this stuff. I mean, you know what, it's been wrong to sell every time it got me wrong. Nobody's back here from break.

16:35
Coming up this holiday season. How will you pay for the festivities that light up the night and snugly back in from under the tree? Kramer's cranks open the digital wallet with Pay Pal, next.

16:57
Rental tech stocks get cheap enough to be enticing. Take PayPal, that's digital payments kingpin with a stock this point 310 In July, just under 185. Today, as FinTech has fallen out of favor, the most recent quarter was poor literacy. But at this point that the clients gotten pretty extreme. The question, is there a catalyst earlier today? We got a chance to speak with Dan Schulman. He's the President CEO of PayPal at the company's office in New York City. Take a look. Then, Jim, stocks been down? Yeah, I always appreciate a person who comes on when the stocks down. Let's start with the now Cyber Monday Black Friday. How was it for paper?

17:35
Yeah. So glad you started there. It's been interesting to see the statistics come out. People have seen more people coming into store online flat. But the way that I look at that is if you go back to 2019, which is pre pandemic digital sales last year went up by 50%. This year, they're flat. Okay, retail sales went up this year. But from 2019, they're down 26%. So what that says to me is that ecommerce and online is an increasing part of overall retail today, way more than you could have imagined two years ago. And PayPal had a real strong start coming into November, we saw sales being pulled forward. We were growing faster than we expected for those first couple of weeks. And then based on the published reports we've seen so far, we've handily outpaced the industry average over the cyber five as well.

18:37
Now you say your head of plan. Now you did have a goal that you set earlier this year of 750 million users by 2025. At this pace, and I don't know, I'm just gonna remember pace. You're looking like little over 400 million. And that would mean you'd have to add 75 to 80 million new at users this year possible.

18:56
So this year, what we told the market is we do about 55 million net new actives, and we're on track to do 55 million net new actives. I would say the way to think about this, Jim is there are two ways of thinking about net new actives. One is the top of the funnel, how many raise you're getting. And then there's the bottom of the funnel, because today, we're over 416 million people on the platform today, we'll wind up the year north of 430 million on the platform. So the key to stopping people from leaving the platform is engagement, right engagement has to do with expanding our value proposition into new applications. Like for instance, buy now pay later, which we should talk about later because that's been one of the stars actually of the holiday season for

19:49
us. Let's go right there. There's a perception of Max Levchin was only announced on their money announced the Amazon deal he announced which by the way, he had to give away a lot of his company but he got it announced how business have gone and really kind of made people feel hate pals and also ran Bain Buy now pay later versus Klarna versus even square with after pay, which is about to talk about. Are you the second fiddle in Buy now pay rent?

20:18
I'm so glad you asked that question, Jim. Because we are one, we've only been in this like the last year, right maybe year and a half or so. And we are already one of the top three to four by now player players in the world. Let me give you some statistics that just happened during this November and during the holidays. So during Black Friday, our volume on Buy now pay later was up almost 400%. Year over year, we did some 750,000 transactions alone in one day, on one day in one day. And Jim in November, was our first time ever that we did over a billion dollars of process value on Buy now pay later in a month. And we did over 1,000,001st time users for the first time ever in a month. So if you take a look at our run rate, you know that a million a billion dollars times 12 It's $12 billion run rate on Buy now pay later, we have well over 10 million consumers using it 950,000 Plus merchants during that growing as I mentioned, you know Black Friday at least grew almost 400% These are growth rates that are second to none. And buy now pay later at scale that is closing in to the very top of any of the Buy Now pay late oh,

21:51
let's do it. Given what you just said the mediately you were evaluating potentially acquiring Pinterest, which a lot of people felt men it spooked people spooked me now they said she's the greatest growth why they need Pinterest. I also made me think that maybe the underlying business it simply isn't as healthy or that it might even distract you. Was the media wrong? Did you consider this scenario consider any deal but understand why we felt spooked? We support you my child dress owns your stock forever.

