Mad Money w/ Jim Cramer 4/9/26

Summary

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Mad Money w/ Jim Cramer – April 9, 2026: Episode Summary

Episode Overview

In this Mad Money episode, Jim Cramer explores a two-front “war” in the markets: while geopolitical turmoil from conflict in Iran should dominate headlines, Wall Street’s real focus is the internal battle between hardware (especially AI-driven chipmakers) and software companies—reshaping the tech landscape. Cramer delivers his trademark high-energy analysis, offering historical perspective, actionable insights, and in-depth looks at Levi Strauss, Vita Coco, and the AI research disruptor ARU, alongside his signature Lightning Round stock advice. The episode closes with a detailed reaction to Amazon CEO Andy Jassy’s shareholder letter and its bullish implications for Amazon’s future.

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Key Themes & Discussion Points

1. The Tech War: Hardware vs. Software (00:52 – 08:55)

• While international crisis (the war in Iran, oil prices, Middle East uncertainty) should be front-of-mind, market focus is diverted to tech’s internal struggles: hardware and AI triumphing over legacy software.
• Cramer frames the situation as a historical reversal: software once “ate” hardware, driving the market since Microsoft’s IPO; now, the rise of AI chips and hardware is dethroning software stocks.
• The IGV Software ETF’s components (Palantir, Microsoft, Oracle, Salesforce, Palo Alto Networks, CrowdStrike, AppLovin, Intuit, Adobe, ServiceNow) all suffered, many with steep losses; meanwhile, hardware and AI names (Intel, Nvidia, Micron, Western Digital, KLA, ASML, Vertiv, Marvell, etc.) surge.
• Noteworthy analogy to biblical and cinematic conflict: "hardware slew software like Cain slew Abel." (08:52)
• Quote (Jim Cramer, 08:53):
  "Maybe tomorrow we return to the worldwide narrative, whether it's war or peace... But for now, it's just another day when hardware slew software like Cain slew Abel and all I can do is say get used to it. You may think these stocks don't deserve it, but as Clint explains to Gene in that unbelievable scene in Unforgiven: 'Deserve's got nothing to do with it.'"

2. Lightning Round & Callers: Retail, Reddit, and Stock Opinions (08:55 – 12:04)

• Betsy from California: Asks about a retailer with strong gross margins and a Dallas Cowboys partnership (implied: Abercrombie & Fitch). Cramer bullish, endorses her detailed research.
  Quote (Cramer, 09:35):
  "I think go with your gut on this one. You know it well. You've done the homework. Buy it."
• Bob from California: Deep loss on Reddit stock; Cramer notes the company is good but the market is punishing all software, regardless of fundamentals.
• Cramer re-emphasizes the software vs hardware dynamic impacting stocks regardless of company strength.

3. Levi Strauss’ (LEVI) Comeback Analysis (13:26 – 19:35)

• Levi's, once a struggler, is now a top performer under CEO Michelle Gass (since 2024), up 52% YoY.
• Gass cut underperforming businesses (Denizen, Dockers), pushed into premium/women’s, built partnerships (Nike, Suikai), and bet big on DTC/e-commerce, seeing results.
• Recent quarter: 14% revenue growth, 9% organic growth, strong Americas gains, 16% DTC sales up (21% e-commerce), improved margins.
• New guidance beats expectations and is conservative due to outdated tariff assumptions—real upside likely higher after Supreme Court rolled back most Trump tariffs.
• LEVI trades at a relatively low P/E versus peer group, still offers growth and a 2.5% yield.
• Quote (Cramer, 18:02):
  "Levi's has bet heavily on the direct to consumer channel, especially the online business, and that bet is paying off and that is a great bet."

4. Vita Coco (COCO): A Healthy Beverage Standout (21:23 – 27:47)

• Vita Coco, a coconut water company, IPOed in 2021, struggled early, then skyrocketed 560% since late 2022.
• Holds dominant market share: 42% US, 80% UK, 39% Germany. Young consumers drive growth (initially for hangover cures, now workout drinks, smoothies, mixers).
• Fundamentals: 13% net sales CAGR since IPO, 28% EBITDA CAGR, 25% EPS CAGR, $200M cash and no debt.
• Forecast: 12-15% revenue and 24-30% EBITDA growth. Added to S&P SmallCap 600, recent pullback due to valuation, but Cramer sees opportunity ("rare chance to buy a long-term winner on a 20% dip").
• Quote (Cramer, 26:58):
  "This is the kind of stock I look for all my life. When a company has reported mid February, it technically had a mixed result... But the quarter was still a positive catalyst thanks to Vita Coco's impressive full year forecast."

