Mad Money w/ Jim Cramer 12/12/24

Summary

Mad Money w/ Jim Cramer – Episode Summary (12/12/24)

Release Date: December 13, 2024

Overview

In the December 12, 2024 episode of CNBC's "Mad Money" hosted by Jim Cramer, the show delves deep into the current state of the stock market, the anticipated impact of the newly elected President Donald Trump on Wall Street, and features insightful interviews with industry leaders Marvin Ellison, CEO of Lowe's, and Kevin Plank, Founder and CEO of Under Armour. The episode culminates with Jim Cramer's dynamic Lightning Round, where he offers stock buy, sell, and hold recommendations to callers.

---

1. Market Overview and Presidential Influence

Donald Trump's Impact on the Market

Jim Cramer opens the episode by discussing the market’s reaction to President-elect Donald Trump's visit to the New York Stock Exchange (NYSE). Despite the market experiencing a decline—Dow Jones sinking 234 points, S&P 500 dropping 0.5%, and NASDAQ falling 0.66%—Trump's optimistic message about business resonated strongly on the trading floor.

• Cramer (02:23): “But there's something to be said about optimism toward business, and that is what I saw today...”

Cramer emphasizes that Trump's pro-business stance aims to create a favorable environment for investors by advocating for tax cuts and supporting corporate growth. He compares Trump's approach to that of former President Reagan, highlighting the positive impact of presidential support on investor confidence.

• Cramer (05:29): “Here's the bottom line. Biden continually underestimated the sheer number of people who built trillions of dollars in wealth in these last four years...”

Quotes Highlighting Trump's Economic Policies

• Trump (05:29): “Any company that spends $1 billion in this country will be rewarded with lightened regulation.”

Cramer interprets Trump’s policies as a bolster for the stock market, suggesting that an administration focused on business-friendly policies will likely lead to higher stock prices and, consequently, benefit investors.

• Cramer (05:44): “Of course, even with the President's backing, it's insanely hard to build things in this country...”

2. Interview with Marvin Ellison, CEO of Lowe's

Transformative Leadership at Lowe's

Marvin Ellison shares his strategic vision for Lowe's, focusing on technological integration and enhancing customer experience. Under his leadership, the Brooklyn Lowe's store has seen significant improvements in product offerings and operational efficiency.

• Ellison (20:16): “We redesign our labor management system... which helps to create a frictionless customer experience, which is what it's all about.”

Innovative Initiatives

Ellison discusses Lowe's new initiatives, such as the "PPI" productivity loop, which optimizes every aspect of the store—from labor management to supply chain processes—primarily through technological advancements.

• Ellison (22:12): “We are testing something else that we're calling Dwell...”

Addressing Market Challenges

Lowe's is strategically preparing for future market shifts, particularly in housing turnover. With housing turnover at its lowest since the mid-1990s, Ellison anticipates a surge once mortgage rates become more favorable, positioning Lowe's to capitalize on increased consumer spending in home improvement.

• Ellison (24:34): “We have $35 trillion in home equity in the marketplace right now, and it's literally frozen...”

New Private Brand: Lowe's Essentials

To cater to budget-conscious consumers, Lowe's is launching "Lowe's Essentials," a private brand offering high-quality products at affordable prices. This move aims to attract customers who might otherwise shop at dollar stores, thereby increasing store traffic and sales.

• Ellison (26:46): “We created our own brand that's going to create that opening price point...”

Commitment to Veterans

Lowe's prides itself on its commitment to veterans, employing 26,000 current or former military personnel. This initiative not only supports the veteran community but also leverages their strong work ethic and loyalty to enhance the company's operations.

• Ellison (28:30): “We are extremely proud of them and we're proud to be a company US based...”

3. Interview with Kevin Plank, Founder and CEO of Under Armour

Strategic Reinvention at Under Armour

Kevin Plank discusses his return to Under Armour and the measures taken to realign the company’s strategy. Over the past eight months, Plank has focused on simplifying the product line, enhancing workforce efficiency, and strengthening the brand identity.

• Plank (31:03): “We defined who we were... What are we going to do about it?”

Brand Identity and Market Positioning

Under Armour is repositioning itself as a "sports house," emphasizing versatility across various sports and athletic endeavors. This strategy aims to differentiate the brand from competitors like Nike and Adidas by showcasing its ability to support a wide range of athletic activities.

• Plank (34:44): “Under Armour can outfit everything from Notre Dame football...”

Global Expansion and Marketing

Plank highlights Under Armour's global strategies, particularly focusing on regions like APAC and Europe. Hiring industry veterans, such as Eric Litke from Adidas, underscores the company's commitment to enhancing its market presence and brand appeal.

• Plank (36:01): “We brought in someone like Eric Litke to our team...”

Financial Restructuring

Under Armour has undertaken significant financial restructuring to improve margins, including reducing discounted sales and increasing full-price offerings. This shift has positively impacted the company's gross margins, signaling stronger financial health.

• Plank (38:10): “We've been incredibly accretive...”

Future Outlook

Plank expresses confidence in Under Armour's future, citing team diversity and strategic initiatives as key drivers for sustained growth. The company is poised to leverage its enhanced brand identity and operational efficiencies to regain market competitiveness.

• Plank (40:15): “We're about to reinvent a new chapter...”

4. Lightning Round – Stock Recommendations

Caller Interactions and Stock Picks

Jim Cramer engages with callers, providing buy, sell, and hold recommendations based on his analysis of various stocks. Notable discussions include:

• Applied Materials (AMAT): Despite a poor performance, Cramer advises buying due to anticipated order growth.

  • Cramer (42:39): “Let's forget about the chart... buy.”

• Navitas Semiconductor (NVTS): Cramer acknowledges the stock as speculative but notes its losing trend as a cautionary sign.

  • Cramer (43:51): “That's okay for a spec, but they're losing a lot of money.”

• Vah (VAH): Facing competition from Elon Musk, Cramer advises against buying.

  • Cramer (44:09): “I'm going to say no.”

Key Insights from Lightning Round

Cramer's recommendations emphasize the importance of long-term investments over short-term trading, particularly highlighting the stability and growth potential of subscription-based companies.

• Cramer (46:21): “Any company that can raise price at will is a company with a stock that I love...”

Featured Stock Picks

• Costco (COST): Cramer praises Costco's subscription model for providing a steady income stream and enabling price flexibility.
• Netflix (NFLX): Anticipated price hikes are seen as positive, allowing the company to maintain profitability.
• Spotify (SPOT): Continues to be a bargain with its subscription-based model.
• Amazon (AMZN): Despite regulatory challenges, Cramer supports Amazon for its disruptive pricing and market dominance.

