Mad Money w/ Jim Cramer 10/16/25

Summary

Mad Money w/ Jim Cramer – October 16, 2025

CNBC Podcast Summary

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Episode Overview

On this special San Francisco edition, Jim Cramer explores the market turbulence sparked by regional banks’ bad loans and the economic tug-of-war shaping Federal Reserve policy. He interviews leaders from top companies—Lyft, Prologis, and Okta—to dig into themes of resilience, technological change (especially AI), logistics’ future, and cybersecurity. Cramer also delivers his signature "Lightning Round" on individual stocks and wraps with a cautionary tale about insider selling in speculative markets.

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Key Discussion Points & Insights

1. Market Outlook & Bad Bank Loans (01:40–09:00)

• Market Downturn Analysis:
  • The Dow fell 301 points, S&P down 0.63%, Nasdaq off 0.47%.
  • Trigger: Regional banks hit by a spate of bad loans—clear evidence the economy is softening.
  • Cramer: “Nothing motivates the Fed to move faster than credit losses, because they're a definitive sign that the economy is going south.” (03:11)
• Implication for Federal Reserve:
  • Cramer expects these credit losses will push the Fed toward a rate cut, since credit issues “make it much, much easier for the Fed to go with the former analysis” (i.e., cutting rates vs. holding steady to fight inflation).
  • Lower rates could revitalize housing, ease business expansion, and increase the appeal of dividend stocks.
• The ‘Cockroach Theory’ and Bank Caution:
  • Referencing Jamie Dimon’s analogy: “When you see one cockroach, there are probably more.” (06:31) Cramer mirrors this, warning there may be more bad loans lurking.
  • He believes, however, that banks are more prudent than past cycles, and that pain should remain 'contained' within financials.
• Three-Part Stock Market:
  • Cramer divides the market: data center-related stocks, those owned by speculators, and “real economy” (industrial/service) stocks.
  • “Those real economy stocks will be the winners in the rate cut scenario that I see playing out.” (08:33)

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2. The Lightning Round: Quick Stock Takes (38:46–42:49)

• On Building Stock (BLD): “Stock is well ahead of where it should be. … Do some trimming.” ([38:52])
• On Critical Metals (CRM): “It is time to change critical metals. You need President Trump to go in there by 10% of the company. I think it's going to happen.” ([39:35])
• On Verizon (VZ) for Dividends: “It’s kind of like a bond that can move up a little bit. … With a 7% yield, I think it's a really good idea.” ([39:56])
• On Revolution Medicine: “I always say yes to the speculative stocks that are trying to cure cancer. Someone gets it right.” ([40:18])
• On Credo Technology: “I agree with your analysis. … That’s going right into the homework file.” ([41:02])
• On Marietta Materials: “Just hold it. … It's just a great long term hold.” ([42:30])

(For more stock takes, see full transcript section.)

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3. 1-on-1 with David Risher, CEO of Lyft (12:51–20:29)

Key Themes: Turnaround, Tech Partnerships, Senior Accessibility, Growth

• Cramer lauds Risher’s turnaround: “It's one of the great turnarounds I've ever seen ... it did take a miracle.” ([20:11])
• On Driving Lyft Cars: Risher continues to drive for Lyft himself: “You get to experience the driver experience. … And I always learn something about why people choose Lyft or even the other guys.” ([13:05])
• Driver Retention: Lyft has a “29-point advantage” for drivers who use multiple apps. “Drivers who drive on our platform tend to like it a lot.” (13:39)
• Innovation for Older Adults: Launched “Lyft Silver” for seniors, overcoming independence challenges. “It took me two and a half years to get this product out the door … it’s been out in the market for about six months now. Incredibly successful.” ([15:20])
• Waymo Partnership: Lyft and Waymo to launch a hybrid network in Nashville with both drivers and self-driving cars. “They have amazing technology … it’s a great rider experience.” ([14:23])
• Expansion: Lyft has expanded into Canada, Puerto Rico, now Europe via acquisition of “Freenow” (taxi aggregator in nine countries). ([17:22])
• Financial Turnaround & Stock Buyback: “We generated about $930 million in cash. … Taken a company and it's a comeback.” ([18:31])
• Partnerships (Chase, United): Risher highlights strategic partnerships as a “big part of what's driven our quarter after quarter after quarter growth.” ([16:26])
• AI & “Instant Pickup” Vision: “Magic, AI, Data science, machine learning … That’s a superpower.” ([17:14])
• Personal Drive: “I jump out of bed every morning. … I wish it were Monday. … I want to serve and connect.” ([19:29])

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4. Interview: Hamid Moghadam, CEO of Prologis (22:25–28:34)

Focus: Logistics, Warehousing, Data Centers, Global Trends

• Market Set-up: “This is one of the most compelling setups I’ve seen in 40 years.” (22:53)
  • After COVID, overbuilding led vacancy rates to rise, but demand is returning, especially from companies with “strong balance sheets.” ([23:10])
  • Regulatory barriers now restrain further new supply.
• Latin America Growth: “Latin America is on fire. … The E-com wave that we got in the beginning of COVID, they're getting now.” ([25:02])
• Data Center Buildout: Prologis delivers turnkey solutions including reliable power—a competitive edge. “[Power] is the governor. … Companies like us … can deliver faster for our customers.” ([25:53])
• Renewables: Prologis was early on solar, now leverages rooftops for power. “It wasn’t because we were trying to go to heaven … it was the cheapest form of energy we could generate.” ([26:52])
• E-commerce ‘Multiplier Effect’: “With every passing day, the customers’ expectations for delivery time is getting shorter and their expectations for variety and choice is getting higher. … The only way the math works … is to put more real estate closer to the customer.” ([27:54])
• Cramer’s Praise: “You have been a tremendous teacher to me.” ([28:13])

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5. Interview: Todd McKinnon, CEO of Okta (29:00–38:15)

