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Can any enterprise software stock escape that gravitational pull pool of a market that dislikes the entire group? If there were, it would look like something called Cloudflare and Internet infrastructure play with a cybersecurity kicker. This is not something that can easily be replaced by some piece of code written by the platforms. But somehow that still hasn't saved the stock. Cloud reported three weeks ago it delivered a top and bottom line beat. I've got stuff which says it was, it was right of course for the Olympics and it was the gold medal of the period. In response, the stock popped 5% in, but then it drifted down and it's down 31% from its high four months ago. Stock is pretty expensive on a price to earnings basis. Then again, it's holding up much better than many of its other rivals because that is fabulous growth. So let's take a closer look. Matthew Prince, he's the co founder, co chair and CEO of Cloudflare. Mr. Prince, welcome back to Mad Money.

Guest/Interviewee (13:32)

Jim.

Interviewer/Host (13:32)

Thank you having me.

Jim Cramer (13:33)

Okay, so Matthew, checking your Twitter file, whatever may come next from Iran, Cloudflare is well aware of, of their techniques, not worried, and fully prepared to defend our customers. Tell us about your interaction, what you know about Iran and what you can add to what's really happening behind the scenes.

Interviewer/Host (13:50)

So Iran is one of the big cybersecurity players along with Russia, China, North Korea, they launch cyber attacks all the time. They're really good at it. We are good at defending against it. What's interesting is what you usually see in these kinetic conflicts is right before there's a conflict conflict, you'll see a spike in cyber attacks. And so on February 27th, shooter form, we saw a spike in cyber attacks coming out of Iran. What was interesting though is usually those cyber attacks stay high in these kinetic conflicts. That's not what happened here. We're actually down 90% from those peak levels below what baseline levels are. And what that indicates to me is actually the kinetic war. The bombs being dropped have actually disrupted the command and control infrastructure inside of Iran and, and that's affecting even their ability to launch cyber attacks.

Jim Cramer (14:37)

Wow. Okay, so it looks, looks like that they're, the anti Iran faction may be aware of this kind of thing.

Interviewer/Host (14:44)

Yeah, and I think we shouldn't count our chickens. They can rebuild and they I think will use cyber as a way to strike back against the west and from some of their affiliates or other groups like Hezbollah, we're still seeing an increased level of cyber attacks. So they're. And Cloudflare is incredibly good at stopping this. But what I think is the most interesting is where in most of these, these sorts of conflicts, you see an elevated set of attacks. In this case, we've actually seen a significant drop in what's coming out of Iran.

Jim Cramer (15:12)

Now, I know in your 58 page. Very thorough, very thorough. Cloudflare threat report. Thorough and also a little scary, frankly. There is the Muddy Krill, the Convolute Krill and the Crusty Krill. They sound funny, but they're not, are they?

Interviewer/Host (15:26)

Well, once upon a time, we would use that. We would give attacker groups names that made them sound really kind of ominous and scary and, and fearsome. We tried to take a different way of making them sound absurd and small and like insects or bugs or bad things. What we're seeing, though, is that around the world, cyber is being professionalized where they are actually taking the attacks and focusing very much on how can they get a return on investment, how can they actually make sure that they're making money from these attacks? And, and that's what's happening over and over again all around the world.

Jim Cramer (15:59)

It's funny, when I read it, Matthew, I was saying, you know, these could be clumsy toad out of China, a ponytail. I mean, I would buy shares in these things. I mean, they're businesses, aren't they?

Interviewer/Host (16:09)

Are absolutely businesses. And in some cases, they've actually professionalized where they've got someone who actually hacks into the account, then somebody who will run the sort of the campaign to encrypt all the data within a customer, and then someone who actually runs the. The ability to extort money out of these. These companies. So these have become very professional organizations. And some level that's a bad news, but in another level, that means we have ways of disrupting them and we have ways of actually striking back against them, targeting various aspects of how they're doing it. And every single day, the Cloudflare team is on top of these security threats and able to stop them. And we're really proud of the enormous percentage of the Internet that we protect.

Jim Cramer (16:43)

You should be. You got a $42.5 million annual, annual volume. I mean, one of the biggest aspect, one of the biggest contracts ever. That's a huge contract. Yeah.