5. Key Insights and Conclusions

Strength of Subscription Models

Cramer underscores the resilience and profitability of subscription-based companies, noting their ability to generate predictable revenue and adapt pricing strategies to sustain growth.

• Cramer (46:30): “With these subscription-based companies, there's no reason to trade in and out of their stocks at every data point.”

Economic Policies and Market Confidence

The episode highlights the significant influence of political leadership on market sentiment. Cramer's analysis suggests that a pro-business administration can enhance investor confidence and stimulate market growth.

• Cramer (05:44): “A president who consults with big business over one who seems to enjoy watching endless prosecutions...”

Strategic Leadership in Business

Interviews with Ellison and Plank showcase the critical role of strategic leadership in navigating market challenges, implementing technological innovations, and reinforcing brand identity to drive business success.

Long-Term Investment Strategies

Cramer advocates for patient, long-term investment strategies over reactive trading, emphasizing that understanding a company's foundational strengths and market position is key to building wealth.

---

Notable Quotes with Timestamps

• Jim Cramer [02:23]: “But there's something to be said about optimism toward business, and that is what I saw today...”
• Jim Cramer [05:29]: “Any company that spends $1 billion in this country will be rewarded with lightened regulation.”
• Marvin Ellison [20:16]: “We redesign our labor management system... which helps to create a frictionless customer experience, which is what it's all about.”
• Kevin Plank [31:03]: “We defined who we were... What are we going to do about it?”
• Jim Cramer [46:21]: “Any company that can raise price at will is a company with a stock that I love...”

---

Conclusion

The December 12, 2024 episode of "Mad Money" provides a comprehensive analysis of the current market dynamics influenced by political developments, strategic business leadership at Lowe's and Under Armour, and actionable investment advice through the Lightning Round. Jim Cramer's insights emphasize the importance of long-term investment strategies, the impact of economic policies on market confidence, and the critical role of innovation and brand identity in business success. For investors seeking to navigate the complexities of Wall Street, this episode offers valuable perspectives and actionable recommendations to enhance portfolio performance.

Transcript

[Jim Cramer]

You made it through all the starts and stops of your tech business. And when you're with Amex Business Platinum, you can count on a network of benefits to keep going, including access to over $1,000 in business and travel value annually. And thanks to five times Membership Rewards points on flights and prepaid hotels booked on amextravel.com you and your plugged in engineers can get rewarded for working in the cloud. That's the powerful backing of American Express. Terms apply. Learn [e-mail] AmExBusiness what's your boldest, truly ambitious life goal?

[Kevin Plank]

Everyone has one and everyone deserves a.

[Jim Cramer]

Way to get there.

[Marvin Ellison]

That's why Estateg offers a wide variety of ETFs to give all investors access.

[Jim Cramer]

To the market and the chance to reach their goals.

[Kevin Plank]

Like with DIA, where you get 30 US blue chip stocks in a single.

[Jim Cramer]

Trade wherever you're heading. Getting there starts here with State Street.

[Marvin Ellison]

Before investing, consider the fund's investment objectives.

[Donald Trump]

Risks, charges and expenses. Visit ssga.com for prospectus containing this and other information. Read it carefully. DIA Subject to risks similar to those.

[Marvin Ellison]

Of stocks all ATs are subject to risk, including possible loss of principal. Alternative Alps Distributors Inc.

[Donald Trump]

Distributor.

[Kevin Plank]

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 Kramerica. I'll be with my friends. I'm just trying to make a little money. My job is not just to entertain, but to explain what the heck is going on. So call me at 1-800-743-CBC. Tweet me at Jim Cramer. We had a thrill today on the floor of the New York Stock Exchange when the President Elect Donald Trump came to celebrate being named Time magazine's person the year for the second time. The market may have yawned Dallas sinking 234 points. SB declining point five percent NASDAQ losing point six six percent but there was no yawning when he was talking with an upbeat message about business in our country. Now, I'm well aware that Trump's views on business aren't in play every day here. We had lots of good stocks that really got pounded today. Trump himself wasn't going to give you the green light to buy stocks. I'll have more about my interview with the President Elect later in the show, but if you listen to this interchange, you'll understand that he's not just a cheerleader. What can you say to the working person who owns stocks, should they buy more stock?

[Unnamed Analyst]

Well, I don't want to get into a situation where they do and we have a dip or something, because that can always happen. You know that better than anybody in the world, probably. I think you're the leading authority in going up and going down, but you always end up. He always ends up. That's the good news.

[Kevin Plank]

But there's something to be said about optimism toward business, and that is what I saw today. Hey, look, love them or hate him. Trump's unabashed love for business makes it easier to be a good investor, because investors do need staying power. It's tough out there. You have to be able to own stocks through thick and thin if you're trying to make big money in the market. And you do like owning stocks more when your companies aren't being prosecuted regularly for being too powerful. Of course, Trump's pro business attitude won't matter every day. There's no way the President can expand the gross margins for Adobe or tell you to ignore the guidance for the next quarter, which was perceptibly weaker, sending the stock down 75 points or 13%. Adobe either has to lower prices to compete or come up with something that makes it clearly superior to its rivals. No amount of presidential optimism is going to fix that. He's not going to send the stock of Chevron when he says that there will be much more oil production, that it will make up for whatever inflation we have in the system. We know that oil execs sold their stocks get clobbered when they overproduced during Trump's first administration. They eventually got disciplined about pumping, but the results didn't kick in until the Biden administration. Yes, ironically, the oils thrived during the Biden regime, which was sincerely hostile to fossil fuels, especially with that moratorium on approvals of new liquefied natural gas exports. But my takeaway from Trump's unabashed pro oil and gas stance is that America has become such an important part of the oil equation that we can truly bring down the price with our own overproduction. After the very hot producer price index numbers you got this morning, which really hurt the stock market, I found it a welcome word. We don't want inflation to heat up. We could use oil down 10 bucks. Prata. But there was something reassuring about the President elect coming to the New York Stock Exchange. That was just like when President Reagan came to ring the opening Bell back on March 28, 1985. I remember the occasion. I was at Goldman Sachs probably about 200 yards from here. And when it happened, I marveled that a president was so comfortable ringing the opening bell. His predecessor, Jimmy Carter. Jimmy Carter. He didn't think much of the stock market. Lovely Joe Biden. Reagan embraced the market, and it made you want to go buy something. And it was a halcyon time to buy. I know that's simplistic, I know. But ringing the bell is a big deal because as simple as being simpatico with Wall street, which actually helps, again, to invest. Coincidentally, we had a huge IPO today, Surface Tighten, which makes enterprise software for regular people, for tradespeople. Again, Trump had nothing to do with it. But if you got some of the IPO at $71, well, you're now up 42%. Call it ethereal, but it mattered with Reagan. And it matters with Trump, too. How will this new president pan out once he's installed in the White House? Listen to this. Any company that spends $1 billion in this country will be rewarded with lightened regulation.

