Mad Money w/ Jim Cramer 3/11/26

Summary

Mad Money w/ Jim Cramer – March 11, 2026 Episode Summary

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Episode Overview

In this episode of Mad Money, Jim Cramer dives into the impact of ongoing geopolitical conflict, with the Iran war at the center, on the US stock market and investing landscape. He discusses the ripple effects of high oil prices, possible government strategies, and actionable stock market themes depending on the war’s outcome. The episode features in-depth analysis of Oracle’s surprising quarter, evaluations of Power Solutions International and Mattel, and the ever-popular Lightning Round with Cramer’s rapid-fire reactions to listener stock questions. Cramer wraps by addressing labor reductions in tech due to AI, using Jack Dorsey’s bold moves at Block as a springboard for wider tech analysis.

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Key Discussion Points & Insights

1. Geopolitical Uncertainty and Market Impact

• Main Point: The war involving Iran cannot be "ring fenced" or isolated from global markets, especially oil and stocks.
• Cramer’s Take: Investors can't ignore the war and its effects on oil; the market is holding up better than expected due to hope for a quick resolution.
• Stock Indices Recap: Oil up 5% today, 50% YTD; Dow down 289 points; S&P -0.08%; Nasdaq +0.08% ([01:23])
• Historical Comparison: Cramer draws parallels to Nixon’s “Operation Linebacker” during the Vietnam War and weighs whether a similar strategy could bring about ceasefire and market relief now.

"The war cannot be ring fenced no matter what we do... Without a real exit strategy, we could blow through 20 days worth of oil from our strategic reserves and still be stuck in an asymmetrical standoff." – Jim Cramer, [01:23]

2. What To Buy in a Volatile Market — Investable Themes

Cramer identifies three themes for potential investment, focusing on options to consider "on the way down" if oil spikes due to the conflict.

• Data Centers & AI Infrastructure

  • Oracle’s strong quarter exemplifies the robust demand for data center buildout.
  • Nvidia’s GTC event & $2B investment in Nebulous highlights the theme's strength.
  • Quote: “You have to like the data center theme... Oracle, the data center champ last night, reported fantastic numbers.” ([04:54])

• Memory Shortage / Semiconductor Cycle

  • Memory supply tight; names on watch for buying if oil shocks the market: Western Digital, Seagate, Sanders, Micron, Lam Research, KLA, Applied Materials.

• ‘Trade Downers’ – Consumer Defensive Retailers

  • High oil hurts lower-income consumers; strength seen in discounters: Burlington, Ross Stores, TJX, Dollar Tree, Dollar General.
  • Special Mention: Five Below—serves value-conscious consumers across all groups.

“It’s not enough to minimize it. Here’s the bottom line: If Trump channels Kissinger and does something to push Iran to negotiations, well, we could embrace these three themes sooner than you think.” – Jim Cramer, [07:50]

3. Lightning Round Highlights ([08:48]–[12:32], [38:19]–[43:05])

Cramer takes calls from listeners, briskly sharing opinions on individual stocks:

• Eli Lilly (LLY): Likes the long-term, not selling. ([09:12])
  • “We’re holding on for the Chapel Trust. We think that Eli is one of our favorite stocks. We’re not budging.” – JC, [09:12]
• Meta (META): Sees potential for an AI-driven restructuring; speculates Zuck may follow Dorsey’s lead. ([10:29])
• Victoria’s Secret: Positive on CEO/CFO revamp and Q4, sees continued momentum for 2026. ([11:36])
• Other standouts: Carvana (hold despite decline), Dover (buy on a pullback), Devon Energy (buy if it dips), Nvidia (likes the stock, “ought to split”), Mattel (bullish, see below).

4. Oracle’s Blowout Quarter ([14:27]–[20:57])

• Surprise Beat: Oracle shocked with 22% revenue growth and 21% earnings growth.
• Concerns Eased: Addressed fears about debt for data centers; most contracts pre-funded by customers.
• OpenAI Boost: Customer stability, massive private fundraising lessens risk.
• Market Reaction: Stock up 9% despite prior negative sentiment; Cramer calls the bear thesis “pretty foolish.”

"A win is a win, and this latest quarter was a big win for Oracle, a stock that's been synonymous with AI data center worries since last fall." – Jim Cramer, [20:35]

5. Power Solutions International (PSIX) Deep Dive ([22:50]–[30:10])

• Background: Small-cap backup generator maker, massive run from $2 to $100+ on data center demand.
• Recent Pullback: 29% plunge after earnings due to margin shrink and no formal guidance—but underlying demand story remains strong.
• Valuation: “A terrific entry point... trading right around 10 times this year’s earnings estimate.”

“When you compare that to something like Caterpillar at 31 times, Cummins at 21 times, this looks like a steal.” – Jim Cramer, [27:45]

6. Mattel Interview with CEO Ynon Kreiz ([31:34]–[37:42])

• 2026—Investment Year: Mattel is investing $150M in growth, two major movie releases (incl. Masters of the Universe), digital games expansion with Mattel163.
• Stock Buybacks: Significant buybacks (“18% of the float”) show management confidence.
• Resilience: Strong balance sheet, broad IP portfolio, mitigated tariff impacts.

“We believe in the stock; it’s undervalued and of course we put our money where we believe we can see incredible value.” – Ynon Kreiz, [33:41]

7. AI Job “Pocalypse” & Industry Layoffs ([43:32]–[47:22])

• Jack Dorsey’s Move at Block: Workforce cut in half, justified by AI productivity; stock up sharply.
• Cramer’s Macro Take: Wonders if Meta, Amazon, Alphabet, and Microsoft will follow suit.
• Productivity Boom vs. Human Cost: Hopes workers find new opportunities but concludes big tech is overstaffed if current AI promises deliver.

