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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 do my friends. I'm just trying to make a little money. My job is not just to entertain, but to educate and teach you. So call me 1-800-743-CNBC. Tweet me, Jim Kramer. Sometimes you have to know when the narrative has shifted, when we have a whole new set of priorities. Right now, we'd like to think that NVIDIA's earnings report is all that matters. And that's true for tech, certainly. And after the bell, NVIDIA delivered just a terrific set of numbers.
But we must admit to a new pattern that can even transcend the likes of Nvidia. As we saw today, when the market soared in the morning, full head of steam for virtually every stock until the market crashed into a brick retaining wall. Averages reversing hard, Dow finishing down 180 points, S&P rising 0.01%, Nasdaq advancing 0.26%. It was up so much more than that. The brick wall, the president of the United States.
Yep, we were flying high midway through the high bank oval when President Trump started talking in a televised cabinet meeting, and it didn't take long for him to talk about his obsession, tariffs. The president knows that many countries run trade surpluses with us, and he's determined to change that. So we are beginning to understand that when there's a camera, there's a tariff discussion, and it's beginning to wear investors down. You doubt me? All right, look at this, look at this. The market's coming around the first turn, all right? Here we go.
It's flying. And then boom. OK, boom. Twelve o'clock meeting starts. Just goes down and down and down and down until about 2 p.m. Why? Because then kind of the coast is clear and the president might not talk again. But it doesn't save the day, does it? So a beautiful day. And then right here we get right into where we're about to have that discussion. Boom. We have a discussion. Bang.
Now, we get a great set of numbers from VIDEA tonight, and then we'll have to wonder what they matter tomorrow. Will they matter? If the president ruminates on Taiwan tariffs or China tariffs, 25-50, who knows if it'll matter? Now, speaking as a citizen, I have no problem with these tariffs. If I want to protect against unfair trade practices, but as someone who cares about the stock market,
I can tell you that we're entering a new, more mercurial world where we have to start worrying about the president's public appearances because we don't know which country, which continent, which ally he is going to attack next. Maybe in this sense, the Russians are lucky. In 2021, they ran a $23.3 billion trade surplus with us. That's way down thanks to the sanctions we hit them with after they invaded Ukraine. No matter, this market has decided that as much as it matters if there's good news, like NVIDIA,
What matters more is that we have very little certainty on trade policy, aside from the fact that the president loves tariffs as much as he loves making headlines. Now, I don't want to obscure the company with a stock that I always say, oh, don't trade, Nvidia. After the close, it was a very good quarter. Everyone thought this would be the most eventful quarter of earnings season, but it was a non-event. Why? Because it was terrific. And Jason Wong gives us terrific numbers. He's about as steady as the president is today.
Rick Uriel. The company put up solidly better than expected sales and earnings with strong guidance for the quarter, driven by the strength of their new high-end chips, Blackwell chips, Fantastic Bravo. While we still have to worry about tariffs and export restrictions, I have to tell you, the numbers were excellent. But let's talk about another situation. Let's talk about Apple, okay? Apple's America's greatest company.
The other day, CEO Tim Cook committed to spending $500 billion in the United States over the next four years. Citizens are telling me that that's not a real narrative, but that's wrong. They say it was planned ahead of time. That's wrong. I say who cares? The commitment is terrific. Hey, a lot of that could have gone to India. But Apple, did they get any sort of immunity? Of course not. They could be hurt by tariffs tomorrow. Seems wrong to me. Maybe that's why Apple stock got hammered today.
It ended up down $6.68, or 2.7%. When I searched for any reason, any reason, all I could come up with was one explanation, tariffs. Sure, Apple's an American company. It's going to make a lot of things here. But it gets a substantial number of its parts from Taiwan. It manufactures a huge amount of its products from cell phones in China. Because of the president's somewhat arbitrary nature...
It's very hard to own Apple here now because you do not know if the president is going to attach tariffs to Taiwan, stop more tariffs than the People's Republic of China. Is there any assurances you won't? What will that do to Apple's gross margins? Can it afford margin deterioration when the stock trades at 33 times earnings? That's why the stock went down. These are the musings of someone who actually likes the stock very much, who says own it, don't trade it, and thinks the company's sensational.
I just cringe now when the president talks about this stuff. Again, not because I'm against tariffs. I'm in favor of tariffs. I like targeted tariffs. For example, it's outrageous that China exports steel to Mexico in order to invade our tariffs and then ships the steel here. Got to try to close that back door.
Well, what do we do with the cars when we make in the United States to go back and forth over Mexico border when we make them? We don't know. And that's a big reason why General Motors trades at less than five times earnings. Just extraordinarily cheap. It's a big reason why CEO Mary Barra announced a six billion dollar buyback today. The stock, which is down nine percent for the year, had a quick bounce, but it gave up a big chunk of it. Tariffs.