[Unnamed Analyst]

A lot of incentives are going to be given. You saw yesterday $1 billion investment. And we give you very fast approvals. Nobody. Nobody's come up with that one yet. Although it seems pretty simple, I think you're going to great days ahead.

[Kevin Plank]

Of course, even with the President's backing, it's insanely hard to build things in this country. We're a nation of due process, which means important constituents can use the legal system to delay just about anything. But that's not the point. What matters is that we're about to have a president who's the corner man for business. Even if he singles out some actors who he thinks are doing the wrong things, he favors higher stock prices, just like Reagan, who famously said he wanted the bears to be in permanent hibernation. Sounds strange, but that matters. We never saw Joe Biden on the floor of the Stock exchange, did we? From my dealings with him, from the old Kudlow and Kramer days on cnbc, a political business show, he simply didn't care about the market. Hey, many don't. Given that my whole ethos is about trying to get regular people to be rich via the stock market, I always viewed Biden's view as needlessly antithetical to creating wealth. Would it have been so hard for Biden to come to the New York Stock Exchange and ring the opening bell? Would it have been so hard? I think the answer would have been yes, Absolutely. It would have been too hard. The legacy of this departing president could have been that he helped create wealth for the huge number of people in this country through their savings, their 401ks, their IRAs, their pensions, the average has certainly demonstrated that he could have laid claim to it. Tens of millions of people benefited from the market during his tenure. But then Biden would have been able to be true to his assistant Attorney General for antitrust hammering of Apple hammering Alphabet. He would have been on the other side of the trade from the FTC's endless harassment of Amazon and its recent investigation of Microsoft. More importantly, it might have threatened his self image as a champion of the working man. Or to put it another way, here's what I heard when I walked on the floor this morning. Stocks went up these last four years despite Biden, despite him. If they go up the next four years, they will at least in part do so because of Trump, if only because he's willing to take the credit. Here's the bottom line. Biden continually underestimated the sheer number of people who built trillions of dollars in wealth in these last four years. So by the way to Vice President Harris, Trump embraced the investing classroom day one. Politically, that's not always a slam dunk. But today, like that Shining hill Day in 1985 when Reagan stood up here, right there, it's a reminder that the Trump White House will be very much in favor of higher stock prices. And that makes it easier to invest. As far as I'm concerned. That's great for the stock market. Even if today was a suboptimal session that will mean absolutely nothing in the great long term. Go to John in Kentucky. John. Hey Jim, this is John. I got a question for you about Linde Corporation, symbol L I N industrial gas producer. They also have a green hydrogen unit.

[Donald Trump]

That while it's only about 10% of.

[Kevin Plank]

Their profits right now, they're spending a goodly portion of their capex on it. They're scheduled to grow at over 10% for the next few years. Years. But I'm worried about the stock. Even though I'm after seeing them on your program and doing some research and buying the stock, I'm up 80% and really like that. But with the changing administration and the de emphasis on renewables. What do you think I should do with this? John, I got to tell you, I mean Linden Yen is an industrial company and industrials do go up when rates go down. You're right. Look, the stock's been weak this year. It's not what I want. However, it's been a great long term producer. And let's remember that this company has not had the luxury of having any volume growth yet. That's going to happen in 2025. Stay long Lindy, just like we do for the Chapel Trust. Got a lot of talking next week about that. When we do our sit down, we do our club call. Anyway, President Elect Trump has embraced the investing class. Hate him or like him, he's done it. Far as I'm concerned. That is great for the stock market long term. I'm ready tonight after having a chance to interview President like Trump on the floor here, I'm sharing more of my key takeaways about where the market stands under second Trump presidency. Ted Lohz is firing on all cylinders. I sat down with the company's top branch right over here in Brooklyn and Under Armour founders back. Yes, that's right, Kevin Plank. He is at the helm of the iconic sportswear band and we're going to hear how he's preparing to right the ship. So stay with Kramer.

[Marvin Ellison]

Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

[Kevin Plank]

What does it take.

[Jim Cramer]

To design and deliver a corporate strategy with confidence? How will you drive long term value by understanding the risks and rewards within.

[Kevin Plank]

A challenging geopolitical environment?

[Jim Cramer]

EY Parthenon has 10,000 strategists with deep sector knowledge backed by the real world.

[Kevin Plank]

Experience of the EY Global network that.

[Jim Cramer]

Can help start your journey with [e-mail] us ey Parthenon. You've almost certainly been prescribed a medication before, but did you understand how it worked? The way your medication works in your body shouldn't be a mystery. Learn how Vivgart, Hitrulo, Fgartigamod, Alpha and Hyaluronidase QVFC works by visiting vivgart.commoa that's V Y V G A R T.commoa brought to you by Argenics when you're hiring, the best way to search for a candidate isn't to search at all. Don't search Match with Indeed. Indeed is your matching and hiring platform with over 300 feed 50 million global monthly visitors, according to Indeed data and a matching engine that helps you find quality candidates fast. Use Indeed for scheduling, screening and messaging to connect with candidates faster. Plus 93% of employers agree Indeed delivers the highest quality matches compared to other job sites, according to a recent Indeed survey leveraging over 140 million qualifications and preferences every day, Indeed's matching engine is constantly learning from your preferences. Join more than three and a half million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsored job credit. To get your jobs more visibility@ Indeed.com madmoney just go to Indeed.com madmoney right now and support this show by saying you heard about Indeed on this podcast. Indeed.com mad money terms and conditions apply. Need to hire you Need Indeed.

[Kevin Plank]

When I broke into the journalism business about five decades ago, I was notorious for my willingness to get in front of people's faces. It's not a quality this former crime reporter easily forgets. So when I found myself sneaking behind the Vice President Elect Vance to get to the President Elect Trump, it was a little like the 1977 vintage Jim Cramer when you get in front of the President, you don't punt. I had my list of 25 questions logged into my head. They tumbled out chaotically. But Trump said things in response that need to be gone over because they matter to the market. They matter to you. So let me annotate these responses to help Americans understand what this moment means for your portfolio. First, how about Trump's invitation to companies to come here and create new business?

