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tv   Mad Money  CNBC  May 11, 2022 6:00pm-7:00pm EDT

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dividend >> brian kelly. >> for me, on down days like this, i look at my screen and what's green exxonmobil was green today the refining margin should be pretty good still. >> all right, thank you for watching "fast money." see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now "mad money" with jim cramer starts right now. 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 cramer. welcome to "mad money. want to make friends, i'm trying to help you save money my job is not just to entertain but educate and put days like this in context. call me at 1-800-743-cnbc or tweet me @jimcramer. the fed is at war with inflation
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and they didn't exactly win the battle with today's consumer price index this morning we got another overheated cpi, not as bad as last month but too elevated talk about the fed winning or fight against inflation the fight to tamp down spending, allowing overstretched supply chains to play catch up, ease something of the strain of the labor market and, of course, make it so it doesn't cost so much for dinner. there's at least one front in this war where jay powell does keep winning and it's one that you and i don't want to hear it's one that is driving us crazy. he's winning the fight against the stock market. [ applause ] >> or remember the stock market is an amazing source of funds to buy things, raise kids, retire with them, take vacations, and it's all being obliterated right before our eyes. once again, the dow lost 327 points, the s&p toppled 1.65%,
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f nasdaq plunged 3.18%. it just kept dripping and dripping and dripping. plus, we had more large cap disappointments this evening it's not letting up. and it is, as the late jackie gleason would say a revolting development. these are just big averages. it's more obvious when you look at the collapse of the ipo market and see the stocks and the russell 1,000 which contains the thousand largest pubically craded companies we're witnessing the most extreme wealth destruction since the dotcom bust in 2000 or maybe 2008/2009. i want to put this moment in perspective and asked cnbc's statistician to come up with a list of the worst performers in the russell 1,000 since the fed took away the punch bowl and that was done last november. some of these havegot son smal i normally hesitate to put them on air, but i think it's important to highlight the because i want you to get the complete picture so let's start out with the biggest loser and that's a company called carvana
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the digital used car retailer. for years i loved carvana's business model it got too expensive i told them you have to sell last summer. carvana had come down last november, now at 30, after doing an offering at 80 not long ago, enough to raise money to stay in business the 89% decline is accompanied by the layoffs we learned of 2500 people. get used to hearing these numbers, people. i think they will loom larger after the fed's next rate hike or two number two is upstart. at 205 last november now at 28, down 86 we had this ai power last night, it was somewhat contentious, how well they've been growing, but because of the business model hurt by soaring interest rates i was hoping upstart would be a lone facilitator, a platform, rather than a lender i thought they had what i called an asset light model not anymore. i begged them to get the loans off their books but they seemed sanguine about this part of the
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business like many i had high hopes one time for skilz you can see it skillz, a mobile gaming company that hosts e-sports concepts i was wrong or in the par lens of cathie wood, early. skillz lost 85% of its value since november that's because the company tried to give us what we've been asking for, profitable growth, but it's nowhere near break even so it can't do it. skillz is hemorrhaging money the beauty of skillz you can wager on other people's video games while playing at home. the ugly of skillz is we're not stuck at home anymore. it was a pandemic play call. number 4 is unity software we have them on the show tonight. it makes tools for game developers and the metaverse the stock was doing fabulously but then apple put through some privacy rules, clobbered their mobile business and they also had a self-inflicted error, engineer error, when your stock goes from 177 to 30, that's an
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83% decline, that is serious wealth destruction for many people in other words, if you had a sizable nogs unity you're less likely to buy a new car or take a vacation to italy. unity is a real company to turn a profit in the not too distant future anything connected to the game is in the doghouse rivian was supposed to be the best manufacturer, tens of thousands of electric delivery trucks, the kind of truck amazon needs, even ford had a stake in it too watched the stock go to 118 to under 30, then ford sold 8 million shares over the weekend, putting more pressure on the stock and rivian is at 21. the board was right to get out they still have tons left. the bag got worse. that's the story of the market the numbers were terrible. tusimpl, another one too simple, cool self-driving truck technology the stock from 37 in november to $7 today that's a pathetic 81% decline.
