Mad Money w/ Jim Cramer 3/21/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (March 21, 2025)

Introduction to the Las Vegas Edition

In this special Las Vegas edition of Mad Money, host Jim Cramer delves deep into the current market landscape, offering his unfiltered insights and strategies to help investors navigate the tumultuous financial environment. Broadcasting live from the Wynn Resorts Delilah Restaurant in Las Vegas, Cramer emphasizes his mission to make investing accessible and profitable for all listeners.

Market Overview and Current Sentiments

Jim Cramer kicks off the episode by addressing the recent market volatility influenced by political and economic factors. Highlighting President Trump's indication of flexibility on tariffs, Cramer notes the positive market reactions despite a rough start to the trading day. He states:

"President Trump signaled some flexibility on tariffs... markets seem to like the word flexibility. I like it too." [03:07]

Cramer expresses skepticism towards the prevailing negativity, attributing it to analysts overemphasizing issues like stagflation and Fed policies. He believes that this pessimism is overshadowing the inherent value and opportunities within the market.

"The negativity is bringing about real but ignored values. Ignore it because it's very hard to buy stocks ahead of the tariffs and a Fed that's no longer willing to help by cutting interest rates." [05:45]

Next Week’s Game Plan: Stock Picks and Predictions

Cramer outlines his strategies for the upcoming week, focusing on specific stocks and sectors poised for movement. He offers buy, sell, or hold recommendations based on his analysis:

• KB Homes and Lennar: Cramer advises caution, citing overvalued stock prices and recent earnings surprises that dampened investor enthusiasm.

• McCormick: Presented as a strong buy, especially in anticipation of a potential recession where consumer behavior shifts towards home cooking.

  "If you think we have a recession, you should really consider buying McCormick... during recession, people do less dining out, more cooking at home." [06:50]

• Dollar Tree and Paychex: Cramer expresses concerns over their future performance, recommending investors stay away.

• Chewy and Lululemon: Highlighted as promising investments, with Chewy showing consistent growth and Lululemon being a battleground for short sellers.

  "I think this is a remarkable company that makes me want to buy the stock on any weakness." [09:12]

In-Depth Interview: Craig Billings, CEO of Wynn Resorts

Transitioning to his guest segment, Jim Cramer interviews Craig Billings, the CEO of Wynn Resorts. The discussion centers around Wynn's financial health, expansion projects, and strategic positioning in the global casino market.

• Financial Performance: Billings highlights Wynn's impressive EBITDA growth, outperforming competitors by 150% over the past five years.

  "Over the past five years, our EBITDA per room premium has grown 150% relative to our two biggest competitors." [14:08]

• Global Expansion: The conversation delves into Wynn’s ambitious projects in the UAE, Macau, and Boston. Billings emphasizes the strategic acquisitions and developments aimed at capturing new markets.

  "We are in exploratory stages in Thailand, which we think would be an interesting stage... our land bank is in the UAE too." [25:03]

• Market Positioning: Wynn Resorts’ focus on the premium market and diversified revenue streams beyond gaming, such as hospitality and entertainment, are discussed as strengths that cushion against market volatility.

  "Our revenue is more from non-gaming segments like room rates, food, and beverage... it's a different business than pure gaming." [24:32]

Exploring AI Innovations: Conversation with Sarah Fryer, CFO of OpenAI

In another pivotal interview, Cramer speaks with Sarah Fryer, CFO of OpenAI, about the advancements in artificial intelligence and the company's strategic direction.

• Technological Advancements: Fryer discusses OpenAI’s progress in AI infrastructure and the significant reduction in costs for their GPT-4 models, enhancing scalability and accessibility.

  "Our GPT4 API to GPT4 mini... cost came down 99% in two years." [32:15]

• Strategic Partnerships: The partnership with Microsoft and Apple is highlighted, showcasing how OpenAI integrates its AI technologies into major tech platforms to drive innovation.

  "We are strong partners with Microsoft because so much of their technology is built on top of our AI... we are the partner to Apple on how do we create Apple intelligence on the phone now." [34:41]

• Market Position and Competition: Fryer emphasizes OpenAI’s commitment to making AI accessible globally, countering competitors like Deep Seek, and maintaining a leadership position in the AI industry.

  "Our north star is to be on the frontier of intelligence... we are becoming a multidimensional company." [31:27]

Lightning Round Highlights

Jim Cramer engages with listeners in the popular Lightning Round segment, offering swift opinions on various stock inquiries:

• ResMed (Respiratory Health): Cramer endorses ResMed, acknowledging its impact on patients' lives and its strong market position.

  "I like the stock." [38:03]

• Twilio (Customer Engagement): Advises against investing in Twilio due to market saturation and intense competition.

  "It's a very crowded field. I don't want to buy Twilio here." [38:40]

• Nice Horse (Utility Services): Praises Nice Horse for its consistency and reliability in the market.

  "I like consistency. It's got it." [39:31]

• Reddit: Suggests a cautious entry, recommending investors to buy incrementally.

  "It's a good time to start position." [40:24]

• Aluminum Sector (Alcoa): Recommends staying away from aluminum stocks, citing ongoing market challenges.

  "I want to stay away." [40:58]

Jim’s Final Thoughts: Navigating Market Negativity

In his closing remarks, Jim Cramer addresses the pervasive sense of doom within the market, largely driven by discussions around tariffs and potential stagflation. He critiques how media and analysts amplify fear, often overshadowing genuine investment opportunities.

"The drumbeat of negativity is way too loud... journalists and marketers have done more to keep you out of big long-term winners than any other force." [43:15]

Cramer encourages investors to maintain a positive outlook and seek out undervalued stocks amidst the chaos, reaffirming his commitment to helping listeners find profitable ventures.