[Unnamed Analyst]

I think you're going to see some very good days ahead. A lot of incentives are going to be given. You saw yesterday a billion dollar investment and we give you very fast approvals. Nobody, nobody's come up with that one yet. Although it seems pretty simple. I think you're going to have some great days ahead.

[Kevin Plank]

This one reminded me of how difficult President Biden made for companies who wanted to build liquefied natural gas terminals here, biggest projects in the country. Without any consultation, he declared this bizarre moratorium on the permitting of LNG plants. Speaking of wars, LNG exports would have been the best way to push back against Russia's influence in Europe because all of these countries are addicted to Russian natural gas. Next, Trump said a lot about taxes. Comments like this.

[Unnamed Analyst]

We'Re going to do things, I think that haven't been really done before. We're going to be cutting taxes still further. As you know, we got it down to 21%. We're going to bring it down even below that. You pay 21 if you don't build here and meaning your product or whatever it is you're building. And if you do, we're going to try getting it down to 15%. But you have to build your product, make your product in the usa.

[Kevin Plank]

The numbers aren't as relevant as the fact that he's talking about corporate taxes being cut. Regardless of where you stand on that policy, if you own stocks, it's good news for your portfolio. More profits for companies means more profits for you. I know a lot of you care a great deal about crypto. So listen to this one.

[Unnamed Analyst]

We're going to do something great with crypto because we don't want China or anybody else, and not just China, but others are embracing it and we want to be the head. We're going to be ahead of AI.

[Kevin Plank]

Here's a president this has his opportunity in crypto. And now you need to know that behind the scenes were many people who worked in finance who told me that if we didn't go all in crypto, eventually it would go somewhere else and America wouldn't have an edge. More importantly, we wouldn't have any ability to control the crypto ecosystem. If you own crypto or you want to buy some, I found that positive and reassuring. Trump had two things to say about China. First, this.

[Unnamed Analyst]

We have a lot of talks with China. We have a good relationship with China. I have a surprising relationship now. When the COVID came in, I sort of cut it off. That was a step too far. That was, as they say, a bridge too far. But we've been talking and discussing with President Xi some things and others, other world leaders, and I think we're going to do very well all around.

[Kevin Plank]

This was in response to my concern that the Chinese could try to block us from getting product from Taiwan. Like the chips Taiwan semi makes for Nvidia. I was pretty surprised that he said he had a good relationship with China. Made me feel somewhat reassured that existential worry about Nvidia and Taiwan semi could be taken off the table. But then we got this.

[Unnamed Analyst]

We've been abused as a country. We've been badly abused from an economic standpoint, I think. And even militarily, you know, we put up all the money, they put up nothing and then they abuse us on the economy. And we just can't let that happen. We're not going to be abused anymore. We put America first, but we're also going to help other countries.

[Kevin Plank]

So while the President elects saying good things about the relationship with China, the Chinese government should not be and better not be complacent about our relationship between our countries. I felt a little chilling, but maybe that's what we should be expecting when we're talking about two superpowers with huge nuclear arsenals. Finally, we heard about the Magnificent Seven, or at least their derivatives.

[Unnamed Analyst]

Mark Zuckerberg's been able to see me and I can tell you Elon is another. And Jeff Bezos is coming up next week.

[Kevin Plank]

I know it's just a morsel, but this is a reminder that the Trump White House wants to listen to business leaders. We made news actually, with the Bezos stuff. He's not willing to shun these leaders. He wants to sit down with them. He's willing to sit down with CEOs without fearing embarrassment and the disdain of his own party. He's even breaking bread with someone who he really did not get along with. Go back to what he first did when he came in with Amazon and Jeff Bezos, as an investor, I favor a president who consults with big business over one who seems to enjoy watching endless prosecutions and inquiries against the companies that Mike Chapel Trust happens to own. And you probably do too. Am I just being prurient? No. Here's the bottom line. Dialogue is reassuring. Not talking is forbidding. Reassuring can still lead to oppositional stances, but it's more likely going to lead to reasoning. And reasoning is good for business, good for the country, and yes, good for your portfolio. And mad money is back into the brink. Coming up. Looks like Christmas came early. We're here at Lowe's in Brooklyn talking to Marvin Ellison, the CEO. We're examining this economy from the ground up.

[Jim Cramer]

Looking for toys that'll get the biggest reactions.

[Kevin Plank]

Yes, please.

[Jim Cramer]

Walmart has jaw dropping toys. Like for real. Daisy, Yoga Goat, awesome. Razor Crazy Cart Shuffle.

[Marvin Ellison]

Whoa.

[Jim Cramer]

Hot Wheels, Bluey, three in one, Airplane playset and more. Aren't you going to say cool?

[Kevin Plank]

I'm saving it for the holidays.

[Jim Cramer]

Smart. Welcome to your Walmart.

[Kevin Plank]

Ryan Reynolds here from Mint Mobile. With the price of just about everything going up during inflation, we thought we'd bring our prices down.

[Marvin Ellison]

So to help us, we brought in.

[Kevin Plank]

A reverse auctioneer, which is apparently a thing Mint Mobile unlimited premium wireless. 3030 bid to get 30.

[Marvin Ellison]

2020. Better to get 2020 15.

[Kevin Plank]

1515 15.

[Marvin Ellison]

Just 15 bucks month.

[Kevin Plank]

So give it a [e-mail] Switch 45.

[Jim Cramer]

Upfront payment equivalent to 15 per month. New customers on first three month plan only.

[Marvin Ellison]

Taxes and fees, extra speed slower above 40 gigabytes. You detailed.

[Kevin Plank]

Well, I guess you know where I was today. Yes, the Brooklyn store of Lowe's with the chairman and CEO of Flows, Marvin Ellison. We sat down to talk about pretty much everything from tech to the Fed to housing turnover and to what it looks like to go to a beautiful Store. Take a look. Martin, you're at my lows. And you and I know that. And it's been a journey since the day you took over seven years. Give me the run here.

[Donald Trump]

Well, Jim, it's great to be here with you in Brooklyn. I remember we had lunch that day. I came to the store for the first time a little over six years ago. And this store has been transformed. And as we discussed, we've transformed it with people, with product, and with technology. A lot of the technology that we had no idea at that time that we needed because the previous management didn't really understand that retail is about technology. Technology that makes the associates jobs easier and the customer experience better. And so, man, I am just. I'm great, grateful, and I'm proud to be here with you today.

[Kevin Plank]

Well, you should be. And there are certain milestones of what you've done. I remember when the pro. The pro did not want to come here. The percentage of pro that you have from when you took over is extraordinary.