22:17
I know you've been a good friend for a long time, Jim on this. So let me start off with kind of where we are. If you think about our core business, the PayPal business X eBay. Okay. And that is the way to think about because eBay is dissipated

22:33
five to 2%. And that was a little faster, or is that was

22:36
faster than we expected expect

22:38
for a seller last quarter. Yeah, exactly. And,

22:41
by the way, way faster than we expected when we came in the year, maybe 350 basis points of growth, faster impact than we expected coming into the year. But eBay is now less than 3% of our TPV about 3% of our revenues. And you know what we are seeing is our core business in q3 this year, grew at 25% XC back last year, q3, right, right in the middle of the pandemic, it grew at 26%. Two years ago, it grew at 23%. And so what you're seeing is incredibly consistent, strong core performance. And that continues on. And so we don't need any acquisition for our medium term guidance, like our revenues. And you know, we were appropriately prudent and cautious as we came into the fourth quarter and look to next year. You had supply chain issues, for sure. Remember, Jim, we have 33 million merchants on our platform. But the vast majority are small and mid size, small and mid size. 66% of them at the end of last quarter said they would be severely or moderately impacted by supply chain shortages. We know that's a big part of our base. And we know it's exogenous, we know it will go away over time. So we said next year we grow our revenues, including eBay at 18%. Right now remember this, that's at a $25 billion plus revenue

24:22
for Shopify is having an increase over that. And if that Shopify pay, they're not trying to do a deal, perhaps with Pinterest. He did. We got to insure these questions because the sellers at 180 think that things were slowing the 80% meant you got to buy Pinterest to get back to the 20. Now, was that I mean, the word talks with Pinterest.

24:42
So I can't comment directly on Pinterest, because we don't comment on any rumors about that. But let me talk just a little bit about that. First of all, like Shopify, you mentioned that one in every four transactions on Shopify is powered by PayPal, just to be clear We're a big partner inside of Shopify. Second, Jim, you know, my job and my responsibility is to think strategically about where is this industry going? You know, what are the adjacencies? It's not just about payments anymore, okay? It's about payments. It's about core, and basic consumer financial services. It's about shopping. It's about commerce tool sets. It's about following the consumer, from inspiration to discovery to purchase, to post purchase. And so we look at hundreds of potential acquisitions. Every single year, I mean, we have $20 billion of cash on our balance sheet, we spin off five to $6 billion a year of free cash flow. So we have a very strong balance sheet. And we're gonna be acquisitive. But we have a very strict criteria for how we evaluate acquisitions, we look at it one strategically, does it make sense? And by the way, like honey was an example of an adjacency. Honey was great. I

26:18
want to eat it was a great obsession for us. Because even though you say that it's more just that it's a bigger universe holistically. I don't know whether Pinterest is necessarily right for Pay Pal.

26:29
Well, obviously, neither did we per se what you

26:36
want. That's what we want.

26:38
But let me just finish on the capital allocation. So we look strategically, we look financially, does it make sense for us? And then we look at integration, like how hard is it will be distracting? And all of those criteria need to be mentioned before we would do an acquisition. And we we will only do an acquisition, big or small. If it meets all those criteria for us. We aren't doing those acquisitions, Jim, to hit our medium term guidance. That would be over and above if we didn't

27:10
ask Is your your stock has gone down as if your business has slowed? What you're saying is not urgent. Yes, you're not as busy as not slowed. But you're on or after Black Friday above plane. You have all this cash, if you wanted to, you could do a jig buyback to $5 billion with the stock tomorrow. This stock seems wrongly price estimate. You know,

