Mad Money w/ Jim Cramer 12/11/25

Summary

---

Mad Money w/ Jim Cramer – Episode Summary

Date: December 12, 2025
Host: Jim Cramer (CNBC)

---

Overview

In this episode of “Mad Money,” Jim Cramer analyzes the impact of recent Federal Reserve actions on the stock market, specifically the effects of a rate cut and how fund flows are moving among different sectors. Cramer dissects the underperformance of tech titans like Apple, Meta, and Tesla, discusses the rebound in consumer and travel stocks, and gives the inside scoop on the newly spun-off Magnum Ice Cream Company. The show also features an interview with Devin Stockfish, CEO of Weyerhaeuser, and Cramer's signature Lightning Round with rapid-fire stock advice.

---

Main Discussion Points & Insights

1. Market Rotation After Fed Rate Cut

(Starts ~01:55)

• Market Movement: The Dow rallied, S&P up, but the Nasdaq lagged as money managers rotated away from tech into stocks expected to benefit from lower interest rates, highlighting a classic post-Fed cut playbook.
  • Quote: “Money managers rotated into stocks that will benefit from rate cuts. Makes Sense, right. Rational. Even if they had to sell other things to raise money. Things like tech. Sell, sell, sell.” (03:00)
• Consumer Discretionaries: Cruise lines and home improvement stocks like Home Depot jumped, expected to benefit from increased consumer spending and cheaper credit.
• Retailers & Industrials: Retail stocks, dollar stores, and industrials generally perform well post-rate cut.
• Banks: Bank stock valuations shift focus to lending growth as rate cuts spur borrower demand. Cramer likes Wells Fargo, Capital One, and (at the right price) JPMorgan.
• High-Yield Stocks: As rates drop, income-seeking investors turn to high-dividend equities (nat gas pipelines recommended).

2. Analysis of Tech Giants’ Underperformance

(Starts ~07:30)

• Apple, Meta, Tesla: All up about 10% for the year, but now out of the rotation’s favor. Lower interest rates don’t benefit these stocks in the current context.
  • Quote: “Apple simply is not a beneficiary of lower rates. And when you’re within a day of a rate cut, it’s not the kind of stock money managers have any interest in.” (08:55)
• Tech Headwinds: Apple faces negative press; Meta’s story is quiet but solid growth continues, though underappreciated; Tesla trades more like a tech stock than an auto manufacturer, thus not currently favored.
• Data Center Worries: Concerns from Oracle’s balance sheet issues and the broader impact on Nvidia and other AI-related names.
  • Quote: “There’s nothing from the Fed that helps any of these stories. And right now money managers only want rate cut beneficiaries and nothing else.” (09:54)
• Hedge Fund Behavior: Cramer admits that fighting against the herd mentality of hedge funds is usually costly.
  • Quote: “I know. I have the tire tracks my back to prove it.” (10:02)

3. Lightning Round Highlights

(Starts ~40:14)

• Quick-fire buy/sell/hold opinions on stocks from callers.
  • MicroStrategy: Prefers owning Bitcoin directly, not indirectly through MicroStrategy.
  • Bank of Nova Scotia: Likes the yield and Caribbean presence.
  • AST SpaceMobile: A speculative, high-risk play; okay for a “fun” buy.
  • Dexcom: Concerned about negative impact from weight-loss drugs (GLP-1s).
  • NRG Energy: Likes the nuclear component—“booyah” given.
  • Mercado Libre: Praises the business, was an early investor.

4. Consumer & Travel Stock Comeback

(Begins ~15:22)

• Observations: Recent buoyancy in travel (cruise lines, airlines, hotels) traced to the Fed’s dovish signals and unexpectedly robust holiday retail sales.
• Airlines & Hotels: Airlines (Delta, United, Southwest, Alaska) soared ~20-40% in a matter of weeks. Marriott strong due to sustained leisure demand ("leisure has completely and utterly held up..." Marriott CFO, 17:40).
• Online Travel: Expedia and Booking Holdings rebounded. Expedia's stock is cheaper but Booking is a better operator.
• Cruise Lines: Top S&P gainers; Cramer’s favorite is Viking Holdings due to luxury focus.
  • Caution: Warns not to chase these names aggressively but thinks rally can continue since many are below prior highs.

Quote: "What consumers say in polls about how they're feeling is often very different from what consumers actually do with their money... but they're still spending like normal." (16:35)

5. Spotlight: Magnum Ice Cream Company

(Begins ~23:22)

• Spin-Off Analysis: Unilever spun off its ice cream division — now the largest standalone ice cream company.
• Industry Position: Owns 21% global share, 4 of the top 5 brands, including Magnum, Walls, Ben & Jerry’s, etc.
• Growth Story: After initial weakness, margins and sales are improving as an independent, focused entity.
• GLP-1 Impact: CEO Peter Dekuvas candidly stated that even doubling the market penetration of GLP-1 weight loss drugs would decrease ice cream volumes by only 0.5%—much less than feared.
  • Quote: "People don’t tend to modestly gorge on ice cream the same way they gorge on potato chips..." (25:45)
• Valuation: Trades cheaply compared to peers—12–13x earnings, with plans for further growth. Likely upside, especially as a child-friendly “follow this stock” play over the traditional Disney.
• Ben & Jerry’s Founder Discontent: Cramer deems it irrelevant to the stock price.

Quote: "If you want to bet on the ice cream business, you got my bus to do some buying right here. I love an IPO that comes out and doesn't shoot up to the sky and then everybody gets hurt." (28:40)

6. Interview: Devin Stockfish, CEO of Weyerhaeuser

(Begins ~32:31)

• Diversification Beyond Housing: CEO emphasizes long-term strategies to decrease correlation with US housing cycles (e.g. climate solutions, biotech), but acknowledges stock still trades with sector.
  • Quote: “We are really doing things that are out in front of the rest of the industry... but ultimately I think the value is there and we'll see that reflected in the stock price.” (34:00)
• Environmental Leadership: Details eco-forward initiatives and “biocarbon” fiber technology (replacement for metallurgical coal).
• Buybacks & Land Value: Company executing significant share repurchases and aims to unlock real estate value. Management confident that true value will be recognized by 2030.
  • Quote: “There's no question at this point, we're undervalued...” (38:50)
• Cramer’s Endorsement: Encourages viewers to review the company’s investor presentation; impressed by its environmental vision and innovation.

