Mad Money w/ Jim Cramer 4/22/26

Summary

Mad Money w/ Jim Cramer - 4/22/26

Podcast Summary and Key Insights

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Episode Theme & Purpose

In this episode, Jim Cramer navigates listeners through the latest moves in the stock market, highlighting his own investing lessons, the stocks that “got away,” and hot trends shaping the market—artificial intelligence (AI), data centers, and energy. He features interviews with top executives, analyzes critical earnings, responds to caller questions, and delivers strong, actionable opinions with his trademark intensity. The episode is an honest, educational look at opportunities, pitfalls, and the emotional rollercoaster of investing.

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Key Segments & Discussion Points

1. The Ones That Got Away: Learning from Missed Opportunities

[01:01–10:23]

Overview

• Cramer opens up about the pain of missing out on massive rallies in certain high-flying stocks, many connected to AI, data centers, and advanced hardware.
• He shares the emotional reality of investing: the frustration of sticking to discipline and still seeing others' successes.

Notable Insights & Quotes

• Cramer’s Confession:
  “We are going full scale self remonstration. 1% flagellation. A bonfire of second guessing.” [01:07]
• The "Tarpon" Analogy:
  “These are the tarpon you hooked... but then you failed to get them to the boat—the boat being the charitable trust.” [02:32]
• Hot Sectors Missed:
  • Memory & Storage: Seagate, Sandisk, Western Digital, Micron
  • CPUs: Intel, AMD
  • Networking and Data Center Hardware: Marvell, Credo, Astera Labs, Ciena, Dell, Vertiv, Bloom Energy, Coherent
• Market Dynamics:
  “These stocks are being driven up by desperate buyers with persistent orders that take them higher every day… They believe these stocks will keep climbing, and they've been right.” [04:28, 08:38]
• On Discipline vs. Conviction:
  “Discipline trumps conviction and my discipline means refusing to chase.” [09:01]
• Trader's Trick:
  “She would divide high-priced stocks by 10 to show me that it’s not so outlandish… $230 divided by 10 is a $23 stock.” [09:28]

Takeaway

• If you want to buy red-hot stocks, don’t be eternally hesitant, but stay diversified and consider mindset shifts—sometimes, you need to “divide by 10” to put price in context.

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2. Lightning Round: Caller Q&A

[10:23–12:57, 42:19–43:49]

Notable Calls

• BlackBerry [10:23]:
  Cramer promises a deeper look into its resurgence and its ties to Nvidia and self-driving auto tech.
• Merck & Pharmaceuticals [11:16]:
  “This rotation out of healthcare is one of the most breathtaking... Merck's at 13 times earnings… but could drop another five. Maybe divide by ten, it's an $11 stock, maybe it goes to ten and a half.” [11:51]
• Airbnb [33:55]:
  “I read a Wells Fargo piece… said we are finally at the inflection and the stock is about to turn up. I am going with Wells Fargo. I think it is going to do incredibly well. This is a buy.” [34:14]
• ARM Holdings [42:44]:
  “We put this in the bios a couple days ago for the Capital Trust and the stock is up... This is the type of thing I'm talking about. You got to be in.” [42:56]
• Alphabet [43:20]:
  “If the sellers are going to win, I think Alphabet's going to 400. I think you win on outfit and you win on the Celtics. Last night was a fluke, but I enjoyed it.” [43:32]

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3. ServiceNow: CEO Bill McDermott Interview

[15:42–25:16]

Context:

ServiceNow, a leading cloud software provider, reported earnings and guidance. The stock is under pressure for multiple quarters.

Key Points & Quotes:

• AI as a Tailwind:
  “The more AI that happens… everything runs through ServiceNow. ServiceNow is the rules and the rails of every major corporation in the world.” — Bill McDermott [16:35]
• Addressable Market & Growth:
  “We’re a $600 billion TAM company… RPO growth at 23.5%... over $28 billion now in RPO.” [16:12]
• Operating Margins & Acquisitions:
  Margin dip? “Just took Armis into the company… next three or four months that'll be right back on track.” [18:04]
• Consumption-Based Pricing vs. Seat-Based:
  “All this Wall street talk about seat-based is going away… there’s so much more money to be made on the consumption or value derived from AI.” [19:34]
• Buffett Quote:
  “In the short run, the market is like a voting machine, but in the long run, it’s like a weighing machine.” — Bill McDermott [20:30]
• Middle East Clients:
  “Middle East is opening up… we're just fine.” — Bill McDermott [24:13]
• Cramer to McDermott:
  “The stock’s down more than 30%. I think [old metrics] become relevant again when your stock is cheap.” [24:45]

Takeaway:

ServiceNow is positioning itself as core infrastructure for the AI revolution, confident in its recurring growth and consumption-based pricing model—despite short-term margin and guidance concerns.

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4. DR Horton & The Housing Rebound

[27:07–36:08]

Market Context:

Homebuilders rally after months of declines, triggered by earnings optimism and rate cut hopes.

Key Insights:

• DR Horton posted a “mixed” quarter: missed home deliveries, but better-than-expected forward-looking sales metrics.
• Surprise Factors:
  “Low expectations really do matter in earnings season… if you post lukewarm numbers. Low bar.” [28:33]
• Net sale orders up 11%, backlog up 19% units year-over-year.
• The rally hinges on interest rates:
  “This comeback… is only sustainable if rates keep coming down. The group is hostage to the bond market.” [31:08]

Takeaway:

Despite recent bumps, homebuilding stocks like DR Horton can perform if the bond market cooperates—forward demand looks solid.

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5. Vertiv: Powering Data Centers – Interview with CEO Gio Albertazzi

[36:08–41:57]

Company Profile:

Vertiv supplies critical power and cooling solutions for data centers, riding high on AI and cloud computing demand.