27:36
I think every every CEO, I think always thinks that their stock is undervalued and should be valued more. Here's the way I think about it. The market is valuing our stock based on sentiment, and based on, you know, information they have in mind. In many competitors. Yeah, yeah. My job is to be sure that paper stays focus and executes on its game plan. Because there are so many tailwinds. In our industry, I mean, ecommerce is growing by leaps and bounds. Clearly, the pandemic accelerated that PayPal is outperforming the industry consistently, quarter after quarter after quarter. And the way that I think about it, Jim is, you know, if your results are good, and you are executing against what you say you are going to do, then eventually your stock is valued appropriately with your results. And you know, when I look at how we're doing on Buy now pay later, which I'd put us at the very top of the heap of that right now in terms of our growth rate, terms of our scale in terms of our impact in terms of our value proposition. If you look at our core business, X EBIT, XC because that is going away, that is one time to pick through the Python is definitely going away. You've got a core business, incredibly strong and incredibly consistent, as well. And then you look at all the new things that we're putting into place our new app, which is driving engagement, we've had two quarters in a row now, we've had double digit percentage, increases in engagement. Those are all really encouraging and promising signs. 20% next year, what XC bank we will hit 20% Good. Okay, so FC Bay, yep. And by the way, here's one other thing that's really important to note, Jim bet next year, we also said first quarter will be our lowest yes as well. Which means if XC Bay will be between 20 and 21% growth next year, that we're going to exit even higher than that as you go into the fourth quarter. And so to me, this will work its way through, you know, I recognize It's frustrating. Yes, that our stock prices down. I know it's frustrating for you. It's frustrating for me personally. It's frustrating for our employees and obviously disheartening for our shareholders. But my view is, we are executing on our game plan. We are outperforming the market. We're executing on our initiatives. And all that catches up over the medium term.

30:21
Right. Let's leave it right there. I want to thank Dan Schulman, President, CEO of PayPal, Dan, I don't know I'm shake hands. That's right.

30:28
Thank you so much.

30:29
Coming up, know the facts about the new variant stalking this holiday season. Kramer gets a second opinion, you can afford to miss next.

30:47
markets going into roller coaster mode, thanks to the unconstrained but before we can figure out how to play it and invest in to do any work, we got to get our facts straight on this new variable. That's why tonight we're checking in with our most trusted source on COVID. His name is Dr. Eric Topol. He's a fantastic cardiologist, and the founder and director of the Scripps Research translational Institute, he has got absolutely no bias on this issue. And his Twitter account has become required reading these days. Dr. Talbot, welcome back to man money.

31:15
Thanks, Jim. Great to be with you. Again.

31:17
I said that we keep hearing that we don't really have enough information to enter information. But we know that there have been planes landing from South Africa to the Netherlands. And we know that there were many people who had this strain. Are they doing contact tracing? Do we know whether they had that double vaccination? Don't we have a really some solid samples right from the Netherlands?

31:42
We do as you say, Jim, over 10% of those 600 passengers were found to have COVID in large number now are getting sequenced to show that it's actually the Omicron variants. So we don't have the vaccination status on those and many others. We do know the the outbreak in the province in South Africa. It's it's it's pretty steep. But again, most of that is unvaccinated individuals. So we're starting to accrue that information. But we do know a lot about the virus structure and sequence itself, which is really quite revealing.

32:17
Well, there are a lot of people, for instance, we had Stephen, Ben sell on our show, yesterday morning on squawk, and he was very sanguine, he made us feel pretty good. And then he gave an interview the Financial Times that he did, not only was he not sanguine, he was very Saturn made us all feel bad. Now, I mean, I really don't like this kind of inconsistency. And I happen to like Stephen very, very much. But I mean, what is happening, say, is this hour that we're getting more information, because that kind of inconsistency creates tremendous uncertainty?

32:49
I couldn't agree more with you. Yeah, we got to look at the hard facts about how our immune system responds, because that's really the main challenge here. The so called antigenic drift that is because of so many mutations that looks different to our body, are immunized body from vaccines or from a prior infection. And so that is the main agenda here is how much does it really evade our immune system. And you know what we are so certain that when you get a booster third shot, you get really high levels of neutralizing antibodies, and you get a broader number of coverage of those antibodies. The other thing is T cells, T cells are what's really protecting us from severe disease from COVID pneumonia, and our T cells are very insensitive, not affected by variants to any significant degree. So there's lots of reasons for optimism that this is not, you know, some horrible situation that we're in the vaccine should hold up against severe disease, especially with people who are boosted. And and so I don't understand that inconsistency with the same person giving two different messages. And at the same time you buy on tech CEO giving a very positive message. So if you just look at the biology, you would be optimistic, really,

