Mad Money w/ Jim Cramer 3/10/25

Summary

Mad Money with Jim Cramer - Episode Summary (March 10, 2025)

Podcast Information:

• Title: Mad Money w/ Jim Cramer
• Host: CNBC
• Description: “Mad Money” offers an inside look into the strategies of one of Wall Street’s most respected money managers. Jim Cramer guides listeners through the complexities of investing, highlighting opportunities and cautioning against pitfalls with the aim of helping them grow their wealth. The show features Cramer's passionate insights and the popular Lightning Round, where he shares his buy, sell, and hold recommendations on various stocks.

---

1. Market Overview

Jim Cramer's Opening Remarks [01:22]:

• Mission Statement: “My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad money starts now.”
• Current Market Sentiment: Cramer addresses the tumultuous market conditions, highlighting significant losses in major indices: Dow Jones down by 9 points, S&P 500 plunging 2.6%, and NASDAQ dropping a substantial 4.0%. He emphasizes that this was the worst day for NASDAQ in two and a half years, with the "Magnificent Seven" shedding an astonishing 5%.

Market Dynamics [02:00]:

• Recession Preparations: Sellers are aggressively offloading stocks to preempt a potential recession, swapping "safety stocks" for sectors like healthcare and oil, the latter often favored for their higher yields.
• Impact of Political Climate: Cramer discusses how the change in presidency affects the market, drawing parallels between the current President Trump's trade policies and historical figures like William Jennings Bryan and Herbert Hoover. He criticizes Trump's approach to tariffs, likening it to decisions that historically led to economic downturns.

Quote Highlight:

• “Today's terrific action... it's the worst day for the NASDAQ in two and a half years.” [01:22]

---

2. Stock Analysis

A. Costco Wholesale Corporation

Performance and Analysis [14:34]:

• Recent Decline: Costco experienced a 13% drop from its all-time highs following a solid quarterly report that missed earnings estimates by a mere $0.09.
• Revenue Insights: Despite the earnings miss, Costco reported a 6.8% same-store sales growth, surpassing Wall Street's expectations of 6.4%.
• Management's Perspective: CFO Gary Miller emphasized that consumers remain willing to spend, albeit more selectively. This "choicefulness" benefits Costco due to its value-oriented offerings.
• Strategic Positioning: Costco adapts its product assortment to mitigate tariff impacts and maintains strong supplier relationships, ensuring continuity despite external economic pressures.

Cramer's Stance:

• Buying Opportunity: “I'd like to start looking at the more than 13% pullback as a buying opportunity.” [23:00]
• Valuation Perspective: Although trading at high multiples (over 50x earnings estimates), Cramer believes the underlying business fundamentals justify potential future gains.

Quote Highlight:

• “Consumers might even become more choiceful as to the impact of some return of inflation... yet benefit Costco because this company offers the best value in the industry.” [14:34]

B. On Holdings (ON)

Performance and Analysis [23:00]:

• Stock Performance: ON Holdings surged from $15 in late 2022 to an all-time high of $64 in January, followed by a pullback to approximately $44 amid market sell-offs.
• Quarterly Results: The company reported an 11% revenue growth with a 62.1% gross margin, surpassing Wall Street’s expectations.
• Growth Drivers: Strong performance in direct-to-consumer (DTC) channels, strategic brand management, and notable marketing partnerships (e.g., with Roger Federer).
• Brand Strategy: ON manages its brands through premium products, strategic partnerships, and impactful global marketing campaigns, significantly boosting brand awareness, especially among Gen Z consumers.

Cramer's Stance:

• Recommendation to Buy: “On holdings has now given up all of the post quarter gains and then some. The stock's now down to its lowest level since mid to late August. Now that strikes me as an excellent candidate for buying into.” [23:00]
• Growth Potential: Emphasizes ON's ability to outperform competitors like Nike through effective brand and product strategies.

Quote Highlight:

• “ON management had some really thoughtful things to say about the company's brand strategy... it's looking like Direct to Consumer will soon surpass wholesale as the primary channel for ON's products.” [23:00]

C. Deckers Outdoor Corporation

Performance and Analysis [23:00]:

• Stock Decline: Deckers faced a 45% decline since its last earnings report due to poor guidance and inventory issues.
• Earnings Report: Despite delivering strong top and bottom-line results, the stock plummeted after management issued weak forward guidance, attributing it to over-sales of Uggs during the holidays.
• Valuation Concerns: The price-to-earnings (PE) ratio fell from 30 to 20, signaling excessive undervaluation according to Cramer.

Cramer's Stance:

• Potential Buy: Although acknowledging the challenges, Cramer sees Deckers as a high-quality company worth considering for investment.

Quote Highlight:

• “Deckers has been awful since then, falling lower and lower to the point where it's now down over 100 points or more than 45% since its last earnings report.” [23:00]

D. CrowdStrike Holdings Inc.

Performance and Analysis [23:00]:

• Stock Volatility: CrowdStrike reached an all-time high of $455 in February but has since been heavily sold off, dropping to the low $300s.
• Earnings Insights: The company reported excellent revenue and earnings, breaking records with over $1 billion in free cash flow and strong annual recurring revenue (ARR) growth.
• Threat Landscape: Increasing cyber threats, including sophisticated attacks from state-sponsored actors, bolster CrowdStrike’s market position.
• AI Integration: Investments in AI have enhanced CrowdStrike’s capabilities, improving threat detection and operational efficiency.

Cramer's Stance:

• Buying Opportunity: “I still like CrowdStrike very much, which is why we use today's weakness to buy more for the child trust.” [23:00]
• Long-Term Confidence: Cramer is optimistic about CrowdStrike’s strategy and growth prospects, despite short-term market volatility.

Quote Highlight:

• “CrowdStrike roared to an all-time high... but since then though, the stock's been eviscerated. Sell, sell, sell.” [23:00]
• “CrowdStrike's not wasting money on AI. These are smart investments.” [23:00]

E. Other Stocks Discussed

1. Tapestry Inc. (Formerly Coach): Cramer advises caution, indicating potential further declines.
2. Merck & Co., Inc.: Recommended as a buy due to its undervalued price and solid dividend yield.
3. Cal-Maine Foods, Inc.: While recognizing its low PE ratio and strong dividends, Cramer expresses skepticism about its valuation.

---

3. Political and Economic Context

Tariff Policies and Presidential Influence [02:00]:

• President Trump's Trade Agenda: Cramer criticizes the administration’s heavy-handed tariff strategies, drawing historical parallels to the Smoot-Hawley Tariff Act of 1930, which exacerbated the Great Depression.
• Economic Implications: He warns that aggressive tariffs on trading partners could lead to rapid recession, citing reduced consumer confidence and strained international relations.