5. ARU – Teenager-Founded AI Company Disrupts Market Research (31:00 – 38:52)

Interview with Cameron Fink (CEO & Co-founder) and Ned Koh (President & Co-founder)

• ARU simulates human behavior for companies using behavioral data, not surveys—training thousands of models on SKU-level sales, purchase history, click-throughs, music and podcast streams.
• Gained billion-dollar valuation in 2 years; high-profile clients like Accenture and McDonald's.
• Cramer probes ARU's methodology, data acquisition, and ability to model market disruptors (notably GLP-1 weight-loss drug users and their consumer behavior).
• Insights: ARU can distinguish real GLP-1 behavior impact, track the evolution of users (medical necessity, aesthetic choice, now even fit users seeking cutting-edge health hacks), and spot consumer trends (such as the growing "protein pandering" in food/CPG sectors).
• For traditional SaaS, ARU's data shows enterprise buyers maintain double the confidence in legacy software like Salesforce vs. newer startups, suggesting resilience contrary to stock market punishment.
• Quotes:
  • (Fink, 31:35): "We're training thousands of models that understand human behavior from the ground up... we're not looking at polls, surveys, focus groups. Instead we're training our model on top of real behavioral outcomes."
  • (Ned Koh, 32:54): "In rare cases, do companies ever actually... need to give us data to train into our model to predict behavior, which is part of the most unique aspect."
  • (Fink, 37:37): "Enterprise buyers had two times more confidence in traditional software businesses... starting off on a strong foot with traditional SaaS."

6. Lightning Round Highlights (39:14 – 43:11)

• Swift-fire buy/sell takes included:
  • Qunify Electronics: Undervalued, bullish, “most undervalued of data center stocks right now.” (39:46)
  • Newsmax: Losing money, not recommended. (40:10)
  • D-Wave/Quantum Stocks: "More of a science project," high risk. (40:26)
  • Plug Power: Disappointing, too long without profitability. (41:29)
  • Regeneron Pharmaceuticals: Breaking out, bullish on CEO Len Schleiber. (42:45)
  • Plus bullish commentary on MasterCard and encouragement for Kimberly-Clark holders.

7. Amazon’s (AMZN) Bullish Outlook After Andy Jassy’s Letter (43:24 – End)

• Despite recent underperformance, Amazon surges after CEO Andy Jassy’s annual letter.
• Jassy highlights AWS scale ($161B sales expected), huge AI/capex investments, satellite ambitions, and commitment to monetizable new businesses.
• AI is not hype: “My strong conviction, at least for Amazon, is that the answers are no, no and yes” (are AI returns overhyped, is it a bubble, are margins attractive?). (44:20+)
• Amazon has customer commitments for future AWS/AI capacity, developing its own chips, and is poised for significant returns.
• Cramer, reassured, says he’d even buy more Amazon on a dip.

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Notable Quotes & Memorable Moments

• Market Narrative Flip (Cramer, 08:53):
  "For now, it's just another day when hardware slew software like Cain slew Abel and all I can do is say get used to it. You may think these stocks don't deserve it, but as Clint explains to Gene in that unbelievable scene in Unforgiven: 'Deserve's got nothing to do with it.'"
• On Levi’s Revival (Cramer, 18:02):
  "Levi's has bet heavily on the direct to consumer channel, especially the online business, and that bet is paying off and that is a great bet."
• On ARU's Disruption (Fink, 31:35):
  "We're training thousands of models that understand human behavior from the ground up. So as you mentioned, we're not looking at polls, surveys, focus groups... we're training our model on top of real behavioral outcomes."
• On AI Hype at Amazon (Cramer paraphrasing Jassy, 44:20):
  "...my strong conviction, at least for Amazon, is that the answers are no, no and yes."

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Timestamps for Key Segments

• Market/Tech Commentary: 00:52–08:55
• Lightning Round (Retail, Reddit, calls): 08:55–12:04
• Levi Strauss Deep Dive: 13:26–19:35
• Vita Coco Breakdown: 21:23–27:47
• ARU AI Company Interview: 31:00–38:52
• Lightning Round (Stock Picks): 39:14–43:11
• Amazon/Jassy Letter Analysis: 43:24–47:26

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Summary

This episode offers an insightful and fast-paced guide to current market dynamics, especially in the tech sector, with historical context and actionable advice. Major highlights include Cramer's analysis of the seismic shift from software to hardware, bullish calls on Levi Strauss and Vita Coco, a revealing interview with AI disruptor ARU’s founders, and a re-affirmation of Amazon’s staying power beneath the AI wave. Cramer's blend of rationale, humor, and storytelling frames the show as both a market check-in and a practical investing classroom.