---

Memorable Quotes & Moments

• On Hedge Fund Herding:
  "Hedge funds are like pack animals. When they move at once like they did today, it's very costly to try to go against them and buy a lot of tech. I know. I have the tire tracks my back to prove it.” (09:58)
• On Consumer Behavior vs. Sentiment:
  "What consumers say in polls about how they're feeling is often very different from what consumers actually do with their money." (16:40)
• On Magnum Ice Cream's Resilience:
  “People don’t tend to modestly gorge on ice cream the same way they gorge on potato chips... The company has plans for modest price increases and is growing despite fears over weight-loss drugs.” (25:44)
• On Long-Term Value (Weyerhaeuser):
  “There's no question at this point, we're undervalued you can look at the value of our timberlands, the value of our wood products business, all the things we're doing with climate solutions and real estate. No question.” (38:50)
• On Cisco's Evolution & Market Valuation:
  "We don't invest in irony for the trust, we invest in companies. And this company is at the heart of the revolution, yet it doesn't get the respect or the price earnings multiple that its compadres do." (45:35)

---

Key Timestamps

• 01:55 – Market reaction to Fed rate cut; sector rotation explained
• 07:30 – Apple, Meta, Tesla: Why they’re not rallying
• 10:05 – Lightning Round begins (caller questions/stock tips)
• 15:22 – Consumer and travel stocks rebound focus
• 23:22 – Magnum Ice Cream Company deep dive
• 32:31 – Interview: Devin Stockfish, Weyerhaeuser CEO
• 40:14 – Lightning Round rapid-fire
• 44:16 – Cramer on Cisco and market “irony”

---

The Cramer Takeaway

Jim Cramer stresses that investing is heavily influenced by fund flows and macro trends, especially around rate cuts. Sector rotations are powerful and hard to fight—hedge funds tend to move as a herd, leaving stubborn outliers “pancaked.” For investors, this means playing into the prevailing narrative (post-Fed cut: rotate to consumers, banks, industrials), being vigilant but not dogmatic with tech giants, and not ignoring cyclical shifts.

Meanwhile, consumer strength is revealed in spending data, not in consumer sentiment surveys. Innovative companies (Magnum, Weyerhaeuser) may be undervalued and present opportunities—especially when focused and independent. In all, follow the money flow, watch for macro catalysts, and don’t bet against the pack.

---

For more:
Follow Jim Cramer on social media, read his latest book “How to Make Money in Any Market,” and tune in for real-time advice and further analysis on “Mad Money.”

---

Transcript

[Fidelity Representative]

Fidelity Active ETFs have the flexibility to shift and transform as markets do the same. So instead of just riding an index, they can seek to outperform it by adapting to market conditions and pursuing new opportunities as they emerge. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms. Just like any other etf, markets can change in real time. Make sure your ETF can too. Learn [e-mail] ActiveETFs before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus, an offering circular, or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Fidelity Brokerage Services LLC Member NYSE SIPC.

[Justin Vineyards and Winery Announcer]

Known as the pioneer of Paso, Justin Vineyards and Winery produces exceptional wines perfect for enjoying this holiday season. Like Isosceles, their flagship Bordeaux style red blend, Justin Wines also offers unique and thoughtful gifts. Pick your wine, choose a box and add a personal message, icon or logo. You'll also find curated gift sets, library wines, magnums, even custom etched bottles. Start gifting today. Visit justinwine.com and use promo code MONEY20 to receive 20% off your order for a limited.