Historical Analogies:

• William Jennings Bryan and Herbert Hoover: Cramer likens Trump’s policies to those of historical figures who prioritized populist agendas over economic stability, suggesting a detrimental impact on Wall Street and broader economic health.

Quote Highlight:

• “Trump too frankly is killing the market simply by saying that he's not paying attention to it.” [02:00]
• “President Trump... slapping their exports with big tariffs.” [02:00]

---

4. Buy/Sell/Hold Recommendations

Highlighted Stocks:

• Buy:
  • Costco Wholesale Corporation: Opportunistic buy during pullback.
  • On Holdings (ON): Strong growth prospects despite recent decline.
  • CrowdStrike Holdings Inc.: Undervalued due to market overreaction.
  • Merck & Co., Inc.: Undervalued with solid dividends.
• Sell:
  • Tapestry Inc.
  • Verona Pharmaceutical: Recommended partial sell due to high risk.
• Hold:
  • Marvell Technology: Advised to stay the course amidst volatility.

Cramer's Strategy:

• Constructive Buying: Emphasizes buying quality stocks during market downturns to capitalize on discounted prices.
• Avoiding Panic Selling: Warns against selling high-performing stocks like the Magnificent Seven, which are being unfairly punished in the current sell-off.

Quote Highlight:

• “Not jumping back into the Magnificent Seven because as of tonight there is no Mag seven...” [23:00]
• “Being constructive has always done well for me. It's not going to change this time.” [23:00]

---

5. Political Impact on Markets

Trade Policies:

• Tariffs: Ongoing tariff wars are destabilizing global markets, with Cramer predicting continued aggression from the administration.
• Economic Recession: Anticipates that current policies may trigger a swift recession, affecting various sectors indiscriminately.

Cramer's Critique:

• Lack of Strategy: Criticizes the administration for its brute-force approach, suggesting that more nuanced strategies could mitigate economic fallout.
• Historical Lessons Ignored: Draws lessons from past economic policies that led to downturns, urging for more informed decision-making to prevent similar outcomes.

Quote Highlight:

• “The whole market has changed because the President has changed.” [02:00]
• “They don't matter as long as they can take it. And that's the zeitgeist from the Walmart White House.” [44:33]

---

6. Lightning Round

Caller Interactions [40:06 - 43:25]:

• Mike from New York: Advised to hold on to Marvell Technology, suggesting it’s a good long-term buy despite short-term pain.
• Joey from Arizona: Recommends selling half of Verona Pharmaceutical due to its risky nature.
• Sean from California: Encourages holding onto Keysight Technologies, another strong performer unfairly hit by the market.
• Amelia from New York: Suggests buying Merck & Co., highlighting its undervaluation and strong dividend.

Key Takeaways:

• Diverse Recommendations: Cramer provides tailored advice based on individual stock performance and market conditions.
• Focus on Quality and Value: Emphasizes the importance of investing in fundamentally strong companies despite market volatility.

Quote Highlight:

• “CrowdStrike's not wasting money on AI. These are smart investments.” [43:05]
• “We use today's weakness to buy more for the child trust.” [43:05]

---

7. Conclusion and Final Thoughts

Buying Opportunities Amidst Sell-Off [43:36 - 48:23]:

• Constructive Approach: Cramer advocates for a positive, proactive investment strategy during downturns, focusing on purchasing undervalued, high-quality stocks.
• Historical Insights: Reflects on past market behaviors, emphasizing that significant gains are often achieved through disciplined investing and avoiding panic.
• Call to Action: Encourages listeners to seize the moment by investing in promising stocks while maintaining a long-term perspective.

Final Quote:

• “Are you willing to bet that this time it's wrong? Alex says, always a bull market somewhere. I promise I find it just for you right here on Mad Money.” [48:23]

---

Notable Quotes with Timestamps:

• “My mission is simple. To make you money.” [01:22]
• “Today's terrific action... it's the worst day for the NASDAQ in two and a half years.” [01:22]
• “Consumers might even become more choiceful as to the impact of some return of inflation.” [14:34]
• “On holdings has now given up all of the post quarter gains and then some.” [23:00]
• “Marvell Tech, that's Matt Murphy. I know. It's a wild overreaction to that quarter.” [30:05]
• “CrowdStrike's not wasting money on AI. These are smart investments.” [32:14]
• “Are you willing to bet that this time it's wrong?” [48:23]

---

Final Remarks: Jim Cramer delivers a comprehensive analysis of the current turbulent market, focusing on identifying undervalued stocks amidst widespread sell-offs. By emphasizing strategic buying during downturns and cautioning against panic selling, Cramer provides listeners with actionable insights aimed at long-term financial growth. His critique of political influences on the market underscores the interconnectedness of policy and economic performance, while his stock recommendations offer a roadmap for navigating uncertain times.

---

Note: This summary excludes advertisements, intros, outros, and non-content sections as per the provided instructions.

Transcript

[Narrator]

Say you've always wanted to take a spontaneous trip to the Caribbean. Here's the thing. If you get smart with your money, you can do things like that. With Empower, you can start making the most out of your money so you can get out and live a little. Isn't that why we work so hard to have some fun with our money? Like treating yourself to something special or spontaneously doing something extra for a loved one? So use Empower and get good at money so you can be a little bad. Join their 19 million customers today at empower.com not an empowered client, paid or sponsored. Homes.com knows that when it comes to home shopping, it's never just about the house or condo. It's about the home. And what makes a home is more than just the house or property. It's the location and neighborhood. If you have kids, it's also schools, nearby, parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in depth information they need to find the right home. And when I say in depth, I'm talking deep. Each listing features comprehensive information about the neighborhood, complete with a video guide. They also have details about local schools with test scores, state rankings and student to teacher ratio. They even have an agent directory with the sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know, all in1place.homes.com We've done your homework.