We never know when we're going to hear about tariffs next, but we do know they're coming and we know that no stock is immune. Tariff talk is so pervasive, so overwhelming, so in your face that we even stopped discussing what dominated our discourse for years, which was the bond market.
Long-term interest rates have plummeted. The 10-year Treasury, which not that long ago seemed to be headed toward 5%, is now slouching toward 4%, finishing at 4.25% today. That's insane, especially when you remember that we keep having gigantic bond auctions. What happened to all those 5%ers? Anyway, they'll probably go to Palm Beach and avoid taxes. A couple months ago, if we got this kind of action, the bond market stocks would have exploded higher. We'd probably be making new all-time high after all-time high after all-time high. NVIDIA would be up 25 points today. The bulls would be running free, trampling any bear in sight.
But now nobody cares because rates are coming down for the wrong reason. That's right. It's because of tariffs, because of worries that Trump's trade policy will do real damage to our economy. A huge amount of money is flowing into tenure because the tenure may be the one piece of paper in this entire country that doesn't go down when the president speaks.
In fact, the president has become the bond market's best friend. I don't want to be a heretic in a market that's gaga for Nvidia, but I think bonds represent safety in a world where the president, not inflation, has become the chief impediment to higher stock prices. Too many companies can be tariffed, and they very well might be. There's just way too much fear.
Look, I've never bought into the dogma of free trade. I am not a globalist. But let's face it, Spain's a better market at 15 percent. France up 10 percent. Germany, so troubled, 14.5 percent. China, roughly flat this year, but it's made a big recovery up 8 percent from its January lows. While I expect all these markets will eventually experience the wrath of President Trump, they don't suffer from an almost daily barrage of tariff talk. Or let me put it another way. At another time, this market could have handled poor results from video and still gone higher pretty much just because of the Treasury yields. Because that's a sign that we've got inflation under control. But the bottom line here.
It's not happening. The market's not happening. It's not going higher because we know the president could come out any minute and rock this market with a new tariff on pretty much any country where we have a trade deficit. And that is most of it. It's time to give the tariff talk a break, if only to celebrate NVIDIA's stupendous quarter, Apple's tremendous commitment to this country and all the great things that United States companies do for all of us. There. Ian in Florida. Ian. Hey, Jim. How you doing? I'm doing OK. How about you, Ian?
I'm doing excellent. Thank you, Jim. Third time caller and investment club member. Excellent. Thank you. Thank you very much. Jim, I wanted to ask you, I wanted to get into cybersecurity. Sure. And I've been looking to enter for a while.
As Palo Alto networks, what do you think about this levels right now? Really interesting question. The cash flow put up a really good quarter. The headlines were out immediately before they even could read the release. Sellers came in. Had they read the release, they would have realized it is fine. I like Palo Alto very much. It's a great way to get involved in cybersecurity. Ian, good work. And thank you for remembering the club. Robert, New York, Robert.
It's so important.
It's so crucial. But I just want to remember, I just want everybody to remember that word diversification. No, because if you had all, let's say the foods and drugs, you thought you were doing great. You just got obliterated this year. We could have a big, if the president slaps tariffs on Taiwan and China, they're really big. You need to get obliterated in tech. So I agree with you and I thank you very much for that. How can I help you now? I thank you. Okay, this next company is taking a page out of Amazon's playbook.
It's easy to set up and integrate this company, and it provides services for both digital and physical platforms. It was built with digital in mind, and it's trying to position itself as the go-to destination for omni-channel retailers. And this is where retail is headed. At one time, this was a very big high flyer, and I think that it still can go higher, Jim, and I need your guidance. Shopify. Okay.
They are. Boy, I tell you, everything you said about it is totally true. It is absolutely the right thing. They are very easy to set up. They are the ones that every single entrepreneur that I know is on Shopify. And I think you nailed it. I know that the last quarter people misinterpreted it and they sent it down. Why don't you wait until they report it again? That same thing will happen and you'll be able to have a better opportunity to buy it than you have right now. And thank you for those kind words. And yes, diversification is king.
Right now, there's just too much uncertainty around the president and the tariff list. He's got to give us a break, Mr. President. Just give us a break. On Mad Money Tonight, Salesforce is on the move after earnings. I've got the CEO to break down the numbers and the company's expanding partnerships.
Then Axon flew higher today on last night's report, despite this big pullback. Don't miss my exclusive to see if this stock has even more room to run. And later, hey, Audity Tech, could that be a standout in the cosmetic space, which we know is so weak? I'm going to talk to the CFO following a fourth quarter top and bottom line beat. So sorry I'm overheated about this, but I know what could happen in this market. I know how great it could be. Stay with Cramer.
