← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 1/22/26
00:44:17
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
Loading summary
Transcript75 lines
- [00:00]
Homes.com Narrator
Homes.com knows that when it comes to home shopping, it's never just about the house or condo. It's about the home. And what makes a home is more than just the house or property. It's the location and neighborhood. If you have kids, it's also schools, nearby, parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in depth information they need to find the right home. And when I say in depth, I'm talking deep. Each listing features comprehensive information about the neighborhood, complete with a video guide. They also have details about local schools with test scores, state rankings and student to teacher ratio. They even have an agent directory with the sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know, all in one place. Homes.com, we've done your homework.
- [00:49]
AT&T Business Wireless Spokesperson
Not every sale happens at the register. Before AT&T business Wireless, checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people will say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sale or two. Sometimes I do miss the bonding time.
- [01:13]
Jim Cramer
Sometimes AT&T business Wireless connecting changes everything. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I'll be my friends. Hey, I'm just trying to make a little bit of money here. My job is not just to entertain, but to put it in context. Call me 1-800-743-CBC. Tweet me. Im Kramer. On the surface, the stock market seems totally binary, dancing to the tune of a president who likes to take the average into his own hands and raise or lower that, depending upon the circumstance. When the market's up, outsiders say, hey, things must be good. When the market's down, they figure things are terrible. Now that may be true. If you own just nothing but index funds, that's fine. I own index funds. Today was another good day for index fund holders. Dow gaining 3 or 7 points. SB advancing 0.55%. Nasdaq climbing 0.91%. But what if you're doing what I advise and how to make money in any market? What if you actually are marrying your index funds like I do with individual stocks because you want to own some high quality companies in order to rack up outsized gains? Consider for me, I've got my index funds and then I've got my child trust. Now most of you had a chance to own long term winners like Apple or Amazon or video. If you have been even part time watchers of this 20 year old show that's been deeply committed to owning these stocks, we created FAANG, Facebook, Amazon, Netflix and Google 13 years ago to get you to buy those stocks. We added Apple to the mix not that long after because we wanted you to own those stocks. And it's reasonable to believe that you would have bought some of these household names. Even as many professionals advise you to steer clear of stock picking because they think you're too dumb. I disagree with that. As long as you're disciplined and do the homework, I'm confident you have the ability to trounce the S&P 500 with your individual stock portfolio. Just true. What happens though when the great ones, the ones that have worked out so well, what happens when they start running out of gas, whatever, running on fumes? What happens when they lose their leadership qualities and get confined to the dustbin of stock history first, as I said today and what my wife says was kind of a somber investing club meeting, I didn't mean that I don't believe that any of the mega cap tech stocks are truly finished. Including the Magnificent Seven, but also semi duct Colossus that is Broadcom, which actually barely. I don't talk about this much on Mad Money, but I think I should. I'm always looking to see if a company is getting its due for how much it earns. Its due is also considered to be the multiple or more clearly the price journeys multiple. If a company's liked in the marketplace, the stock will reflect that by having a higher price during these multiple than stocks that are disliked. But if company goes out of stock, if people stop believing it, then the market places a lower price during small port of stock. Think of it as a shorthand way to look at how a company's faring and it's mystifying to many say I want to bust that. Let's explain what's going on with the weakness so you understand what's happening with these iconic stocks that everyone used to talk about all the time. It should be obvious right now that the Magnificent Seven and their buddies bereft of friends in this market. Take better people were paying 30 times earnings high okay for the stock as recently as a year ago. Now they're paying just 22 times earnings. Whoa. That's a sign the market's gotten skeptical. Mark Zuckerberg and the company's growth rate, which is the most important quality to factor in when you're deciding what to pay for stock. It's a sign that Metta has lost its way there. I said it matters. Lost its way jump today. But met us met as revaluation, let's call it that is severe. But the price to earnings ratios of the Mag 7 have been shrinking pretty much across the board, causing lots of people to worry that the boom is off the rose and they have to make adjustments. I would contend that that's not true. I know that something else could really be at work here and I figured it out. The seven are known for their consistent high earnings power. Right now, as I said earlier this week, you have real concerns about the earnings power because there's this private company, OpenAI that's spending fortunes and that's doing it to take share and hurt all these companies at the same time. OpenAI does business with a bunch of companies and people are now questioning whether it'll be able to pay its bills. I think it's open. Open is like the open sore. It can really hurt a lot of things. I call it the Achilles heel. But there's another force that I'm not talking about this. You got to focus on people. This is something I haven't talked about to you. It's a huge part of the story. There's a new group of tech stocks in town and they are sucking up money from the rest of the sector from the seven. And these are pro se boring companies. The storage place. I have been talking about the storage place as a warning sign because they've rallied so far so fast. But there are tons of investors who love to chase hot stocks. And if they want to buy a SanDisk or a Seagate or a Western Dish or Micron, wow. The best place to store. They got to sell something. They don't have the money sitting around. They got to sell. Some people buy them and you know