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tv   Mad Money  CNBC  June 24, 2016 6:00pm-7:01pm EDT

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our website. and we'll see you back here next friday. two important shows tonight, "mad money" with jim cramer starts at the top of the hour, and the special coverage with the breks legitimate my mission is simple. to make you money. i'm here to level the playing field for all and i promise to help you find it. "mad money" starts now. hey, i'm krarm. welcome to "mad money." other people want to make friends. i'm just trying to save you money. my job not just to entertain. so call me at 1-800-743-cnbc or tweet me at jim krarm. there they were. the trucks. the truck frs the other
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stations, the conventional media lined up next to each other one by one. early morning on broad street next to the new york stock exchange. when i came to work. i've worked downtown for 33 years and i can tell you, you only see those tv trucks when there's already been a huge amount of panic. frankly, they are typically sign of a bottom after tremendous decline the day before. this time, they were ready because of the brexit, the vote by the uk to leave the european union. they were all set to cover the blood bath. just one problem. no one panicked. at least not what amounted to a very benign opening. we opened down 500 points. that lasted a second. a lot of my screen was green. just a few points worse than it was the day before when we believed that the british favored romania and the eu. why not? the britts have at least had one
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foot permanently with a separate currency. they don't trade the euro there and more autonomy than any other member. yet om that was hardly the case as we saw laettner the day when the dow plunged badly. 611 points. s&p plumeted 6.3%. nasdaq nose dived and folk, i think it's going to get uglier still. so, what gis in how the heck can our stock market be down more today than that of britten itse? it is kichbd ironic and astonishing. only a handful of american companies have any significant exposure in the uk, right? first, let's go over these downturns. we learn. don't want to be scared. want to be optimistic. this market hates surprises. all markets do and this one was a nasty surprise. i flew back from san francisco
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last night and before left, market seeming like it was going to build on yesterday's wildly positive session. the dow finished up 1.3% at the close. when i landed after 2:00 a.m., bank. the dow down 700 points. i had been traveling with my daughter. had a pretty good time. she saw i was agast about the results. i couldn't hide either my surprise or consternation and started fire iing aup memos. i knew we had to roll back the game from the day before, but we had barely had any kind of worry. we weren't scare d about this outcome leading up to yesterday, so you knew we had to drop another couple of percent in addition to giving back yesterday's gain and that's what happened. now, the media immediately seize on the obvious, okay, the ue. i think that's a big of a straw man. now that we've seen the impact in our faces, the pain that comes from the next exact, if there was even one which i doubt. you don't want to vote yourself
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out of the job, which might be the case in england. it's going to be remorse. then there's the issue of valuation. market was selling almost 20 times earnings and they aren't stellar. as woen from the companies that report alone. if you stick around, you'll hear some possibly juicy opportunities coming up in the game plan for next week after. i think it could run a course. third, one of the most bullish things about this market is that the super freaking strong doll r lar was done. last peek for the moment, which would allow u.s. companies with big businesses to report better earnings, but with europe in turmoil, pound falling a staggering 8% versus the dollar, george soros, the green back pks the only place to go. that's going to make it hard for the industrials, drugs and techs to beat the numbers. while there's plenty of money on the sidelines, more than 2009, because of a revulsion towards
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stocks, an event like this that bringing down all stocks is ng that country chaktly endear itself to those that want that come back in. brexit is hard to understand. so why take a chance and buy when the doomsayers are pronouncing this is the worst thing that's happened if r finance? you fill in the blank. when italy, spain, portugal, ireland were about to go bust, i think the european authorities stand by to make sure there's not systemic risk. some domino theory maybe. i don't know. you got another event though that makes the whole asset class of stocks suspect even though i suspect the central banks are more ready this time. now, where do i come down in i'm always thinking about the big pick which you recollect but it's a different big picture than others are staring at. there are the modern museum. i'm in the real estate stand. photography exhibit if you want to get clinical. i know this is a market of stocks, not a stock market. i know all stocks don't bottom
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at once. valuing stocks is about putting a price on the underlying company's future earnings fee. the price to earnings multiple or prk e multiple. we have to figure out what you're willing to pay for nose future earningings. every night i come out here and tell you i want to buy the stocks of high quality companies when they pull back because of a general market wide sell off. not because something happens at the company. so many of the food and packaged goods companies. i like the tech companies. domestic companies. that's one important way to look at it. even after today's pace, almost no stocks hit my buying rate because we were up so much going into today's nose dive. everything's still too expensive. not enough of a discount, not enough of a sale. i like to value toks by looking at the competition, the bond market. given when there's stress in the system when there was today, people rush in to safety. when they do that, they buy up
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bonds, so i look for stocks with great yields that are as attractive as a bond market equivalent. sadly like the gross stocks that i want at better price, i didn't see any dividend stocks that had come down to prices that made for comfortable bond equivalents and therefore, i thought it was time to pull the -- trigger. yep, because the decline wasn't that deep. bought nothing from my trust and one of the heaviest cash positions the trust has had. at least on a scale i find acceptable. despite my itching to put money to work on serious dislocation, i can tip myself knowing that monday is another day. and we're like lick to get an opportunity to buy some hire stocks even lower than where they went out at the end of this session. brand. >> hey, jim. thanks for putting on a great show every night.
