Mad Money w/ Jim Cramer – Episode Summary (May 21, 2025)

Released on May 21, 2025

1. Market Overview: A Turbulent Day

Jim Cramer opens the episode on a somber note, addressing the significant downturn in the stock market. He reports a Dow plunge of 817 points, an S&P drop of 1.61%, and a Nasdaq tumble of 1.41% (01:26). Cramer emphasizes the critical factors contributing to this decline:

• Rising Interest Rates: Cramer explains, “Stocks are going down because interest rates keep going higher” (02:15). He highlights the bond market's influence on the stock market, noting that higher treasury yields make bonds more attractive compared to stocks.

• Economic Uncertainty: The transition to higher long-term interest rates is slowing business growth and hurting earnings. “The economy runs on credit, always has. And the cost of that credit is going higher and that will slow business and hurt earnings” (01:45).

Cramer also touches on the impact of recent tariffs and governmental policies, particularly under President Trump, stirring uncertainty among CEOs. He remarks, “It's almost like we have a centrally planned economy” (03:05), criticizing the unpredictability affecting business operations and consumer prices.

2. Economic Conditions and Government Policy

Delving deeper into the economic landscape, Cramer discusses the April slowdown and its aftermath:

• Tariff Effects: Cramer notes that companies have struggled to adjust to tariff changes, with many still reliant on Chinese imports despite efforts to reduce exposure. “It's shocking how reliant companies still are on China” (04:20).

• Budget Deficit and Tax Bills: Addressing the proposed budget legislation, he states, “If you want interest rates to go down, the government has to cut the budget deficit” (05:10). Cramer warns that large tax cuts could exacerbate the deficit, leading to higher interest rates.

Despite the bleak outlook, Cramer offers a message of hope, suggesting that once budget negotiations conclude, a new growth-oriented narrative could emerge. “We're going to grow our way out of the deficit” (07:30).

3. Interview with Joe Hendricks, CEO of CSX

Cramer shifts focus to the railroad industry, interviewing Joe Hendricks, President and CEO of CSX (15:29). The discussion highlights:

• Economic Indicators: Hendricks acknowledges current challenges but remains optimistic about future growth. “Interest rates coming down would help because the interest rate sensitive parts of the economy, housing, autos...so that's a big opportunity for us” (16:04).

• Infrastructure and Investment: With 37 plants opened this year and ongoing infrastructure projects, Hendricks emphasizes CSX's role in supporting economic growth. “We had 37 plants open on our network this year so far already” (17:36).

• Resilience and Strategy: Despite setbacks from weather events and operational issues, Hendricks assures improvement and resilience. “We're showing signs of being able to deliver the execution we want” (19:35).

Cramer concludes the interview by praising CSX's commitment to veterans and workforce development, highlighting the company’s dedication to building a robust and resilient network.

4. Interview with Mark Glaser, CEO of Phillips 66

In the aftermath of a contentious proxy fight, Cramer interviews Mark Glaser, Chairman and CEO of Phillips 66 (25:07). Key discussion points include:

• Proxy Battle Outcome: Glaser describes the proxy fight with Elliott Management as a “great outcome for shareholders” despite the split decision (26:17).

• Business Strategy: Glaser outlines Phillips 66’s focus on core areas in the Midcontinent U.S., emphasizing integrated operations and efficiency improvements. “We're two and a half, three years into a several year process” (26:49).

• Future Outlook: Addressing market volatility and the bond market's influence, Glaser remains committed to delivering shareholder value through operational excellence and strategic investments. “Our job is to drive shareholder value day, every day no matter what” (31:27).

Cramer and Glaser find common ground in their commitment to enhancing business operations and navigating economic challenges, fostering a collaborative outlook for the future.

5. Interview with Sridhar Ramaswamy, CEO of Snowflake

Cramer turns to the tech sector, interviewing Sridhar Ramaswamy, CEO of Snowflake (33:15). Highlights from their conversation:

• Record Performance: Ramaswamy celebrates Snowflake’s first billion-dollar quarter, attributing success to efficient AI integration and strong customer relationships. “We have over 5,200 customers that are using our AI products weekly” (34:17).

• Strategic Partnerships: Snowflake’s collaborations with tech giants like Microsoft and AWS are crucial to its growth. “We work very well with them...it's all about value creation” (36:45).