what they're selling? They're selling the seven. Consider Micron, very good semiconductor company. You know, we talk about them all the time. Make storage components. Stocks up 39% since the beginning of January. Seagate 26%. Crazy SanDisk is up 112. Crazy SanDisk and Western Digi's run up 41%. These companies underinvested for years because there was really no need for massive storage. This is horrible. We, we didn't have the data. We didn't mind the data. We didn't store the data. So they were absolutely caught flat footed by the rise of artificial intelligence. They didn't see it coming. The companies that should have been calling up to expand their production. They should have been calling Applied Materials, Lamb Research, kla. They didn't get to call either. They were woefully behind. Now we're in this bizarre never before seen moment where the storage companies just keep raising price over and over and over again and there's no resistance because these devices are like gasoline in a car. If oil were scarce and gas prices were high, you wouldn' say I'm not going to use it. You'd have to pay at any price. Why does this matter? Billions of dollars in this country being allocated to individual stocks every single day. There are many different styles of money mad someone value. Others want solid growth. Still others want companies that can scale have tremendous franchise value. But the most important style in this country though is momentum. These managers want to buy stocks that have accelerating growth and they want to sell stocks that seem to have slowing growth and are incredibly squeezed in margin. What you're seeing right now is the great transference. For the first time since the creation of Magnificent Seven back in March of 2023, these stocks have become donors to the market capitalization of these storage companies. To watch the levitation of a Micron or Sanders. Every single morning before the market opens is about what's happening, the transference. When I was on the trading desk I used to say these stocks are galloping to where they have to go. And it's certainly not right here. It's higher even up here. Micron is not expensive on a price series basis. But we don't know how long the memory shortage will last. I think last some time. So it could be worth buying even up here, you know if it's down for a day. And that desire, that desire to catch the next hottest stock is driving the money out of the Mag 7 into the memory red hots. Something that intel took itself out of the running today after announcing a quarter that was less than expected. That's wrong. You have to look out. The demand there is insane. I think we haven't heard the last of this stock which is up 40% this year. I think CEO Lip Bhutan is a lot of sleeve until we are very hot stock. If you give up on it, I think you're making a big mistake. It's got the MO look. It could be worse if you own a Salesforce service. Adobe Workday Atlassian Simple Team. These are enterprise software companies you are watching extreme price to earnings, multiple shrinkage as nervous holders think that the general platforms will make these software alphabets obsolete like them in seven. No, enterprise software companies actually missed its estimates. This is all in the come all psychological. The money's pouring out of enterprise software. Head right to storage, the weakest in storage. The weakest weakness in software is happening because the market makes its judgment well ahead of when things actually change. I've come not to trust the software companies myself. I do believe that outfits like Anthropic will allow you to create rival products for a fraction of the cost. I've seen it with my own eyes. No, I'm not going to ban the seven. I own a lot of them from my travel trust. I do recognize that right now the donors. But the bottom line, I think that the money will ultimately flow back to most of the seven, not just Alphabet, which is the only one that's strong because these companies just have too many levers, too much money. They're run by people who are too smart to bet against. I'm sticking with the seven. I think the storage plays are going higher and when they finally peak, you will be handsomely rewarded if you stay with the seven. If history matters, the commodity disk drive players and commodity semiconductor companies will not stay up by year end. Rick in Oklahoma. Rick.
- [10:30]
Caller
Jim, thanks. What's your opinion now of Palantir Technology there?
- [10:34]
Jim Cramer
I Palantir, I mean I like Palantir. I'm watching of course the unbelievable work that our team is doing over in Davos and over and over and over again. What do you hear? Well, Palantir is great. Palantir is great. Palantir is great. I would not leave Palantir. I know it's momentum, it's not going away. But it's the same seven that I like and the disk drive, the storage, the Seagate, the sand is the micron. It's their turn, it's their time. They got all the money coming in. But don't overstay your darn welcome. I think money will eventually flow back to the 7 because these companies just have too much going for and I wouldn't bet against them for too long. MAN Tonight shares a parking gamble pop today after reporting earnings. I'm running through the numbers to see if there's more upside in score for this household name three and hold back following earnings breaking down. What to make of the turnaround story And I think you should buy it. That's a little preview. And the rise in prediction markets has triggered a sell off in shares of Sportradar. I'm going to sit down with the CEO to see about what all the concerns about. I need you to stay with the seven and stay with Kramer.
- [11:44]
Mad Money Announcer
Don't miss a second of Mad Money. Follow Imkramer on X. Have a question? Tweet Kramer MadMentioned. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
- [12:06]
Comcast Business Narrator
Comcast business helps retailers become seamlessly restocking, frictionless paying favorite shopping destinations. It's how nationwide restaurants become touchscreen ordering quick serving eateries and how hospitals become the patient scanning data, managing healthcare facilities that we all depend on. With leading networking and connectivity, advanced cybersecurity and expert partnership, Comcast Business is powering the engine of modern business powering possibilities.
- [12:34]
Jim Cramer
Restrictions apply hey Fidelity, what's it cost.
- [12:37]
AT&T Business Wireless Spokesperson
To invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs.
- [12:46]
Jim Cramer
Hmm, that's music to my ears.
- [12:49]
AT&T Business Wireless Spokesperson
I can only talk.