Highlights:

• Blistering earnings: “Vertiv delivered a 17 cent earnings beat… operating margin expanded by a staggering 430 basis points… now looking at 29–31% organic revenue growth this year.” — Cramer [36:08]
• Global Demand:
  “We continue to see a very positive… and very strong year. We took our guidance up but the year is not over.” — Gio Albertazzi [36:31]
• Competitive Advantage:
  “Our ability to scale, think the entire data center, leading service portfolio… strong relationships in the industry… is very hard to replicate.” [37:23]
• Off-Grid Data Centers:
  Collaboration with Caterpillar, enabling “bring your own power” and off-grid solutions for data centers. [38:29]
• AI & Cooling Challenges:
  “We work together with Nvidia on long-term technology roadmaps… we have the technology already available to take care of the power and cooling that infrastructure needs. We want to be ahead of the game.” [41:18]

Takeaway:

Vertiv is cementing its position as an essential backbone for hyperscale data centers and AI buildouts—off-grid and global infrastructure included.

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6. Vernova (GE Vernova): The Power Plant Kingpin

[44:13–47:35]

Overview:

• Highlighting recent explosive growth and market cap surge, especially in serving the power needs of data centers and utilities.
• “With these results, GE Vernova said the company already had more data center orders in the first quarter than it had in the entirety of 2025.” [44:38]
• Only serious nuclear energy builder in North America; building new plants in Ontario and Tennessee (2032+ business).
• Traditional utilities still 80% of customer base, but data centers may soon catch up.

Notable Quote:

• “When you think of power, you need to know that the plurality is made by GE Vernova’s machinery… this quarter was indeed one for the ages.” — Cramer [46:52]

Takeaway:

GE Vernova is re-emerging as a core play for the electrification of the cloud and AI era—major upside for large-scale energy investors.

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Memorable Quotes (with Timestamps)

• “These are the tarpon you hooked… but then you failed to get them to the boat.” — Jim Cramer [02:32]
• “Discipline trumps conviction and my discipline means refusing to chase.” — Jim Cramer [09:01]
• “The more AI that happens… everything runs through ServiceNow.” — Bill McDermott [16:35]
• “There’s so much more money to be made on the consumption or value derived from AI.” — Bill McDermott [19:34]
• “Low expectations really do matter in earnings season.” — Jim Cramer [28:33]
• “Our ability to scale… and strong relationships in the industry… is very hard to replicate.” — Gio Albertazzi [37:23]
• “When you think of power, you need to know that the plurality is made by GE Vernova’s machinery.” — Jim Cramer [46:52]

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Episode Structure

• [01:01] Cramer opens on investing regrets and missed opportunities in hot stocks
• [10:23] Lightning Round Q&A (BlackBerry/Merck/Airbnb/etc.)
• [15:42] Interview: ServiceNow CEO Bill McDermott (AI, earnings, company trajectory)
• [27:07] DR Horton and the homebuilders: parsing mixed earnings and optimism
• [36:08] Interview: Vertiv CEO Gio Albertazzi (power/cooling/data center revolution)
• [44:13] Deep dive on GE Vernova’s historic quarter and market significance
• [42:19, 43:20] Additional Lightning Round Q&A (ARM, Alphabet, etc.)

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Final Takeaway

Jim Cramer’s April 22nd, 2026 episode is a tour through the current investing landscape—a blend of hard-earned wisdom, self-critical reflection, and market optimism. Whether highlighting the agony and discipline of missing big wins, or showcasing game-changing infrastructure firms riding the AI and data center wave, Cramer delivers actionable advice, seasoned by decades of market battle. His dialogue with industry leaders (ServiceNow, Vertiv), as well as analysis on homebuilders and energy, gives listeners a playbook for navigating opportunity and risk in today’s dynamic market.

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For more episodes, insights, and interactive Q&A, follow Jim Cramer and “Mad Money” on CNBC.

Transcript

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[Jim Cramer]

To make you money here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer. My friends, I'm just trying to make you some money. My job is not just entertain but to do some explaining, educate you. Call me at 1-800-743-CBC. Tweet me at Jim Cramer. I missed him. Sorry I missed it. Next tonight we are going full scale self remonstration. 1% flagellation. A bonfire of second guessing. The cultural revolution as brought to you by Jim Cramer. As the market once again exploded higher. The Dow gaining 341points. SB jumping 1.05% to a new record high. And the Nasdaq poll voting 1.64% also to a record high. House of pleasure. It's time to trash myself and talk about the ones that got away. Since part of my job here on this chapel trust for the CBC Investing Club, don't hesitate to join. Get the free book all signed and everything. I do it to demonstrate how a professional manages money. And I do so with an open hand. When I started this educational product more than 20 years ago, lots of people chided me saying I'd be embarrassed by my mistakes. Then I give it up quickly. They didn't know that I am my own worst critic. There was even an article, one of the New York dailies that was taking Odds about how long I could hold out given that most money managers never like to see what let's show people what they're really doing lest they look like true Jim Oaks well here I am two decades later having been embarrassed many a time. Except when it comes to the $400 million for $4 million I've given away to charity. I wish it were 4 million. Wouldn't that be some didn't do that. I recognize that showing you how I reason, how I execute helps you understand how to think or not to think to the CBC Investing club isn't based on all my mistakes. That's not true. Tonight though I want to walk you through something that is driving me crazy. It's these animal spirited stocks the ones that are just making me nuts because my truth, my trust doesn't own that me the ones that got away I love the fish. These are the tarpon you hooked you reeled up and but then you failed to get them to the boat the boat being the charitable trust. Now you and I both see these stocks every day. They rally step by step, inch by inch. They can't stop. They can't be stopped fitting for this market. Almost all of them are related to the data center and the artificial intelligence revolution.

[Bill McDermott]

That was easy.