[Jim Cramer]

My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad money starts now. Hey, I'm Kramer. Welcome to MAV Money. Welcome to Kramerica. Other people make friends. Geez, I'm just trying to save a little money. My job is to put everything in context and I'm going to do it today. I'm going to do it for you. Call me at 1-800-743-CNBC tweet Mitch McCramer. But they wipe out these gains pretty easily, don't they? Just like that. The sellers take away months, if not years of profits because they want to get ahead of a potential recession. And then they swap the safety stocks that thrive in a slowdown. Welcome to the world of recession preparation, where it doesn't matter what prices you get on the sales or the buys, as long as they get done. Which explains today's terrific action. Dow coming in or nine points. SB plunging 2.6%. And the NASDAQ plumly 4.0%. Not only was this the worst day for the NASDAQ in two and a half years, the Magnificent Seven shed an astounding 5%. We're getting rid of the name Magnificent Seven tonight. It doesn't make any sense of all. Some of the money taken from these long standing winners went into the health cares and oils, especially the ones with higher yields. Buying health care stocks makes sense. Their slowdown plays oils don't make a lot of sense even the ones with high dividends. People say protecting this one, believe me. And there is justification for the buy safety sell discretionary stocks Tonight Delta stock was just absolutely obliterated when the company announced a hideous shortfall citing weakness in both business and consumer. What a dog. So what the heck is going on here? We don't want to be historical that we want to be historical historical and we want to be together first. The whole market has changed because the President has changed. Trump one favored the stock market and hated to see the Dow Jones industrial average Dow. Trump 2 favors rebuilding a market the hands of our greedy trading partners by slapping their exports with big tariffs. By the way, remember I agree with the greeting. I'm not against what he's doing. I'm against the way he's doing it. We know that President Trump claims to admire President McKinley. He restored the name of our highest peak from its native name Denali to Mount McKinley in honor of the 25th president. Quite a significant switch from when President Obama in 2015 scrapped McKinley and restored to Denali. Like most everything else that we thought President Trump stood for, McKinley represented the banks and the business interests of the time. That's turning out to be first President Trump, though not the second. It was William Jennings Bryan, the loser in the 1896 race who was the populace. And he sounds a lot more like Trump. Trump too is William Jennings Bryan. Ian McKinley, Brian ran on the Democrat populist party ticket. He stood for helping working people against the big moneyed interests. His followers wanted easy money, which at the time meant using silver coins as well as gold. But here's the thing. Trump 1 was very much in the vein of McKinley and Wall street like that. Trump too is much more William Jennings Bryan and Wall street done like that. You can almost hear from borrowing lines, he's like borrowing lines. Brian's famous cross of gold speech, most emotional speech about monetary policy in human history. Trump too frankly is killing the market simply by saying that he's not paying attention to it. He said this weekend it's not a focus after all. Like Biden. Trump seems to accept that stockholders usually, usually are wealthy people and that they've done well enough. It's time for the other 99% to do better. I don't know. That's what it feels like. Amazingly, that he and Biden finally agree on something. Stock market now let's get serious. I've been saying for weeks that we have a Wal Mart White House where the President favors everyday lower prices for stocks. Weeks I've said that he's giving nothing, literally nothing to stockholders. Today everyone seemed to discover what I've been saying every night here. The everyday lower price tagline is totally true. It's not meant to be funny. The thing is, we like it the supermarket, we like the lower prices. We not so fond of it here. All right? I mean, we like this part and we don't like this part. Pretty simple. This good, this bad. How long can this stuff go on? I don't know. William Jennings Bryan stayed that way, though he died. Then again, he never won the presidency. I don't think that Trump will start going easier on our trading partners just because the Dow has been eviscerated. He's not sacrificing our trade policy on a cross of gold. Meaning of course, higher stock prices. Of course not many investors saw this coming and that's incredible to me. And the shock from Trump's change in attitude has terrified the money men, the big money men, the ones that William Jennings Bryan attacked virtually overnight. They decided that we're headed for a recession and it's going to happen fast. Thesis we're a consumer country. They think the consumer's finished because of turmoil created by the Wal Mart White House. At the same time, the big themes of tech, the datacenter build out and I seem suddenly cursed victims of that Chinese Alpha deep sea that has figured out a way to get more computing power from less hardware buyers are in video expensive chips by the Nvidia now trades like a meme stock. Can we just tell it it's a meme. That's why it's getting crushed. Let's not fall around. It's a meme stock. Hey, maybe the strong orders we saw from Oracle tonight can turn things around. Then again, the Delta shortfall sure does upset that will we really have a recession? The economy does seem to be in a sudden precipitous decline. We know that the President who loves tariffs now threatening to put tariffs on our trading adversaries that are as high or higher than the fabled smooth Hawley Tariff act of 1930. Yeah, the one that helped cause the Great Depression. The sellers are not oblivious to history, even if the white. As I see it, Trump's mimicking legendary President Herbert Hoover, who despite endless diatribes by economists saying Smoot Hawley could destroy the economy, champion and sign the bill in the name of yes, the working man, especially the farmers. Exports dropped 60% and we went into the worst depression in our nation's history. Hoover regretted it, said that they should be appealed in 1932. Way too late. I think the comparison is excessive, but you never want to be in the same sentence as Herbert Hoover should you join the sellers. I think today's sellers are getting getting late, but not too late to the party. First, they got terrible prices as they sold frantically to get out before the others, although the others may not appear because things are already pretty ugly. Second, they totally got ripped off on their buys, which could have been done in a much lower levels if they didn't demand the brokers buy the recession boost stocks lickety split. Our markets are deep, but they're not so deep that they can handle such concentrated buying and selling. Perhaps tomorrow we'll get another day like today or worse. Which is what these sellers must be thinking or they wouldn't be dumping so vociferously. Maybe they know that the President's going to slap tariffs on Western Europe, Japan and Korean automakers. I'm waiting for that. Aren't you those the trade barriers from those guys are awful. Maybe he attacks the new Canadian leader, Mark Carney. Great guy, smart guy. But right now on the wrong side of the trade. Or maybe, just maybe, they know that Trump will defend the farmers against the Chinese. I can hear him say the words already. President Trump. Here. Just write this down. Burn down your cities and leave our farms and your cities will spring up again as if by magic. But destroy our farms and the grass will grow in the streets of every city in the country. That's the William Daniels Brian Cross of cold speech. Sorry. I think people forgetting two things. One is that interest rates are going lower, which is good news. Two is that we have a Federal Reserve chairman, a student of history. He knows both. William Jennings Brian, Herbert Hoover Betty knows of course the gold speech by heart. I used to have it memorized. He knows smooth Hawley and he knows that we could be in trouble. Can Jay Powell Trump Trump? I've been waiting to use that line for years. I say it'll be the other way around. Get ready for Trump to attack Powell for doing something, anything. I don't know. It doesn't have to be accurate. Powell can lower rates anyway. So the answer is that after Delta News is digested tomorrow and all the travel and leisure numbers are cut, it might be too late to sell. You can buy some low multiple tax and industrials and banks here. We did that for the charitable trust today. Right into the teeth of the sell off. I'm going to talk about it on Thursday. Noon club call. I think you want to be in. I would not jump back into the Magnificent Seven because as of tonight there is no Mag seven came up with that name. Scrapping it right now. No moniker fits the two or three that remain viable. And I'm not going to put. And there is nothing magnificent about Tesla or in video. I don't know if the recessionistas can keep buying Smucker and Colgate. They're not even doing well. Can they keep selling Marvel Tech? I don't know. It's a nightmare. Okay, but the bottom line, Remember this whole situation is manufactured by the Wal Mart White House. Because almost every other market around the globe is crushing ours. They're all doing better than we are. I don't know who's advising the President. I know what he is doing is important work. And I am no free trader. I am not even a fair trader. I'm a tariff guy. But I think you can kill more flies with honey right now. Certainly more than nuclear weapons. Now, the President can roll him back if he wants to, but he generally believes his tariffs are the right thing to do. Which is why they'll probably keep coming with no finesse whatsoever. Just brute force. Which I have to tell you, and including you, Mr. President, there are other ways and better ways to get things done. Let's go to Loren in Wisconsin. Lauren. Hi, Jim.

