Mad Money w/ Jim Cramer – October 22, 2025 Episode Summary

Episode Overview

In this episode, Jim Cramer tackles the oft-misunderstood dynamic between companies' performance and their stock prices, particularly after strong rallies and earnings reports. He explores how "profit taking" can mask the reality of sound businesses suffering stock declines, provides in-depth analysis of trending companies like GE Vernova, Vertiv, Thermo Fisher Scientific, and Netflix, and fields callers' questions in his trademark "Lightning Round." The episode is packed with actionable advice, cautionary notes about speculation, and Cramer's fiery market takes.

Key Topics & Highlights

1. Market Volatility: “Broken Stock, Right Company”

[01:55]–[10:30]

• Market Selloff Context:
  The day saw the Dow decline by 334 points, the S&P 500 drop 0.53%, and the Nasdaq fall 0.993%. Cramer points out that many stocks fell despite companies posting strong quarters—demonstrating that stocks and companies, though connected, don’t always move alike.

• Clarifying “Profit Taking”:
  Cramer expresses dissatisfaction with how “profit taking” is used to explain dips, arguing it’s often an oversimplification.

• Examples:

  • GE Vernova:
    Had "excellent order growth" driven by data center needs, and a potential partnership with OpenAI (per CEO Scott Razak). However, as Cramer notes, "Giving over stock was already up almost 80% for the year... But in the end, management didn't raise their full year forecast... So what happened? Sell, sell, sell."
    (Quote: “Stock wrong, company right.” — Jim Cramer, [04:16])

  • Vertiv:
    Another company with organic orders up 60%, but the stock dropped after a massive run. Cramer quotes Chairman Dave Cote:
    “Well, this is a very strong quarter by any measure. Although I got to say by looking at the stock price reaction right now, I wonder what would have happened if we hadn't blown the doors off every single metric.” ([06:44])

  • Intuitive Surgical:
    Surprised on upside due to “after hours use” of its Da Vinci machines, leading to a 14% stock rally. Engagement surged because few expected this acceleration.

  • Contrasting Example – Capital One:
    Surprises with a decline in credit problems, stock jumps as expectations were pessimistic.

2. Caution on Speculative Stocks

[07:30]–[10:30]

• Speculative stocks are under severe pressure. Insiders are selling, companies are issuing more shares to raise cash, and meme stock behavior signals “froth” is being drained from the market.

• Memorable warning:
  “When you get the kind of destruction of the froth that we've had in the last 10 days, it isn't easy to put Humpty Dumpty back together again. Even with the best of Elmer's, he tends to stay broken.” ([09:50])

• Advice: Trim positions in deeply unprofitable, speculative plays.
  “It is still not too late to sell them on the coming bounce of which there will be one. That bounce worked to sell in 2000 and it will work for you again.” ([10:20])

3. Lightning Round: Stock Takes & Personal Finance Advice

[10:30]–[12:07]
Selected caller highlights:

• PayPal: Not convinced by the new CEO. "He's got to start delivering numbers." ([10:53])
• ADP: Facing negative analyst research but “it is an excellent company” and worth holding.
• Thermo Fisher: Teases upcoming interview about the company’s strong quarter and potential breakout.

4. Executive Interview: Mark Casper, CEO of Thermo Fisher Scientific

[14:28]–[21:17]

• Quarter Overview:
  “It's great to be here after a terrific quarter where we really had outstanding financial performance and made great progress with innovation, completed a couple [of] acquisitions and a really exciting opportunity with Open Air.” — Mark Casper ([14:59])

• Growth in Tough Markets:
  Despite challenges, “In the toughest market you still did well, China was actually good.” — Cramer ([15:20])

• OpenAI Collaboration:
  They’re co-creating solutions to speed up drug development—shortening time to market and reducing costs.

• Neurodegenerative Disease Research:
  New proteomics capabilities for biomarker discovery, aiding research into ALS, Alzheimer's, and Parkinson’s.

• Reshoring & Manufacturing:
  $1.5B invested in U.S. pharmaceutical manufacturing; acquisition from Sanofi expands U.S. drug production.

• Strategic Acquisitions:
  The recent Solventum acquisition fits seamlessly into their growth strategy.

5. Post-Earnings Analysis: Netflix

[22:26]–[29:43]

• Stock Reaction:
  Stock is down almost 10% after earnings, but Cramer argues, “this sell-off is an overreaction.”

• Earnings Details:
  Revenue grew 17.2% year-over-year; a large one-off Brazilian tax charge dragged operating income below expectations.