Focus: AI, Cybersecurity, Identity Management

• Agentic AI as Security Threat/Opportunity:
  • "Agents are exciting … a powerful new identity type … but if the agent’s in the wrong hands, they could do bad things.” ([30:02])
• Identity Security Fabric: Okta introduces the concept—“It should all work together, Jim. It should all be integrated and be low cost and low risk …” ([30:31])
• AI Governance Gaps: “Boards of directors … are saying, do AI, get in production! … I don’t think we’ve done enough to actually give the governance, the security and the control.” ([31:19])
  • Without proper controls, “we’re going to undo 10 years of progress in security.” ([31:46])
• Federal, Defense Work: Despite shutdowns, “the systems don’t shut down. … Identity requirement is even getting more and more.” ([32:54])
• Industry Consolidation: “Companies need to pick the right points of consolidation … identity is a good point … I talked to companies that have 50 identity vendors and they can consolidate …” ([35:12])
• Global Opportunity: “What you see is that Okta has always been about the new wave of technology … the opportunity is global.” ([36:10])
• On Ransomware: Spending on cybersecurity is massive, but identity remains 80% of attack vectors: “By solving identity-based attacks, we can solve all these attacks.” ([36:49])
• Big Cyber Risk is Often with New/Unprotected Systems: “A lot of times ... it's the new things, automated systems ... that aren't used to securing things ... are the most at risk.” ([37:33])

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6. Cramer’s Market Take: Insider Selling & Speculative Mania (42:50–47:06)

• Caution on Overheated Speculative Stocks:
  • “Every speculative mania is ultimately brought down by greed. Specifically, the greed of insiders who decide to take advantage of the monster moves in their stocks…” ([42:50])
  • Uses AMC as a case: CEO Adam Aron’s timed selling triggered “the end of the move higher.” ([44:06])
  • Main lesson: “Be smart like Aron. Do some estate planning like he did. Sell some of your stock. At least take out your cost basis so you’re only playing with the house’s money.” ([46:30])
  • “Never confuse stocks with cash.” ([46:19])

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Notable Quotes & Timestamps

• On Rate Cuts: "Lower interest rates do many things ... They make dividend stocks more attractive in comparison to the bond market because treasury yields have suddenly fallen ..." — Jim Cramer (04:10)
• Banking Sector Pain: "[Bad loans] are good for the stock market because these bad loans won't hurt profits of any other than the banks. The pain will be contained, I think." — Jim Cramer (07:45)
• Tech's AI Spend: "We're embarking on the fourth industrial revolution and the spend is a necessity." — Jim Cramer (07:20)
• Lyft Turnaround: "It's one of the great turnarounds I've ever seen and ... did take a miracle." — Jim Cramer to David Risher (20:11)
• Prologis Market: "This is one of the most compelling setups I’ve seen in 40 years." — Hamid Moghadam (22:53)
• AI Security Threat: "Agents are exciting ... but if the agent's in the wrong hands, they could do bad things as well." — Todd McKinnon, Okta (30:02)
• Speculative Stocks: "Never confuse stocks with cash." — Jim Cramer (46:19)

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Episode Structure & Useful Timestamps

| Segment | Timestamp | |-----------------------------------------------------|---------------| | Market Monologue: Bad Loans & Rate Cuts | 01:40–09:00 | | Lightning Round: Quick Stock Analysis | 38:46–42:49 | | Interview: David Risher, CEO of Lyft | 12:51–20:29 | | Interview: Hamid Moghadam, CEO of Prologis | 22:25–28:34 | | Interview: Todd McKinnon, CEO of Okta | 29:00–38:15 | | Insider Selling Discussion | 42:50–47:06 |

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Tone & Language

Cramer's tone throughout is lively, energetic, and direct, blending sharp financial analysis with accessible teaching. Interviews feature direct, often personable questioning, quick humor, and real-world examples—mirroring the streetwise voice listeners expect from “Cramerica.”

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Conclusion

This Mad Money episode delivers both immediate stock advice and broader investing lessons. Cramer highlights rising financial sector risk as a possible trigger for lower rates—potentially offering opportunity in dividend and "real economy" stocks. Interviews showcase company leaders facing technological disruption and seizing new markets, while Cramer ends with a reminder: don't let gains evaporate by ignoring the warning signals of speculative peaks. As always—do your homework, stay prudent, and, as Cramer says, “Never confuse stocks with cash.”

Transcript

[Jim Cramer]

On Fox one, you can string Fox's biggest moments live. Get out bigger. I can feel the sweat and I can smell it a little bigger. That was genius. Yeah, that's what we talking about. Fox 1. We live for live streaming now.

[Commercial Narrator]

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[Jim Cramer]