[Caller]

Thanks for taking my call.

[Jim Cramer]

And thanks for all your help along the way.

[Narrator]

My question is.

[Jim Cramer]

I'm trying. We're in this together. It's a very tough time. Yeah, go ahead. I'm sorry, I didn't mean that. Go ahead.

[Caller]

Oh, sure.

[Jim Cramer]

With automation. Just in passing. Honeywell is considering being divided up into three companies. And I'm interested in the growth part of it. And I wondered what your insight was on which part of that company would best be suited for growth. Okay. Mike. Chapter owns it. We have a lot of it. Honeywell. The growth part is aerospace. Nobody wants Boeing. They'll be buying Honeywell just like they bought GE Aerospace. I will say this. I like the chemicals business is not a growth business, but it's better than the typical chemical company. So that's going to make people like it. The automation business work in progress. Okay, let's go to sue in North Carolina. Sue. Hey, Mr. Kramer, I want to show every day in 20 years. Thank you. I appreciate that. Thank you.

[Caller]

What's going on with the stock Reddit?

[Jim Cramer]

Okay, so there was a big short squeeze. Let me explain this. First of all, I think the company is doing incredibly well, ok? It didn't do as well as what people felt because the stock had gone up so much. People were expecting something perfect. Second, there was a gigantic short squeeze. People were betting against it, betting it wouldn't be a good quarter. And it didn't come out perfect. Quarter. Third, I think that Steve Hoppins doing a great job. And I would start right here. Right here. Let's say you want to buy 100 shares by 25. That's what we're doing. By the way, guys, we're not buying 100 shares all at once. We're buying 25. 25. 20. Okay. We're buying down. That's what you do. Leave room. Okay? Leave room. Look, the White House can roll back these tariffs if they wanted to, but right now they are more intent on rolling back the prices of stocks. Everybody. Tonight I'm king of a series dedicated to finding opportunities to sell. At first, after Costco strong quarter, I'm shopping for the reasons behind the wholesale chains pullback anchor on Holy and Decker stay on track despite these headwinds. I'm running through the pair's latest numbers and later on, I'm checking in on CrowdStrike to get a better sense of the cyber stocks road ahead now that it's been absolutely crushed, spindle and mutilated. So stay with Kramer.

[Announcer]

Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

[Sponsor]

Don'T just ride the index. Seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Cap Core ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC this is a message from sponsor Intuit TurboTax Taxis was getting frustrated by your forms. NowTaxes is uploading your forms with a snap and a TurboTax expert will do.

[Jim Cramer]

Your taxes for you.

[Sponsor]

One who's backed by the latest tech which cross checks millions of data points for absolute accuracy. All of which makes it easy for you to get the most money back guaranteed. Get an Expert now on TurboTax.com, only available with TurboTax Live full service. See guarantee [e-mail] guarantees is it time.

To reimagine your future? The right business skills may make a difference in your career at Capella At Kelly University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at capella. Edu.

[Jim Cramer]