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and what do we have to show for beats me how do you not like an energy play like fluns energy you don't like it if you bought the stock at 36 in november because you got stuck with a $7 piece of paper go health had been annihilated in november when at 3.60, now 76 cents. this is a health insurance marketplace and i think it's a victim of volume the brokerage firms pumped out too many health care ipos to fit the covid theme. can't say too much because it's too small. nine, wayfair, online furniture retailer, consummate pandemic play, struggling as the world goes back to normal. recent quarter was terrible. stock plunged from 258 to 52 i honestly don't know what to do with this company than sell it i can't figure out what could help them be turned around before the pandemic, wayfair looked broken. i think it looks broken again. number 10, i never liked n
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novavacs i figured they would have a run against covid even as they told us they were at the head of the pack people believed them now the believers have vanished which is why it's come down to 42 i think it has more downside given it was in the single digits for ages for the pandemic number 11 is fastly, had such promise because of it had the best internet technology to host clients but the business slowed, had a bad outage, fallen from 41 to 10, down 75%. maybe it can be taken over i don't have a reason. finally let's not forget about netflix fallen from 659 in november to 166 today. you could argue it's gotten cheaper. we don't know if the business will keep the rating too much competition these beaten down stocks could be bought by m&a they could potentially innovate out of this dilemma. what i care about is all this wealth destruction makes those
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stocks the trump cards in jay powell's war against inflation the losses in these names represent the extra vacation, the new, fancy dinner, staircase, kitchen remodel, the bath remodel, night clothes. now they're going to be stocks, the losses slow the economy. this is a rose gallery of losers expanding every day. tonight when one of my favorites dutch bros took my breath away miserable, same with almost a all the ipos and spacs they're in the fight against inflation for who knows. i haven't talked about systemic living in a long time, but when you look at what's going on with stable coin, all right, i see why a lot of people want to get out. sadly, for our portfolio, including my travel trust, things aren't working. i get that it's ugly. it's painful but the bottom line is, it's exactly what the fed needs and so one more day where a government inflation figure is just too darn hot. one day this will end and we will look back and find even on
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this list some great bargains. but right now, you can pick at losers and be patient for the most part though, patience is decidedly in this business not a virtue. let's go to betsy in california. >> caller: jim, there is one way that patience is a virtue, and that is, if you read cramer's books and you figured out that there's always a bull market somewhere. >> well, thank you so much >> caller: what is the opposite side of apple? you know what it is? >> no. >> caller: it's hershey. because -- because apple has lost 17 whatever and hershey is up 17%. >> hershey is up, betsy, because there's a person by the name of michelle buff who runs it and i had the privilege of pulling up with her she is so smart. she totally understood what this company needed to do and we should be grateful she's there
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running that company and thank you for the kind words i'm doing my best. these are trying days. my 18th year of trying to do this, trying to keep things together it's not easy, but we will figure it out together we always have and we always will michael in delaware, michael >> caller: jim, how is it going? >> all right how are you? >> caller: had better starts to the year, let me you. >> all right. >> caller: i'm calling about bosch health i've seen companies get cut in half this week i can give you two dozen of them this one is another one. what should i do with it around the $10 mark >> i don't usually like to make these charges, i think it's being manipulated down i almost never make that charge but no reason for this stock to be where it is it is kind of insane there is no way that parents should be this much smaller than the sub. no way this company doing -- maybe like a 2 to 4% difference in what people thought my travel trust is stick big it.
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you can say so what, jim, your travel trust owns things like apple, isn't that horrible i've owned apple for 15 years. blow it all out because of a couple bads day. >> that's not how i play it. it's ugly and painful and what fed needs and one more day where a government inflation number is just too hot and that's what's going to happen because good news is bad right now. on "mad money" tonight, unity plummeted on weak revenue guidance, even though it's a very good company. are investors getting a buying opportunity or is it too late? i'm checking with the ceo. talking chips with recent dip with global foundry ceo, the most successful foundry in our company. roadblocks hit a new roadblock the dramatic time its time has come let's sit down with the level-headed ceo and find out what to do with the company. $3 billion in cash and a heck of a lot of cash flow stay with cramer.