[Donald Trump]

So six years ago, the pro penetration of the store was about 20%. Now it's close to to 50. And so what that tells us is that a, we put the right product in place. Number two, we put the right people in place and we put the systems in place like our rewards program. It gives the customers a reason to come back. And so for an urban store, like a store in Brooklyn, if you don't have a pro penetration that starts with a four or five, then it's really hard to get the frequency and get the productivity. And so we are pleased. And this is a model for what we're building around the company.

[Kevin Plank]

And I think that one of the things you're doing when you take pro, you are taking share, and you're doing it with perpetual product improvement, including things like just the speed, the time, the way the aisles work, how they get in and get out, because time is so precious for them.

[Donald Trump]

It is, Jim. And so the one thing that we figured out early on is that we have to find a productivity loop. And so we call it ppi. It's our initiative to look at ways we can make every asset and every aspect of the store run better, from labor management to pricing to cost out to supply chain. And that's all driven primarily through technology. I mean, we have some great innovation that's in this store. We redesign the front ends, we redesign our labor management system that's activity based by department, by day, by day of the week to make sure that we're putting the associates where they need to be to drive customer service, and that helps to create a frictionless customer experience, which is what it's all about.

[Kevin Plank]

Well, I want people to know it's just not for show. We could talk about Vision Pro, but I love this nudge program that you've got with Nvidia, which makes it so Checkout Scoop, but also it helps shrink, too.

[Donald Trump]

It does. You know, we were one of the retailers that continue to expand. Seth, Checkout. When other retailers were pulling back because they were concerned, you know, with the shrinkage. And one of the things that we determined that you could use, you know, this nudge technology by using cameras and also AI type of interfaces that reminded the customers of what they did and did not scan. And you would be amazed at the effectiveness at that, you know, technology. And now we're testing something else that we're calling Dwell, where we put cameras around the store, we put heat maps around the store, and we can determine where customers are versus where our associates are located. And then we can then alert an associate. There's a customer that's dwelling in an area that may need customer service, and we can help that associate to get there a lot faster. So our partnerships with Computer Vision, with Nvidia, with Palantir, and even with Open AI has been really remarkable. And we're working on some really, really cool initiatives that we'll be rolling out next year.

[Kevin Plank]

At the same time, you still are hostage to some degree. You've been talking about how it is a moment where there's some people hurting. You do Lowe's Essentials. We got to talk about that. But also just in terms of housing turnover, which you need, it's not happening yet. When can it happen and what will it mean? The lowest bottom line.

[Donald Trump]

So just as a data point, we have the lowest housing turnover since the mid-1990s. That's going on right now. We call it the lock in effect, where roughly half of the country has a mortgage rate of 4% or less. And so you're not really incentivized to put your house on the market. So. So we're stagnated. So we do need housing turnover to start to happen. But. But also, Jim, that the thing that we're happy about is that you have good disposable personal income that's now rising faster than inflation. Your houses are the oldest they've been, you know, in since record keeping was available. You know, and so we feel good about the fact that the homeowner is economically healthy, but we still have a consumer confidence issue. We have a turnover issue. And we still have consumers that are feeling the pain of inflation and interest rates. And so when the macro environment frees up a bit, you'll see turnover happen. And when that happens, it's going to be like a tailwind in to our business and other business that's dependent on housing.

[Kevin Plank]

People have to understand that when the Fed cuts rates, it's meaningful to business. You have a lot of money locked up in homes. I would have to believe as rates come down, you might see some of those people take out, say home equity loans and come here and do what they have to do to be able to make the place quick.

[Donald Trump]

So the data point is you have $35 trillion in home equity in the marketplace right now, and it's literally frozen. And so what we predict, we don't know when it's going to happen. But you're right, you're going to have people that's going to tap into that home equity and they're going to do things like remodeling their kitchen, putting in new flooring, redoing their bathrooms. And the good thing is, Jim, we've made investments over the last five years to put in best in class showrooms for flooring, kitchens, bath appliances, because we know that when that cycle happens from a macroeconomic perspective, we want to be ready for it. We don't want to be chasing it. But we've also been working as you know, just on the technology infrastructure, our digital infrastructure, our IT infrastructure. And so we're in a really good position. When the market starts to inflect, we think we're going to be positioned to take share.

[Kevin Plank]

But in the interim, you're not wasting time. You're helping people. You're giving people every the democratization what Lowe's offers. When you do something like Lowe's, essentially you are appealing to people who have every bill, they want to do their home, but they've been priced out, not here.

[Donald Trump]

Yeah, that's right. We, we basically decided that we're going to create a new private brand called Lowe's Essentials that's going to give our customers a great value, but also great quality at a value. So, so rather than having a customer having to go to a dollar store environment or even a mass merchant for a lower price point home good item, we're going to create our own brand that's going to create that opening price point, that cart starter to get them to come in. So we're really excited about it. Our merchants and I talked about this a few months ago, asking the question you how can we be a better opening price point retailer for home improvement? And they took the lead and we created this Lowe's essential brand that's going to be rolling out next year. And we're very excited about it.

[Kevin Plank]

Same time, you've done a lot rural, you've also come in. I mean, I like what you're doing. Carhartt work where and your competitive pricing with some of the other companies that offer this.

[Donald Trump]

For sure, for sure. You know what's interesting, Jim, is, and you know, I spent. I spent four years at JC Penney and it was an incredible learning experience. And I met some of the best people in the retail world during that time, but I also built some relationships, and Carhartt was one of those relationships.

[Kevin Plank]

Okay.

[Donald Trump]

And so, and so when I came over here, you know, we opened the door up and asked them, would they be willing to work with us. We started online and now we've started to put it in the store. And what surprised me is that we thought, this will definitely work in the rural environment. And then I come to find out that one of our best Carhartt stores in the company is Brooklyn. Brooklyn, right here. Right here. And we just decided to put it in just to see what would happen in an urban environment. And so we found out that oftentimes with all the fancy data we have, we get the customer wrong. And so now we've determined that this is not a rural brand, this is a consumer brand. So now we're expanding Carhartt, we're expanding pet, we're expanding automotive across the entire company. In addition to our rural locations, again, we have Wrangler, we have Lee. So we have other brands along with Carhartt that we're really excited about. That's helping our pros and our DIY consumers. You get into workaware and it eliminates one trip that they would make. They don't have to go to the other place here.

[Kevin Plank]

No, they do not.

[Donald Trump]

They can come here, they can get those goods, and then they can get their home improvement goods at the same shopping trip.