After another hideous day in Wake up last week shellacking, it's official we've got a real sell off on our hands. Thanks to softer economic data, the chaotic rollout of President Trump's trade agenda, stocks are coming down across the board. So what are we supposed to do about it? First, I don't know exactly when this pullback will end. Looking at the S and P short range oscillator, which I follow religiously, the market's finally getting ever so. But believe it or not, it isn't super oversold yet. So the backdrop is really ugly. Here's what I can tell you. For much of the past few years, as the market turned higher, it often felt like you never got a chance to buy the best stocks on weakness. Now you're getting that opportunity because the sell off has been indiscriminate, really incredibly discriminate, taking down the good with the bad, with the exception of Johnson Johnson, a couple of hospital chains and utilities. And I don't dismiss the landmines. Just tonight we heard from Delta that both corporate and consumer customers are weak and it can't come anywhere near the estimates the analysts were looking for. Real big negative for tomorrow. That's why all this week though, I want to highlight some of these terrific babies that have been thrown out with the bathwater. Starting right now with one of my absolute favorites that I think you can buy on the way down. In other words, I didn't say it's bottom buy on the way down. And the stock is Costco. Now here's a stock that fell 6% on Friday in response to what I thought was a real solid quarter at these levels. It's down more than 13% from its all time highs set a few weeks ago. Usually don't get it that low. My book is in Costco is real simple. This stock that regularly sells off in good quarters which happened right the quarter they reported last Thursday was just fine. You have to buy it into weakness afterwards because historically it almost always bounces back. Almost. I know that may not be enough for you. It's not for me to start. Sure Costco reported a revenue beat paired with an earnings miss. But when you drill down, there was a lot to like here. They had 6.8% same store sales growth for the reported quarter. Wall street was only looking for 6.4. Like many other retailers, February was worse than January, but only by a percentage point. That's much better. Now about those pesky mis lines, Costco's operating margin came in a TAD Light. Earnings of $4.02 came in $0.09 short of what the analysts were expecting. But there were so many extenuating circumstances. I mean it's crazy to regard as a miss. First, Costco said adverse currency fluctuations caused a 13 cent hit to the earnings. They've done a lot of work opening stores overseas. That accounts for the entirety of the shortfall. Second, looking at the year over year comparisons, last year the company got a $0.21 one time tax benefit related to a special dividend when you backed out that the earnings would have been up 8.4% year over year. So I completely dismiss the so called miss so hopefully you feel a bit more comfortable with the seemingly mixed headline numbers if you're hearing the full context. But I always tell you that the best information comes from the conference call. And that was certainly true for this time. Costco, really people both listen to management. I get that they really haven't. Rather than selling the stock immediately because of a single headline number in a very nervous market, here's what they would have heard. They would have heard incredibly positive things. Remember one of the big market wide worries right now is that consumer confidence is plummeting. That's why the consumer discretionary sector has been leading the way lower these past few weeks. That's what Delta cited this too. And the consumer discretionary select sector SPDR fund the X Y now up almost 18% from its mid December highs. And many previously hot groups like travel and the retailers are really getting hit hard. But when Costco management talked about the behavior of their shoppers last Thursday, they pretty much all positive things to say. CFO Gary Miller chimp saying we're not really seeing any change in what we've seen around our numbers over the last really a few quarters. Not bad. Millichip went on to explain the Costco shoppers are quote still showing that willingness to spend, but they're being very choiceful where they spend spending their dollars. And quote, I don't like that word choice. Well that's something by the way that I don't think the former CFO Richard Galante would ever say. But whatever. There's no accounting for taste. Management expects that to continue. And Millship even said that consumers might, quote even become more choiceful as to the impact of some return of inflation. The potential impact of tariffs could flow through as well, end quote. He also mentioned the Costco members continue to spend, quote a little more on food at home versus food away from home overall, end quote. Now that may not sound all that encouraging, but when the consumer gets picky about value, well that benefits Costco because this company offers the best value in the industry. If people buy more of their cheap Kirkland Signature house brand, they make more money because the margins on private label products are huge. Same goes for food at home versus food away from home. Good for Costco. Plus even in non food categories, Costco is still generally doing very well. Sure some categories are just okay like consumer electronics or apparel, which Miller Chip described as flatter. But overall Costco is winning here by focusing on a strategy of quote bringing in great items at great quality and great value, end quote. And by offering newness with things like gold. You can't even it's so popular to buy the gold we buy, everybody buy tries to buy it. It just goes in and out like that. Large electronics like gigantic TVs and even quirky big ticket items like Stern pinball machines, all of which did really well this quarter. Overall Costco's non food category actually led the way this quarter. Management said non food same store sales growth was in the mid teens. Not bad for the top discretionary spending environment. Of course there's another big concern about all retailers here, the tariffs. But I was encouraged by what management had to say on that front too. First, CEO Ron Backrest disclosed, quote, about a third of our sales in the US are imported from other countries and less than half of those are items coming from China, Mexico and Canada, end quote. That puts a fence around the company's exposure to tariffs and it's not terrible. More importantly, backers explained that with Costco's quote treasure hunt and quote shopping experience, the company can be flexible with its assortment and if necessary replace heavily tariff items with something similar that is much less tariff exposure. Management also stresses extremely close relationship with suppliers to the Costco relationship matters a great deal, meaning their suppliers are more likely to eat the cost of their tariffs themselves in order to maintain the business with Costco. In the end, I think Costco is starting it's really getting hit simply because it's a high multiple stock and a suddenly very risk averse market that sells down the high multiple stocks. And then what had been a very tame drawdown accelerated last Friday after the company turned in a result that featured earnings miss even if the quarter was pretty strong when you check under the hood. Honestly, I feel much better about the Costco story after what we heard last week, not worse. Which is why I'd like to start looking at the more than 13% pullback as a buying opportunity because Cost is still a high multiple stock trading at north of 50 times this year's earnings estimates, the stock could keep trading poorly as long as the market's nervous and in sell off mode. We own a ton for this charitable trust. We have no interest in selling whatsoever we're looking to buy. It's well above our basis. They'll come a time. I'm going to talk about it at our Thursday meeting. It's a noon meeting, but the bottom line? With a strong quarter in our pocket and such positive commentary from management on some of the biggest risks of the moment, I'd be looking to buy more Costco shares into any additional weakness. This has always been one that bottoms very quickly, not run from a stock that's been such a huge long term winner to the charitable trust. We have monies back at good rate.

[Announcer]

Coming up as the market sell off continues. Is it time to run and buy shoe names like Deckers and On Holding? Kramer's giving you his take next.

[Sponsor]

Don't just ride the index, seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC the Fidelity Enhanced Large Cap Core ETF part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC.

At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn [e-mail].

[Jim Cramer]