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What the heck is happening with the stock of Salesforce tonight? When the cloud software came in reported, the stock was all over the map. People seem genuinely confused. I say we have to try to clear it up. How concerned should we be? Let's take a closer look with Mark Benioff. He's the co-founder, chair, and CEO of Salesforce. To find out, Mr. Benioff, welcome back to the show.
Jim, how are you? It's great to be with you. I'm thrilled to see you. I see great things here. I see margins going up far more than I thought. I see the revenues just terrific. I also know you're a cautious person. No sense to be able to say, listen, given the currency, who knows where it's necessarily going to be. But I'm going to give you the floor to see if I see it correctly.
Oh, yeah, Jim, this was the best quarter we have ever had. I mean, look at this fourth quarter result. This is our first $10 billion quarter. Incredible. I mean, we had more than 400 deals over $1 million. But the real story in the quarter, Jim, is none of that. And yes, you could talk about foreign exchange. We lost a couple hundred million dollars there.
But the reality, Jim, is agent force. This is just the beginning of an incredible new chapter for sales. Is it possible that we see a lot of people still kicking the tires agent force? Because I'm hoping for that avalanche of customers. But it is a hard thing to do. And you have to convince some people are the people being convinced.
No, Jim, it's already been an avalanche. We're digging our way out of that. I mean, Jim, we did 5,000 deals for Agent Force in the quarter, 3,000 of which were paid.
And some of our largest and most important customers are already deploying AgentForce. I've never seen anything go faster. It's really been incredible. And I think you've even been in touch with some of the CEOs of some of these companies. Like Lenar. I mean, this has got to be one of our nation's largest and most important home builders. And they've been a great Salesforce customer for eight years, running their sales and service and marketing and everything great with Lenar. But Jim, now they're deploying AgentForce. And the story is...
incredible. You know, they came to Dreamforce just like you did. They went back to Miami where their headquarters is. And then all of a sudden what they did, Jim, was something really cool. They did a hackathon to figure out what should they be doing with AgentForce?
And they found these incredible use cases, like they could provide 24-7 customer support for all of their homeowners, and they could sell them mortgages, and they could do insurance. They had a huge list. And so their two co-COs, Stuart and John, got involved and
put it together and prioritized. And I think we're going to transform. I think the world of Stuart, I thought the world of his dad. I've known the company for 40 years and it's the one of the best run. And I've argued the toll could be given up for the money. But to the other homebuilders, I'll be thinking, what is Lenore's secret sauce? Because are they able to take people who would not be that important in the operation and pull them and make them more important?
Well, our goal is very simple, Jim, which is to make them a lot more profitable and to raise their revenues dramatically. And you'll have to talk to Stuart and John directly about the financials. But it is really cool. I'll tell you another great story in the quarter with Singapore Airlines. You know, one of my favorite airlines and a great country, of course, but a great way to get there is Singapore Air.
And they are deploying an agentic layer across the whole airline with agent force so they can deliver just 24-7 world-class Singapore air quality service and capability. And that was really awesome to see a, you know, a
a customer in another country do a huge global deployment. This is going to be incredible. And we saw lots of other customers even deploy on the web and in Twitter and all these places without our knowledge, companies like Equinox and Remarkable as well deploying rapidly. Let's talk about Dr. Albert Bourla.
We both know him. Pfizer, one of the largest drug companies in the world. I Google Pfizer and Viva. And what comes up? Well, it turns out that Pfizer is reimagining the content supply chain at light speed at Viva. But I see that you're their provider. Jim, this is amazing. We have our new Life Sciences Cloud. And I'm talking to the CEOs of every single Life Sciences company. Will you have others? Yes. Pfizer signed.
Oh, Jim, we have more than a couple. We know this is the fastest growing vertical. And we have a great, let's talk about Pfizer for just a second, though. Albert is amazing. You know that. But the big exciting news here for them is a whole new way to do everything from direct-to-consumer interaction to clinical trials. This kind of agentic layer, it's integrated into our Life Sciences Cloud, Jim. So our Life Sciences Cloud, of course, is built on
Our customer 360 apps, which are sales and service and marketing and commerce and our platform and Tableau and Slack, and then our data cloud, and then our agentic layer. Those are our three layers, our apps, our data, our agents. And that is all one piece of software, Jim. That's amazing. And they just take that. We repackage it as a life sciences cloud.
And yeah, you get a whole new Pfizer. Fabulous close margins. Great for Pfizer. Now, if all these are the case, why didn't you say that your revenues could be a billion dollars more during this fiscal year? Well, Jim, we are now only the third software company ever to deliver in the 40 billions. Right.