Interviewer/Host (16:56)

And again, I think what we're seeing is that more and more the people who are building and protecting what has to be key online and in this case, it was an AI company, one of the large AI companies that wanted to make sure that they could stay safe. Whatever they were doing online, they're turning to Cloudflare to do that. We see that over and over again across the all kinds of enterprises, not just from a security perspective, but increasingly because we have this infrastructure that spans the globe. When people are building the future, they're building it on Cloudflare. And so no matter what, in the future, there's going to be more code than there was yesterday.

Jim Cramer (17:27)

Right.

Interviewer/Host (17:28)

And what that code is, increasingly where people are building, that is they're building on cloudflare, they're deploying it on Cloudflare, and we can make sure it's fast, secure, reliable, all around the world, whatever audience.

Jim Cramer (17:38)

We should tell people what percentage you are of this, because it's so unbelievable.

Interviewer/Host (17:42)

Well, we've said for a long time that we're more than 20% of the Internet sitting behind Cloudflare, and we don't want to sort of say exactly how big it is, but we've continued to grow and we just think it's so important to see that. And one of the things that give us that ability is that's not only an ability to make sure that we can keep everything online, make sure that the developers of the future can deploy code and get the advantages of our network, but we also have the best sensor network, being able to see what those threats are. And so one of the things that's really amazing is we're starting to experiment with giving our customers actually AI systems to look through their code, find the vulnerabilities, and then we can automatically protect in a bespoke way from the individual vulnerabilities that an individual customer has.

Jim Cramer (18:22)

That's something you do. I know Anthropic says they can do, but I'd rather have you be the 360 the whole way, be able to look in. I don't want to hand it off to Anthropic.

Interviewer/Host (18:32)

Yeah, well, and again, I think that Anthrop is a terrific partner to us and someone that, you know, is, is. Has been a great customer to us. And what we see is that as they succeed, we succeed as well. But we want to make sure that no matter who you use, whether you're using Anthropic, using our own solutions, you're using a great company like CrowdStrike or Sentinel One, whatever it is, it gets fed back into the Cloudflare network, and that we can be that. That first line of defense to be able to protect you whatever comes.

Jim Cramer (18:57)

I feel like we've given short shrift, something that I personally take very, very seriously, which is that you're a protector of journalists. There will be no journalists if these major sites, the air can just scrape everything you are the way that it can be stopped.

Interviewer/Host (19:14)

I think that's exactly right. And we think that there's actually good news in the journalists and content creator space where we know that there are willing buyers. The AI companies want as much data as they they can get. What we need to make sure is that they can't just get it for free and we're helping that. I'll tell you the thing that I'm the most worried about, though, and I know this is something you care a ton about. I'm worried about what happens to small businesses. Because what I think is going to happen is more and more the way that we interface and buy things online is going to be through our agent. We think about your small businesses that you do business with. You do it because it's convenient or because you have a personal relationship with them. Your age doesn't care about any of those things. And so I think it's going to be this massive consolidating effect. And so what we're thinking about is how can we partner with great companies like MasterCard, Visa, PayPal, you know, Shopify to actually how do we create that toolkit where small businesses are not only going to be able to survive, but thrive in this world that's coming and that's key to what we have to do.

Jim Cramer (20:07)

The small businesses most easily blackmail. They might have something the threat would. The threat actor could put it online and rep their business.

Interviewer/Host (20:15)

Totally.

Jim Cramer (20:16)

And you're the only way it can be stopped because most of the people don't know. They're not sophisticated to stop the threat. Yeah.

Interviewer/Host (20:22)

And so I think that that's why so many small businesses use us. But now, as we see this new threat coming from AI, where again, it's this massively consolidating force of you. I go back and watch old reruns of the Jetsons, the old cartoon show, and you ask, where did George Jetson get his information? The answer is Rosie the helpful robot. And you say, rosie, go buy me some eggs. Rosie didn't say, I'm going to support the local bodega down the street. That's always been nice to me and, and has great aids. Rosie's going to say, I'm going to go get eggs from wherever it's cheapest or fastest or whatever is best. And over time that could be major consolidated forces. We need to make sure that that local bodega has the ability to say, hey Rosie, you should shop from us. We need to support small business.

Jim Cramer (21:00)

Boy, do we ever. Because if it's just. If it's just Costco and Wal Mart and Amazon, there's really not a lot of chance for advancement in the country. That's very good that you that. And we didn't get to talk about what you do with elections. That'll be next time. Moldova, which is a place I know very well. I mean, I don't know. I thought that they almost had to be corrupt elections, but you kept them from being that way. That was. That was terrific. That's Matthew Prince. He's Cloudflare co founder and co chair and CEO. And it's not going to be beaten by some bot. It just doesn't work like that. Mid money's back into the brick.