[Jim Cramer]

I have 16 I'm going to talk about 16 that I was unable to land couldn't bring them in. When I see them go by on the crawl that thing underneath me I'm driven to distraction. I guess you could say I hate them except I really like what they do and the people run them. It's just that when I see them fly and I can't stop kicking because I missed out I want to buy it but they are so far away from where I first wanted to buy them that I just have to say I'm late. Forget about them. Except the time after time it would have worked if I hadn't forgotten if I just bought them today or yesterday the day for a week, for a month, for whatever which are the tantalizing stocks that have just driven me to ruin. Let's start with memory and storage. Yeah the devices that hold the data ready you can write them down but they're so hot they'll burn the paper. Seagate, Sandisk, Western Digital and Micron. I liked all these deal including Western Digital 1 point I own 4.9% of that one when I was a hedge fund manager would have made me $2 billion even more than the 400 million I claimed I gave when I only gave 404 million I. Listen to me, listen to me. These stocks are being driven up by desperate buyers with persistent orders that take them higher every day. And now I'm going to tell you how it works. Let's say you want some sandisk. Okay. So many, so many other people with the Stock at say $957, you go in and you place an order like this 957, right? SanDisk. Buy me 100,000 with $1,000 top. A half dozen buyers are actually putting that same order at the same time. You are. Literally. And that's why the Stock could rallied 8.4%, say up 75 bucks. They or these orders are often put in before the market opens. It's like a train and they don't want to miss it. All aboard these orders. And people don't have any quit. And that's how a stock goes up dramatically. Multiple buyers with high tops just buying and buying. Why do these memory stocks work? Simple shortages. I needs a huge amount of memory. Nobody in this industry was ready for that level demand. It'll take them years to build out enough production capacity to meet the demand. Next up, Central Processing Unit CPUs needed to power agentic AI. These AI agents, the next wave of the fourth industrial revolution can do amazing things. Replacing many humans at old dirty and dangerous jobs. But they need the right semiconductors. The bottleneck here is not GPUs from video. They need better CPUs. Nvidia doesn't make them. Who does? Because you know that the agents need them. Well, that's why everyone keeps buying intel and amd. Silly. I shouldn't have missed those. I like them both so much. I should be wearing post its with their names on my forehead. Can you have some of those? I'll put them right on. Thank you. Next. Data centers are filled with networking software and harbor. Remember, the data center is stuffed with a huge number of chips from Nvidia or AMD or Google or Amazon. More than murder. Here you have. Are you ready? Because these ones really drive you crazy. Marvel Tech. Oh man. Double credo. Estera Labs, Sienna, they're all on fire and fuego. Then we have the data center hardware Dell. How did I miss Dell? Cooling infrastructure. Verde is on tonight for Evans. Say cor. We've that inshore. I speak them all the time with the. With the T shirt. Whatever he wears underneath that shirt, it doesn't dress up. Doesn't matter. He's like a billionaire anyway. There are companies that use photonics to move signals coherent momentum. This momentum. I mean they were Both on the show. How did I miss that? Finally, there's power and the incredible bull market in Bloom Energy, which eludes me and of course drives me crazy. Okay, let's, let's. That's the list. Now let's talk about cross purposes. I've been buying and selling stocks for 44 years. And every single year there's always been this winning cohort, a sector that I've missed. That means I knew the stocks were good and the company were amazing. But I didn't pull the trigger. Why didn't I? Okay, first, I'm a cheapskate. I like to buy stocks that run. Almost all of these stocks run every day because the buyers are insatiable. Unlike me. There's no place they won't pay. I don't like to be too doctor near here. In 1992, one of my best years, my then trader went rogue on me and decided to violate the discipline on a handful of high flyers like the 16 stocks they just mentioned. Just like them, she would come in each morning, identify which would be the hottest stocks, one of the most momentum. Looking at the charts, she would famously or infamously buy the stocks with outrageous tops that can only be described as rookie behavior. Except she was a pro. Case in point, let's go to Bloom. This exciting energy play can turn abundant hydrogen into electricity. Stocks up 164% year to date, including a nearly $9 move today. $229. $229. Remember that? With a stock like that, I would have waited for a pullback. Maybe 218, maybe 200. She would insist that my discipline. This market is really going to cost me. With my attitude, my restrictions. I would never bring in Bloom Energy. So she would pick up the phone and she want to enter 200,000 shares, right? She tell the breaker broker this. She say, sweep the stock, sweep the stock to 235. But you get me in this 200,000 shares or else. That way she got it didn't matter what price. That's what you're seeing right now. That's what you're seeing a lot of these trading houses. That's why these stocks do this. They're doing that kind of order. They believe in these stocks. They think we're at the very beginning of the run. They don't mind overbought pain because they believe these stocks will keep climbing, climbing. And they've been right. Me, I'm never that certain. I wish I could be, but I've always maintained that discipline. Trump's conviction and my discipline Means refusing to chase. But let me leave you with one other thought that maybe can justify it or at least put it at ease with your mind. My trader would rebel at the idea that she was undisciplined. She said I was undisciplined because I wouldn't pay for the stocks that I knew were right in a hot market. She thought you needed to have the discipline to pay up for great stocks to avoid missing them. That was the discipline. So here's what she would do. She performed a mental exercise. She would divide high priced stocks by 10 to show me that it's not so outlandish. Bloom energy. Jim. All right, it's a 230 divided by 10. You got a $23 stock. Would you really kill you? Would it kill you to pay $24 for $23 stock? No, of course not. That was genius. We had an amazing year in 1992 because I divided a lot of stocks by debt. You know what I. I said she's right, I'm wrong. Throw out the old rules in the new. It worked in my heart. I could never really do it without her. Still can't. But here's the bottom line. If you want to buy these so called red hot stocks, don't be hesitant about it. As long as the bond market stays stable and you stay diversified, I think the Reds can keep making money. But you got to do this. You got to divide by 10 and maybe then it will make a lot more sense. Hey, how about David in Louisiana?