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really appreciate it. due to the outcome of the brexit vote, and the potential for it along with other political factors, destabilizing europe and the broader global dmeconom if we made the mistake of not owning insurance or gold in our portfolios, do we add strong positions now and if so, how should we play it? >> i'm a believer in having insurance before the house burns down. if you get a pullback, i think you'd buy it. don't buy on the spike. we don't buy spikes on "mad money." mike. >> keep punching brexit boo-yah coming at you. >> i like the alliteration of that. how can i help? >> i have wells fargo in my retirement account. bought about 18 months ago. i want to buy. i think in the long-term, it's
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going benefit from this. >> i pulled up one of my heroes, the former ceo of wells fargo out in san francisco and i like wells, too. only yields 3.3. when it gets to 3.a%, you know what? probably buy a little more so get maybe 43. you're even better, but this is terrific domestic bank that's well run, down 15%. warren buffett's favorite. i am with you. suze in maryland sue san. >> hi, jim, i own some coca-cola cce and it has gone down 35%. should i hang on to it or get rid of it? >> 3.4% yield. no need to panic there. i think you're okay. obviously, when something says europe in the name, coca-cola european partners, people run away and are frightened. i say cooler heads will prepare veil, but i don't expect that stock to run away.
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listen, the values just aren't there yet. now, my game plan is coming up and i'll give you some things to key on there that might change my view and we have every angle covered for you in a cnbc spesh to want right after the show and i'll join you there as well. get you ready for the market. plenty of "mad money" ahead including thousand move forward after the brexit. my game plan's next. plus, all those red arrows today, maybe get stocks at a discount. not so fast. there's one stat i'm looking at that's making me a lot more cautious and shares of cisco collapsed today with the rest of the market. is that make sense? i got the ceo. we'll understand the real impact. so stick with cramer. >> don't miss a second of "mad money." follow at jim kram on twirt. have a question, tweet cramer. send jim an e-mail. or give us a call at
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1-800-743-cnbc. miss something? head to madmo. people talk about "deals" on their auto insurance. wouldn't a deal involve two parties discussing something? a little give? a little take? because last time you checked, your rate was just, whatever they say it is.