Interviewer/Host (21:33)

Coming up, oil prices. Prices are rising as the war in Iran continues. But will the high prices stay if the conflict ends? Kramer's going off the charts to search for answers next. Olivia loves a challenge. It's why she lifts heavy weights and likes complicated recipes. But for booking her trip to Paris,

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She bundled her flight with a hotel to save more.

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Of course, she still climbed all 674

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steps to the top of the ivy tower. You were made to take the easy route. We were made to easily package your trip. Expedia made to travel flight inclusive packages are atoll protected. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information

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What do we make of the surge in oil prices in response to the war with Iran. We've seen this kind of spike before, haven't we? Even if the current conflict is a lot more intense than our bombing run against Iran's nuclear facilities last summer. So to get a better read on the situation, we're going to go off the charts with the help of our resident commodities experts. She's been very right on oil. Her name is Carly Garner, a brilliant technician who's a senior commodity market strategist and broker to Carly Trading. She's also the author of the Carly Perspective newsletter. And her view is pretty simple. If not for the military action in Iran, she thinks oil would be in the 40s while the price of crude has rallied now that we're in a shooting war with the river. Corner points out that we've seen multiple rallies like this since oil peaked In March of 2022, each one accompanied by the threat of supply disruption. But in reality, not many barrels of oil were ever really taken off the market. This time we've got the additional wrinkle of Venezuela, which is upping production in a way it simply couldn't do before when it was under heavy sanctions from our government. That's why to Garner, the recent run in crude is all about Iran and and whenever oil rallies on bloodshed in the Middle east, that tends to be about fear more than facts. Keep in mind Iran's also spent decades under heavy sanctions. If they wind up with a pliable government, a regime that we may like, this war may end up increasing oil production by a lot. Even if there's no real regime change, these oil spikes tend to be temporary. Garner points out that in May of last year, oil rallied from a multi year low of $55 a barrel as our government was quietly planning those strikes on Iran's nuclear program. But by the time the world learned of the strike, the oil market was in the process of peaking and eventually gave back all of those gains. When you look at the let's give you. Let's look at a weekly chart of West Texas crude. Garden said it's broken through the same trend line that it rallied above last summer and even tested its 200, 200 week moving average of $76. Right. There's the test. Okay. Unlike last year, the current strike on Iran has been well telegraphed. But Garner expects it to play out the same way. As long as you resistance at $76, 800 holds, which it has so far. She says the bear market and oil remains intact and long term. She sees it heading $44 per barrel. Simply put, in an absence of a prolonged conflict that threatens oil production across the region, she's betting this oil spike plays out just like the last six. How bullish would that be? Garner says you need to watch a couple of key, key level $67 and $65. Okay. The former would represent a retest of the trend line breakout and the latter tends to be the pretty pivotal, really pivotal price here. If we get a breakdown below 65, okay, then she thinks that there's a high probability of oil heading to the 40s that would be credible. Of course, if oil can break through its ceiling resistance at the 200 day moving average, Garner thinks that would be a sign that we've entered a new bull market. She's not expecting that kind of move though. But if it happens, oil might see 90 to 95 before it stops going higher. That's where we go at this. A ram where drags all much longer expected. And that's why people are so worried about a bear market. From what's going on, what makes Garner so confident that oil remains stuck in bear mode? All right, check out this chart of the oil futures with data from the CFTC commitments of traders report the green line. Okay. This is the big line. It tracks the net futures position of so called large speculators, meaning money managers. And they've been buying oil rallies with less and less conviction. You can see that's not really it's going that way. It's not spiking as you. If you really felt that they were right, I mean if they were making a big bet. By the way, this is exactly the kind of behavior we saw from large speculators. Shortly before the price of oil collapsed in 2020, they were buying dips but buying fewer contracts each time until eventually the bottom fell out. Definitely not bullish that we are seeing the same pattern. That's why I'm not as concerned about that $90 pricing at that $90 target, which I really don't want, really don't want to come true. One more point on oil. Take a look at the weekly chart of the dollar index which measures the greenback against basket foreign currencies. Over the past nine months, crude oil and the dollar have maintained a negative correlation about 