[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer. I got to my friends hey look, I'm just trying to make you a little bit of money. My job is not just entertain, but to put in context. So call me at 1-873CBC. Tweet me at you. Kramer. Performance is not in the eye of the beholder and it's pretty easy to see that some formerly unstoppable stocks have momentarily lost some of their mojo. So on a day where The Dow soared 646 points, S&P advanced point to 1%. But the Nasdaq, where much of tech dwells, declined point to a point. 2 6, let's take a hard look at what should be done with beloved stocks that have been stalled. Stocks like Apple, Matter and Tesla, all of which are up about 10% for the year, let's start with what's happened is happening with the actual stock market. Today, for example, was a very logical day. Yesterday the Fed cuts rates. Today money managers rotated into stocks that will benefit from rate cuts. Makes Sense, right. Rational. Even if they had to sell other things to raise money. Things like tech. Sell, sell, sell. First, lower rates spur consumer spending. So naturally the conspicuous consumer stocks are up nicely. Starting with the totally discretional cruise line. Discretionary cruise lines. Does that mean more people necessarily called Norwegian Cruise today to book a cruise? No, but if they were thinking of booking a cruise on credit, that just got cheaper. And a lot of what happens with stocks is theoretically based hard for you at home, trust me. Second, lower rates spur homebuilding and home buying and they spur home improvement, which can be financed by a home equity loan. There's a second day business after a rate cut. So predictably, Home Depot was really on the move again. Even as I'm sure nothing extraordinary is going to happen there with a quarter point cut. Still, we own it for the charitable trust. I'm going to talk about it in tomorrow's club meeting. But long story short, I think the despot works here. Even if ice, the immigration police get keep prowling their parking lots looking for people to deport and that has hurt the stock. I know Home Depot has been doing poorly. Okay, I totally get that. What matters is management just told us that they do better if rates came down and then rates came down. Don't out think it, trust them. I do. More broadly, retailers work when the Fed cuts. Always have, always will. Here I'm thinking of companies like tjx which underperformed today. Wal Mart, even Target, which could roar if it can demonstrate any sort of turnaround. Depot kills two birds with one stone. The dollar stores, if they have good numbers, will get higher price earnings multiples. Those are really flying. Industrials always work in response to a rate cut because every hedge fund has been schooled to believe that these stocks go higher when the economy improves. We saw that yesterday with many of the industrials and again today. Second one, second day. What I saw go up, I saw 3M go up. Dupont and Dover. The the latter two in the Chabel Trust which you can follow along by joining the CBC Investing club and get in on tomorrow's strategy session slash club meeting. These kinds of stocks can all work for a couple more days. They have the wind at their back now. I love the transports which are clearly breaking out here. I mentioned JB Hunt yesterday. It just started. It's going higher. Transports tend to run at least five days after a Fed rate cut. Not too late here. I by the way, reiterate that this could be the breakout quarter for Federal Express, FedEx. Not too late for the companies that make Aircraft or aircraft parts either. Check them out. For ages, banks have been valued on their net interest income, meaning how much they make on the difference between what they pay for your deposits and what they charge you for your loans. Now you have to switch direction and think which banks will lend more as there's going to be plenty of demand. And that's a much better way to bank stocks. That's why I like Wells Fargo. Now that this asset cop is cap has been lifted and Capital One because it bought discovered is about to rival the big other credit card companies. They're up on a spike, both of them. Maybe you got to wait a bit. But I got to tell you something, you want to own them now? Especially I would tell you if JP Morgan were back where it was the other day. Remember I said to buy the stock because they had that meeting and sent the stock down. Stock was. It went down to 2, 300, 317. I mean enough already. Finally, because we have a president who thinks that rates are still way too high and he'll appoint Jay Powell's replacement who takes over next May. We don't even need to play the guessing game about how many more cuts we're going to get. Although people constantly do it and it does drive me crazy because it makes you no money. I say go to Kalshee. What matters is that the lower rates go, the more people will seek income from higher yielding stocks because the bond market just won't be as competitive. I spent a great deal of time and how to make money in any market discussing these kinds of stocks. But the best ones right now are the nat Gas pipeline operators are all in the book, almost all of which have higher yielding. They're much higher yielding in Treasuries. Now let's get back to those three formerly magnificent stocks that only rallied about 10% this year. Apple Matter and Tesla. Apple's not really impacted by lower rates. It has an immense cash position, probably earn less on its cash. It's considered an a loser. Even though I think their installed base of over 2.3 billion devices and 1.5 billion users means one of these big chat bots will pay them a fortune to be the default platform. Just like Google did with Search. The long knives are always out for Apple. But if we all think that the hyperscalers are spending too much money on data centers, a continual big theme today about Oracle, then how the heck can we chide Apple for not doing much at all of spending on Data centers? If OpenAI were to pay Apple $25 billion a year to be its default AI choice. It might be the greatest free rider case in history. If Gemini were to do it today, with today's Alphabet stock already red hot, that would go up another 50 points. All that said, Apple simply is not a beneficiary of lower rates. And when you're within a day of a rate cut, it's not the kind of stock money managers have any interest in. Apple's a momentary yawner and underperformer as people sell Apple to move into these industrials and these banks. The other stocks I talk about like maybe the retailers, that's just what's happened. It's happened no matter what. There's no way to relate matter to rates either. It simply doesn't matter to the company. The stock is listless because it's become a one day story. The day it reported sorts. I could argue that a Fed cut actually hurts better because it calls attention away from what might be happening at the company, which is very quiet but very good I think the world of this company. And we hear that they're raising prices for their, their products. They should, they're too cheap. But it doesn't matter unless Mark Zuckerberg comes on to tell the story right here. Finally, Tesla's transitioning from auto company to tech company. From a company that's getting its head handed to it in sales to a company that's a nascent leader in robots and self driving cars and in energy storage. The auto business benefits from a rate cut, but Tesla no longer trades like an auto stock. Everything else is totally unrelated to the Fed. It doesn't work. No wind at the back of any of these. Worse, when you get bad news from big company like today, a tech company like Oracle. Oracle obviously seems to be promising more data center construction than its balance sheet can handle. If your data centers are built, that's bad for Nvidia and the entire cohort. There's nothing from the Fed that helps any of these stories. And right now money, money managers only want to want rate cut beneficiaries and not else. So everything trades down in tech makes. Well, listen to me. I wish that there were more to it than this. I wish I could tell you that there was something good happening with the winners or something bad happening with the losers. But it isn't. It just happens to be the stock market bottom line. You're ultimately just looking at fund flows. The more trading oriented hedge funds are doing what I just described. How do I know this? I plead guilty. I was one for 14 years and I did this exactly periodically, though. You know what I did? I get fed up with what everyone was doing. I try to deviate, drifting from the hedge fund playbook, the bottom line. You know what happened? I got pancake pretty much every time. It doesn't work. When you freelance, when you want to be a pirate, when you want to listen to the beat of a different drummer. Hedge funds are like pack animals. When they move at once like they did today, it's very costly to try to go against them and buy a lot of tech. I know. I have the tire tracks my back to prove it. Robert in New York. Robert.

[Caller/Viewer]

Jim, how are you? And I want to wish you a merry Christmas. Happy holidays to you and Lisa and the gang. I really, really. You've done phenomenal things for us this year.

[Jim Cramer]

Thank you, Robert. Thank you so much.

[Caller/Viewer]

You better buy you a good gift, Jim. That's all I can say.

[Jim Cramer]

I don't know. Well, let's see. Let's hope. Let's hope she does. That's all I can say. Thank you.

[Caller/Viewer]

Well, Jim, let me tell you something.

[Jim Cramer]

You've.

[Caller/Viewer]

You've made me so much money in a stock we're not talking about tonight.

[Devin Stocker, CEO of Weyerhaeuser]

Caterpillar.

[Caller/Viewer]

You. You crushed it for me.

[Jim Cramer]

And I was a good one.

[Caller/Viewer]

That $300 a share April 5 was when you were on the show and you said, don't sell the stock at 238.

[Jim Cramer]

And I want to remember that was. Jim Appleby was the. Was the CEO back then. We had just gone to a Cowboys game together. He wasn't really a Cowboy fan, just, you know, but he, but he did the right thing. And I just felt like, you know what? This guy doesn't talk about the stock. He just talks about how he was so excited about all the things that the company and boom. It's been. It's just been. It was a great thing. It was a great thank you for.

[Caller/Viewer]

Thank you for me.

[Jim Cramer]

All right, what's up next? Let's do some more. Let's do some more. Yes.

[Caller/Viewer]

This next company reported fourth quarter results of 4.63% versus 4.38 consensus estimate. Now, this earnings beat represented a 5.8% prize, making this the sixth consecutive quarter that exceeded analysts expectations. Jimbo. And analysts remain modestly bullish on this. And so do I. Because you've got a great management team, Doug. Yearly Toll Brothers.

[Jim Cramer]

Oh, you're so right. Look, that's exactly what you buy here. I think Toll is doing phenomenally. You look, the only thing that was bad was he said, look, if rates don't come down, we're not going to have good numbers. Well, guess what? Rates are coming down. I totally agree with Robert. Great call. Let's go to Sam in Pennsylvania.

[Caller/Viewer]

Sam, Jim, I got an interesting one for you. You know, looking at the cash spread, it looks like the market is pricing in a 75% chance that the tariffs get struck down. So I'm looking at Old Dominion and I'm looking at their less than truckload freight business. And I think that this could be an interesting stock to play. The potential for tariffs coming down and their freight volumes increasing especially.

[Jim Cramer]

I agree with you. I agree with you. I do now just, you know, I like Old Dominion. I really, really, really like J.B. hunt. But my favorite is Federal Express FedEx. Darn. Look, it's hard to go against the grain with a move like yeah today. And sometimes the best thing to do is just follow where the money is flowing and that's what I'm tell is happening on MY MONEY tonight. Is it time to call a comeback for the consumer? I'm taking a look at the stocks tied to the travel industry to see if the recent moves higher have staying power in this market. Then for investors looking for a pure play in the ice cream space, look no further than this new company. Magnum Ice Cream started trading earlier this weekend. No one's paying attention. I'll give you the inside scoop to see if this company should be on your buy list. And shares of lumber producer Warehouser have been on the chopping block this year. Today's Invest investor day was really good, but it can be the catalyst that turn around the stock. I'm finding out more from the CEO so stay with Kramer.