Hey, I'm Kramer. Welcome to a special San Francisco edition of Bad Money. Welcome to Cramerica. Other people make friends. I'm just trying to help you make some money. My job is not just entertain, but to educate, to teach. So call me at 1-800-743- CNBC. Tweet me imKramer. Today got real ugly, but at least we finally have something that can make the Federal Reserve itchy to cut interest rates sooner rather than later. Bank Loans gone Bad Nothing motivates the Fed to move faster than credit losses, because they're a definitive sign that the economy is going south. There are early warnings that it's time to ease, and the banking system has now provided us with enough questionable credits in one week that the Fed can move swiftly to slash rates without all that much worry about inflation. Of course, when you have something as grave as credit losses at banks, the market doesn't react well. It's a sign that until the Fed uses perhaps aggressively, banks will make it harder to borrow money. And layoffs could be on the horizon, which is ultimately why The Dow tumbled 301 points today. S&P dropped 0.63%. Nasdaq sank 0.47% even though it was up in early morning. Still, the Fed's in A constant tug of war between cutting rates to spur economic growth and leaving rates alone to prevent a resurgence of inflation. With the regional banks getting crushed by bad loans, it's much, much easier for the Fed to go with the former analysis. Lower interest rates do many things. They can make housing more affordable, cranking up an industry that, you know, it's probably in the worst recession in ages. They can make it easier for businesses to expand. And they make dividend stocks more attractive in comparison to the bond market because treasury yields have suddenly fallen to lower levels than anyone was expecting. Boy, did that happen today. Many of the consumer packaged goods stocks, for example, are starting to put in some serious bottoms high like Campbell's, maybe General mills. They're following PepsiCo, which had its yield rise to 4% on stock to price depreciation, not a dividend boost not that long ago, and then saw a stock rocket more than 10 points on a better than expected quarter. Here's some predictions. I think Kimberly Clark could be bottoming. Procter and Gamble already started the process, but much, much more immediately. Lower rates make it easier for borrowers not to default. That's what's so welcome about the bad loans that plague these regional banks. Echoing the cockroach theory that Jamie Dimon talked about on the JP Morgan conference call this week in reference to subprime auto lender Tricolor that went under an auto parts company, First Brands, both of which filed for bankruptcy. As Jamie put it, when you see one cockroach, there are probably more. Sure enough, a couple of cockroaches surfaced almost immediately. The two major bad loans at Zions bank and a soured loan at Western Alliance Bancorp might be on the hook. For now, it's possible there's foul play involved in that multi billion dollar problem of First Brands. Doesn't matter though. A bad loan is a bad loan is a bad loan. And that's good for the stock market because these bad loans won't hurt profits of any other than the banks. The pain will be contained, I think. I also believe the banks are pretty prudent these days. Much more prudent than they used to be, at least when it comes to money lending. Because there's a perception that the Trump administration's employees might hire bank examiners who will go easier in the industry. Look, the president's more pro business than the previous guy. But when I was in Washington running a federal panel at the Federal Reserve bank about what small medium sized banks need to do to succeed, last week the three execs I interviewed all Pleaded for lower rates. The regional bank index, down more than 6% today, makes for a pretty compelling argument to cut them. I believe the bankers. To me, these credit woes just made the case clearer. Now, what do the big institutional money managers glom on to? When we get bank credit issues, they tend not to distinguish between the good and the bad and the ugly of the financial industry. Just go back to the last banking crisis, the miniature one in the spring of 2023, when many banks had balance sheet stress because they owned a lot of low interest bonds At a time when interest rates had a very sudden receipt rise that generated surprising outflows that caused four banks to fail, often hindered by uninsured depositors who wanted their money out fast. All bank stocks went down during that period. That was also the beginning of the run in what became known as the Magnificent Seven. Investors, traumatized by the prospects of credit cards, flooded companies with such deep pockets they never need to borrow money. They fled to big tech companies that, like nation states, were sovereign and didn't need to raise money to expand. Can that happen again? Hard to say. As someone who spent the last four days interviewing tech executives, I can tell you that we spend more time talking about whether tech's in a bubble than we do about what the future of tech actually looks like. There's been so much money spent on artificial intelligence by these seven companies that some assume that they'll finally end up being cash trapped. I met very few people who think like I do, which is that we're embarking on the fourth industrial revolution and the spend is a necessity. That controversy could hinder the migration from stressed areas to growth zones. Two years ago, those companies didn't have anything big to spend their money on. Now they do. One thing I did hear over and over and over again is that artificial intelligence is causing companies to spend less on people, more on tech. Once that tech investment is made, these companies will be able to get more out of their workforces, allowing them to grow faster and more efficiently. Of course, there's a whole other group of people who say that if growth is possible with fewer people, why not fire a huge chunk of the workforce and make more money out of the static revenues? Earnings per share can go higher on the same sales when you're more efficient and use artificial intelligence. That said, all this is in flux. We don't know how many cockroaches are out there. The rewards from artificial intelligence aren't nearly as clear as the bulls would have you believe, because it's often too unreliable to be used in important decisions. You know that and I know that. We catch GPTs and mistakes all the time. However, if the ban loans really tend to be made by bad bankers or there's fraud, the Fed cutting interest rates would be simply helping the good banks. That would boost the real economy. What is the real economy, you might ask? Remember, in Mad Money, we have a tripartite stock market. Right now, there's the stocks that are related to the Data center, that's 1. The stocks that are owned by speculators, that's 2. And those that are a part of the actual economy, both service and industrial. The bottom line, those real economy stocks will be the winners in the rate cut scenario that I see playing out. Those stocks have been in the doghouse long enough. Only bad regional loans can spring them. And the credit cavalry's right on time, the speculative ones. Please join the monster sellers we saw today and ring the darn register on at least part of your holdings. Enough money's been made in that cohort already. You don't want to give it back. Let's take calls. Let's go to Ryan in Massachusetts. Ryan. Hey, Jim. How are you doing, my friend? I couldn't be better. How about you, Ryan? I'm doing great. Just wanted to say, Jim, I'm 21, just got into investing, and I love your sage advice. My question is about align Technology. I want you to go. I know it's a low price earnings multiple, but I just think there are a lot of forces against it. Let's move on from that one. Mark in California. Mark. Booyah, Jim. Booyah, Mark. Welcome to the Bay Area. Oh, I love it out here. Thank you so much for having me. What's happening? I got a question about isrg. They did really well beginning of this year. I know tariffs are hitting them. A couple competitors. What do you think?

[Todd McKinnon]

Where are they going?

[Jim Cramer]

You know, I have to tell you, things have gotten tough for these guys. There's a lot of people that have moved in their industry. I think it's a great company, but the stock is telling me, don't buy me, don't buy me. And I'm hearing the stock. All right, look, I think stocks tied to the real economy will be the winners in the rate cut scenario. I see that. I see playing out. And the Calvary. Well, couldn't be coming in a better time on that money. Tonight we have another big west coast show. I'm sitting down with the CEO of Lyft to learn more about how the company is competing in the ever changing rideshare space. Then prologis reported a quarter that shocked the lights out. And with a renewed focus on the data center build out, I'm hearing what's in the pipeline with the company CEO. And while we're out here, we have heard a lot about Agentix, but we have not heard even about what the you can use the Agenics to get in. We need cyber security to stop them. I'm discussing the importance of this technology with OCTA's top graph, so stay with Kramer.

[Show Announcer]

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[Jim Cramer]

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[Show Announcer]

Have a question? Tweet Kramer hashtag madmentions.

[Jim Cramer]

Send Jim an email to madmoneynbc.com or give us a call at 1-800-743, CNBC.

[Show Announcer]

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[Jim Cramer]

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[Commercial Narrator]

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[Jim Cramer]

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[Show Announcer]

It is great to be here. Great to have you here on the West Coast.

[Jim Cramer]

Thank you. Before we talk about the miracle, I want to talk about something I heard about you and I love it. Tell me, you, you periodically drive a Lyft?

[Show Announcer]

I do.

[Jim Cramer]

And what have you discovered?