50%. When the dollar goes down, oil goes up and vice versa. Why does that matter? Because Garner thinks the dollar has finally started to bottom here. Can you imagine? After a prolonged downturn over the last year, we got a triple test of the lows and it's already started rebounding with the Dollar index possibly headed to 100 in the near future. Again, a stronger dollar translates to weaker oil prices. In fact, it's bad news for nearly all commodities. And you know, we've seen spikes in a lot of commodities. While we're on the subject commodities, let's talk about the volatility in precious metals and crypto currencies. And Garners view volatility as one area often bleeds over to others. Gold and silver had been both flying, but now they are starting to pull back hard from their highs. It's really pretty remarkable. Lots of people bought these metals with borrowed money and once they start getting margin calls they often end up selling more stuff, stable assets like stocks in order to raise money. I talked about the Korean selling our Micron and our Western digital and our Sandisk at the top of the show. We saw the same thing when crypto broke down this fall. Now last night I mentioned that Larry Williams, legendary market historian was calling for a bottom in bitcoin. He sees it running into May or June. You know, I like that call a lot. But what Garner looks at the weekly action in bitcoin, she feels a lot less sanguine than Larry. If we look at what happened when bitcoin peaked in 2021. So we go back all the way to here, it already sold off hard until it found a 4 year 15 buck. $15,000. Remember this used to be dramatically lower. This past October bitcoin made the exact same double top pattern we saw in 2021. Double top. And if we see a similar decline then Garner thinks it could fall all the way to $30,000. Mean there's a lot more downside here. This is her target from where she's sitting. The moment Bitcoin collapsible 78,000, the bears took control. They're still in charge even after yesterday's rebound. Then again, if you look at the decline in 2022, early that year bitcoin rebounded like crazy for most of the first quarter before resuming its downtrend. Gardner wouldn't be surprised if we get something similar. Maybe it makes a run at 78,000 to retest the two resistance. That sounds reasonable to me. She's betting that rally fails and the sell off comes right, right back. I have been a longtime believer in bitcoin but I have to admit that all things crypto pretty much trade alongside the market's appetite for risk. That that's the only thing it really correlates after. I used to think it correlated with trouble, correlated the dollar. It didn't correlate with any other risk. It's a pure bet, an animal spirit bet which frankly is hard to predict in times of turmoil. It's not what I thought it was. Here's the bottom line. The charts as interpreted by Carly Gardner suggest that the war with Iran is is the only thing propping up the price of oil. And if history is any God, she doesn't expect that to last very long. And her view this is just a temporary reprieve from the oil bear market. She's not feeling too optimistic about Bitcoin either. Let's go to Blaine in Maryland. Blaine. Hey Kramer. Pleasure to speak to you sir. Right back at you. I was wondering your thoughts on Union Pacific and the possible merger coming up. Union Pacific has just had a parabolic move. I always point out the transports have parabolic moves too. When I see a parabolic move I just don't recommend it. Parabolic means going straight up. I cannot recommend a stock I really like Union Pacific until it goes lower. And my work would say that you can't buy this $265 stock until it goes down at least $30. The charge is interpreted by Carly Garner suggest that the word and Randis only popping. That's the only thing popping up the price of oil and it's all temporary. She doesn't expect this to last very long. This market would take off if she's right much more made money including my sit down with Carrier. Could the longtime H Vac company be a cool new way to play the data center builder? Is there a possibility some big orders down the road? I'm checking in with the CEO to find out. Then are the cracks forming across the private credit sector a warning sign for the rest of the market? I'm sure where I come down on the the space and it's very dispassionate of course Oil calls rapid fire. Tonight's digital lightning round. So stay with Kramer. It's been a good year for Carrier Global. The heating, ventilation, air conditioning company. The Stock that's up 16% so far in 2026. When Carrier reported a month ago their top and bottom line results came in little weaker than expected. That thanks to weakness in North American residential construction. We all know about that. The full year forecast I think was justifiably a little cautious. But inside that disappointment. Carriers increasing a two speed story. The residential business is highly cyclical and it's still in the in the bus phase of the boom and bust cycle. But their commercial H Vac and aftermarket business is doing Extremely well, in part because it's got some data center exposure. Doesn't hurt the carrier if it's the halo rubric. Heavy assets, low obsolescence, you know, we like that during the show. So can this stock keep climbing? Let's check in with Dave Gillen, he's the chairman and CEO of Carrier Global to get a better read on the situation. Welcome back to Man Money after way too long.