That is an amazing. Do you know there's a fellow? Do you know a fellow by the name of Frank? Do you know a fellow by the name? Single billions when we met you. We're now at the 40 billions. Absolutely, that's great. But there's someone up there even higher. And the margin and cash flow also is awesome. We're going to deploy. The margin's in the 30s. I love that. It was in the 20s before. New CFO. These are all great. But I wanted to ask you something. There is a company called Microsoft. And there's a fellow, I don't know him, Frank X. Shaw. He seems to not care for you.
you. He is saying that you are a great marketer. He is saying that you are attacking Copilot. You're obsessed with Copilot. That's their product. I don't know what to say. He calls it a borderline obsession. He doesn't go and say it's a full obsession.
Oh, they've just got a really good case of agent force envy there at Microsoft, don't they, Jim? It's kind of amazing. You know, that's this is what I was meant to be, you know, waiting for more. It's the same two commercials and heavy rotation. How about another 10 commercials?
Jim, I think there's two more coming and it's going to be very exciting. Everybody loves these commercials with Matthew McConaughey and Woody Harrelson. Is there a customer, a big customer has come to you and customers come to you and say, OK, what exactly are they doing here? I don't get it. It seems funny. It's like an open table, which we know because Bookies told me that they loved you. But I'm trying to figure out what someone's doing when they see that ad.
This has been the biggest brand development vehicle we've ever seen for our company. You know, we've always done TV advertising and print advertising, but this is our most successful. I've never had so many people ask me about these ads. So it's worked perfectly for us. And look, the big story is the success of it.
product, even us at Salesforce, we put the agentic layer you might remember in a few months ago. We've already done 300,000 customer interactions with it. It's incredible. Dramatically lower our cost on customer support and service.
Now we have the new one coming for sales. We're going to be able to grow your revenues as well. This is a revolution. And here's the thing, Jim. For the last 25 or 26 years now of Salesforce, we've been having a total addressable market of several hundred billion dollars in enterprise software. But you saw, Art just said, that this is a $3 to $11 trillion opportunity in digital labor. That is the big high-level story. We're moving from being a provider of
to help companies manage and share their information to being a provider of digital labor. So in each of the customers that we just talked about, in the example of Lenar, in Pfizer, in Singapore Air, in any of these companies, we're not just providing them software to help them manage their data and help them manage their workforce, we're creating new digital agents and digital workers who are going out and providing capabilities directly to their customers.
That's a huge new opportunity. Okay, so let's distinguish between what a co-pilot could do for a Pfizer or a Lenore and what AgentForce can do. Can you tell me what you think their differences are? Well, Jim, I think that is really the core issue. Look at Salesforce. Go to help.salesforce.com, Jim, and you're going to be able to use AgentForce or go to Remarkable or go to Equinox or go to one of our other customers. And you're seeing and using. If you go to Microsoft, right?
Can you use Copilot? Are they deploying it in their company on their customer support? No. By the way, that's their customers example as well. Look, Copilot has been a huge disappointment for customers. You know that. But look at right at Microsoft.com and if you can find it running,
Please, would you send me a screenshot so I could see it? Because I've been looking for it for a couple of years and I can't see it. So far, not haven't seen it yet. I do want to ask about you. Yeah, I know. I want to ask you about the executive changes because they're exciting. I will miss Amy, who's sensational. But why don't you introduce in this call your new CFO, who is someone I've known for many from afar, but a spectacular.
Well, she's right here, actually, in my office. I should try to get her to come over. And of course, it's our really incredible longtime board member, Robin Washington, who everyone knows was a great CFO of Gilead, one of the great CFOs at Hyperion, was one of the top financial executives at PeopleSoft, is not
board member of Google, so many incredible things. She's well-known through the whole industry. And we did a really comprehensive search for our new CFO and COO. And we used Hydric and Struggles. We had some great choices. And at the end of the search, Rob and I were talking. And I said, Robin, wouldn't you love to do this job and get back in the ring and
come on, let's go do some great things. And she's like, yes, I'm going to join you. So I couldn't be more excited. She's actually right here. And I couldn't be happier. So I hope, maybe, well, she's a little bit shy. She's not going to, I don't think she's going to come right over. But she wasn't shy with the activists. I couldn't be more excited. She was very much involved. What's that? She wasn't shy with the activists. She was very much involved in...
Oh, yeah. You know she was by my side, Jim. We talked about that. She was by my side, and they love her. And, of course, all of our investors love her. She's had such a great success with so many companies. Well, tell her best of luck. And, Mark, congratulations on a great quarter. And I'm going to go hunt for a screenshot of Copilot.