[Caller David]

David, hey welcome from New Orleans and Jazz Fest. I got a question for you on an oldie but goody. A stock that used to really high fly and it looks like to me it's coming back my friend from the dead. It's got a partnership with Nvidia and its operating system is being utilized and all of these self driving automobiles. I'll tell you I looked at it and it's BlackBerry and I wanted your opinion.

[Jim Cramer]

We're going to have to look at that too because I know they got vampires in New Orleans. I've been there, I've seen them. And this stock is a vampire is back to five from down being down to two. You deserve Dave Louisiana. He deserves more than just a just kind of a brush off. We'll take a hard look at it. Ben. Ben Stodo mines with photo. He'll look at it. Let's go to Tony in Florida. Tony.

[Caller Tony]

Hey Jim, I want to let you know that I thank you for taking my call and being a cook members since day one. And you always helped me out when I gave you a call to see what I have to do. And I got another big one for you today.

[Jim Cramer]

All right. I'm sweating. Go ahead.

[Caller Tony]

It's a healthcare stock. I know you said in the past it's been a good call, but with, with this one, I'm down a little bit in the red. Should I stay with Medtronic? I'm not. My trunk. Sorry. Should I stay with M. Okay. Or should I go to another company?

[Jim Cramer]

Okay. I've got to tell you, this rotation out of health care is one of the most breathtaking rotations. We could be talking about a half dozen drug stocks and they would all be the same. I think that Merck is at 13 times earnings. I think Burger strip. I don't think that matters at all. I think the stock could drop another five. So you want to buy some and then leave? I like to say leave room. Hey, maybe divide by ten, it's an eleven dollar stock. Maybe it goes to ten and a half. All right, there you go. Now if you want to buy some red hot stocks, I go for it. I think that you can still make money as long as you are. You stay diversified. But understand you're chasing and don't, don't go putting an outrageous top one. All right, I'm on ServiceNow reporter after the bell. I'm going to run through the numbers of the top rest and have you seen a recent resurgence in the housing stocks? What is that all about? I'll take a look at Dr. Horton, the big big daddy and share where I come down on the stock. And I'm sitting down with the CEO of Verdict to get a sense about where we stand on the infrastructure build out. Divide that one by 10 and stay with Premier.

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What made you confident that you could do something that hadn't been done before? I have no fear of failure.

[Julia Boorstin]

Trailblazing women Changing the Game One of

[Jim Cramer]

my favorite pieces of advice Think about what your boss's boss needs.

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[Jim Cramer]

After the close, we got results from ServiceNow, the cloud software company that helps its customers automate all sorts of back office jobs, including IT jobs. Now, this stock's been crushed by displacement worries, falling from just under $240 at its peak last year down to 103 as of today's close. And tonight, ServiceNow is getting slammed again after the company delivered a set of results and guidance updates that frankly just weren't good enough to get investors excited again, even as the company's adamant the business is business as usual, with most benchmarks better than expected. Now, earlier tonight I had a chance to speak with Bill McDermott, the chairman and CEO of ServiceNow, about what's now becoming, I guess, a quizzical story. Take a look. Dermot welcome back to Mad Money.

[Bill McDermott]

Jim, it's great to be back with you. How you been?

[Jim Cramer]

I have been fine, thank you. How about you?

[Bill McDermott]

I've been great. Another beat and raised quarter. Man, we're on fire here.

[Jim Cramer]

Okay, so we got to figure this out. You bought a lot of stock. You bought stock personally, which was not easy because you had to cancel a program. You came in very aggressively. You are now beneath where you bought that stock. And my question is, what are people missing about ServiceNow that they used to know about? ServiceNow?

[Bill McDermott]

That's a really good question, Jim. You know we're a 600 billion TAM company, so the total addressable market is massive. The RPO growth of the company, meaning the revenue and the obligations remaining with the company, are growing at 23 and a half percent. It's amazing and we're over 28 billion now in RPO and our AI business, which is what it's really all about. I'm having to now put a new guide out there on the AI for this year. We're blowing past the billion. We're going to up at a billion and a half, and that probably won't be enough. The bottom line is this, Jim. The more AI that happens, whether it's a hyperscaler, these fantastic language model companies, or even the systems of record that are Even getting the AI memo, everything runs through ServiceNow. So ServiceNow is the rules and the rails of every major corporation in the world. And so as AI takes off, it's a tailwind for ServiceNow. And the capital markets have been talking about terminal value in terms of not knowing where that exists for software as a service companies, which first of all is ridiculous for scale ones like us. But I think we're answering that question decisively. Our business is doing great and it's all about AI. And we agree and we're not scared, right?

[Jim Cramer]

But the language models, I don't want you, I don't want McDermott scared. That would, that would worry me myself. Now I'm thinking maybe it's. The problem is the, the operating margin guidance of 31.5 below the 32% and lower from the previous guidance. Could that be it? Could that be what people looking at is saying that is good. But you know what, it does lower their, their margin performance?

[Bill McDermott]

No, actually, Jim, it's good news because we closed Moveworks, Veza and now Armis. So the half a point on headwind on the margin is only because we just took Armis into the company. It was actually supposed to be a point. The efficiency already took it to a half a point. And then the next three or four months that'll be right back on track with the acceleration of our operating margins and our free cash flow. So you're talking about a company here, ServiceNow, that is going to be operating at the rule of 60 very soon, between our revenue growth and our free cash flow margin. And what I think is most important for your viewers and great investors, because you, you attract the best.

[Jim Cramer]

Jim, thank you.

