Mad Money w/ Jim Cramer — November 4, 2025

Episode Overview

In this episode, Jim Cramer tackles one of Wall Street’s most hotly debated topics: the dominance of the "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) and the broader implications of tech sector concentration. Cramer defends owning these leaders, delving into recent results, the acceleration in data center and AI-related spending, and how this spending divides winners from losers. He provides insights on the Kimberly-Clark/Johnson & Johnson split-off and unpacks which stocks can benefit from AI without billion-dollar capex bets. The show also features viewer calls (Lightning Round) and closes with a frank discussion of the consumer’s pinch in today’s inflationary environment.

Main Theme: The Power—and Pitfalls—of Tech’s Dominance

• Exploration of why market concentration in the Magnificent Seven persists—and why “growth” is the magic word.
• Deep dives into Amazon’s comeback and AI/data center spending wars among Big Tech.
• Evaluating the Kimberly-Clark/CanView mega-deal and consumer sector struggles.
• How to find AI winners without massive capital outlays.

Key Discussion Points & Insights

1. The Irresistible Gravity of the Magnificent Seven (01:08–07:52)

Market Concentration & End-of-Year Dynamics

• Cramer opens by addressing investor anxiety over high market concentration: “There's a natural tendency to want to avoid [the Magnificent Seven].”
• Observes that institutional investors are pressured to own these names to avoid looking “like morons”—especially in the year’s final months.

Quote:
“You just feel like such a chump when you deviate from these seven stocks… They are the best investments and the best ways to the next two months on any weakness.”
— Jim Cramer, (01:40)

Amazon’s Redemption

• Last week, Amazon was derided for lagging cloud growth (17.5% vs. Microsoft Azure's ~40%), but recent results posted a rebound (now 20% growth).
• A $38 billion partnership with OpenAI cemented Amazon’s cloud cred, vaulting its stock and market cap.

Quote:
"The stock goes from being unchanged for the year to nearly up 16%. A loser? Nah, a winner. House of pleasure. That's monumental."
— Jim Cramer, (03:25)

Why Growth Trumps All

• All seven aren’t joined by sector, but by “pure, fantastic, worldwide growth.”
• Cramer challenges the notion that market concentration is a risk:
  "Growth is the ultimate protection in the stock business." (05:10)

2. Lessons from Old-School Giants: Kimberly Clark & the End of ‘Safety’ Stocks (07:52–13:22)

• Contrasts the dynamism of tech growth stocks with the struggles of household names (e.g., Kimberly Clark).
• Kimberly’s organic growth (~2.5%) no longer excites investors, prompting the $40+ billion purchase of CanView (Tylenol, Band Aid maker).

Quote:
"A safety stock does not go down 22% in one year. Of course, not all growth stocks are created equal."
— Jim Cramer, (09:40)

• Notes that “shrinkage” in staples and the old ‘flight to safety’ dynamic has reversed—growth wins over stability.
• Only stocks with “secular,” not cyclical, growth are deemed safe.

3. Interview: Mike Hsu, CEO of Kimberly-Clark (13:22–26:07)

Deal Rationale & Synergies (14:03–16:48)

• Hsu touts the deal as “the single largest shareholder value creation opportunity” in his career.
• Points to both cost and revenue synergies, leveraging complementary product/geographic strengths (e.g., CanView is strong in India/Western Europe; Kimberly in Asia/LatAm).

Brand & Channel Expansion (17:20–18:34)

• Huge opportunity in club and Internet channels—Kimberly outperforms online, a strength to transfer to CanView’s brands.

Regulatory & Legal Risks (18:34–22:08)

• Addresses Tylenol’s legal baggage: “We've conducted a very robust due diligence process...we're very confident that we will create shareholder value.”
• Ready to fight or settle talc claims as needed.

Brand Strategy & Innovation (23:40–26:07)

• Kimberly-Clark will both expand current billion-dollar brands and introduce new ones, focusing on quality and innovation over generics, even in a budget-conscious economy.

4. AI Data Center “Armageddon”: Will Wall Street Blink? (27:19–33:22)

Hyperscaler CapEx Surge

• All major tech giants are ramping up spending on AI/data centers.
  • Meta lifted capex to $70–$72B (for 2025/26); got punished by a 12% stock drop.
  • Alphabet, Microsoft, Amazon also upping spending—but their stocks fared differently.
  • Wall Street is now “pushing back” on some companies for massive capex.

