Mad Money w/ Jim Cramer – Episode Summary (March 12, 2025)

Hosted by CNBC’s Jim Cramer, “Mad Money” delves deep into the complexities of Wall Street, offering listeners insightful analysis, actionable investment advice, and engaging discussions with industry experts. In the March 12, 2025 episode, Cramer navigates through the turbulent landscape shaped by trade tariffs, spotlights promising stock opportunities, interviews Matthew Prince of Cloudflare, and engages with callers during the iconic Lightning Round.

1. Trade Tariffs and Market Dynamics

Jim Cramer opens the episode with a compelling analysis of the ongoing trade tariffs implemented by President Trump. He proposes a contrarian view, suggesting that the market might benefit from the culmination of tariffs as retaliatory measures from trading partners reach their peak.

• Cramer on Tariffs Impact ([02:15]):
  “When everything's finally got tariffs on it, I think the market will be up a great deal because the last few of our trading partners buy anything from us anyway, so they can't really retaliate.”

Cramer discusses the initial negative perceptions surrounding Trump's trade policies, emphasizing that reciprocal tariffs may not significantly harm the U.S. economy due to the limited scope of American exports. He highlights a key point:

• Cramer on Free Trade Gospel ([03:22]):
  “I've never been a true believer in the gospel of free trade. You know that our trading partners are always trying to get over on us, so I got zero objections to get one over on them.”

Despite the administration's aggressive stance, Cramer believes that the Federal Reserve's potential to cut interest rates, combined with the tech sector's resilience, could stabilize and even boost the market. He counters the prevalent fear of a recession driven by tariffs, arguing that the U.S.'s service-oriented economy is less susceptible to such downturns.

• Cramer on Recession Risks ([05:10]):
  “We're most likely not going to get into a serious recession because the Fed can take action to prevent that. And even if the Fed does nothing, the market can recover once all this tariff stuff is behind us.”

2. Stock Market Insights and Sector Analysis

Cramer transitions into a detailed exploration of various market sectors, identifying key players poised for growth despite recent volatility.

a. Travel and Airlines

The travel sector has faced significant downturns, with major airlines like Delta, American, Southwest, and United experiencing stock declines. Cramer views this as an opportunity for savvy investors.

• Cramer on Delta Airlines ([07:05]):
  “Delta CEO Ed Bastian believes the recent softness in domestic demand is transitory. Lower fuel costs could benefit the airline, and Delta's revised revenue growth forecast from 8% to 4% isn't alarming if the economy remains stable.”

Despite earnings outlook reductions, Cramer remains bullish on United Airlines, highlighting its efficiency and the stock’s attractive valuation:

• Cramer on United Airlines ([07:50]):
  “With the stock down almost 38% from its January highs, now trading at less than six times this year's earnings estimates, United presents a fantastic buying opportunity.”

b. Cruise Lines

The cruise industry, represented by Royal Caribbean, has also seen substantial stock drops. Cramer shares his optimism based on CEO Jason Liberty’s remarks about consistent on-ship spending and limited new ship supply, which could bolster pricing power.

• Cramer on Royal Caribbean ([09:20]):
  “Royal Caribbean’s stock, down 25% from its recent high, now sells at a very reasonable 14 times earnings, making it an attractive buy.”

c. Tech and Airbnb

Highlighting the tech sector's dominance, Cramer points to companies like Airbnb as disruptors in their industries. Despite a recent pullback, Airbnb remains a strong candidate due to its solid business model and market position.

• Cramer on Airbnb ([10:30]):
  “Airbnb is a true disruptor and a long-term secular winner. With its stock only up about $15 from its 52-week low, it's a prime candidate for buying in weakness.”

3. Interview with Matthew Prince, CEO of Cloudflare

A standout segment of the episode features an in-depth interview with Matthew Prince, the CEO of Cloudflare. The discussion centers on Cloudflare’s pivotal role in the evolving landscape of artificial intelligence (AI) and cybersecurity.

Key Topics Discussed:

• Cloudflare’s AI Integration ([30:05]):
  Prince elaborates on Cloudflare’s strategy to position itself within the AI infrastructure space. By integrating AI model inference directly within their network, Cloudflare ensures low-latency processing close to end-users.