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don't miss a second of "mad money" follow @jimcramer on twitter v a question, tweet cramer, #madtweets send an e-mail to madmoney @cnbc or give us cl 8074cnbc. at miss something head to what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot cvs. healthier happens together.
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if you're looking at a stock down 60, 70% from november highs and how much lower it can go, the answer isn't too lower people are so unhappy right now. i know that. you are, i am. former high flyers report good numbers nobody cares when they disappoint, look out below. this just happened to unity soft
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software, an amazing company makes tools for video game developers last night these guys reported an in line quarter, but imagine the cut of the full-year forecast but they gave you interesting and important reason why this happened and the stock plunged nearly $18 37%. w what sfwlong they've been hit by apple's privacy restrictions on targeted advertising the company developed its own ad tracking tool in response but there was a serious engineering error that meant the targeting wasn't good. they fixed the problem but it will take a couple quarters to get past the damage. what do we do now? unity has come down 85%. this is a great company. hard to call the stock cheap it's not expected to turn a profit until 2026. we need to get our heads around what happened here let's talk to john riccitiello, the executive chairman and ceo of unity software to walk us through what happened. welcome back to "mad money." >> hey, jim.
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great to be back thanks for having me. >> john -- >> i'm sorry, go ahead >> you want nodeto walk throught or ask questions. >> you and have been at this a long time. this business has been through every cycle and always comes out on top and i want you to remind people that, because when they buy the stock now, they may think that this is a business that's ending. it's never been like that. >> well look, so look, it's really interesting times and i would make a couple points. after multiple 40% quarter, we reported top of guidance, 36% quarter, but brought our guidance down. you know what that's about is, self-inflicted wound we did some things on the advertising side of the business that reduced the accuracy of our models it's going to take us a couple quarters to fix and we're going to have slower growth for a couple quarters while we fix
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that you know, i hate reporting self-inflicted wounds but that's what we got. second point is our create side of the business is the heart of the company. we reported 65% growth in the first quarter with prognosis for continued gains as we're winning in gaming and winning with artists, we're winning with vertical outside of gaming with lockhead and mercedes-benz and people in the solar industry and architecture and construction. it's actually quite amazing, and, of course, that incredible story gets washed out a little bit when you've got a self-inflicted wound the last point i would put on all of this is that, look, we know our stock was a lot higher nine months ago at the very peak of the market, and my sense is we probably had about 10% too much in spending in our business as a consequence of sort of the
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euphoria that goes with that one of the things we started to realize we have this, you know, short-term challenge, is we brought our spending down by about $100 million in our plan compared our plan. what that allows us to do is bring profitability from future years into this year at the end of this year q4 we expect to be profitable. so we do that because we think being a little leaner and a little more focused will make us stronger for the long term we still think that we've got years and years of better than 30% growth in front of us on the basis of this huge tidal wave of interest and things that are real time 3d and we think there's nothing stopping that. i've never seen this much demand speed bump, we have to get around it and fix it the first step to doing that is owning up to it which we've done and got most of it behind us and get the rest of it out and get back on the track. >> how are we doing, ad supported? how are we doing with the apple privacy? is that something you think you
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can come to terms with and do well enough for your customers >> yeah. that's largely digested. >> okay. >> so that's not really the issue. what happened here for us is, that was baked in to our guidance this year. >> right. >> what happened this year is we made, you know, steps around our platform which is very data centric, and it resulted in a slowdown on lesser performance the issues are fixed now we have to rebuild the data and get back on track. we expect that will impact q2 and q3 and back on track in with q4 with a monetization part of the business the rest of the business is cooking and we see win after win after win, and i can't tell you how much excitement is, you know, exists for that side of the wise it did feel you're a combination of the great things that jensen wong is doing at nvidia to the industrial and digital twin and for the things that mark zuckerberg is going to be doing for meta in that you
