Raphael Stevens

In this articleAMCGMECNBC’s Jim Cramer said Wednesday he’s not sure why any investors are still betting against GameStop and AMC Entertainment, two of the so-called meme stocks popular on Reddit’s WallStreetBets forum.The “Mad Money” host made his comments following a session in which GameStop shares rose almost 16% Wednesday and AMC advanced 19%. The stocks are up 37% and more than 60%, respectively, this week alone as the speculative trading that first took Wall Street by storm in January resumed.”Anyone shorting AMC or GameStop is out of their mind. … WallStreetBets is too powerful, and trying to bet against them right now is just giving them more ammo,” Cramer said.Despite some optimism around a potential turnaround spearheaded by Chewy co-founder Ryan Cohen, Cramer contended the video-game retailer GameStop remains way overvalued. AMC — which still faces headwinds from the rise of digital streaming — is also expensive at current levels, Cramer said.But Cramer said the companies are not trading based on fundamentals, which makes shorting their stocks dangerous as long as they remain beloved by Reddit traders.Shorting a stock is essentially a bet that it will fall in price. An investor such as a hedge fund borrows shares and then immediately sells them into the market, with the goal of buying them back later at a lower level. Then, the investor returns the borrowed shares, profiting off the price differential.When the opposite happens and the stock rises in value, a short-seller may seek to minimize losses by purchasing shares at their higher price.Both GameStop and AMC have over 20% of their float shares sold short, according to data from S3 Partners. That’s compared with an average of 5% short interest in a typical U.S. stock.”I’ve never seen anything like this: a group of buyers with no sensitivity to price,” Cramer said. “These people don’t have unlimited firepower, but they’ve got enough firepower to engineer a short-squeeze any time a bunch of professionals decide to bet against this thing.”— CNBC’s Yun Li contributed to this report.Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

Snowflake CEO Frank Slootman said Wednesday that shareholders need to be patient with the company’s stock because the cloud transition is not happening overnight.”Our business is really going to conduct itself really over considerable, long periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Mad Money.” “That’s sort of the message to investors to really understand we’re signing on here for a journey that’s five to 10 years.”The comments came as shares of Snowflake tumbled as much as 8% in extended trading after the company reported fiscal first-quarter results.While revenue grew 110% year over year to a better-than-expected $228.9 million, the data-analytics software firm also reported a net loss of $203.2 million. That’s up from $93.6 million in the same period a year earlier. At the same time, Snowflake also raised its full-year guidance for product revenue.Snowflake went public in September in a record-breaking IPO, with shares closing that initial trading day at $253.93. However, the stock was below that level at Wednesday’s close. Snowflake shares are also down 16% year to date, as investors have rotated out of high-flying growth names into economically sensitive companies that stand to benefit from the Covid recovery.Despite the recent moves on Wall Street, Slootman stressed that the company’s software is only becoming more important as enterprises shift away from databases tied to hardware.”These are big, big changes that we are experiencing in the marketplace, and we’re just super happy to be in the middle of that and be an enabler of that,” he said, adding that Snowflake places its focus on growing at scale. “We’re not a growth-at-all-costs company.”Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