[Kevin Plank]

Okay? Now, people don't know about you. You're a humble person and you're also not going to brag. But I will tell you that I think hiring of vets is unparalleled, and I think it's because you believe in vets as being great business people.

[Donald Trump]

For sure. Jim. Jim, we have 26,000 current or ex veterans working for us right now. For everybody watching this broadcast, if you're in a low store and you see one of Our associates wearing a camouflage vest that is a vet. And so we are proud of them. They bring a work ethic. They bring a love for this company country and a love for their fellow associates like no other associate population we have. So we are extremely proud of them and we're proud to be a company us based. All of our revenue is driven in the US that we can support our vets because they need it. And we also, philanthropically, I mean, the veteran population is one of our largest areas of philanthropy. And we offer this 10% discount with very few restrictions year round for our vest because we want to say that we appreciate that.

[Kevin Plank]

All right, last thing I got to get, like many other people, I got to get in this case, my wife some Christmas presents from the store. What is hot? What should I buy?

[Donald Trump]

Well, look, you can always. We got the best assortment of appliances, so I'm taking you high first. So we got, we got some of the best appliances. We got every brand. We're the only, we're the only retailer in the US that can do next day delivery and almost every zip code in the country and install for an appliance. So appliances are big. Tools are really big. I mean, this is a time of year where you can't go wrong with our tool brand. So we got, we got to take you over there. And again, anything that has to do with the home gym, whether it's, whether it's grills, whether it's outdoor power equipment, I mean, you're in the right place. We can take care of all of your needs.

[Kevin Plank]

Well, I got to take a break here, but let's go do some buying. Marvin Ellison, chairman, president and CEO of Lowe's, thank you so much.

[Donald Trump]

Yes, sir.

[Marvin Ellison]

Thank you. Coming up, sometimes this market feels like a battle. So is it the right time to invest in some Under Armour? Kramer is going one on one with the CEO Next.

[Kevin Plank]

Can Underarm refine make a sustainable comeback now that its founder is back for a second stand as CEO? Today, the company hosted investor Day here in New York City. I want you to get the same insight as the professionals. The meeting maybe even better. So let's go straight to the source with Kevin Plank, the founder, president, CEO of Under Armour, old friend of the show and I glad to have you back on the show, Mr. Clark. Good to see you, Jim.

[Marvin Ellison]

It's great to be here. Thank you.

[Kevin Plank]

Okay. When you came back, I said, I called you, I said, I want you to come on. And you said, no, I'm not coming on until I have the correct story to Tell because the facts are in our favor. I begged again. I said I'll come down there, don't worry about it. Today is a day where you feel like you can talk.

[Marvin Ellison]

Yeah. I step back into the chair April 1st. So in the last eight months, what we've been able to accomplish ages get our arms around the business and it's, it's pretty simple. It's going back to basics in many ways of just under finding itself. You know, we've done a number of things from, you know, in the first three weeks we cut 25% of our SKUs. It's an ambition we have. In the next 18 months we reset our workforce a little bit. We made some really difficult decisions, added a nine month go to market to our 18 month go to market to speed up our process. And probably the most important thing that we did is we, we defined who we were, you know, because I think for a long time you can see with a brand it's so important to be able to know who you are, but be able to articulate that to your consumers.

[Kevin Plank]

Wrong. Is that what went wrong? You're the predecessors forgot who the brand was. You didn't know it.

[Marvin Ellison]

I just know today walking into this chair, it was important that we were clear. And so I speak through video. And so in the first three weeks we commissioned a video called, you know, who are We? We basically, I call it our Eminem, our B Rabbit moment, if you're a friend fan of 8mile where he basically stands up and says, you're right. He says, I do live in a trailer park. I am this, I am that. So we've sort of got it all out of the way to take vulnerability and being carried, being uncomfortable, to just say, okay, this is where we are. So what are we going to do about it? And somewhere, somehow this theme of what and who we were, which is the underdog.

[Kevin Plank]

Right.

[Marvin Ellison]

This wasn't complicated. And as we said it just became so obvious that we started crystallizing it. We put up 138 second video together that I think I showed as the last thing I did at investor day today. I said I could have probably saved us the three hours we just tried covering by articulating through this way which talks about, you know, everything from what it means for that person who wasn't born big enough or fast enough or tall enough or strong enough or handsome enough or pretty enough, whatever it might be, who had to apply the rule of 10,000 hours. A Steph Curry ask that said, that's what I'm going to do to create my superpower. And Under Armour is for that person. It's for that person who does have to try more. We say we don't innovate so that we can run up the score. We innovate to give our athletes a fighting chance. And that underdog striving DNA is. I think it's what we've been missing. And it's a position which is so clear and so authentic to what and who we are.

[Kevin Plank]

But I'm worried about is this. When I first bet you were the underdog to Nike. Now, Nike does have its own problems, but I now feel you're the underdog to 2 on on holdings. They're so smart. To Hoka. New Balance has made a major comeback, as you know. I mean, these are heavy competitors who are really as feisty as you are.

[Marvin Ellison]

Yeah. But unique about us is one of the. One of the things we covered today was that Under Armour, I'm trying to create the vernacular furniture because they say, you should say we're going to cover the athletic industry. You know, I respect those other brands and they're very good at what they do, but they're competing in the running segment. You know, brands are. Companies are built because, you know, you make a product and it becomes famous. It's a silhouette, it's an aesthetic, it's a product. However, brands become famous or prove their brands because they demonstrate we can do that over and over and over again. And so Under Armour has a diversity of who we outfit, which is more than just running, more than just yoga, more than just athleisure. Under Armour can outfit everything from Notre Dame football in the College Football Playoff all the way to Tony Rutiger and three guys on Real Madrid outfitting. And they're kidding their boots out to Stephen Curry in the NBA or Olympic Finals. And that ability to play multiple sports and the way that we can do that, we call ourselves a sports house, a podium brand. And I believe there's only four of us globally, and it's three of our bigger competitors. It's Puma, it's Nike, it's Adi, and it's an Under Armour who has that ability to show up on any athletic field, court or pitch virtually in any athletic endeavor anywhere around the world and be seen as credible.

[Kevin Plank]

Well, let's talk about that, because I felt one of the most important things that you talked about today was international, the different strategies for different geographies. Because I got to take Kevin when I travel. I think you're bigger in Europe than you are Here.