[Show Announcer]

So first thing is I love it. It's super fun. I mean, and it's fun for two reasons. It's fun because you get to experience the driver experience. And it's complex. You're simultaneously taking in information, trying to navigate the streets, understanding the vibe of the city, and so on and so forth. And then you're trying to kind of work with whoever's in your backseat and try to give them the best ride of their life. So super, super fun. And I always learn something about why people choose Lyft or even the other guys.

[Jim Cramer]

It does seem, from what I see about the, the difficult to measure retention, that if someone is a driver and they start doing more rides, I think that that means that it's, you're being successful.

[Show Announcer]

I appreciate that. Yeah, we have a 29 point advantage over the other guys for drivers who ride for, who drive for both. And that's really important because how can you provide great service unless you're really committed to doing the job? And the drivers who drive on our platform tend to like it a lot. And it's also super helpful for them. They make money.

[Jim Cramer]

You are a very modest person, but I'm going to ask you, before you got there, what was that level?

[Show Announcer]

Not as high. Not as a lot of that's come over the last couple of years. One of the things I did right at the beginning, as I said, in every car there are two customers, a rider and a driver, and they both matter like that.

[Jim Cramer]

Okay, so you're at the forefront of, of driverless. This partnership with Waymo, which by the way, has been revealed to be the best there is in terms of driverless.

[Todd McKinnon]

How's that working?

[Commercial Narrator]

Great.

[Show Announcer]

So we've just gotten started. So this will be starting sort of on the ground in Nashville next year. But the idea is simple, which is, look, they have amazing technology, self driving, tech if you haven't taken it yourself, it's, you know, it's safe, it knows the rules, you know, it kind of plays by the rules and so forth. So it's a great rider experience. So we're going to be able to create what we think of as a real hybrid network in Nashville, which is to say there'll be drivers on the platform, there'll be self driving cars on the platform, and whichever you want as a rider, you'll be able to get.

[Jim Cramer]

Well, that'll be interesting to see. Which I think pretty much every city in many ways has its own quirks on that.

[Show Announcer]

I bet.

[Jim Cramer]

That's right.

[Show Announcer]

I think different cities have different vibes on that.

[Jim Cramer]

Absolutely. Now, you have been at the forefront of creating new. Not come on, so to speak, but new ways, new reasons why you would take you over the other guy. We remember, we talked about women and connect. I like this idea about the older Americans who aren't as facile with this.

[Show Announcer]

Yes, 100%. Yeah. So that's called lift silver. This is one of the things, here's something I find. So CEOs, people think, oh, CEOs have infinite power. They come in, wave a magic wand, things get done okay. It took me two and a half years to get this product out the door and I was very passionate about it. Part of it is I'm an older guy and so I have maybe a certain amount of empathy for, you know, older parents. And that conversation that you have where it's like, mom, dad, I think it's time for you to give up the car keys. Nobody likes that conversation. So anyway, eventually the whole team rallied around it. It's been out in the market for about six months now. Incredibly successful. It's called lift. It is, it is.

[Jim Cramer]

I think that's great because it's also, it is considerate and does make that conversation easier. I had it and it was just one of the worst moments of my life.

[Show Announcer]

I mean, this is the thing, you know, I don't want anyone to ever have that conversation. Instead, I want them to have the conversation. Mom, dad, I've gotten you lifts over and that's going to make your life better. You're going to be able to come and see the kids soccer games. You're going to be able to be out and about, go to the grocery store, go to your manicure appointment, get to your doctor's appointment and not have.

[Jim Cramer]

To worry about it. I think that's sensational.

[Show Announcer]

Thank you.

[Jim Cramer]

Really is. Now, you are also great at coming up with partnerships Got a new one. Chase Sapphire Reserve.

[Show Announcer]

Yeah, yeah. So we've been working with Chase for years, but we refreshed the whole sort of value proposition. Now you get 5x the points and you get 10 bucks a month. So if you're a Chase Sapphire Reserve car holder, you got to be activating it and using it on Lyft. We also have United Airlines coming up real soon. So we announced that earlier this year. Super excited about that. Going to do a lot of innovative work. I going to think we're with United to sort of bring the experiences together. So really excited. Partnerships are a big part of what's driven our quarter after quarter after quarter growth.

[Jim Cramer]

Well, it's, it makes it so that. Look, I want new and exciting. That's what people want. I also want superpowers. Can you give me superpowers?

[Show Announcer]

I'm working on it. I'd say the superpower we're working on right now, which is instant pickup, I want basically the pickup to be so fast you can't even believe it. It's going to take a little while, but that's a superpower.

[Jim Cramer]

But how could that possibly happen? Happened.

[Show Announcer]

Magic, AI, Data science, machine learning, you know, drivers who want to perform a great service. The whole thing.

[Jim Cramer]

And Europe.

[Show Announcer]

Yeah. So last year, last time you and I talked, we were only domestic, Right. Really only in the United States. Had just kind of gotten a little bit of traction in Canada. But now we've realized, gosh, Canada is growing almost double year on year. We're also live in Puerto Rico, obviously part of the United States, but, you know, not part of the continent. And so as we've looked at the success we've had there, we said, said it's time to spread our wings and go to Europe. So we acquired a company called Freenow. Amazing company. They are the best. What's called a taxi aggregator in Europe. So it's a great way to order a taxi all across Europe, nine countries. And they've been growing. We're going to grow. We're going to grow even better together.

[Jim Cramer]

Right now, when I first met you, stock was single digits. I was very worried. I told you, look, I remember this is going to be tough.

[Show Announcer]

I remember.

[Jim Cramer]

I don't know. I don't know. You've been very successful. A lot of things I'm worried. And you told me, look, I'm aware of the problems. I'm aware of the balance sheet. Yeah. Now, how about this? You reduced the share count for the first time in company's history with a repurchase that's right. That is often, to me, the sign that whatever may be ailing you on balance sheet is no longer alien. You. So tell me, what made you think that it was the right time? Yeah.

[Show Announcer]

So when we first talked, I think over the trailing 12 months, the company had consumed, call it a billion dollars.

[Jim Cramer]

I was like going like this, right?