Jim, I think you really should. I think it would be, you could text me, Jim, you know, I'd love to see it. I don't sleep. I'm just going to. But you know where to find it on help.salesforce.com. No, you know, I play with it. And if you want to see it on any of our other customers, I'm happy to show you Agent Force in action, helping them to lower their costs, make more money. I mean, this is a digital labor revolution, Jim. It's incredible. Next time we talk Saks again, because that was such a great presentation. All right.
That's another great story. All right, fantastic. That's Mark Benioff, CEO of Salesforce. Look, I think the Rams and the Martins. It was our best quarter ever. We're so excited. I agree with you. But then again, I own it for my travel trust forever, and I'm not making any changes other than if it was where it was earlier, we would have bought some. Thank you, Mark. Great to see you. Bye-bye. Bye, Jim. Great to see you. We'll be right back after the break. Coming up, an interview in the interest of public safety and security. Don't miss Kramer's conversation with Axson next.
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Look, we know what happened last week. These high-flying momentum stocks collapsed. Axon Enterprise did, and this is one of the best there is. A company formerly known as Taser International now has a big police body cam, evidence management software business, phenomenal growth. Yes, it was actually the strongest revenue guide in history.
But last night, Axon reported the quarter that we've been looking for an excellent four year forecast. Stock we batted like crazy today, up over 15 percent. That said, it's still down nicely from its highs. And if you believe the company can keep putting up great numbers, well, then this might be still a good buying opportunity. Don't take it from me. Let's take an old friend of the show, Rick Smith, founder and CEO of Axon Enterprise. Get a better sense of the quarter and what's going on. Welcome back to VanBuddy.
Hey, Jim, it's awesome to be back. Oh, it's terrific to have you. Before we get into these stellar numbers, I want people to be familiar with you. And the best way to do that is for you to tell us about your moonshot goal. Yep. We are on a mission to make the bullet obsolete and specifically cut gun deaths in policing by 50 percent over the next 10 years. We'll do that with tasers, body cameras, cloud software. And now we've got an A.I. business that's on fire. Tell us what the A.I. business is doing.
Well, basically, we have a million cops wearing body cameras. Those cameras are the eyes and ears of law enforcement. We can use AI to write their police report, to do real-time language translation, to help investigators sort through hours and hours of video very quickly. So basically, if there's ever an application for you can use AI,
It's on our data set that is the world's largest data set of audio and video of police incidents. And I want to tell people there's a seven-minute video on his website that is so extraordinary. It's going to show you everything, and you must, must, must watch it, even if you don't want to buy the stock. One thing you say very up front in the conference call, but also in all your documents, police love having the body cam. Tell us why they would like it, because I think there are probably some people who say, wow, why would they ever want that on?
Well, I'll tell you this. I had a police officer who told me once he was accused of raping a subject in the back of his car. He had the body camera on the whole way back to the police precinct. Think about what that did. Think about what that saved him from having to try to disprove what otherwise could have been unprovable. Police officers get accused of all sorts of terrible things. And look, a very, very small percent of the time, at least somebody does something terrible. But this camera, if you're doing the right thing,
It protects you from all the nasty, terrible things people might accuse you of having done. And Rick, one of the things that we all know if we ever watch cop shows is that they hate coming back and having to type reports. They often talk about how, and I know in real life because I talk to them, that too much of their life has just been typing up reports. But I saw something remarkable, and I know that's AI, that they kind of type themselves.
Yep. We take the body camera video and we feed it into AI and it takes the transcript and it does the first draft of the police report. So look at this. A police officer on average spends half their day doing the job they love, being a cop. The other half of their day, they're sitting down writing reports. We cut that in half. It's like for
For police officers, it's game changing. They get to do the job they love. And for a police department, it's like a 50 percent increase in their manpower like that because they're out doing police work, not sitting writing reports. Now, you're taking the growth in cities. Incredible. And they're actually celebrating revenue growth. But some something that I think might help that you can explain to us that it does cut down these very long jury trials, because if there's a photo, if there's film, what happens?
You know what happened. Without it, you've got to do an investigation of he said, she said. Like, think about Ferguson, Missouri. Remember that famous shooting over a decade ago? There were two extremely different stories. If they'd had a body camera, that was the incident that put body cameras on the map. After that?
Everybody wanted body cameras because nobody knew what the hell happened and everybody had an opinion, but nobody had the facts. With a body camera, we know what happened. Okay, so how prevalent, where are you now overseas? Because it seems like a natural to be emerging markets, Europe, everywhere.
Yep, I'm in Madrid. I was in Norway this week, Ireland. So we're getting a lot of international. Keep your eye on the Nordic countries. They are doing fantastic work on taser weapons. I think they're going to play a key role. And when we talk about making the bullet obsolete, I think the Nordics are going to lead the way. Why?
