Mad Money with Jim Cramer – January 28, 2025
Released on January 29, 2025
Episode Summary
In this engaging episode of Mad Money, Jim Cramer navigates listeners through the latest developments in the stock market, offering insightful analyses, strategic investment advice, and in-depth discussions with prominent CEOs. The episode covers significant market movements, the impact of technological advancements, and emerging opportunities across various sectors. Notably, Cramer conducts interviews with Leon Topal of Nucor, Marc Benioff of Salesforce, and Christian Klein of SAP, alongside his signature Lightning Round segment where he shares buy, sell, and hold opinions on diverse stocks.
1. Market Insights and Nvidia Analysis [01:03 – 08:55]
Jim Cramer kicks off the episode by addressing recent fluctuations in the tech sector, emphasizing the drawbacks of panic selling. He uses Nvidia's tumultuous experience as a case study, detailing how rumors surrounding DeepSeek—a Chinese AI model competitor—led to a substantial drop in Nvidia's stock. Cramer advises investors to maintain composure and highlights the resilience of well-positioned tech companies.
Notable Quote:
“Nobody ever made a dime panicking. No matter how many times I've said that...” ([01:10])
Cramer discusses the implications of DeepSeek's emergence, explaining:
“If you match yesterday's carnage in tech with today's bountiful harvest of winners, you know why I have to repeat myself.” ([03:15])
He underscores the importance of strategic patience, particularly in volatile markets:
“If you panicked and sold tech yesterday, you missed today's cornucopia of tech winners...” ([04:50])
2. Interview with Julie on Eli Lilly [08:55 – 10:35]
In this segment, Cramer welcomes Julie to discuss Eli Lilly's current market stance amidst evolving pharmaceutical landscapes. They explore Lilly's upcoming earnings report, recent Q3 performance, and the impact of GLP1 disruptors on the company's stock.
Notable Quote:
“I do believe in Lilly. We own it for the trust.” ([09:23])
Julie highlights the significance of Ozempic's new application for kidney failure, suggesting potential growth avenues despite recent stock challenges:
“With the earnings just around the corner and a noticeable Q3 miss, it seems like the street can't agree if this is a buy or a sell.” ([09:08])
3. Interview with Leon Topal, CEO of Nucor [13:10 – 21:45]
Jim Cramer sits down with Leon Topal to delve into Nucor's strategic initiatives and market performance. They discuss the ongoing challenges in the steel industry, particularly focusing on foreign competition and U.S. trade policies. Topal elaborates on Nucor's diversification into warehouse systems and infrastructure projects, highlighting the company's robust growth and commitment to shareholder returns.
Notable Quotes:
“We are going to return it to our shareholders...” ([18:11]) “Nucor sits at the epicenter of all of that, Jim, to not only build the infrastructure for it, but supply the parts, pieces and components into all of those streams.” ([16:20])
Topal discusses the impact of transshipment and trade agreements on domestic steel production:
“Canadian and Mexican imports account for almost 40% of the entire import picture in the US...” ([14:52])
4. Interview with Marc Benioff, CEO of Salesforce [23:41 – 31:57]
In a conversation with Marc Benioff, Cramer explores Salesforce's advancements in artificial intelligence and data integration. Benioff discusses the introduction of Agent Force, Salesforce's AI-driven platform that enhances customer relationship management by integrating digital workers with human agents. They examine the competitive landscape, particularly Microsoft's AI initiatives, and the strategic positioning of Salesforce in the evolving tech market.
Notable Quotes:
“Every great product needs a great branding campaign...” ([28:17]) “We are deploying humans and agents working together...” ([26:42])
Benioff emphasizes the importance of data over hardware in AI development:
“We are living where our support agents are working with agents, so digital workers are working together to solve customer needs...” ([29:17])
5. Interview with Christian Klein, CEO of SAP [32:19 – 39:38]
Cramer engages with Christian Klein to discuss SAP's impressive financial performance and its strategic integration of AI into business solutions. Klein outlines how SAP's AI strategies are enhancing operational efficiencies for major clients like General Motors, focusing on predictive demand, inventory optimization, and workforce management.
Notable Quotes:
“We are infusing AI into the businesses of our customers...” ([34:27]) “When we invented ERP 50 years ago it was a transactional system and today actually it's a business suite...” ([37:29])
Klein highlights SAP's agnostic approach to AI infrastructure, prioritizing data integration over hardware specifications:
“We are using the best large language model for the different use cases we have to want. But the value is the business data.” ([35:50])
6. Lightning Round [39:56 – 43:12]
Jim Cramer transitions to his interactive Lightning Round, where he responds to listener calls with quick investment opinions. He addresses a variety of stocks, including Viking Therapeutics, First Solar, and Waste Management, providing clear buy, sell, or hold recommendations based on current market trends and company performance.
Notable Quotes:
“I prefer Eli Lilly. I want to go to Terry in Florida.” ([40:34]) “I like Waste Management very much. I think it's an absolutely terrific stock.” ([43:12])
Cramer advises caution with certain healthcare stocks, advocating for waiting to see real bottoms before investing:
“It's a very expensive stock. I'm trying to sell a lot of GE Healthcare...” ([42:46])
7. Cruise Stocks Analysis [43:43 – 47:39]
Concluding the episode, Cramer turns his attention to the travel and leisure sector, specifically focusing on cruise lines like Royal Caribbean. He highlights the company's recent earnings surprise, revenue growth, and strategic expansions, positioning cruise stocks as undervalued with significant growth potential.
Notable Quotes:
“Cruises have become genuine secular growth plays and they may stay that way for a generation.” ([45:30]) “Royal Caribbean reminds us it travels a $2 trillion business. Cruises are considered an amazing value within that 2 trillion.” ([46:10])
Cramer underscores the resilience of cruise lines post-COVID, noting their disciplined capacity management and the increasing consumer preference for experiential travel:
“These companies have become incredibly disciplined about not adding too much capacity at once, which makes the industry much more resilient...” ([46:50])
Conclusion
Throughout the episode, Jim Cramer provides a comprehensive overview of the current market landscape, emphasizing the importance of strategic investment decisions and the potential of emerging technologies and sectors. By engaging with industry leaders and offering nuanced stock recommendations, Cramer equips listeners with the knowledge to navigate the complexities of Wall Street effectively.
Notable Quotes Recap
- “Nobody ever made a dime panicking. No matter how many times I've said that...” ([01:10])
- “We are going to return it to our shareholders...” ([18:11])
- “Every great product needs a great branding campaign...” ([28:17])
- “We are infusing AI into the businesses of our customers...” ([34:27])
- “I like Waste Management very much. I think it's an absolutely terrific stock.” ([43:12])
- “Cruises have become genuine secular growth plays and they may stay that way for a generation.” ([45:30])
Key Takeaways
- Tech Sector Resilience: Despite volatility, strategic patience in tech investments can yield substantial returns.
- Pharmaceutical Prospects: Companies like Eli Lilly exhibit strong fundamentals despite market uncertainties.
- Industrial Growth: Nucor's diversification and strategic initiatives position it for robust growth amidst global competition.
- AI Integration: Salesforce and SAP are at the forefront of integrating AI to enhance business efficiencies and customer relations.
- Investment Strategy: Cramer's Lightning Round emphasizes the importance of informed decision-making and identifying undervalued stocks.
- Travel and Leisure Opportunities: Cruise lines demonstrate significant growth potential, supported by disciplined management and evolving consumer preferences.
By synthesizing expert insights and current market trends, this episode of Mad Money serves as a valuable resource for investors aiming to make informed and strategic financial decisions.