[Show Announcer]

It was one of those, like, I don't even want to see this number because it's just too big and too negative. Yeah, yeah. So in the last 12 months, I think we generated about $930 million in cash. So very, very different situation right now. We've really taken a company and it's a comeback. I mean, look, this is a. You know, there are big stories that people tell. You know, there's the. There's the tragedy, there's a comedy. This is the comeback story. This is a company that had great, great roots, all sorts of innovation and then maybe lost its way a little bit. And it's been kind of on a tear the last couple of years. So we just looked at the balance sheet, we looked at what the cash we're presenting, and we said, you know what? We can, we can afford to do this and still have money to buy free now and still have money to buy tbr, a company we just announced yesterday and still have money to invest in innovation.

[Jim Cramer]

So, all right, now, you had great private sector and then you went to Africa. You taught more people to read, I believe, than any one person in the world. I think you deserve that because it's what you did. When I looked at your background. Now you've been here and you could say, you know what? I've, I've. I want to declare victory, that we're actually buying back stock. But you seem like you like your job more than ever.

[Show Announcer]

I love my job.

[Jim Cramer]

You love it.

[Show Announcer]

I jump out of bed every morning. In fact, I. On Saturday mornings, I jump out of bed and this is the team. Cover your ears. But I say, like, man, I wish it were Monday. Get back to work. And my wife says, david, settle down, settle down, would you, please? Yeah, I mean, we have so much cool stuff we're working on. And I think, look, our vision, our promise to everyone is we want to serve and connect. I want to serve riders and drivers better than they've ever been served before.

[Jim Cramer]

Safer when for women. That was a deal that changed my wife's mind about two to call.

[Show Announcer]

Hugely appreciate that. And that said, I want every single customer to feel safe, to feel taken care of, to feel like they're getting the best service they possibly can. And I want to connect people in the real world. And I mean, you know this. Like you and I will do stuff on video. It's fun. But it's more fun to do Facebook.

[Todd McKinnon]

No.

[Jim Cramer]

That's why I'm so glad I heard you could be around, because I did want to congratulate you in person. It's one of the great turnarounds I've ever seen, and it was one that frankly, was not easy. I was concerned because it did take a miracle.

[Show Announcer]

Turnarounds are tough, but when they work, they are super, super fun and satisfying. And we got a lot more ahead.

[Jim Cramer]

I know you got more ahead, definitely. That's David Richards, CEO of Lyft. Lyft. You can tell how enthusiastic I am about this. It's an amazing situation. He's just an amazing guy. That money's back in for the break.

[Show Announcer]

Coming up, Kramer's getting a post earnings checkup on the logistics space. Don't miss his exclusive with Warehouse reit. Prologis next.

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[Jim Cramer]

You heard a bit of a slowdown parts of commercial real estate, including warehouses. It's weighed on the entire industry, including the stock of Prologis but this week the company reported a quarter that made people forget the tougher times and it married that with a report of a very positive outlook. Are the cloudy times behind the industry? Can the stock keep running? Let's check in with Hamid Mogadan. He's the co founder, chairman and CEO of a company I have like for many years. Prologis to find out more. Mr. Morgan, welcome back to Money.

[Hamid Mogadan]

Thank you Jim. Good to be with you.

[Jim Cramer]

Okay. You said something on really a buoyant conference call that I loved. You said this is one of the most compelling setups I've seen in 40 years. This was a level of sunshine that brought my, I brought a smile to my face because everyone's got something negative to say. How is this possible?

[Hamid Mogadan]

Well, look, we, we went through a period of significant construction right after Covid because the share of E commerce during COVID went way up and people built anticipating that kind of demand. And vacancy rates went from about 4% to about 7 and a half percent. Some pricing power went when away but today we're at the trough. We already see signs of companies committing to significant amount of space, particularly the strong ones. The small and medium sized businesses haven't quite come back but the ones with strong balance sheets are on, they have their front foot forward and on offense and replacement. Cost of this kind of real estate has shot through the roof. There are many jurisdictions that are putting opposition to development of new logistic facilities. So you're getting set up in an environment where demand is coming back, supply is going to be curtailed and I think companies are going to have a fair amount of pricing power and to get that next unit online, it's going to be a lot more expensive.

[Jim Cramer]

But you have some prime real estate. We do. If you need to add, I am sure even with the inflationary cost you have to do it. It's going to be a really good return on investment.

[Hamid Mogadan]

Absolutely, no question about it. We have 1.3 billion square feet that will benefit from the strengthening market and eventually our development business on the logistics side will be very active again because we're already doing a ton of build to suits and certainly on the data center side we're doing a lot of new development projects. I do excited about that.

[Jim Cramer]

I do want to talk about that but just want to finish that. People should understand that the focus on your last conference call other than the fact that you were retiring soon was the focus on leasing momentum. It just seemed like around the globe, not just the United States and in countries in Latin America, the leasing Momentum is terrific.

[Hamid Mogadan]

Latin America is on fire. And the reason for it is that they're pretty much way behind everybody on E Com and the E Comm wave that we got in the beginning of COVID they're getting now. So, so there is a massive demand and some of the near shoring of manufacturing has been benefiting Mexico. So that's why Mexico and Brazil we're very excited about. But, but it's a, it's a good setup and, and I think when it turns, which it already is beginning to, I think it's going to have long legs because of this cost differential.

[Jim Cramer]

Now let's talk about the data center. You were the first and still I think the only company that talked about both data center and the power needed for the data center. People are kind of waking up the idea, you know, we just can't put up a data center. We have to find the power. And they're also nervous about it. They. But you offer a turnkey solution, right?

[Hamid Mogadan]

Absolutely. I think the real issues on the data center side, to state the obvious, is availability of power, reliable power. But that's not the only constraint. The components that go into these data centers, the supply chain hasn't expanded. So getting the parts to go into a building for a data center are becoming scarcer and scarcer. So companies like us that have a balance sheet and the ability to, to pre commit for purchasing some of these components are in a position to deliver faster for our customers, which is a huge competitive advantage.

[Jim Cramer]

Do you see overbuilding going on in the industry?

[Hamid Mogadan]

No, not, not right now because the power is a governor. And all these four or five large hyperscalers are in a race to build capacity in front of the demand for AI.