Well, to be honest, they've got a history of being very tranquil countries, but now they're dealing with these massive immigration problems. There's spiking crime, spiking violence, but they're not gun cultures, right? So even the police themselves are like, they're generally unarmed.
But they need something. And so the Taser for them is a great option. They don't want to have to go up to suddenly be carrying guns in their daily duty. And the new Taser 10 is a game changing option for them because it gives them something other than a like a billy club and getting in a physical fight. Well, I think some people are wondering about demand. Can you make that Taser model fast enough?
We have not been able to make it fast enough yet. That's a great problem to have. We're still working on it. We're hoping capacity catches demand this year. And just one last thing. When I look at this time, I couldn't believe it. You're now doing drones and the drones make so much sense. I can't believe that we never did it before. They are really catching a lot of criminals.
Oh, for sure. Drones is the next big thing, but our current big thing is AI. The AI services we launched this year are selling five times faster than any product in our history. And that's in dollars, not in height. So five times faster dollar bookings in their first year than our previous fastest selling product. It's so exciting. Well, Rick, when I first met you, you were a taser company. And you told me you would be a software as a service company. You're far bigger than that. Congratulations to you. Rick Smith, the founder and CEO of Axe.
on AXON Enterprise. Boy, it's good to see you good. It really is. It's awesome to see you, Jim. We'll see you in person next time. Thank you. Let's do that. Mayor Bunny's back after the break. Coming up, does the cosmetic space have a good foundation? Kramer's finding out with the CFO of Oddity Tech. Next. Lately in the cosmetic space, it's been truly awful. We've heard real bad things about Estee Lauder for ages. And more recently, even the operatives like Elf Beauty have fallen apart.
But even in this industry, there are pockets of strength. Last night, we got results from Oddity Tech, the direct-to-consumer cosmetics play, and the numbers, they're phenomenal. We're talking 27% revenue growth and a 7-cent earnings beat off a 13-cent basis. Even better, management said their momentum has continued in the new year, which is why they gave such strong guidance for both the current quarter and the full year.
Well, I actually pulled back slightly today. That's only because it rallied when 5 percent yesterday go to the quarter. And if it keeps putting up these numbers, I bet it's got a lot more upside. Let's take a closer look. Lindsay Drucker, man, the CFO of Audity Tech. To learn more, Ms. Mann, welcome back to Mad Money. Thank you so much. Thanks for having me. OK, so we got to ask you right up front. This is an industry that everyone tells me is challenged. I look at your numbers. They don't seem challenged at all. What's going on? So.
It's a great question. It's the question, really. A year and a half ago when we went public and I sat and met you for the first time on this show, I told you that we believed we operated in one of the most attractive and lucrative markets in the world.
and that it was our mandate to transform it with technology and entrepreneurial thinking and to build one of the biggest beauty companies on the planet. And that's exactly what we're doing. We believe that incumbents are behind the curve. They're not where the consumer is. Meanwhile, we've invested aggressively in technology. We've focused our businesses in the areas that matter. That's namely the shift online. We think that's going to be the biggest market in the entire channel. It could double in penetration to about 50%.
uh... were is was where we think it'll and but also products that really work products that solve their pain points now like uh... the last year which is a gigantic product that is just gaining strength how come that such a success in my case this year in twenty four crossed the five hundred million dollar mark in revenue makes it one of the single largest beauty brands in the country even though the businesses all online and all other beauty brands effectively are distributed through retail channels wholesale channels
It's simple. She wants to shop online. It's been impossible to do until you have real data, real technology, and we also focus not just on the tech, on making product that she really loves, that she comes back to again and again and again.
I would think that because of Oddity Labs, we could have a multi-year channel. I think these are great. And you say repeat sales are a great indicator and they're fabulous, but you've got a pipeline too, just like a drug company. Absolutely. Oddity Labs is an endeavor we took on in 2023. We acquired a biotech called Ravella and on top of it, we stood up an actual biotech. A biotech, yes. It's right in Kendall Square. We have an elite group of scientists, 60 scientists today, building to 100. And their mandate is to take the best of
technology, pharma-grade technology, including using artificial intelligence for molecule discovery. But instead of finding the next therapeutic and drug discovery, it's used that technology to make the best beauty ingredients, the best delivery mechanisms to create the best products that have ever existed. I want to go full circle and come back. You have great technology. And you said, listen, besides technology, whatever, but why aren't the other guys copying you? I talked to all of them. They're not technology companies.
