Mad Money w/ Jim Cramer — Episode Summary (Aired 1/29/26)

Host: Jim Cramer (CNBC)
Date: January 30, 2026

Overview

This episode of Mad Money is a classic tour through the rollercoaster of Wall Street, guided by Jim Cramer’s blunt, energetic, and often entertaining analysis. Cramer dives into the day’s wild market reactions, especially around hyperscalers and AI, breaks down recent earnings for giants like Meta, Microsoft, Apple, IBM, and Tesla, and interviews the CEOs of Royal Caribbean Cruises and Otis Worldwide. The show also features the famous Lightning Round, answering rapid-fire stock questions from callers. The episode’s core message: don't give up on high-quality companies, even after volatility, and be ready for market shifts driven by technology and changing economic forces.

Market Recap and The AI Wars: Meta, Microsoft, Tesla, Apple (00:54–12:34)

Key Insights & Points

• Market Highlights:
  • Dow up by 56 points, S&P down 0.13%, Nasdaq lost 0.72%, but all were higher than earlier in the day when a Microsoft selloff threatened a bigger drop.
• Meta’s AI Comeback:
  • Meta (Facebook's parent) soared 10%, proving the market rewards companies where AI is truly delivering results.
  • Cramer praises Mark Zuckerberg’s clear statement on AI’s transformational role at Meta:
    “AI is the greatest force multiplier... AI is changing the company’s fortunes in a way that is just extraordinary.” (09:13)
• Quote of the Night — On Meta’s Power:
  • “Meta knows everything about you…and his company will present your brain with exactly what you want. You will buy what they advertise because generative AI is finally that powerful.” — Jim Cramer (08:46)
• Microsoft’s Stumble:
  • Microsoft disappointed by not spending enough to meet AI demand, and only 1% of their 1.5 billion users pay for ‘Copilot’.
  • “It’s like Microsoft makes dog food that the dogs don’t want, right?...Dogs can’t read.” — Jim Cramer (07:59)
  • Cramer maintains faith, expecting Microsoft’s leadership to adapt:
    “Absolutely not [time to give up]. Remember, this is Microsoft. Just waiting for the velocity decline to dry up and then I will decide.” (11:14)
• Tesla & Apple:
  • Tesla repositioned itself from “just a car company” to a robotics and cyber company in one session.
  • Apple reported a robust quarter, blowing past iPhone sales expectations.
    • “Own it, don’t trade it.” — Cramer’s succinct Apple takeaway (12:14)
• Nvidia and Hyperscalers:
  • Nvidia is "not playing the game — they're running it; they're the house." The real king of AI.
  • Other hyperscalers (Alphabet, Amazon) may rotate from paper to rock in the “AI rock-paper-scissors” analogy.

Takeaway:

• “Don’t give up on these companies…they're nation states.” — Jim Cramer (12:19)

Lightning Round: Stock Q&A Highlights (39:30–41:32)

• Novo Nordisk (NVO):
  • “I think that novo is a hold, not a buy.” (12:19)
• Rio Tinto:
  • “I just think you should go in and own it. Great hedge against chaos in the world.” (39:54)
• Armour Residential Real Estate:
  • “The yield is 15%. That is worrisome — that is not a bargain.” (40:27)
• Carrier:
  • “He’ll come through with it fine. I think you buy it now and put it away.” (40:48)
• Palantir:
  • “If anything, I would say great opportunity to buy Palantir…IBM is a cheaper stock than Palantir.” (29:53)
• Rubrik (Cybersecurity):
  • “All the same, have to wait and shake out the price. Right now, I do not like falling knives.” (41:23)

Royal Caribbean Cruises CEO Interview — Jason Liberty (14:12–21:02)

Main Discussion

• Travel Demand Remains Strong:
  • Despite talk of the travel boom’s end, bookings are at record highs.
  • “We’ve been building this dream machine…best ships, best destinations, and the best people.” — Jason Liberty (14:41)
• AI’s Role:
  • Heavily investing in AI and technology to personalize and manage yield, resulting in higher demand at higher prices.
  • “We have 15 million price points that we’re managing every day and growing.” (20:26)
• Supply Myths:
  • Oversupply worries dismissed:
    “That is not what we’re seeing from the consumer.” — Liberty (16:12)
• River Cruises Expansion:
  • Rapid growth led to doubling the river cruise fleet:
    “Demand has been well above our expectations…very, very long waiting lists to get on.” (17:13)
• Discovery Class Ships:
  • New, game-changing ships launching; marketing hype built up for 2029.
• Forecast and Wave Season:
  • “We’re 2/3 booked for 2026 — these are ironclad bookings.” — Cramer (19:04)
• NFL Ads Boost Bookings:
  • “In times like this…when they’re watching football and looking at sunshine, that certainly stimulates them to dream about being in the warmth and being on our beautiful ships.” — Liberty (20:26)