[Bill McDermott]

Is that this is one of the few stories in the entire world where you could have a company talking about operating at the rule of 60, a growth like this, which is unbelievable, and a total AI leader and one that all the other AIs have to run through, including the language models. All the great AI in the world. And it is great. It thinks, but workflow acts and that's where we come in. So we are going to price our platform based on an expanding user base, but half of our revenues already is based on the consumption of all of this AI innovation. And one of the new developments, Jim, that you should know is the language models are great and the elastic pricing is also the way they price. And there's no safe zone for that. So all this Wall street talk about seat based is going away and so forth. We hope it does because there's so much more money to be made on the consumption or the value derived from AI.

[Jim Cramer]

Absolutely pivoted correctly. I got an idea. I was thinking that when you talked about, you said rule at 50, is it possible, is it possible that they're no longer considering the importance of Rule 50? You and I know how important it is. I've always had the gross margin in the growth, but I've come up with a great idea about how to analyze stocks as my great idea come out of fashion is my great idea says, you know what, it's going to lead you wrong. Because I felt in the last quarter you did that and it moved the stock up and I was wrong, the stock moved down. I'm wondering where the rule of 50, 60, 70, 80 has gone out of fashion, Bill. And we're looking at the other side of history.

[Bill McDermott]

You know, Jim, there's some things that will never go out of fashion. And it's called revenue minus expense equals profit. And the more business that you do and the more money you make, the better it is for shareholders. You know, Warren Buffett used to say that in the short run, the market is like a voting machine, but in the long run, it's like a weighing machine. And we're totally ready to be weighed against any brand in the world. We take on all comers and our company's only getting stronger and stronger. You know, an investor called me this morning and wished me luck on the earnings call today, which will happen soon. And he said, you know, the best place for the Trump accounts for babies that are born in the United States would be to invest in ServiceNow. And it's comments like that just make us so strong, so powerful, and so full of life. And remember, every language, model, company, OpenAI, anthropic, etc. Gemini. Great Gemini announcement today. They're all going through service now. We are the ERP of it for every digital transformation across the world. All these companies need to work with us. We like working with them too, because the customer is the benefactor. I had a great CIO in my board meeting yesterday and she said, you know, Bill, it's actually de minimis the fraction that I pay to service now of my IT budget. And everything in my company goes through service now. And we actually analyzed if I could possibly replace it with a language model ala Jim, taking on the terminal value issue, but it would actually be more than 10 times the price with actually no certainty because everything there is based on the elasticity of tokens.

[Jim Cramer]

Okay.

[Bill McDermott]

I root for those companies, but I think if you want the rules, the rails and the platform that's going to transform your company, you're going to need service now.

[Jim Cramer]

Okay. Now, of course the Trump accounts have to be invested, the S&P 500. We can't pick individual stocks again just to focus on what people might be missing. Are there people who will say, you know what? I'm used to really huge beats, different lines of used to, huge subscription revenue guide, huge beat in operating margin, huge beaten free cash flow. They're not giving me those huge beats that they used to. Is that because of a I.

[Bill McDermott]

No, actually the AI is what is the tailwind behind our growth trajectory and the bright future that we have. And I believe strongly when we took on Move Works, we merged it with our employee experience business. It did 5x the revenue that it ever did before and it did it in the first quarter.

[Jim Cramer]

That's very impressive.

[Bill McDermott]

We just got. We just got Veza. Now you're talking about identity management, where we're managing human and non human identity. These agents are not humans. They work really hard. 24 by 7. But somebody's got to manage them. But we give you the visibility, the rules, the regulations by which these agents have to run in a major corporation. And now Armis, Jim, this is big. Armis is in nine out of the 10 biggest companies in the world managing operating technology. Think IoT networks, devices, shadow it. So this is new revenue coming into the screen for the shareholders.

[Jim Cramer]

The average at the same time. I just got the last question. I got to say 75 basis point headwind from delayed closings in the Middle East. How many have been closed since the end of the quarter?

[Bill McDermott]

What are you talking about?

[Jim Cramer]

Deals in the Middle east that you said. Yeah. Caused a problem. I want to look since this was the quarter ended. I know you, you're a closer. Have we gotten closer to closing this?

[Bill McDermott]

Everything is fine. The Middle east is opening up in talks again. We are actually back to doing business. People are out and they're going to their office buildings again. It'll be fine. All right, so the point, the point on the Middle east was you have to remember you're dealing with sovereign clouds in the Middle East. So when they do business, it's recognized not ratably but up front. So when there's a delay in the Middle east, it has an immediate impact. That was the talk of that. But don't worry about the Middle east and our business there. We're just fine.

[Jim Cramer]

All right, well, look, we got it out. I want to see what happens. I will say, Bill, I do worry that things that we did trust for so long are no longer as relevant. But I'm going to be the judge. I'm going to let you be the judge because the stock's down more than 30%. I think they become relevant again when your stocks is cheap. Let's leave it at that. That's Bill McDermott. He's the chairman and CEO of ServiceNow and ow one of the greatest performers of all time. Thank you, Bill.

[Bill McDermott]

Thank you so much.

[Jim Cramer]

All right, man. He's back into the break.

[Mad Money Announcer]

Coming up was Dr. Horton's report what the market has been waiting to hear from the home builders. Kramer's slicing into the numbers to find out next.

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What made you confident that you could do something that hadn't been done before? I have no fear of failure.

[Julia Boorstin]

Trailblazing women, changing the game.

[Jim Cramer]

One of my favorite pieces of advice, think about what your boss's boss needs.

[Leadership Speaker]

Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things.