Transcript

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[Jim Cramer]

AT&T business Wireless connecting changes everything. My mission is simple to make you money. I'm 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 Man Money. Welcome to kramerica. Other people make friends. I'm just trying to make a little money here. My job is not just to entertain, but to teach you. So call me at 1-800-743-CNC. Tweet me at. Jim Cramer. Today's action should have been centered on stocks that have been impacted by the war in Iran. We have a fragile truce. We don't know if the Strait of Hormuz will be open for traffic or if Israel will keep bombing Beirut. Oil's rallying, interest rates were steady. President may at any moment decide that Iran's not playing ball. These are incredibly consequential issues that the market just doesn't seem to have have any time for. The averages tell you that Today the Dow gained 276 Point S&P advanced.62%. Nasdaq climbed.83%. That's the seventh straight up day for the S and P which seemed to reflect the truce will hold. No more bombing, just acceptance by both sides. But somehow the Gulf's not the narrative of this market. Instead, the averages tell us an alternative tale, nothing to do with the war at all. The they tell a story of an empire torn asunder, ripped to pieces by a handful of companies. I'm talking about the enterprise software empire that's being toppled by hardware stocks and AI. This war in tech more than the actual Iran has captivated Wall street, but it's not talked enough or explained about enough on TV or frankly even just set out for you on Main Street. So let me do that. Let me set the stage. Once upon a time, there was no such thing as the software industry. Sure we had hardware and there were some junior code companies, but they didn't matter. We traded Texas Instruments, Motorola, Intel, Semis all. We had a bunch of other iconic tech names we called them bunch short for Burroughs, Univac, NCR control data, I own 4% and Honeywell. Oh, and let's not forget the big one, IBM, which had a vast storage space with plenty of software. Just we didn't really call IT software. In 1986 the world changed. That's when Microsoft came public with the help of Goldman Sachs. I don't know. In my previous life I helped bring the company into Goldman, but I didn't get any credit for it because I poached the state of Washington wasn't in my territory. They wouldn't even pay for my airfare or my medical care. As I blew out my eardrum, flying with a cold. Our research department had a crackerjack analyst in the case. And the small group got a real lift along with Microsoft, which instantly became one of the greatest stocks ever minted. Everyone owned it and even better, no one really understood it. That was a big thing about Microsoft, not an understanding. We had an anything of what they did. We knew that they were inside the personal computer and the bigger companies too. We were excited about the growth potential. But many of the people who owned it only knew one thing. The stock went up. Very important. Remember this is the 80s pieces were still clunky, not really a consumer product. Yet Microsoft never quit. Others joined the fray. They were all embraced and like Microsoft, they tended to rally about 30% on the first day. And then they kept right on going. There was an endless appetite for these software stocks. It was like an opera at its end where we just kept saying bravo and asking for more. Sure enough, over the years they gave us plenty and we tried our best to understand each one, but we couldn't. We own what we call the buy side. Clients had to hire people who could figure these things out and separate the wheat from the chaff. The research houses had to do the same thing. Software seems so ethereal, so difficult, but who cared? It went up. Next thing you know, the Internet took off and the software companies dominated that too. Now, at the same time, sulfur strode the world like a colossus. We had IT hardware companies that collected and stored discs the way we used store music on records. We had intel. It made the hardware guts for the PC along with a big cohort of component makers. We had Dell, we had hp, we had a little teeny amd but everything, all the money is made in software, frankly. Software 8 hardware for lunch over time, software became so valuable that