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even if you're today's
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vicious trashing, i think we're likely to go lower next week as people realize the brexit consequences might affect the numbers. i said it wouldn't be the end of the world if the uk votes to pull out of the european union in one part because they have one foot out the door and because it's a long and complicated process. sunday night at 8:00, we're doing a special here because we haven't had time to really sort through all the ramifications of this vote. ramifications that can explain like the declines we saw today in the stocks of the major european banks. what the heck going on there? some sort of credit risk lurking? something much worse than stock risk in is there a possibility that once one of these banks or all are on shakier ground? that's what i'm going to ponder on sunday's show. i'm focuseded on their financial
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institutions, not ours. i saw too many stocks that have done nothing but repeal gains. with that in mind, let he is eat into the game plan. on monday, i'm going to start hunt to find the ideal tech and health care stocks. ones that don't have a lot of european exposure and then entice you with some degree of safety. why wasn't today's pain now have sink the bear? i think many research analysts were caught by surprise here. brexit was last night and they're about to put pen to paper and revise down the earnings estimates of companies that do a lot of business. not just in the uk, where i anticipate a big slowdown, but in europe itself where the recent economic comeback could be at risk as there's a real possibility that the continent could roll back into yet another recession. if you're business person in europe, how can can you not be paralyzed after this decision if you're bull, hopefully will be remorse. or from the people in the uk who voted to leave given the chaos in the brexit's way. they have gotten to too low and some case, as low as 2009 and ma
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makes me uncomfort nl given how little cap they have. remember, this issue could reverberate again to our showers. high profile financials, even asia it shouldn't be the case, they are going to be calling these banks called for our banks now. let's not be glib. i am not worried about systemic risk here. our banks have never been stronger. the world will fwroe more slowly than it is now, but our companies will be ready for that. the united states will be the safe haven. i am worried about their banks and uk alone, barclays down. rbs is down 8%. both deutsche bank and credit suisse, 14%. so i suggest you watch these british and european banks because they're what matters now. maybe the sell off is more panic. it will be the sign it's safe to get back in the water. we know from the big sovereign
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debt crisis a few years ago, will ensure the safety of europe's financial system by any means necessary and however takes over from david cameron in the uk will have every incentive to keep the british financial system from collapsing, otherwise, they'll be out of office. tuesday's is day i'm worried about. if stocks aren't down a lot op monday because we get two stocks that have deep ties. necky and carnal's earnings. the former's been trug ling. latter's got exposure to europe and perhaps, the zika virus. i'm not eager at these prices to buy either one. even as finish line plu out the doors today and the stock soared on some amazing nike related earnings. wednesday, hey, great, she talks and wouldn't it be terrific to hear from the fed chief about what brexit means for america and the world. by the way, wow, what a bullet we dodged given that yellen chose not to run through a rate
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hike last week. one of the big key reactions today came from the stock of general mills. my favorites. one of my go tos in times of turmoil. this is what both eed me about so many stocks. this darn thing was only down 63 crepts. reports on wednesday, confident they'll be fine. it would have been terrific gotten a selloff because then, a buying opportunity. witness how campbell's soup, stocks have been rallying. also hear from santa. i want to know the state of its potential takeover talks with buyer. this is in play for certain, but this is the kind of transaction that may not happen because buyers a german company and this brexit vote could put a lot on hold. thursday intrigues me. all four i'm thinking about buying into weakness or r recommending to you. first, there's conagra.
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having a huge turn u around in a food company that can bolster its growth. i want to know how those two divisions are doing. i like them both. there's some hidden value here. then there's consolation brands, one of the few stocks i like that took it on the chin today. the company that owns the u.s. rights is richly valued, but it can be an opportunity given its domestic street. it's always wine and tequila and while they're not growing as fast as beer, they're pretty darn hot. mccormick's another one i hoped would come in soon. you're talking about thing that is people yus, they're on your desk forf. now, nothing like spices when it comes to consistency regardless of the post prex it madness. then there's the parent of olive garden. had a really good salad with my daughter. took off on an excellent quarter with a definitive turn. i think this entirely domestic
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company goes down at a level where they yield more than the current 3%. not as much of a trampoline, then that one would pock become attractive. finally friday, we get a read on the u.s. economy where we hear the ism man fufacturing number. i'm concerned we're going to see a slowdown in manufacturing if we get close to dollar and brexit. the one thing we're not, so here's the bottom line. when i look at the game plan, i know that the real worry here is from overseas and i hope beget a better read about how brad brexit is for the global economy and for ours. until they stabilize, we need to be vigilant and do a lot more watch iing and a lot less buyin. more "mad money" ahead including a troublesome sign on the street. i'll clue you in and tell you which stocks i'm worried about the most, plus, i've got the exclusive with cisco's ceo. there was major news lost in the europe o focused headlines for
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heaven's sake and red hat reporting this weekend, i'm going to talk to this ceo. stick with cramer. stick with cramer. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever.