I think it's really, it's easy to talk about, hard to do. One of the bright spots all of them talked about on their earnings results was online is really working for them. But in order to figure out direct-to-consumer and not just sell through Amazon, you need real technology, you need real data,
The way that our business works is we are able to replace and improve upon the experience you would have in a store. But instead of an associate, we have machine models that help find out what you need, match it to the right product. We have video on demand to show you how to use it. All of that is really difficult to do. And there is a huge percentage of people who would like to do this at home and not in a store. Absolutely.
That's the beauty as a category. One of the original insights our founders had was how is it possible beauty is number two or three on Insta, number two or three on YouTube. The consumer is online, but most of the transactions are happening in store. There is a disconnect. And what they realized was she needs help. And with technology, they can actually help her in a way that was never possible. You were the CFO. One, beautiful balance sheet. Two, bought back a lot of stock. Exactly.
That's right. We bought back over 10 percent of our float last year. One hundred fifty million dollars of share buybacks across 2024, about half of the business float. So we took out a big chunk of it and we think our stock offers a compelling value. It will be opportunistic. Now, what I understand is where people find you is online. It's not like you've got a billion dollar budget for ads at the same time. You're up against companies that do and you seem to be winning.
This is not what they're good at. Our business was built around, we have an in-house advertising agency. We don't use third parties. We do all of our measurement in-house. Our creative team is integrated with the performance team. We track everything. We monitor every single thing. And it allows us to be extremely efficient in terms of the return we get on our advertising.
advertising spend. Plus, we're asking the user questions. We know about her. We understand the things she needs and that allows us to convert much more efficiently. So when is brand three coming out? Brand three is later this year. We talked about a soft launch in Q3. Can you name it right here? It would be good. We just named it on the show. I,
I will leave that to a later date to name it, but it's a telehealth platform for people with medical-grade skin and body issues, acne, eczema, hyperpigmentation. That's the first part, but we'll extend into other health domains afterwards. That's fantastic. Thank you for doing that. Thanks a lot. Thank you for what you've done for shareholders. That's Lindsay Druckerman, CFO of Oddity Tech. Guys, you know I know this space really well, and I've seen the ups and downs. These guys are in the ups. Mad Money's back with you in a minute.
Coming up, lightning doesn't just strike twice in Kramerica. Booyah, Jimmy Choo. Booyah, booyah, booyah. Thanks for taking my call. It strikes every day. Kramer is back in a flash with your questions next.
It is time. It's time for the lightning round. It's time for the lightning round. Let's start with Jeff in New York. Jeff. Hello, Mr. Kramer. This is Jeff from Sotus, New York, in the South Shore of Lake Ontario, where winter has been brutal this year. Oh, sorry to hear that, but good to have you on the show. How can I help?
I love your thinking there is another part of Martin Marietta's business that is about housing and housing-related areas.
building new roads there. And that's what's keeping this from working. I think you've got to wait to see the quarter. I know you're going to have to wait until the end of April, but I want you to do that before you pull the trigger. Let's go to Christian in Texas. Christian. Booyah, Jim. I'm an investor in my 20s, and I'm willing to take on a little bit of risk.
What are your thoughts on CERV Robotics? That is a very risky stock. I would normally advise people to either do Tesla. I know that's become a very risky stock. Or Nvidia, which just reported a nice quarter. But because of your age and how you feel about it, I'm going to green light you, but only for someone your age. Let's go to Jeff in Connecticut. Jeff. Hi, Jim. Always watch your show. I love it. Thank you, Jeff. Thank you.
I bought a stock and made a little money on it. I wonder if I should take some money off the table on Badger Meter, BMI. No, that is just one of the most steady-as-she-goes companies. I actually like Agilent more than Badger Meter, but I think it's a terrific situation. I would hold on to it. Test and measurement has to be a very good business wherever you find it. Let's go to Nick in Florida. Nick. Jim, how are you? I'm good, Nick. How about you?
I'm doing fantastic. Listen, I appreciate you taking my call. Sure. Listen, I'm a first-time caller, brand-new club member this week. Oh, excellent. Thank you. Thank you. I really want to appreciate your time and everything. Of course. Real quick here. Last night you took a caller as to asking you about Ford, and you were down on Ford, and you also included Rivian. Yes. And I'm really curious as to your thoughts given the current state of things.
state of I do not like I don't like the auto market. I don't like the auto market. And while I still appreciate Rivian's balance sheet, they need so much more money, I think, ultimately to become a big company. So I cannot go there because I think you'll look back and say, why did Jim Green like that to me? I'm not going to do that. Let's go to Terry in Michigan. Terry. Jimmy Till. Booyah. Booyah to you. What's going on?