34:12
I mean, he just said, but two out of three ain't bad you you've got Dr. Bohr, who was a very renowned scientists total heavyweight, you've got the big buy in deck, and then Ben sell who in the morning is very bullish, and even he's very big a doc, I gotta tell you, if you gave to me, I'm not kidding. If you came to me and said, Jim, what do you think of the stock of Chevron in the morning? And I said, it's good and I went to you if you guess we at five o'clock when I think I'd say it's bad. You know, when you would say you're a quack, I'm not listening to you. We need consistency. And I feel that your business is a bit of a business. I know because I read your books. There are people who are frankly, they ought to say no comment. At you have been so straight and I follow you because you take you say, that person really doesn't have all the scoop yet. Maybe they should shouldn't be saying, I am saying that I believe that there is a propensity to scare people. And then what happens is that you say, Why should I take a booster, nothing works. And I got attacked last night pretty heavily because I said people should be vaccinated, not unlike when I got the polio jab, okay? Which by the way, I didn't want polio, and I want to give anybody, whatever we even know what polio was, but we didn't want to get it. And I am getting crucified, because I said, I thought that would generalize and our good was right, which is make us back. How is this wrong, Doctor? Terrible? How was that wrong?

35:34
Oh, you know, look, this is a three shot vaccine, we may well declare that finally, the CDC acknowledged that yesterday that all adults, and soon older teens, all should have a third shot. This is a three shot vaccine. You know, we knew that from the beginning, it was only a question of whether it be at one year or two years, but approved from a novel virus that it really was five or six months is when the effectiveness waned. So we have to, we have to declare that so there's no more mixup. It's not a booster. It's a three shot vaccine right. Now, with respect to this, this variant, you know, I'm a kind I think is something that is you have the one outburst in the one province in South Africa, which is steep acknowledging that, and you have a bunch of cases that are scattered now in 20 countries around the world. But we don't have any other outbreaks of significance. We don't have any where there's heavy vaccination coverage, especially with third shots. So before we get too out of control, an anxious panic state, we ought to be watching the lab studies we're going to be out in the days ahead, whether are the Shira from vaccine ease is effective against the American variant. And then we'll have a you started will have much more data about vaccination status. And the what is going on in these community transmissions that have been observed in Germany and Portugal and Netherlands. So we're it's only a matter of days we'll have a lot more.

37:09
Let's wait and reach a conclusion that it's really bad it doesn't work. I want to thank you for coming on doc because what you basically said is, it's common sense medicine and public health, not craziness and scaring people. So thank you so much for coming on. Man. money's always great to see you Dr. Phil.

37:28
Same here agree.

37:30
That's Dr. Eric Topol, Scripps Research translational Institute. And a common sense person really corny as it is made money back in.

37:39
Coming, storm is coming. So give us a call. Kramer's got the answers to all your burning questions. The lightning round is next.

37:58
It is are you ready? To start with Joe enjoy Joe.

38:10
Jim, thanks for taking my call calling from Keith nation about DMC and DigitalOcean they floated a billion dollars and SR convertible notes market didn't seem to mind but then they've taken a beating since

38:23
well, I mean, look, it is in the right place. It's it's tools for developers. I've always liked these kinds of companies. I think you're in fine shape. It's a very high multiple stock. And that's what's causing the decline. Ryan wrote on Brian.

38:36
Hey, Jim, Happy New Year to you and your family. I want to know what you think about DAX are I believe it's the East in the whole this whole COVID

38:45
that has not been the case so far. I mean, you can speculate on it Brian, but it has not been a winner and I don't think that's gonna change. Morris in New York. Morris. Big fan here. I want to get your thoughts on this new, easy play. GGP I know I looked at this, this is one of the actually, we were talking about the investment club people got together he said okay, just one more. One more. One more. I'm not there. I'm not back in this group just can't run in Florida at rot.

39:16
A gym erotica company that my wife and a lot of her friends are shifting to are switching to for some online shopping. Because quote her words they love the checkout process. What are your thoughts on thredUP

39:30
commodities are too many other companies are doing exact same thing right now. Your hope with rap is that Macy's does a spin off of its best of its own e commerce and then buys those guys. Otherwise I say and W Oh, no way out. John, Utah. John. How you doing? I am having a great day. How about you, John?