"I like to say that there's always a bull market somewhere. I promise you I'd find it just for you right here on Mad Money." [45:30]

Conclusion

This episode of Mad Money offers a comprehensive look into current market dynamics, strategic insights from industry leaders, and actionable investment advice. Jim Cramer effectively balances market skepticism with optimism, providing listeners with the tools and knowledge to make informed financial decisions despite prevailing uncertainties.

Transcript

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[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 mo market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to a special Las Vegas edition of Mad Money. Welcome to Cramerica. I make friends. I'm just trying to make a little money. My job is not just to teach, but to also Entertain. So call me 170cbc tweet me Jim Cramer after an okay day where President Trump indicated that he might be willing to be flexible in the tariffs day with the dow ultimately gained 32 points, S&P advanced 0.08% and the Nasdaq rose 0.52% after a hideous opening that made little sense. How do we handle this crazy environment? One way is to get out of the office as we did this week and talk to real business people like we did at yesterday's Home Depot manager meeting or today's reporting in Las Vegas. Hence why we're at the Wynn Resorts Delilah Restaurant to talk to the top brass at this deluxe hotel. Look, looking forward to next week for a game plan. I'm focused on the unrelenting negativity and how it's bringing about real but ignored values. Ignore it because it's very hard to buy stocks ahead of the tariffs and a Fed that's no longer willing to help by cutting interest rates. At least for the moment. Look, the bargains are out there, but no one dares to take them because the analyst hedge fund journal complex has created endless fear by emphasizing we are in a stag inflation moment. Even as I'm not buying it, not one bit. The glass is half full here or maybe more and the tariffs will soon come to pass and then they'll be behind us. You can see that stocks want to go higher. If we get just a little bit of a reason to be more positive about the looming April 2nd wave of tariffs, stocks about it doesn't have to be much. I mean, today during the midday press appearance from the Oval Office, President Trump signaled some flexibility on tariffs, saying, quote, the word flexibility is important word, right? He used it sometimes it's flexibility so there'll be flexibility, but basically it's reciprocal boom that honestly didn't provide all that much more clarity. But markets seem to like the word flexibility. I like it too. After all, the major averages were decidedly negative this morning, all then finish in positive territory, proving once again that there is too much glue. This morning. Investors are obsessing over the negative earnings updates that we got from the likes of Nike, FedEx, figuring that the former was yet another argument that the consumer is rolling over, while the guidance cut from the latter showed that, well, commerce in general is slowing down. The negativity even extended companies with reports that I thought were very positive, such as chipmaker Micron. When Micron reported last night at the close its shares initially climbed nearly 7% in after hours trading. But overnight investors decided that, well, in fact they hated the quarter and the stock was well in the red before the opening bell. Thankfully though, we got no additional reasons to be negative during the trading session and that word flexibility gave us a glimmer of hope. Encouragingly, we didn't even see the late Friday selling has become an unwelcome staple of the second Trump era. Investors have been booking profits due to the fear of weekend to social posts that could roil the market. But today stocks actually rallied into the close to preserve the modest gains of the day. So now let's look at next week's game plan with an eye toward what's bad. So we're ready. Take KB Homes, who supports on Monday after the close, the homebuilders inflation issues as mortgage issues, right. Rates are too high. The stock's down from just under 90 to around 60. So you could say those are now baked into the stock price. But some investors thought the same way about Lennar, another national homebuilder that reported an upside surprise in earnings but talked about how housing prices are going down, albeit slowly, but that was certainly enough to kill that stock. So I don't see a bottom KB Home, especially when it's trading at 42 in the fall of 2023. The stocks had a relentless run. Time to bide your time. Wait for a better moment. For the record, if you insist on owning a home bidder, do you mind if you just go with Toll Brothers? I think that's best to read. Lenore did shake off more than half its losses by days and closing at 115. That's only down 5. I saw at one point down 12. Lurking behind all the negativity here is the likelihood, yes of a recession. Recession aided by stagflation. Now if you think that's in the cards, if you think we have recession, you should really consider buying McCormick which reports Tuesday this spice company has been putting up big numbers but even better you buy their seasons when the economy rolls over because during recession people do less dining out, more cooking at home. Very positive from McCormick which dominates the spice and seasoning isles after closing it from Gamestop. Now this stock has been a propensity to go up both before and during the earnings report and then it just starts to lag because nothing ever really happens. Maybe they'll announce some plan to lever up and buy some bitcoin in the end you can't Game, game stop. Wall street used to love the dollar stores because unlike most retailers, they kept putting up stores generating good growth. They went in the neighborhoods other retailers steer clear of carrying what looked like inexpensive merchandise. Well that changed during the pandemic. They raised their prices and raised them and raised them in order to pass on the value proposition. And it's never been the same, right? There is no value proposition these days. The reduced sizes often give you the appearance of value, but people know when they're getting had. That's why I'd stay away from Dollar Tree. This thing does not represent the kind of value that we want or that I used to get when we used to go there all the time. By the way, even Wal Mart struggling. So when Dollar Tree reports Wednesday, I'm not thinking it's going to be great. We got a pair of small business oriented companies that also port Wednesday Cintas and Paychex. Cintas French Uniforms provides many other services small medium sized businesses. Last time reported the market didn't like it and this stock got drilled. I'm worried about small business formation right now and therefore I have to worry about a company like Cintos that sells uniforms and then takes care of them. As for paychecks, this payroll processor is a lot of bearish analysts covering it. And I got to tell you something, they got smoked in that last quarter. Just smoked by the great numbers paychecks. I think it's going to continue to do well. Be sure to pay attention to Chewy when it reports on Wednesday morning. This online pet food store has been going strong now for the last two quarters ever since they called the bottom of mad money. They're crushing. Thursday we're going to hear from Lululemon and oh man, this is a battleground. I mean just incredible. Lots of short sellers betting that Lulu won't sell enough because of its high price point. I think this is a remarkable company that makes me want to buy the stock on any weakness. We also have an investor day event for Dutch Bros. I like the Bros. I like the BRO CEO Christine Barone. But man oh man, this one expensive stock regional national natural growth story for the coffee chain is still very much in place, which means Josh Pros can be bought on weakness. We get pending home sales on Thursday and we're trying to assess whether there really is a huge slowdown in housing instead of just some anecdotal negatives by one company or another. Numbers can help spell it out. Desperate for something good that the Fed cares about. We also get the personal consumption expenditure numbers on Thursday and this is their favorite inflation indicator. Unfortunately hasn't been a good one. Sentiment turns to be Seems to be turning south. I don't know. I feel I know about you because of these geopolitical worries. But we lack hard and fast data that confirms this new worldview. And that's why I'm grateful for the University of Michigan consumer sentiment index on Friday. If it's real negative, it will confirm the action we've seen in the last couple of weeks. So here's the bottom line. There's a lot going on next week, but until we get some resolution on the trade front, you need to expect more uncertainty, more volatility like we saw today. There's just too much negativity and for the moment it seems impossible to fight it. Although when it gets extreme for no reason, as it did this morning, you still have to pounce, if only for a trade. Jonathan in California. Jonathan.