- [12:52]
Caller
Investing involves risk, including risk of loss. Zero Account fees apply to retail brokerage accounts only Sell order assessment fee not included. A limited number of ETFs are subject to a transaction based service fee of $100. See full list@fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE SIPC not every sale.
- [13:06]
AT&T Business Wireless Spokesperson
Happens at the register before AT&T business Wireless checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people will say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sail or two. Sometimes I do miss the bonding time.
- [13:29]
Jim Cramer
Sometimes AT&T business Wireless connecting changes everything. This morning, Procter and Gamble reported a seemingly not so hot quarter. Yet the stock only rallied 3% today. And now we ask what the heck is going on. Okay, to understand what happened here, you need to know the setup. This is a stock that has been doing, let's say poorly over the past year. Procter peaked at $180 and change near the end of 2024, then returned to that high last March before sliding 24%, finding a floor at $137 and change a couple weeks ago. This thing's been hammered by worries about the state of the consumer, cost pressures, especially from rising tariffs and huge tariffs for it and a general aversion to safety stocks while the market was really ripping for most of the year. Historically, consumer packaged goods companies CPGs are what money managers buy when they're worried about a recession, not when the economy's doing just fine. And the economy is doing just fine. Procter also gave the Bears plenty of ammunition when they reported in July where they gave guidance for the fiscal 2026 year which ends in June of this year. For the first time that outlook had a very wide range suggesting management was uncertain about where the business was heading. That's what happens. You have wide range. They don't. They don't really have seem to control their destiny. The last time they reported in October, they beat the numbers but didn't raise their forecast signaling that the next quarter, the one they just reported might struggle. Got to raise the forecast. They want your stock to go higher. Then an industry conference on December 2nd Proctor CFO signaled that the quarter had indeed gotten off on a weak start in October November primarily because of softness United States that caused still one more leg down for the stock. Two different analysts and cut numbers after meeting with management. Which tells you that management wasn't exactly overflowing with optimism. That's the backdrop. Low expectations going to the print. And it's one reason why over the past few months we, meaning the charitable trust has been buying Procter and Gamble right into the weakness. The stock had fallen so much in 2025 that we started building the position in November 146exchange because I felt like many of the problems here would be temporary, especially us weak. That was definitely related to the government shutdown. We even bought a little more three weeks ago at $141 and change. We were buying consistently at lower prices. Now, after some continued weakness in the first few trading sessions of this year, the stock did start to heat up a couple weeks ago. All told, proximal gamble rallied from 137 and change on January 7 to 146 as of last night's close. Lots of money. Managers seem to be making the same bet that my travel trust had that P and G can rebound after its lost year no matter what they reported. That was the setup heading into this morning's earnings report. Even though the stock had bounced off its lows, the expectations were still pretty subdued. Which is how you get today's enthusiastic rally after what looked like a not great quarter. And make no mistake, Proctors numbers, they were fairly weak. Revenue came in a little late. Organic sales were flat when year over year when Wall street was expecting.5% a nice uptick. While the beauty and hair care division did well. Grooming was flat. Fabric and home care not great. Meanwhile baby feminine and family care divisions, organic sales dropped 4%. Overall Proctor had a 1% decline in volumes which was offset by a 1% boost from currency fluctuations and 1% benefit from pricing. I did not like these numbers. Now despite the top line disappointments, Proctor did do a bit better on the margin front. Thanks to strong cost controls. Company had a currency neutral core gross margin of 52.1%. That's slightly beating expectations on the earnings per share front. Thanks to a part to an aggressive buyback including $2.3 billion in the reported quarter, Proctor managed to deliver 2 cent earnings beat off a $6 basis. That's why it looks so good. So let's put it all together. Management signaled last month that we were not going to get great numbers from Procter. But as management also said would be the case in December, Procter reiterated its full year forecast for 2026 which was positive. It's not lost to me at the very same guidance that was disappointing. July is not one of the best aspects of the quarter that these guys reported this morning. But given the fact that the stock's much lower than it was in June, that's actually not too surprising. So how did Wall street react when the Numbers came out 7 7am Proctors shares immediately took a header. It dropped 3 points 3%. I mean instantly like came one Becky, quick read it and boom boom. They were still down slightly when the conference call started at 8:30am but then quickly it started climbing higher during the call by the open the stock was up $2. And then get this, it rallied some more ending the day up almost $4 or nearly 3%. After today this stock's at the highest level since late November. It is. Katie, bar the door. Time to buy Proctor. What exactly management say on the conference call to turn things around a lot? First management explained that a number of the weaker looking year over year numbers were actually influenced by what happened in the year ago quarter. Specifically in the US market. In the year ago quarter US sales were elevated thanks to what we call pantry loading ahead of hurricanes and port strikes. To put a finer point on this, CFO Andre Scholten, who's terrific, I do a lot about his work in how good it is Proctor in my book quote the balance of the company grew, organic sales nearly 3% with almost all regions outside