Guest/Interviewee (32:40)

Tim, thanks for having us.

Jim Cramer (32:41)

Okay, so Dave, I feel like that you and I talk and I know the new carrier. I want everyone else to know the new carrier because you've really been reinventing and reinventing. So tell us where we are.

Guest/Interviewee (32:51)

Well, if you look at our portfolio, 40% is exactly what you just said. It's our commercial H Vac business and our aftermarket business. Both have grown double digits for five years in a grow in a row. And we're going to grow double digits again this year. Commercial H Vac helped by data centers. Our data center orders in North America were up 400% in the fourth quarter. And the first quarter is going to be great again with orders. So backlog great orders, great data centers driving great. Very, very strong double digit growth in commercial H vac. That aftermarket piece, recurring revenues double digit, very, very strong. As you just said, the cyclical piece, the residential piece we did cycle down in the US and in Europe last year, those will revert to the mean 90% of the people in the United States have air conditioning. It's a replacement business. When they fail, they replace them. We revert to the mean growth double digits from them. So both we've said some, as you just said, some conservative guidance for this year. We feel very strongly that as the macros recover, will recover with them. High margin businesses, really good share, when they recover, will drop through at very good margins.

Jim Cramer (33:53)

Okay. So for the investing club, I've been telling people you have to have a chin in the game for if Kevin Marsh comes in, starts taking rates lower because the housing market has been dormant for so long, I can't believe that the Fed doesn't see that. But I always look to see if someone has a lot of inventory, they're not going to make a lot of money because they're still going to have to just get it out there, not, not full price. You, on the other hand, are incredibly mean. If we do get something, it's, you're

Guest/Interviewee (34:17)

in great shape, 100%, you know, not only our inventory but the inventory in the channel. It was very important to us in the United States to End with inventory levels down 30% year over year. We ended January down 30% year over year. So as the macros recover, we will recover with it. We'll be watching about four key macros. We'll watch interest rate and mortgage rates. We want that to start with a five here in the United States. The 30 year. We'll look at consumer sentiment, we'll look at existing home sales, we'll look at new home sales. We've assumed they all stay somewhat depressed a little bit. As they recover, we recover with it.

Jim Cramer (34:51)

All right, that's great. Now I am concerned about the, the competition in the data center. There's some very good companies in there. How are you able to take share? I mean look, we got Vertiv in there. I know Eaton's trying to get into Johnson Controls is in there. How, how do you upend them?

Guest/Interviewee (35:06)

We have 100% been taking share. And we've been taking share because we've innovated a bunch of new products. We've come up with a 2 and a 3 air cooled megawatt chiller that has maglev bearings. We have water cooled chillers that were very innovative. That helped us take a lot of share. We've introduced a lot of new capacity here in Charlotte in North Carolina in the United States, another facility here in North America. So we have the capacity, we have the products, we have the relationships with the hyperscalers. And when you look at the investments that our customers are making, $7 trillion over the next five years, an additional 125 gigawatts of of capacity. And Jim, if you think about a building like we're in here, the New York Stock exchange first had air conditioning three carrier back in 1903. 400,000 square foot facility, three chillers. A 1 gigawatt facility for a data center can have 500 chillers. So the opportunity in front of us is unprecedented.

Jim Cramer (36:03)

All right, now tell me about Europe. You made a big bet on heat pumps, but Europe again is weak. So how are you going to be able to make that turn without some GDP growth?

Guest/Interviewee (36:14)

Well, the European market will again revert to the mean. So if you think about Germany for example, the last you got to over a million units in 22 and 23 last year were 600,000. The average is 800,000. So that will revert to the mean. And what's happening now if you look at what's happening with gas prices, folks in Europe and Germany went to bed and you were looking at natural gas prices at about €30 per kilowatt hour you woke up today and it's about 53. So about an 80% increase in just four days. So when you look at that, you do not want to be relying on natural gas and boilers in your home. So you will unambiguously see this transition.

Jim Cramer (36:57)

This is a break for you. I've been trying to figure out what the spur would be because it's not like these governments are now saying, listen, I'll get give you a 50% off if you buy one of their carrier heat pumps. You needed some spur. This could be it.