[Caller]

Hey, Jim. A big booyah from Studio City, California. Thanks for taking my call.

[Jim Cramer]

Fantastic.

[Caller]

I try to watch your show as much as possible.

[Jim Cramer]

Of course. What's up?

[Caller]

Yeah, try to. I try to watch your show as much as possible with my father, Saul who's a major fan and club member.

[Jim Cramer]

I appreciate that you're a member of the club. Go ahead.

[Caller]

Yeah.

[Jim Cramer]

Okay.

[Caller]

You and I met back in 2012 when you came to do a talk at USC. I pulled you aside and we talked about the Colbert Report. I'm calling to ask about a company that's not very exciting. It's an old one. It trades at a good multiple. It's the least controversial and it's vertical, which is crazy considering who its founder was. I think it should trade like a fixed income. And if the Fed lowers rates, that thing could definitely go up. That company is Ford Motor. What do you think?

[Jim Cramer]

I think Ford's got some warranty problems that make it so that earnings always seem to be a black hole. I am not going to bless that if you feel that way. What you just said. I know GM doesn't have that big a dividend, but I would prefer gm. Let's go to Tom in California. Tom.

[Bank of America]

Hi, Jim, longtime viewer and club member.

[Jim Cramer]

My fantastic. Thank you, buddy.

[Bank of America]

You bet. I appreciate your all your input.

[Caller]

My question today is about Costco and its massive decline in the last 30 days after announcing they they don't agree with or stand with Trump's ideas on the dei. I love this company. They pay much higher than minimum wage.

[Jim Cramer]

To all their employees.

[Caller]

And I just, I can't believe that they don't.

[Bank of America]

They don't have the wherewithal.

[Jim Cramer]

Don't worry about the di stuff of Costco. Don't worry about it. Here's what you think about. You think about profitability. I care about profitability. I care about growth. Costco's. Costco's got them. Costco is a buy. Stock is way too low. I know people are thinking it's rolling over. I think that'll prove to be wrong. Buy some here. Buy some next week. Let's go to David in Georgia, please. David. Hey, Jim.

[Caller]

Thanks for your time.

[Jim Cramer]

Of course.

[Caller]

I'm calling about Discover Financial Services, DFS.

[Bank of America]

I've owned it since 2011, so the.

[Caller]

Stock owes me nothing.

[Bank of America]

But I've been taking a little eating.

[Caller]

Here the last few weeks, like a lot of stocks. And I'm just not sure with the.

[Bank of America]

Capital One potential merger and everything that's going on.

[Jim Cramer]

Capital One merger is going to work. I know that. There are a lot of people who this week said bad things about the merger. They thought the just bond was going to be able to block it. I'm sticking with Capital One, which means I'm sticking with dfs. I think the deal is going to occur. I could be wrong, but I'm going to. But I believe that the likelihood is that it does block past all right, there's a lot that could move the market next week, but until we get more clarity on the tariff front, expect more of this crazy volatility. Please. On my money tonight they say what happens in Vegas days in Vegas, but not tonight. I'm boots on the ground bringing you my exclusive with the CEO of Wynn Resorts. Then I'm bringing you the rest of my conversation with OpenAI CFO. We look at the private players, work with some of the biggest names in tech, and later I'm rounding out my week out west by applying some of my key takeaways to this turbulent take. So stay with Kramer.

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[Jim Cramer]

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[Jim Cramer]

We're gradually making our way back from the west coast after hitting up Nvidia's GTC event earlier this week. Hey, now we're In Vegas. And while we're out here, I figured this would be the perfect time to check in on Wynn Resorts, the casino kingpin with operations Vegas, Macau, Boston. Plus, new project that we're going to talk about, uae. When Wynn last reported mid February, they deliver shockingly good quarter and the stock caught fire. Since then, it's pulled back substantially along with the rest of the market based on the worries about the consumer. So is this a buying opportunity or does it really make sense to be concerned? Boots on the ground? Let's figure this out. Let's check in with our host for the day, Craig Billings, the CEO of Wynn Resorts. Mr. Billings, thank you so much for having us. Welcome to Manpot.

[Bank of America]

Thank you, Jim. Great to be here.

[Jim Cramer]

All right. Not all casinos are created equal. And unless you've been out to Vegas. I have. You might not realize that this is really the deluxe place in Vegas. How does it distinguish itself? Why is it the destination for even the Eagles? I'm not talking about the Eagles that are in the sphere. I'm talking about the Eagles are from Philadelphia.