With the market in deep sell off mode these past couple of weeks, I'm trying to be constructive about the current month. That's the way I play it. Okay? I am, as I said earlier, historical. Not historical. I'm calling a bottom, no, but because I do like to start buying while stocks are falling to get the best prices then once we get a bottom I've got my position in. I can't tell you when the selling land, but I can say that when everything comes down, the good and the bad, well you tend to get some buying opportunities. You might not want to join the sellers. Look, being constructive has always done well for me. It's not going to change this time. That's why I'm spending all week highlighting the best bargains that been created by this market wide meltdown. Earlier I mentioned Costco which reported quarter that many people didn't like but that's ridiculous. I I know Costco better than the sellers, believe me and even though there was lot to like under the hood, people were worried about some number that frankly was not bad. Now I've got another one really really like this one. Spent some time with the company just last week. I got to tell you this is a solid one. It's the Swiss footwear company on hold now. This is one of my favorite IPOs for the past few years is disrupted in the footwear space in particular that's displaced Nike as the top brand for many consumers. Stocks been a huge winner over the past few years or so, climbing from a low of 15 late 2022 to an all time high of 64 and change in January. Oh, but on holding topped out. If you're saying that high in late January and it's now pulled back to $44 and change today. Opportunity Initially there wasn't a clear catalyst for the selling other than the fact that it's a richly bad momentum stock at a time when the markets turned against that whole group. By the time the company was set to report earnings last Tuesday morning, the stock had already sunk to the high 40s. But the quarter was just it was excellent. I went through it with the company. I really like it. 11 delivered a bottom a big top line and a bottom line beat accelerating revenue growth. We call that ARG around here and real strength outside of North America. Its gross margin expanded by 170 basis points to 62.1, beating a 61.7% number Wall street was looking for. That translated into pretty substantial earnings beat. On also issued solid guidance for the year ahead. Companies said to expect 27% constant currency sales growth this year, essentially in line with the consensus estimate. The margin guidance was also basically in line. Beyond the numbers, there was a lot to like to first. While ON sales through wholesale channels were more than solid up 29.1%, the direct to consumer DC business was truly excellent, sales up 43.4%. Direct consumer represented just over 40% of total revenues last year, but was almost half of the company's revenue in the fourth quarter. Specifically, with a much higher growth rate, it's looking like Direct to Consumer will soon surpass wholesale as the primary channel for one's products. That's a very positive development because there are no middlemen taking a cut when you sell your products on your own website or in company owned stores. Hey, by the way, Nike have a side direct Consumer to the detriment of traditional retailers like Foot Locker and ended up being disastrous for the brick and mortar and the DTC didn't do as well. One has none of those problems. I want to make that really clear because that's a big difference between Nike and on. I also thought on management had some really thoughtful things to say about the company's brand strategy. In the conference call they explained that they manage the Brandon brand in three distinct ways. This was so smart. Sometimes you just get blown away by how smart management store first through premium product brands with some of their top products like the CloudMonster, Cloud Surfer and Cloud Runner now becoming stronger brands in their own right. Second through strategic partnerships, whether that's the long term relationship with tennis great Roger Federer or more recently was India, which management said has done very very well through what they call high impact presence in global markets and quote should have said quote meaning big swings in marketing in major global moments. And here I'm thinking about the Paris Olympics, more recent super bowl ad pitching Roger Federer with Elmo from Sesame Street. I thought it was a little goofy frankly, but on holding seems very pleased with the results. So who am I to say that probably right and they did say that quote literally put the name of our brand into everyone's mouth and on America's most watched morning show. End quote. It's tough to argue with that right? One boasted significant growth in brand awareness last year, calling out the fact that amongst Gen Z consumers in particular, brand awareness in the US more than doubled a single year. Brand awareness is what you have to look at when you don't have a lot of sales yet. Listen, unlike with Costco, I don't feel much of a need to convince you the on quarter was a good one. I was blown away by it. That's because at least initially the market really liked it. Last Tuesday the stock jumped 5.8% and then tacked on another 3.7 on Wednesday. But the gains were short lived as the market wide sell off picked up steam into the end of last week to the point where on holdings has now given up all of the post quarter gains and then some. The stock's now down to its lowest level since mid to late August. Now that strikes me as an excellent candidate for buying into we just especially if you haven't had a chance to pick some up during the two year plus rally. You're finally getting a sale on On Holdings, I have to tell you. What are you waiting for? By the way, while we're on the subject of footwear, I think you're getting an incredible bargain in Deckers brands. That's the parent company of Uggs and the white hot Hoka athletic shoes. I covered Deckers shortly after it reported in early February. Wall street didn't like that one at all. Stock fell 20% in a single day for the quarter, even though Deckers delivered a huge top and bottom line beat. Management issued pretty weak guidance for the current quarter in part because of some quirky inventory issues. Basically they sold too many Uggs during the holidays and didn't have enough product for some top top styles entering to the new year. High quality problem, I say Holco is also merely in line with expectations. Fourth Quarter after surprising the upside so many times in previous quarters, that was a bummer. These seem like silly reason to sell a stock down 20% in a single session. Which is what I told you a month ago. Back then I said you were getting a good buying opportunity, but you might get an even better one if you waited for the stock to keep coming down. Full disclosure. Deckers has been awful since then, falling lower and lower to the point where it's now down over 100 points or more than 45% since its last earnings report. The price earnings multiple has fallen from 30 to 20 times earnings. That seems really excessive to me. So let's consider Deckers another high quality company that may be worth buying. Although I deeply prefer on. Okay, deeply, here's the bottom line. All throughout the week I'm highlighting stocks that I think been hit really hard in the solve that you can buy into gradually not calling the bottom. I think on holding will be a terrific stock to own given the just report a great quarter. As for Deckers, they issue terrible guidance. A month ago the stock was destroyed. Now it's come down to levels where maybe it's too simply just to seem to say annihilated to ignore. But I also again, I like Costco first and then I like on and then maybe maybe Deckers. Let's go to Carmen in Connecticut. Carmen.

[Caller]

Hi Jim. Thank you so much for taking my call.

[Jim Cramer]

Of course.

[Caller]

I bought some Tapestry stock last week. I knew that in 2017 it was the Coach brand and it had changed to Tapestry, so I bought some. Since I bought it, it's really taken a hit and it's had quite a drop and I'm not sure whether I should hold on to it or just sell it. I really don't know what to do.

[Jim Cramer]

Okay, Carmen, I'm going to be tough on this one. My favorite retailer is Ralph Lauren and that stock collapsed today. Collapse. So I don't think Tapestry or PVH for that matter can possibly be better than Ralph Lauren. So all I can tell you is that in this market or in this tape, as we say, Tapestry is going lower. Hate to always tell people that I don't like people to sell, but I gotta, you know, look, this is not buy and hold here. It's buying homework. Craig in California. Craig.

[Caller]

Booyah. Ski daddy. Jimmy Chill and willing to do some chilling.

[Jim Cramer]

You bet I am. I like that. I'm seeing some green on the wall too. I'm just looking at the green. You'll see me tomorrow. No, no, no, it's not so bad. It's not so bad. I got. Sorry, I got Pepsi up 0.69% here. Hey, look at this. Mondelez is up a percent. I guess they like the Toblerone, huh buddy? Toblerone. My wife hits me with the Toblerone when I get out of the way, when I get out of line, boom, boom, boom.

[Caller]

Hey, yeah, Jim, looking at the. Even with the recent pullback, it seems like everything's a lot of stuff's up there. In their 52 week or maybe all time highs, it's right really difficult to find anything viable. So I've been looking for some viable pullbacks. I might have had one here.

[Jim Cramer]

All right.

[Caller]

Yeah. This stock trades at a real cheap multiple about 6 times far below its 10 year average PE. Juicy dividend. Great recurring year over year revenue growth margins are way up. Net income way up. Growing a three year revenue CAGR around 30%. Despite this, the stock is down about close to 20% over a month. The intrinsic value is around 106. I think it's a buy right here, at least to a hundred. Maybe you can tell me what you think on this stock and will it give me grade A extra large exceptional gains. Cal Maine.

[Jim Cramer]