• Product Cohesion: Emphasizing the importance of cohesive product integration, Ramaswamy explains how Snowflake ensures seamless functionality across its platforms. “By cohesion we mean that if you build a chatbot on top of Snowflake, it's going to obey all of the governance rules” (35:50).

• Future Prospects: With a 124% net revenue retention rate, Ramaswamy is optimistic about Snowflake’s continued growth and its pivotal role in the AI revolution. “We're able to do this by practicing what we preach, by being more efficient with AI” (37:50).

Cramer praises Snowflake’s robust performance and strategic vision, positioning it as a beacon of stability and innovation in a volatile market.

6. Lightning Round: Quick Takeaways and Viewer Questions

The Lightning Round segment features rapid-fire questions from callers, providing concise investment insights:

• Marvell (Ticker: MRVL): Cramer recommends buying, citing strong leadership and current price as an attractive entry point (40:00).

• Accenture (Ticker: ACN): Advises holding, highlighting CEO Julie Sweet’s strategic prowess despite recent stock volatility (11:24).

• Micron (Ticker: MU): Suggests a trading strategy rather than long-term investment due to current market conditions (41:07).

• Lucid Motors (Ticker: LCID): Cramer expresses skepticism, recommending Rivian as a stronger alternative in the EV sector (41:12).

These brief advisories offer listeners actionable insights tailored to varying market scenarios.

7. Closing Remarks: Looking Ahead

In his concluding remarks, Cramer reflects on the day's tumultuous market events but emphasizes patience and the potential for market recovery. He underscores the importance of focusing on fundamentally strong companies poised for growth once economic conditions stabilize. “Remember, we are the richest country in the world. We can kick the can down the road for decades” (07:50).

He wraps up the episode with an optimistic outlook, encouraging listeners to stay informed and patient as the market navigates through its current challenges.

Notable Quotes with Timestamps

• Jim Cramer on Rising Interest Rates: “Stocks are going down because interest rates keep going higher” (02:15).

• Cramer on Government’s Influence: “It's almost like we have a centrally planned economy” (03:05).

• Joe Hendricks on Economic Opportunities: “Interest rates coming down would help because the interest rate sensitive parts of the economy, housing, autos...” (16:04).

• Mark Glaser on Shareholder Value: “Our job is to drive shareholder value day, every day no matter what” (31:27).

• Sridhar Ramaswamy on AI Integration: “We have over 5,200 customers that are using our AI products weekly” (34:17).

• Cramer’s Optimism: “Better prices are coming. I can promise you that” (08:20).

Conclusion

This episode of Mad Money delves into the intricacies of the current economic landscape, featuring in-depth interviews with industry leaders and offering actionable investment advice through the Lightning Round. Jim Cramer adeptly navigates through market challenges, providing listeners with both critical analysis and a hopeful perspective for future growth.

Time-Stamped Transcript References

• 01:26 – Jim Cramer introduces the episode and discusses the market downturn.
• 02:15 – Discussion on rising interest rates affecting stocks.
• 03:05 – Cramer's critique of government influence on the economy.
• 04:20 – Impact of tariffs and reliance on Chinese imports.
• 05:10 – Budget deficit and tax bill implications.
• 07:30 – Message of hope post-budget negotiations.
• 11:24 – Caller interaction regarding Accenture.
• 15:29 – Interview with Joe Hendricks of CSX.
• 16:04 – Economic opportunities discussed by Hendricks.
• 17:36 – CSX’s infrastructure projects.
• 19:35 – Resilience and improvement in CSX operations.
• 25:07 – Interview with Mark Glaser of Phillips 66.
• 26:17 – Outcome of the Phillips 66 proxy fight.
• 26:49 – Phillips 66’s business strategy.
• 31:27 – Mark Glaser on driving shareholder value.
• 33:15 – Interview with Sridhar Ramaswamy of Snowflake.
• 34:17 – Snowflake’s AI integration and performance.
• 35:50 – Importance of product cohesion at Snowflake.
• 36:45 – Snowflake’s strategic partnerships.
• 37:50 – Snowflake’s retention rate and growth.
• 40:00 – Lightning Round advice on Marvell.
• 41:07 – Lightning Round advice on Micron.
• 41:12 – Lightning Round advice on Lucid Motors.
• 44:55 – Lightning Round conclusion.
• 07:50 – Cramer’s optimistic outlook.

Note: Timestamps correspond to the transcript provided and are included for reference.