“If Block is any guide, it would be terrific for all of their stocks if they adopted the AI they keep talking about. But... whether these companies have a choice.” – Jim Cramer, [44:49]

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Notable Quotes & Memorable Moments

• On Oil & War:
  “There’s nothing that can stop oil from eventually soaring to $120 and beyond; that will bust any ring fence. All bullish bets would be off.” – Jim Cramer, [07:03]

• On Oracle:
  “The wrath of founder, chairman and Chief Technical Officer Larry Ellison, which, trust me, is a lot worse than even the wrath of Khan.” – [20:51]

• On Mattel's Media Push:
  “Masters of the Universe... is going to be a big event. We expect a lot from this picture.” – Ynon Kreiz, [32:33]

• On AI-driven Layoffs:
  “[Dorsey] would cut his workforce almost in half... Who am I to argue?!” – Jim Cramer, [43:32]

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Important Segment Timestamps

• [01:23] – Opening theme; market/war analysis; investment themes
• [08:48] – Lightning Round I (Eli Lilly, Meta, Victoria’s Secret)
• [14:27] – Oracle’s quarterly analysis
• [22:50] – Power Solutions International deep dive
• [28:49] – Calls: Carvana, Dover
• [31:34] – Exclusive interview: Mattel CEO Ynon Kreiz
• [38:19] – Lightning Round II (MongoDB, Form Factor, Devon, Nvidia, more)
• [43:32] – Segment on AI job cuts, Dorsey/Block, implications for big tech

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Summary

Jim Cramer’s March 11, 2026 episode was packed with macroeconomic analysis, war-influenced strategy, sectoral themes to watch, deep dives on dominant and under-the-radar stocks, and reflection on the future of work in an AI-centric world. Despite the uncertain environment, Cramer offers listeners actionable frameworks, historic parallels, and his trademark rapid-fire wisdom, all underscored by a tone blending urgency, pragmatism, and that unmistakable Cramer flair.

Transcript

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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other people, my friends, I'm just trying to make you a little bit of money here. My job is not just to entertain, but also to educate, to teach. Call me at 1-800-743- CNBC. Tweet me jim Cramer. The war cannot be ring fenced no matter what we do. I don't want to sugarcoat it. We can't avoid this issue. People are trying to dismiss the impact of the war, or they're trying to see through it, see past it until it's over. They're saying that we've got 20 days of excess oil thanks to the release of global strategic petroleum reserves, including ours as of this evening. And by the time they run out, well, the war will be over. So you better start buying stocks right now because you got to be in before President Trump wraps everything up. Now. Maybe that's why we aren't down more. Despite oil being up 5% today and 50% for the year with the Dow sinking only 289 points. S&P declining 0.08%. Nasdaq actually inching up 0.08%. We are still very close to our highs. Why can't we cordon off Iran and just embrace good ideas? Simple. Without a real exit strategy, we could blow through 20 days worth of oil from our strategic reserves and still be stuck in an asymmetrical standoff with the Iranians. I have to admit to being a little thrown by Secretary of War Hexis yesterday when he talked about sending over, quote, the most fighters, the most bombers, the most strikes, end quote, unquote. At the risk of Embarking on a bit of a history lesson. Hates. This language mimicked President Nixon's rhetoric when at the end of 1972, he unleashed what was known as Operation linebacker to the 11 days of bombing that brought the recalcitrant North Vietnamese to the peace table out of pure fear that we would never stop. That operation was the largest strike of heavy bombers since World War II. We sent 200 B52s, 700 sorties. We, we knocked out military installations, but also rail yards, power plants, communication centers. In both the capital, Hanoi and Haiphong, There was a 24 hour break for Christmas. The North Vietnamese feared that the bombing would never end. I think at that point they thought that we were either too ruthless or too crazy to reckon with. So they agreed to start the peace process. Amazing. Yes, they ultimately prevailed because the American public got tired of our involvement years later. But purely in terms of forcing negotiation, Nixon's strategy really worked. There was just no follow through on the American side. After yesterday's big talk, I thought Hegseth was starting a similar campaign, but I didn't even see or hear about the damage from the most fighters, the most bombers, the most strikes. Did you? So I sense that the Vietnam gamut, which was designed, by the way, by Henry Kissinger, is not in play, despite the very similar rhetoric. In some ways, I'm surprised that Trump isn't doing something similar to Kissinger's bombing campaign. Our government has a goal here, and that goal isn't really unconditional surrender. We've already degraded the vast majority of Iran's military apparatus. The goal now is to gain a cease fire so that we can reopen the Strait of Hormuz and prevent an oil shock from devastating the global economy. At this point, that is a real win. President Trump could claim that he decimated Iran in order to get it. And by the way, we would all go back to normal, assuming he can convince the Iranians to get on board. But short of the brutal Kissinger game plan, I don't see an off ramp. At least this time there are no boots on the ground. Then again, that's why the ball is not in our court. Either the Iranians come to us through an intermediary, perhaps Qatar, and offer terms that let Trump declare victory. Or they hang on. The price of oil stays sky high. The first, sends the stock market soaring. The second, it should be your biggest concern. And it's a powerful negative that will certainly send all our stocks lower. Don't get me wrong. Look, I desperately want to take the President's word and bet that the war is winding down. Maybe he just declares the war is over tomorrow by talking about how there's a possible back general agreement in the works where the Iranians agree not to mess with the strait and will GO Operation Operator Linebacker 3 if they violate a potential truce. But we're not the only ones who have a say in this. Iran has to let the ships pass through the strait or else. Meaningless. Can they really be trusted? That's why I don't think the ring fence works. Even though the stock market would rip to an all time high in a day if Trump made such a declaration without some reason to believe that the war is ending, there's nothing that can stop oil from eventually soaring to $120 and beyond that will bust any ring fence. All bullish bets would be off. The selling in the SB500 futures would be so outrageous that even the stocks of Exxon and Chevron would get crushed simply because they're part of the index. I will do this though. I'll tell you what themes can be bought if oil stabilizes and Iran shows signs of willingness to stop lobbying, protection projectiles and naval traffic. First, you have to like the data center theme. The war is obscuriate right now, but we just got the best verification of this theme strength when Oracle, the data center champ last night reported fantastic set of numbers that indicated its build out is going better than anyone thought. It doesn't need to aggressively raise more money. It doesn't need to fire sales Cerner's medical records division. I was stunned by how smoothly everything's going for them. More of this remarkable Oracle quarter later in the show because it's just too important to ignore. Oracle's fabulous fortune dovetails with next week's GTC event, the annual AI Festival by Nvidia, which we're going to it continues to invest in companies that can help put up more data centers. Today Nvidia announced a $2 billion invest in Nebulous, that's an AI cloud company. That said, this theme can't really shine until the war is over, but it can be bought on the way down. Second theme, the memory shortage. I keep thinking this has got to end, but we got confirmation this week from HP Enterprise that it's going to go on for much longer than people think. However, I can't recommend these memory stocks, even the ones I really like. But Western Digital, they're just too much too high. Western Digital, Seagate, Sanders and Micron Throat. We bought one. A big move down because of oil if we see the $120 oil, those are the four stocks you got to reach for or you go with the semiconductor capital equipment makers that are less risky. Lamb Research and kla. The you can do a mat to apply materials. The memory shortage will ultimately drive lots of businesses their way again though none of these will be real winners until the war ends and decline runs its course. Third theme is the trade downers. There are plenty of people who are being hurt by the new bout of oil shock induced inflation. We got a tame CPI number this morning, but it's. It's from before we attacked Iran, so it doesn't count at all. What does count is that the financially challenged families are moving down to Burlington Ross stores and TJX with its home goods Marshall and TJX Max divisions. The more TJ Maxx, I'm sorry, the more venturesome can buy Dollar Tree or Dollar General, the latter of which reports tomorrow. By the way, I like hold to beauty to the cosmetics retail. That puts tomorrow night. I don't like putting a gun in my head though. But you should buy some of these here and then buy some more after you see the quarter. Finally, you have my blessing right now to buy five below the eccentric eclectic specialty retailer that seems to unite all economic groups, but it caters to the families who don't want to pay an arm and a leg for some flexible fun. Oh, I wish I had more themes, but these are the only ones I know that can be bought. After a run in oil that devastates the stock market even as oil certainly less of a factor to our economy that used to be. It's not enough to minimize it. Here's the bottom line. If Trump channels Kissinger and does something to push Iran towards negotiations, well, we could embrace these three themes sooner than you think. Of course, the price to be paid to get there may be way too much. I know. I thought it was in 1972, but the gambit worked. It could, I imagine, work once again. Let's go to James and Georgia, please.