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can do either side of it and that there's demand from both sides is extraordinary. >> it is but although, i tell you, one of the things i like about jensen, he didn't use the word metaverse. he called it omniers have. an nvidia centric offer and we're talking about real-time. hundreds of companies, 3,000 customers, tools outside of gaming and what they're trying to say is the next version of the internet is 3d, real-time a lot more personal, much richer and better experience. my guess is every website in the world, 90% of themwill be on real-time 3d by the end of the decade go back to 2000 the last time we had a crash this severe, the internet was in question it's not now >> right. >> everyone has a website. same time frame here, five, seven years. everyone will have a real-time treaty and we'll power that. i shy away from met sa at thatters have as a term -- metaverse because it's
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misunderstood. >> good point. >> i'm tired of that we're focused on who we do best, and we deliver a monetization and operations platform for companies that build in real time 3d and most of them are coming to us. >> i want to leave it on one note everyone will see this, the avatar 2 and your role in after s -- avatar talk about what role you played? >> first up let me be clear, james cameron is a genius and has very high standards and the way they get to their special effects, that incredible look, is with a great group of people at peter jackson's company and the tools they use to create those visual effects are the digital tools that come from unity. we own those amazing team their trailer came out on may 6th. those out there in tv land if you haven't seen it, this is what you can do with unity it is amazing. >> you know what, that's what we're going to do because you're
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not buying the stock at a price i think after you get everything right by fourth quarter you will say why was i waiting. the answer you're probably worried about 3 down or 30 up. john riccitiello has been successful at everything he's done ceo of unity software. letter u thank you so much, john. >> thank you, jim. >> "mad money" is back after the break. coming up, when the chips are down, are there still profits to be found? cramer gets a global view next.
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at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. late last year i started warning you away from every new ipo. decent call with one exception global foundry, one of the largest semiconductor manufactures we've got a worldwide chip shortage that could last for years. fast forward six months and
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nearly everything from the class of 2021 is down, down big, while global foundry is basically flat in the market like this, flat represents real out performance. last night global foundry reported what i thought was an excellent quarter, 24 cent basis strong sales, huge gross margins not to mention strong guidance for the quarter. the stock didn't get much credit bad market, okay all things tech. this finished down 7%. that's par for cothe course thee days i think it's a buying opportunity. dr. tom caulfield president and ceo of global foundry joins us as our first in studio guest in more than two years. welcome back to "mad money." have a seat. >> really honored to be here. >> i'm so glad you're here start right from the beginning you have a fantastic business. tell people how sold out you are? >> i think we're sold out 2022 and 2023 as we're adding
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capacity as fast as we can make investment. >> as you do it, you are also a beacon because you're, although not necessarily controlled by an american company, you are in america. when we read about flyovers in taiwan semi and think we don't make anything here you make things here. >> we make things here we're a u.s. manufacturer and we have facilities in germany and singapore and i think that's a little bit of the heart of what you're seeing today. look how many businesses are suffering from supply chain woes a lot of that has been the practices over the last two decades where driving efficiency and cost has created a lot of single points of failure the nature of gs is about supply chain balance. >> right. >> we operate on three cont flentss therefore have three supply chains and offer that flexibility to our customers i think we're going to see more of that. some of the shift in supply chain management to be a little bit more balanced. i think that's a real opportunity for gs. >> if i go to any one of your
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fou foundries. >> 3675 days -- 365 days a year. running white hot. over the stated capacity we try to do everything to get everything out we can for our dmers dire need for our capacity. >> you have spoken to me and taught me about the concept of the full feature semi, in other words not the semi that goes into the high performance computing, but the ones slowing down american manufacturing. >> yeah. we call this feature, think about a secure pay transaction that requires embedded memory. we make that technology. think about your mobile device connecting to a cell tower to transmit voice and data. we make the chips in those front-end modulars we're at the center of the transition to 5g technology. that's what we call feature rich it represents 75% of the semiconductor market in over the last decade a lot of under investment with a bigger focus
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on the high-speed digital computing you talk about that's where we're trying to catch up to now. how do we make rationale investments to get the supply/demand. >> terrific ford maverick, i just love it small ford bed perfect for me they were held up by semiconductors if i were running ford i would call tom caulfield and say, what do you need? how about a five-year agreement for chips. can we do something like that? >> first of all i have a ford maverick too it'sgreat car. >> it's the greatest area blue 51. >> i should have got that. my son talked me out of that let's talk about it in both tactically and strategically tactically we're doing the best we can to allocate, but i don't think you'll hear much about gfb right now. we're not the only semiconductor company that makes trips chips for automotives. it's important how the auto industry is setting themselves up for the future. first, we're adding capacity and a lot of that is focused on the