Paul Hennessy | LightRocket | Getty ImagesFederal prosecutors have charged 14 people — including a medical doctor and owners of laboratories, pharmacies and a home health agency — in multiple Covid-related fraud schemes that allegedly bilked consumers and insurers out of $143 million, the Department of Justice announced Wednesday.In addition, the Center for Program Integrity at the Centers for Medicare & Medicaid Services announced it took administrative action against more than 50 medical providers for their involvement in health-care fraud schemes relating to Covid-19.The DOJ’s Fraud Section, which leads the Medicare Fraud Strike Force, announced it is prosecuting cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey and the Eastern District of New York.”These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country,” Deputy Attorney General Lisa Monaco said. “We are determined to hold those who exploit such programs accountable to the fullest extent of the law.”FBI Director Christopher Wray also said the agency is committed to combating Covid-related health-care fraud. “Medical providers have been the unsung heroes. … It’s disheartening that some have abused their authorities.”The defendants allegedly engaged in various types of schemes “designed to exploit the COVID-19 pandemic,” the DOJ said in a news release.”For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample,” the DOJ said. “The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests.” The DOJ said the proceeds of the schemes were allegedly laundered through shell corporations and used to buy exotic cars and luxury real estate.In another example, a defendant allegedly exploited telehealth regulation expansions to submit fraudulent claims to Medicare for telemedicine encounters that never happened, according to the DOJ. Telehealth regulations had been broadened after Covid-19 was recognized as a national emergency to give Medicare beneficiaries greater access to a wider range of services so they could avoid risky travel to health-care sites. Here are some of the cases the DOJ announced it is prosecuting:In Arkansas, a man who owns two testing laboratories was charged with health-care fraud in connection with an alleged scheme to defraud the U.S. of more than $88 million. The man allegedly used access to beneficiary and medical provider information from prior lab testing orders to submit hundreds of fraudulent claims for urine, drug and other tests. Some of the falsely submitted claims were for beneficiaries who were already dead.A doctor in New Jersey allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries that attended a Covid-19 testing event that he participated in. The man also allegedly billed Medicare for services to beneficiaries that he never provided, totaling about $19 million in health-care fraud schemes.Another man in the state who was a partner at a diagnostic testing lab allegedly offered kickbacks in exchange for respiratory pathogen tests that were improperly bundled with Covid tests and billed to Medicare. The man allegedly paid and received bribes in a scheme totaling $5.4 million.In New York, charges were brought against two people who owned several pharmacies and sham pharmacy wholesaling companies for allegedly committing health-care fraud, wire fraud and money laundering totaling $45 million. The two and their co-conspirators allegedly acquired billing privileges for multiple pharmacies. They also allegedly submitted fraudulent claims to Medicare by abusing emergency Covid-19 rules to avoid otherwise applicable limits on refills for expensive drugs. The DOJ news release said the defendants “allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme.” More

In this articleHCAGOOGLCNBC’s Jim Cramer expressed optimism Wednesday toward Google’s new health-care venture with hospital chain HCA Healthcare, heralding the deal as the latest positive catalyst for shares of the technology giant.”It’s the kind of thing that makes you want to buy the stock, and even though Google’s up 36% for the year … I think it’s got a lot more room to run,” said the “Mad Money” host, who currently holds a favorable outlook on the broader cohort of FAANG stocks.Under the partnership with HCA Healthcare, Alphabet’s Google Cloud will work to develop algorithms based on patient records from the Tennessee-based provider that attempt to improve efficiency and patient outcomes.”I have been waiting for Google to do something big in health care besides partnering with Dexcom for diabetes analytics. I’ve been waiting for years. I think this is it,” Cramer said.Cramer acknowledged that previous attempts to disrupt patient care using artificial intelligence, such as one from IBM’s Watson, haven’t lived up to grand ambitions. However, he said he believes Google’s foray could be more successful, in part, because the company is working so closely with a health-care provider.”You’ve got to understand, the health-care industry has all of these electronic medical records and they don’t do anything with them,” Cramer said. But harnessing them in any way that generates more empirical data and diminishes reliance on anecdotal evidence would help patients, he added.”That’s what Google’s doing with this program. If it works, it is a gigantic deal,” Cramer said.Shares of Google-parent Alphabet rose 0.74% Wednesday to $2,380.31. HCA Healthcare’s stock rose 0.77%, finishing the session at $211.83. Shares of the company, which has a market cap around $71 billion, are up nearly 29% year to date.Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