the US growing or accelerating in the quarter, end quote. In other words, Procter was up against some very tough comparisons at the time. Maybe a little bit obscure what really happened here. Plus management repeatedly said that this was anticipated to be the softest quarter of their fiscal 2026 and that they expect strong growth in the back half of the fiscal year, which means the first half of 2026. And there were some plenty legitimately good news here. Seven of the 10 product categories grew or held organic sales for the quarter. Several international markets were called out as particularly strong. France, Spain, Italy, Europe, Mexico, Brazil, Latin. Wow. Where organic sales growth in Brazil up 8% or 8% and even China where organic sales were up 3% overall, management had a lot of positive things to say about China, by the way, which is their second largest market for almost 7% of sales. And it has hurt them over time. Finally, and I think most importantly, I liked this new Proctor management, including the new CEO Shylus Juricar. And I got to tell you, I was blown away by some of the things that he said about what happened in this very quarter and his full investment in the business. This is not new. Procter and Gamble has said before that they plan to make investments in the business, take out structural costs, bolster their iconic brands. They're investing even when the market's not great and they're doing so well internationally. Look, it really helps that I think Parker's pull away from its competitors while putting the company in position to take market share so they can do even better when the industry bounces back. I think it's terrific. The P and G, a huge international company based in Cincinnati, chose Jury Car and I think the fact that he's not American could help him in a lot of key, relatively undeveloped markets. Look, it's nothing against Cincinnati, but it's okay to have someone who's a person of the world who can really do well in all these markets that I think Proctor is not doing well enough. So let me give you the bottom line here. Even though Procter's quarter was not so hot, this was a stock that most people on Wall street had given up on. So even mediocre results were enough to send the stock flying today. And look, when a stock rallies on a seemingly disappointing quarter, it's a textbook tell that it's got a lot more room to run. I am glad we bought this one ahead of for the charitable trust. I'm going to talk more about how I knew to buy it. I just wish we'd gotten even more for pullback so you can add this one is going higher. Mad money's back after the break.
- [21:24]
Mad Money Announcer
Coming up, after years of muddling through, 3M is looking up. Kramer's making his call on whether now is the perfect opportunity to move into the industrial giant next. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com Market Update podcast or find Schwab Market Update wherever you get your podcasts These days.
- [22:07]
Comcast Business Narrator
It seems like AI agents are just about everywhere you turn, every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI did you know 39%.
- [22:39]
Greenlight Infinity Narrator
Of teen drivers admit to texting while driving? Even scarier, those who text are more likely likely to speed and run red lights. Shockingly, 94% know it's dangerous, but do it anyway. As a parent, you can't always be in the car, but you can stay connected to their safety with Greenlight Infinity's driving reports. Monitor their driving habits, see if they're using their phone, speeding and more. These reports provide real data for meaningful conversations about safety. Plus, with weekly updates, you can track their progress over time. Help keep your teens safe. Sign up for Greenlight Infinity@Greenlight.com podcast.
- [23:16]
Jim Cramer
Let's talk about the nation turnaround at 3M Eight years ago, this iconic industrial stock Pete it was all downhill from there until it finally found its footing in late 2023. Now look, I used to be a huge fan of this, but at some point I gave up on this iconic American company that makes office supplies, household items, industrial adhesives, safety equipment, among many other products because it had become the house of Pain. Now some of that had to do with Forever Chemicals lawsuits. Remember those? But most of the company just couldn't seem to get its act together. Bad execution. It's been about two years since 3M bottomed and the stocks more than doubled off its lows. Though, this comeback story has been in the works for a long time. In April 2024, 3M spun off its slower growing health care business as Solventum. A couple months later they brought in Bill Brown, hard charging Fellow formerly of L3Harris Technologies as the new CEO. I have no beef with his predecessor. I think he was simply dealt a terrible hand. But there's no denying that Brown has done a Terrific job since he took over. At the same time, 3M announced a major settlement for those Forever Chemicals, committing to pay 12.5 billion over 13 years to resolve the claims from an American water utility. That's not that bad when you think about it. When you the present value of that stream. Now that's a lot of money, I know. But it capped the potential downside for the litigation. At this point, the company doesn't even make Forever Chemicals anymore. You never know for sure with these matters. But I think the legal risk is very much contained by now. So a couple of Years ago, when 3M spun off this eventum and brought in Bill Brown as CEO, they took some very big steps to put the litigation wheels behind them. But what's really gotten the stock going again these past couple of years is good old fashioned. Yes, execution that has just been so good at being able to deliver the numbers. 