Mad Money w/ Jim Cramer – April 1, 2025

Host: Jim Cramer
Produced by: CNBC
Release Date: April 1, 2025

Introduction

In the April 1, 2025 episode of "Mad Money w/ Jim Cramer," host Jim Cramer delves deep into the current economic landscape, focusing on the ramifications of President Trump's proposed tariffs, the struggles within the enterprise software sector, and opportunities within the small business facilitation industry. The episode features insightful interviews, strategic stock analyses, and an engaging Lightning Round segment where Cramer offers his buy, sell, and hold recommendations.

Economic Impact of Tariffs

[01:04] Jim Cramer: Jim opens the episode by addressing the growing frustration among Americans regarding rising prices and President Trump's tariff policies. He states, "Americans are worn out. All we can think is how the heck did everything get so expensive in this country." Cramer critiques the proposed 20% tariffs on imports, highlighting historical parallels with the Smoot-Hawley Tariff Act, which he notes was a proximate cause of the Great Depression.

Key Points:

• Historical Context: Cramer references the Smoot-Hawley Tariffs (historically) to warn against the broad application of the current tariff plans.
• Economic Consequences: He emphasizes that while the tariffs aim to protect domestic industries, they may lead to higher consumer prices and disrupt the delicate balance of the service-driven American economy.
• Sector-Specific Impacts: The auto industry and steel sectors might see increased prices, benefiting companies like Ford and GM, but at the expense of general consumers.
• Government Efficiency Concerns: Raises questions about the government's ability to effectively collect these tariffs and enforce regulations, noting, "There's a sense to, let's say sense of relief to simply know how bad it could be ahead of time." (Timestamp: [06:50])

Notable Quotes:

• "A 20% increase on everything we buy from overseas is horrendous for the economy." – Jim Cramer ([05:20])
• "When the book is written on this moment, I think we'll question what we were liberated from." – Jim Cramer ([08:10])

Enterprise Software Sector Analysis

[21:25] Jim Cramer: Cramer shifts focus to the struggling enterprise software sector, citing significant declines in major companies like Adobe, Oracle, and Salesforce. He attributes these downturns to a combination of high stock valuations, macroeconomic uncertainties, and emerging threats from AI-powered competition.

Key Points:

• Stock Performance: Adobe down ~35%, Oracle and Salesforce each down ~30%.
• Valuation Concerns: High valuations make these stocks susceptible to sharp declines during market volatility.
• Impact of AI: Introduction of AI tools by companies like Salesforce’s Agent Force and Adobe’s Firefly brings both innovation and competition, potentially disrupting traditional software development and service models.
• Government Contract Risks: Highlighting the cancellation of Oracle’s Pentagon HR system contract as a sign of increasing scrutiny on federal software contracts, which could jeopardize revenue streams.
• Analyst Perspectives: Cites Morgan Stanley analyst Keith Weiss advocating for margin expansion and favoring companies like Intuit and cybersecurity firms over those heavily reliant on government contracts.

Notable Quotes:

• "Enterprise software has some cyclicality to it. The business is hostage to the broader economy." – Jim Cramer ([24:30])
• "It's hard to say if AI is hurting or helping companies like Adobe. The future is uncertain." – Jim Cramer ([23:45])

Interview with GoDaddy’s Walton Goggins

[12:50] Jim Cramer: Cramer interviews Walton Goggins, GoDaddy's spokesperson, celebrating the company's 10th anniversary of its IPO. The discussion revolves around GoDaddy's innovative AI-powered tools designed to assist small businesses in establishing their online presence effortlessly.

Key Points:

• AI Integration: GoDaddy's AI tool, Aero, automates the creation of logos, websites, social media posts, and payment processing, significantly lowering the barrier for small businesses to launch and scale.
• Customer Focus: Transition from deep discounting to targeting high-intent customers who utilize GoDaddy's comprehensive suite of products beyond just domain registration.
• Stock Repurchase: Goggins mentions a 23% share repurchase since January 2022, reflecting confidence in the company's long-term growth.
• Market Position: With over 20.5 million customers, GoDaddy positions itself as a pivotal player in the small business ecosystem, providing essential tools and support to foster entrepreneurship.