[Mad Money Announcer]

Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer. Hashtag mad mentions. Send Jim an email to mad moneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to mad money.cnbc.com.

[Fox 1 Announcer]

On Fox 1. Now you can stream your favorite live sports so you can be there live for the biggest moments.

[Jim Cramer]

Touchdown.

[Fox 1 Announcer]

And catch history in the making. Fox 1 We live for lies.

[Justin Vineyards and Winery Announcer]

Spirit Dreaming, now known as the pioneer of Paso Justin Vineyards and Winery produces exceptional wines perfect for enjoying this holiday season. Like Isosceles, their flagship Bordeaux style red blend, Justin Wines also offers unique and thoughtful gifts. Pick your wine, choose a box and add a personal message, icon or logo. You'll also find curated gift sets, library wines, magnums, even custom etched bottles. Start gifting today. Visit justinwine.com and use promo code money20 to receive 20% off your order for.

[Indeed Sponsored Jobs Announcer]

A limited Right now, there's a talented person out there who could take your company to the next level. Do you want to hope they see your job posts before your competitors or do you want to match with them with Indeed Sponsored Jobs? Here's how it works. Sponsored Jobs Boost your post for quality candidates so you can reach the exact people you want faster. And get this According to Indeed data, sponsored jobs posted directly on Indeed are 90% more likely to report a hire than non sponsored jobs. Plus, with Indeed sponsored Jobs, there are no monthly subscriptions or long term contracts. Join the 1.6 million companies that sponsor their jobs with Indeed. Listeners of this show will get a $75 sponsored job credit to help get your job the premium status it deserves@ Indeed.com MadMoney just go to Indeed.com MadMoney right now. Terms and conditions apply. Hiring do it the Right Way with Indeed.

[Jim Cramer]

Earlier this year, it looked like the cash strapped consumer might be giving up on travel. Something really changed a few weeks ago as these consumer travel places have been making a powerful comeback. So what is it that resuscitated these stocks? And more important, can they keep running? Okay, first, although we got a quarter point rate cut from the Fed yesterday, for much of November it looked like the rate cut was off the table. We kept hearing the Fed officials talk about persistent inflation, signaling they were inclined to skip a rate cut in the December meeting. But in late November that changed. In fact, you can pretty much trace the bottom to to the Friday before Thanksgiving when the President, the New York Fed, said he thought there was room to cut rates, citing weakness in the labor market, went from expecting no more Fed help to believing that the Fed was still practically on our side overnight, which breathed new life into all kinds of consumer stocks, including the travel players. But it also reminds me not to play the Fed guessing game that so many do. Too many people get it wrong. It makes it just not worth your time. Now, around that same time, we got a bunch of strong earnings reports for some of the nation's strongest retailers. You don't see good numbers from Wal Mart, Abercrombie and Kohl's and the Gap when the consumer is really struggling. Finally, there was the crucial Thanksgiving weekend shopping period. From Black Friday through Cyber Monday. Without getting too in the weeds, we saw pretty much some solid sales growth as we know from tonight when we take a look at that Lululemon number. Now this is important because it cuts against the narrative from most consumer confidence measures which have been very weak. Now, I've warned you about this before. What consumers say in polls about how their feeling is often very different from what consumers actually do with their money. People are very clear that they're not feeling too great about their finances, but they're still spending like normal, at least when it comes to holiday shopping. And I bet the same goes for travel. So what exactly is working in the consumer travel space? Why don't we start with the airlines, which have really roared from the November lows. The Jets ETF, ETF, the best proxy for the group, is up nearly 20% from its low set three weeks ago. 20%. Delta United Market, they're up more than 20% over the same period. Some of the lower cost names like Southwest Air and Alaska are up even more than that, with gains close to 40% from November lows. I spoke with Bob Jordan, the CEO of Southwest, on Squawk on the street yesterday. He sounded pretty darn enthusiastic about his company's prospects now that they're working hand in hand with the very smart activist investors at Elliott Madrid. In a great note published on Sunday, Melius Research analyst Connor Cunningham pointed out that investors have been on the sidelines with the airline stocks waiting to see what kind of impact the government shutdown would have on them. And what we've seen is that the hit was much more than expected with holiday travel demand also looking real good. For example, Delta, I regard that as kind of the biggest best of the airlines. They published an AK last week where they estimated they'd taken a $200 million hit to pre tax profit from the government shutdown. At the same time they said, I'm going to quote your demand remains healthy for the December quarter and trends are strong for early 2026, end quote. That sounds good to me. Not just the airlines. In logic, we've seen a nice move from Marriott International, the world's largest hotel company, up about 14% since the end of October, in part because the company reported a strong quarter in early November. Marriott's CFO also gave a presentation at an industry conference on November 21st where he offered an upbeat outlook and said that, quote, leisure has completely and utterly held up exactly where we thought it would be, end quote. Wow, that's throughout the year. He added that the government shutdown created some noise for business travel, but he didn't seem all that worried about it. Love this stock class by itself and people were so worried about the shutdowns it didn't play a role. Also, while Airbnb has been a very frustrating stock to me since it came public five years ago. Stocks now up more than 15% from its lowest just three weeks ago. In theory, Airbnb makes sense for consumers traveling on a budget, but I've been burned so many times recommend this stock to you and I still like it. I still like it, but I don't feel like sticking my neck out at this very moment. I'd much rather go with the online travel and agencies like Expedia and Booking Holdings. The old price bookings rallied more than 15% gain from its low November low. Expedia is up almost 36 35% where it bottom in early November. Of the two, Expedia had the better third quarter. You know what? I still prefer Booking holdings because it is the support superior operator. That said, Expedia is the cheaper stock. Trading just over 15 times extra earnings is way too cheap versus roughly 20 times earnings for booking. Plus. Both of them should do better if I'm right about the consumer is a lot more resilient than anyone thought of a month ago. Finally, as I looked over the S&P 500 top gainers today, I noticed that three of the top five gains came from major cruise line companies. I thought this strange Royal Caribbean, Norwegian Cruise Lines, Carnival, all up about 6%. But that again is part of what you buy after a Fed cut if you think the consumer is better than you think. Let's also not forget about Viking holdings, the river cruise company that's not including the SB500 that is my favorite. Vikings held up much better than the three majors this year because it's more focused on older, wealthier travelers. The whole group's been roaring for the past couple of weeks, in part because everyone recognized that the Fed is still our friend and the shutdown didn't really matter. Well, I'm happy to see all these travel stocks roaring. You have to be cognizant that if you buy them up here, you are chasing them a little bit. But you know, I'm also wary about the fact that Wall Street's attitude toward anything connected to the consumer can apparently change on the dime like it did three weeks ago. The last change was positive. Who knows what's going next. All that said, I do think most of these travel rallies can continue given that many of these names are still well off their highs and trading at very reasonable price earnings multiples. And that's what people do in this kind of market. Here's the bottom line. We need to stay close to the consumer watching what they're doing rather than in indicators that only follow what people say they're doing to make sure that there's no clear sign that things are deteriorating right now. We don't want to we have to say so close, it's hard to own these stocks. I think consumer travel trade, though, can keep working as long as the Fed remains our friend. I bet these stocks continue to go higher and there's a residue here from the pandemic. It taught us something. We're long on money, but we're short on time. That money is back after the break.

