Mad Money w/ Jim Cramer – Episode Summary (January 13, 2025)

Released on January 14, 2025

Podcast Information:

• Title: Mad Money w/ Jim Cramer
• Host: CNBC’s Jim Cramer
• Description: “Mad Money” takes viewers inside the mind of one of Wall Street’s most respected and successful money managers for free. Cramer serves as a personal guide through the complexities of Wall Street investing, helping listeners navigate opportunities and pitfalls with the primary goal—to help them make money. The show features Cramer’s fiery opinions and the popular Lightning Round, where he provides buy, sell, and hold recommendations on various stocks.

I. Introduction and Market Overview

[00:00 – 07:19] Jim Cramer opens the episode by introducing Venu, a company listed on the NYSE American, which is disrupting the multi-billion-dollar live music industry by owning and operating upscale music venues. He highlights Venu's impressive financials, including $166 million in assets and a projected revenue of $200 million in 2025, representing a 56% year-over-year growth.

Cramer then delves into broader market sentiments, expressing frustration with recent government interventions in the tech and semiconductor sectors. He criticizes the Biden administration for imposing restrictions on Nvidia’s GPU sales, limiting them to 18 friendly nations. Cramer emphasizes the detrimental impact of such policies on innovation and international cooperation, stating:

“...this 200-page set of rules has become the hallmark of the Biden administration's attempt to treat our businesses as the enemy...” [00:48]

He further discusses the challenges faced by drug companies under the Inflation Reduction Act (IRA), particularly focusing on Bristol Myers’ struggle with price controls on Eliquis. Cramer underscores the importance of pharmaceutical innovation, especially in treating severe conditions like schizophrenia, heart disease, and cancer.

II. Government Policies Affecting Tech and Pharma Industries

Cramer criticizes the U.S. government's approach to regulating the semiconductor industry, highlighting Nvidia CEO Jensen Huang's efforts to promote sovereign AI among allied nations. He laments that the administration's restrictive policies are stifling Nvidia's global initiatives:

“...Jensen Wong has spent a huge amount of time going around the globe... but the government's effectively ended it by fiat...” [00:48]

Similarly, in the pharmaceutical sector, Cramer voices concerns over the IRA's impact on drug pricing and innovation. He cites Bristol Myers' CEO Chris Berner, who argues that imposed price caps on Eliquis do not reflect its substantial clinical value:

“...the imposed Eliquis maximum fair price does not reflect the substantial clinical and economic value of this essential medicine...” [07:19]

Cramer emphasizes the tension between fostering innovation and implementing regulatory measures, suggesting that such policies may ultimately harm both businesses and consumers.

III. Lightning Round Stock Picks

[07:19 – 11:24]

In the popular Lightning Round segment, Cramer interacts with callers seeking advice on specific stocks:

1. Caller Arthur from Pennsylvania: Holding AMD shares since October that have only declined. Cramer advises a hold, citing AMD’s current challenges in securing significant contracts and effective competition. He remarks:

   “I think it's just a hold. I wish I could say it's a buy, but I just don't feel I can go there.” [07:24]

2. Caller Rich from Texas: Previously profited from United Airlines, Rich now brings Builder First Source to the table. Cramer acknowledges Rich's success and humorously comments on his potential role as a co-host:

   “What can. And he's from Texas. Can't beat that either.” [08:20]

3. Additional Callers: Cramer addresses various other stock inquiries, including Kraft Heinz, Ralph Lauren, and Arbutus Biopharma, often blending market insights with personal anecdotes and humor.

IV. Interview with Bristol Myers CEO Chris Berner

[11:18 – 19:56]

Jim Cramer sits down with Chris Berner, CEO of Bristol Myers Squibb (BMS), to discuss the company's recent turnaround and innovative drug pipeline.

Key Highlights:

• Company Turnaround: Under Berner's leadership, BMS has seen a 40% stock rally from its July lows. Despite facing major patent expirations, the company received approval for a revolutionary new schizophrenia drug, Cobenfi, praised for its efficacy and reduced side effects.