[Bank of America]

Right, the important Eagles, yes. Well, I tell you what. If you look back over the course of the past five years, our EBITDA per room premium that we have relative to our two biggest competitors has grown 150%. We always ran at a premium, but it's grown at 150%. So how do we do that? Of course, we have a very strong legacy of amazing design, which you can see in this room of amazing service. But we've also evolved the business a lot. We've evolved our food and beverage, We've evolved our retail. We've evolved our programming. Really, there isn't a component of the business that we haven't made tweaks to, really, in order to make sure that we are the place to see and be seen in Las Vegas. And that's paid dividends.

[Jim Cramer]

Now, one thing that I don't understand, we're going to work our way through this. If we talk about the properties, is that Your market cap's 8 point, you know, 8.7 billion. You have 2.4 billion in cash. I know there's debt. Let's put that away. I think that this palace right here could easily be worth 8 billion if you had to build it again. Your other properties are even more expansive. Explain to me if you can, the disparity between trying to build a new casino like this and what your stock prices.

[Bank of America]

Well, I guess avoiding the vagaries of the market and where the money flows have been over the course of the past couple of years, which has been disproportionately into technology. And as you, as you well know, if you look back at our total shareholder return over the course of the past, against really our top five competitors over the course of the past six months, one year, three year, five year, we're either first or second. So I really think it's an, it's an industry issue. Certainly we feel like we're undervalued, which is why we've been buying back a ton of stock, frankly. So as we look forward, what do we do? I think the most important thing we can do is continue to produce significant EBITDA out of these assets. We had a record ebitda year in 2024. We have to continue to delight the customer. And that shows up in our net promoter scores, which are higher than they've ever been, actually. And we have to execute and deliver on our significant, I believe, the best development project in the industry in the uae.

[Jim Cramer]

Okay, let's go there. You're talking about a project that's 3.9 billion. Now, at the time of your conference call, you were, you had finished up to the 35th floor. Where are you now?

[Bank of America]

42Nd.

[Jim Cramer]

40. And how high are we going to make it?

[Bank of America]

70? We do, believe it or not, we do about a floor a week for the exterior.

[Jim Cramer]

And when that's done, how big is the gaming market there and what, what do you think you're looking for?

[Bank of America]

Yeah, several analysts have come out with gaming market estimates ranging in the 5 to 8 billion dollars range. So to put that in perspective, the Las Vegas Strip, a little over 6 billion. So that's a substantial market opportunity. The project is about 5 million square feet, 1500 rooms, 25 food and beverage restaurants, 1,500 rooms.

[Jim Cramer]

Okay, there are a lot of places that are that big.

[Bank of America]

No, it's. It's substantial. An ample gaming floor and then a production show that actually we're creating from scratch. So we're really, really focused on the wealth and affluence and population in that market.

[Jim Cramer]

Now, I know you bought a place in London, and I thought that that was a small, a great gateway because that you need to have, you need to have UK know that that's now, I guess, the biggest, safest, most fun place to go.

[Bank of America]

You're right. So. And you framed it well. So it was a small acquisition in dollar terms, but a big acquisition in strategic terms because not only do we buy a database of customers that are from that region, many, many customers that we will interact with in the uae, spend time in London every year. And so that's a real opportunity to continue to delight them and build the relationship with Macao.

[Jim Cramer]

I've always felt that you own it. You've got incredible properties from the days of Steve Wynn. But I also know that you're dealing with a captive audience, so to speak, with the government. What are they doing and how is and who's coming now? Do you have good mass and good regular, so to speak, or high end? Describe to me what's happening in the state of play Macau.

[Bank of America]

Sure. Two things on that. First, the way we see Macao is here you have a market that's five times the size of the Las Vegas Strip. China is obviously the second largest economy in the Macao for us plays an important role really from two perspectives. The first is it drives free cash flow that we can deploy and use to continue to grow. And the second is it drives cross property play. Our market really is the premium end of the market there. So if you look at gaming revenue per table, we do more than anybody else there because we really service the premium end of the market. And that market has been relatively healthy over the course of the past couple of years.

[Jim Cramer]

And then you have Boston, which I don't really understand why. Maybe you can tell me. I mean I know the guys from Vichy. Tell me about the property. But why Boston?

[Bank of America]

We'll look at any gateway city that has a substantial population, substantial airlift. So Boston was very unique. It was a unique time and place and it's a unique market. And so Boston, which is primarily a gaming business, less on the non gaming side. It's great. It chugs along, it produces cash again. We can redeploy that cash. And it's a stable, it's a stable place.

[Jim Cramer]

Now when I think about the buyback and I think about the fact that you've got a great land bank here, what you can do with Dubai, I don't know. I don't know whether I want to buy back stock or build still one more place. But the stock is maybe the best buy of all of them because otherwise you don't think your place is inexpensive as it really is. Right?

[Bank of America]

Right. Right now I think you're right. So we like, we can look out to the free cash flow profile in 2027. We can look out to the step change in EBITDA from the UAE and we like the returns we get from stock. By the way, our land bank is in the UAE too.

[Jim Cramer]

Right, right. So you can do more there. Yes, I think there'll be people who say, well, who goes to the uae? I know that when you're in our business, people are the. I'm going to say it. The rich people in business go there. All right, but tell describe the people the UAE and why people say, well, why would I ever go there? Because it is kind of like a vacation paradise.

[Empower Financial]

Yeah.

[Bank of America]

Three things that are great about the uae. First, investors are lauded. Foreign direct investment is appreciated. It's incredibly stable. The governance is strong. Second, there's 10 million people. Compare that to a US MSA. There's 10 million people. 80% of them are expats. They're not Emiratis.

[Jim Cramer]

I don't know.

[Bank of America]

80 million. Over 80 million of airlifts in Dubai at the airport in Dubai. That's 45 to 50 minutes from our property. That's substantial. It's very significant airlift. And third, we will be the only operator there for a significant amount of time.