Well, I'm a first-time caller. I love your show. Thank you. Congrats on the Eagle. Thank you very much. I know you've been an Eagle fan forever. I'm calling about Arista Network, A-N-E-T. Look, I thought they reported a good quarter. I know people worry about the meta business. I think the Oracle business can make up for that. But there are other people who feel like, you know what, everybody's shooting at them right now. I think it can bounce.
But I know that the competition has gotten tougher. Let's leave it at that. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Still to come, it's been a long time since the market's seen this type of short squeeze. Kramer's giving his take on the gamification of stocks. Next, tomorrow, kick off the trading day with Squawk on the Street.
Live from Post 9 at the NYSE. I think we could do two hours a day, not one hour. I'm upping our Musk hour to the Musk double hour. Do you think Jensen would feel slighted? I don't care. How about Alex Clark? You don't think he's worth it? They can all come on. The book tour might be over. You can come on the show, but you can only come on to talk about Edelman. It all starts at 9 a.m. Eastern.
These days, anytime there's a big decline, the professional short sellers come out of the woodwork to cash in. Now, you may not be able to see their handiwork, but I can tell where the shorts are playing havoc with all sorts of stocks. You see it in exaggerated spikes. You see it in the swoots. Now that the momentum trades have finally started to weaken, the shorts feel emboldened. You can see their footprints all over the place.
Sometimes they're obvious. Applovin, a technology company that helps mobile game developers expand their reach and monetize their games with advertising. Hmm. This stock's been nothing short of amazing. In late August, it traded at $60. Two weeks ago, it hit an all-time high of $525. Today, it fell to $331 after a hideous 12% decline. That's because two different short-selling firms allege that Applovin has committed fraud, among so many other things. They claim that that's what's been driving the numbers. Big numbers.
It's like these firms waited and waited and waited for the principal shortbuster of Bitcoin to peak, for Tesla to peak, for the nuclear stocks to peak, for all things momentum to lose their luster. And only then did they lower the boom on this red hot mobile game advertising company because it was part of a weakened cohort. Tonight, for what it's worth, App Love and CEOs said the short sellers were, and I quote, making false and misleading claims, end quote. And that, quote, the reports are littered with inaccuracies and false assertions, end quote.
But at least Apple up is straightforward. The trickier ones are bouncing hard here. These reflect short sellers either locking in their gains or throwing in the towel and covering their failed positions.
Last time we got fourth quarter numbers from Axon, the artist formerly known as Taser. As you heard, I have no idea why, but there was a substantial cohort that believed that Axon would miss its numbers. You heard from the CEO tonight that business is humming. Today it rallied 15% because the quarter was that good. I don't know what they're betting against. A few weeks ago, I heard that the consumer part of Intuit was weakening. That gave hedge funds the green light to bet against the financial software juggernaut. Turns out Intuit's consumer business was bad, but the rest of the company's on fire, so the stocks soared more than 12% today.
For the last few weeks, multiple analysts have trashed Workday, the excellent enterprise software company that handles human resources, corporate finance. But when Workday reported, the numbers were sharply better than expected and the shorts were obliterated. And of course, there's Supermicro, an NVIDIA partner that offers pre-configured servers.
The shorts here are betting that Supermicro, which has been having internal controls and controls issues, would fail to meet the requirements to stay listed on the Nasdaq, something that's considered a kiss of death for most companies. Great reason to short a stock, unless, of course, the company manages to stay listed. Supermicro pulled it off. The stock shot up 12 percent, shorts thrown in the towel. But let's step back for a second and focus on what's really going on here. For several years, it's been too dangerous for hedge funds to aggressively short anything, ever since the GameStop affair.
where short sellers were drawn and quartered when the stock went from $4 to well above $400 like that. It's been considered reckless to short. Many funds specializing in shorts have been wiped, just wiped out. Obliterate it. The entire process was fraught always because unlike buying stocks, when you short a stock, you can lose way more than 100% of your investment.
Consider those who bet against Palantir, the data scientist consultant firm. That one went from $21 last August to $125 a few weeks ago. Aggressive buyers annihilated those who thought it was all smoke and mirrors. It wasn't much of a fair fight, even as Palantir's pulled back now for the last few weeks.
Finally, there are the garden variety shorts that are going awry. When you look at today's move in Lowe's and yesterday's run in Home Depot, you should recognize that these two stocks have been going down for ages. Then they reported better than feared numbers and the shorts decided, enough already, let's just go ring the register. So you get an outside rally on decent results. Long story short, after a four-year hiatus, the short sellers are back on the scene, recognizing that they can plant stories, play havoc, cause mayhem, and also tell the truth like no other force in the marketplace.
I like to say there's always a bull market somewhere, and I promise you I'll find it just for you right here on MadMoney. I'm Jim Cramer. See you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Cramer 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. Cramer'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 forward slash madmoneydisclaimer.
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