[Julia Boorstin]

Julia Boorstin hosts CNBC Changemakers and Power Players New episodes every Tuesday. Wherever you get your podcast,

[Jim Cramer]

Let's talk about the recent resurgence in housing. After a long period where this whole industry was a black guy on the face of the stock market. Yesterday morning we got results from Jarrett. Now that's the largest homebuilder in America by buying. And there was a lot of interesting stuff going on the quarter. On the surface, I get it. Horton reported a mixed set of numbers. But the stock still surged nearly 6% yesterday in response. Because there were some real positives underneath. And if we can get another rate cut from the incoming Fed chief, this entire industry could get a real boost. It almost always does when you get a rate cut. Remember, all the homebuilding stocks spent most of last spring and summer climbing, climbing higher, anticipation of rate cuts. But just as those rate cuts finally arrived in September, the group topped out. And these stocks have been drifting lower ever since. Along the way, the homebuilders have occasionally tried to make a comeback. At the beginning of this year, for instance, they bounced in the expectation that we see lower rates. But then the war against Iran started. Oil price spiked. In those future rate hikes started looking a lot less likely. In response, the homebuilders fell to the lowest levels since last spring. As for T.R. horton, it plunged nearly 29% from its September high to its late March low. However, it also bottomed with the rest of the market when long term interest rates peaked at the end of March. Which is really the beginning of this amazing rally. In fact, from its lows going to the close Monday night, this Stock jumped from 131 to 153. Then we got the latest quarter on Tuesday morning which sent the Horton Stock up to 162. Wait a second. Why did that happen? Like I said before, Dr. Horton actually delivered a real mixed bag of a quarter. First, the company missed its consensus estimates for deliveries by nearly 500 homes. That's a lot of homes to miss. By consolidated revenue was slightly ahead of expectations. Divisor was down 2.3% year over year. But homebuilding revenue came in at 7.06 billion. That was more than $100 billion below expectations and down 1.9% year over year, their total revenue got a boost from stronger land sales and rental revenues, not from home sales. And while dear Hortons profit lines like pre tax income and diluted earnings per share were better than expected, their pre tax income still fell nearly 19%. With their pre tax margin down 230 basis points and their earnings per share shrinking by 13%. Definitely not a good quarter in absolute terms. Even if parts of it were better than Wall street expectations. So how about the guidance jar Horton Trimmed the high end of its deliveries forecast and reduced the high end of its revenue outlook by $500 million. But wait a second. That said expectations were so low heading into the quarter yesterday that even this trim guidance was higher than Wall street was anticipating. And there you go. Low expectations really do matter in earnings season. High bar expectations are a steeplechase that can't be beaten if you post long lukewarm numbers. Low bar. And so if you're wondering why these results sent the stock up 6% yesterday, I still don't blame. I mean the truth is very simple. Horton's forward looking metrics were encouraging. Whether you're talking in terms of units or dollars, Horton had much better than expected numbers across the board. Net sale orders, okay, Future were up 11% and beat expectations by nearly 1500 units. In dollar terms it was up 10%, also much better than anticipated. Hortons backlog Future grew by 19% year over year in unit terms or 17% in dollar terms. That's, that's 1900 more homes than expected. Wow, that's good. These are excellent numbers. Signaling that management saw some real sales momentum in the period despite the fact that to the extent that there was any relief on interest rates in the quarter was short lived. Those net sales and backlog numbers speak for themselves. But management really hammered home the fact that they're seeing much better demand on the comps was quite an upbeat commercial. In the earnings release there was still some boilerplate language talking about quote affordability constraints and quote quote cautious consumer sentiment. But it was boilerplate. And the company also conceded that expects elevated incentives to continue bad depending on its demand and other conditions. But Horton also said that it executed with discipline and by utilizing those sales incentives the company still expects to hit its original guidance for the full fiscal year. No estimate cuts. But the conference call management was more positive than that. When asked directly about demand, they said it was good with normal seasonality as the company expected and hoped. They also pointed out that Horton's cancellation rate has remained steady, which is a positive and even said that halfway through April they were pleased with sales results. At this point, frankly that consistent kind of talk was all the bulls needed. The homebuilders had gotten rolling when long term interest rates peaked in late March. And this better than expected commentary from Dr. Horton allowed investors to feel even more confident placing bets on the stock. This morning, by the way, we got fresh numbers from the Mortgage Bankers association which showed that mortgage applications for reap for purchases increased 10.1% week over week. Last week that's pretty good. Remember war one. It's the largest weekly gain since the week that ended on January 9th. Now, all that said, this comeback in Dr. Horton and the rest of the homebuilders is only sustainable if rates keep coming down. The group is hostage to the bond market and to a lesser extent, the Federal Reserve. A flare up with Iran and a spike in interest rates could cause this move to fall apart rather quickly. On the other hand, if we do see President Trump's pick for Fed Chairman, Kevin Marsh confirmed in Tommy Manor, and he's able to sway enough open market committee members toward the lower rates camp, and I think he can with those who don't like them saying they abstain, then this could just be the beginning of a fabulous next leg for Horton and the homebuilders. But the bottom line, the report Yesterday morning from Dr. Horton, while far from perfect, had enough good news to keep us interested in the homebuilders here. The biggest surprise was the resiliency of demand in the quarter. We didn't get all that much relief on interest rates, but we still saw a surge of orders, and that bodes pretty well for Horton and its competitors in the future. Now we just need some more cooperation from the bond market. Without that, I can't justify getting too bullish. But for the time being, I got to say, these numbers left me feeling pleasantly surprised and justified the move. Let's go to Rodney in Texas. Rodney.

[Caller Rodney]

Hey, Jim. How are you today?

[Jim Cramer]

Rodney's a good day. How are you doing?

[Caller Rodney]

I'm doing great. I'm doing great. I just want to thank you. I've been a watcher of the show for several years now, and I just want to thank you for all the valuable insight that you've given me and myself and many of the viewers out there. So thank you again so much.