[Jim Cramer]

Oh, my God. Well, I love the problem with here is there's so much competition. No competition is fantastic. We're going to take a break. More to come with Craig Dohy, CEO of Wynn Resorts, after the break.

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[Jim Cramer]

Before the break, we checked in with Craig Billings, CEO of Wynn Resorts. But we had a lot more ground to cover in the casino space. So let's get right back at it. I went 30,000 people. We started. Now I want to go right. Here we are at Delilah. This was one of the most special places I've been. Just explain where we are right now. Sure.

[Bank of America]

You're in Delilah, which is. Right. Honestly, our most popular restaurant. Probably the most popular restaurant on the west coast right now. It's an incredibly beautiful.

[Jim Cramer]

On the west Coast.

[Bank of America]

Yes, it is renowned and it's very, very difficult to get to get a reservation. Incidentally, we normally have a no cameras policy in here. Jim, we thank you. We broke that rule for you. That's very kind of you, but yeah, it's incredibly popular Delilah and it's an amazing room designed by our wind design and development team, many of whom have been with the company actually going all the way back to the predecessor companies, Mirage and even Golden Nuggets. So I'm glad you like it and.

[Jim Cramer]

Just give me a sense of for instance betting here. It's March Madness right now. You can't just go and take a seat. The seats cost money.

[Bank of America]

Yeah. Demand is greater than supply. So we have to figure that out somehow. So there's, there's minimum betting requirements that you would need to, to get a seat in the sportsbook. And as you can see, it's jam packed.

[Jim Cramer]

Well, they said $350, but I just wanted to casually sit down and put somebody that doesn't work like that. So where do you stand on, on actually gambling in terms of trying to make more money? Very crowded. I had flutter on a couple of weeks ago. We have DraftKings on quite a bit. It's a tough market. Is it worth participating in?

[Bank of America]

Yeah, it's an interesting one here in Las Vegas. First of all, only a third of our revenue is gaming. And over the course of really the past four years we've taken a significant amount of gaming market share by all the things that I talked to you about earlier. How we've really stayed true to who we are and evolved the business outside of Nevada. You know, for years, if you go back to 1990, gaming was in two states. Right. And so for years and years regional gaming was a greater than GDP growth business. Now it's much more about infill, it's about stealing share. And so you have to choose your investments very, very wisely.

[Jim Cramer]

But the, the competition makes it so the gross margins aren't what I kind of would like. Right. I mean you just can't make as much money or have you carved out such an end, high end that this is just really a. Yeah.

[Bank of America]

Our business is different particularly in, in Las Vegas again because so much of our revenue is non gaming. Driven by room rates, food and beverage, etc. It's, it's a different business than a pure gaming.

[Jim Cramer]

Let's talk major events. Formula One, very popular with our viewers. Your relationship with it, it's great.

[Bank of America]

Our relationship with Formula One in general is great. They do an amazing race here. We end up being kind of the home base for a number of the teams, many of the drivers, really anybody who is, who is affluent and in attendance at the race. And it's really, really good for the town and really good for us.

[Jim Cramer]

Now let's talk about what you could do. You could build what another Two, three, four casinos. Do you have that kind of land?

[Bank of America]

If we utilized the. You may have seen the golf course out behind our building. If we utilize the golf course and the land that we own across the strip, we could probably do two to three. Our focus would be on the land directly across the strip. We have really three things in motion right now. We have the uae, where we also have a land bank, a great market where we will be the only operator for some time. We have. We're in exploratory stages in Thailand, which we think would be an interesting stage. That's what I understand as well. And then we have the land across the street. We're simultaneously thinking about all of those and how to deploy capital for the best return.

[Jim Cramer]

I think. Let's go into the consumer. One of the reasons I wanted to speak you so badly is the level of gloom is palpable. I have to think and I tell people that business is the source of greatest source of social change. Business is the source of jobs, sort of health care, puts food on the table. And in many ways it's not political. I have to believe from what I've seen here, and admittedly it's, it's anecdotal, not empirical, we're doing pretty well in the country.

[Bank of America]

Agreed.

[Jim Cramer]

And how are things holding up during this period where people tell me that the consumer is worried about tariffs, worried about all sorts of things they can't control.

[Bank of America]

Our customer is healthy and fine right now. Who knows what happens with the macro economy. Our customer tends to be more levered to the market and what's happening in the markets than they are in income or inflation per se.

[Jim Cramer]

In our market.

[Bank of America]

In the financial market. In the. Yes, in the financial.

[Jim Cramer]

Doing damn well.

[Bank of America]

Agreed. So we, what we see here is, is fine. There's certainly a lot of noise out there at the moment, as you alluded to on the. The other day I saw you on, on cnbc. But right now I'm still.

[Jim Cramer]

I look at, look, I walked down here, I walked up. I want to get a pair of pants in your area where the Brioni is. Brunello. I mean, yeah, look, I'm not going to spend $1,000 as I went. I want a nice pair of pants on the way back. But I do like the fact that it was Milan, that you have recreated Milan here and I don't know a lot of places that are Milan. Yeah, it works, doesn't it?

[Bank of America]

Yeah, it works well, particularly for our customer.

[Jim Cramer]

Right. And you have a, you have a customer base that I, I Don't know whether anyone else really has it. I mean that's. So how did the word get out that you're the place to go?

[Bank of America]

Well, there's a long tradition and legacy here of excellence. And what we've done over the course of the past several years is a lot of the evolutionary moves that I talked about. And we've also been incredibly deliberate about making sure the world knows about that. We've been more active from a social media perspective than we have ever been in the history of the world.

[Jim Cramer]

What is it? Tick tock. What do you use?

[Bank of America]

Everything.

[Jim Cramer]

And that versus linear. You think that linear Sunset.

[Bank of America]

We don't do billboards and TV commercials at all. No, we do, we do 100%.

[Jim Cramer]

100% high end would say that's a low end.