[Jim Cramer]

You decided that you wanted to go with as much renewable power as possible. That seemed like you did that before anyone ever wanted it or needed, they knew that they needed. Now it's going about a fashion, but.

[Hamid Mogadan]

It'S never wrong is look, renewable power. It was the surface of our buildings, the roofs that were being underutilized. So we had in effect free real estate. And it was the cheapest form of energy we could, we could generate. It wasn't because we were trying to go to heaven or anything like that.

[Jim Cramer]

It was just not a bad destiny.

[Hamid Mogadan]

That's not a bad thing, particularly as you're getting close to retirement. So, but, but you know, so, so we're really excited about that potential. The, the renewable got us into discussions with utilities and building relationships with utilities, which is where the grid power comes from. So I think of our energy business not just as renewable but also on premise generation of energy which is going to to be increasingly important because to produce energy centrally and go through all these environmental constraints for transmission is going to take too long.

[Jim Cramer]

One last question. E commerce multiplier effect you talk about. It's it's back, it's big, it's not going down, it's going higher.

[Hamid Mogadan]

It's going up higher for reasons that we actually just you and I discussed many years ago, which is with every passing day the customers expectations for delivery time is getting shorter and their expectations for variety and choice is getting higher. The only way the math works on that is to put more real estate closer to the customer.

[Jim Cramer]

I do want to say and I hope I get to see you in one more time that you have been a tremendous teacher to me. People come on the show and I'll do the interview and I think people have to understand there's some people come on and that's it. Then there are other people come on and for the last 20 years have taught me how to do my job better. Hamid, that's what you are teacher.

[Hamid Mogadan]

Well, thank you and I doubt that but I appreciate the comment nonetheless.

[Jim Cramer]

That's Hamid Mogan is the coach founder, chairman, CEO of a company that was the first to bottom, by the way, in the Great Recession. Prologis money is back after the break.

[Show Announcer]

Coming up, how are companies updating their.

[Jim Cramer]

Security in the age of AI? Kramer is finding out with the CEO of Okta next. While we're out here in San Francisco, it's worth digging into why this market's gotten so hostile to enterprise software. Even the parts of the sector that previously seem like ironclad cybersecurity. Take Pramer family favorite Okta, the leader in identity verification. These guys have excellent numbers and a very strong business. The last couple of quarters showed good strength, yet the stock's actually down more than 30% from its highs in May in fact is even below where it bottomed after Liberation day in April. No matter what October does, right? It doesn't seem like the market cares. So what's it going to take to take this to turn this stock, turn stock around? I wish I knew, but earlier this week we sat down with Todd McKinney. He's the co founder, chairman, CEO of Octa to get some answers. Take a look, Todd. I'm at the Mecca. It's where all I hear are the greatness of Magentics. They're just like us. You can't tell the difference. But wait A second. How about if they are programmed by bad guys, would we be able to tell the difference?

[Todd McKinnon]

Yeah, agents are exciting. They're these entities that have access to data and they can make decisions. And the way we think about it at OKTA is they're a powerful new identity type. And identity is what we're all about. And we know that identity can be a force for good. It can connect people to systems. But in this case, if the bad things happen when the agent's in the wrong hands, because they could do bad things as well. So we're really trying to manage it as this powerful new identity type.

[Jim Cramer]

And you've come up with the identity security fabric. How does that work?

[Todd McKinnon]

It's an important concept. It's a simple concept. Just like in the early days of Salesforce, it wasn't CRM. CRM didn't exist. You know, it wasn't a category that exists yet. It was sales automation and support and marketing. Same thing in our industry. We're going from an industry that was access management and privileged access management, identity governance, to this new category which is called the identity security fabric. And the idea is simple. It should all work together, Jim. It should all be integrated and be low cost and low risk and get the results people want.

[Jim Cramer]

Are people calling you and just coming in and saying, what do I do? Because a quote that I saw from Octane, Your terrific show, 90% of customers have Magentix in production, so they're already ready to go, but only 10% express confidence to govern them.

[Todd McKinnon]

Well, what's happening is everyone's so excited. Boards of directors.

[Jim Cramer]

You catch it.

[Todd McKinnon]

CEOs, boards of directors, they're going to the teams and they're saying, do AI get in production? And what, as an industry, I don't think we've done enough to actually give the governance, the security and the control. And you're seeing this in data breaches that are happening, these agentic systems that are pushed out without the right governance and control, it's leading to bad outcomes per se. Data being exposed on the Internet. And if we don't get the governance correct and the control correct, we're going to undo 10 years of progress and security and it's not going to be a good result.

[Jim Cramer]

Well, you're the person who I think from the very beginning explained to me identity, and I didn't realize that the way people, the bad guys get in, they just walk in through being someone else.

[Todd McKinnon]

Yeah.

[Jim Cramer]

They don't crack in like a safecracker. This is not like that.

[Todd McKinnon]

Yeah, they can they can take control of something that was intended for. For something else. It's like what happens if you think about a big problem right now is people calling in to support desks and tricking the support desk into. Into changing account permissions. So that is an identity type. That identity of that system is supposed to be bound to one person, and without the right controls, it could be tricked into another person. And the same thing could happen with AI agents, which is so. Which is why it's so important to bring AI agents into this identity security fabric so it can be governed and control, and we'll have complete visibility on what these agents are doing.

[Jim Cramer]

Well, speaking of visibility, I don't want to skip the rest of your business. It's obvious we're here talking about agendas, but you've had some great success of late with the Defense Department with federal. I'm a little worried, and maybe you can assure me that the fact that there's been a government shutdown doesn't necessarily stop the calls, because, boy, that has been. You've been on a roll there.

[Todd McKinnon]

Well, the government may shut down, but the systems don't shut down. These are critical systems that are connecting people from the DoD to mission critical systems that are connecting people in the civilian agencies like the State Department to their critical systems to get their job done. So the technology requirement or the identity requirement is even getting more and more.

[Jim Cramer]

But are your salespeople have anyone to talk to?

[Todd McKinnon]

They do. They do in cases that they're having to talk to fewer people as the government deals with the shutdown. But there's people that are buying software and that are deploying our services and keeping the government running.