[Mad Money Announcer]

Coming up, I scream, you scream. We all scream for ice cream. But should you treat the dessert as an investment opportunity? Kramer's got the scoop on the Magnum Ice Cream Company Next.

[Fox 1 Announcer]

On Fox one. You can stream your favorite news, sports and entertainment live all in one app. It's raw and unfiltered.

[Jim Cramer]

This is the best thing ever.

[Fox 1 Announcer]

Watch breaking news as it breaks.

[Devin Stocker, CEO of Weyerhaeuser]

Breaking Tonight, we're following two major stories.

[Jim Cramer]

Bam. And catch.

[Fox 1 Announcer]

History in the making. Gimme Freddy debates.

[Jim Cramer]

Drama. Touchdown.

[Fox 1 Announcer]

It's all here baby. Fox 1 We live for lives. Streaming now.

[Capella University Announcer]

Streaming is changing the way we watch live sports and your Internet connection can be the difference between catching the game, winning touchdown as it happens or hearing about it from your neighbor's. Cheers. That's why Comcast is building the network of the future. Using cutting edge AI and edge computing technology, we're bringing fans closer to the action in stunning high definition with ultra low latency. It's not just fast, it's game changing. Learn more at comcastcorporation.com sports known as.

[Justin Vineyards and Winery Announcer]

The pioneer of Paso, Justin Vineyards and Winery produces exceptional wines perfect for enjoying this holiday season. Like Isosceles, their flagship Bordeaux style red blend, Justin Wines also offers unique and thoughtful gifts. Pick your wine, choose a box and add a personal message icon or logo. You'll also find curated gift sets, library wines, Magnums, even custom etched bottles. Start gifting today. Visit justinwine.com and use promo code money20 to receive 20% off your order for a limited time.

[Jim Cramer]

Earlier this week, Unilever spun off its ice cream business as the Magnum Ice Cream Co. M ICC for you home gamers creating the first pure Play ice cream stock that I can recall. Unilever announced this nearly two years ago, but to be honest, I really didn't pay a lot of attention to it. So it took me by surprise when I came into work yesterday. See this multi story tall banner of ice cream outside the New York Stock Exchange with free samples flowing on the floor, Klondike Bars for all is still mad at myself. I didn't grab them. But I did ask myself, hey, maybe this thing's worth owning. Unilever didn't seem to want it, but maybe it'll be worth more as an independent company. I'm optimistic. I'll tell you why. First, the Magnum Ice Cream Company is by far the largest player in the industry. They own four of the world's five largest ice cream brands. Walls, Magnum, Ben and Jerry's and Cornetto. Overall, they sell more than 100 brands across 80 countries, including my old fave Breyers from when you grow up in Philadelphia, that's what you have. Good humor. I was never the good humor man, though. Klondike along with talented gelato, which is my favorite gelato. Not that you care. The Italians tell you it's not ice cream. Then Yaso frozen Greek yogurt bars. I don't like that. But that doesn't mean put it all together in the Magnum Ice Cream Company has 21% global market share. The next competitor close competitors of British company called for nearly and that I've had their stuff has just 11%. Nobody else has even more than 2%. Magnum's the market leader in every developed country except India and China where they're number two. Now, despite the rise of these GOP dash one weight loss drugs that have been handling the packaged food industry, the ice cream business has been doing pretty well. As for Magnum itself, the company was struggling for a while. Under Unilever, they saw a 6.5% decline in volume in 2023, which is one reason their apparent company was so happy to do the spin off. But once you leave or decide to separate the businesses while the ice cream division started buckling down, enacting a plan to achieve half a billion euros in productivity savings and reinvesting those in ice cream. Something they couldn't really do as part of a gigantic conglomerate, could they? Here's how CEO Peter took over put it when he came on squawk on the street yesterday morning. Unilever needed to focus on its category and we needed real focus on ice cream. I now have 19,000 people who go to bed thinking about ice cream, who get up thinking about ice cream. And we're able to invest behind growth opportunity. And we don't have to balance that between all kinds of different categories in Unilever. But focus is on ice cream anyway. Of course he's wrong. There's 19,001 people who get up and go to bed sleeping of ice cream and that's me. But there's nothing I can really do about that because I don't work for him. But this company has already started turning around with organic volume growth going positive again, up 1.1% while organic sales are up 2.8. Remember, they were down. The company's gross margin improved for the first time in years. I'm thinking this things might be a gem. In the first half of 2025, the momentum continued. Magnum's organic sales growth accelerated, up 5.8%. Market share ticked higher. Margins dipped a bit, leading to roughly flat profits year over year. It seems like the company's trending in the right direction though. Everybody in the snack food space lives in fear of Oz Epic. Yet Magnum Ice Cream is putting up solid sales and volume growth. So clearly they're not being hurt too badly. The company has plans to boost its profitability through modest price increases. And they're targeting organic sales growth in the 3 to 5% range. I mean, that's to me, is pretty good. But maybe the most important part of what Magnums had to say is about the GOP Dash 1. See, when you ask most packaged food CEOs about these weight loss drugs, they're incredibly cagey about what the impact Spanish even if they, they may even deny there's any impact at all. But that's their problem. But when Peter Dukuva came on squawk on the street yesterday, he was incredibly straightforward. First of all, Magnum is not in the dark. They get good data on all of this, including from US Retailers that sell both GOP Dash ones and ice cream. What they found is that for every 12% market penetration for the GOP Dash ones, which is about double what we have currently in America, the ice cream market takes a.5% hit to volume growth. Now that's, that's real. It's empirical, it's not great, but it's, I think, a lot better than people thought. His theory? People don't tend to modestly gorge on ice cream the same way they gorge on potato chips or on Ben and Jerry's. Okay, now this is a cookie dough. I had this just the other day. It's really good. Plus, in terms of calories, ice cream is much better than chocolates, chocolate or chips. And it's a great source of calcium and protein. So at the end of the day, Magnum simply not suffering very much from the rise of the gop. It's kind of better than people thought. The other issue that is making headlines here is that the founders of Ben and Jerry's making A lot of noise criticizing for Unilever now the Magnum Ice Cream Company for not promoting the brand's original values. This, to me, it's unimportant. Those guys sold their brand dealer 25 years ago. When he was asked about the issue yesterday, Magnum CEO dismissed the issue, saying that the founders are unhappy with the brand back. Obviously, it's not going to happen. Is Ben and Jerry's making a fortune for. For Magnum. Anyway. Now I've got to tell you, that issue keeps coming up and it just doesn't mean much to the stock price. 5. Let's talk valuation. After a solid start this week, including a 4% gain today, today, Magnum currently sits at $15 and change. A couple. Now, analysts have rolled out coverage on this stock this week, so we have some early consensus estimates here. Magnum is expected to generate $1.1 $0.26 of earnings per share this year, though that's expected to fall slightly to $1.23 next year as the company makes some investments in its first year as an independent entity. I'm fine with that. Either way, you're talking about a stock that's selling for roughly 12 to 13 times earnings. Now let's think about that. This. This is not bad. See, Hershey, the leading chocolate and candy outfit, sells for 27 times next year's numbers. Cookie champion Modelese International is closer to Magnum, but still trades at a Premium, selling for 17 times next year's numbers. Nestle Good Compass, a European food company with big chocolate and even ice cream business, is in the same range just under 18 times next year's numbers. That said, these companies are expected to grow earnings next year, whereas I just said it. Magnum's currently expected to take a small earnings hit in 2026. Still, the stock's trading at a pretty sizable discount to its peers. So if you want to bet on the ice cream business, you got my bus to do some buying right here. I love an IPO that comes out and doesn't shoot up to the sky and then everybody gets hurt. I like one that's not on anybody's radar screen. That's this deal. Here's the bottom line. We finally, by the grace of God, or at least the grace of you, have a pure Play ice Cream stock. Now that the Magnum Ice Cream Company has been spun off and started trading independently. And after taking a closer look at the story, I have to say this one's pretty sweet. I'm sorry I had to go there. Couldn't resist. And may I also say apropos of how to make money any market. My book. If you want to give a share to a kid of a stock and you want him to follow it, I'm thinking it's this one. I used to think it's Disney. This one has more upside. Let's go to Bill. North Carolina Bill.

