Mad Money w/ Jim Cramer – January 22, 2026 Episode Summary

Overview

In this lively episode, Jim Cramer delves into the dynamics of recent stock market performance, particularly the shifting fortunes of the “Magnificent Seven” tech giants and the explosive rise of memory/storage stocks. Cramer analyzes the psychological and financial underpinnings driving sector rotations, unpacks recent earnings from Procter & Gamble and 3M, and interviews Sportradar’s CEO about the sports betting landscape. The show features Cramer’s trademark stock insights, the ever-popular Lightning Round, and lessons on investor psychology for earnings season.

Main Theme

Navigating Market Rotations and Stock Psychology:
Cramer explores how investor behavior, momentum trading, and shifting narratives are influencing capital flows—from mega-cap tech stocks to storage plays and select turnaround stories. He emphasizes the importance of understanding both fundamentals and mass psychology when making stock decisions, especially during volatile earnings seasons.

Key Discussion Points & Insights

1. The Market’s Shifting Focus: Magnificent Seven vs. Storage Stocks

Timestamps: 01:12–10:29

• Index Funds Do Well—But Active Stock Picking Still Wins:
  Cramer notes that while index funds continue to reward investors (“Today was another good day for index fund holders. Dow gaining 3 or 7 points…” [01:12]), superior gains can be achieved through quality individual stocks, citing the long-term success of FAANG/Magnificent Seven names.

• Compression of Tech Valuations:
  Tech leaders like Meta are seeing shrinking price-to-earnings ratios (from 30x to 22x over the past year) as investors grow more skeptical about their growth prospects.

  “The Magnificent Seven and their buddies are bereft of friends in this market. … That’s a sign the market’s gotten skeptical.” — Jim Cramer [03:45]

• The ‘Great Transference’: Capital Flows to Memory/Storage:
  Investors are rotating from Magnificent Seven into surging storage stocks (Micron, Seagate, SanDisk, Western Digital), driven by AI-fueled demand for data storage—and the resulting supply crunch.

  “We’re in this bizarre, never-before-seen moment where the storage companies just keep raising prices … like gasoline in a car … and there’s no resistance.” — Jim Cramer [05:25]

• Momentum Over Fundamentals:
  Cramer emphasizes that “momentum managers” are selling tech giants to chase the parabolic rise in memory/storage, causing temporary undervaluing of the Magnificent Seven.

• Cautious Optimism for Mega Cap Tech:
  Despite the current outflows, Cramer recommends staying invested in the Magnificent Seven, expecting money to return once the storage surge peaks:

  “I think that the money will ultimately flow back to most of the seven, not just Alphabet, because these companies have too many levers, too much money, and are run by people who are too smart to bet against.” — Jim Cramer [09:49]

• Notable Quote:

  “What you’re seeing right now is the great transference. For the first time since the creation of the Magnificent Seven … these stocks have become donors to the market capitalization of these storage companies.” — Jim Cramer [06:40]

2. Procter & Gamble: Disappointing Quarter, Soaring Stock

Timestamps: 13:28–21:23 & 43:52–48:02

• Beaten-Down Defensive Play:
  Procter & Gamble (PG) had underperformed due to consumer and margin concerns, with management signaling softness ahead.

• Earnings Recap:
  Revenue and organic growth disappointed, but tight cost controls and aggressive buybacks led to a modest earnings beat. Shares initially dropped but rallied nearly 3% as the conference call clarified context and renewed guidance.

• Key Management Message:
  New CEO Shailesh Jejurikar stressed P&G’s international growth and ongoing investment.

  “Procter has a new CEO. This would be his inaugural quarter. So he didn’t own the previous CEO’s mistakes. … He hit the ground running.” — Jim Cramer [43:52]

• Stock Rally Explained:
  Cramer points to the psychology of low expectations:

  “When a stock rallies on a seemingly disappointing quarter, it’s a textbook tell that it’s got a lot more room to run.” — Jim Cramer [20:47]

• Actionable Takeaway:
  Cramer adds PG to his “charitable trust,” signaling confidence in a continued rebound.

3. 3M: A Contrarian Turnaround Story

Timestamps: 23:15–30:37

• Context:
  Long a “house of pain” due to poor execution and litigation risk (notably “Forever Chemicals”), 3M underwent a transformation: spinning off businesses, appointing a new CEO (Bill Brown), and settling lawsuits.

• Execution & Innovation:
  Under Brown, margins and growth are improving; new product launches are surging (up 68% YOY), with management refocusing on innovation.

• Earnings Reaction:
  Despite decent results and solid guidance, shares fell on lower-than-desired margin outlook; Cramer sees this as an overreaction.