3M organic growth, which are going negative in 2023, turned positive again in 2024, coming in at 1.2% and then it rose to 2.1% last year. 3M's adjusted operating margin used to be solidly in the mid-20s a decade ago, then fell around 20% from 212021 to 2023. But that too is the recovering over the past two years may get back to 23% last year. Their earnings per share it bottomed at $7.30 in 2024, then rose 10% to $8.06 last year. Now, ever since Bill Brown was named CEO a little less than two years ago, the stock has more than doubled. And while I said some good things about 3M in April 2024, look, and I've been generally positive about it when asked the light round, I got to admit that I have never really stuck my neck out for 3M. That was wrong. I've mostly been watching this incredible move from the sideline, just itching for a better chance to buy my stock. And that's why tonight I'm talking about it. Because when the company reported on Tuesday morning, I think the market got it wrong. First of all, the stock was just hammered down over 4% this week, even after a nice gain today and down 8% from its December highs. Opportunity. A week ago this was $171 stock and now it's at $160 and change. I like that. Why? Well, for starters, I think Wall street totally overreacted to that latest quarter. 3M's organic revenue growth came in at 2.2%, a little worse than expected, but still Showing some continued progress. Their sales were in line, their operating margin was a little light. Yet they still delivered a $0.03 earnings beat. Off a $83 basis, that's 9% earnings growth. I'll take it. So the fourth quarter results were fine. How about the guidance? Another thing people were worried about. I saw a bunch of headlines calling the forecast disappointing. But wait a second. For the full year, 3M guided for 3% organic sales growth and 4% total sales growth. Both nicely higher than expected. Their earnings and operating cash flow forecast were in line. Only their operating margin guidance came in a little light. They're talking about 24.1 to 24.2. Okay. Wall street was looking for 24.4. Overall. I think you call it a mixed bag, but. But you know what? I think that's too negative in itself. A little less than a year ago, 3M held an investor day where they rolled out some medium term financial targets for 2025 through 2027. And when management announced its full year forecast for 2026 this week, the numbers show the 3M is mostly ahead of schedule on its way to those medium term targets. Nothing wrong with that. So why then did the stock get obliterated? Okay, some of it's because 3M is calling for 6 to 7% earnings growth this year when some investors were hoping for something closer to 10%. That wasn't in the actual sell side earnings estimates. But 3M did say they were expecting high single digit earnings growth by 2027. My view. Look, I don't mind a conservative forecast. That can be beaten. And I do think it will be beaten because 3M is now quietly beaten the earnings estimates for 12 straight quarters, including all six quarters where Brown has been leading the company. So it wouldn't surprise me if they can put up 9% earnings growth this year. When all is said and done. A year ago, 3M guided for earnings of 760 to 790 per share in 2025. And they ended up delivering $8.06 per share. As for the disappointing for operating margin, let's dig into this. It only came to light in a little light. This is the forecast we're talking about and that comes down to higher investments in the business costs from shutting down the Forever Chemicals and of course tariffs which they can't control. Come on. I don't mind investments or the hit from Forever Chemicals. And we know the tariffs are beyond 3M's control. Finally, there's been a lot of criticism of the quarter center on 3M consumer business which did have a genuine shortfall, the only one. But the consumer business is the smallest part of the pie here, accounting for just 20% of 3M sales last year. So I'm not sure why everyone's laser focused on it. The strength in 3M safety, electronics and industrial end markets was more than enough to offset the consumer weakness, along with some softness in roofing and autos. And by the way, this is what really bothered me about this whole thing. I've read the whole conference call twice. If you listen to what management said about the consumer unit, you would feel a lot better than what the headlines indicated. On the conference call. Brown explained that the shortfall here was driven by weaker consumer sentiment, sluggish retail traffic in the U.S. okay, we get that. But how about this? He also said that after a tougher start than quarter, the consumer business had a very low, very good December. And though it's early January is looking okay. Overall, management expects 3 in consumer business to return to growth this year. Why sell on that? Put it all together. I see a company that remains very much on track. I know this is a contrary view from the street. The turnaround is real. People feel it's not anymore. Best of all, Brown Talked about how 3M has returned to a culture of innovation after years of playing defense. Last year this used to be a product introduction company. Get this. Last year 3M launched 284 new products. That's a 68% increase from 2024. This year they're expected to launch 350 new products. New lifeblood sales from products launched in the last five years were up 23% in 2025. And as Three exited the fourth quarter, sales for new products were up 44%. That reminds me of 3mm of old people are selling it. Come on. Here's the bottom line. 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. First time I've seen 3M looks very cheap to me. Selling for just under 19 times the midpoint of the full year earnings forecast. A forecast I expect them to be. You have my blessing to buy it right here, right now, Tomorrow morning I want to go to Jim in Florida.
- [30:38]
Caller
Jim, give me chill A big sunny, warm Naples, Florida. Booyah to you.
- [30:42]
Jim Cramer
Well, making fun of me. I'm staying at hotel down the block because it might snow on Tuesday. What's happening?
- [30:48]
Caller
I'm calling about a stock that I bought years ago.
- [30:51]
Jim Cramer
2011.
- [30:52]
Caller
They merged with another.
- [30:56]
Jim Cramer
I waited.
- [30:57]
Caller
I Waited to buy it back. And now Warren Buffett is getting rid of his 28% share in the company. What's your opinion of Kraft Heinz?
- [31:04]
Jim Cramer
Well, okay, so we know that it's not Warren. It's the new fellow that took it over. And he doesn't look at him. He does want to have the position on his sheets. I do like Steve. Steve Kalane. He's the new CEO. He came from Kellogg. But Ben Stutto and I kicked this one around and we saw we just couldn't get behind it. There's not enough good happening in the food business. I'm a seller, not a buyer. All right, let's go to Garrett, New York. Garrett.
- [31:29]
Caller
Hey, Jim. I own almost 300 shares of Target. What do you think?