In this articleDISA masked couple poses for photos in front of a statue of Walt Disney and Mickey Mouse, with Sleeping Beauty Castle behind, at Disneyland Resort in Anaheim, CA, as visitors return to the park with covid-safety restrictions in place, including the park only being at 25% capacity, Monday, May 3, 2021.Jay L. Clendenin | Los Angeles Times | Getty ImagesDisney’s California-based parks will welcome non-California natives starting June 15, the company said Wednesday.Disneyland and Disney California Adventure reopened for California residents only on April 30 after shuttering during coronavirus lockdowns.In a company blog post, Disney reiterated that California state guidelines strongly encourage theme park-goers to be fully vaccinated against the virus or to obtain a negative Covid test before entering parks.Guests will be required to wear face coverings during their visit to the Disneyland Resort regardless of their vaccination status.Disney has been amending its health and safety guidelines as Covid vaccinations continue across the United States and daily new coronavirus cases fall.”We’re going to be able to raise our capacity limits; we’ve actually already started that,” CEO Bob Chapek said during the company’s earnings call in early May.California is set to lift all Covid restrictions on June 15. Theme parks are currently limited to 25% capacity. More

The William Hill Sportsbook opened Wednesday inside the Capital One Arena in Washington, marking the first sportsbook to operate inside of a U.S. arena.The development shows the “breathtaking” change in the relationship between sports leagues and team ownership and sport betting companies over the past several years, said Tom Reeg, CEO of Caesars Entertainment. Other sports owners are watching closely to see if a similar model could be applied inside their arenas.”This feels very natural to be in this building and to be able to walk into the arena and into a venue like this, to place bets, and I think you’re going to see this continue throughout the country,” Reeg said, in an interview with CNBC. Smack dab in the middle of the nation’s power center, the two-story, 18,000-square-foot venue will serve as a 365-day-a-year destination for bettors. Gamblers will have access to up to 20 betting windows, and over a dozen self-serve kiosks to place wagers. The Sportsbook also features a state-of-the-art broadcast studio that will host Monumental Sport’s “By the Book” sports betting show and the new facility boasts dining from Michelin-rated Chef Nicholas Stefanelli.In the three years since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act, the sports world has been turned on its head. The law, also known as PASPA or the Bradley Act, prohibited most states from offering legal sports wagering, In 2017, NFL Commissioner Roger Goodell held a news conference after an owners’ meeting in Phoenix and doubled down on the league’s and owners’ opposition to legalization. “I think we still strongly oppose legalized sports gambling,” Goodell said at the time. “The integrity of our game is number one. We will not compromise on that.”Today, many of the same people that opposed sports gambling, see it as a new frontier, especially as pandemic-related financial losses continue to pile up. Sports teams have also found that betting not only brings in more cash, but more engaged fans.Monumental Sports and Entertainment owns multiple Washington-area sports teams, including the Capitals and the Wizards. Its CEO, billionaire Ted Leonsis has pushed hard for sports leagues and owners to embrace legalized sports betting.”You look around this Sportsbook,” Leonsis said. “It feels like day trading, right, for the millennial and Gen Z, very highly educated, highly compensated person that [can] come and buy season tickets — buy tickets for thousands of dollars — to now have a rooting interest in, to be able to come in and enjoy how all this data is presented. It’s very synergistic for the leagues and teams.”The William Hill Sportsbook is the only new business to open in downtown Washington during the pandemic, and the money it has generated has helped boost the district’s revenue. Caesars has a growing number of ventures inside athletic facilities. Its deal with the Arizona Diamondbacks gives it market access to mobile betting and exclusive sponsorship opportunities. Caesars has also finalized a multiyear agreement with Major League Baseball to become an authorized gaming operator of the league, in addition to its recent deal with the National Football League.The partnership deals are part of a larger industry trend as professional sports leagues embrace sports betting. The National Basketball Association has made various deals with The Score, DraftKings, William Hill and MGM Resorts, among others.And the NFL — whose commissioner was so staunchly opposed to legalized sports betting — now has three official gaming partners, DraftKings, FanDuel and Caesars.In February, the NHL added its fourth sports betting partner with PointsBet, taking a equity stake in the company.”The reality is you’ve got to adapt to the way your customer wants to consume your product, and sports betting really fits where the world is today. … We want constant activity, constant action, and sports betting feeds right into that,” said Reeg. More