[Bank of America]

Now there's a lot of high end folks on Instagram every day. And so if we can create that sense of cnbc, fomo, if we can create that sense, we will drive business to the property.

[Jim Cramer]

So we're kind of T, we're kind of T Rex and Stegosaurus is on tv but people still watch something. Now how you guys do in terms of the whole, how do you guys do in terms of the whole Just in terms and explain how that works and, and how random it is. I mean I know that for the DraftKings guys if, if the favorites win, it's not so great.

[Bank of America]

Yeah. I tell you, if you're in the day to day grind gaming business, hold is actually quite, quite predictable. If you're in the high end business, hold is not predictable at all because you can have one player that can move you in one direction or another and you may hold extra high or extra low on any given day. And that's just part of the deal. We, we're fine with that kind of action because we know we can fade it. We know we have the business volumes to do deal with it.

[Jim Cramer]

But even just what TV game, what basketball game people bet on here, what's the most popular game to watch at that given moment? Yeah, I mean everything's in play in this place.

[Bank of America]

Everything.

[Jim Cramer]

So do you worry every day, I mean you worry every day about how much you took in on the Super Bowl? I know that was a really tough compare. Very difficult to try to figure out. The analysts keep asking, as if you didn't say it was a tough compare. You play, you play with pretty much an open hand. You have to think about that stuff.

[Bank of America]

When you're in this business, you have to think long term because hold will normalize over time. And so no, I don't worry. Every day, every morning I get an estimate of the EBITDA that we did the day before and I judge the business on the back of that estimate. But no, I don't sweat, I don't sweat the hold on any given day.

[Jim Cramer]

I remain mystified as people belong to the CNBC investing club know, I am mystified about the catalyst. But I think that you're absolutely right. When you look at the cash, look at the properties, it's absurd. And eventually absurd changes into great wealth.

[Bank of America]

Thank you.

[Jim Cramer]

Thank you very much. Craig Billings, CEO of Wind Resorts. Money is back after the break. Thanks. Earlier this week in San Francisco, we got a chance to speak with Sarah Fire, the CFO of OpenAI, which was the original pioneer of the generative AI business with Chat GPT. Even though this is a privately held company, it's got a valuation that's larger than most publicly traded ones and it's got its finger on the pulse of the most important trend in this market. That's why our interview went long and we decided to broadcast the rest of that interview tonight with Sarah Fryer. Take a look. Now, I want to talk about what if you had an outfit that made it so it was much easier to get to where you could really use you, that the onboard is much cheaper, that would be terrific. I would say that you're worth a lot more. But if the company that did that is from China instead of say Estonia or Lithuania, suddenly we're worried. So Deep Seek I think is a problem because we're scared of China, not because we're encouraged by Deep Seq, which is what we should be if we're you.

[Sarah Fryer]

So let me take a step back. Just where we are in our business. If I'd been here two years ago, we would have been the model company and that would have been what we've done. Our north stars always to be on the frontier of intelligence. That's where we are today, even with a Deep SEQ on the scene. But that's what all we would have been. But today we're now this much more multifaceted company that can really compete at many levels of the stack. I've already talked about infrastructure in Stargate, but now think about where we're going. We're going up into the API layer that allows us to work with developers and enterprises to get our technology broadly used in the world. Like with Grab or. You said Estonia. Government of estonia has deployed ChatGPT wall to wall.

[Jim Cramer]

Excellent.

[Sarah Fryer]

All secondary schools and they're fabulous there.

[Jim Cramer]

I wish Deep Sea had come from there.

[Sarah Fryer]

But then go right up into that layer where you have a consumer or someone in a workplace and there we're driving deep personalization. So it really knows you, Jim, me, Sara. So not just our demographic, it knows all of your work. Right. If you've done all of these research reports for all the CEOs who've ever visited you, you now have a stack of those. You're not going to switch platforms. And then finally you'll see us do more collaboratively. Like let's say we're both working on a video together using Sora, our video generation model. We are going to be able to share that back and forth. So you're going to be on our platform to do that. And 400 million people are doing this every week already. So we're already showing that we are very, very much becoming a multidimensional company.

[Jim Cramer]

So I mean look, you're from Wall street, but you're from Main street, you're from small business. What we thought was at scale wasn't until deep seek and yet somehow we thought that's bad for us. Is that a media generated fear? Because when I heard about this, the first thing I thought was like, wow, mass unbelievable. I didn't think scale could be 10, 8 billion people. I thought it could only be our country.

[Sarah Fryer]

Yeah, no, first of all, we want to make sure that AGI goes to everyone.

[Jim Cramer]

Right.

[Sarah Fryer]

And I think a big part of scale is cost. I like where you're going with that thought.

[Jim Cramer]

Thank you.

[Sarah Fryer]

And so I think about the business model being more about driving access. So if I can make more revenue, I can offer more access. If I can lower costs, I can drive more access. And so to me, the deep SEQ moment as a cfo, it allows me to go internally and say, okay, we need to continue to stay really efficient. This is why building our own infrastructure is important. Because the cheaper we make it. And remember, AI right now costs are coming down 10, 10x every year. It's insane. Our GPT4 API to GPT4 mini, which is our workhorse model today, cost came down 99% in two years. I have never seen anything like that.

[Jim Cramer]

In short, because the Nvidia is not come down in cost, what's happening is.

[Sarah Fryer]

First of all the accelerators, so what, what Nvidia sells are becoming much, much more productive. Okay, so on a per GPU hour, you are getting much more compute.

[Jim Cramer]

Okay, so he says it's 4 to 1. I don't know if that's the way it's Vera Rubins.

[Sarah Fryer]

We are so excited to probably be one of the first users of the next accelerator. So that is getting less expensive overall in terms of the output. But then the data centers themselves are becoming much more efficient and particularly at these mass scales that we're building, it really helps with economies of scale.