Cal Maine. Okay, Cal Maine. All right, so Cal Maine. The reason why it's going down is because people feel this shortage is going to end. When the shortage is going in, the stock is going to go lower. I totally agree with you on everything. But I do. When I see a Stock With a 4 or 5 pe, that means the numbers are going lower and therefore it's probably not as cheap as you think. And that's the way I look at calming. Okay? Now look, there's weakness all over the place right now. But I have to, it's my job to be constructive, not to be historical. And I'm seeing some things in the footwear space that I really like and my favorite is on holding. I think they put together some phenomenal shoes. A great brand and they're really coming after Nike. All right, much more hit, including my deep dive on another one that's just given up the ghost. This is crowdstrike. I know it's a rich stock. I don't care because this is cyber security and this stock is just completely crushed. Then after daily today, how do you make sense of the road ahead? Don't miss my look into the market's rearview mirror and of course oiler calls rapid fire and lightning out. And I gotta tell you I'm gonna try to be constructive in that too. Stay with crap. When the market rolls over like this, especially the Nasdaq. Sellers always end up throwing the proverbial baby out with a bathwater. That's why all week I'm trying to highlight my favorite stocks that you can now buy at a huge discount. Not all at once. I don't say that they're not done going down. No bottom calling here. Just trying to be constructive. Let's talk about a stock like Crowdstrike. That's the heavy hitter in the cybersecurity space. We want it for the child trust. The end of the day, all the worries about President Trump's chaotic trade policy or slowing economy or the possible weakness of the data center have almost nothing to do with cybersecurity. Hardly a day goes by without some new data breach that cost companies a fortune. Hence why they're willing to pay up for the best cybersecurity. The best cybersecurity is CrowdStrike. Palo Alto is real good too. The threat environment isn't going to magically improve anytime soon. Last week Crowdstrike released its annual threat report and as always it was a somber read. Average breakout time, meaning how long it takes a bad actor to move across your network, was down to an all time low of 48 minutes with the fastest time being just 51 seconds. Voice phishing scams saw an explosion 442% growth between the first and second half of 2024. State sponsored cyber operations kept ramping up their activity. Crowdstrike called out China Nexus activity as seeing 150% growth from the prior year with the Chinese targeting some industries even more aggressively. Oh, and don't forget the Russians, the Iranians, the North Korea put all together. You can understand why Crowdstrike roared to an all time high of 455 and change on February 19, an impressive 127% run from its lows last summer. Since then though, the stock's been eviscerated. Sell, sell, sell. Being plunging from the low 300 from the 400 for 243140 to the low 3 hundreds. We have been a seller of the stock in the 400 for the chapel Trust. Today we bought back the stock we sold. Now I wasn't too surprised to see some profit taking ahead of the quarter last week despite CEO George Kurtz stellar record of beating earnings estimates. Given that so many growth stocks are selling off after Crowdstroke report on Tuesday night the stock finished the stay down 6%. But since then it's fallen an additional 15%. It's basically back to where it was Trading last summer at the close of the day, the company caused a huge network outage. I mean that's ridiculous. Didn't lose any clients. So how much of this is CrowdStrike specific and how much is the state of the market? Okay, some analysts quibble with CrowdStrike's earnings guidance, but only that only came in weaker than expected because Bantro's forecasting a higher tax rate to provide consistency across reporting periods. Without the change to expected taxes, the earnings guidance would have been perfectly in line with Wall Street's expectations. Some people have gotten worried about CrowdStrike's margins due to the company's investments. However, this company already seeing a huge payoff from AI. It helps them catch hackers and it's bringing in lots of business. When last conference call management called out strong AI adoption among other owners employees leading it quote to time savings per employee of over one full workday a month, equating to more than 24,000 workweek saved if annualized across our entire workforce. End quote. So CrowdStrike's not wasting money on AI. These are smart investments. Plus I think it's crazy to sell CrowdStrike on seemingly soft guidance when these guys have a perfect knock on wood. Well, kind of. Okay, track record of beating estimates CEO Kurtz George Kurtz is all about you Pop. Which is under promise and over deliver. So don't let all the concerns about the guidance and fears surrounding tariffs and general uncertainty distract you from the fact that CrowdStrikes once again reported an outstanding quarter. They beat estimates for both revenue and earnings per share delivered free cash flow over $1 billion for the year for the first time in company history, marking a record 27% of revenues. Look, this is not to mention the CrowdStrike became the first independent software vendor to reach 1 billion in sales on the Amazon Web Services marketplace in a single year. Plus, when George Kurtz came on the show last week, he told us that he and his team remain confident about their long term goal of $10 billion in annual recurring revenue as there are still several tailwinds the company stands to benefit from now. One of these consolidation. As the companies realize the importance of cybersecurity, they're eager to right size with a single vendor that can help them to protect their operations. They want a one stop shop like CrowdStrike. Rather than putting together something piecemeal as evidence that this this tailwind is gaining steam. Company called out a seven figure contract win with a large state university. Was looking to consolidate their identity protection needs. George spent a lot of time on the last conference call talking about the importance of his exposure management business, something that hadn't been discussed in the past, he explained how easy it was to add on his Falcon Flex offerings called out big wins this business has had already, including with a large radio station, a multinational shipping line and a large Asia Pacific health care provider. While government spending has been a tailwind for the cybersecurity business for quite some time, there's no doubt that the stock's been hurt by the Trump administration's big push for cost cutting, but I don't think they're going to cut cybersecurity spending. Do yourself a favor, read the last conference call George Kurtz talked about, quote an adversary stockpiling akin to the Cold War era, end quote. When it comes to the geopolitical arms race, as George puts it, quote, AI in the hands of more adversaries intensifies the market need for crowdstrike. End quote. When you read his additional commentary on the democratization of destruction and how tools like Deep Seek are making adversarial easier and cheaper to develop against you, you might be willing to volunteer more taxes if it means our country has what it needs to stay safe. Besides, Elon Musk and his guys at DOGE perfectly understand why we need this stuff. They're tech guys. This is the wheelhouse. Government's really looking to save money on cybersecurity. What a better way to do it than consolidating different vendors. Besides what president? What President Trump wants to be responsible for losing? Who wants to be? Does he want to be responsible for losing a cold war? I don't think Trump wants that. Talk about a buzzword salad. In short, I still like CrowdStrike very much, which is why we use today's weakness to buy more for the child trust as I see it comes as strong as ever and I look forward to hearing more from Kurtz as he continues to drive the strength in his business with the second half acceleration net new annual recurring revenue right ahead of us. The bottom line. While I don't know what the next few weeks will bring for the market as whole or crowdstrike in particular, I feel confident in giving this company's long term strategy my Good Housekeeping seal of approval. Given that the stocks now trading at prices not too much higher than the day that disastrous outage last summer, despite the continued strengthen the business since then, I think right now you are getting a terrific entry point. Leave room. This is a real bad market. Mid money's back in for me.

[Announcer]

Coming up, Kramer takes your Calls and the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next. It is time. Check out the wide RAM credit for Rap Crown Floor Tim. My name is Hakata. Bye bye bye Seltzer soldiers good. Of course, doctor. Bye. My pissed effort was great. We were playing some and then the lightning round is over. Are you ready to keep that time the lightning round charisma. Let's start with Mike in New York. Mike.

[Narrator]

Booyah Jimmy.

[Caller]

This is Mike from Garden City, New York.

[Jim Cramer]

Excellent. What's happening? I'm a long time viewer and a.

[Caller]

First time caller caller and I want.

[Jim Cramer]

To thank you for all your hard.

[Caller]

Work and help helping us.

[Jim Cramer]

Thank you.

[Caller]

It's greatly appreciated.

[Jim Cramer]

Thank you. Really appreciate that. How can I help you, Jimmy? I'm in the house of pain like.

[Caller]

All of us right now with the.

[Jim Cramer]

Recent downturn in the market. What?