[Marvin Ellison]

What we need to do is there's the three regions that we look at between apac, Europe and here in the States is that as the father of an 18 year old daughter, 21 year old son, which is one of the things I enjoy doing when I wasn't as the CEO and the ability to really be with my kids, you know, my daughter doesn't wear under armour because dad works there. Right. And so, and I don't think that the kid is mad at us because we identify our consumer as 16 to 24 years old, but they're just not thinking about us. And so that's our job, is to make them care. And one of the big points we made is that here and globally, you know, we, we got money, we got, we have, we have resources, we have more than a half a billion dollar marketing budget. It just doesn't feel like that. And so when you walk around the States, that's one of the things. We're bringing someone like Eric Litke to our team. He's the former president brand, both marketing and product at Adidas. Before having someone like Eric here who can then mandate one is like go find that, go find a significant slug so we can let it be felt. But in your, you're right, we've got a, we've got good trajectory that's been positive for us. And then here in the States where you know, we've taken some positions to reset our business right now.

[Kevin Plank]

Well, we should just talk about a positive surprise. I mean, you waited to get good number. Come on, last number was good. Now I want to know, and this is what people to say is, oh my God, Kramer's drunk the Kool Aid. The guy laughed, he was doing liquor business, he was doing all this stuff. Now he's going to come back. I mean, it's Nothing good since 2018. What do you say to the people who say, you know, it's been too long and it's too late?

[Marvin Ellison]

Yeah. I'm 52 years old. I can't imagine trying to do this at 62. I don't know what that would feel like. But I got to tell you, number one, the last eight months have been some of the best times I've had in my entire life is the ability to drive happy is because, look, I'm a lousy golfer. And one of the things I said is that, you know what we're going to do this time around is going to make sure that we're driving and building a really quiet company and a really loud brand and what you learn with hopefully bringing a little bit of wisdom to that of 28 years having done this, where you can just feel it, you can smell it, you know what it is. And the key this time is, you know, the great golfers aren't, you know, the harder I swing, the farther it goes. The guys that hold the club really loose in their hands. And so I'm doing that, empowering our team and bring it around and applying all those lessons from chapter one here into chapter two.

[Kevin Plank]

Well, I speak to Marvin Ellison at Lowe's. He's saying the modern retailer has to know technology almost more than anything else. Now, in the times that you went away, the technology really changed. Now, are you able to bring enough to dtc? Are you able to bring enough of the wisdom of tech to be able to make it so you can catch up and pass the other guys?

[Marvin Ellison]

I think that's an opportunity. And how is AI going to affect our speech or all the things that everybody feels like we're, we've got FOMO on that, I think, like everyone. And so how are we going to address that? But first and foremost, we're starting with our brand. We went back to basic black blocking and tackling and blocking and tackling for us right now means it's reducing, getting our margin structure right. You know, we said we're going to clean the brand up when I walked back in, in week six, May 16th of this year, we reset expectations and took about 700 million out of our top line. You know, we took about two thirds out of our bottom line and just said it's time for us to get the brand healthy. And so a year ago on E Commerce, we were about 1/3 full price, 2/3 discounted this year. A year later, we've, we've basically inverted that close to it. We're about more than 50% full price and the balance in off price.

[Kevin Plank]

What should be the goal here?

[Marvin Ellison]

I mean, 100%, right?

[Kevin Plank]

But you almost can't. But I'm saying if you can go up that way, then the margins are going to explode.

[Marvin Ellison]

Well, that's what happened is that, that's what we've seen happen is that it actually has been incredibly accretive. And we've been, we said, because, you know, we were so much red on the screen when we were saying, let's reset the math. The one indicator that we can all use and look at that's consistent is gross margin. So that's been good to us, for us to date. But, you know, that's part of what we did today is we had a qualitative conversation. We weren't ready to talk math and what the future looks like, but we showed them our team. We wanted to come in and feel our energy. One look in the whites of our eyes and say, do you have a strategy? Do you know who you are? And be able to articulate that in a pretty clear way. So I'm really proud of what our team.

[Kevin Plank]

Were they skeptical today? I mean, are they embracing? What was the temperature of the room?

[Marvin Ellison]

I think you audience there was really good, but you're walking into, you know, as an analyst, you're going, where's the beef? And I need, I want the math. And without that, it's going to be a tougher conversation. But Jim, we haven't held an Investor Day in six years. So it's been 2189 days. So to the day, December 12th of 2018. So the ability to just go in and just, just tell our story and really represent our team because you have to put these flags in the ground, these markers along the way that just says, okay, that'll be something. We'll look back at December 12th of 2024. And I remember when what they said they're going to do is that they are a sports house. They did articulate this underdog message. Wow. It does. I do. I met Eric Lickey. I saw you seen Sadie's, you know, product vision. I was, I was able to listen to you on White. And Kyle Blakely, our head of innovation, is this mixture between new blood that has come from our industry mixed with some, you know, classic 15, 17 year UAE. And so I think we put a pretty good diverse group and mix of people together. It's going to be, you know, we'll see what happens. But I don't know.

[Kevin Plank]

Okay, so what if I say what is someone says, what is our job? Are they sneakers? They close? Who do they want to be? What do I say about this company and who you are?

[Marvin Ellison]

Yeah, we're not, we're not emulating anybody else, but we're certainly, we're going to, we're going to listen and learn from, from our own lessons. And again, 28 years having done this, we've seen a lot of different machinations and chapters of what this brand is and where this brand is going. And so we're about to reinvent a new chapter.

[Kevin Plank]

We know we've got founder DNA here. You know, you and I, at certain points we felt like that maybe things were not awry and I had been somewhat critical for you to come on to me says Jim, I am not going to let you down. Are you going to let me down? Are you going to let those people down?

[Marvin Ellison]

No, no. This is, but this is about, this is about the branch, right? You know, this is about the name of the jersey. The name of the jersey.

[Kevin Plank]

I'm going to win. Listen, I know that you want to win, but I know you hate to lose. You hate to lose. Gonna win, you know.

[Marvin Ellison]

We are opening a new headquarters in Baltimore. Quick answer is yes, we're opening a new headquarters in Baltimore. And it's thinking about things of like what happens in a, you know, sort of a post pandemic world, how people are coming to the office. You know, I've thrown enough good parties in my life to know that you can beg people, pay people, spit people, try to get them to come to your party or you can just focus on throwing the world's greatest party and everybody's going to want to be there. If you're looking for a proof point because we say our brand will inflect before our business. Does somebody ask, give me an example of that. And probably the best example were the people standing on. Sitting on stage with me today. It was Cara Trent, our head of North America who everybody who took our business in Europe from 600 million to a billion one. You ask about the upside we had there. It's Eric Litke, it's Yasin, it's. It's a. We got a squad and I'm really excited about the squad. So we're in the fight. There's no guarantees in this world, but I sure wouldn't bet against.