[Jim Cramer]

Okay. Now, two quarters ago, you talked to me about macro headwinds, and then you told me they didn't materialize. I'd like to think that the government shut down without a lot of data, that things aren't slipping. We're all kind of at sea, Todd. We don't know whether the countries, whether more people being hired, fewer. I hope that the Fed does, but you might give us a. A little inkling.

[Todd McKinnon]

I think there's a lot of change. There's a lot of change, and with a new administration last year, there's a lot of change with technology. The AI revolution is really. It's the biggest platform shift since the Internet. It's making everyone just make sure that everything's in order. But what we see is the economy keeps plugging along.

[Jim Cramer]

All right, that's good news. Now, I also think that there's something you can help me. There's a kind of a negative view out here about software. Not about, about software as a service as opposed to just, you know, ChatGPT.

[Hamid Mogadan]

Yeah.

[Jim Cramer]

I mean, no one can really use ChatGPT to create what you would create. Right. I mean, that would be a dangerous game.

[Todd McKinnon]

Software is definitely evolving.

[Jim Cramer]

Right.

[Todd McKinnon]

Like it did for all the other technical revolutions. Whether it was, you know, the Internet 25 years ago or whether it was cloud computing, which is Salesforce and October was born in the cloud, whether it's mobile and social, when everything moved to the iPhone and AI is the next revolution. And what do customers want during this revolution? They want three things. They want innovation, they want to take advantage of it. Right. They want security and they want choice. They want to be able to choose the technology that's best for them.

[Jim Cramer]

Now they want you. I know your documents say, listen, what they really want is they want to, they don't want to have cybersecurity as part of a big suite. They may want to have individuals, vendors, because if it's cybersecurity they need, it's not one size fits all. Is that a good way to view what you've been saying?

[Todd McKinnon]

I think companies, what we see and what we're talking to the market about is that companies need to pick the right points of consolidation. They're not going to have one vendor, they're not going to have a million. And our pitch is simple. Identity is a good point to consolidate because you can eliminate redundant vendors. I talked to companies that have 50 identity vendors and they can consolidate them into this one single identity security fabric. And they get security, they get a reduction in identity based attacks and they preserve choice. That identity system is not going to pick one platform or one collaboration environment. It's going to give them choice, which is the best of both worlds. Security, decreased costs and choice and flexibility to chart your technology future, that's golden.

[Jim Cramer]

It seemed to me that your new emphasis was so. Well, you've always been international, but the emphasis on big international, I was surprised. It looks like that there's more legacy and less protection internationally than there is in our own country. But. But are the bad guys going after the international companies too?

[Todd McKinnon]

The opportunity is, is a global opportunity. I think what you see is that Okta has always been about the new wave of technology, whether it was cloud computing and mobile and now it's agentic. Guess what the leader of technology is in the world. It's right here in San Francisco. So you see it start here and you see it spread out whether it was cloud or whether it's now AI. And so you're going to see it as popular and prominent in North America than you will eventually internationally. So we're very excited about both opportunities.

[Jim Cramer]

Okay, reassure me. I haven't heard a lot of high level ransomware attacks these days. You were the first one to alert me. The whole process of ransomware, is that because we're getting better or it because people are really quiet about it?

[Todd McKinnon]

I think there's, you know, we're spending $200 billion a year on cybersecurity as an industry and we keep having these cyber attacks and our position is that identity is the core of 80% of them. So by solving identity based attacks, we can solve all these attacks. But the industry needs to get better. We need to move toward this concept of an identity security fabric. We need to have these robust controls in place, especially as we, especially as we adopt this new wave of Magentic. It's a big task ahead, but I think we're all up for it.

[Jim Cramer]

Do you think, I mean, most of these people were walking by. Everyone is very excited like you said. But do you think that this could be, could someone get in and shut down? The government doesn't have Agentix, do they? In a level that I don't want them to have.

[Todd McKinnon]

I think there's an irony here. I think in some ways the most locked down, the most sensitive system, the critical infrastructure, the government, core government systems are the most locked down and they're the most used to dealing with cyber risk. And a lot of times in these attacks, Jim, it's the new things that are automated, the systems and the companies and the people that aren't used to securing things like the core systems that are the most at risk. Because when you want to block these attacks, you have to be comprehensive. It's not just the crown jewels. You have to block everything to decrease your risk.

[Jim Cramer]

Well, I don't know. I think mean, look, I'm reassured by you, but I have to tell you that I didn't even know six months ago that this would be the way that they come in. I hope the, I hope other, I hope executives see it.

[Todd McKinnon]

We're working hard.

[Jim Cramer]

All right, that's Todd McKinnon, co founder, chair and CEO of Okta with a brand new way to do really well for Okta shareholders. I just wish it worked the case. Thank you. Good to see you. Coming up, Kramer takes your calls and.

[Show Announcer]

The sky's the limit. It it's a fast fire lightning round.

[Todd McKinnon]

Next.

[Jim Cramer]