Guest/Interviewee (37:09)

This could be it. There are still subsidies, but we do not want to rely on subsidies. So Germany, I think will continue with subsidies. Many countries will have that to help with the transition to electric heating. But regardless of that economics and the gravitational force will drive this transition to heat pumps.

Jim Cramer (37:25)

All right, should I focus it all on the your home energy management system because my bill is so gigantic? I've never thought about it.

Guest/Interviewee (37:33)

Yeah, this is a very once in a generation opportunity for us because if you look at the United States, 13% of the capacity during peak is just from carrier products. We're in one out of every three homes. We're in a number of buildings. So we're using up 100 gigawatts of products and just carrier homes and buildings. So what we're introducing is a combined heat pump and a battery so you can run your heat heating and your cooling off of the battery during peak hours. If you think if we just got mild penetration with that offer, you could alleviate significant tension on the grid during peak hours. It's a true game changer. We're coming out with a product later this year. We're working with 10 utilities in the United States. We're working with a couple of hyperscalers because one of the issues in the United States is transmission. We have point of view. Think about a new data center going into Virginia.

Jim Cramer (38:22)

Hmm.

Guest/Interviewee (38:22)

We would put our integrated battery heat pump in the greater community and it could alleviate significant tension on the grid.

Jim Cramer (38:28)

Oh, that'd be great. Virginia. Of course the rates are up. I know that. Not necessarily the data center's fault in some cases, but it's nice to hear a solution rather than just a problem. Thank you so much to Dave Gitlin, the chairman CEO of carrier. There's a lot going on here. I really like it. Don't forget, rates will come down, housing will come back, and it'll really be a big snap. Meanwhile, data center point be terrific. Bad money's back yet to the br.

Interviewer/Host (38:51)

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

Jim Cramer (38:58)

Next. It is time. It's up for the white rap program Stop K Bar ahead of time. And just my stair prepares to grab a silver fly. We plan the sound and then the lighting round is over. Are you ready? Ski day. Time for the light round question with Ed in Virginia. Ed. Hey, Jim. Booyah, Jim. Hey. I'm looking at a minor in the US Critical space record silver production. Just signed a joint venture military grade antimony. Is this a project? Walt Clayton almost talking about USAs America's gold and silver. Well, okay, here's the problem. I like that situation. But we've just had our parabolic move. And I always demand that people do some selling after parabolic moves. That's been my view since I started. It's 40 years worth of it. And it's very rare that I've missed. Very rare that I haven't missed a gigantic decline. You have to miss those declines. Let's go to Aspen. Oh, in Montana. I thought was in Colorado. Aspen. Who knew? Hey. Hey, Jim. My name is Ben. This is my daughter, Aspen. She has a question for you. Okay. Hi, Jim. Thanks for taking my call. Oh, thank you. And big fans of how to make money at Amor. Our question is on Audi. Odd. With the recent pullback, would now be a good time to start possessions? You know what? I gotta tell you, Astra, that quarter was so bad that my rule is you got to wait another full quarter before you put that money in. I want to thank you for your kind words. I did write the book so everybody can read it. So it's not necessarily, you know. What it's about is someone like Aspen and her dad talking to each other. That's how I try to get it for the big wealth transformation. You're right to think about oddity, but I want you to think higher quality. I would even buy Ulta. Okay, I like Ulta. I like CBS too. Why don't we go to Billy in Connecticut? Billy. Jimmy, stop the madness. After dropping 18%, is this the stock to avoid or a buy in opportunity right here or leave? Man, you are going into the lion's den. I don't particularly like going into the lion's den. I'd rather have you buy Nvidia. I think Nvidia's had a lot of good things happen in the last 72 hours. No one's paying any attention to them. Except for moi. That's French. Okay, let's go to Craig in Illinois. Craig. Hi, Jim. Great talk to you. First time, long time. All right. Long term shareholder of Nordic American Tankers, which has been up on parabolic and big volume lately. And my question is, should I sell it? Ahead of. I want you to sell half right now. I want you to sell him. I actually don't even want to talk to you. I want you to get off the phone and sell half. It's really key. Then you can play with the house's money because this thing has been a light on shareholders for so long. I can't have it hurt you. All right, let's go to Jared in New Jersey. Jared. Hey, Jim, thanks for taking my call for about five years. I got a question on First Solar.