- [31:34]
Jim Cramer
I think that you got to hold on to Target. Got a new CEO, they've got. Target seems to find itself in all sorts of trouble all the time. But for the first time in a long time, this stock is bouncing off its low with the 4% yield. I am going to bless you. Owning Target. Put someone here and you have 300. Maybe buy it, maybe even buy another hundred if the Stock gets to 100. Let's have the new CEO on. I really want to speak to him because I've been a big Target fan for a very long time. All right. I mean, the stores. Look, I think you are getting a chance that I don't ever pound the table. I rarely pound the table like this to buy the stock of 3M here. The turnaround is real. The stock looks very cheap to me and I've missed it for a long time. And now I'm finally getting in much more mid money ahead, including my sit down with sportradar. This picks and shovels play and the sports betting space fallen out of favor in recent months. I'm getting the story straight from the company's top brass then. I might not have a PhD in psychology, but I do know how to how big of a role psychology plays when it comes to earnings season. And tonight I'll reveal how you can separate facts from feelings to stay ahead of the pack. And of course, all your calls, rapid fire in tonight's edition of the Light lightning round. So stay with Kramer. What the heck happened to the stock of sportradar? It's a key partner for the sports betting industry that we like very much. These guys provide match data, odds and advertising tools. They're basically a picks and shovels play on sports betting. Thanks to their data rights partnership with the NBA mob and NHL as well as many International sports. With online gambling taking the country by storm. You think that business would be great, right? But Sport Radar stock is now down more than 40% from its high last August. Now some of that might be due to the prediction market moving into sports betting and taking share. I don't know, some. Maybe they disappointed the last time they reported. We got to find out what's going on here. Could this be a terrific buying opportunity as we head into the Winter Olympics where there's going to be a lot of betting, World cup right around the corner quarter. Let's check in with Carson Crowley's the founder CEO of Sport Radio. Find out. Mr. Carl, welcome back to Make Money.
- [33:43]
Carson Crowley (CEO of Sportradar)
Hi Jim. Thanks for having me back. Well, thank you to be in the show.
- [33:47]
Jim Cramer
Thank you. I'm glad you're here. The stock has taken a hit, but I don't really necessarily see what has caused that. I know that some people feel there's been a slowdown in gambling, but I'm not sure about that either. I know it's good. Seems like the stocks have gotten out of favor, not the company.
- [34:06]
Carson Crowley (CEO of Sportradar)
Well, Jim, you know, I'm in the quiet period, but what I can tell you is we feel pretty strong about the business and what we see is investors don't like uncertainty. There is an uncertainty with prediction markets, as you know. And for us it's a fantastic upside opportunity. More time which we can address. California, Texas, Florida, addressable for betting. And they all need our data and they all need our algorithms. So this is something which we see very, very positive. And I think on the mid to long term this will shake out and we will focus on deliver like we did it all the time.
- [34:44]
Jim Cramer
All right, so let's talk about California, Florida and Texas. These are states that have not voted to legalize gambling. But when it comes to the prediction markets, they're not illegal. So explain what you can do with the prediction markets or maybe just with, with real time data. I don't know what you guys have been able to accomplish, but it looks like you can just bet on games with, with prediction markets and that you would be able to help on that.
- [35:10]
Carson Crowley (CEO of Sportradar)
There are two segments. One is the pure data, the content which we have together with our partners and you mentioned before the picks and shuffles which I like very much. So we're sitting on this. We have the contracts and we are the partner of three of the big four legs. So that is one piece. The other piece is the market makers. The market makers, as you know, they need that detailed information. They need the tendencies, they need the risk profiles and all those things. So that's something. We have the perfect products for this. The only thing Jim, which stops us at the moment is we are waiting for our partners from the sports side. And I'm concerned about sport. I'm concerned about protect the rail guards here and we going to need to protect the integrity of the match. That's the, that's the first thing which we need to do. No sports betting with all the protection on this. So the leagues are negotiating this the next have their AGO agreements and I'm totally confident that in the next couple of weeks you see that they are closing here some deals in that moment when we have the rail guards, we deliver our products in there. So for us it's a total upside opportunity bigger than you mentioned. California, Texas and Florida. I think it's more than 50% of the US GDPR which comes now. All to play so much earlier than we thought on one or the other way. But it's for us a fantastic opportunity.
- [36:36]
Jim Cramer
Well, to me what I care about are events and events to gamble on because it happens to be much more accepted obviously in the country. And I think that some of what caused your stock to suffer is people feel it's kind of gotten out of style. I think that it. We're going to have a very high profile event in the Winter Olympics and a lot of people are going to use this time for the first time to be able to make bets on the Winter Olympics. What does it look like? What is the chatter about it?
- [37:02]
Carson Crowley (CEO of Sportradar)
Last, last time Winter Olympics we saw most of the bats coming on. Alpine skiing downhill race is the most prominent one. I bet with you Jim, this time it will be hockey because NHL is since 11 years the first time they are all the stars are there. I'm super excited about this. It's around the corner. I will be there. And this is something where I think we see new landmarks here for a betting perspective. And mainly hockey is something where we are pretty optimistic.
- [37:32]
Jim Cramer
Okay, how about World Cup?
