Mad Money w/ Jim Cramer – Episode Summary (January 22, 2025)

Host: Jim Cramer
Produced by: CNBC
Release Date: January 23, 2025

1. Market Overview and Federal Reserve Commentary

Timestamp: [01:22]

Jim Cramer opens the episode by discussing the evolving relationship between the Federal Reserve (Fed) and the stock market. He highlights a shift in focus from Fed policies to business-driven market movements, suggesting that the Fed's influence may be waning in the current economic landscape.

• Cramer states, “My mission is simple to make you money. I'm here to level the playing field for all investors.” ([01:22])

• He contrasts the past dominance of Fed decisions under President Biden with the current administration’s (President Trump) approach, emphasizing that businesses now play a more significant role in influencing the market rather than Fed policies.

• Key Points:

  • Fed's Diminished Role: The Fed's rate changes and policies have historically driven market movements, but recent shifts indicate a potential decline in their influence.
  • Business-Centric Market: Under Trump, there is a renewed focus on business strategies and deals influencing the stock market.
  • Animal Spirits: Cramer introduces the concept of "animal spirits"—business optimism and activity driving stock prices, independent of Fed actions.

Quote:
"Stocks are going to trade on earnings, not just on interest rates. And I think that frankly, is terrific." ([04:45])

2. Political Influence on the Economy and Investments

Timestamp: [04:45] - [21:04]

Cramer delves into President Trump's active engagement with CEOs and his hands-on approach to economic strategies, contrasting it with the previous administration's more restrained stance.

• Engagement with CEOs: Cramer notes Trump's unprecedented communication with business leaders, facilitating large-scale deals and fostering a pro-business environment.

• Significant Deals Discussed:

  • Project Stargate: A massive investment in data centers worth $500 billion, boosting stocks like Oracle, SoftBank, ARM Holdings, and Nvidia.
  • TikTok Acquisition Negotiations: Trump’s aggressive stance in encouraging ByteDance to sell TikTok at a reduced price, likened to "the Godfather treatment."

• Energy Sector Transformation:

  • Oil and Gas Strategy: Trump's reformation of the oil and gas industry aims to lower domestic prices and counteract Russian energy influence.

• Market Implications:

  • Shift from Fed to President: Cramer posits that Trump's policies and initiatives may overshadow Fed decisions in steering the stock market.
  • Bull Market Across Sectors: Emphasis on bullish opportunities arising from Trump's economic maneuvers.

Quotes:

"He may not matter anymore. Interest rates always matter. That's not going to change." ([03:30])

"I am witnessing a changing of the guard from Powell to Trump as the most important person in the economic firmament." ([17:00])

3. Energy Market Analysis with Rusty Brazil

Timestamp: [13:36] - [21:45]

Jim Cramer interviews Rusty Brazil, founder and executive chairman of RBN Energy, to discuss the potential impacts of President Trump's energy policies on the U.S. energy market.

• Discussion Highlights:

  • Drill Baby Drill:

    • Cramer’s Perspective: Advocates for increased drilling to boost production and lower prices.
    • Brazil’s View: Points out that increased production could lead to lower prices, potentially reducing dividends for energy companies.

  • National Energy Emergency:

    • Cramer's Argument: Claims an unforeseen energy crisis driven by the surge in data center demand and the need for diverse energy sources.
    • Brazil’s Counterpoint: Emphasizes the role of courts in potentially blocking presidential orders aimed at increasing fossil fuel production.

  • Natural Gas and Coal:

    • Natural Gas Prices: Expected to rise due to increased demand and limited production capacity.
    • Coal’s Renaissance: With Trump’s support, coal producers like Alliance Resources Partners LP may experience a revival despite environmental concerns.

• Key Insights:

  • Regulatory Challenges: President’s orders to boost energy production face legal hurdles.
  • Market Volatility: Natural gas prices are poised for significant fluctuations, presenting both opportunities and risks for investors.
  • Investment Opportunities: Coal companies may see renewed interest and potential growth, especially master limited partnerships offering high yields.

Quotes:

"As the President, if I saw the market go down for a couple of days, I'll call up Elon Musk and say, hey man, let's get something positive." ([20:32])

"Natural gas has been held down for a long time... we're going to start exporting a lot more LNG. Prices are going to go up." ([21:20])

4. Stock Highlights and Recommendations

Timestamp: [08:37] - [21:45]

Throughout the episode, Cramer engages with callers, providing stock recommendations and insights based on current market trends.

• UPS vs. FedEx:

  • UPS ([08:37]): Considered due for an upside surprise; suggests moving to FedEx instead.
  • FedEx ([08:51] - [09:18]): Praised for better management compared to UPS.

