Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Kudlow pointed to strong retail sales and low unemployment as signs that the U.S. economy remained strong.Marketsread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
The MacBook Pro recall and its subsequent ban from flights underscores the increasing brand risk from problems with lithium-ion batteries.Technologyread more
Experts say the timing of Amazon executives' contributions to Rep. David Cicilline likely reflect the company's heightened urgency over growing regulatory scrutiny.Technologyread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
Coinbase security chief Philip Martin explains, "Possession of a key is possession of your currency. What that means is that you can't revoke a cryptocurrency key, if that key...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
The Supreme Court could strike down the constitutionality of the Consumer Financial Protection Bureau, an agency Elizabeth Warren has likened to her child and which Justice...2020 Electionsread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
The "Mad Money" host gave an exception to AutoZone's buyback program that was coupled with a growth story, but said it's "pathetic" that shares of Gap gained just 5 points from $20 to $25 since early 2008. He was critical that the retailer opted for stock buybacks, cutting outstanding shares more than half, in lieu of organic growth opportunities over the years.
Gap's decision to separate Old Navy into an independent publicly traded company from its other brands unlocked value, sparking the stock's 16 percent rise following the Thursday announcement, Cramer said. The company posted mixed results for the holiday quarter.
"I know this may seem like pure financial legerdemain ... but I think it's a really fantastic idea and the move makes a ton of sense," he said. "Frankly, it's about time."
With the spin off, Old Navy can grow on its own, Cramer said. The host pointed out that its same-store sales grew 3 percent despite an "anemic" fourth quarter. On the other hand, the flagship store Gap saw same-store sales shrink 5 percent, Cramer said.
The remaining brands, which includes Gap, Banana Republic, Intermix, Athleta and Hill City, will be clustered under a separate entity called "Newco" in the interim. Cramer said that umbrella is in "urgent" need of a new plan, suggesting that CEO Art Peck close all underperforming stores to focus on the good ones and find a new name.
"In short, buybacks don't mean squat without a compelling growth story. That's why Art Pell wants to change the narrative in one fell swoop," he said. "If he can spin off Old Navy then close the underperforming stores that remain under the Gap umbrella, I think you'd see a dramatic comeback with this stock."
Gap plans to close about 230 specialty stores over the next two years and expects 40 percent of future sales to come online.
"Think of it as addition by subtraction," Cramer said. "We've seen it work time and time again, which is why I actually think after a lot of analysts poo-pooed it that the new Gap could have a lot more upside."