- [37:36]
Carson Crowley (CEO of Sportradar)
World cup is the biggest betting event in the world. Last World cup was 50 billion. Now we have nearly doubled the teams. We have 48 teams and 12 groups. We have more than 100 matches in the World cup. That is unprecedented. So that will, that will have an enormous volume. And if I look now to technology and Compare it to four years ago, we have 200 life markets, we have 200 pre match markets. We have two player props, we have the micro markets. Additionally the volume will easily exceed the last benchmarks and the fun will be Great. And the special thing here is if you look now to the Americas, South America is not only there with the giants, with Mexico, with Brazil, with Argentina, they have Ecuador there, they have Colombia there, Haiti is going there. So the whole world is looking on this. But the development opportunity for soccer in the US Is enormous with this pull. And we see a lot of countries from the continent playing there. So I'm very excited and I will watch a couple of those matches and I hope you too.
- [38:47]
Jim Cramer
Now, the last thing I care about is do you think that Wall street will understand that this really is a terrific opportunity? I read the research and I think that people are a little defensive. Now. Look, they can be a little defensive, frankly, because of the gambling scandals. But I know that would really help things is if people just got behind it and said this stock has gotten too cheap. I don't know. I know you're in the quiet period, but is it your sense that. That people understand that these two events could be huge for you?
- [39:15]
Carson Crowley (CEO of Sportradar)
Yeah, that's what. What I think they will understand when we show the numbers. So looking purely from an event perspective, it's a unique constellation. Olympics and the World cup in one year. Of course, that's driving revenue for our clients. And when our clients are doing well, we are doing.
- [39:33]
Jim Cramer
I think that's.
- [39:34]
Carson Crowley (CEO of Sportradar)
I'm totally confident.
- [39:35]
Jim Cramer
All right, that's. I'm going to leave it because I don't think the stock belongs where it is, but we'll have to. To see. And I want to thank Carson Curls, the CEO of Sport Radar Group. Good to see you, sir.
- [39:47]
Carson Crowley (CEO of Sportradar)
Thank you.
- [39:47]
Jim Cramer
May have Bunny's back after the break. It's time. And then the lighting round is over. Are you ready? Ski dad time. The lightroom. Chris Munch up with Ron in Florida. Ron.
- [40:13]
Caller
Jim, I'd like to get your.
- [40:14]
Jim Cramer
Opinion on Steel Dynamics. I've owned it for a couple years.
- [40:17]
Caller
It's been a great performer.
- [40:18]
Jim Cramer
It's an excellent company. I like Steel Dynamics and I like Nucor. Those are the two. Wow, what a terrific buy. This is America doing well and the tariffs working. Let's go to Ray in Virginia. Ray.
- [40:31]
Homes.com Narrator
Jim.
- [40:32]
Caller
In November, I bought a cashmere sweater. Hey, it looks like it's on an upswing. What's your take on rprx?
- [40:42]
Jim Cramer
Royalty just keeps going higher. I love the step function. I love that whole business where they help fund bio and they get the returns. It's a terrific company. I remember when GA bought it public and I liked it then. I liked it now. Let's go to Sam in Pennsylvania. Sam.
- [40:56]
Caller
Jim, I got an interesting one for you. I've been looking at the. The optical electronics market, specifically looking at connectivity solutions given the.
- [41:03]
Jim Cramer
The AI build out.
- [41:03]
Caller
So I came across credo and that led me to find its competitor, Coherent. So I was curious what you thought about Coherent given it its recent run up.
- [41:11]
Jim Cramer
Coherent. So good. Now the stock has been just a banshee, but I gotta tell you, the technology is really good. It's a winner. I would use any dip to buy more stock. Tom and Iowa Town. Hey, Jim.
- [41:24]
Caller
Love your show and all the work that you do. Big shout out to my two young investors, Kendra and Claire. Jim, I want to get your thoughts on New Era Energy.
- [41:35]
Jim Cramer
New Era Energy. I don't know, I gotta tell you, something crazy is going on there. Let me do some work on it and come back to you. I don't want to cuff it. I don't want to cuff it. Let's go to Bri in California. Bri. Hey, Jim. So I bought shares of Lucid group back in 2021, and I am deep in the red. So with the company. Take the loss. Take the loss. Take the loss. I mean, look, rivian is at 16. If you like this new. If you like that, Rivian is better. I don't, but that's the one you want to be in. And by the way, can I just say, Mayor Brothers. Unbelievable. Gets no credit whatsoever. That seems wrong to me. Mike in Michigan. Mike.
- [42:15]
Caller
Hey, Mike.
- [42:17]
Jim Cramer
Hey, I'm. What's.
- [42:18]
Caller
I'm talking for you, man. I'm calling about.
- [42:21]
Jim Cramer
I got a stock.
- [42:22]
Caller
I was down 60%. Now I'm only down 5. I'm worried about California regulations. Ticker symbol SOC. Stable offshore.
- [42:31]
Jim Cramer
Not a great company. Not a great oil services. Not a great oil company. We're gonna have to stay away from that. We're gonna take a. We're gonna do a little kaching. Kaching. Get out of that, boy. Jim in New Jersey. Jim?
- [42:42]
Homes.com Narrator
Yeah.
- [42:43]
Jim Cramer
Hey, Jimbo.
- [42:44]
Caller
How you doing, my friend?