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auto market. >> good. >> the second part is, automakers are now thinking deeper into their supply chain and they're talking to companies like gf to make sure that capacity that we put on is put on for them. >> they should have been doing that years ago they should have been dealing with you directly. they should have been saying listen, just in time i'll call you when i need you. >> i'm not going to comment how they should or shouldn't have. took about my opening comment, there will be a better balance in how supply chain chains are thought through. you see the economic damage it can do to a business without having supply. it certainly out weighs over time that damage and the cost you get in a tactical shortsighted -- >> we have the chips we want i look at you and say this man is spending millions of dollars -- >> billions. >> billions of dollars and the other guys want it to be from the government. how do you rationalize the situation where you're out there spending your shareholders money doing the right thing. other people just want the
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government to pay for everything >> let me take that apart a little bit what is the problem we're trying to solve today, we have a half a trillion semiconductor industry 50% of that demand is generated through u.s. headquartered companies, but only 12% is manufactured in the u.s. >> that's terrible. >> why other nations have policies that promote manufacturing in the regions because they view it as critical to their economy, their sovereign security the u.s. now sees that they need policies that will make manufacturing in the u.s. globally competitive that's the chip space. gf is ready to do its part we'll expand our facilities when that chips bill is funded, a catalyst for us to make further investments in the u.s we're spending over a billion dollars in the u.s. as we speak to add capacity to our most advanced facility in upstate new york. >> i want to end on this because, i mean, you have a story to tell. you're sold out to the end
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of '23 everybody want these chips you're willing to help out our great country in building more in order to make us more shift independent. >> thank you >> why not why not? all hair ear about is gloomy pee that's not my dna. i see someone like you doing the right thing and want to congratulate you for running 24/7 for all the people you got running 24/7 and for what you want to do to make our country -- used to be energy safe i want us to be semiconductor safe and you're doing it >> you started the show citing out the results we put out that doesn't happen by accident. >> no. >> that happens because we have 15,000 people worldwide dedicated, passionate, committed to doing their part for the industry and the company and our customers and that -- i appreciate you noting that. >> absolutely. it is what has to happen want to be great country again, that's what has to happen. tom caulfield, ceo of global foundry, the one ipo i liked in
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the last year. "mad money" is back after the break. coming up, a stock on the chopping block cramer checks in on the metaverse player that has investors frowning in this reality. next. from every corner we want to hear from you, drop us a line on "mad money." next, the latest report from the bureau of labor statistics as inflation remains near 40-year highs. the senate votes on protecting abortion rights. >> the fact, the news, with shepherd smith, next on cnbc. for mike's retirement party. worth is giving the employee who spent half his life
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on another hideous day including a hideous evening, a morning rally turns into an afternoon rally, there were few bright spots, like the rebound of roblox, closest thing to a metaverse we have. users can create their digital worlds and share with friends. this is another high flying growth stock that has been obliterated. roblox is different. last night they reported a seemingly disappointing quarter, headline numbers missed, operating didn't look too grate either plummeted after hours. as investors took time to process the results they started focusing on the positives, roblox had better than expected free cash flow the important metric for these companies. management explained while april wasn't great, it represented improvement over march and expect more this month and called march the bottom and the stock finished up 3.3%
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is itbl possible we have seen a bottom in the stock? i want to talk with dave baszucki the found around chairman of roblox to get a better read on the quarter welcome back to "mad money." >> thank you as always it's a pleasure to be on your show i appreciate it. >> dave, i'm going to go to something people don't talk about enough you have the freedom to develop things that are not -- that are safe and good and learning and you have that because you have $3 billion in cash, you have a lot of cash flow and people who depend on roblox for the next level of education and play in a safe way and that's what you're really about, correct >> well, we're about innovation. we're always about safety and civility it's been the foundation of our company since we started we have a big vision about our platform supporting not just play and social and helping people stay connected during covid, but as we emerge from covid, ultimately helping people