  “...Cobenfi, great efficacy, on par with existing therapies. But you don't get those side effects.” [14:11]

• Drug Pipeline and Innovation: BMS is actively expanding its pipeline with potential new indications for Cobenfi, including bipolar mania and Alzheimer's disease psychosis. Berner emphasizes the unmet needs in these areas and the importance of developing drugs that offer significant clinical benefits without adverse side effects.

• Financial Strategy: Despite upcoming loss of exclusivity (LOE) for Eliquis, BMS is confident in its robust financial position. Berner outlines the company's strategy to sustain growth through a young portfolio of assets, new catalysts, and external innovation sourcing. He reassures investors about the company's ability to maintain attractive dividends.

  “We have a strong financial position that gives us the ability to give money back to shareholders through an attractive dividend...” [16:32]

• Oncology Advancements: BMS remains committed to oncology, particularly immuno-oncology and cell therapy. The acquisition of Raise Bio, a leader in radiopharmaceuticals, is highlighted as a strategic move to enhance their solid tumor oncology platform.

Cramer expresses admiration for Berner's bold approach to tackling complex diseases, noting:

“People know I doubted you on brain. I said, come on, don't go after brain. But no one can solve the brain. But you went for it.” [19:48]

V. Interview with Boston Scientific CEO Mike Mahoney

[21:24 – 29:08]

Cramer engages with Mike Mahoney, CEO of Boston Scientific, focusing on the company's impressive product lineup and market positioning.

Key Highlights:

• Company Performance: Mahoney highlights Boston Scientific's exceptional growth in 2024 and outlines plans for continued expansion in 2025 and beyond. The company boasts eight businesses, each outperforming market peers.

• Flagship Products:

  • Faripulse: A transformative treatment for atrial fibrillation (AFIB), Faripulse offers a safer and faster procedure compared to competitors. Mahoney emphasizes its efficacy and hospital adoption:

    “Ultimately, it's a safer procedure. So people with AFIB who are younger... it's a safer procedure.” [23:18]

  • Watchman: Designed to further reduce stroke risk in AFIB patients, Watchman allows patients to discontinue blood thinners, enhancing their quality of life. Mahoney elaborates on its market potential and clinical benefits:

    “Watchman's a market that we created, and it'll be well over a $2 billion market this year.” [24:53]

• Innovation and Acquisitions: Boston Scientific continues to prioritize innovation through organic research and strategic acquisitions. The recent acquisition of Bolt, specializing in intravascular ultrasound, strengthens their coronary artery disease treatment portfolio.

  “We have platforms. So we have cell therapy in oncology. That's going to continue to generate opportunities.” [17:54]

• Market Leadership: Mahoney asserts Boston Scientific's leading position in multiple medical device sectors, including endoscopy, urology, neuromodulation, and interventional oncology.

Cramer lauds Mahoney's strategic foresight and the company's comprehensive product offerings:

“Others are spending billions on new drugs. They don't have that kind of pipeline. You had the foresight to be involved with Watchmen very early on.” [25:58]

VI. Interview with Medtronic CEO Jeff Martha

[29:35 – 37:05]

Cramer converses with Jeff Martha, CEO of Medtronic, exploring the company's advancements in medical devices and upcoming innovations.

Key Highlights:

• Recent Approvals: Medtronic recently received CE marks for an adaptive Deep Brain Stimulation (DBS) device for Parkinson's disease in Europe. This device features real-time algorithm adjustments, enhancing therapy efficacy and patient quality of life.

  “...our technology can sense signals in the brain. Now we got the algorithm approved that allows for real-time adjustments to the therapy automatically.” [30:43]

• Hypertension Treatment: Medtronic addresses hypertension, a leading cause of death worldwide. Their minimally invasive procedure for hypertension has gained outpatient procedure payment approval, poised for widespread adoption.