Quote:
“I’m a big believer in artificial intelligence as the fourth Industrial Revolution…They wouldn't light their money on fire, for heaven's sake.”
— Jim Cramer, (27:30)

Nvidia as Hardware King

• Nvidia is main capex beneficiary; CEO Jensen Huang claims half a trillion in pipeline revenue for new AI chips.
• Noted: the “capex arms race” is a double-edged sword; some companies risk overextending.

5. AI Winners—Without Billion Dollar Bets (33:22–41:32)

Apple as ‘AI Platform Rentier’

• Apple doesn’t need to spend billions—it can charge hyperscalers for access to its 2.35B devices, as it already does with Google.
• “Apple: own it, don’t trade it.” (36:50)

Reddit and the New York Times: Data Kings

• Both license data to AI companies—pure profit, minimal capex.
• Reddit: nearly 70% revenue growth, 91% gross margin, $2.1M quarterly capex.
• NYT’s lawsuits against OpenAI/others could create new revenue streams.

Cloudflare as Gatekeeper

• Blocks AI crawlers, helps publishers monetize their data; seeing rapid revenue/margin growth.

Quote:
"[Reddit] can be an AI winner without the AI cost."
— Steve Huffman, Reddit CEO (quoted by Cramer, 38:24)

6. Lightning Round (41:48–43:31)

Rapid-fire Buy/Sell Opinions

• SAIC: “An inexpensive stock and I think it's a fine.”
• Terra Wolf (Bitcoin mining): “I'm a believer. It's pure spec, but I am a believer.”
• Nebbys Group: “They're gonna keep getting contracts. You're gonna make money.”

7. The Consumer is Tapped Out (43:43–47:13)

• Cramer laments how price hikes everywhere (“nickel and dime”) are hitting American consumers.
• Consumer-facing stocks are deep in bear markets—Wall Street no longer buys "pricing power" stories.
• Even luxury and leisure (cruises, Disney, Botox, liquor) suffer as input costs rise.

Quote:
“Everywhere she goes, she feels like she's being charged too much… Wall Street isn't willing to wait for a cost correction.”
— Jim Cramer, (43:43)

• Suggests Wall Street will eventually differentiate between well/smartly managed companies, but short-term pain dominates.

Memorable Quotes & Moments (w/ Timestamps)

• “Winners tend to keep winning in the last two months of the year because money managers want to show their investors that they own these smart things. Otherwise they'll look like morons.” — Jim Cramer (02:15)
• “Growth is what the Magnificent Seven have in common and growth is what the market always loves. We just don’t talk about it enough.” — Jim Cramer (05:16)
• “A safety stock does not go down 22% in one year.” — Jim Cramer (09:38)
• “We are the best product and we're going to have the lowest cost.” — Mike Hsu, CEO Kimberly-Clark, (25:48)
• “[Reddit] can be an AI winner without the AI cost.” — Steve Huffman, via Jim Cramer (38:24)
• "Everywhere she goes, she feels like she's being charged too much… the consumer constantly does feel nickel and dime.” — Jim Cramer (43:45)

Notable Segment Timestamps

• [01:08] — Episode opening; Cramer sets up Magnificent Seven concentration
• [03:00–04:06] — Amazon’s comeback and OpenAI partnership
• [07:52–09:50] — Staples sector compared to tech; end of “safety” stocks
• [13:22–26:07] — Kimberly-Clark CEO interview
• [27:19–33:22] — Tech hyperscaler capex arms race; Nvidia as winner
• [36:50–39:30] — Apple/Reddit/NYT/Cloudflare: AI winners w/o capex
• [41:48–43:31] — Lightning Round
• [43:43–47:13] — The consumer is getting squeezed

Summary Takeaways

• Stay with growth: Despite concerns over concentration, major tech names boast unmatched global growth, and institutional investors won’t quit them—yet.
• Capex divide in AI: Massive spending by some hyperscalers creates opportunity (for chipmakers like Nvidia) and risk (for laggards or those failing to explain their strategy).
• Innovate or stagnate: Old-school staples like Kimberly-Clark must pursue growth or risk irrelevance.
• Capex-lite AI opportunities: Apple, Reddit, NYT, Cloudflare can all capitalize on AI’s rise without insane infrastructure spend.
• Consumer caution: Inflation and input costs are bruising consumer-facing sectors; Wall Street is merciless in punishing price hikes.

This episode is fast-paced, opinionated, and classic Cramer—equal parts market education and Wall Street hot takes. If you’ve missed it, you’ll walk away understanding both why “growth” rules today’s market and how to spot winners (and losers) in tomorrow’s AI-powered economy.