  • Without the tax charge, Netflix would have posted a "monster earnings beat." ([23:55])
  • CFO says the charge is nonrecurring: “We don't expect this matter to have a material impact on our results in the future.” ([24:49])

• Strategic Position:
  Netflix’s ad business is strong and growing, content slate is loaded with blockbusters, and margins are rising in the absence of the tax anomaly.

• Cramer's bottom line:
  “As far as I'm concerned, Netflix has great revenue growth...nothing about this quarter makes me doubt the company. The only thing it's changed is the stock gotten a heck of a lot cheaper, which is why I think this is an incredible buy, buy, buying opportunity.” ([28:56])

6. Executive Interview: Giova Albertazzi, CEO of Vertiv

[31:42]–[37:42]

• Quarter Review:
  Vertiv delivered record results—organic orders up 60%, 30% backlog increase, raised full year guidance.

• Stock Reaction:
  Drop seen as “profit taking.” Albertazzi: “What matters is the long term trajectory and we're proud of a very strong trajectory.” ([32:29])

• Business Strength:
  Vertiv’s scale, technology innovation, and strong partnerships with hyperscalers (like Oracle, CoreWeave) keep them ahead.

• Risks:
  Asked about emerging technologies and different data center approaches, Albertazzi is unfazed—heat generation is “not so much the copper or...other type of ways of transmitting data...what generates heat is, are the electronic components themselves and that generation of heat will continue. If anything there is a concentration of heat...” ([36:50])

7. Lightning Round – Buy, Sell, or Hold

[38:09]–[42:47]

Highlights (with Cramer’s direct takes):

• Mountain (MNTN): Sticking by it. “I liked at 20, so I can't tell you at 15 that I don't like it.” ([38:59])
• Constellation Energy: Great company, but “it’s up too much, Don, I'm afraid to tell you to buy it right here.” ([39:47])
• MVST: Likes it—“It actually makes money. This is not some joker speculative stock.” ([40:22])
• Uranium Energy Corp.: Avoid—“Don’t buy these uranium companies...They take forever to build.” ([41:18])
• Bill Holdings: A buy after activist interest—“I'm going to recommend buying Bill Holdings.” ([42:47])

8. Speculation: Wise vs. Wild

[42:47]–[47:47]

• Speculation is not inherently bad—he suggests every portfolio (especially for younger investors) should have one or two speculative names.
• But: focus on “young companies with a clear line of sight to profits”; avoid serial money-losers and parabolic hype plays that raise capital at shareholder expense.
• Gives recent Lightning Round examples of “mania stocks”—AST Space Mobile, Trilogy Metals, Grail, TechoGen, Aurora Innovation, Rigetti Computing—and explains why they're better sold than bought.
• Key warning: “When you get one, be sure to sell them because we are just going to revisit these nasty levels once again before an even bigger breakdown just like that of 2000 justifiably occurs.” ([47:40])

Notable Quotes

• “A broken stock and a broken company are two very different things.”
  — Jim Cramer [02:39]

• “When you expect a monster quarter and you get a monster quarter, it won't be enough to move the stock.”
  — Jim Cramer [06:26]

• “If anything, many [spec stocks] might be headed for the new low list. It is still not too late to sell them on the coming bounce of which there will be one.”
  — Jim Cramer [09:48]

• “We're going to be able to co-create some new things and really focused on improving the drug development process, reducing the cost, shortening the time and ultimately our customers will benefit and of course patients will benefit as medicines get to market more quickly.”
  — Mark Casper, Thermo Fisher CEO [16:10]

• “The best way to make money off TV is by selling ads. Who could have guessed it?”
  — Jim Cramer on Netflix [27:30]

Timestamps for Key Segments

• Market/Stock Not Company Discussion: 01:55–10:30
• Lightning Round 1: 10:30–12:07
• Thermo Fisher CEO Interview: 14:28–21:17
• Netflix Analysis: 22:26–29:43
• Vertiv CEO Interview: 31:42–37:42
• Lightning Round 2: 38:09–42:47
• Speculation Advice: 42:47–47:47

Tone & Takeaways

Jim Cramer’s style is passionate, fast-paced, and direct—mixing humor, analogies (“putting Humpty Dumpty back together”), and teaching moments. He hammers home the need for investors to separate company fundamentals from stock price action, urges caution amid speculation, and consistently looks to steer both newbies and veterans towards “prudent, educated risk.”

Bottom Line:
Trim frothy speculative stocks, understand the difference between business strength and stock moves, and use market pullbacks (in names like Netflix and Vertiv) as potential buying opportunities—but only after verifying the long-term story remains strong. Cramer’s line: “There’s always a bull market somewhere,” but you need to know where to look.