CNBC's Jim Cramer on Tuesday applauded Facebook for its planned efforts to give people in troubled communities greater access to the digital age of money.
The social media giant announced that it will delve into the cryptocurrency world with an initiative called Libra, a nonprofit independent of the company expected to start in the first half of 2020. The project has support from payment companies like Visa, Stripe, PayPal and others.
"Now this is a really positive thing. I have no problem with businesses doing good things to improve their public image," said the "Mad Money" host. "And in the end, I wouldn't be surprised if Libra turns out to be a huge part for Facebook shareholders, giving you another reason to buy the stock if you need more to do so."
Facebook over has "done a lot to destroy its reputation," Cramer said. The company has been investigated by both Washington, D.C. and the public about its data and privacy practices.
"I think this Libra non-profit initiative is run by David Marcus ̵
Libra can serve as a monetary alternative for individuals in the inner city who are in "bank deserts" and others in foreign countries with unstable currencies, Cramer said. Check cashing operations have a "really detrimental impact on poorer neighborhoods," he said.
While the Libra currency will be run as a separate entity by Facebook, the social platform will launch a digital wallet app called Calibra for users to save money for free and make transactions via Messenger and WhatsApp. Facebook will not profit directly from Libra, but has created its own digital wallet called Calibra to save and exchange coins.
"Facebook is not trying to make money from this, which could start next year … [and it’s] the right to show Congress that hundreds of millions of people still trust them and need them," Cramer said. "They are really desperate for better PR, who can blame them for not wanting to be raked over the bullets by lawmakers all over the world for the rest of their lives."
Facebook's move to cryptocurrency is a way to save face, but the program could cut banks and credit cards out of the mix, he said. Therefore, payment companies go behind it, he added.
"It would be better if Facebook didn't do something shady at first, but the whole business model is based on using your data to bring targeted advertising," Cramer said.
Get His Full Thoughts Here
President Donald Trump Delivers Comments in the Roosevelt Room at the White House in Washington on May 9, 2019
Jonathan Ernst | Reuters
Cramer welcomed Tuesday's China-fueled rally, which sent the stock market higher.
The Dow Jones Industrial Average got over 353 points, S&P 500 advanced 0.97% and the Nasdaq Composite moved 1.39% as investors expect a US China trade deal and that the Federal Reserve lowers interest rates on Wednesday.
But the host doubts a trade deal that is expressed when President Donald Trump meets with President Xi Jinping at the G20 summit, which starts next week in Japan. 19659002] "Because we've seen this movie before. I think President Xi is called Trump as he did before the Buenos Aires meeting when he tried to stop the first round of tariffs from rising to 25%," Cramer said. . "But then the speakers talked and the tariffs went up. I think we can see a repetition."
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Lance Fritz, CEO, Union Pacific
Scott Mlyn CNBC
President Donald Trump has the right goal to resolve ongoing trade issues with China, but his approach could have far-reaching implications for the US economy, said Union Pacific CEO Lance Fritz to CNBC.
It's time to keep Beijing's feet to the fire and push them to respect international trade standards in the World Trade Organization, yet tariffs of billions of dollars of imports from the country are damaging local economies, he added.
"I think it will eventually hurt the US economy if they continue too long," he said in a set of Cramer. "The president used them as an effective tool to get China to the table, but I think we need to be careful about how deep and far we use it as a tool, because it will certainly create a problem with our economy. "  Get More Here
Doubts have to wake up and really look at the results of Starbucks and Dunkin Brands brands.
After both stocks have lost much of their 2018, the two coffee chains have "tame the bears" with their big run in 2019, CNBC's Jim Cramer said Tuesday.
Dunkin's shares have risen 25% year to date, while Starbucks has increased 29%. The host suggests that investors add the companies to their shopping lists.
"Sometimes you have to be disciplined. Starbucks and Dunkin Brands are two great coffee chains, but if you don't own them already, I think it might not be the right time to start a position," he said. "If one of the stocks is brought down for some reason, you have my blessing to start buying."
Going deeper here
From the charts
Shoppers pass an Under Armor store in White Plains, New York.
Scott Mlyn CNBC
Cramer takes a look at the chart's action in Lululemon and Under Armor as interpreted by Stock Market Mentor founder and his RealMoney.com colleague Dan Fitzpatrick.
Fitzpatrick believes that the two stocks have more room to run after they both have skyrocketed in recent weeks, but it may be too late to own them. Besides that, Cramer is no fan of hunting.
Cramer breaks down the chart analysis here
Cramer lightning strike: I think you should buy shares in Spotify
In Cramer's lightning round, the "Mad Money" host's zippers through his thoughts on callers & # 39; stock pick.
Atlassian: "I say they are great and I like them." Purchase, purchase, purchase.
Spotify: "I think you should buy Spotify. I think they are doing a remarkable job and I like the podcast decision."
Prologis: "I believe that the store in question is great.
Note: Cramer's charitable trust owns Facebook shares.
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