  • Prince on AI Models ([32:00]):
    “We believe the next best place to run large AI models isn't back at major data centers but right within our network, as close as possible to the user.”

• Cybersecurity Solutions ([32:51]):
  Highlighting their robust security measures, Prince explains how Cloudflare protects enterprises from sophisticated cyber threats in real-time.

  • Prince on Cybersecurity ([33:10]):
    “We were able to onboard a large organization under attack in just a few hours, ensuring no hiccups across the internet. That’s the Cloudflare advantage.”

• Content Creator Protection ([34:31]):
  Addressing concerns over AI's use of original content, Prince discusses potential new business models where AI companies compensate content creators.

  • Prince on Content Licensing ([35:14]):
    “There’s going to be a new business model to ensure original content creators are compensated for their work being used in AI systems.”

• Leadership and Growth ([35:32]):
  Prince emphasizes the strategic growth and leadership team enhancements at Cloudflare, positioning the company for long-term success.

  • Prince on Leadership ([36:08]):
    “Our mission to build a better internet has attracted top-tier leaders who see the immense growth opportunity ahead.”

4. Lightning Round: Buy, Sell, Hold Opinions

In the high-energy Lightning Round, Cramer takes calls from listeners seeking his take on various stocks. Highlighting his expertise, he provides succinct advice on a range of investment opportunities.

Notable Exchanges:

• Caller Tom on A.J. Gallagher ([38:40]):
  Tom: “I've had a position in A.J. Gallagher since December 2008. It’s up about 15 times. Do you think Gallagher is still worth holding?”
  Cramer: “Oh my God, yes. That is just a solid company. It should have been doing stuff like quietly going up.”

• Caller Dana on [Company Ticker FUVOFUGO] ([41:25]):
  Dana: “I use software daily to tune into your show. What are your thoughts on ticker FUVOFUGO?”
  Cramer: “I don't like stocks of companies that just do nothing but seem to lose money. So I have to say, nix it.”

• Caller Patrick on Sports Betting Stocks ([40:50]):
  Patrick: “What are your thoughts on the sports betting stocks Flutter and DraftKings?”
  Cramer: “Flutter is the biggest winner with 43% market share in the U.S. and DraftKings is a solid option. Both are worth buying on weakness.”

5. Technical Analysis: Tesla Turnaround

Wrapping up the episode, Cramer collaborates with legendary technician Larry Williams to analyze Tesla’s stock performance. Their joint analysis suggests that Tesla has reached undervalued territory, potentially setting the stage for a significant rally.

• Cramer on Tesla’s Potential ([42:34]):
  “Larry's proprietary valuation model shows Tesla has finally reached undervalued territory. When stocks come down to these levels, it typically attracts real buyers, leading to a big bounce.”

• Williams’ Insights ([43:10]):
  Williams emphasizes Tesla’s seasonal patterns and professional accumulation, indicating strong future performance based on historical trends.

• Cramer's Conclusion ([45:00]):
  “If you believe in Larry Williams and his track record, this is a gentleman. Start your electric engines moment for Tesla.”

Conclusion

In this episode of "Mad Money," Jim Cramer provides a comprehensive analysis of current market conditions influenced by trade tariffs, identifies lucrative stock opportunities in the travel and tech sectors, engages in a forward-thinking discussion with Cloudflare’s CEO, and delivers expert advice during the Lightning Round. The episode concludes with an optimistic technical outlook on Tesla, encouraging listeners to consider strategic investment moves based on detailed market insights.

Notable Quotes:

• Jim Cramer on Trade Tariffs ([02:15]):
  “When everything's finally got tariffs on it, I think the market will be up a great deal because the last few of our trading partners buy anything from us anyway, so they can't really retaliate.”

• Cramer on Federal Reserve and CPI ([05:10]):
  “The softer consumer price index means the Federal Reserve has room to cut interest rates, which could be good for the market.”

• Matthew Prince on AI and Cybersecurity ([32:00]):
  “We have become one of the default places to run those AI models, ensuring low-latency processing close to the user.”

• Cramer on Tesla’s Undervalued Position ([42:34]):
  “When stocks come down to these levels, it typically attracts real buyers, leading to a big bounce.”

For more insights and real-time market updates, tune in to the next episode of “Mad Money” with Jim Cramer.