the elite companies were able to charge not just by the client, but by the person. It was a bonanza riches for the software as a service companies or SaaS. And you felt like a damn fool if you didn't go to Stanford and study computer science. I turned down Stanford, which is why I'm standing up here at 6pm and talking to you about those who cashed in. While those software companies were being minted, another group of companies run by a new generation of entrepreneurs developed hybrid models, a little bit of hardware, some software, some social, some retail. We called them Facebook, Amazon, Netflix and Google FAES 13 years ago. We then added Apple throwback State of the Game. We never got around adding in video though, as I think and as the keeper fang I could have. It's just that the F became the M and meta and the G changed the Alphabet so we lost the acronym potential. These companies were thought to be a little bit of everything. And when Nvidia Semiconductor Co. Came along with a machine that was fast enough to do the things we could only dream about, well Nvidia passed. Microsoft became the biggest company on earth practically overnight. Nvidia's machines were so powerful that a whole new class of companies was born. These AI companies we called and figured out how to create new products and did things with all that electric speed that video gave you. It's little how Microsoft took over the world using Intel's hardware in the 80s and 90s. Get the illusion. Maybe we should have realized that these new machines could trounce the old machines. They could eat the software that ate the hardware. But other than Ben Righteous over at Melius Research, you don't really hear the illusion very much. It's almost taboo, especially when it comes to, ironically, Microsoft. But today, a day when everyone should have been focused on the strait of Removes, oil and Beirut, we saw the hardware stocks put the wood right to software. All software, even the ones that are doing fine. At one point it was so ugly I couldn't even look. Had to take the glass. Thank you. If you look at the IGV, this is this giant software ETF. You see exactly what's going on underneath. Consider the 10 largest components of this ETF. Are you ready. Palantir down 7%, Microsoft down a third of percent which down much more at one point. Oracle down 3.7%, Salesforce down nearly 3%, Palo Alto Networks down 4%, CrowdStrike down 7%, AppLovin down 3%, Intuit down almost 7%. Even though it's tax season. Adobe down nearly 4% and Service now down nearly 8%. And again all those were much worse in the middle of the day. This ETF is primarily the way. That's the way that big institutions bet on or bet against software. It's also how they hedge their tech positions. It's incredible because some of these companies aren't even traditional. Software plays Palo Alto and crowdstrike their cybersecurity into it. Does taxes and financial services something you often need a human for. They shouldn't be in the index. They're being dragged down by this index, though everybody knows it. No one knows what to do about it. And now hardware, of all things, is triumphant. Intel run by the redoubtable Lip. Bhutan's back. And these Killian, Seagate, Sanders, Micron, Western Digital. They're back from the dead. And videos came the companies that make the machines to manufacture more chips. Plot Materials, Lam Research, kla, asml. They're killing it. So is Core. We Marvel Tech, Corning, Lumensum, Q and A, Vertive and a small group of other winners every day. Now there are plenty of fellow travelers in each camp. If you're in the software camp, you being treated as if you're ready for the embalmer. If you are in the hardware and AI camp, you're headed for the pantheon of greatness. Soon to be joined of course by those two kings of Croesus, Open AI and Anthropic, along with hardware users. Amazon, Meta Alphabet, nay, Google. Here's the bottom line. Maybe tomorrow we're turned to the worldwide narrative, whether it's war or peace, but the middle in the Middle East. But for now, it's just another day when hardware slew software like Keynes flew Able and all I can do is say get used to it. You may think these stocks don't deserve it, but as Clint explains to Jean in that unbelievable scene, Unforgiven deserves got nothing to do with it. I want to start the calls with Betsy in California.