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you watch the show regularly then you know me by now. i'm a calculated risk dip buyer. willing to pick up some stocks in the weakness and even make the stand now and then. so why not be aggressive right here after this big down 600 day in i'll tell you why. the earning. specifically, the most recent week we had, this very week, i would only get worse post brexit. bad enough we had to undo the rally that occurred over the s past week. stock even before the vote, it's been disconcerting to say the least. think about this. this speaks disappointments
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alone. lennar, the second buildest homebuilder. fedex, the big e rate. warner, giant trucking company. bed bath and beyond, the railroad, the best of the best technology cal systems and red hat as well as adobe. two fast growing clould related companies. all somehow disappointed investo investors. that's a pretty nasty thing. numbers from all sorts of industries in some cases with some very ugly read throughs. we've got negative pin action galore. from these. if car max misses, that's a sign that the rediz yul value of cars isn't that robust. if you're ford and gm, especially with ford having a big presence in the uk, the biggest of the nationals. i market's concerneded.
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look out, peek home building. with trouble oversea, i'd like to hide the domestic retailer stock with bed, bad and beyond gave you a very unsettling view. combine that with the early departure of terry lundgren from macy's and the retail from brexit. the economy was sluggish, their word, not mine. i don't want to freak you out about fedex. the people were down, the strength of e commerce, which was thought to be robust going in. brexit really does make fedex a less attractive equity. sometimes, stocks create their own negativity because they run too much and i think that's whey accenture and adobe really
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plumeted, but neither set the world on fire. we're used to both putting up amazing numbers. it didn't do that. brexit's just a further damage. my bottom line, wow, housing, auto, tech, transport, retail. all worse than expected before brexit. that and not the possible disillusion of the european union, is what makes me circumspect than usual i would add, when it comes to picking at the opportunities presented by this particular nasty sell off. steven in new york. >> hey, jim, interesting day today. gl i felt that way. that's up. ? >> calling about nike. an iconic american company with brand recognition all over the world. it's a machine with very little debt. we have the summer olympics coming up. highlight nike. also, how do you feel brexit affects your opinion of the company. >> international has got something we worry about after
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brexit, so pay less for the earnings. finish line marked a remarkable quarter today. but no, mike does not intrigue me at this level. all of the things you said are true. because i believe that you could cut numbers nike on monday because of currency issues involving brexit. mitchell in tennessee. mitchell. >> how you doing, jim? >> well. how about you? >> i'm good. so, i'm looking at investing in anadarko for about three to five year, but i was wondering if i should be concerned about brexit or if that's just something short-term. >> yeah, brexit made the dollar get stronger which then drove the price of oil down. and i've got to tell you, that hurt all the oils. i don't like the three to five-year prospect. this said, i think anadarko represents an attractive opportunity on earnings basis and ultimately, on a takeover basis, so i'm not going to fight you, but remember, oil, 45, 50, 45, 50, that's our new range and we seem to be headed toward the
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lower end of it. the worst news this week, it may not have been the british exit from the eu. it was the disappointing earnings from housing, auto, tech, transports and retail that make it difficult to look for opportunities. still more "mad money" ahead including what to do with cisco, a big trade ruling came down last night. has the brexit selling a good opportunity here? don't miss my cloouf with the ceo. plus, red hat made a big acquisition. i'm getting a whole story from the ceo and today was really one of the top ten worst days of the dow ever. i'm answering all the calls and questions you've got about your money in twitter, on twitter and the lightning round, so stick with cramer. with cramer.
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after today's brutal brexit inspired beating, what kind of stocks should you be able to look out for and i think will be next week make no mistake about it. likely in for multiday sell off here. how about a cheap tech stock
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with a big dividend like cisco in chuck robbins has been transforming cisco like the interthet of things and these efforts are now bearing fruit. given us a nice scheme. just witnesseded the company's latest quarter. the terrific beat and raise. look t how they've been using their monostore cash hoard. make a series of cloud and internet related ak wii sagss and cisco announced a new data center at the beginning of month, we learned that the partnering with ibm to provide customers with an internet of things. cisco just won a gigantic lawsuit against wrist of net wo works yesterday. with its 3.7% yield, i think cisco's the kind of stock that only gets more attractive which is good. let's take a closer look with chuck robbins, the ceo of cisco.
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welcome back to "mad money." >> hey, jim. it's great to be here. your energy level's pretty high giveren the week you've had. >> the fact i sat next to his fantastic fco this week in a very nice gatheringing. your stock down, 5% today and maybe people are say iing that u do have the lot of europe exposure and some would say maybe as much 25%, less. tis that an overreaction? >> well, jim, the uk itself represents mid single digits for us from a business perspective. we obviously are committed to the uk and other countries in europe from dinlgtization perspective. our focus is on the things we can control and we deal with lots of macro economic issues, gee geo political dynamics.