[Caller/Viewer]

Morning Jim. Merry Christmas.

[Jim Cramer]

What's up?

[Caller/Viewer]

Hey, I bought Shake Shack back when they said it's the best thing since sliced bread. They got tons of cash. They're building stores bought at $123 a share. I'm losing my shirt. Should I hold or sell and go?

[Jim Cramer]

This is such a great question. Now you have to understand that Rob, Rob lynch is doing a remarkable job and he's a great CEO. Here's the problem. This stock is trading with the. The price of beef and cattle went up and up and up. I think the president's going to try to bring cattle down. I think that means you buy Shake Shack. I think it doesn't matter where stocks come from. It matters where it's going to. I would never bet against Rob Lynch. I think that you buy shake shack at $79 a share. Now if you want to bet on the future of the ice cream business which I have to tell you after doing the research I do, this is the best of the bunch and you can do some buying right here of Magnum. Now let's mark one may have bunny head pretty much sitting down with Weyerhaeuser the lumber producer. Stock has been going down for most of 2025 but is it too late to yell Timber. My favorite song. I'm getting the latest from the company's top brass efforts investor and Cisco's finally round trip this.com era highs. I'm not I'm going to break down. Why the stock looks more compelling now than ever. And all your calls rapid fire in tonight's edition of the lighting round. So stay with Kramer. Earlier today we got an update from warehouse. It's the largest private owner of Timberlands in North America and its investor meeting where management laid out an optimistic long term forecast for 2030. Unfortunately where the largest business is wood products and somehow it's still joined at the hip of the American housing market. And that has not been a great place to to be in 2025. I tell you that a lot. And that's why the Stock's down nearly 18% for the year over the Fed putting through a 25 basis point rate cut yesterday. There's a real chance mortgage rates might start coming down which would really make the stock go higher. So let's take a closer look with Devin Stockers the presidency of Warehouser to learn more. Mr. Stockholm, welcome back to Mad Money.

[Devin Stocker, CEO of Weyerhaeuser]

Great to see you Jim. Thanks.

[Jim Cramer]

So I want to brainstorm with you. I see all the things you're doing. You have a, what we call a deck and this business page after page of really original thinking. I mean frankly kind of outside the box. Whether it be AI, whether it be robotics, whether it be all the different things that you're doing for the environment. And yet somehow it seems to still come down to the price of lumber and whether there's a big surge in housing. How can you make it so it's not about those after all the things you've tried.

[Devin Stocker, CEO of Weyerhaeuser]

Yeah, Jim. I mean so really excited earlier today to lay out our multi year growth strategy. It comprises initiatives really cutting across all of the businesses. Many of those are not going to be directly tied to the housing market. So that's an opportunity for us to diversify our revenue stream to some degree. You know the housing market, it's been stuck in second gear here recently. Repair and remodel has been a little soft and so that's been a headwind for product pricing. But that being said said we still have a lot of optimism over the long term. We know we're significantly under built in us from a housing standpoint. We've got to build millions of homes. That's going to be a strong tailwind for our business ultimately.

[Jim Cramer]

But at the same time I looked at, I'm not going to, I don't mean to slag the other guys and I really don't mean to, that's important. So I've looked at all the companies but your so called cops, the other companies aren't doing nearly as many interesting things as you are but their trajectory of the stock is similar. It's almost as if it's just a big ETF and you can't get out of it.

[Devin Stocker, CEO of Weyerhaeuser]

Yeah, well I think again it goes back a lot of it to just the macro overhang from what's going on with housing. But ultimately, you know, we are really doing things that are out in front of the rest of the industry. When you look at the work we're doing in climate solutions, the industry leading margins, all of the work we're doing with our new strategic land solutions business, we're really in a class of our own at this point and we've got to go out next, execute, we've got to deliver on this growth plan. But ultimately I think the value is there and, and we'll we'll see that reflected in the stock price.