It is Time and then the lightning round is over. Are you ready? Ski daddy tell me the lightning round. Craven run. Let's go to John in South Carolina. John, how you doing, Jim? Couldn't be better. John, how about you? Doing fine down here in South Cackalacky. Yeah, okay. What stock bld. Yeah, okay. Building stock. I can't believe. I think the stock is. Is well ahead of where it should be. Even though I like the company the rest of the coordinates down. I would do some trimming of that stock. How about we go to Nicholas in North Carolina? Nicholas. Booyah. Chill, man. Booyah. What's happening? I'm calling in. I've been a long. I've been a fan for a long time. My mom's always said you were handsome. I'm calling in about a stock I bought last week at $12. I was up a heap a couple days ago. I'm up less of a heap now. Is ticker CRM out critical metals. We've talked about this, Ben still and I. It is time to change critical metals. You need President Trump to go in there by 10% of the company. I think it's going to happen. Mark in Iowa. Mark. Hey, Jim. With declining interest rates coming, I'm shopping for some dividend stocks. And I found one with a big cash flow and a fat dividend and I think rube to run on the stock price. What do you think of Verizon here? I think Verizon is kind of like a bond that can move up a little bit. I applaud your decision. With a 7% yield, I think it's. It's a really good idea. Brad in North Carolina. Brad. Thanks, Mr. Gramer, for taking my call. I wonder what your thoughts were on revolution medicine. All right. This is a speculative situation. Oncology play. I lost my mind. I've lost so many. Lost my mommy can't. Cancer. I wish they'd been working. This company existed during that period. I don't know if they have anything at all. But I always say yes to the speculative stocks that are trying to cure cancer. Someone gets it right. Wow. Sam in Massachusetts. Sam. Jim. How are you? I'm good. How are you, Sam? I'm good. You know, Jim, I came across this company that's trading at a really high multiple. It's expensive, but it could be expensive for a reason. I'm talking about Credo Technology. The company specializes in high speed ultra low latency connectivity solutions. This is the stuff that connects the chips together. So your data center is only as good as the cables, which Connect the Nvidia chips together. So this is true. Part of the supply chain companies trading at a $22 billion market cap is expected to see growth of 30% this year. So I'm curious what you think about CREDO technology. I agree with your analysis. Unfortunately, I don't know the company well enough to be able to offered opinion. That's going right into the homework file. Let's go to Jeff in New York. Jeff, hello Mr. Kramer, this is Jeff from Sodus, New York on the south shore, Lake Ontario, where the fall is in full swing, leaves are changing, the apples are being picked and there's a pumpkin in everybody's house. And what the heck am I doing here? I like it out here too though. There's many places that you can sit in a cat. Let's make some money together. What do you got, Mr. Cream of the this spring I called you because the potholes in my area were so bad that I thought this company has to make a ton of money providing the materials to repair them. You were nice enough to bring the CEO in the next day. And I like what he had to say. I bought some shares, the stock dropped and I bought some more. I didn't get a full position before the market started. Before the stock started going up. Yesterday it hit a 52 week high and even with this pullback, I'm still up 36%. My question is what do I do with the stock the of Marietta Materials? Just hold it. I wouldn't buy more. No need to sell it. It's just a great long term hold by the way. So Vulcan Materials, one of the greatest stock performers of all time. It's really kind of a duopoly and that ladies. Conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up. And the Oscar for responsible investing goes to Adam.

[Show Announcer]

Aaron Kramer's explanation.

[Jim Cramer]

The CEO's smart move with his own stock Next. Every speculative mania is ultimately brought down by greed. Specifically the greed of insiders who decide to take advantage of the monster moves in their stocks and by doing some extreme selling almost every morning. During the last few months we've seen some insane rallies in stocks. These moves are typically powered by small buyers, typically on Robinhood, who in the early hours move up non institutional stocks pretty much effortlessly. Very similar to what we saw with Gamestop and AMC in the heyday of the short busting rallies of early 2021. We often think of Gamestop as a short squeeze that somehow did not bring out insider selling. But that was a highly Unusual situation. The debt laden AMC situation played out in a far more normal and negative way. Back in the fall of 2021, after the stock had shot up dramatically, CEO Adam Aaron announced he was raising some cash by selling some stock. It was, he said, for estate planning purposes. And hey, you can't blame anyone for selling to that kind of strength. He repeatedly said he would take some of his holdings off the table, but before, not after the sale.

[Commercial Narrator]

Before.

[Jim Cramer]

I like that. He gave you ample opportunity to get out ahead of him. That's not going to happen this time. In the second week of November 2021, Aaron sold 625,000 shares. Taking into account a 10 for 1 reverse stock split and some other corporate actions that have happened since then. AMC was trading around $280. If you look back, the stock never traded higher. Aaron unwittingly contributed to the top. These days, AMC trades at 2 bucks and change. What can I say? Guy had great timing. It's this kind of insider selling that causes red hot stocks to peak. Maybe you own some of these at the same time. The company itself is typically doing the same thing with AMC. The company sold $587 million worth of stock in June of 2021 after it had run to the 380s. But before Aaron unloaded his stock, in other words, the company and the CEO sold a huge amount of shares. The company sales broke. An individual investor created short squeeze and raised a ton of money for the company. The CEOs sales after the company sales marked the end of the move higher. The smaller Humpty Dumpty buyers couldn't put the darn thing back together again. For the record, I think it's good that Aaron waited until after the secondary offering by the company before he sold some stock himself, that might not happen either. I bring this up because I expect the same process to play out though in many of the red hot speculative stocks of today. Some of which have gotten totally out of hand. Why? Simple. It always happens. We saw it in 2021, we saw it with the dot com collapse in 2000. Fear that the stocks would come down, greed that the gains would be lost. Those are the fundamental components of human nature. They're not going to disappear anytime soon. The trick is to anticipate the secondaries of the company and the insider selling of the executives. Because if you wait for them to actually get started, you'll see your stock plumme. Perhaps like amc. Believe me, if you told those individuals who moved up the stock of AMC all the way to the three hundreds that would go to two dollars in a fairly short time. They would have told you. You're crazy. They hated me for screaming cell. But I was right. The stocks fell apart just like we started seeing in the highest risk stocks today. Today may have been the beginning. Those who tell me now that I am the boy who cried wolf because they made a lot of money are wrong. You don't make money in a stock until you ring the register. Never confuse stocks with cash. The quantum computing stocks, the rocket stocks, the nuclear stocks, the secondary data center place, the flying cars, the critical metals, these have all gone parabolic. They're all candidates for insider selling and corporate selling because the companies themselves can't generate enough earnings to justify their current valuations, let alone sales. And believe me, the insiders know it. Just like Adam, Aaron knew at amc he was smart. He sold when the selling was good, both for the company and then himself. Be smart like Aaron. Do some estate planning like he did. Sell some of your stock. At least take out your cost basis so you're only playing with the house's money. That's how you speculate. Responsibly. That's how you speculate. Believe me, you will not regret it. I'd like to say, as always, bull market summer problem solidified just for you, right here on Man Money. I'm Jim Cramer. See you tomorrow.

[Commercial Narrator]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer com.

[Jim Cramer]

A massage chair might seem a bit extravagant, especially these days. Eight different settings, adjustable intensity. Plus it's heated and it just feels so good. Yes, a massage chair might seem a bit extravagant, but when it can come with a car, suddenly it seems quite practical. The all new 2025 Volkswagen Tiguan, packed with premium features like available massaging front seats. It only feels extravagant.