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these are just this things we have to deal with. our focus is on what we can control. much like the tet ration loss you talkeded about. gl i want to talk thabt because to me, the old cig ko, also concerned, we'll get to that. this is a kind of a soup to nuts modern plan to modern data centers that i would think a lot of your customers would just want to have because they don't have it right now. >> well, jim our innovation strategy has evolved and we have created these small internal start ups an this team was the first of some announcement that you'll see over the coming months and leveraging the n network, which has the ability to see everything and providing insights to our customers inside their data centers is something they haven't had before and then leverages that to deliver cloud based policy and management and security is is something that our customer rs all pretty excited about and it's a great example of what we can drive from an innovation perspective
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internal to cisco. >> this is the new cisco that i like very much, but let me ask you about something meg whitman said to me. she goes, if you look at our networking business r it grew 18%. cisco's shrunk three. basically saying she's taking on a great deal of share from you and this is very important business. what do you think about her analysis? >> well, i think jim that it's easy to get excited about any given quarter. we're focused on the long-term, we're focused on how are customers today are lookinging at technology as a fundamental change agent for their business strategy and how in order to take advantage of that, they are going to need an end to end network architecture that exposes these an lit ibs, that provides security on an end to end basis, so i believe for the long-term, our cust customers are looking to cisco as we have a history of helping them build
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out full solutions. we understand what's happen wg the internet of things, we can deploy security like nobody else, which is indicative of the results we've seen in that portfolio, so i'm confident about where we are, jim. >> yesterday, i was reading a note put out by general council. this effort lawsuit and that company lost about 700, lost a huge amount of market cap. i think in part that's because it did make it sound like general caps sounded like a risk better be very careful selling certain kinds of products that are found to enfridge. anything material, your sales people being able to make different kinds of sales calls? >> well, jim, our objective with this was simply to protect our intellectual property, which is an enabler of our ability to innovate and having the financial where with all to continue to spend the $5.5 billion we spend on innovation, so we're pleased with the outcome and i think our
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customers recognize they want to work with companies that are truly driving and investing for innovation, that they can use going forward and so i think customers will see that's coming from us and they appreciate what we do for them and they acknowledge that we have an incredibly strategic role to play not only in data center, but again, across the entire infrastructure and how that is manifested through cloud and analytics and security in the future. >> you have been very good and you talked about your internal group that's developed thing, xwrouf been good at picking off companies that have had a hard time trying to come publicly. seems like years ago, but are there still opportunities? that seems like a very small window and once again, today's action might have closed again. >> the beauty of our model is that we have different levers for dealing with market transitions entering new markets and driving innovation, so we have our own internal rnd
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capability. we have the ability to partner. this tra teenlgic partnership with an a l. with ericson and inspur and then the third is our ability to do m&a. we've aquared 14 companies since i was named at ceo and we'll continue to use a combination of all those and as you know as valuations become more attractive, then there's probably going to be more and more activity in that space. >> last question, you're a pretty open guy and you run a hands on outfit. will you do conference call which i know you guys are better than anybody else, worldwide or with europe over the weekend? some game plan, here's what we're going to do. buy back this, do this and be ready. some sort of explainer to your employees beginning say sunday night or monday. >> well, jim, that's already occurred, actually, inside. we do a really good job of building contingency plans for different scenario inclusive of the brexit vote this week as well as the ruling that we were
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expecting from the itc. and so, we have already communicated with our teams. we were on the phones early this morning ensuring our teams knew they had our full support and obviously, again, you know, our commitment to the uk and our commitment to other countries where we have dinlgtization efforts underway like india, france, germany, that's where we're going to continue to focus and we're excited about opportunity. >> thank you so much. very busy day, chuck, for coming on. appreciate it. good to see you, sir. >> thanks, jim. >> absolutely. chuck robbins, ceo of cisco, down 5%. stay with me. stay with me.