[Betsy (Caller)]

Betsy, hey, hey, Kramer. This is your tapestry gal. But I'm calling on a different one. I'm calling on a retailer. I'm calling on a retailer where the gross margins of 63.3% and that means only 36.6, 6% go to suppliers. Number two, they're ahead in a one adoption number number three, as if they couldn't be bizarre enough, they have a multi year partnership that they just inked with the Dallas Cowboys. They have Gigi Perez giving her little concerts and everything. And I don't think anybody wants to bet against Fran Horowitz.

[Jim Cramer]

Jim, you know Betsy, I'm listening to. I'm assuming you, Betsy, you're smarter than I. You know it well, I think the bounce back was real but after listening to you, I think the bounce back is very for real. I think go with your gut on this one. You know it well. You've done the homework. Buy it. Okay. I want to go to Bob, also in California. Bob.

[Bob (Caller)]

Hi Jim. Really good to be on with you. Thanks for taking Bob.

[Jim Cramer]

I'm glad you're on. Thank you. Thank you so much. How can I help you?

[Bob (Caller)]

Well, I'm a club member and I called you a long time ago. This is the first time in a long time and.

[Jim Cramer]

Okay.

[Bob (Caller)]

I'm calling about Reddit because I'm, I've been holding it. I have a big loss in it on paper and I know what you said about it in the past that it doesn't really deserve what how the market's treating it. What do you think now though?