- [42:45]
Jim Cramer
I'm good, chief. I'm great. What's up with you?
- [42:47]
Caller
All right, looks like we're closing out the show together, so I gotta ask you a couple questions.
- [42:53]
Jim Cramer
Okay, Go ahead, go ahead.
- [42:55]
Caller
Maybe a little more than a year ago, you talked about an ipo, and of course it's an energy company. And this company's on the equivalent of Chenary now. Its infrastructure's expanded. You did warn about the lawsuits that they had, and it seems like they got through them and they did quite well. And they still abided by the contracts on Those companies. So I'm going along with this company because I think I'm going.
- [43:23]
Jim Cramer
Venture global. We do not like we did a really good piece about the other day. We just think that they just didn't deliver and we don't think they're going to deliver at all. And that, ladies and gentlemen, conclusion of the Lightning Round.
- [43:37]
Mad Money Announcer
The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer's taking three recent examples to show you how psychology can help you get into or get out of stocks at the right time to maximize your profits.
- [43:53]
Jim Cramer
Next, How did we know to buy the stock of Procter and Gamble for the charitable trust ahead of a weak and seemingly disappointing quarter? How do we know to pass on GE Aerospace before a terrific quarter and instead throw our lot with the long long time near to well. Boeing. How do we catch nearly 3% gain in pocket gain 1 session and half percent gain Boeing but dodging a nasty 7.4% loss in GE. Let me explain because I want to teach you how to make money during earnings season. So you start with a proposition. You're looking for a stock, a major stock that's down near the bottom of the range. Basically a fundamentally fabulous company that's fallen on hard times momentarily. You select it because you want to start with a good cost basis. Meaning you want to buy on the cheap. Why start ahead of the quarter that because of psychology. We picked the stock of Procter and Gamble for the Trust because it has a long history of innovation, improvement and execution. We knew as solid dividend one of the best dividends in the entire market. Serve as a trampoline. If the stock was low enough before the quarter's release. Procter been adamant that they were going to miss the numbers. It was very well telegraphed. The disappointment occurred beforehand the selling news behind it. So when we saw the numbers today, it didn't matter. Best of all, Proctor has a new CEO. This would be his inaugural quarter. So he didn't own the previous CEO's mistakes. Fresh start for the CEO Shy Lesh did jury car. Nothing wrong with Cincinnati save the Bengals. But this is an international company. It's where the growth is. It's about time that someone who was foreign born became the CEO of Proctor. What did we know about Boeing? Well, it hasn't reported yet. We bought it aggressively and all the way down endlessly because management told us that they couldn't shoot straight and the term was delayed but did add that the cash flow be higher than expected. We told investing club members to buy and buy and buy down 50, down 6, down 70. Because we knew that the cash flow was the key metric to watch here and the rest just noise. You needed to follow Boeing for 30 years. As I have to understand this. As my dad who served the Pacific reminded me. For his first year of the war, all he saw were zeros and death. But then he saw silver planes that was the Boeing B29 and knew the war was over. So you can't defeat Boeing. How about GE Aerospace? Best of the best. Self improvement here is extraordinary. CEO Larry Culp is one of a kind, the savior of the old GE, architect of the most successful breakup of all time. Two years ago the stock was in 62, came in hot 318 today, just a monster. So what happens? Procter's quarter was weak as expected, with Mrs. On several key lines. GE Aerospace, nothing but net. Just fantastic. Every line, including ones that have been a tad disappointing previously. Gross margin improvement remarkable. GE stock opens down a tad, then rallies at 310 before wilting and finishing down more than 7% to 95. Nothing wrong but an A student who gets more ace and a student gets more. That can get a praise and in fact is criticized. For those who want to see A plus Procter and Gamble. We see the headline stock plummets early morning from 146 to 142. That's exactly right. You want the traders out of it. The scared shareholder base disappear. And then the new CEO speaks, as we mentioned earlier, starts talking. He talks about the nation turn in China. He talks about the green shoots in Latin America, lots of international growth opportunities. He makes it clear that he's unhappy with the company's performance. And more important, he made it clear that such underperformance will not be tolerated. He hit the ground running. He says, quote, we are already seeing strong results in parts of the business, end quote. And then he mentioned some business lines that have started doing well. PNG closes at $149.93, up a whopping 7.7 points where it started. You had to buy this one for the quarter. You see, it's all psychological. People written off. Procter and Boeing, which made a new high today. They love ge got clobbered. When a stock gets too hated or too loved, it's often due for trajectory change. And this time the earnings provided the catalyst. Alex says, always bull markets. Some are prompts to find just for you right here, made money. I'm Jim Cramer and I will see you tomorrow.
- [48:03]
Mad Money Disclaimer Narrator
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 Kramer 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 Anderson 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 Martha listens to.
- [48:36]
Expedia Narrator
Her favorite band all the time. In the car, gym, even sleeping. So when they finally went on tour, Martha bundled her flight and hotel on Expedia to see them live. She saved so much she got a seat close enough to actually see and hear the them. Sort of you were made to scream from the front row. We were made to quietly save you more Expedia made to travel. Savings vary and subject to availability. Flight inclusive packages are at all protected.