Guest/Interviewee (42:03)

I know you've talked about it a

Jim Cramer (42:04)

few times in the past. That was a really big quarter I got. You know, I know, Jared, I shouldn't be so short sighted, but I mean, that was one awful quarter. We got to wait another quarter for that one. And that. Ladies and gentlemen, conclusion of the lightning round.

Interviewer/Host (42:22)

Coming up. With the private credit exodus continuing, Cramer is diagnosing just what the cause is and letting investors know if there's any reason to stick around.

Jim Cramer (42:32)

Next. Over the weekend, I spent hours analyzing the woes of private credit, the pools of capital aggregated by some very smart people that are sold to institutions and most importantly, individuals. I then put together a long white paper for CNBC Investing Club members that talked about how much trouble we were in because of these funds. I predicted they could be a real cause of pain for all investors, even if you've never heard of them. Today we found out that one of the best private credit funds, this one run by Blackstone, saw massive redemptions as individuals feared that they'd lose their money. Why do they fear it? I think the only thing they had to fear was itself. Now you can laugh about that line. Maybe it's crazy to invoke FDR, the Great Depression here, but remember back to 2008 during the Great Recession and the stock of Goldman Sachs traded down to the 50s. Back then I got a call from my good friend Lloyd Blankline, then CEO of Goldman Sachs Black. I wanted to talk about how we had a repeat of that fear itself moment and that the system would hold. A fabulous story, by the way that he tells his terrific new book, Streetwise in Retrospect. Once the highly levered players collapsed and the Federal Reserve realized it had to stop the chaos and destruction In March of 2009, we realized that the only thing we had to fear, indeed was fear itself. Because the bank figures have been taken off the table. They were done. Which brings me to the present day. Right now there are four institutions of private credit funds that are important, negatively important to the stock market. Aries, Apollo, Blackstone and Blue Al. These are all big institutions and their funds have done well for investors over time. Their private credit funds tend to be invested in very good companies, mostly leveraged buyout targets. They were eager to help tech companies take themselves private because they temporarily gone out of style on the Wall street fashion show. And tech always comes back, doesn't it? But for those who own shares in these private credit funds, which are really kind of banks in disguise, there's fear. And that fear has caused causing an attempted run on the bank. I say attempted because these private equity funds were not designed to let you quickly withdraw your money. The investors went out because they know that these funds are loaded with with debt to companies that seem a lot like the stocks that keep getting clobbered by AI in the public markets. The funds have nominal escape hatches. Blue Al, the most controversial because it has the most tech exposure, had to block the escape hatches on a couple of their funds. They end up selling some assets from the funds are giving all investors 30% of what they put in. But now they pause any additional redemptions people went out. Turns out that was just the beginning. Last night we learned that a Blackstone private credit fund was hit with huge redemptions when it opened. A record 7.9% of the fund, or $3.8 billion. Now the firm decided to honor all the requests. They returned the capital aided by employees who are putting new money in honorable you think that would increase that somewhat, would reassure the stock market, right? But instead it free people out. Blackstone stock got clobbered down nearly 4% but it was from a major comeback from the lows. Here's the crazy part. The collection of these loans these firms have put together are actually almost entirely money good. Almost all their holdings are solid and doing well. But we have a fever this market. If your company's in software, then individuals don't want anything to do with it. They're terrified that open air and anthropic will eventually destroy these businesses. But for now, that's pure fear with very little reality behind it. Here's what we learned in 2008. It doesn't matter if your institution is solvent or not. What matters is if you fear you'll lose the money. That's the trigger fear of losing your money. I think that's what's going on with the private credit meltdown. Individuals don't know enough to say if the loans to companies will go bad, but they don't want to wait to find out. Of course these pools of capital aren't meant for short term trading. They normally have a 10 year horizon. None of these private equity firms seem to think that they were doing anything dangerous, but that was before the grim reaper of the gentics and vibe coding made it so easy to disrupt the industry. Would I pull out? I like that the Blackstone employees are putting their money in. It's like putting your money where your mouth is. I like that they're institutional buyers, but you know what? I don't like the upside, which is basically capped here. That's the nature of the credit business. In the end, these are not for me, never have been. I've told you that over and over again. My forecast is more pain as individuals realize that they are in over their heads and prefer getting out of the pool with losses over waiting around to see if they'll drown. I'd like to say there's always more market somewhere At Palmer just for Radio Man Money, I'm Drew Kramer. See you tomorrow. 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 trading@schwab is powered

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