Mad Money w/ Jim Cramer – January 29, 2026 Episode Summary
Episode Overview
On this episode, Jim Cramer dives deep into the main drivers of the current stock market, especially as they relate to shortages versus gluts—a theme he argues is the "true north" for investors this earnings season. Cramer analyzes the performance of key sectors and companies, giving his trademark “buy/sell/hold” guidance, conducts engaging CEO interviews (ServiceNow, Levi Strauss, Teva Pharmaceuticals), and concludes with the rapid-fire “Lightning Round.” The show is lively, full of direct and colorful advice, insider-level business strategy talk, and actionable investing takeaways.
Key Discussion Points & Insights
1. Shortages vs. Gluts: The Driving Force in Markets (Starts at 01:27)
- Shortages Rule. Gluts Kill. Jim urges investors to always ask: “Is there a shortage or a glut of what the company sells?” If a shortage—buy. If a glut—run.
- “Shortages are the true north. Gluts are the kiss of death.” – Jim Cramer [01:32]
- Market Performance Recap: DOW up 12 points, S&P down slightly, NASDAQ up.
- Federal Reserve Recap: Not much news from Fed Chair Powell; focus remains on company fundamentals, not macro headlines.
Gold vs. Silver
- Gold: Major breakout due to chronic supply constraints; recommends staying long gold, especially miners operating in jurisdictions like Canada (e.g., Agnico Eagle).
- “They don’t call it precious for nothing. Plus, most of the gold is in places that are, let’s just say, not so great for doing business.” – Jim Cramer [02:47]
- Silver: Might be manipulated; apparent “artificial shortage.” Advises caution and “sell, sell, sell” due to possible price collapse.
Tech Shortages: Data Storage Boom
- Data Center Storage: Unprecedented shortage highlighted by Micron & Seagate. Long lead times (4+ years) to build memory foundries point to sustained pricing power and rising earnings.
- Stock Moves: Seagate +19%, Micron and Texas Instruments also surging. Expecting Western Digital & SanDisk to benefit.
- “It takes about four years to build a plant that can make memory devices. So I think the shortage lasts for some time.” – Jim Cramer [04:58]
- Insight: Stocks making components in short supply are the market’s best performers.
Power Generation Comeback
- Rise of data centers equals soaring electricity demand, reviving the prospects for companies like GE Vernova (spinoff from General Electric), now a global growth story.
- “Power generation became a tough business…now it’s one of the biggest growth stories in the world.” [06:04]
2. Earnings Season Highlights: The "Magnificent Seven" & More (Starts around 06:45)
- Microsoft: Beat earnings, but shares dropped due to high AI-related capital expenditures. Market not fully convinced.
- “Their capex budget…up 66% year-over-year. That’s not what the market wants.” [08:00]
- Meta (Facebook): Huge beat on earnings/revenue, huge spending on AI, but confident in continued operating income growth.
- Tesla: Production/delivery below expectations, but strong Q4 numbers and $1.4B in free cash flow sent stock higher. “A beast that wants to roar higher.”
- IBM: Now being called part of a “Magnificent Eight” after a strong report, strong software revenues, attractive valuation.
- LAM Research: Semicap equipment continues to surge.
Bottom Line:
- "The best performers in the entire stock market…are companies that you may never have heard of. They make things that are in short supply. Their stocks keep soaring. The rest of tech – mixed bag." – Jim Cramer [09:39]
3. Caller Q&A Highlights (From 09:42 and 10:20)
- Texas Pacific Land (TPL): Possible data center land play but too tied to oil and gas for Cramer’s taste: “Not my favorite. It's a spec.”
- Netflix: Cramer still bullish, likes the management, notes upside potential.
- DraftKings: Likes the company but sees growth constrained until major states legalize gambling.
- Shortage/Glut Reminder: “Sometimes it’s as simple as a company like Meta blowing away the numbers.” – Cramer [11:23]
4. Interview: Bill McDermott, CEO of ServiceNow (14:45–22:58)
Key Segments
- ServiceNow’s Growth: Fastest enterprise software co. to $1B, $5B, $10B, $15B+ (organic). Operating at “rule of 57” (revenue growth + free cash flow margin).
- “We have a once in a generation platform…winning.” – Bill McDermott [15:03]
- AI’s Impact on Business Model: Not cannibalized by AI; rather, integrates with leading models (OpenAI, Anthropic), adds value through workflow automation.
- “There’s a meaningful difference between giving enterprises access to an AI model and building that model into workflows where real decisions are made.” – Bill McDermott, quoting Dario at Anthropic [16:30]
- Seats & Consumption: Growing monthly active users +25% yoY. TAM up from $90B to $600B since 2019.
- Buyback: Announced $5B repurchase, $2B starts immediately as “accelerated repurchase.” McDermott notes his personal comp is all stock.
- Security Expansion: Acquisition of Armis for real-time, agentless security/data classification—a key growth area.