[Jim Cramer]

Okay. I mean, one of the things that you're doing well, you've done so many things for the environment. And we have a president, for better or worse, or like him or hate him, he does not share the orientation that you have brought, which I think is frankly just physics and chemistry, not to. These were things you learned in physics and chemistry when you took them. And you're not getting much credit for some of the terrific things you're doing for the environment.

[Devin Stocker, CEO of Weyerhaeuser]

Yeah, well, I mean, I think there's a benefit to a lot of the things we do. Just the nature of forestry, making things out of wood. There's an inherent climate benefit to that. Now, I will say, you know, the administration has been very supportive of our industry.

[Jim Cramer]

The industry, absolutely.

[Devin Stocker, CEO of Weyerhaeuser]

But just in general, supporting manufacturing, rural communities.

[Jim Cramer]

That's true.

[Devin Stocker, CEO of Weyerhaeuser]

Wood products, the lumber space. So we have had good support for the administration, but more broadly, our business has always been run sustainable back 100 years. This is a core to who we are. And a lot of the new climate solutions businesses that we're bringing to market really reflect that right now.

[Jim Cramer]

Yes. $16 billion market cap. You have some debt, so you take it to the 20s. We have a country of very, very rich people come from, not the country. I understand that there's a lot of people aren't, but has a rich person ever come to you and say, you know what, I will pay you 8 billion for your Northwest properties?

[Devin Stocker, CEO of Weyerhaeuser]

That has not happened today. I think people maybe underappreciate the magnitude of how challenging it is to run a portfolio. Magnitude. That being said, they're always welcome to buy into the stock. That's a very easy way to get into the space with your balance sheet.

[Jim Cramer]

Could you double your buyback if you wanted to?

[Devin Stocker, CEO of Weyerhaeuser]

We could and we have. I mean, when you look back over the last several years, since we rolled out our 2021 Investor Day targets, which we announced, we hit those earlier today, We've closed out $1 billion share repurchase program. Earlier this year, we put another billion dollar program in place. And so that's clearly an area where we think that creates value and something that we're going to continue to do.

[Jim Cramer]

When I look at what the homebuilders own, their acreage and I look at your acreage, you represent a substantial discount to what they have in their. In their land bank, so to speak. Do people understand that?

[Devin Stocker, CEO of Weyerhaeuser]

They don't. And that's a great point, Jim. And that's one of the opportunities that we have. And one of the growth initiatives that we laid out earlier today, there's an opportunity for us to lean into that real estate development piece with a little more heft and really unlock some of that value and take it back to the Weyerhaeuser shareholders.

[Jim Cramer]

Now, I covered Asia very closely. A friend of mine ran the company and, and it was very clear that there are characteristics that are, that are better than wood when it comes to say to, if you have a beach house, so to speak, but wood is kind of irreplaceable in a lot of ways, both inside and outside. Did any of these kind of composites with, with tires, with plastic, do they represent a threat to warehouse?

[Devin Stocker, CEO of Weyerhaeuser]

They don't. In fact, I would say there's an opportunity for us to expand the use of wood fiber. And one of the things we rolled out earlier today with the new biocarbon business is the ability to take wood from mill residuals, pulp wood that ordinarily would have gone into pulp and paper, run that through a proprietary process and make a drop in replacement for metallurgical coal. So that's an example of looking for opportunities to leverage our wood fiber to drive.

[Jim Cramer]

Well, you know, I was thinking, because I went to co down with you and Brainstorm, because you're such a thoughtful person about not just the, about wood and not just about land, but the environment and the right thing to be as a steward of our earth, you've come up with a. No, you've come up with Maybe, I'd say, 10 incredibly important initiatives, but they don't seem to matter. Will they matter by 2030?

[Devin Stocker, CEO of Weyerhaeuser]

They will, Jim. And I think part of that is when we started our climate solutions business back in 2020, 21, we set a goal to hit $100 million of EBITDA by the end of this year. We've closed that off, we've hit that target, and now we're ready to really start to scale this business. And so for 2030, we've increased that target to $250 million. And we think there's opportunity to continue to grow that over time. So as that picks up momentum and becomes larger and more scale, I think we'll get to see that more reflected in the stock price and the valuation.

[Jim Cramer]

If you had to put all the, the different things that you've come up with and you're really an inventive person together, don't you think that they alone exceed the value of the, of the market cap?

[Devin Stocker, CEO of Weyerhaeuser]

Yeah, there's no question at this point, we're undervalued you can look at the value of our timberlands, the value of our wood products business, all the things we're doing with climate solutions and real estate. No question. And I think part of that is, you know, we need a catalyst with some more housing momentum repair and remodel, which I do think we'll come back at some point in the not too distant future. That's a little bit of a headwind, but ultimately the market will realize and understand that.

[Jim Cramer]

Well, I know that the company is radically undervalued because of maybe it's because of tariffs, maybe because of housing, but it has to be valued. It will rule out, so to speak, the things you're doing. Will. Will. I have great confidence in that.

[Devin Stocker, CEO of Weyerhaeuser]

Yeah, I appreciate that, Jim. And, and we agree and like I said, we're really excited about the growth initiatives that we laid out earlier today as these really start to gain momentum, which I will just say the vast majority of these already underway.

[Jim Cramer]

Right.

[Devin Stocker, CEO of Weyerhaeuser]

Those that aren't will be shortly. A lot of control. So we have a lot of confidence in our ability.

[Jim Cramer]

I urge people to look at this deck if you just even just to be thoughtful about what can be done with the earth, with trees, with wood, but also with your dollars. That's Devin Stockfish, president CEO of warehouser W. I'm frustrated because I am so thrilled about all the things you do and I hope you get credit for it one day.

[Devin Stocker, CEO of Weyerhaeuser]

All right, thanks a lot, Jim.

[Jim Cramer]

Appreciate the support. Yeah. Money's back at blueprint.

[Mad Money Announcer]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next. It is time. It's time for the light rounds with rapes. I'm teaming with stock play above it by so just being recorded every time my stamp appears to grab it. So the fog you're playing in sound and then the lighting round is over. Are you ready, Steve? Daddy tungsten light round crunching, buddy. Let's start with Steve in New York. Steve. Oh yeah, Jim. Huge fan squawking the street.

[Caller/Viewer]

You got a heart of a lion, Jimmy.

[Jim Cramer]

Thank you. Thank you, buddy.

[Caller/Viewer]

Quick question, Boss.

[Jim Cramer]

What's your one year projected performance on a MicroStrategy MS? Let's leave it like this they call it now strategy. But I like bitcoin and I think you should just own bitcoin. I don't want any derivative of bitcoin. I just want bitcoin. Let's go to Roman and Marilyn. Roman to you, Jim. I want to give a shout out to Mr. Marks. I'm doing good.