[Jim Cramer]

I'm glad you asked me. I was talking about it today. It's down 40%. We use it for my wife's Mezcal because it's just got a good Mezcal affinity group. I think a lot of people use it. They don't charge enough. I shouldn't say that now they're going to raise our prices but I think that they should there should be making more money off their different groups. But the company is really suffering right here. I'm sorry, the stock is suffering. The company's not big dispute over the Google feed and whether Google's good, treating them right. All nonsense. Reddit's a good company. Today was just another day where hardware beat up on software. Although at one point it was so ugly I can't believe it. At this point all I can say is you got to get used to this. I don't know where the bottom is made money tonight. Could Levi's become the next winner of the competitive apparel space? I'm digging in denim knickers this quarter to find out. I don't know. Betsy from California seems to know a lot more about me, more about this stuff than I do then shares of Vita Coco have been going nuts over the past year. So does this one have more room to run? I'm sure where I come down on this exciting story and Private Player ARU is aiming to revolutionize the way companies conduct research through a very different, very different way to do it. I'm going to sit down with the company's co founders, learn about what they're up to, so stay with

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[Jim Cramer]

A couple of nights ago we got another terrific quarter from Levi Strauss and Company, the denim kingpin and its stock sword. This has been a pretty tough time for the apparel category. I mean, really tough. But there are still some individual winners out there, like Ralph Lauren Tapestry, parent company of Coach. And now maybe Levi seems ready to join the club. The company's put together a string of excellent quarters under the leadership of Michelle Goss, who took over as CEO at the beginning of 2024. The stock's now up more than 52% over the last 12 months, but a huge chunk of that gain came yesterday when Levi's deservedly shot up more than 10% in response to his latest results. Even here, by the way, it's a couple of points away from its 52 week high set back in early October. Maybe that presents a good opportunity because Levi truly seems to be on the right track here. Now keep in mind, this company was struggling before goss took over. 2023 was brutal with flat sales and earnings per share plunging 27% year over year. Once gas came in at the beginning of 2024 though, she immediately got to work jettisoning jet to sending some underperforming businesses. In her first month as CEO, Levi's directly shut down the underperforming Denizen brand. A couple of months later they closed a small footwear business in Europe. And last year the company announced the sale of Dockers to Authentic Brands Group for $311 million in a deal that closed just over a month ago. Meanwhile, gossip and playing offense now targeting denim subcategories like women's tops and premium as well as sources of growth. Women's is big for them now. On the premium side, the company made a series of partnerships with iconic brands like Nike and the luxury Japanese fashion brand called Sukai. So far these efforts have gone very well. Over time, the new strategy has been paying off. In 2024, Levi's put up 3% revenue growth, nearly 14% earnings growth, 2025 delivered 7% organic organic revenue growth, 8% earnings growth, which is more impressive when you remember that this company was caught in the crosshairs of those early Trump tariffs. Now I've had the chance to speak of Michelle Goss several times over the past year and every time it feels like I'm asking her how she keeps putting up such robust numbers. A lot of it comes down to solid execution and growth from new ventures I just mentioned. Of course the numbers aren't always perfect. Few months ago Levi's reported a modest top and bottom line beat mixed full year forecast, especially in the earnings front. Stock initially sold off, but I told you to stick with it because the problems seem mostly one off. And they were. Which brings me to the quarter Levi's report on Tuesday night. Once again, results look very good. Revenue was up 14% year over year, up 9% organically when Wall street was only looking for 4.5% organic growth. The strength was broad based with the largest Americas region up 9% or 7% on organic basis and every other region and segment up double digits. Levi's direct to consumer sales jumped 16% thanks in large part to its digital business with e Commerce up 21% of both Wholesale Solid 2, up 12%. Now Levi's margins came down a bit year over year. But again, that's the tariffs we're about to annualize. Those plus the gross margin operating margin, both came in better than expected. That translated into a 5 cent earnings beat off 37 cent basis, up more than 10% year over year. Now, unlike three months ago when the company reported a robust quarter with guidance that was more of a mixed bag, this time Levi's gave us a solid quarter for the current current quarter and it also raised their full year forecast across the board. That's what we want to see for the current quarter. Levi's expects in line organic revenue growth and in line earnings for full year, though they bumped up their organic revenue growth target to 4.5 to 5.5% range and raised their earnings forecast by $0.02. Now, crucially, these numbers are too low and that's not my opinion. That's something management stated explicitly. See in Levi's original forecast, the company assumed it would be hit with a 30% tariff on goods from China, 20% tariff on goods from everywhere else. Those tariff assumptions are still baked into the numbers, even though the Supreme Court recently struck down most of Trump's tariffs. Now they're looking at a 10% import duty. If you use that number, the real number, Levi's gets a 7 cent earnings boost this year. Beyond the numbers, I like the story. I just like the story of the quarter, frankly. Levi's has bet heavily on the direct to consumer channel, especially the online business, and that bet is paying off and that is a great bet. On the conference call, Goss made it clear that the company's efforts to build the Levi's brand are working, especially the super bowl ad a couple of months ago. Its partnerships, including the one with Nike, continue to do well and Levi's is enjoying success all across its range of products in men's and women's tops and bottoms. And even with these new you've seen them on the street, the baggy styles, and I'm told kids love them, even if I really don't understand why. The hardest part of living through the 90s as an adult was keeping a straight face when you saw young people wearing those comically baggy jeans. But now people love them. Still, everything, everything seems to be clicking for Levi's, which is finally why the company got credit for a good quarter for the first time in what feels like ages. After taking a couple of years to get the right portfolio, invest in new areas and generally focus Levi's on his best opportunities, Michelle Goss has put this company in a great place people. And that's why the stocks worry. I'm not saying Levi's Wensley turned into another San Apparel category stock like Ralph Lauren or Tapestry, but I will say this. Both of those stocks trade at price 30s multiples in the low to mid 20s. Levi sells for just over 15 times the midpoint of this year's fairly conservative earnings forecast, while also giving you a 2.5% yield for good measure. If you don't understand what that multiple means and why a cheaper one lower one is better, that's one of the reasons why I wrote the book. It's really important that you understand price raised multiples. So the bottom line, if Levi's can keep putting up strong numbers, which I think it can, then this stock could have lots of upside ahead of it, even after it rallied more than 10% yesterday and tacked on another 4% today. MeMoney is back after the break.