IBM Earnings Breakdown (22:46–29:53)

Key Discussion Points

• IBM’s Comeback:
  • Blew past expectations: Q4 sales up 12% to $19.7B (est. $19.2B); gross margin and earnings beat.
  • “IBM’s best growth rate in more than three years.” (23:41)
• All-around Software Growth:
  • Red Hat up 10%, Automation up 18%, Data up 22%; mainframe business (IBM Z) up 67%.
  • “There’s a real mosaic of strength.” (25:19)
• AI Consulting and Internal Use:
  • IBM is both provider and user of AI, driving $4.5B in annual run-rate savings (internal productivity).
  • “IBM’s not just the vendor, it’s the client.” (27:42)
• Valuation:
  • Trades at around 25x earnings — cheap for the growth, especially compared to SaaS peers.
  • 17 straight quarters of earnings beats. “IBM nearly doubled since I started recommending it just over two years ago.” (29:37)
• Bottom Line:
  • “Buy some IBM if you don’t already.” (29:41)

Otis Worldwide CEO Interview — Judy Marks (31:49–39:29)

Key Discussion Points

• Service is King:
  • Service revenues up 5%; 93% of quarterly profit and backbone for 2026.
  • “The main thing at Otis is service.” — Judy Marks (32:15)
• Refurbishment & Modernization Boom:
  • 9M+ elevators globally over 20 years old drive demand for upgrades; orders up 43% in China.
• US Construction/Multifamily:
  • Multifamily housing and infrastructure projects (airports, hospitals) are a growth engine.
  • “Multifamily is back…seeing that grow in every part of the US.” — Marks (35:06)
• Labor Pipeline:
  • Otis is hiring, apprenticeship programs strong, oversubscribed.
• Capital Returns:
  • “Most years we return 100% of capital…dividend and buybacks. For us, it’s all about service, refurbishment, modernization.” (38:32)

Special Segments

Multiple (M) Compression in Software Stocks (41:35–47:30)

• Advice on Valuations:
  • The Price/Earnings ‘M’ is “the secret sauce of the stock price.”
  • SaaS/software names like ServiceNow & Salesforce face multiple compression due to AI fears reducing user counts and thus billings.
  • “…their growth remains strong. Can the market be wrong? Of course. Can you get in front of a freight train? Maybe not now, not yet.” — Cramer (45:57)

Notable Quotes & Moments

• "It’s not done going higher now...Meta is a rock for certain." — Jim Cramer (08:59)
• "It’s like Microsoft makes dog food that the dogs don’t want, right?" (07:59)
• “Never give up on the hyperscalers. I just said horrible things about Microsoft, right? And yet, am I a buyer? All right.” (12:19)
• "Nvidia…they aren’t playing a game at all. They’re running the game. They’re the house. That’s the best place to be." (12:27)
• "ServiceNow has always been a good earner. But Wall Street’s saying the good days will come to an end..." (45:05)
• "There’s always a bull market somewhere, and I promise to find it just for you." (47:25)

Episode Timestamps

• 00:54–12:34 Market recap, AI, and tech stocks (Meta, Microsoft, Tesla, Apple, Nvidia)
• 14:12–21:02 Royal Caribbean CEO Jason Liberty interview
• 22:46–29:53 IBM earnings analysis
• 31:49–39:29 Otis Worldwide CEO Judy Marks interview
• 39:30–41:32 Lightning Round stock Q&A
• 41:35–47:30 The “M” — how multiples shape stock prices and SaaS sector woes

Conclusion

Jim Cramer’s episode is an urgent reminder to trust long-term management and not get tricked by short-term market mood swings, especially with leading tech and industrial companies. He warns of valuation compression in software stocks due to AI concerns but urges listeners to keep the faith in market leaders and pounce when the dust settles.

If you want the quick takeaways:

• AI is real — but only for companies truly harnessing it (Meta up, Microsoft wobbles but don’t give up).
• IBM is back and cheap for the quality; Otis thrives on service and modernization, not just new builds.
• Royal Caribbean’s demand is strong; fears about travel’s end are “not what we’re seeing.”
• Multiple compression is real in software; wait for bottoms before buying.

Cramer’s core advice: “Don’t give up on these companies…they’re nation states.” (12:19)

Skip the noise — follow the smart money, but be patient for the right pitch.