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it is time. the lightning round. the light inning round. start with sharon in ohio. sharon? >> this is sharon in the stock that i want to know about is
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monster beverage. >> man, monster beverage had a really good quarter. but they have a big business in europe, so people are going to freak out. either 150 is getting interesting. not yet though. zack in north carolina. zack. >> cramer, boo-yah. >> boo-yah. >> hey, pharmaceuticals, alny. >> the stock, poor speculation, but it's very low. i got to tell you, no. no. you're goung to lose money i believe in that stock. yus got away with a little bit. go to yermny and indiana. jeremy. >> hey, cramer thanks for having me on the show. want to get your opinion on oaf. buy, sell or hold. >> it's in the -- not going to go. go to doug in texas.
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dou doug. >> i'm up 48%, but the merger doesn't look like it's going to go. fell in a hole. >> on o that merger, i think is dead on arrival. i do believe however this is a stock that you want to own. now my favorite in that group is yubt united health. go to aroon. >> how are you doing? >> doing good, how about you in. >> doing well. i myself bnb, merge to energy. >> able to sell, tell people g tote out of that. but you know what? oil's done going down big. i think that you should sell half. let the rest run. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. d by. what are you working on? let me show you. okay.
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all right, this has been a wild day as the markets dieiest or at least try to digest the historic brexit vote and down 600 points, we need to figure out what's worth picking at. that's what i want to take a closer look at head hat. open source operating systems for the enterprise. storage software and a growing cloud business, all the hot bun button tons that everybody needs. on wednesday at the close f of the market wasn't impressed. stocks says .7% yesterday.
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another dpe cline, today's brexit. what did red hat do wrong? share up 18%. revenue came in higher than expected. brought in a record amount of new businesses. 45 deals, however, red hat ever so slightly, four year earnings forecast. consider this company has developed a track record of developing beat and raised quarters. so let's check in with jim, the president and krrk eo red hat. mr. whiter, welcome back to "mad money." >> great to be back on. i hope you're well. >> thank you, hope the same. before we get into brexit because we have to, i just want to clarify something. you know and i know and you've taught me that we want to look at how the billings are because that's the future of red hat and your billings accelerated to 16%. that's the key metric i look at. am i still on base with that? >> yeah, i think you're on base
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with it, jim, as we've talked about, there is some volatility in billings. i even prefer short-term, which was a nice acceleration year after year. >> guide up, guide down, doesn't mean so much to me. you've got a really interesting thing going here. one of the banks, i watched very closely is bbda. you signed a strategic clap ration with them, this is a madrid based bank and i figured this is the kind of thing that some might say, wait a second, red hat has a business in europe, we should be worried about it. give us a real life example of what you u might have told people and think about like a bbva situation to make it all come to life. >> well, sure. so red hat is known for providing cloud and kind of next generation i.t. solutions for intersurprises around the world, about 25% of our businesses in europe.
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and so for a kane lix bb vrk a, we announced we'll partner together going forward adds they look to replace their system, they want to have a partner to hem them do that. everything from the core banking system to their cloud offerings to their customers and they're looking for partners tad it and you know in the old world, that used to be the iw brk ms and other three letter initials. today, it's companies like red hat that can offer the solutions and dra matly clowe ely hat that can offer the solutions and dra matly clowe el lower co. in terms of europe, we'll watch what happens. we do well in down markets. we don't think we're in a situation like that, but because our solutions are so high valued, relative to alternatives, down market rs pretty good for us. you save customers money, so bbva or any bank wants to be able to save money, they bring
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in red hat. >> exactly. replace those big legacy solutions. that's literallily. >> we got to tackle three scale. a leading provider of president clinton programming interface. use api throughout this. what does this offer a customer that you didn't have and what's the rall proposition? >> well, so red hat offers a lot of application infrastructure, so a developer is writing an application, we provide most of the infrastructure they need to do that in a traditional large prize. as the world's changing and people are using companies like word force, these are companies that offer their software as a service and now, you want to pull data out of your crm system, how do you get it. the way you do it is an api.
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it basically specify fis how do i get my day to p put into a mobile application i want to offer to customer. that's done through apis, so rather than have to hand code every time you want to go to workday for this one or box or sales force, you say how do i have a way to do that in a managed way so i can securely get to all the apis that make sense for my developers and that's what this software does. it offers a way to manage those apis. or the once you're offering out to your own customers. for a next generation developer, it helps make their life easier and red hat as a leading infrastructure, software provider, it's really a function we need to offer to developers. gl one last question. i find it interest, everybody seems to partner with everybody now. microsoft and you.