[Caller]

I. I bought a tech stock a month ago and I doubled up last.

[Jim Cramer]

Week right before earnings. And I am really in the house of pain. What do you think? Thoughts on Marvell Tech, Jimmy? Marvell Tech, That's Matt Murphy. I know. It's a wild overreaction to that quarter. It's now below where it was when it didn't even have it with AI. It's getting a little crazy out there. I think that Matt is a good company. I would start buying here if I didn't own any. So all I can do is council. Stay the course. I'm sorry. I wish I had more but I would be a buyer, not a seller. How about that Joey in Arizona. Joey.

[Caller]

Hey, Jim Bob, Joey here. Got a question about Verona pharmaceutical. They have 400 million in financing set up. They've gone up 300% since June in their Pafuda date. And they're going to get bought out by a big pharmaceutical company.

[Jim Cramer]

We don't know. And you know what? This is one where I don't want to tempt feeders. No revenues to speak of. It's kind of a very dicey stock. It's been supported by a couple of firms and I think that's terrific. I would sell half and let the other half run. I just cannot recommend a risky stock right here. Let's go to Sean in California. Sean, hello, Mr. Kramer.

[Caller]

Sean here from Northern California.

[Jim Cramer]

Hey man, what's going on?

[Caller]

Going to jump away from Amos Vineyards and also a hop skip and a jump away from Keysight Technologies. Your thoughts please?

[Jim Cramer]

Keysight just hit. Yeah, anything that's electronic measurement. I love. I also love Agilent. I think this company's doing incredibly well. And its stock is getting hit, being thrown the baby with the bathwater. Good stock. Let's go to Amelia in New York. Amelia, Hi. Hi. Yeah, go ahead. You're up.

[Caller]

Okay.

[Jim Cramer]

It's Jim.

[Caller]

I'm on now.

[Jim Cramer]

Yeah, you're, you're talking to Jim. How you doing?

[Caller]

Hi. I appreciate your call. I talk to you, I listen to you in the morning, I listen to you at night. And I appreciate all your advice. I'm retired and. Okay. I'm asking about Merck.

[Jim Cramer]

Okay. Merck is too cheap. I mean it's got a 3.4% yield. Rob Davis is doing very well. It's really. He's made a couple acquisitions I think they're gonna work out. And everyone's just so scared of the key Twitter of platen roll off. And that's not anywhere near. I think you buy the stock of Merck. And that, ladies and gentlemen concludes it of the Lightning Round.

[Announcer]

The Lightning Round is sponsored by Charles Schwab. Coming up, could today's sell off mean a buying opportunity? Kramer is using his years of expertise to help you make sense of this market and how you should position for the road ahead. Next tomorrow, kick off the trading day with Squawk on the street live from post 9 at the NYSE.

[Jim Cramer]

I don't need an excuse to sell the Mag 7. They're everywhere. That's another mealius note today. Yeah, that PE got to 15 and then what happened? Yeah, I mean, look, I. All I know is that this is a decline moment and a lot of panic and no one ever made any money panicking.

[Announcer]

It all starts at 9am Eastern.

[Jim Cramer]

Sure, you can get out, but can you get back in? Selling everything right now feels great. We know that President Trump is now hanging with the bears and he first wanted bulls. As he himself said, you can't really watch the stock market. Stock markets, the problems, the rich and they don't matter as long as they can take it. And that's the zeitgeist from the Walmart White House where Trump's giving us everyday lower prices for stocks. The Fed won't hold too much inflation. We used to talk about how Powell and Trump would be puts on the market mean they represent a floor. You weren't going to go through the floor. Nobody's talking about a put anymore. So of course you want to sell. It relieves the pain immediately. You're no longer burdened. You can go about your life again without worrying about your portfolio. Bye bye. Bye. Today's a good read on what's happening. People are capitulating because they want to get rid of the pain and they don't want to lose the gain. But you heard what I pressed. See, there's just one problem. How do you get back in? Maybe it should be doing buying right now. I know that feels like a silly question daily today where the average being killed. We need to worry about capital preservation, not capital appreciation. But I'm somewhat of a market historian. Charting all along the way since 1979, I've spent years questioning why the market hasn't created more millionaires. The average has been stupendous since I got in the business. Talking 42,000 points in the Dow. But the individual stocks, they've been far more extraordinary. To get those gains though, you have to stay the course. As Ken Langone told us last week, the big gains occur only about eight days a year. And that's the problem. The whole day was obvious that only consumer products and health care stocks make you money. There haven't been many days like this. So people sell their losers out of fear. So out goes Apple or Microsoft and Netflix and matter why not? You don't want to give up the gain. And there is no Magnificent Seven anymore. Scrap it right now. Okay, I am banning the term from the show as of this evening. But think of it like this. Days like today are what kept you out of the big gains of the same stocks. Most people never get back. They don't buy, they forget or they think they can't 10% fade or the markets too brutal so they stay away and miss these huge gains that would have made them millionaires. It's why you should be thinking of buying. The great companies are not selling them to not get good merchandise as it starts being really cheap. As a failure of imagination to not have held them all the way could be a failure of recognition. Recognition that these things do get better and that management are not static. They do things to make their companies better. So if you sell here instead of buy, you're getting out when maybe you should start thinking about getting in. Sure, sometimes these sell offs are really right. Back on October 6, 2008 I went on Today show and said that if you needed money in the next five years, you should take it out of the market. S and P was just under 1100. It was an excellent call. Next you know is the 666. A few months that's where it bottomed. Then the late Marc Haynes, a friend of mine, host of Squawk on the street at the time, made a call exactly 16 years ago to buy the market. We call it the Hanes bottom around here because it was perfect. The anniversary is the bottom today. I spoke to Mark that day. He said that I'd been bearish and that I'd been correct, but it was time to go positive. I argue with him. My call been so right I can't walk away from the perfect call. He said it wasn't terrific until you close it out. And I was wrong to stay negative. I didn't like to argue with Mark. I folded and went positive six six. I got a lot of people out before the market crater, but I never heard a Solar bought the stocks back on my mimicking the Haynes bottom S and p is now 5600. They missed a huge number of points. They avoided the big loss and also avoided the colossal gain. It was about as perfect a call as you could possibly make. But when I look back, sometimes I wish I said nothing because so few people got back in when the market was down 40%. Even then it was right to stay the course. So in honor of the Haynes bottom, remember, even when it's trouble out there and it is terrible, stocks do bottom and you have to do a little buying. The lack of clairvoyance of Haynes, well, I plead guilty to that. But we know that you have to do some buying because, well, it's been right since 1979. So I have to ask you something. Are you willing to bet that this time it's wrong? Alex says, always a bull market somewhere. I promise I find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow.

[Sponsor]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer.com @capella university, learning.

The right skills could make a difference. That's why our business programs teach you relevant skills you can take from the courseroom to the workplace. A different future is closer than you think with Capella University. Learn more at Capella, Eduardo.