[Jim Cramer]

You've been able to interact, mediate everywhere. You've been able to make convert you convert people. You're incredibly wise about everything. Can we get a tweet which just says, you know what, I listen to Sarah Fryer on Mad Money and I'm no longer going to get mad at them and they have the money and I got to focus on Doge. Can we get that after listening to you?

[Sarah Fryer]

I certainly hope so.

[Jim Cramer]

I hope someone certainly should. Now, where are you guys with Are you where Amy Hood is on Microsoft where she says listen, what's good for them is good for us? Or is it important to recognize that Mr. Nadella wants to kind of make it so he's got his own thing and you've got your own thing.

[Sarah Fryer]

Look, I think we'll be strong partners. For a long time Amy and I have been friends.

[Jim Cramer]

Well that's why I bring her up.

[Sarah Fryer]

This 30 years, 20 plus years don't age me, Jim, but 20 plus years my bad. But look, first and foremost we are going to be really strong partners because so much of their technology is built on top of our AI. So don't lose sight of something like Copilot their APIs. Those are OpenAI's technology going into Microsoft product to make them smarter. So that's important. Number two, they're going to be a large majority of our compute capacity for many years to come. Even though we're now broadening out to work with partners like Oracle and Core Weave, Microsoft's super important. So it's why Amy and I spend most weeks together at some point and then finally credit where credit is due. Satya Sam got together when no one believed right that I was going to be the next area of computing. And I think they were first on the scene. So I feel they deserve credit and are going to continue to push the envelope here.

[Jim Cramer]

And as you are the king queen of partnerships, I imagine that you're working with Tim Cook at Apple not just because Auburn's number one, Duke's number two in the ncaa. But how's that relationship? Because I know that if I know that I have your stuff readily available Apple, it's going to make my Apple proposition even greater. I'm A total Apple house. So where are you guys? Yeah.

[Sarah Fryer]

So we are the partner to Apple on how do we create Apple intelligence on the phone now. Is there more work to do? Definitely.

[Jim Cramer]

And we don't know what the payment terms are.

[Sarah Fryer]

We are so early. We just rolled this out right ahead of the holidays. So we're about two and a bit months in. I think we have a lot more work to do. We would like to see more intelligence at that end point. I think Apple needs to keep watching what Google is doing as well and so competitively behooves them to keep working hard here. But I think we're bringing them literally the frontier models to do the maximum with new intelligence.

[Jim Cramer]

And what are they giving back to you?

[Sarah Fryer]

So they give us mass distribution to start with and then it's just the beginning of this relationship. I like that you brought up Duke too. Do you know that my son is going to Duke?

[Jim Cramer]

I understood that. Yes. I do some homework and now I'm ready raising it to 600 billion. That's how much I don't. It's not my money but that's what I think you should be worth. That is Sarah Fryer, CFO of OpenAI. And yes, I confess to being a huge fanboy of everything that Sarah Fryer is involved in. Man money's back at foot, right? It is time. It's time for the white round. Crazy ran, buddy. That's where I take your calls. Rapid fire. You say the name of stock at theater. Bye bye Bye sells a sale just third, not a course ahead of time. My staff prepares to grab it through while you're playing a sale and then the lightning round is over. Are you ready, Ski? That's our lightning round. Crimson. Let's go to Elaine and George. Elaine. Hello, Elaine. Yep. You're with Jim. What's up?

[Bank of America]

Hi.

[Caller]

Oh yeah, Jim.

[Jim Cramer]

Hiya.

[Bank of America]

I'm a long term viewer and I.

[Caller]

Just want to thank you for everything.

[Sarah Fryer]

You do for us small investors.

[Bank of America]

My company.

[Jim Cramer]

Thank you. Provides.

[Caller]

My company provides CPAP machines for people.

[Sarah Fryer]

Diagnosed with sleep apnea.

[Caller]

It's made a big difference in my life and I want to know what you think of ResMed.

[Jim Cramer]

Sure. Okay. So Mick Farrell came on the show and told me that I really that my. Let's say my reservations about recommended stock, which is about GOP Dash 1, were misplaced and the company's doing quite well. I'm with Mick. He's never steered me wrong. I like the stock. Let's go to Roger in Florida, please. Roger. Hi, Jim.

[Caller]

Boo boo boo boo boo.

[Jim Cramer]

Boo. Boo.

[Bank of America]

Yeah.

[Caller]

From Sunshine in Jacksonville, Florida.

[Jim Cramer]

Oh man, I love Jacksonville. Okay, go Jags. What's happening?

[Caller]

My question is about this custom customer engagement. A company that missed the glass quarter by a penny or two is Twilio Ticker Twlo.

[Jim Cramer]

Yeah, they did miss the quarter and I think that, I think the hype is too great on Twilio. I know everyone got all excited about it, but that's a very crowded field. I'm going to have to say no. I don't want to buy Twilio here. Can we go to Dave in Illinois?

[Caller]

Dave, Dr. Kramer. Holy cow. Interviews with Chuck Robbins, Sarah Fryer, Ed Decker, and of course otherworldly Jensen Wong. Jim, you're a national treasure, my good man.

[Jim Cramer]

Dave, you're way too kind. I wish I were. I wish I were. I wish I were half of what you said about me. But I thank you very much, Jim.

[Caller]

This $18 billion company company operates entirely in the US as a regulated natural gas and electric electric utility. It's also beating the market up 6% on the year. Of course, I'm talking about low beta nigh source.

[Jim Cramer]

Dave, I've liked Nice Horse forever. I've got to tell you, I recommended when I was at Goldman Sachs and that was like 140 years ago. I think you got a good one there. I like consistency. It's got it. As always, Dave delivers. Let's go to Ian in Florida. Ian.

[Caller]

Jim, how you doing?

[Jim Cramer]

I am doing well, Ian, thank you for asking. How about you?