[C]

James, Mr. Kramer, first time caller. Thank you for writing the book.

[B]

You're a good man. Thank you. How can I help you?

[C]

Yes, I purchased some shares of Eli Lilly back in October, made 20%, took the house's money, put some back in and now it's sitting up on a shelf and I'm afraid the knife's going to drop or it's going to skyrocket. What are your thoughts?

[B]

I like you. I very much. Look, I always. I never mind. Anybody takes a profit, it's always great to take a profit, but we're holding on for the Chapel Trust. We think that Eli is one of our favorite stocks. We're not budging. We buy more if it really got hit. Let's thank you for the call. Let's go to Robert in California. Robert.

[C]

Hey Jim, Rob here calling from beautiful San Francisco.

[B]

Hope to see you soon. What's going on?

[C]

A club member, I'm a first time caller and like so many others, I'm a longtime listener.

[B]

Jim.

[C]

So I recently retired. My former vice president often said to us kyp, know your people, Jim, you know your people. And the authenticity that you exhibit when speaking to all of these CEOs is really incredible. And it's your superpower and it's what makes us keep keeps us all coming back for more. So I just wanted to say thank you to start.

[B]

Oh, you're very kind. I do. I am out there working as much as hard as I can for you. So how can I help you now?

[C]

Appreciate it. So, Jim, the stock I'm calling about reminds me of being in elementary school and writing a seesaw. One day it's up and the next day it's down or one quarter it's up and next quarter it's down. But the seesaw, as we know, is only fun for so long before it starts to hurt. So Jim, with the earnings coming up next month, what's the 411 with Metta?

[B]

Okay. I think Meta could ultimately embrace a limited style block. That square, that's Dorsey situation where he says, you know what, we're going to go all AI we don't need all the people we have and we are going to make fortunes for shareholders. I think that not it's my own conjecture, but I think that's where Mark Zuckerberg's head might be. Let's go to Tyler in Ohio. Tyler.

[C]

Oh yeah, Jim, been a longtime fan of the show.

[B]

Thank you.

[C]

Book here recently.

[B]

Thank you. Trying to get people to understand stocks and what they mean. That's what it's about. Not a tell all but a how to. So let's go to work.