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learn, experience entertainment, connect with friends and family, and some day we'll use roblox in our own office to stay connected as some of our people work remotely. >> and you also pointed out to me in a very straightforward way that look, i mean, you were up against some of the hardest comparison imaginable and how long people -- kids can play games because the world did change you actually -- you benefitted from the pandemic but you're still benefitting. >> yeah. well, you know, we shared, we jumped from 2 million to 3 million daily actives in the united states in the 9 through 12 segment during covid. we've kept those users they're not playing quite as many hours. >> right. >> but they're still on the platform and we're continuing to grow around the world. japan has tripled in the last year india is up by around 2.5 x in our core market, 17 through 24
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users, those showed great year on year gains, so both around the world, all ages as well as our core demo. >> how do we value in a world where people want -- they want tangible growth right now, roblox is giving them lots of cash flow and building up a great franchise. what do you tell them? do you say look, just go along these guys are the winners >> i think we tell our -- really we're doing various things we're growing users engagement we are aware of the economic opportunity and the possibilities on our platform and i think this quarter is the first time we've come out and said look, we're going to nudge a bit towards the efficient frontier on our economy, both around how we do search and discovery, the amazing possibilities or how brands can bring traffic, and also our ugc catalog, which has an enormous amount of economic activity.
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we are leaning in on this and i think there's a lot of room here on our economy >> now speak to me about the notion of the two different kinds of ways to deal with internet there's an unsafe combative way that calls for an engagement of blood sport, and then there's a way of interactive where everybody wins and our kids are brought up better and everybody has, i'm going to say it a better world now there are two different visions, aren't they, sir in. >> yeah. when we look at the overall category of what we call social, it really means many, many things it means sharing my life through images or videos it means consuming content on roblox we think of social as in real time doing things together, more akin to what we used to do in real life or on the phone. we still do in real life but in covid we weren't able to we think that's an area that's really it can be a civilized
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platform we want to be the place where, you know, of all ages, it's a civil society on our platform, so we're optimistic about the real-time communication aspect of roblox. >> all right let's go back for a moment to the idea of making some money for shareholders brand experience examples, spacial voice, layered clothing, custom materials these are opportunities where you can make a ton of money if you think it's the right time to turn it on. >> yeah. we want to do this gently. everything we do is through value, safety, civility. second, we tend to do things way before laws, regulations or guidelines, and at the same time, anything we do around monetization will be fully compliant with that. but yes, our avatar system is getting much richer. we're moving to all of the avatar items in our catalog being created by our users, which will be a much more rich ecosystem for avatars.
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our spacial voice we're introducing that once again gently and older for older players right now, but that will improve the ability to communicate. there's a lot of economic upside we can do consistent with our values of safety and civility. >> let's talk about bookings, which you said is a reliable way to look at them. we're down a little bit. but is it not possible that we could see that bookings, the top line metric get better when we get, say, six months from now and the comparison aren't so crazed >> yeah. i mean we're -- march was a difficult compare. we were all locked down a year ago. we are, you know, we're happy that april we've seen that start to turn around we think longer term we'll see bookings start to catch up with user growth. >> will your employees tolerate the idea that perhaps you're not necessarily going to hit it out of the park right now like so many other companies in your sector >> yeah. i think we are going to hit it out of the park and i do think
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our employees are, you know, one of our other values in addition to respecting the community is taking the long view we're very excited about what we're building i was just on a group review ten minutes ago and it's amazing what we're building for the future and, you know, our employees are here for multiple reasons, including the vision, of course, including their compensation, but it's a much more wholistic employee that is kind of a roblox employee. >> at the same time your employees like everybody else are aging up when i first heard about your company was from my trainer who had an 8-year-old. now it's from my trainer what happened is people recognized the greatness of it and not something for 8 to 12 anymore. >> our fastest growing cohorts are 17 through 24 and 25 and up and those cohorts have enormous head room. we're a cultural phenomena for 9 through 12-year-olds in the u.s., but internationally, we have enormous head room.