[Jim Cramer]

Thank you. It makes me feel like it was every bit worth it. I'm just trying to figure out what I can do again tomorrow for you. That's. That's kind of the way I look at it. Give me the next one. How can I help you right now?

[Caller Rodney]

Absolutely.

[Caller Tony]

Absolutely.

[Jim Cramer]

So the stock that I have right

[Caller Rodney]

now that I've been holding for some time is Airbnb. And the question I have is, with all the challenges that we're facing at a gas pump and other things going on, I wonder what the economy and what many people are going to be doing in the travel and leisure industry. And the stock that I have is Airbnb. And I'm curious.

[Jim Cramer]

Travel and leisure is being challenged. But I got to tell you, I read a Wells Fargo piece this morning that said we are finally at the inflection and the stock is is about to turn up. I am going with Wells Fargo. I think it's at the right level. I think it is going to do incredibly well. And this is a buy. And I did say in how to make money any market. I made the point that Brian Chesky's real. Okay? The guy, the CEO, he's real. He has some ups and downs like the rest of us, but holy cow, I think it's going to be good. Now the report from Dr. Horton had enough good news to keep us interested in the home betters here and maybe do some buying. The numbers left me feeling pleasant, pleasantly surprised. I hope they do to you. If you read through it, much more mad money, including my swizzle with Verna. After joining the S&P 500 in March, could the company continue to power higher? It's almost 90% high this year. I've got the CEO. Then today we got a quarter for the ages. I'll reveal what it was and why this story is so darn important. And of course, order calls rapid fire to the next issue of the lighting round. So stay with Kramer. This morning we got a great quarter again from Vertib holdings, which makes crucial power and cooling equipment for the data center, of course. Yet the stock actually got dinged a little. Look, I think that was purely because it came in too hot. Even after this pullback, the stocks up 88% year to date. I hope you have some of these kinds of stocks. Quarter was phenomenal. Vertical delivered a 17 cent earnings beat off a dollar basis that's up 83% year over year. Revenue came in higher than expected. Their operating margin expanded by a staggering 430 basis points. Even better, management raised their full year sales and earnings forecast. They're now talking about 29 to 31% organic revenue growth this year. Problem is the stock had already made a monster move higher. But Vertiv keeps making smart acquisitions to expand its place in the data center. So can the stock keep climbing? Let's take a closer look with gio Albertazzi, the CEO of Vertif holdings to find out. Mr. Alberto, welcome back to Mad Money.

[Gio Albertazzi]

Well, thank you. Thank you very much.

[Jim Cramer]

All right, so Gio, another unbelievable quarter. Kind of like when we saw you at GTC with Nvidia. And I have to ask you, is there really anything that you can do if you're sold out to improve your earnings even more? Because it did seem like from your conference call that you are sold out for this year.

[Gio Albertazzi]

We of course continue to see a very positive and very strong year. As you have seen. We took, we took our guidance guidance up but there is still book and chip in our number for this year. So the, the year is not over. The year is not over. So continue to be optimistic about the market, the direction of travel and certainly very optimistic about our position in the market. And I think the performance speaks for itself.

[Jim Cramer]

All right, well the stocks are about 8% I tend to think, okay, what can go wrong because it's been so great. Is there anyone who could come in GEO and just say look I know verdict guy, they can't get to you in a year. I can offer, I can put together everything they can put together and give you a great price. Could that be happening?

[Gio Albertazzi]

I think there are multiple dimensions to our competitive advantage. Certainly technology is, is very, very much to the center of it all. But our ability to scale, our ability to think the entire data center not one piece at a time, a certainly a leading service portfolio and ability to support our customers at the project stage and during the lifecycle and certainly very strong relationships in the industry Nvidia but all the customers in general, this is very hard to replicate. Okay now, now of course the industry is, is interesting. People like the industry but I think our position is very, very strong.

[Jim Cramer]

I think people have to know also that you're not constrained by the typical four walls of what you do. This collaboration with Caterpillar and the solar turbines, it is in the cornerstone of the bring your own power and cooling. This is the kind of thing I've come to expect from Vertiv. Can you tell people what you're doing there? Because it's quite frankly amazing.

[Gio Albertazzi]

No, the data center industry, the way data centers are being built is changing. There is a lot of bring your own power so that data center can be grid interactive, can be power self sufficient. And of course this is not just about having turbines or other power generation system. It's about making sure that the entire data center infrastructure is well aligned and ready to support that type of load with that type of power generation. So the partnership you were mentioning with, with, with CAT and others with, with Oklahoma and other partnerships that we have are exactly in the direction of enabling the industry to bring bring your own power and addressing the power challenges to another level to remove that constraint for the industry.

[Jim Cramer]

So let's say I call you Joe and I say look I have got 2,000 Caterpillar engines that I have bought And I am right next to the Marcellus Shale or right next to the Utica or, or right next to the Permian. Could I come to you with all these engines, hook them into the actual natural gas and say geo, I want you to cool my thing. I want you to do it. I want to be off the grid. Could I make that deal with you?

[Gio Albertazzi]

There are a lot of off the grid data centers that are being designed and commissioning. So that's certainly something that is becoming mainstream in the industry and we have a primary role in making that happen.

[Jim Cramer]

Okay, so I know your US is strong. Europe's catching up. Europe starting to get with the program. Who's doing that? Is that our, our hyperscalers or is they have enough activity over there that you've got good business?

[Gio Albertazzi]

Well, definitely the world is, is pretty global. The market is pretty global. So a lot of the actors in the, in the space be them hyperscalers or co locators that operate here in North America, in the US are also very active in Europe, in EMEA and more and more broadly. But there is also quite a good vital local market with, with local Colo Colo players. So it's a mixed bag. But across the spectrum we see a lot of vitality. A vitality that, that was not there in the past, especially earlier in 2025. We're pleased with, with the type of demand that we're seeing.