In this articleWMTGPSGap and Walmart are launching an exclusive home decor brand, Gap Home. It will launch on the big-box retailer’s website and eventually be sold at stores.WalmartWalmart has inked a multiyear deal with Gap to create a home goods brand, as the discounter looks to drive more online sales and the apparel retailer hopes to strengthen its brand among shoppers.The brand, Gap Home, will launch on Walmart’s website on June 24, and eventually bring the most popular items to some of the big-box retailer’s stores. It will start with about 400 pieces of bedding, bath and decorative accessories. The initial collection will range in price from $15.88 for a denim-styled pillow to $64.98 for a king comforter set.Financial terms and the duration of the deal were not disclosed. Yet both companies said the brand is the start of a long-term partnership. Anthony Soohoo, Walmart’s executive vice president for home, said customers should expect to see many denim- and chambray-inspired collections over the years.”It’s not a capsule collection,” he said. “It is a relationship that we believe we want to build, that is enduring for us.”With the launch, Walmart will expand further into home and fashion, generate buzz and potentially woo new customers. The retailer has added more general merchandise, from furniture to apparel, to its website as a way boost online sales and turn e-commerce into a profitable business. Walmart’s e-commerce sales in the U.S. grew by 79% last fiscal year, compared with the year prior as the pandemic pushed more shoppers online.Walmart has launched other exclusive home brands, including The Pioneer Woman with celebrity chef Ree Drummond. The retailer has expanded that line beyond cookware with food, clothing and more.WalmartSoohoo pointed to Walmart’s approach with The Pioneer Woman, another exclusive home brand developed with celebrity chef, Ree Drummond, and named after her cookbooks and Food Network show. After initially starting with cookware, the line now includes grocery items, clothing and more. He said it’s become one of the most popular brands at Walmart, inspiring some customers to line up outside stores when new collections drop.The retailer has other private labels in the home category, too, including several developed with actress Drew Barrymore and another inspired by the magazine, Better Homes & Gardens.The discounter is also riffing off of a strategy of its big-box rival. Target has gained traction with exclusive brands and collaborations — such as a limited-time home goods collection with Levi Strauss & Co. earlier this year and Hearth & Home, a brand developed with Chip and Joanna Gaines’ company, Magnolia.With strong sales throughout the pandemic, Walmart and Target have become the new spin on department stores with a mix of merchandise, but in convenient, off-mall locations.Gap is, meantime, working to win back shoppers and sales after taking a hit during the pandemic. Even prior to the health crisis, it was struggling to stay relevant with many consumers. Its namesake Gap label and Banana Republic brand have been weak spots, while its bargain-friendly Old Navy banner and booming Athleta business, which sells women’s workout gear, have provided pockets of growth. It’s hoping to find the right mix of stores, across all of its brands, that drives sales gains in the years ahead.For fiscal 2021, Gap has forecast net sales to be up a mid- to high-teens percentage compared with 2020 levels. The retailer is set to report earnings after the bell on Thursday.Mark Breitbard, CEO of Gap’s global operations, said the retailer has looked for new ways to capitalize on its brand through its licensing agency, IMG. For Gap, the deal gives the company a more predictable revenue stream and puts its brand in front of new customers who might not have been shopping its stores before, he said.Gap and Walmart began serious discussions about the home brand in December.”It felt like it could be a super interesting partnership for us, and that’s how the conversations began,” Breitbard said. “And they just gained steam, and now we have two strong American brands kind of working together.”The retailers will promote the brand together, though Walmart will distribute it. Both groups of customers will get emails about the launch. Gap’s website will highlight some of the home brand’s items and direct shoppers to Walmart’s website.Breitbard said Gap may place some merchandise in select Gap stores, too. In the future, he said Gap may license its brand to other retail partners in categories outside of apparel and home.”What we are transitioning from is being a strictly vertical retailer selling apparel,” he said. More