[Caller]

I'm doing great, Jim, third time caller investing club member as well.

[Jim Cramer]

Fantastic, fantastic. Thank you for being a member.

[Caller]

Jim, I wanted to pick your brain about stock that the 52 week high was 230 and it's really been beaten up. It's right. It's around 115 now. It's had a lot of insiders selling lately, which kind of worries me. But I really like the company. Do you think it's a good time to get into Reddit?

[Jim Cramer]

All right, Steve Huffman did a really good job and people were really big on that stock ahead of the quarter. There was no way you could ever beat the expectations. It's now come down tremendously and I think this is a good time to start position Stock was up 6 today. I don't want to buy up 6. If it comes in on Monday or Tuesday, buy a little. Let's go to Henry in New York, please. Henry.

[Caller]

Hey Jim, Big thank you for sharing your encyclopedic knowledge of the stock market with us home gamers.

[Jim Cramer]

Thank You. Thank you for saying that.

[Caller]

With all the tariff talks on steel and aluminum, steel seems to be getting all the love. I'm wondering about the aluminum side of it. Buy sellers worry about aluminum.

[Jim Cramer]

Loom has been down for three straight Loom has been down three straight weeks. That does. That does not bow out for Alcoa. I want to stay away. Let's go to Eric in New Jersey. Eric, go ahead. Eric, you're up.

[Caller]

Hey Jam. Booyah. Just want to give a quick shout out to my roommate you. He's an Eagles fan. I know you're a die hard so just had to shout him out on here.

[Jim Cramer]

Well, he is. He has. He is horse sense. That fell okay.

[Caller]

He does. He has good taste and good horse sense. I'm going about a stock. It's down about 20% from its all time highs reaching I think early February right before they reported. They seem to be really catching up in artificial intelligence here. And you know, they just officially announced a huge acquisition in the cyberspace. Should have some, some synergies with their, with their cloud computing course. We called about Alphabet.

[Jim Cramer]

Yeah. You know, I got to tell you, the more I look at it, the more I am concerned that they bought the whiz. They might as well go to Genos for 32 billion and I'm concerned. Why am I concerned? Because I stopped going to Google. I can't be alone. There's just other places to go to and that. Ladies and gentlemen, inclusion of the night. We learned a lot this week, especially when it comes to our ability to spread fear simply by talking about the possible tariff disaster that could befall anyone who buys or sells imported goods. You saw it all morning. Although fortunately, at least on our hour, we decried the negativity and suggested that perhaps we should take a glass half full approach. I'm in the minority. The drumbeat of negativity is way too loud. It's very easy to create pessimism. You just keep talking about the potential damage from the tariffs and eventually it'll come true. You can scream inflation. Go ahead. We're in a real jam of a moment. The market can't get to where it might have to go, which is conceivably lower because there are many people who still believe that the tariffs will mean nothing. These buyers assume there'll be a pebble dropping in the sea. I think it will be worse than that. But I am not in the catastrophic camp. We just don't do enough importing. This country make that much of a difference. Then there are other people chiefly I think traders who decide that the administration's slapdash approach to these tariffs has created so much confusion that we could be headed for a stagflation economy. And nobody hates stagflation more than Wall Street. In that environment, only the short sellers win. Right now. Except for days like today which start negative and go positive, the latter camp has the upper hand. Of course, I want to be empirically some industries will be hurt badly because they have a huge concentration of product from overseas. We sold our Best Buy for the Chapel Trust because of the tariffs. I have to imagine that Macy's or Coles could get hung up on these things too. You know what? Even Walmart could get it, although they carry a proponent of US goods mostly in the grocery section. But if we're talking about the direct impact of tariffs, I actually think that the vast majority of us won't really know the difference. It won't cause another wave of price increases like we had in the pandemic. Then again, it won't be transitory either because the President's really eager to slap on tariffs or raise revenue. He's a true believer. Still, to circle back to what we saw this week, it would be easy to say that we saw Home Depot doing great. We saw that OpenAI can't handle all the queries and starting to make good money on subscriptions so it can afford buy more and more chips from Nvidia. What else? I mean I have never in my 40 years of knowing Michael Dell ever heard him be this bullish. And that includes the 90s when things were going great guns. We saw that Arm holdings is desperately trying to meet demand. Tariffs won't stop this kind of technology. Of course. These stocks are part of the S&P 500 right now. They're considered heavy. There are so called death crosses all over the place. A chart is termed that means the stock's going to really roll over and hurt you. And yes, it is hard to stick your neck out because the President's people have been able to quell fear. So the hunker down is going to hurt retail. Even if you believe that the White House is very good reasons to get tough on our trading partners and they really do. Although the administration is bad at articulating them. And if the President makes some exceptions and things are all part of one big no exclusions policy, well that's pretty positive. Me, I don't know. As Jensen Wong said that we simply don't have enough people to do what's needed in this country that matters. It's why we need physical artificial intelligence that he showed us to do the work. Otherwise we need to keep outsourcing overseas and that's about as long term bullish as you can get. We need the robots. Bring them on. But I'm not going to get in the way of a freight train of grizzlies. No, I can't do that. Sell, sell, sell, sell, sell, sell. I'd rather step aside the tracks and let them pass. In the end, what I saw it here is bigger than a head and shoulders pattern. A 50 day moving average crossing over the 200. The charts can't stop it. The bears can't stop it. But the palpable sense of dread that analysts and some of my compadres in the media can keep you out of it. They can. What can I say? Journalist fear. Marketing has done more to keep you out of big long term winners than any other force. That's a shame. You can't afford to let it get you even when people are temporarily right to be concerned. I like to say that there's always a bull market somewhere. I promise you I'd find it just for you right here on Midmoney. I'm Jim Cramer. See you Monday.

[Comcast]

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 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 Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University we offer a relevant education that's designed to fund 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 Eduardo.