[C]

Absolutely.

[B]

Yeah.

[C]

I wanted to get your opinion on Victoria's Secret. A little over a year ago they got a new CEO and CFO. In the last 12 months, their stock has nearly tripled Q4. They posted great earnings but had a little bit of a pullback this past week. Their multiple is currently around 21. So just want to get your opinion if it's a good time to buy and then looking into rest of 2026. Do you still see momentum for this stock?

[B]

I think it could. You know, they were actually, I think surprised that the stock was down because they did a pretty good job for the quarter. Thank you very much for the kind words. Now look, even as oil is less of a factor economy than it used to be, that's not enough to minimize it. It's still front and center. We have to prepare for some more volatility ahead even as we do. Well, I just gave you a plan on me Money tonight. Investors have been worried about Oracle and its ties to the data center theme lately, but did last night's quarter quell those fears? I'm taking a look at the report. Then you called in about an under the radar power play. I'm giving you my take on its latest move lower and whether it's time to get in. And in a tape that's been pretty darn hostile with consumer stocks lately. What's in store for Mattel? I'm finding out when I sit down with the toy maker CEO. So to stay with Kramer,

[D]

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So last night we got this tremendous quarter from Oracle that allowed the stock to pop 9% today even as the market rolled over. And that was a very pleasant surprise. Remember, a lot of people have been worried about Oracle. They this former enterprise software place, the company that sent the AI data center complex into the stratosphere six months ago when it reported a massive jump in bookings, mainly thanks to OpenAI, the fast growing company behind Chat CBT. Now a few weeks later though, Oracle caused the peak in these stocks as investors started worrying about where the heck they find the money to build all these warehouses full of servers. They're expensive. Those concerns have never really gone away. Oracle peaked at $345 in September, and even after today's rebound, it's only at $163, still down more than 50% from its highs. And the stock only tells part of the story. When Oracle started issuing debt to pay for its data center buildout, investors started being concerned about the quality of the company's credit. There's a reason why credit default swaps on Oracle's debt have nearly quadrupled in price from September. These are basically insurance policies for bondholders. It didn't help that when Oracle last reported in December, the results came up short. But a revenue missed disappointing margin soft guidance for the following three months. That's why this time many people were bracing themselves for disappointment. Instead, Oracle shot the lights out. Not only did they deliver sizable top line beat with 22% revenue growth, but every division posted better than expected sales except for hardware, which is their smallest unit. In a nice contrast with the previous quarter, Oracle's operating margin came in higher than expected, suggesting that their business may be more more profitable than the pessimist thought. In terms of earnings, well, they earned $1.79 per share. Analysts were only looking for buck seven. That's 21% earnings growth year over year. Not too shabby. Of course, the key metric here is Oracle's remaining performance obligation. You might have seen that as rpo, which basically represents bookings. This time the remaining performance obligation was $553 billion, up 325% year over year and perhaps more important, up 6% versus the previous quarter. That was actually a very mild disappointment, believe it or not, but nobody seemed to care. Frankly, people aren't concerned about Oracle's bookings. They're concerned about how much money the company will have to pay to make all this business happen. Because building data centers, as I said, very expensive. How about their guidance for the current quarter? Oracle said to expect 19 to 21% revenue growth this quarter. Basically in line or a little bit above expectations. Management's guidance for cloud revenue growth was in line too. Finally, Oracle says it can earn A$96 to $2 per share. Hey, Wall street was only looking for a buck 94. That's a nice raise. Guidance. Solid. At the same time, buyers liked what management had to say on the conference call. It was really upbeat. Like I mentioned before, people have been worried about how much money Oracle might need to borrow in order to build all those data centers that it's promised to its customers. When the company announced a debt and equity refinancing plan to raise 45 to $50 billion back on February 1, that sent the stock into a multi day tailspin. Last night we got an update on that refinancing plan. Within days of the February 1st announcement, Oracle raised $30 billion through a combination of investment grade bonds and mandatory convertible preferred stock. Apparently people lap this up. While Oracle hasn't started getting ready to sell any common stock, at least the debt portion of the plan went very well. For at least the next 10 months we won't have to worry about the company piling on more debt to pay for its AI data center build out. That's a very big win. As the pessimists were whispering they could wreck the balance sheet with the build out. That's now looking like a pretty foolish judgment. Hey, speaking of the backlog, Oracle mentioned that most of the increase in their remaining forms obligation, their bookings was quote related to large scale AI contracts where Oracle does not expect to have to raise any incremental funds to support these contracts as most of the equipment is either funded upfront via customer prepayments so Oracle can purchase the GPUs or the customer buys the GPUs and supplies them to Oracle, end quote. In fact, Oracle hinted something like this. I really like the flexibility of it. When it last reported December talking about quote, other financing options and quote it's very creative for its data centers including plans where customers might bring their own chips. Oracle loves to do that stuff, right? Hey Nellie Sandals Ben Righteous. He dubbed these capex light strategies for the data center build out. But at the time those ideas seem a little half baked. So Oracle didn't really get credit for it. Now with the company saying more explicitly that it has this plan. It helped ease concerns about the company's infrastructure spending. Plus, all of this comes on the heels of some major developments for Open Air, Oracle's biggest customer, that have made it into a much more stable business partner. OpenAI has reportedly dialed back some of its spending plans, telling investors that it was targeting 600 billion in infrastructure spending by by 2030. Now, that's still a huge number, but it's much more palatable and I would add realistic than the $1.4 trillion over eight years number that CEO Sam Altman was talking about in full Ubers. Second, and more importantly, OpenAI has now completed its long rumored $100 billion private fundraising round. In fact, they raised $110 billion with 50 billion coming from Amazon and 30 billion apiece from Nvidia and Softback. So at least for the near term and medium term future, Open I can easily pay its bills. That takes a major worry off the table for Oracle. Now, there was one more thing to this quarter that I'd love to cover if I have more time. Management came out with a great rebuttal to all this talk of a software as a service apocalypse, something that Marc Benioff from Oracle spoke about in our show. Remember, while Oracle's got a huge business building data centers, this used to be a pure play on enterprise software company and they still do a ton of software business. So they have a very good read on what's happening here. Of course, there are still some lingering concerns that they could hurt the stock, especially the $20 billion at the market equity offering that might do some damage to the share price. That said, the stock ran up more than 9% today despite the specter of that offering. So it might not make the debt your thing. Let me give you the bottom line here. A win is a win, and this latest quarter was a big win for Oracle, a stock that's been synonymous with AI data center worries since last fall in a crazy, unpredictable environment. As I said at the top, this is one theme that's just holding on fine. Oh, and those myriad hedge funds who bet against it, they have felt the wrath of founder, chairman and Chief Technical Officer Larry Ellison, which, trust me, is a lot worse than even the wrath of Khan bit. Money's back in for the break.