  “This is going to be an outpatient procedure.” [32:21]

• Pain Management Innovations: The company is developing spinal cord devices that sense pain signals and adjust therapy in real-time, classified as Brain-Computer Interface (BCI) devices, marking a significant advancement in pain management.

  “That's a brain computer interface device. It's now classified as a BCI.” [33:07]

• Collaborations and Partnerships: Medtronic emphasizes its collaborative approach, partnering with companies like SpaceX and Siemens Healthineers to enhance their surgical and imaging capabilities. These partnerships aim to deliver comprehensive solutions across the healthcare ecosystem.

• Market Position and Growth: Despite market challenges and competitive pressures, Medtronic remains committed to innovation and broad portfolio expansion. Cramer questions the current stock valuation, to which Martha responds by outlining the company's growth strategies and commitment to delivering value to shareholders through dividends and revenue growth.

Cramer commends Medtronic's dedication to tackling formidable health challenges:

“People have to realize that most people stop because they don't know that they have anything wrong.” [32:57]

VII. Final Lightning Round and Market Commentary

[37:26 – 43:07]

In the concluding Lightning Round, Cramer fields rapid-fire questions from callers, providing quick takes on various stocks:

1. Caller Brett from California: Inquires about Kraft Heinz. Cramer expresses a bearish outlook, criticizing the brand portfolio:

   “Those guys should continue to go lower and they are living up their expectations.” [38:01]

2. Caller from New Jersey: Compliments Cramer's leadership but shifts the focus to Ralph Lauren. Cramer praises the brand's enduring design and market presence:

   “They've got tremendous design. It's time-honored.” [38:30]

3. Other Callers: Discussions include Arbutus Biopharma (Cramer labels it a speculative “three dollar stock”), Alaska Airlines (Cramer gives a positive outlook), and Crown Castle (Cramer advises caution, expressing skepticism about recent managerial recommendations).

VIII. Final Market Insights and Quantum Computing Commentary

[43:07 – 46:46]

Cramer wraps up the episode with a critical analysis of the quantum computing sector, highlighting the recent downturns of companies like Rigetti Computing, IonQ, and D-Wave Quantum. He attributes these declines to speculative trading reminiscent of the Gamestop short squeeze, exacerbated by misleading optimism from industry leaders like Jensen Huang and Mark Zuckerberg.

“...the Gamestop short busting story all over again. The gamers come in early, usually between 4 and 6 am they buy and they buy and they buy some more.” [46:46]

Cramer warns investors about the unsustainable nature of such speculative bubbles, advocating for a more grounded approach to investing in technology sectors. He stresses the importance of aligning investments with fundamental value rather than short-term hype.

IX. Conclusion

Jim Cramer concludes the episode by reiterating his mission to educate and empower investors, encouraging listeners to stay informed and cautious amidst market volatility and speculative trends.

“As always, the bull market somewhere promise I find just for you right here on Mad Money.” [46:46]

Notable Quotes:

• Jim Cramer on Government Policies:

  “My mission is simple to make you money. I'm here to level the playing field for all investors.” [00:48]

• Chris Berner on BMS Strategy:

  “We are focused on long-term growth and reshaping BMS to be one of the fastest-growing companies in the sector by the end of the decade.” [12:11]

• Mike Mahoney on Faripulse:

  “It's our largest business in 2025. We'll be number two in 2025, and then we're aiming to be number one shortly thereafter.” [23:18]

• Jeff Martha on Medtronic’s DBS for Parkinson's:

  “Our technology can sense signals in the brain... allows for real-time adjustments to the therapy automatically.” [30:43]

• Jim Cramer on Quantum Computing Bubble:

  “I'm glad they popped the bubble because the quantum computing companies are such money losers...” [43:07]

This comprehensive summary captures the essence of the January 13, 2025 episode of "Mad Money w/ Jim Cramer," highlighting key discussions on market trends, government policies, innovative advancements in the healthcare sector, and insightful stock recommendations. The inclusion of notable quotes with specific timestamps provides depth and context, ensuring that both regular listeners and newcomers can grasp the critical insights shared during the episode.