[Kevin Plank]

I respect you and everything you.

[Marvin Ellison]

Thank you.

[Kevin Plank]

There's my guarantee.

[Marvin Ellison]

Appreciate that.

[Kevin Plank]

Thank you. That's Kevin Planks, the founder, president and CEO of Under Armour. He's here. If he's here, I believe they have money back in. It is time for. And then the lightning round is over. Are you ready, Skinny daddy? Time of the lightning round Christmas. I'm starting with J in Nevada. J. Hey, Jen.

[Jim Cramer]

Hey.

[Kevin Plank]

Long time follower and club member. I've had this talk for a while with chip factories starting to be built in the States.

[Marvin Ellison]

I thought this would offset its China exposure. I lowered my cost basis with a.

[Kevin Plank]

Few buys on the way down.

[Marvin Ellison]

Now I think it's just a falling machete. Should I hold on or harvest a lot?

[Kevin Plank]

My stock is applied material. That is a foil machete. Very good analogy. However, I will say this. Let's forget about the chart which is about one of the worst in the book and just accept the fact that they're gonna have better orders next year than this year. And therefore I say pull the trigger and buy. Let's go to Quinn in Oregon where my daughter lived for a very long time. Quinn. Hey Jim. Respectfully, booyah and scobeeves. So here's the stitch.

[Jim Cramer]

I'm 26, been a listener since I was a kid.

[Donald Trump]

Happy to report that your show plays on the trading floor.

[Kevin Plank]

My brother and I's very own contrarian hedge fund every day.

[Donald Trump]

And so I want to pick your brain on worldwide dry bulk shipper fblk.

[Kevin Plank]

Yeah, that's a play on China. Basically judge dry bulk. I'm not there. I gotta be against that. I'm sorry. I don't care. I don't even think that yield can hold up given the fact that their orders are where they are. I need to go. But thank you for the nice comments and keep watching. That's good. Although that was somewhat of. Well, yeah. Let's go to Mark in Wisconsin. Mark.

[Donald Trump]

Dr. Kramer, thank you for taking my call.

[Kevin Plank]

A while back I talked you about.

[Donald Trump]

This stock as a spec. You said okay for a spec, but they're losing a lot of money. Ticker symbol mvts. Navitas Semiconductor.

[Kevin Plank]

You know, that's okay for a spec, but they're losing a lot of money. Let's go to. Don't mean to be too facetious, but it's true. I mean, what can I say? Let's go to Ben in Florida. Ben? Yeah. The stock that I'm thinking of is.

[Donald Trump]

Down 25% this month.

[Kevin Plank]

What to. Is it time to buy stock ticker Vah. You're going up against Elon Musk with that one. And I have found that to be somewhat of a suboptimal situation. So I'm going to say no. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[Marvin Ellison]

The Lightning Round is sponsored by Charles Schwab.

[Kevin Plank]

Traders are always jonesing for action. They can't resist. Data points zoom by and they want to bet on what's next. But it's so much easier to patiently invest in stocks for the long haul. Let me use some examples. Tonight Costco reported they give you monthly sales numbers in between quarters. But the people reacting to the quarter tonight either don't know or don't care that the monthly is tell the real story. There's nothing new here. So anyone pulling the trigger in after hours trading simply hasn't done the homework. Even as a number was a good one. But it wasn't a surprise. It can't see the Truth about Costco is retiring CFO Richard Glanty explained to me repeatedly. Since the subscription business, they make their real money from the member due. You can be a Gold Star member, 65 bucks or a year, or executive member like me at 130 a year plus 2% back on qualified Costco purchasers up 1,250. Now they raise the price periodically and no one cares because the membership pays for itself given the bargains in the store because Costco's subscription model, they can afford to take chances with merchandise. Bring in new stuff to make it exciting. Along with that, free samples and yes, the buck 50 hot dog. They sell plenty of stuff at or below cost, including the incredible discount price for Cayman, my favorite wine. I go into this because I'm addicted to the subscription model, not to the products they sell. Gives you a steady source of income that can be raised at will if the service is any good. And that tells me that Costco is a buy. Who else can do this? How about Netflix? In 14 days, Squid Games 2 comes out. And as we get closer to that date, the analysts will fall over each other themselves, praising the company and raising price targets. They know the truth. Netflix can raise price of will. If you can't afford it, well, you can always take the ad tier. Spotify is insanely popular too. And I believe, honestly, you can't even remember, I bet what you paid for this amazing product because it's such an incredible bargain and the subscription is a good deal. Finally, there's Amazon Prime. Lots of people thought I was too ruthless toward the soon to be former head of the ftc, Lina Khan. She's been trying to crack down on Amazon in order to bail out not the consumer, but the mom and pop businesses that she says can't grow because they have to play by Amazon's rules. I think Khan's FTC fails to recognize that these small retailers have other options. She must not know anyone who uses Shopify or even Etsy. Granted, the government does have to weigh competing interests. Amazon's a huge disruptor. It often seemed like Khan wanted to roll back the clock to help the smaller operators who've been disrupted. But she didn't seem to care about the tens of millions of consumers who think Amazon's a bargain or they wouldn't keep paying up for Prime. I think the stocks a buy precisely for the reasons why com went after them. They're too good, they price way too low and therefore they can disrupt anyone. And that's why we own Amazon for the charitable trust along with Costco. We'll have plenty to say about that in our Investing Club bulletin tonight. That's how good the Costco numbers were. With these subscription based companies, there's no reason to trade in and out of their stocks at every data point. Any company that can raise price at will is a company with a stock that I love, whether it's Netflix or Spotify, Amazon or Costco. Let me tell you something, trading those suckers game. I like to say there's always a bull market summer. I promise to find it just for you right here on Mid Money. I'm Drew Kramer, Cedar Bar.

[Jim Cramer]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their 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 Jim Cramer 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 Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer Looking for toys that'll get the biggest reactions?

[Kevin Plank]

Yes, please.

[Jim Cramer]

Walmart has Jaw dropping toys. Like for real, Daisy, Yoga Goat awesome, Razor Crazy, Cart Shuffle, Whoa. Hot wheels, Bluey, 3 in 1, airplane playset, and more.

[Marvin Ellison]

Freak out.

[Jim Cramer]

Aren't you gonna say cool?

[Kevin Plank]

I'm saving it for the holidays.

[Jim Cramer]

Smart.

[Donald Trump]

Aw, freak out.

[Jim Cramer]

Welcome to your Walmart.