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During the Lightning Round last night we got a call from Romeo in New Jersey, who asks but soft white through yonder window breaks. Romeo actually asked about a company called power Solutions International P6, which designs, engineers and manufactures a broad range of engine power systems and accessories. Nothing to do with Shakespeare at all. It's a name that I'd recommended in the Lightning Round last year, and the stock had been doing well until just a couple couple of weeks ago. But I saw it come down significantly from its highs recently. So I told Romeo, hey listen, I look into what happened here. Come back with a better assessment than just coughing and saying hey, it looks good. That doesn't work for the Lightning Round because of you. You deserve better. First of all, let me give you some background. Power Solutions International has been around for over four decades and it came public in 2011 through what's known as a reverse merger transaction. But for most of the time, as a publicly traded company, it was far too small, dimensional, narrow. Now that changed the last couple of years the stock had a huge move higher. Overall, Power Solutions International went from a low of $2 roughly just two years ago to a high of $121 and change late last summer. Now let's Think about it. That's a heck of a lot better than a $2 lottery ticket, right? This is precisely the kind of stock I tell you to look for in how to make money in any Market. They are all over the place. We just have to put our minds together. After pullback late last year, the stock made another run to starting in 2026 briefly, briefly trading to the triple digits again in mid February. But since then, the stock had a breakdown encore, taking it down to the point where it's now trading in the mid-50s. So what the heck on earth happened here? Well, first let's start with what it does. This is one of many textbook industrial companies have been making fortunes by selling backup power systems to data centers. I told you that's a good theme. All over the country we talk about this theme constantly. The difference is that Power Solutions International is much, much smaller than Caterpillar Cummins. So this move into backup generators for data centers has fundamentally transformed their whole business. As a result, the company put up nearly 52% revenue growth last year. At the same time, Power Solutions International has become a heck of a lot more profitable. 2022 they earned 69 cents per share. Last year they earned $4.98 per share now. That's a tremendous three year increase, isn't it? So then what went wrong? Well, the biggest chunk of the decline came last Tuesday when Power Solutions International ported and the Stock plunged nearly 29% single session next day. Awful. While the quarter represented top and bottom line B, when you drill down other major line items like gross profit and EBITDA had year over year declines and that was a major departure from last year. I think this significant step down and is significant in margins in the fourth quarter was the main reason for such a harsh sell off. But I also think that this dislocation might represent a good opportunity to get into the stock. Yes, into it. Power Solutions International has been nearly cut in half in less than a month. And to me this is like a terrific entry point because there's nothing wrong with the data center thesis. As management explained when they reported last week, the decrease in margins and profits last quarter was a result of the company ramping up new manufacturing capacity. Hey, it's expansion. It also came from a mix shift with increased volumes for certain new product lines. But Power Solutions International is ramping its manufacturing capacity to meet off the charts demand for its data center backup. Power Products Management also said that they're taking steps to address the lower profitability for certain new products and even indicated that they're starting to see quote, measurable improvements, end quote from these efforts. Basically those softer line items are temporary. Part of the issue here has to do with some of the quirks of the Power Solutions story. For example, and this bothers people, the company doesn't hold a regular conference call, they just put a press release. So while the margin pressure might have been something that they could have explained by a management on conference call, there was no call. And we just had a quote from the CEO in the press release. It was kind of stunning. At the same time, it didn't help that management declined to issue any formal guidance this year. A big change versus previous quarters. They did offer some commentary on the outlook for 2026, which I thought was bright, broadly positive, admittedly somewhat vague. But when investors have gotten used to seeing actual guidance, anything short of that tends to spark panic about the future. There's one more aspect to the story that you need to know. Following an investment in 2017 when this was still a very small company, Power Solutions now has ties to a Chinese company, Wei Chai Power, which is the largest car parts and power system conglomerate in the People's Republic of China. Wei Chai used to have a power stake and you have a majority stake in Power Solutions. But last year they sold some shares which is now reduced their ownership stake to 46.5%. So Wade Chai remains a large shareholder, just not technically a majority shareholder anymore. Still, Wade Chai has four seats on Power Solutions, seven person board of directors. This is not something I am at all concerned about, but it's still something worth knowing if you're thinking about buying the stock and you'd say well why didn't you mention that? Well, there it is. So what's the bottom line for Romeo in New Jersey? Wherefore are we positive on psix? Come on, I have to try this. After taking a closer look at Power Solutions and where and what's causes recent pullback, you know what, I actually still think this stock looks real good. Stock's been overly punished when it was sold off last week and I'm betting many of the worries here will turn out to be overblown plus. But the company expected to earn $5.61 per share this year. Power Solutions International is now selling for right around 10 times this year's earnings estimate. When you compare that to something like caterpillar at 31 times, Cummins at 21 times, this looks like steel. Of course there's a reason why sells for such a discount. They're a lot less transparent than your typical publicly traded company. And it's a small cap operator with major ties to China. But none of these for me at least are deal breakers. Which is why I'd be a buyer down here. I think data center build out is here to stay and there's growth enough for everyone, including psix. Let's take some calls. Maybe it'll be as good enough as bringing something like Psych to us. I want to start with Greg in Tennessee. Greg.