[Jim Cramer]

One last question. This Vera Rubin is so powerful from Nvidia. I mean everyone knows it's incredible. Are things sometimes so powerful that even you can't cool them and they run too hot?

[Gio Albertazzi]

No. The beauty of, of of the relationship we have with Nvidia is that we work together on long term technology roadmaps so that when their technology comes available in the market start to be installed and commissioned. We have the technology most of the time already available installed to take care of of the power and the cooling that that infrastructure needs. So we want to be ahead of the game.

[Jim Cramer]

All right, that's excellent. Did need to know that. I want to thank you. Gio Albertazi is the CEO of Vertebra Holdings. Thank you Gio. Good to see you.

[Gio Albertazzi]

Thank you. Always a pleasure.

[Jim Cramer]

Of course. Man. Bunny's back after the break.

[Mad Money Announcer]

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

[Jim Cramer]

It is time to stop for the whitemouth craft entertainment. Knock down above my bites else and all just have my stamps and grapes and then the lightning round is over. Are you ready Ski? That's A letter and crazy. I'm going to start with Larry in New Mexico. Larry.

[AT&T Business Advertiser]

Hey, Mr. Kramer.

[Jim Cramer]

Hey.

[Caller David]

Thank you for, for you.

[Bill McDermott]

Thank you for you yourself and your, your team, for all the wonderful advice you guys provide.

[Jim Cramer]

Oh, thank you.

[Caller David]

In two weeks.

[Bill McDermott]

In two weeks, Rene Haas is going to be releasing earnings for ARM Holdings.

[Jim Cramer]

Buy, sell and hold.

[Mad Money Announcer]

What's your.

[Jim Cramer]

We put this on the buy. We put this in the BIOS a couple days ago for, for the capital trust and the stock is up to 21 today. I mean, this is the type of thing I'm talking about. You got to be in or. What can I say? I think Rene is going to do a great job. He's got a lot of business. It's a CPU company that was up 20. Nate. Good game. Let's go to Bill in Massachusetts. Bill.

[Caller David]

Jimbo. I'm a proud club member, having a great time. I finished my position in Alphabet at 275. It's up $60 a share. Should I take a little off?

[Jim Cramer]

I love it. I don't want Bill just like I feel. Unfortunately, if the sellers are going to win, I think Alphabet's going to 400. I think you win on. You win on outfit and you win on the Celtics. Last night was a fluke, but I enjoyed it. And that. Ladies and gentlemen, the conclusion of the I'm not kidding lightning round.

[Mad Money Announcer]

The lightning round is sponsored by Charles Schwab. Coming up, Kramer's ready to do the hula in celebration of the quarter one club holding just delivered. He's revealing who he's raising a glass to next.

[Jim Cramer]

Usually don't see me don a Hawaiian shirt at the end of the show, do you? Tonight is not a usual night though. That's because we had a one for the ages quarter from G. Vernova, the power plant portion of the old General Electric. Not that long ago, G. Vernova was the redhead stepchild of G.E. the division that held up the long, long planned breakup because CEO Larry Culp wanted to have an investment grade credit rating first and its balance sheet just couldn't cut it. After today's incredible quarter, it's hard to believe this is the same business. Here's some irony. Break out the champagne. Or least the my ties. G for Nova's market cap just passed. Namesake GE itself the aerospace company. 303 billion versus $289 billion. That's nothing short of unbelievable. How did GE Vernova get to such exalted heights? How about being the venerable, unique player providing power to the data centers and the utilities that are all struggling to meet demand from the data centers. With these results, Shivanova said the company already had more data center orders in the first quarter than it had in the entirety of 2025. And it's got a backlog so full that it's almost impossible to get a new turbine. They pronounce it like that for the next two years. Given the sequential cost savings they seem to find each quarter. I'm confident that you'll see much better and better margins ahead when you see that GE Vernova has 100 gigawatts worth of gas power business, that's right, the equipment business 100. You know what? That's enough to power 100 million homes. Then you can understand why I told viewers of our 1020 investing club video that this quarter was one for the ages. We rate stocks by the number for the club with 1 meaning buy, 2 meaning hold, 3 meaning sell. We usually downgrade stocks at this kind of serious move. A 13 point 75% gain in a single session, 30%. But I said this morning that we can't take it from one to a two. It's just too darn good. CEO Scott Strasik has an unassuming air. I've tried to get him going about these incredible numbers and why not? I mean Don the shirt partner. I want him to be more effusive about the company's significant growth not just in turbines but also electrification. I thought he should talk more about how power was a dead end business for years and years. A simple replacement of coal business with natural gas and some maintenance. Not anymore. Now it's all Greenfield development. But 80% of their customers are traditional utilities. 20% of data centers. You know what that actually could start flipping as these big hyperscalers. They don't want to be accused of jacking up consumer electricity prices. So I think we'll try to build their own power plants with even Overnova. By the way, Jeep Renova is the only serious nuclear energy builder and it's putting up the first new plant in ages in Ontario. So far so good. It also going to start building nuclear reactors for the Tennessee Valley Authority. Although stressing says nukes are 2032 business. Remember the rest of them that you're trying to buy? They tend to be science projects. Now Jeep Nova has Win two which used to be the fastest growing business but now is a drag on earnings. It can't interfere with the greatness here though and that's what you should be thinking about. How long can this last? I think it's just beginning. Don't forget the legendary Jensen Wong from Nvidia talks about the five layer cake from Bottoms up is energy, then chips and infrastructure models and applications. When you think of power, you need to know that the plurality is made by GE Vernova's machinery. Yep, this quarter was indeed one for the ages. Alexa is always a Bulma summer, I promise. Find it just for you. Radio Money I'm Jim Cramer. See you tomorrow.

[Julia Boorstin]

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 introducing fidelity trader

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