Mad Money w/ Jim Cramer — January 6, 2026 Episode Summary

Main Theme & Purpose

Jim Cramer’s first Mad Money of 2026 kicks off with a high-energy review of Wall Street’s biggest lessons, surprises, and opportunities in the prior year. Cramer lays out his guiding philosophy for the new year: be an investor, not a trader. He revisits 2025's top and bottom stocks across the S&P 500 and NASDAQ 100, stresses the power of long-term holding and compounding, and shares pointed takes on breaking news, such as the U.S. involvement in Venezuelan politics and its impact (or lack thereof) on oil stocks. The Lightning Round features rapid-fire responses to stock questions, and Cramer offers a technical analysis on Costco's future. The message is clear — don’t be shaken by pessimists, focus on owning great companies, and let history be your guide.

Key Discussion Points & Insights

1. Jim Cramer’s 2026 Game Plan (01:41–07:50)

• Investor vs. Trader Mindset:
  Cramer urges listeners to "manage as much of your own money as possible" and prioritize owning quality stocks over frequent trading, emphasizing discipline and long-term thinking.
• Compound Gains:
  "Own [stocks] and let the power of compounding do its work. Most important, I want you to stick with those great stocks because that's where most people go wrong. They get shaken out of their long-term winners. Stop it." — Jim Cramer (02:06)

2. Breaking Down the Venezuela-U.S. Oil Story (02:41–07:50)

• Event Recap:
  President Trump’s supposed "overthrow" of Venezuelan President Nicolas Maduro prompts a speculative rally in oil and related stocks.
• Caution Against Chasing News:
  • Cramer explains that these stocks “opened too high,” resulting in little chance of quick profit for buyers entering late.
  • “All these stocks I just mentioned zoom from the get go. You had to pay top dollar to get into this game today.” (06:37)
  • “It’s the big move, the multiple year move, that I want you to get.” (09:37)
• Historical Parallel:
  He draws comparison to oil after the Iraq War and doubts quick turnarounds, highlighting the messy oil infrastructure and geopolitical uncertainty.

3. Where Real Opportunity Lies: Bank and Pharma Stocks (08:12–13:04)

• Banks Are Still Cheap:
  Goldman Sachs, JPMorgan, Citigroup, and Capital One singled out as undervalued and positioned for a strong year, further buoyed by expected rate cuts in 2026.
• Quote:
  “Goldman stock opened almost unchanged. It sells at just 17 times earnings, less than the average S&P 500 stock even though it's much better than they are.”
• Pharma Value:
  Johnson & Johnson highlighted as a buy due to a favorable spinoff, and emphasis on buying "discounted" stocks with good P/Es.

4. 2025’s Best & Worst: S&P 500 Deep Dive (15:18–23:04)

• Top S&P Performers (2025):
  • Memory/data storage sector dominated: SanDisk (+371%), Western Digital (+282%), Micron (+239%), Seagate (+219%)
  • Robinhood (+200%): Attributed to retail speculation and generational shifts in investing.
• Cramer’s Take:
  “...companies have been pretty darn cautious about expanding their capacity so far. Plus, when you look at Micron's annual gains for the past 30 years, there were plenty of times when the stock managed to rally hard for multiple years in a row.” (17:23)
• Notable Underperformers:
  • The Trade Desk (–68%), Fiserv (–67%), Alexandria Real Estate Equities, Deckers Brands, and Gartner all cited as major laggards, with Cramer diagnosing company- and sector-specific pitfalls, especially in tech and advertising.
  • On high-yield REITs: “Remember, a high yield is often the sign of real problems. Not just a Juicy opportunity.” (21:09)

5. 2025’s Best & Worst: NASDAQ 100 Review (24:53–32:54)

• Top Gainers:
  • Overlap with S&P 500: Western Digital, Micron, Seagate, Lam Research
  • Unique to NASDAQ: Insmed (biopharma, +152%), Palantir (+135%), AppLovin (+108%), KLA Corp (+93%), Intel (+84%)
  • On Palantir: “It's still tough to justify...valuation...but as usual, the Palantir bulls don't care about that...I am a big believer in this company and the stock.”
• Biggest Decliners:
  • Strategy (ex-MicroStrategy): Down 47.5%, described as a “leveraged bet on Bitcoin”
  • Charter Communications (–39%), Atlassian (–33%), Copart (–32%), PayPal (–31%)
  • On PayPal: “PayPal's classic payment offerings have mostly become commoditized...but maybe 2026 is the year when PayPal becomes too cheap to ignore.”