[Show Announcer]

Coming up, consumers are going cocoa nuts for this beverage brand and they're pushing up the stock too. Don't miss Kramer's deep dive into Vita Coco Next

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T Business Wireless coverage, our delivery GPS wasn't the most reliable. Once our driver had to do a 14 point turn to get back on route. A 14 point turn. An influencer even livestream the whole thing. Not good for business. Now with AT and T Business Wireless, routes are updating on the fly and deliveries are on time. And the influencer did get us 53 new followers though at&t business Wireless Connecting changes everything.

[Jim Cramer]

Something I really like about my job. Every once in a while I come across the stocks rallying so hard I feel compelled to Take a closer look at figure out what the heck's going on. Take the Vita Cocoa Company. It's a beverage play with a health and wellness angle. It's been steadily chugging higher since it came public less than five years ago. The timing of that IPO is the reason why I missed this one. Vita Cocoa debuted in October of 2021, right as the flood of COVID year deals was coming to an end. Back then we were seeing dozens of new listings a month and nearly all of them came tumbling down in 2022. Bit of cocoa itself didn't do much for the first year, so the stock came up again 50$18 early on. But by late 2022 it had fallen to 7 bucks and change seemed like the one more piece of IPO flotsam. Since bottoming at $7 and change in November of 2022 though, this stock has rallied roughly 560% in a little over three years. That's after it pulled back a dozen points over the past few weeks. I think it should be a nice buy. Honestly, when you hear what I have to say about this, I don't want to get ahead of ourselves. I want to walk you through the story to explain why the stocks become such an expensive winner. But you know what? This is the kind of thing, this is how you build wealth, people. You own the index fund and you own a couple of stocks like this. This is not exactly a new company. Vita Cocoa was founded back in 2003 when two founders, Mike Kirbyn and Ira Learon, struck up a conversation with a pair of Brazilian women in New York City who told them they missed cocoa water coconut water from their home country. If digging into it, they set out to make coconut water mainstream in the United States. Hey, nice backstory. Vita Cocoa has grown significantly in the two decades since then, fueled by the rising interest in health and wellness products. Candidly, some of our younger team members here at Man Money told me that Vita Cocoa was only a drink that you bought when you had a hangover. But then again, a hangover cures pretty good pitch. In fact, the company CEO recently said that's how many college aged consumers first found the product. For the record, I was more of a heritage the dog fella. It always worked. Vita Coco has always been has also been a marketing as a workout drink. Lately it's a smoothie component and a mixer for cocktails. Today the product portfolio includes the original product Vita Cocoa branded coconut water, as well as a sustainable enhanced water product called Ever and Ever, as well as a protein infused water called Power Lift or PWR Lift. The main brand, Vita Coco has a dominant position in coconut water space in most places where it operates and the category itself is growing incredibly rapidly. In the US where they launched in 2004, Vita Coco has a 42% market share categories growing at a 22% clip. In the UK where Vita Coco launched in 2013 is an 80% market share and the category is growing by 32%. In Germany where Vitacoca launched in 2022, they have 39% market share in the category is growing at a 100 and 25% clip. Just as important, younger people seem to love this stuff. What a great set of figures. There are some other angles to the story that, while commendable, are not what I'd be focused on as a stock picker. Sustainable, environmental, friendly, supports lots of family farms. Nothing wrong with that. Makes for both good market and good business. But what matters are the numbers. And the numbers have been downright Fantastic. Fantastic. From 2021 when Vita Coco came public to last year, net sales have risen at a compound annual growth rate of 13%. Adjusted earnings for interest, taxes, depreciation, amortization have been growing at a 28% compound annual clip 28%. Vitacock has also been profitable since coming public, which is nice to see, isn't it? And its earnings per share have grown at a 25% pace from 48 cents per share to A$19. On top of that, Vitacoc has a pristine balance sheet with nearly $200 million of cash and zero debt as of the end of last year. This is the kind of stock I look for all my life. When the company has reported mid February, it technically had a mixed result with better than expected net sales and adjusted EBITDA and also a 3 cent earnings per share miss off a 12 cent basis. But the quarter was still a positive catalyst thanks to Vita Coco's impressive full year forecast. They're talking 12 to 15% revenue growth and 24 to 30% EBITDA growth. Growth both better than expected. And guess what? Now you're getting that terrific full year forecast completely for free. By the Cocoa stock is trading around 56. When it reported it got as high as 61 and change in March, but it's since fallen back all the way to $48 and change. I didn't see anything wrong with Cocoa specifically that might have caused that kind of pullback. I looked for it. In fact, the only major development over the past couple of weeks was a positive one. Vitacoca was just Added to the S and P small cap 600 late last month. But still with this retreat, you know what? The Stock's down over 20% from its high and even down 8% year to date. I also like that kind of stock. I look for these. Really what the pullback reflects is the simple fact that the stock is a relatively high price to earnings multiple. I talk to you about those a lot. It's trading at just under 32 times this year's earnings estimate. I won't deny it, that's pretty rich for beverage company. But here's what I will say. First, throughout the entire time the Vita Coke has been public, its shares are traded mostly in the 25 to 40 times earnings range. And if you let that valuation keep you out of the stock, you know what you would have missed? Second, the companies expect to put up 30% earnings growth this year. And there's nothing wrong with paying 32 times earnings for a company that can grow at a 30% clip. Growth oriented money managers will typically be willing to pay a price to earnings multiple that's 1 to 2 times the growth rate. So 32 times earnings is much closer to 4. This ceiling for this stock plus when you look at next year, Vita Cocoa should earn A$80 per share, meaning it sells for more than it sells for about 27 times next year's numbers. That's perfectly reasonable given its incredibly high growth rate. Putting all together, I like what I see from Frieda Coco after finally taking the chance to get into it. I'm sorry I didn't do it earlier. This is a uniquely strong story within the troubled food and beverage space. One that's very much on trend with with younger consumers. Which is why this company is taking share all over the world. Here's the bottom line. You rarely get a chance to buy a powerful long term winner after a quick 20% pullback. Especially when that pullback appears to have very little to nothing to do with the fundamentals. But that's exactly what's happened to Vita Cocoa. When a terrific company like this comes around, I think you should take it. Let's take some calls. Let's start with Dave in Massachusetts. Dave.

[Dave (Caller)]

Hey Jim, thanks for taking my call. I've been watching your show for years and I've got a lot of great trades from it.

[Jim Cramer]

That's terrific. It's been a tough couple days for me and when I hear that, I'm so glad. So thank you very much. Let me go to work.

[Dave (Caller)]

Twenty years ago you said to back up the truck on Mastercard and I

[Jim Cramer]

did and it's such a great company. It's such a great company still is Michael me backs doing a great job. I know those stocks have fallen out of favor but I really like it but go ahead I'm sorry I know that wasn't the one you wanted to talk about.