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i mentioned japan and india and for older players who once again are on roblox as part of a civil safe society there's enormous head room there. >> okay. last question, i saw the release, spotify island brings new experiences for fans and artists to roblox. you are always doing new things in different media never -- there's almost no end to who you're willing to collaborate to bring greatness to how is this working? >> we sometimes people call this user generated content or ugc. internally we call it self-service which is really hard to build a platform where brands and musicians can come to the platform sometimes without our assistance and that's where it's going in this quarter we saw the nfl, we saw madden, sorry mcclaren, we saw american eagle, we saw chipotle, we saw spotify, we saw sonic, so more and more these are starting to show up
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organically without us having to do a lot of special custom work. >> by the way, the mcclaren people are crazy about it. i don't know why that one drove home is that just formula 1, just hot right now? >> you know, i don't know if it's the fact that the whole c suite of roblox loves formula 1 or that one of our board members is very closely affiliated or we just, you know, the roblox community loves mcclaren, but it's been really attractive. >> look, i just think you're doing everything right you got to keep doing it you got to stick by your guns. if you're losing fortunes and had no cash flow it would be a different conversation but that's not you. >> thank you. >> that's never been you dave baszucki, founder and ceo of roblox. everyone said the stock was going to go down it didn't go down. maybe you should be thinking about it right now "mad money" is back after the break. just chill out. >> chill master j. >> he's in the house and happy. >> the lightning round is coming up when "mad money" returns.
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next, the latest report from the bureau of labor statistics as inflation remains near 40-year highs. the senate votes on protecting abortion rights. >> the facts, the truth, the news with shepherd smith, next, cnbc. plus, earn up to $50 extra bucks rewards each year just for filling at cvs pharmacy. (heartbeats) plus, earn up to $50 extra bucks rewards introducing icy hot pro. ice works fast... to freeze your pain and your doubt. heat makes it last. so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers. [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪
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and never wonder if you got a good deal. because you did. ♪ ♪ bonnie boon i'm calling you out. everybody be cool, alright? we've got bonnie right here on a video call. we don't take kindly to video calls. oh, in that case just tap to send a message. we don't take kindly to messages neither. in that case how 'bout a ringcentral phone call. we don't take kindly to no... would you can it eugene! let's just hear her out. ha ha ha, i've been needing a new horse. we've got ourselves a deal. ♪ ♪ ♪ ringcentral ♪ this is not the stallion i was imagining. in one second, sara. yes! will get a job offer somewhere sunnier. relocating in weeks. weeks? yeah, weeks.
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gotta sell the house. don't worry, sell to opendoor, and move on your schedule. yes! when life's doors open, we'll handle the house. lightening round is sponsored by td ameritrade it is time the lightning round. are you ready? sunny in illinois. sunny? >> caller: hey, jim. a big get rich carefully chicago boo-yah to you my friend. >> trying to get rich and keep people from getting poor what's going on? >> caller: i'm sitting on cash what should i do with my money thinking about investing in cisco.
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>> do so slowly. the stock does not act well. doing reorganizing in security don't be aggressive in anything. watch what we're doing with the travel trust, we're picking at different levels still have cash, raise some cash to be able to get some bad stuff in to high grade the portfolio nothing big. mike in new hampshire, mike? >> caller: mike in new hampshire, boo-yah jim. >> the bees are attacking the azaleas and life is good. >> i have to get some this weekend. >> you have the luck on me what's going on? >> okay. i'm trying to move my investments towards income returns, substantial interest on real estate and equities i have. i'm looking to shift to high dividend solid companies lng. i believe is the -- >> lng is very good. i like the idea. you know i happy to be very partial to oil and natural gas, biggest of my portfolio what i keep building and building and
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building i think that's good. charles in georgia, charles? >> caller: jim, what's going on? hello from the south i have one question for you -- >> cheap scotch, that's what's going on what's happening with you? >> caller: all right i have one question for you, what is wrong with kkr and the equity markets >> i think blackstone, not kkr i think blackstone has better yield and better management and that is the conclusion of the lightning round! >> the lightning round, is sponsored by td ameritrade. coming up, what did the ceo of ra see coming that most of us missed cramer looks back on gary's warning next.
