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Jim Cramer (0:00)
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Laura Albert (0:19)
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Jim Cramer (0:26)
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Laura Albert (0:27)
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Nikesh Arora (0:34)
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Jim Cramer (0:40)
Read it carefully. DIA Subject to risks similar to those.
Nikesh Arora (0:42)
Of stocks all ATs are subject to risk, including possible loss of principal Alps Distributors Inc. Distributor My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. My friends, I'm just trying to make you a little money. My job is narcissist entertainment. It's to teach you, to educate you. So call me at 1-800-743-CBC. Tweet me. ImKramer. There's something happening here, and what it is is exactly clear. We become a nation of cheapskates. I say that as a compliment. Nobody gets away with charging too much anymore. Not in this country, no matter what industry, perhaps even the drug industry. It's happening now. It's happening fast, and many companies are being left behind by the change. I see it everywhere I go. In the grocery store, online, in the mall, and of course in the stock market, where you either demonstrate value like a Wal Mart or Costco or Amazon, or you get slaughtered like a target, which plunged $33 or over 21% today. And that's my takeaway from this sedate session, with Dow gaining 139points as me flat on the day and Nasdaq dipping point 11%, although it was much uglier midday. We think this cheapskate story is limited to retail, don't we? But it's not. For example, I've never really thought about value when it comes to tech. I cared about whether it was a better mousetrap. The price of goods was constrained by one simple issue, how much the customer is willing to pay and the customers seem pretty blind at cost when it came to tech. But now with Nvidia, the largest company in the world by the way, we're seeing something wholly different. We're seeing a company with a product that's incredibly expensive on the one hand, but incredibly cheap on the other. If you're a cloud service provider and you give Nvidia 40 GS for a version of its latest and greatest chip, a Blackwell, you can make five times that insanely expensive as a product, dirt cheap as an investment. We keep hearing that inverte is charging too much or the demand is topping out or the stocks overvalued. But the proof is in the pudding. And CEO Jensen Wong has repeatedly told me about this 5 to 1 ratio profit to cost ratio. That's not just talk. This quarter backed it up in video, reported a sizable top and bottom line beat healthy guidance for the current quarter. Blackwell, that latest invention, full production which was a huge worry going into earnings. Maybe that worry was contrived, ginned up perhaps. Jensen says demand for the current chips and anticipation for the new ones is quote incredible. Of course there's sellers, grumpy clueless people who keep hoping for another one day gain of 20% like we had last year on earnings. And they are disappointed. I say them sell. I don't care. Here's your hat. Watch your hurry and don't let the door hit you on the way out. The cloud service providers, Amazon, Google, Oracle, Microsoft simply can't resist buying these high end chips. Not because they feel compelled to keep up with the competition. That was another bear canard. But because 40 GS for one of these is a bargain. I'm sick of the bears telling me there aren't enough uses or that things are maxed out at Nvidia. I say do some darn homework. The so called expensive black oil is about making money with your money videos about value. You see the kind of bargain hunting I'm talking about everywhere these days. Even in pharma. Go listen to that Walmart quarterly conference call. The only fly in the ointment the whole time was that the price of the GLP1 Weight loss drugs and how they ding the pharmacy businesses gross margins. How could the price of one class of drugs be so important? I think it's because there's a scarcity of GLP ones even with Eli Lilly and Novo Nordisk going all out. It's only going to get better though because Lily's spending billions to build more plants in order to meet the demand for the wonder drug. No one else can do that. They aren't rich enough. The GOP desk ones, they represent value because it's not just about diabetes and weight loss. There are lifesavers. They're being used against hypertension, being used to reduce major cardiovascular events. They can help control sleep apnea. And of course, they're also effective. Never mentioned, never talked about. Against alcoholism with its terrible liver side effects. Millions of people, they haven't gotten approved for any indications they'll never get it for alcohol. Too complicated. But GOP Dash was not some simple hack drug. It's a revolution in health care. No wonder Eli Lilly can charge such a value, such a huge premium. It's valuable. What else? We have all sorts of data about how going out to dinner costs a lot more than it did pre Covid. But people hate that you know what they really like. Companies are trying to do something about it. Hence why Texas Roadhouse and Brinker, home of Chili's, are just crushing the numbers and making mincemeat of competitors. I went to a Texas roadhouse recently in Dallas. Oh, man. I spotted a dinner for less than 11 bucks. Made me feel like a king. Country fried chicken or grilled barbecued chicken or pulled pork or chicken Caesar. Two sides, 1099. Are you kidding me? In 2024? Not possible. But it is. That's only bested by the three for me deal from Chili's that you see advertised during every single NFL game. Fountain drinks, iced tea, chips, salsa, and that killer smash burger for 10.99. Again, you must be kidding me. In 2024? Yes. There's one word, one. One reason why Brinker and Texas Roadhouse are up 189% and 58% for the year, respectively. And that's value. The American people are tired of paying up. They feel gouged. They feel betrayed. They feel. They feel that the only thing about brand loyalty is that it isn't worth a dime. They want a better deal. They'll eagerly switch lifetime habits in order to save some money. Because prices are up so much that you feel like an idiot if you're paying off. And there's a reason why Costco has tens of millions of members. I wish you me on a field trip to Costco. It's just wild. I went to the Costco near Allentown, Pennsylvania the other day. It was more of a pilgrimage. No pilgrimage complete without a stop at the food court. In 1984, Costco offered a quarter pound all beef hot dog and a soda with free refills. For a buck fifty and a Portland, Oregon store. And it's nationwide now. And it's the same price. Are you kidding me? Whenever we stock up at Costco, I pay King's rim because we're ransom, because we're loyal to the cause of low prices. And Costco has instilled that loyalty in a very visible way. I like to go to Costco on an empty stomach with. Man, those free samples are dynamic. You see the little small pizza squares lately who don't fill up before you go there. But it's the buck 50 dog that makes me yearn for Costco. They can offer great deals because they carry a smaller selection of products. Enormous bulk gives them a lot of leverage. Yet right now, people only have loyalty to value. And that's the kind of country we've become. The value of a belt. Thank you. Or a shirt or underwear or jeans. From tjx. Shot the lights out this very morning. They buy excess inventory for struggling retailers for next to nothing, then mark up the goods ever so slightly, giving you amazing bargains. TJX has been keeping building as keeps building a lot of stores because they can't keep up with demand. Look at this thing. I got this thing for 15 bucks. The other guys are a pound of flesh from. From Venice. This is from Milan. 15 bucks. I would take it off, but I think it's probably not the right. I don't know. We got new people coming in, running the company. I don't want to leave a bad impression on them folks. Anyway, TJ Maxx, I love it. Which brings me full circle to Target. Our loyalty to value means that if you want to buy Dixie paper bowls, Kellogg's, Fruit Loops, dawn dish soap and Tide pods and then have them delivered, we'd much rather pay $48.13 from Walmart than $62.96 at Target. Yes, those are actual prices, actual goods that were bought today. And that's too big a differential. Walmart scale and smarts are simply besting Target in the price arena. Don't get me wrong, I love Target. I think it's so much fun to shop there. But in this new seller, sit at home and order world, why do I really care how much fun Target is? If they can bring it to my house at roughly the same time, why do I care if it comes in a red and white bag or not? I am loyal to value, and Wal Mart is offering me value. House of pleasure. And that's why Wal Mart stock could be up 66% for the year and still climbing while target saw 14%. Most likely still falling. Bottom line, prices have gotten so high over the past few years that we're losing our loyalty to brands. These days, this whole country is about one thing, the Benjamins. I said we take questions. I said we start with Chuck in Florida. Chuck.