• Tesla Concerns ([09:41] - [09:58]):

  • Current Status: Stalled stock due to recent earnings.
  • Future Outlook: Requires new, innovative developments to drive growth.

• Netflix Performance ([23:21] - [36:56]):

  • Earnings Report: Delivered a strong quarter with 19 million new subscribers, surpassing expectations.
  • Content Strategy: Successful original programming and strategic sports broadcasting to retain subscribers.
  • Growth Drivers: Ad-supported plans and international expansion contributing to revenue growth.
  • Cramer’s Stance: Continuously recommends Netflix, citing its robust performance and market momentum.

• Additional Stocks Discussed:

  • Dogtopia (Ad Segment)
  • Google & Arista Networks ([31:18] - [31:52]): Positive earnings and growth prospects.
  • Fubo TV ([30:46] - [32:00]): Acknowledged as attractive speculation despite losses.
  • Wingstop ([35:34] - [36:56]): Expressed concerns over inconsistent performance and management communication.

Notable Quotes:

"If you have to ask me which is which, then you aren't ready to handle the next four days, let alone the next four years." ([21:04])

"I'm going to give you a two for. I'm going to say the same thing about Palantir. Palantir and App Lovin should go get married." ([34:03])

"We were able to bring a big audience, a young audience, a more global audience in linear television." ([31:45])

5. Lightning Round Highlights

Timestamp: [30:46] - [36:56]

In the Lightning Round segment, Cramer addresses multiple caller inquiries, offering quick takes on various stocks and investment strategies.

• Beyond (First Caller):

  • Advice: Recommends holding stock in profitable companies, emphasizing the importance of current earnings.

• AppLovin and Palantir (Repeating Callers):

  • Stance: Positive outlook with continued growth potential; advises buying on dips.

• Sport Radar ([39:02] - [39:20]):

  • Recommendation: Advises to buy or hold, noting profitability and growth.

• Wingstop ([35:33] - [35:43]):

  • Concern: Warns about inconsistent performance and lack of clear explanations for stock movements.

• Comfort Systems USA:

  • Recommendation: Strong endorsement as a "must-own" stock for new investors.

Notable Quotes:

"I only want to Recommend Companies in 2025 that are making money now. We're going to Russell in New York." ([33:34])

"H Vac. And that, ladies and gentlemen, is the conclusion of the Lightning Round." ([36:56])

6. Closing Remarks and Final Insights

Timestamp: [37:20] - [45:13]

Cramer concludes the episode by addressing an impending energy crisis, elaborating on the urgent need for diverse energy sources to meet the surging demand from data centers and other infrastructures.

• Energy Crisis Factors:

  • Industrial Growth: Lack of recent industrial expansion has left energy infrastructure underprepared.
  • Nuclear Power Revival: Plans to reopen and build new nuclear plants to meet demand.
  • Coal’s Potential Comeback: Despite environmental concerns, coal may see renewed usage due to energy shortages.

• Investment Opportunities:

  • Alliance Resources Partners LP: Highlighted as a profitable coal producer with attractive yields.
  • Coal as an Investment: Suggests coal might experience a renaissance, presenting potential gains for investors.

• Final Thoughts:

  • Bull Market Somewhere: Emphasizes the resilience of the market, assuring listeners that opportunities exist across various sectors.
  • Commitment to Making Money: Reiterates his mission to help investors navigate the market for profit.

Quote:

"I hate to add the list, but we have one serious, totally unforeseen energy crisis. And if we don't work fast, we're going to be overwhelmed by it." ([37:20])

Conclusion

In this episode of Mad Money, Jim Cramer provides a comprehensive analysis of the current stock market dynamics, emphasizing the shifting influence from the Federal Reserve to active presidential policies under President Trump. He explores significant investment opportunities in sectors like energy, technology, and consumer services, supported by expert insights from Rusty Brazil. The Lightning Round offers listeners quick, actionable advice on various stocks, reinforcing Cramer's commitment to educating and guiding investors toward profitable decisions.

Disclaimer:
All opinions expressed by Jim Cramer on this podcast are solely his own and do not reflect the opinions of CNBC, NBCUniversal, or their parent companies. Investors should conduct their own research before making investment decisions.

Notable Quotes with Timestamps:

• "Stocks are going to trade on earnings, not just on interest rates. And I think that frankly, is terrific." ([04:45])

• "I am witnessing a changing of the guard from Powell to Trump as the most important person in the economic firmament." ([17:00])

• "Natural gas has been held down for a long time... we're going to start exporting a lot more LNG. Prices are going to go up." ([21:20])

• "I hate to add the list, but we have one serious, totally unforeseen energy crisis. And if we don't work fast, we're going to be overwhelmed by it." ([37:20])