39:52
Most things are good. Thank you. I've listened to you for many years. Thank you. Appreciate all the positive investment advice you've given.

40:01
Nokia, Nokia Li have actually warmed up to Nokia, then I'll tell you why I've warmed up to it. Because we have tried to shut the Chinese down and a lot of different telecom telecom infrastructure and is starting to play a role because people around the world get a little tired about the repression, the repression, and the tactics of repression did not go well with the democracies that Nokia selling into. I like them. Michael enbart. Michael. I like doing, I'm doing well. How are you?

40:29
Amazing, amazing. That's good. So do I ask my question right now?

40:36
Yeah, why not? Because times in

40:39
Okay, so, Jim, I love your show. I watch it every night with my one year old son, Elijah. Smart kid. What's your thoughts on Delta Airlines

40:48
delta is very interesting because I think you should buy some tomorrow and then buy some more if you can, if Omicron gets worse because delta is a very good company. And that has become other than United my favorite go to airlines and that laser good other.

41:02
Lightning Round is sponsored by TD Ameritrade coming up the Fed speaker. Now how should you react? Cramer wants you to put your money to work. Find out where next. Tomorrow kickoff the trading day was squawk on the street. From post nine at the NYSC

41:32
Jimmy chills deals you want to have named Kevin O'Sullivan from my pickles, which by the way, had way too much all spaced basis. You're not yet sure. Okay, good. But you sweet, too sweet. You can't have that. There's nothing worse than a bad pickle. How about 57 drawers?

41:51
It all starts at 9am. Eastern.

42:00
The pandemic didn't bring us down today. It was Fed Chairman Jay Powell taking a different tack. prepping us for him to start tapping to break sooner than we thought. Here's what puzzles me. We got hammered today. But Who the heck is selling off this news now? Who's deciding that the bulls been slaughtered by Jay Powell's comments that were more hawkish on inflation than we've come to expect? Let's think this through. First, there are the people who've been spooked by inflation all along and now feel like Powell is finally on their side. This cohort wants to scare you out of your stocks in the worst way. That's exactly what they're trying to do. They are great at fear mongering. It's a strong suit set. There's nothing contingent who believes that this whole bull market has been propped up by the Federal Reserve's willingness to keep interest rates low. They're confusing the Fed tapering its quantitative easing with actual rate hikes. We don't see those rate hikes all that soon. And certainly not until COVID is under control. Remember policy driven, you can change his mind. The problem with this tech group is that they seem to assume that Powell will keep rates low forever. That's ridiculous. You're always gonna get tighter monetary policy at some point. Powell moving up the timeline by a few months, not in the world. Third group of sellers those who made a lot of money and don't want to lose it for any reason, whether we're talking paper or Omicron. These profit takers or we'll get any bids because they're up so much good if you can get out and get back in most can't. Fourth, you've got the sellers who want to get out before Omicron takes us by storm and causes a slowdown that hurts earnings pay for things like the so called White Salesforce guidance or the ATT slowdown signal tonight. They expect the market to dip once we start seeing hospitalizations here and they know they can buy their stocks back lower later again to nibble for me. The problem for the bulls is that all four camps the sellers are indifferent price, they tend to just dump the whole s&p and feel relieved the moment they get out no matter how high it may go up later. As for me, I think you got to be more constructive. We always like to keep some cash on hand for the chapel Trust, which we can put to work whenever there's a school of mindless selling, why bother? Because what's driving this decline is a fear the economy will get hit with a one two punch of the Omicron variant and a paid taper. But the one two punch is impossible. If I'm a crunch really bad for business. How's that going to tighten? And if I'm a crunch no big deal and economy keeps chugging chugging taper makes sense. At this point you know what close your doctor Tobel I'm actually more worried about missing the Christmas rally then getting slammed by an early December sell off asbestos as the markets already so oversold and that's why we put some money to work for the chapel trust check your bulletins and we're gonna do the same thing tomorrow. I like to say there's always one market summer promise. Try to find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow.