Mad Money w/ Jim Cramer – Episode Summary (February 26, 2025)

Release Date: February 27, 2025

Introduction

In this episode of "Mad Money," Jim Cramer dives deep into the current market dynamics, explores the impact of presidential trade policies, and interviews key industry leaders to provide investors with actionable insights. The episode seamlessly blends market analysis, expert interviews, and interactive segments with callers, offering a comprehensive overview for both seasoned investors and newcomers.

1. Market Overview and Economic Commentary

Jim Cramer opens the show by addressing the volatile market conditions influenced by President Trump's discussions on tariffs. He highlights the dramatic swings in the stock market, attributing recent downturns to the uncertainty surrounding trade policies.

• Tariffs and Market Uncertainty:
  Cramer discusses how the President's focus on tariffs is creating instability in the markets. He notes, "Tariff talk is so pervasive, so overwhelming, so in your face, that we even stopped discussing what dominated our discourse for years, which was the bond market" ([00:29]).

• Impact on Major Stocks:
  He analyzes the mixed performance of major indices, mentioning Nvidia's impressive earnings contrasted with Apple's stock decline due to tariff concerns. Cramer remarks, "Apple gets a substantial number of its parts from Taiwan. It manufactures a huge amount of products from cell phones in China... It gets hurt by tariffs" ([05:50]).

• Bond Market Dynamics:
  Cramer observes, "Long term interest rates have plummeted. The ten-year treasury... is now slouching toward 4%, finishing at 4.25% today. That's insane" ([06:10]).

Notable Quote:
"My mission is simple, to make you money. I'm here to level the playing field for all investors." ([01:22])

2. Interview with Mark Benioff – CEO of Salesforce

Jim Cramer welcomes Mark Benioff, CEO of Salesforce, to discuss the company's stellar performance and innovative initiatives.

• Salesforce's Best Quarter Ever:
  Benioff shares, "This was the best quarter we have ever had. This is our first $10 billion quarter. Incredible" ([14:21]).

• Agent Force and AI Integration:
  The conversation delves into Salesforce's Agent Force, an AI-driven layer designed to enhance customer interactions. Benioff explains, "We're not just providing them software to help them manage their data... We're creating new digital agents and digital workers" ([17:00]).

• Competitive Edge Over Microsoft:
  Benioff contrasts Salesforce's Agent Force with Microsoft's Copilot, stating, "Copilot's been a huge disappointment for customers... We're advancing digital labor in a way Microsoft hasn't" ([22:24]).

• Strategic Leadership Changes:
  Benioff introduces the new CFO, Robin Washington, highlighting her impressive background and role in driving Salesforce's financial strategy ([23:21]).

Notable Quotes:

• "Agent Force is a revolution." ([18:14])
• "We're moving from being a provider of software... to being a provider of digital labor." ([21:00])

Conclusion of the Interview:
Cramer acknowledges Salesforce's growth and strategic direction, affirming his confidence in the company's trajectory. "I agree with you. But then again, I own it for my travel trust forever" ([25:14]).

3. Interview with Rick Smith – CEO of Axon Enterprise

Axon Enterprise, formerly known as Taser International, takes center stage as Rick Smith discusses the company's mission and innovative products.

• Mission to Reduce Gun Violence:
  Smith states, "We are on a mission to make the bullet obsolete and specifically cut gun deaths in policing by 50% over the next 10 years" ([28:01]).

• AI Integration in Policing:
  The integration of AI with Axon's body cameras revolutionizes law enforcement by automating report writing and enhancing investigative processes. Smith elaborates, "We take the body camera video and we feed it into AI and it takes the transcript and it does the first draft of the police report" ([29:55]).

• International Expansion:
  Axon is expanding globally, with a focus on tranquil countries dealing with rising crime. Smith remarks, "We're getting a lot of international. Keep your eye on the Nordic countries" ([31:08]).

• Product Demand and Innovation:
  Despite high demand, Axon faces challenges in scaling production. Smith shares, "We have not been able to make it fast enough yet... We're still working on" ([32:06]).

Notable Quotes:

• "The cameras... protect you from all the nasty, terrible things people might accuse you of having done." ([29:37])
• "AI services we launch this year are selling five times faster than any product in our history." ([32:26])

Conclusion of the Interview:
Cramer praises Axon's transformation and growth, stating, "As a service company, you're far bigger than that. Congratulations to you, Rick Smith" ([32:59]).