[Caller/Viewer]

And the stock I'm asking about is bank of Nova Scotia ticker symbol bns.

[Jim Cramer]

I'd like BNS from the first time I was in the Caribbean. I said, boy, these guys just own the Caribbean. It's a very good company. It yields 4%. Let's go to Mark in Wisconsin. Mark.

[Caller/Viewer]

Hey Jim, I'm a three page caller.

[Jim Cramer]

Love your book. Thank you. The only company with direct to cell phone broadband, low earth orbit satellite connectivity will launch their six and a half ton Bluebird satellite on Monday.

[Caller/Viewer]

The stock is already in orbit.

[Jim Cramer]

They have agreements with Verizon and Vodafone. What is your latest take on ast?

[Caller/Viewer]

Space mobile?

[Jim Cramer]

Jim, the space stocks are plain and simple specs. That doesn't mean you shouldn't buy. As I say in my book, you should buy one. This may be the one to buy. I'm not against it, but you have to understand that if it goes down, it's speculative, you could lose a lot of money. Let's go to Dave in New Jersey. Dave.

[Caller/Viewer]

Jim, thanks for. Thanks to what I've learned from your show. I've been able to pay for my son's education at St. Joseph's University in Philly.

[Jim Cramer]

My son's name is Matthew.

[Caller/Viewer]

He's an Eagles fan and a big fan of yours. If you give him a shout out, I'd appreciate.

[Jim Cramer]

Absolutely. Sell, buy, sell or hold Dexcom. Thank you. You know, it's too rich a stock and I do think the GOP Dash 1s are going to have such a dramatic effect on their market. I don't want to own the stock now. It has a dramatic effect on the psychology of the people who want to buy the stock. That's a better way to put it. Let's go to Andy in New York. Andy.

[Caller/Viewer]

Hey, Jim. How's it going man?

[Jim Cramer]

Not bad, Andy. How you doing? Not too bad myself. I got a stock for you here. Hopefully I can get a booyah out.

[Caller/Viewer]

Of you for it.

[Jim Cramer]

All right, it's ticker nrg. You are going to get a booyah because I like the nuclear component there. I think it's to going a very well run company. Let's go to Judith in Pennsylvania. Judith. Hey there, Mr. Kramer. I'm a fellow Pennsylvanian, but I'm from the other side of the state. The other side of the state is really kind of like Redding. Go ahead. No, yeah, okay. No, I know the state stops there. That's too far out. That's way too far. It's like exit 4220 of the Penn. Pennsylvania Turnpike versus say the, the show test. Exit 360. That's me. How can I help you? Yeah, probably. Okay. I was wondering what your thoughts are on the Latin Amazon Mercado Libre. That is such a good company. I was an original investor in it and I had to give up stock. Obviously I'm not on any stocks. That is a good one. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[Mad Money Announcer]

The Lightning Round is sponsored by Charles Schwab. Coming up, could Cisco be the next company to seize on the AI revolution? Cramer takes a closer look at the web giant and whether investors are using the right approach next.

[Jim Cramer]

One of the more time honored shibboleths in this business is that irony is somehow an investment strategy. It's not. Lots of smart people, or at least people who think they're smart, like to point out that stocks are index funds that after wandering in the wilderness for ages, have finally broken out. For some that's a celebration. For others it's a clackson to get out. Now take today's chatter about Cisco. The company still represents the backbone of pretty much all networking and it legendarily led the dotcom movement 25 years ago. For a short time, Cisco was the world's largest company valued at $555 billion. That's when the stock set its previous closing high of $80.06 per share, which turned out to be a top for the ages. It took Cisco 25 years to temporarily get back to the same price, although the level didn't hold today and it finished at $79 and change. By the way, its market capitalization still nowhere near the peak. So what's the captivating irony here? Simple. After that top, the stock endured one of the most hellacious sell offs of all time. Sell, sell, sell. Bottoming at $8. 2012 on October 8th of 2002. That's a 90% decline. Staggering. I don't know how you come back from that. Those who invest in irony see that peak back in 2000. They say, oh, here we go again. Except this time it's the data center boom, not the Internet boom. Let me tell you how foolish that is. I spent a long time in how to make money in any market. My book right here, talking about the M, the key letter in the pricing model for stocks. The end being the shorthand for the multiple that the market pays for companies earnings. That's how stocks are value at the top. In 2000, Cisco's forward price earnings multiple was somewhere near over 130 that's ridiculously hard for any market. That should have been clarion call. Now Cisco's valued at less than 19 times forward earnings now literally less than a sixth of its peak valuation in the dot com era. These days it's viewed as a stable, growing tech company that helps clients manage their networks and keep keep them secure. That's a much more prosaic version of Cisco than we were being pitched 25 years ago. I know it well because my hedge fund owns Cisco for years and made a killing in it. I even fatally suggested at one point that management should celebrate the money it had made for people not too long before the peak. Of course, Cisco turned out to have made you nothing if you stubbornly held onto it. We sold it as well as almost all of our other stocks in March 2000, shortly before the top. I was worried about a deluge of stock sales from a host of sectors rate companies that didn't have any earnings and the insiders were dumping like mad. They're selling brought down the whole.com edifice. This time though, we got long Cisco for the charitable trust precisely because of how cheap it is and how CEO Chuck Robbins has reinvented the company. We don't invest in irony for the trust, we invest in companies. And this company is at the heart of the revolution. Yet it doesn't get the respect or the price earnings multiple that its compadres do. Despite accelerating product order growth and a rock solid balance sheet, in the latest quarter, Cisco's earnings jumped 10% on an annual basis. Revenue increased 8%. These are good numbers, people, for a stock that trades just 19 times earnings. I keep hearing that the AI revolution will end like the dot com revolution in 2000. A disaster. It's true that there are plenty of fully valued companies now, but time and again they reported higher than expected earnings. And it turns out they only looked fully valued on estimates that were too low. So many turned out to be cheaper in retrospect, including Cisco along with Metta, Alphabet and of course Nvidia. If you look at the winners this time around, they're incredibly well capitalized. Except Oracle, which is struggling with a monster, a debt center data center bet, and who knows what's going to happen there? If you're investing in irony, I think you should buy a book. The portable Dorothy Parker only cost 999 cents, so Kindle. A whole lot of bang for your buck there. But what it comes to stocks, irony is just a loser, plain and simple. I'd like to say there's always more market somewhere I promise you to find just for you right here on Man Money. I'm Jim Cramer. See you tomorrow.

[Jim Cramer Disclaimer 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@ Capella University, learning.

[Capella University Announcer]

The right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.