Six Hundred Sixty Thousand Dollars, Three Hundred Billion Dollar, Hundred One Billion Dollars discussed on MAD MONEY W/ JIM CRAMER - Full Episode

Automatic TRANSCRIPT

The markets too expensive the average dangerously elevated just you wait you'll see how other this thing can get we went up oh nothing will go down hard on everything sure i get it yeah i mean plop plop plop but the more i think about certain calls certain stocks valuations the more recognized that we really have to stop relying so much on the idea of the market because the valuation for many big capitalization sucks this aren't they expensive here where to put it another way there's amazon there's netflix deborah table ubs and we're bitter discord among analysts and there's pretty much everything else i think these two in the endlessly talked about tesla or obscuring what's really going on here notice first of all i didn't say fasting is obscuring evaluations that would be wrong because this three had five fairly exp inexpensive when you look at it i mean it was easy to see how facebook off for cliff if people actually were worried about privacy when they're seeking to promote themselves online kind of oxymoronic we think about it i mean why not the media had a field day with this privacy stuff and they're probably not even done having that fee field day just yesterday on a day when tariffs dominated the news correctly the business section of the new york times harped on facebook being fine six hundred and sixty thousand dollars the largest fine that some agency none of us really care about could slap them i mean hello you can steal six hundred sixty thousand dollars from mark zuckerberg and he wouldn't even notice it's gone the fact is facebook sells for just twenty two times next year's earnings estimates at the end of the day that's what we will it matters the only thing that investigations done is shrink the stock's price during his mobile not the earnings but will people pay for those earnings which no the way of saving stocks cheaper than it deserves to be same goes south of it the possibility of government regulation plus the opiate nature all the other businesses as time cra google makes the company hard value meanwhile we've decided that all we care about is how much it costs google get clicks not lucrative it is across the board that's why the stock trades is just twenty six times next year's earnings estimates but way to say maybe we should figure out what it sells for excluding the hundred one billion dollars in cash is balancing really twenty three times earnings when you look at it like that apple sells it nearly fourteen times next fiscal year's earnings that was companies a pure cellphone story with a pc and tablet kicker but the apple we all know now is this whips in play that we pay money to every month doesn't we do it netflix with spotify was costco but the amazon that's a sticky revenue stream one will probably never kick fourteen times earnings for apple's now rages because of that outrageously wrong especially given the company's new e three hundred billion dollar cash toward back out the cash and it's more like ten times earnings it's not just fagging this morning goldman sachs upgrades j j from silva holt when i saw the stock was trading fifteen times net shears ernie's i was shocked this is a premier merck and company with.

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