4. Interview with Lindsey Drucker – CFO of Oddity Tech

Lindsey Drucker discusses Oddity Tech's robust performance in the struggling cosmetics industry and its innovative approach.

• Thriving in a Challenged Industry:
  Drucker explains, "We believe that incumbents are behind the curve. They've not [caught] up where the consumer is" ([34:17]).

• Online Sales Dominance:
  Oddity Tech leverages technology to enhance the online shopping experience, replacing in-store interactions with AI-driven models. Drucker states, "We are able to replace and improve upon the experience you would have in a store" ([37:08]).

• Biotech Initiatives:
  The company has ventured into biotech to develop advanced beauty ingredients using AI. Drucker shares, "We have an elite group of scientists... using artificial intelligence for molecule discovery" ([35:59]).

• Financial Strategy and Share Buybacks:
  Oddity Tech has actively bought back shares to provide shareholder value. Drucker notes, "We bought back over 10% of our float last year... $150 million of share buybacks across 2024" ([37:38]).

Notable Quotes:

• "We believe that... it's the shift online that is going to be the biggest market in the entire channel." ([34:17])
• "Our business was built around... track everything, we monitor every single thing." ([38:04])

Conclusion of the Interview:
Cramer commends Oddity Tech's strategy and financial health, reinforcing his optimism about the company's future. "What you've done for shareholders. That's Lindsey Drucker, man" ([39:05]).

5. Lightning Round: Quick Stock Calls

In the “Lightning Round,” Cramer interacts with multiple callers seeking advice on various stocks. Key discussions include:

• Martin Marietta Materials:
  Cramer advises caution, suggesting to "wait to see the quarter" before making investment decisions ([40:16]).

• Serve Robotics:
  Described as a high-risk stock, Cramer "greenlights" it for younger investors willing to take on risk ([40:45]).

• Badger Meter vs. Agilent:
  Cramer recommends holding onto Badger Meter but prefers Agilent as a steadier investment ([41:12]).

• Arista Networks:
  Cramer acknowledges mixed sentiments but remains neutral, noting competition’s impact ([42:32]).

Notable Interactions:

• Jeff from New York seeks advice on stocks benefiting from winter-related repairs.
• Christian from Texas inquires about Serve Robotics, receiving a cautious endorsement.
• Terry from Michigan discusses Arista Networks amidst industry challenges ([39:20]-[42:53]).

6. Short Selling Commentary

Cramer delves into the resurgence of short selling, analyzing its effects on various stocks and the broader market.

• Short Sellers Resurge:
  He explains that after a hiatus marked by high-profile short squeezes (e.g., GameStop), short sellers are returning aggressively. "After four year hiatus, the short sellers are back on the scene" ([43:29]).

• Impact on Stocks:
  Cramer highlights how short selling has led to dramatic drops and subsequent rebounds in stocks like Applovin, Exxon Enterprise, and Workday. He emphasizes the volatility introduced by shorts planting narratives and influencing stock movements ([44:03]-[47:46]).

• Risks of Short Selling:
  He warns about the inherent dangers for hedge funds, noting that shorting can lead to losses exceeding 100% of the investment ([44:03]).

Notable Quote:
"The trickier ones are bouncing hard here. These reflect short sellers either locking in their gains or throwing in the towel and covering their failed positions." ([46:00])

Conclusion

Jim Cramer wraps up the episode by reinforcing the importance of diversification amidst unpredictable market forces. He encourages listeners to stay informed and adaptable in their investment strategies.

Final Remark:
"There's always more market summer and I promise I'd find it just for you right here on Mad Money." ([47:46])

Key Takeaways

• Trade Policy Uncertainty: Presidential focus on tariffs is a significant driver of market volatility.

• Innovative Leaders: Companies like Salesforce and Axon Enterprise are leveraging AI to revolutionize their industries, presenting potential growth opportunities.

• Strategic Financial Management: Oddity Tech exemplifies resilience in a challenged sector through technology-driven strategies and shareholder-friendly financial practices.

• Market Dynamics: The resurgence of short selling introduces new layers of complexity and risk to the market landscape.

This episode of "Mad Money" provides a nuanced look at the interplay between government policies, innovative corporate strategies, and market behaviors, equipping investors with the knowledge to navigate the complexities of Wall Street.