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you've been trying to vis rate them since you became public. you guys like break bread and say now, we're partners? zwl pretty much happened that way. our customers want to run on assure. they don't want to run on because amazon's a competitor. they said look, we've got to be able to run the red hat stack, but we've got to be able to run on a cloud other than amazon. they really forced us together. i've had a meeting in adele la's office and i did still a couple of microsoft pens because when ever is the ceo of red hot in microsoft's office. >> sunday night, will you have a meeting with your staff? red hat, brexit. froms. >> well, look, i think we have a
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lot to -- i'm going to guess this is going to explode capital spending and that's going to include some i.t. spending. not just in europe, but kind of globally as people wait and see how this settles out. so, for us, what that means is in good time, we set sit here and think about innovation and more difficult time, we sell a value proposition of lower cost, we provide lower value. we may tweak our messaging to our customers a little bit from the innovate and grow to the costs messages. and either way, i feel good about our business for the year. you know, again, we were surprised at the result, we still felt great about the business. we didn't take up guidance, we still feel good about it post brexit vote. >> excellent. president and ceo of red hat. great to talk with you. >> great to chat you. >> slowing capital spending. going to be a theme.
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have to get used to it. president and ceo of red hat made us a lot of money. stay with us. stay with us. . and the launch crew met for a moment of reflection. before any of this, cdw orchestrated a collaboration solution using pcs with intel 6th gen core vpro processors. collaboration by intel. orchestration by cdw. hey, honey? yes, dear? you're washing that baked-on alfredo by hand, right? (loudly) yes, dear. dish issues? cascade platinum powers through... your toughest stuck-on food... so let your dishwasher be the dishwasher. this turned out great. cascade. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions.
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i know you guys count on this show for information and insikt. on days like today, i count on you to guide me with your questions. i'm here to help and as always, we will get through this together. so now, we save some extra time to get to the concerns. let's take some tweets. first x we have one from trader jake. he wants to know your opinion, brexit's impact in european in usa this summer. many businesses depend on them, especially florida. florida's got zika, but there will be less and that's why the airlines were hit worse than any other dproup today. up next, a tweet, who asks i moved my 401(k) balance from index funds to a stable value fund before the brexit vote. do i move it back or wait a
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while? you're absolutely fine. i like your decision and i think that's one that a lot of reviewers should be think iing about and learning from. thank you. up next is a tweet from mike 4i 72. call me crazy, but once something like a netflix bounced back in a brexit environment, if you want to do that bounceback, you should do amazon because that's the fastest growth and i don't believe it will slow down. netflix has it own issues right now. a tweet from paul who wrote with brexit developing the market, do i buy the drop today or wait for it to drop more next week. more specific sign, not all stocks bottom at once. it's going to be a roving bottom just like we've got the roving bear market, but first, the european markets have to go down before you think about opportunity. here's a tweet from -- who is asking now that britain left, remember that just leaving, can any u.s. stocks have long-term
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benefits to recommend to a young investor hash tag brexit. not on the basis of this. no, there is nothing that i see that makes me want to invest specifically off brexit. now, a tweet, you know what, i think instead, we ought to stay tund because next is a cnbc special. brexit, facing the fallout. our coverage rolls out with kelly evans and bill griffeth at the new york stock exchange and what a job they're doing in london. i'll be joining them later. as well, some additional insight on the week ahead and i'll be here sunday night to give you insikt before monday's opening bell. i do think we are going to get a better chance to buy stocks in monday morning. i want dwrou keep your bat on the shoulder until i get a sense that europe's stabilized. always a bull market somewhere and i promise to find it for you on "mad money." i'm jim cramer, see you next time. time.
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the uk has voted to leave the european union. >> the world stunned. >> i think it will have a huge ripple effect around the world. >> british prime minister david cameron resigning. >> i think the country requires fresh leadership to take it in this direction. >> the british pound to historic lows. u.s. stocks tumbling. >> investors pulling a lot of money out of stocks and moving them to u.s. treasuries. >> the dow going out with a decline of 609 points. that's pretty much right at the lows today. >> we are here tonight to explain the global impact as the uk leaves the eu


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