[C]

Good day, Mr. Kramer. It's a pleasure to talk to you.

[B]

I say the same about you, Greg. How can I help?

[C]

I've got a stock that I've held for a while and it was doing very well until the end of January when it just fell off a cliff and now I'm sitting on a loss on it. I'm wondering what I should do with Carvana.

[B]

Well, you know, Carvana is a very good company. It does have periodic plunges and then they do the thing that they do, which is in have a great quarter. I have been a believer in Ernie Garcia since the stock was single digits. And just because the stock has had some people close, a fighting move from 46 down to 300. I'm not backing away. I'm not saying buy some, but I'm saying I would not abandon ship. Let's go to Leslie in California. Leslie.

[E]

Jim.

[C]

I like your new glasses.

[B]

Thank you.

[C]

I sell our home.

[B]

I like Dover come very much. Dover Corp. Is, you know, look, that's Mr. Tobin stock. The stock just ran up by the way, all the way up to 237. At that point it was not the right thing to buy. It's had such a run. But at 210, I, I think it's for me. By the way, you can buy some at 210 and then you buy some at 200 and then some at 190. I know I don't want it to go to 190. But always be prepared with what to do. A game plan ahead and that's to buy Gogu Jing.

[E]

Really?

[B]

On the way down, Power Solutions trades at a discount to its peers and has a good story. I think Edgar's pullback is pretty much a steal. Hey, much more man money, including my exclusive with Mattel. Could 2026 be the year this Toy Story strategy really pays off? I'm finding out with the CEO. Then are we starting to see signs of what Agentix means for the workforce? I'm honing in on one tech company, making some changes and giving you my take. And it should have been talked about a lot more than it has been. And all your calls. Rapid Fire. Tonight's edition of Lightning Rounds. Stay with Kramer. Okay, what needs to happen for the stock of Mattel to turn itself around? About a month ago, the iconic toy maker reported what people thought was disappointing. Quarter Stock plunged roughly 25% the very next day. Management said replenishment orders from retailers in the United States slowed in December, which led both Mattel and its retail partners to clear inventory more aggressively. That put pressure on the gross margins. Going the holidays. Now Mattel is asking investors to think about 2026 differently. They see this as an investment year where they'll spend an extra $150 million on organic growth initiatives. I like that. Especially the digital games business. I really like that. So could this thing be worth buying? The recent weakness. Let's take a closer look in person with a non Crisis, the chairman CEO of Mattel. Mr. Chris, welcome back to money.

[E]

It's great to be here, Jim.

[B]

Okay, so you reported on my birthday February 10th and I remember listening to you and you said the growth in us was less than anticipated which impacted our full year results. I said, oh no, that's a tough one because I know you never want to hear that. But then you went and bought $1 million worth of stock in the open market. What have you seen that makes you feel like this is going to be the bottom?

[E]

Well, we're very excited where we are today. 2026 is an important year for Mattel. This is a year where we are implementing our new brand centric strategy to grow our IP driven play and family entertainment business. We expect to see growth driven by toy innovation, major IP partnerships and an inflection in our entertainment strategy with two major movie releases and an expansion in our digital game strategy.

[B]

Okay, let's talk about these two. People are not giving you any credit for these, which I think in many ways directly relate more to the toys than people realize.

[E]

That's right. The first movie is Masters of the Universe, which I know is your favorite. And we have an incredible toy line that will accompany the movie. The movie itself is going to be a big event. Travis Knight, the director, was able to really bring this incredible brand back from the 80s and it will appeal to avid fans as well as new new passionate fans that will love the movie. Absolutely. We expect a lot from this picture and very excited to bring it to the big screen.

[B]

You've now brought back. The company has now brought back 8, 18% and yet the balance sheet still terrific. Does that make you feel at certain times. Well, boy, I should just take it private.

[E]

Well, we have a very strong balance sheet. This is one of our core strength. In the last three years we acquired, as you said, 18% of the float over $1.2 billion of shares. And we just announced a plan to acquire another $1.5 billion over the next three years. So we believe in the stock, it's undervalued and of course we put our money where we believe we can see incredible value.

[B]

Well, I think that's right. I mean I've seen CEOs if they borrowed money to buy stock, that's not so good. But if you had the money in the till, it just shows you how undervalued this company really is. Particularly because you know you've got long term brands, not long well known brands. I know you weren't happy, were not happy with dolls. Can dolls turn around the way that you'd like?

[E]

We own one of the strongest portfolios in the industry in children and family entertainment. And the opportunity is to capture value. In addition to toys, dolls is an important category. We absolutely expect that to continue to improve and with brands like Barbie, American Girl, Monster High, Polly Pocket and partner brands like K Pop, Demon Hunters, Wicked, Disney Princess and Frozen, we have an incredible portfolio and we expect that to continue to improve and do better and better over time.