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i'm dan o'dowd and i approved this message. tesla's full self- driving technology. the washington post reported on "owners of teslas fighting for control..." "i'm trying..." watch this tesla "slam into a bike lane bollard..." "oh [bleeped f***]" this one "fails to stop for a pedestrian in a crosswalk." "experts see deep flaws." "that was the worst thing i've ever seen in my life." to stop tesla's full self-driving software... vote dan o'dowd for u.s. senate.
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coming up the latest report from the bureau of labor statistics as inflation remains high plus, the senate votes on protecting abortion rights on the news, minutes away. >> the fact, the truth, the news with shepherd smith next, cnbc take control of your financial future with the new cramer's ceo interviews, episodes, analysis, your sound board. plus special access to "mad money" 101 with rules and techniques to break down the market for all investors >> the red flag that makes you drop a stock immediately. >> it's everything you need when you need it. the new
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six weeks ago we were still living the dream russia invade the ukraine, the chinese were adopting a draconian policy to stop covid but we didn't think tfls going to be that big of a deal we ignored it until we heard from gary friedman who turned a hardware store into a palace called restoration hardware, one of the greatest retail powerhouses on earth now known as rh. got downright unhinged on a conference call. anything but scripted and was terrified. we figured they would keep sitting on their yachts, going to $400 lunches and buying whatever they wanted not according to gary. even rich people it has given them bad vibes. even if friedman sounded crazy at the time, i know better than anybody you can be both crazy and right at the same time
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just listen to some of the things that gary said on the conference call. when all of a sudden your business kind of drops by 10 to 12% overnight, and there's just more news and unrest in the world you got to change what you're doing if you don't change things won't change, so we are changing things. what was he changing he recognized housing was going to come down fast and said it's all happening too fast quote, all of a sudden, boom, we got a war, russia invades ukraine. boom, yellen says inflation grigz 4% to 2% and goes to 7.5%. boom, powell says we're behind quote, everybody thinks the supply chains are getting better i don't think they're getting better at all. he then compared this period to 2008 and 2009 during the housing recession. that was terrible. what's happened since then not just that rh stock has gone to a 52-week low, that was in the cards, all predictions proven true. he didn't go into a rolling crash of the stock market or crypto, something of a smaller competitor, wayfair, put him in
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the same paragraph as you. when i read over gary's words it wasn't panic speaking. it was the empirical sales numbers of a great business person which i am sure, unfortunately, have yet to stabilize. why is all of this so important? because if fed people jay powell will win this battle against inflation, oddly make the rich stop spending so much money. bidding up everything with second and third houses. i'm not saying jay powell -- i'm saying to customers that shop at rh are the people who do worry about russia, ukraine or interest rates and they don't want to be capital starved if something goes wrong they take the money out of the stock market, to go shop, not necessarily to shop at rh, they buy treasury bills and that's exactly what they've been doing in the recent months the only difference, gary saw it first. now we're all seeing it. homes are going to come down in price. travel is getting too expensive.
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jobs are beginning to be lost. and it's all happening right before our eyes. gary friedman, belated congratulations. you saw it ahead of all of us. now the rest of us will see it very soon. i like to say this there's always a b bulull . the new data that shows what every american knows, the cost of just about everything is still going up i am shepard smith, this is the news on cnbc inflation numbers again, coming high. >> year over year headline up 8 point %. >> what it means for gas prices and family budgets and the wall landed on tech stocks. good prices soaring. >> we have to keep investing in our farmers. >> the president's new plan to help boost crop production and how to counter wha


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