• Thesis:

  “After this harsh pullback, I think you’re getting a chance to buy into a great turnaround story for the first time and at a discount. … You have my blessing to buy it right here, right now.” — Jim Cramer [30:26]

4. Sportradar CEO Interview: Betting on the Picks-and-Shovels Play

Timestamps: 33:43–39:46

• The Set-Up:
  Sportradar (SRAD), a data and analytics leader for sports betting, is down 40% despite robust industry demand, due to investor uncertainty about competition (prediction markets) and legislative progress in large US states.

• CEO Insights:
  Carson Crowley emphasizes the company's competitive positioning: major US states (California, Texas, Florida) are legalization opportunities, and their exclusive data partnerships are invaluable.

• Upcoming Catalysts:
  Major sporting events—the Winter Olympics and expanded World Cup—should drive betting volumes and data revenues:

  “Olympics and the World Cup in one year… that’s driving revenue for our clients. And when our clients are doing well, we are doing well.” — Carson Crowley [39:23]

• Cramer’s Perspective:
  He thinks the market misunderstands SRAD’s upside and expects a turnaround as event-driven revenue materializes.

5. Lightning Round—Stock Takes Rapid Fire

Timestamps: 40:12–43:37

Notable calls include:

• Steel Dynamics (STLD), Nucor (NUE): Both solid U.S. steel plays, beneficiaries of tariffs. “Those are the two. Wow, what a terrific buy.” [40:18]
• Royalty Pharma (RPRX): Excitement about the model funding biotech. “Terrific company.” [40:41]
• Coherent (COHR): Hot optical electronics play for AI; buy on dips. [41:11]
• New Era Energy (NEE): “Something crazy going on there…Let me do some work on it.” [41:34]
• Lucid (LCID): “Take the loss.” Suggests Rivian as a better EV play. [42:01]
• Venture Global: Avoid; disappointing delivery and execution. [43:22]

6. Investing Psychology & Lessons for Earnings Season

Timestamps: 43:52–48:02

• How to Trade Earnings:
  Buy fundamentally solid, beaten-down stocks with low expectations—traders will exit on “bad news,” and strong management can spark post-earnings rallies.

  “It’s all psychological. When a stock gets too hated or too loved, it’s often due for a trajectory change.” — Jim Cramer [46:35]

• Case Studies:

  • Procter & Gamble: “You had to buy this one for the quarter.” [47:28]
  • Boeing: “You can’t defeat Boeing.” [44:56]
  • GE Aerospace: “A student gets more A’s…can get a praise and in fact is criticized.” [45:45]

Notable Quotes & Memorable Moments

• “On the surface, the stock market seems totally binary…” — Jim Cramer [01:12]
• “To watch the levitation of a Micron or SanDisk every single morning before the market opens is about what’s happening: the transference.” — Jim Cramer [06:56]
• “Don’t overstay your darn welcome. I think money will eventually flow back to the 7…” — Jim Cramer [10:10]
• “This is a contrary view from the street. The turnaround [in 3M] is real.” — Jim Cramer [29:52]
• “Buy fundamentally fabulous companies that have fallen on hard times momentarily…” — Jim Cramer [44:18]
• “When a stock rallies on a seemingly disappointing quarter, it’s a textbook tell that it’s got a lot more room to run.” — Jim Cramer [20:47]

Timestamps for Key Segments

| Segment | Start | Notable Moments | |--------------------------------------------|---------|-------------------------------------------------------------| | Opening Market Commentary | 01:12 | Rotation from big tech to storage/memory stocks | | The “Great Transference” Explained | 05:25 | Storage stocks surge, tech multiples compress | | Procter & Gamble Earnings Analysis | 13:28 | Surprise rally, new CEO’s impact | | 3M Turnaround Analysis | 23:15 | Litigation resolved, new management, time to buy | | Lightning Round (Stock Q&A) | 40:12 | Quick takes on multiple tickers and industries | | Sportradar CEO Interview | 33:43 | Betting data, Olympics/World Cup as catalysts | | Investing Psychology: Earnings Trades | 43:52 | Crowd behavior, how to spot psychological inflection points |

Conclusion

Cramer’s episode offers timely, actionable insights for navigating turbulent markets: recognize where momentum is headed, don’t bet against enduring quality, and harness the power of psychology when buying “hated” but fundamentally sound stocks. With detailed breakdowns of trending sectors, post-earnings stock behavior, and the emotional tenor of investing, listeners are equipped to think critically and act decisively.

Stay with Cramer—“There’s always a bull market somewhere!”