[B]

Okay, I need you to explain to me because I'm not in this world but you are from it mattel163 what it means to have own all of it.

[E]

Well, we acquired our joint venture fully now, so it's all part of Matteo. Our digital game strategy is a very exciting growth driver for the company given the strength of our brands and the fact that we can invest a very low capital level and own all of the upset from our game. So it's a very exciting opportunity to be in the self publishing business. The acquisition of Mattel163 will further amplify and accelerate our strategy with more scale, more opportunities to cross promote and benefit from best practices businesses bringing this to Mattel inside and build it holistically as part of one strategy in our digital game business.

[B]

I know you're good at entertainment, you've got a good financial head. Have you ever looked at Applovin, this incredible company?

[E]

I know well.

[B]

Well, can you ever be like Applovin

[E]

to look the at the core? We are an IP company and we've evolved to become a brand management company. You followed our journey, you've seen what we've done with our brands. There are Many opportunities where we bring our brands to life outside of the toy aisle. And the opportunity for us is to grow both in toys as well as beyond physical product. Film, television, games, location based entertainment, music, publishing and on and on.

[B]

Now this is a preview of the UBS conference and I, I think about this is typically from my dad who used to sell toys. This is not a big quarter for you. So it's really demon. This is, you know, I mean we know that the fourth quarter is really big, but what comes next? What are we going to see in April, in May so that we really might want to buy now?

[E]

Well, we guided to 3 to 6% growth in 2026. The important thing is how we position the company for long term growth beyond 2026. And this is back to the investments that you just mentioned earlier. This is where we take our own cash that we have and invest in organic growth opportunities to capture even more value of our IP faster. This is about investing in high ROI opportunities that are directly related to our core business or adjacent to the core business. And we expect to accelerate growth in 20, 20, 27 and beyond.

[B]

All right, can we put is everything tariff in the stock now that you think other people might still be surprised about tariffs and what can matter to the bottom line?

[E]

Look, we fully mitigated for the cost impact of tariff last year and already taken all of the actions that are needed for 26 to fully mitigate it for the known tariff. As we sit here today, our job is to manage a portfolio of strong brands with different price points and different experiences, different demographics. And given the vast portfolio that we have, it's an exciting opportunity for us to capture value across across, across vertical.

[B]

I like CEOs who put their money where their mouth is. I like CEOs who buy back stock without wrecking the balance sheet. You're doing everything you can. One day we know these things just ignite. That's what happens when you do it right like you're doing okay. That is Enon crisis. Mattel Chairman CEO Mat, you just got a good preview of the talk he's going to give. And what can I say? When you buy back that much stock, typically good things happen. That money's back after the break.

[D]

Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast fire lightning round.

[B]

Next. Next. It is time. It's time for the wide round pyramid. And then the lightning round is over. Are you ready, Ski Dad. Let's start with Fonz and for Fonzie. Hey, Jimmy. Taylor, what's up, man? I know. You tell me, Fonz. I'm waiting. Hey. Hey. Just thinking. What's your thoughts on MongoDB? No, man, I'm not into enterprise software. And I gotta tell you that last quarter was not to be liked. I want you to sell. Let's go to Bill in Ohio. Bill.

[C]

Hey, Jen, thanks for taking my call.

[D]

Right back.

[B]

Gotcha. What's going on?

[C]

I own a position in a company called called Form Factor.

[B]

Yeah, it's good technology, good semiconductor technology. Very expensive stock, but I think I'd ride it through. Let's go to KT in Massachusetts. Kt? Jimmy, thank you for your hard work. Oh, sure. I'm trying, man. I called in January asking about Si Bone. You said you would run it by Ben Soto. Since then it's dropped about 30%.

[C]

Wow.

[B]

Gee, I don't know. That's.

[C]

Whoa.

[B]

They're losing too much money. We're in a tough tape. We're not going to buy the money. Losers. We got a lot of stocks that are making a lot of money. They're way down now. That's what we're going to look at. Let's go to Greg in California. Greg.

[C]

Yes, Jim.

[B]

Thank you.

[C]

It's an honor to talk to you, sir.

[B]

Oh, thank you.

[C]

Just a quick question. Cathie Wood bought a stock recently. Recursion, Pharmaceutical

[B]

Recursion. It's a letdown. Big letdown came on the show. Welcome. Big Game did deliver. Next, let's go to Richard, North Carolina. Richard.

[C]

Jim, long time, third time club member, book reader.

[B]

Fantastic. Glad to have you on the show. Yes, Jim, thank you. Listen, I appreciate your recent macro in insights and your oil stock stock advice. Due to the merger, this one seems undervalued.

[C]

So take a schnitzel or hold Devon Energy.

[B]

I agree with you. Great natural gas portfolio. It's not necessarily going to be linked to the international, but there's going to be shortage National Gas. We all realize that now. They're doing a good merger. I don't. I hesitate to recommend any oil and gas after this big run. But if it comes in, I'm going to say yes. Let's go to Clay in California. Clay.

[E]

Hey, Jim.

[B]

How's it going? Clay and I

[C]

got a question for you.