6. Investing Wisdom & Critique of Wall Street Pessimism (44:03–48:13)

• Why Did 2025 Defy the Bears?
  Cramer recounts that, while the consensus expected a bad year due to tariffs, rates, etc., the market surprised to the upside.
• Critique of Index-Only Thinking:
  Challenges passive investing orthodoxy and urges listeners to "own stocks in companies that can grow and grow," insisting that pessimism often governs but rarely wins.
• Wry Observations:
  “...if you listen to former CEO Warren Buffett, you would have sold his stock to own the S&P 500 and missed out on gigantic gains.” (46:22)
• Core Lesson:
  “There’s always a bull market somewhere. I promise I'd find it just for you right here.”

7. Technical Analysis: Costco’s 2026 Prospects (34:00–40:51)

• 2025 Struggles Recapped:
  Stock underperformed, CFO change, slight membership renewals dip.
• Why Hold (or Buy) Now?
  Larry Williams’s technical cycle work forecasts Costco is "just like a coiled spring waiting for the right moment to soar higher" (37:26).
  Williams’s proprietary indicators, professional accumulation, and cycle analysis all signal a buying opportunity.
• Cramer’s Trust Issues:
  Admits it’s been a tough hold but trusts Williams: “Even though Costco has been a painful investment...when Larry Williams says the stock's ready to run, my inclination is that with him, not against him.” (40:39)

8. The Lightning Round Highlights (41:25–43:46)

• Voyager Technology: “Very good speculation.”
• Immunome: “Speculate if you want, but not investing.”
• Nokia: “Nokia is tough...up against Apple...if it comes down, buy some Apple instead.”
• X-ray (Dentsply Sirona): “Represents some value here...suggest you buy some and put it away.”

9. Call-In & Notable Quotes

ServiceNow (Caller question, 10:09)

• “[ServiceNow] is a software company...still has a high price-to-earnings multiple...42 times earnings...still a little too high for me...one of the better companies in an industry having a tough time with AI.” (10:17)

Affirm (Caller question, 11:20)

• “You should buy more, Robert. I think that stock is going to par...$100. It's at 80 right now. Max Levchin, genius.” (11:55)

Snowflake (Caller question, 32:33)

• “I thought the quarter wasn't that bad...I think Sridhar Ramaswamy is a terrific CEO...I think the stock...is a buy.” (32:54)

Memorable Quotes & Moments

• On FOMO and Chasing News:
  “You were too late from the get-go if you came in today. Sad fact, but true.” (07:40)
• Lessons in Value:
  “If you can get the stock of a terrific company at a discount, not a premium...then you're investing well instead of trading badly. And history shows us that's how big money is made.” (13:04)
• On the Market’s Contradictions:
  “The pessimists always seem to prevail, even if they keep getting it wrong.” (45:33)
• Caution for Speculative “Cult Stocks”:
  “AppLovin trades like a speculative stock. The business really isn’t that speculative.” (29:35)
• On Experience and Loyalty:
  “I would change my mind only if I had an awful experience at a Costco—that's never happened, including my last three visits at three different stores around the country.” (40:36)

Timestamps for Key Segments

• [01:41] — Cramer’s opener and 2026 philosophy
• [02:41] — Venezuela news, oil stocks analysis
• [08:12] — Bank and pharma picks for 2026
• [15:18] — S&P 500 review: 2025 best and worst
• [24:53] — NASDAQ 100 review: 2025 biggest movers
• [32:00] — Lightning round kicks off
• [34:00] — Costco technical analysis (Larry Williams)
• [41:25] — Lightning Round continues
• [44:03] — “Why the pessimists got it wrong” lesson

Overall Takeaways

• Don’t Chase Headlines: Buying in after big news can mean overpaying for little gain.
• Focus on Undervalued Quality: 2026 is the year to find discounted great companies, especially in finance and select tech/pharma.
• Trust the Process: Long-term ownership, compounding, and discipline trump trying to time the market.
• Beware the Pessimists: The narrative is often negative, but historically, optimism and diligent investing win over doomsaying and trading mania.
• Technical Analysis Can Offer Opportunity: Even beloved stocks like Costco, after rough patches, can be prime for rebounds based on cycles and accumulation patterns.

For Listeners Who Missed This Episode

This episode is a roadmap for resetting your investing compass in the new year: focus on value, resist the trading-frenzy, and keep faith in well-run American companies. Cramer’s review of last year’s market winners and losers is packed with both hard-nosed skepticism and practical optimism, offering countless “learnable moments” and actionable points for the year ahead.