Notable Quotes:

• "With tools like GoDaddy Aero, you can do it. We tell them all the time, the customers call us and one of the things they want to hear from us is it's okay, you can do this." – Walton Goggins ([17:31])
• "Our goal continues to be bring the best tools, make them really simple and combine it with the human expertise." – Walton Goggins ([19:10])

Spotlight on Sport Radar

[29:38] Jim Cramer: Cramer engages in a detailed conversation with Aman Bhutani, CEO of Sport Radar, highlighting the company's pivotal role in the sports betting industry and its robust financial growth.

Key Points:

• Market Leadership: Sport Radar is portrayed as a cornerstone in the sports betting ecosystem, supplying essential data and analytics for sportsbook operators.
• Global Expansion: Recent partnerships and an expanded baseball portfolio bolster Sport Radar's international presence, particularly in markets like Taiwan, Korea, Japan, and Mexico.
• Technological Advancements: The company emphasizes AI-driven models to monitor and detect suspicious betting activities, ensuring the integrity of sports.
• Financial Growth: Sport Radar reported a 26% top-line growth and a 33% increase in EBITDA, with projections of sustained growth and margin improvements over the next three years.
• Strategic Partnerships: Collaborations with major sports commissioners and leveraging data to create value beyond mere betting monetization.

Notable Quotes:

• "We have more than 1 million matches every year live. We cover this." – Aman Bhutani ([31:39])
• "We are the engine of sports betting." – Jim Cramer ([31:22])

Lightning Round: Buy, Sell, Hold Recommendations

In the high-energy Lightning Round, Jim Cramer swiftly reviews caller-submitted stocks, offering his opinions on whether to buy, sell, or hold.

Selected Highlights:

1. American Express (Caller: Lori, New Jersey)

   • Recommendation: Buy more
   • Rationale: Cramer praises American Express as "one of America's great companies" with a strong franchise legacy ([09:47]).

2. Amazon (Caller: N/A)

   • Recommendation: Buy
   • Rationale: Cramer views Amazon as resilient amidst economic slowdowns and new tariffs, emphasizing its robust growth strategy ([09:56]).

3. Trade Desk (Caller: John, North Carolina)

   • Recommendation: Buy
   • Rationale: Encourages investment at current levels, expressing confidence in CEO Jeff Green's leadership and the company's prospects ([25:43]).

4. Palantir (Caller: David, New York)

   • Recommendation: Buy
   • Rationale: Despite federal government cuts, Cramer believes in Palantir's strong performance and leadership under Alex Karp ([29:38]).

5. Whirlpool Corporation (Caller: Sandy, Texas)

   • Recommendation: Sell
   • Rationale: Expresses dissatisfaction with the company's performance, suggesting holding Home Depot instead ([38:05]).

6. Fin V (Caller: Benji, Texas)

   • Recommendation: Buy
   • Rationale: Supports investment in Chinese markets, particularly in sectors aligned with current bull market trends ([39:20]).

7. Altria (Caller: Chuck, North Carolina)

   • Recommendation: Sell
   • Rationale: Despite being well-run, personal objections due to health concerns lead Cramer to refrain from recommending Altria ([41:25]).

Notable Exchanges:

• Sandy in Texas: "I think you should go own the stock of Home Depot." – Jim Cramer ([38:15])
• David in New York: "You buy. I'll tell you why. I think they're actually the paragon and paradigm of what the Doge boys want to see." – Jim Cramer ([29:40])

Final Thoughts and Market Outlook

Towards the end of the episode, Cramer reflects on the volatile nature of the current market, emphasizing the importance of emotional discipline and selective investing. He underscores the availability of undervalued opportunities within distressed sectors, urging investors to remain strategic and informed.

Key Insights:

• Emotional Investing: Advises against letting market emotions drive investment decisions, advocating for a clinical, research-driven approach.
• Value Opportunities: Identifies significant value in the enterprise software sector due to recent declines, provided investors exercise selectivity.
• Bull Markets Everywhere: Reiterates his belief that "there's always a bull market somewhere," encouraging viewers to seek out niches with growth potential ([43:00]).

Conclusion

The April 1, 2025 episode of "Mad Money w/ Jim Cramer" offers a comprehensive analysis of pressing economic issues, sector-specific challenges, and investment opportunities. Cramer's expert commentary, combined with insightful interviews and targeted stock recommendations, provides listeners with valuable strategies to navigate the complex investment landscape.

Disclaimer:
All opinions expressed by Jim Cramer on this podcast are solely his own and do not reflect the opinions of CNBC, NBCUniversal, or their parent companies or affiliates. Listeners should conduct their own research or consult a financial advisor before making investment decisions.