[B]

Okay. Hi, Jim. My name is Clay. My grandpa, my dad taught me that money works for me. And I don't just work for money. I'm up 900 in Nvidia 500 and after, after I take profits. Do you think G. Verona is a good move? Which One she. Vernon. Well, listen, look, with that track record, who am I to. Who am I to even Opine? I have to tell you, I'm gonna go buy something. My Chapel truck. Oh, I already own it. You and me are kindred spirits. I like the stock very much. They ought to split it. They ought to listen to you. That's what they should do. Maybe put you on the board. All right, let's go to Don in Alabama. Don. Hey, how you doing, Jim? I'm doing well. How are you?

[C]

Thank you for taking my call.

[B]

Of course.

[C]

Calling to get your opinion on an AI stock called South Hound.

[B]

I've been watching this thing go south. You know, everyone got alongside it because Jen said a position is. It's kind of like that recursion. But, you know, he. I don't see him as a big shareholder anymore. And I've got to tell you, this is one of those companies that is a meme stuff stock and meme stocks that are losing money are ixnay. Okay, let's go to Mark in Wisconsin.

[C]

Mark, Dr. Kramer, thank you for taking my call.

[B]

Thank you for calling. What's up?

[C]

I got a semiconductor stock for you right now. They're burning through some cash, but you got to spend money to make money here. Recently they up with Nvidia in some way, shape or form. I own this one. Buy, sell, hold, ticker symbol nvts Navitas.

[B]

Okay, how about this? They've got really great technology that should ultimately translate into great earnings. It has not done so yet, but they do have great technology. So that. Ladies and gentlemen, conclusion of the Lightning Round.

[D]

The Lightning Round is sponsored by by Charles Schwab. Coming up, after CEO Jack Dorsey slashed the staff of Block in favor of artificial intelligence, could the AI job pocalypse already be upon us? Kramer's weighing in next.

[B]

Couple weeks ago, Jack Dorsey, CEO of Block, the Old Square, did the unthinkable, saying he would cut his workforce almost in half. From 10,000 people to just success. Why? Because AI tools make it possible for a smaller number of people to do a lot more with less. Oh, it was brutal. But Dorsey said it was inevitable. Quote, most companies are late, end quote. He explained, quote, I believe the majority of companies will reach the same conclusion and make similar structural changes, end quote. Now, the stock reacted immediately, rallying from the low 50s to the high 60s. Oh, it's come in a little since then, but it's still in constant 60s. Right now, Dorsey's alone. In fact, no sooner did Dorsey go there than Marc Benioff, CEO of Salesforce came out and said, quote, Listen, obviously that company has its own unique issues. We all know that. So let's put this aside. End quote. But Dorsey's comments got me thinking. We all know that I could be the greatest productivity enhancer since the Internet. Or maybe the steam engine. That's what the tech guys keep telling us, right? So what happens if these companies actually practice what they preach? Can you imagine what would happen to shares of Metta if Mark Zuckerberg decided to go all in on AI and lay off 40% of his 78,000 person workforce? If you can have AI agents that can make an employee 10 times as productive, then why do you need 78,000 people? We know that Amazon web Services preferred cloud infrastructure for so many companies and it's fantastic at doing more with less. I found out that@the street.com when we moved there from being on prem brutal switch. But they were so right. We saved a fortune. Amazon said to employ 320,000 white collar workers. Don't you have to wonder what would happen if they took only a dollop or half a glass of Dorsey's medicine? Well, Alpha really need 190,000 people. Could it be doing the same with 30,000 or 40,000 fewer workers who went all in on a Alphabet? Maybe they have too many people now. It wouldn't happen initially, but with all these talented agents they're helping to create, shouldn't they be able to save billions upon billions of dollars? If block is any guide, it would be terrific for all of their stocks if they adopted the AI they keep talking about. But you know what the real question is whether these companies even have a choice. Amazon just raised $37 billion a deal that was more than three times oversubscribed back to lace. That's despite the fact that it's expected to have negative cash flow this year. Negative. But. But how is Amazon going to get back to cash flow neutral, which always has to be the goal? If not positive, it needs massive cuts. Just what is made for. And don't get me started on the 228,000 people work for Microsoft. Agents galore are their salvation and their solution. Now as two time union member, I am that's right, a two time union member who sympathetic to the labor movement and worked hard to promote it. As someone who thinks that CEOs may be radically overpaid versus workers, I hope that no one gets laid off. I'd like to think that with all these agents working for people, you need everyone you can get so that they can be big force multipliers. Arguably you could hire more people and do even better than you're doing now, but with what I know about Silicon Valley, it's a lot easier to see them going all in AI embracing the ethos Point Dorsey. Listen, I didn't like what Dorsey said at all. You may be part of that 4,000 there, for lack of a better term. Dead wood. That's what we call them at Goldman Sachs. But if all these big tech companies have to raise money to build their AI presence, I got to believe they're thinking about firing people just like Dorsey. Let's face it, all these big tech companies have way too many employees. If the wonder of AI agentry is true. After all, the reason these companies can raise money at the drop of a hat may be because Dorsey's right. Sure, Block is in a unique situation as a fintech firm needed help, but the odds don't favor that. They favor the new world they let's just hope there's something for everyone and the abandoned people can start their own businesses or catch on and be a force of 10 for another good enterprise. I like to say, as always, bull markets on my promise to find it just for you right here on Man Money. I'm Jim Cramer. See you tomorrow.

[A]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer'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 Martha listens to

[D]

her favorite band all the time. In the car, gym, even sleeping. So when they finally went on tour, Martha bundled her flight and hotel on Expedia to see them live. She saved so much she got her seat close enough to actually see and hear them. Sort of. You were made to scream from the front row. We were made to quietly save you more Expedia made to travel savings vary and subject to availability. Flight inclusive packages are atoll protected.