Mad Money w/ Jim Cramer – Episode Summary (January 24, 2025)

Host: Jim Cramer
Podcast: CNBC’s Mad Money
Release Date: January 25, 2025
Episode: Mad Money w/ Jim Cramer 1/24/25

1. Market Overview

Jim Cramer opens the episode by addressing the volatile nature of the current stock market, emphasizing the complexity investors face with simultaneous earnings reports and political influences.

• Jim Cramer [00:00]: Introduces Venu, highlighting its significant assets and growth in the live music industry.

• Jim Cramer [01:22]: “My mission is simple. To make you money... Always a bull market somewhere. And I promise to help you find it.”

Cramer discusses the recent market dips:

• Dow: Dropped 141 points.
• S&P 500: Fell by 0.9%.
• Nasdaq: Lost 0.5%.

He emphasizes the importance of focusing on substantial stocks during these turbulent times.

2. Stock Highlights and Weekly Outlook

Cramer provides a detailed outlook on the upcoming week’s significant earnings reports and market movers.

• Fintech Company:

  • Jim Cramer [02:20]: “I've been championing this fintech company... expecting good numbers and shorts to be routed.”

• AT&T and Verizon:

  • Jim Cramer [02:50]: Predicts AT&T’s success despite Verizon’s performance.

• General Motors and Tesla:

  • Jim Cramer [04:15]: “One of the cheapest stocks in the S&P because the market only has eyes for one automaker, Tesla.”

• Starbucks:

  • Jim Cramer [05:10]: Optimistic about Starbucks’ future under Brian Niccol’s leadership.

• Federal Reserve Insights:

  • Jim Cramer [06:30]: Discusses the Federal Reserve’s potential rate cuts and their impact on the market.

• T-Mobile and ServiceNow:

  • Jim Cramer [07:45]: Recommends buying dips for T-Mobile and ServiceNow, anticipating post-earnings rallies.

• Microsoft and Metal Platforms:

  • Jim Cramer [09:00]: Expresses skepticism about Nebius Group but reaffirms confidence in Microsoft’s long-term prospects.

• Tesla:

  • Jim Cramer [10:10]: Endorses owning Tesla, predicting continued growth despite short-term volatility.

• Caterpillar and Apple:

  • Jim Cramer [11:40]: Advises patience with Caterpillar and steadfastness with Apple, despite disappointing forecasts.

• Chevron and Exxon:

  • Jim Cramer [13:50]: Cautions against owning oil giants like Chevron and Exxon due to political uncertainties and market volatility.

3. In-Depth Analysis: Intuitive Surgical (ISRG)

Cramer delves deeply into Intuitive Surgical’s recent performance and future prospects.

• Performance Overview:

  • Jim Cramer [15:40]: "Intuitive Surgical’s stock fell 4% despite a strong quarter."

• Earnings Report:

  • Revenue Growth: 25% year-over-year.
  • Share Price Impact: Stock up nearly 17% YTD despite the recent pullback.

• Management’s Guidance:

  • Gross Margin: Expected to decline to 67-68%, below consensus estimates.
  • Operating Expenses: Projected to grow by 10-15%.

• Cramer’s Insights:

  • Emphasizes that the decline in gross margins is due to strategic investments in new manufacturing facilities and product lines.
  • Jim Cramer [16:50]: "The cost side will be more than made up by the company's incredibly durable demand."

• Tariff Concerns:

  • Jim Cramer [17:30]: Notes potential risks from tariffs on Mexican-made instruments but remains optimistic about the company’s ability to manage these challenges.

• Valuation and Investment Strategy:

  • Jim Cramer [19:00]: Acknowledges high P/E ratio but advocates for buying the dip due to long-term growth prospects.

4. Caller Segment: Stock Recommendations and Insights

Cramer engages with callers, providing personalized stock advice and insights.

• Bristol Myers – Caller:

  • Jim Cramer [09:31]: “You bet you... Buy more. This is a radical new drug... Buy, sell whatever I like Bristol Myers.”

• Hershey – Caller:

  • Jim Cramer [10:32]: Advises against holding Hershey due to high P/E ratio and suggests alternatives like Mondelez.

• PayPal and Biden’s Influence – Caller:

  • Jim Cramer [11:22]: Supports investing in PayPal, anticipating significant growth and positive developments.

• Palantir – Phil:

  • Jim Cramer [31:00]: Describes Palantir as a "meme stock" with real revenues, recommends holding and buying on dips.

• Twilio – Caller:

  • Jim Cramer [33:24]: Endorses Twilio as a strong CRM tool, encourages holding and buying more if the stock pulls back.

• Others:

  • Jim Cramer [42:06]: Recommends Capital One over Visa for potential benefits.
  • Jim Cramer [43:14]: Advises against investing in Wendy’s due to unusually high yield indicating potential issues.
  • Jim Cramer [44:34]: Critiques Texas Instruments’ performance and recommends Micron as a superior alternative.

5. Investing Club Insights

Cramer provides a behind-the-scenes look at the CNBC Investing Club, sharing strategies and decision-making processes.

• Monthly Meeting Recap:

  • Jim Cramer [43:34]: Discusses strategic shifts like trimming positions in high-growth stocks like Nvidia and Best Buy to manage portfolio risk.

• Stock Selection Criteria:

  • Jim Cramer [43:50]: Focuses on companies with strong fundamentals, growth potential, and strategic positioning over mere market hype.

6. Lightning Round

A rapid-fire segment where Cramer quickly answers multiple callers’ questions, offering succinct stock tips and market opinions.

• Highlights:
  • Caterpillar (Capella) and Wendy’s: Cramer expresses cautious optimism towards Caterpillar and skepticism about Wendy’s high yield.
  • Twilio and Palantir: Reiterates strong support for Twilio and sees Palantir as a legitimate growth stock despite volatility.
  • Realty Income: Endorses Realty Income for its stable dividends.
  • REITs and Credit Card Companies: Discusses the impact of potential policy changes on companies like Capital One.

7. Concluding Remarks and Future Outlook

Cramer wraps up the episode by summarizing key takeaways and offering a glimpse into future topics.

• Jim Cramer [48:34]: Emphasizes the importance of patience and informed decision-making during volatile market periods.

• Upcoming Topics:

  • Analysis of AI players with Nvidia backing.
  • Behind-the-scenes strategies from the CNBC Investing Club.
  • Anticipation of future earnings reports and their potential market impact.

Notable Quotes with Timestamps

• On Market Strategy:

  • Jim Cramer [01:22]: “My mission is simple. To make you money... Always a bull market somewhere."

• On Intuitive Surgical:

  • Jim Cramer [15:40]: "I want you to think of it as kind of a razor, razor blade business model."
  • Jim Cramer [17:30]: "We'll deal with tariffs as they come."

• On Investing Philosophy:

  • Jim Cramer [07:00]: “Don't try to make decisions during this period. Just listen."

• On Stock Valuation:

  • Jim Cramer [19:00]: "The only problem with this stock is it's too expensive right now."

• On Financial Education:

  • Jim Cramer [42:29]: "It's about teaching... I like to make money. Everybody likes to make money."

• On Company Performance:

  • Jim Cramer [44:34]: "Texas Instruments doesn't seem to care if you don't like them."

Conclusion

In this episode, Jim Cramer navigates through a whirlwind of market movements, offering in-depth analyses of major companies, addressing investor concerns through caller interactions, and providing strategic insights from the CNBC Investing Club. His steadfast focus remains on empowering investors to make informed decisions amidst market volatility, emphasizing patience, strategic buying on dips, and a preference for companies with strong fundamentals and growth potential.