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.

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