- Memorable Quote: “Cybercrime is forecast to cost the world $1 trillion a month. If that was an economy, it would be third only behind the U.S. and China.” – Bill McDermott [22:20]
5. Interview: Michelle Gass, CEO of Levi Strauss (24:56–32:27)
- Direct-to-Consumer Focus: DTC now half of Levi’s business; 15 quarters of comp growth in this channel. E-comm +22%. "We've rewired the company to operate as a best-in-class retailer."
- Brand Expansion: Transitioning Levi’s from just jeans to full denim lifestyle (tops, dresses, etc.). Strong women’s growth (now 38% of biz, with runway toward 50%).
- “It’s our responsibility to continue to drive results. …Head to toe denim lifestyle…That strategy is working and it's expanding our addressable market.” – Michelle Gass [29:15]
- Super Bowl Activation: Hosting at Levi’s Stadium, new national campaign; expects brand lift and ROI.
- APAC Growth: Underpenetrated in Asia, with strong momentum in markets like Japan and India.
6. Interview: Richard Francis, CEO of Teva Pharmaceuticals (32:53–39:54)
- From Generic Leader to Innovator: Teva’s moved from “me-too” generics to tackling hardest neurological diseases (schizophrenia, migraine, Huntington’s).
- “Neurology and CNS is a huge challenge, but it's a huge opportunity. …That’s where we have the biggest impact.” – Richard Francis [33:58]
- Tardive Dyskinesia (TD): Astedo far exceeding previous sales expectations. Massive untreated population; campaign to raise awareness.
- Migraine Franchise: Sales up 30%; reclaiming market share from bigger competitors.
- Pipeline Growth: Launching four products in five years. Long-acting olanzapine for schizophrenia seen as transformative.
- 2026 as Breakout Year: Expecting 7 milestones in innovative pipeline (neurology, immunology, oncology).
- Not Frightened of Failure: “We play to win and we'll deal with failure when it happens. But we don't let that intimidate us not to do things.” – Francis [39:08]
7. Lightning Round (40:12–43:42)
- Robinhood: A buy, “captured the imagination of young people.”
- Satellic Inc. (SATL): Parabolic—good for speculation, do your homework.
- Energy Transfer (ET): Buy, strong yield, pipeline company.
- Software Stocks: Enterprise software (like ServiceNow) better positioned, but broad sector feels “like wearing cement galoshes.”
- Lithium Americas: Too speculative for Cramer’s taste; “not lithium people.”
8. End-of-Show Segment: Starbucks Turnaround (43:56–47:18)
- Key Takeaway: Brian Niccol credited with turnaround—Starbucks now capable of getting customers coffee in four minutes or less by streamlining processes and cutting the menu 25-30%.
- Customer Traffic Up: Rewards and non-rewards transactions both rising—a first in several quarters.
- New Product Strategy: Focused on health/wellness, protein drinks, digital menu boards.
- “You aren't going to turn Starbucks around by layering on even more difficult to make drinks, which slows down everything.” – Cramer [46:39]
- Stock Long-Term Outlook: “If you don’t own any, I think this turn is solid and long lasting and the price is going to be right.”
Notable Quotes & Memorable Moments
- “Shortages are the true north. Gluts are the kiss of death.” – Jim Cramer [01:32]
- “They don’t call it precious for nothing…most of the gold is in places that are, let’s just say, not so great for doing business.” – Jim Cramer [02:47]
- “The best performers…are companies that you may never have heard of. They make things that are in short supply.” – Jim Cramer [09:39]
- “We have a once in a generation platform…winning.” – Bill McDermott, ServiceNow CEO [15:03]
- “Cybercrime is forecast to cost the world $1 trillion a month. If that was an economy, it would be third only behind the U.S. and China.” – Bill McDermott [22:20]
- “We play to win and we'll deal with failure when it happens. But we don't let that intimidate us not to do things.” – Richard Francis, Teva CEO [39:08]
- “You aren't going to turn Starbucks around by layering on even more difficult to make drinks, which slows down everything.” – Jim Cramer [46:39]
Timestamps for Important Segments
- [01:27] – Jim Cramer’s monologue: Shortages vs. Gluts
- [04:00] – Tech/data storage shortage discussion and top stock movers
- [06:45] – “Magnificent 7” earnings highlights (Microsoft, Meta, Tesla, IBM)
- [09:42] – Opening Q&A with callers
- [14:45] – ServiceNow CEO Bill McDermott interview
- [24:56] – Levi Strauss CEO Michelle Gass interview
- [32:53] – Teva Pharmaceuticals CEO Richard Francis interview
- [40:12] – Lightning Round
- [43:56] – Starbucks turnaround and closing remarks
Final Takeaways
Cramer’s 2026 show is laser-focused: look for shortages, avoid gluts, and bet on execution—be it in AI-leveraged enterprise software, rapidly evolving pharma, consumer brand reinvention, or companies making the back-end infrastructure of the modern economy. Beware of old narratives—innovators are showing up in surprising places.
If you want growth, follow the shortages!