[Dave (Caller)]

Yeah no I'm calling you about KMB Kimberly Clark tonight. I'm into it. I probably bought too much too quick come into it the whole lot for about $103 and it seems to be stuck in the mud.

[Jim Cramer]

Well Dave remember just had that fire to six alarm fire at its largest distributor distribution center of of toilet paper let's you know Mike Shu did not necessarily set that out that for that to happen five and a quarter percent let's go over this five and a quarter percent yield buying 10 view it's going to be added to the situation I am going to stick my neck out and say even though it's at 13 times earnings I think you should buy more Dave. I really do. I think you should average down. I know people don't like to hear that but I'm. I have great faith in my shoe and I think at five and a quarter yield I want to own Kimberly Clark. Okay look despite a Coco's recent pullback gives you a great opportunity to get into this company at a cheaper level I think than you really should normally have. Now there is much more money ahead. ARU was only founded a couple of years ago but it's already being valued at over $1 billion thanks to its AI product. So could this company represent the next wave of AI disruptors And can it help us make money with the research search? I've got the co founders on the next to find out and shares of Amazon haven't been able to get any traction this year at all. But could Andy Jassy's shareholder letter provide a spark for the stock? I'm sharing where I come down but you see where the stock came down today and of course all your calls rapid fire in tonight's edition of the Lightning round. So stay with Crank. Tonight I want to remind you why artificial intelligence is truly exciting. Not just a way for business to cut costs. Consider the case of aru. This is a startup founded a couple of years ago by a group of teenagers that already has $1 billion plus valuation. Now the pitch is simple but ambitious. ARU wants to be the most accurate in the world at simulating human behavior. Not through consumer surveys. That's really important. Not through focus groups. That's Even more important or polls, but do behavioral science, data analysis and Agentix. They basically create thousands of agents to break how people will behave. And they already have big contracts with major firms that you and I all know. Accenture, McDonald's. Why right now we're seeing heavy disruption across a host of industries. And this startup can help the companies in question figure out what people really want with a fresh outlook. So let's take a closer look with Cameron Fink, Aru's co founder and CEO and Ned Koh, he's the co founder and president. To learn more. Gentlemen, welcome to Man Money and thank you for coming.

[Cameron Fink (ARU Co-founder)]

Thank you so much for having us.

[Jim Cramer]

Excellent. All right, now we got to do a room 101 because this is your first time on May Money and you know, I'm very excited about what you do. Have spent some time with you because you're not just the usual intent to purchase, which we like very much. You're really predicting in a way that so far I have found to be astoundingly accurate. So I don't know how maybe you start, then you give, give it, you know, give it up to. I know, Cameron. I have full disclosure on Cameron Fink's father, who is right from, from Constellation Brands. But Cameron, maybe you should start and give us a little bit and then we'll, you know, we'll go from there.

[Cameron Fink (ARU Co-founder)]

Yeah, definitely. Well, first off, thank you so much for having us on and excited to tell you a bit more about how we predict human behavior. The core difference with us, we're training thousands of models that understand human behavior from the ground up. So as you mentioned, we're not looking at polls, surveys, focus groups. Instead we're training our model on top of real behavioral outcomes. Things like SKU level sales results, product purchase history. We're looking at campaign click through rates and music streams and podcast listens. Something where you have to make a decision and we can measure that outcome in order to be more accurate than anyone else on the call.

[Jim Cramer]

So now tell me, is this data that you are, how are you getting this data? Is it only from clients or you have other ways to, to be able to pick things up?

[Ned Koh (ARU Co-founder)]

No, I mean, I promise you.

[Caller in Lightning Round]

Right.

[Ned Koh (ARU Co-founder)]

Our business is 2 years and 10 days old to the day today. So you know, I have people know

[Jim Cramer]

that I like young entrepreneurs more than anything else I do on this.

[Ned Koh (ARU Co-founder)]

You know, we appreciate that. And you know, like given that time frame, if we had to take in data from customers. Right. We do a lot of work in very regulated industries, health care Financial services. Right down to levels where there's incredible restrictions on the data that you can access. If we had to take data from customers every single time we deployed, deployed, it would be incredibly, incredibly difficult. Right, right. Part of what we've been able to do that advantages us so much at ARU is sure some of this information is public, but if you're going to model a population, you need to know things as basic as, you know, do they have running water?

[Jim Cramer]

Right.

[Ned Koh (ARU Co-founder)]

You might be able to get that publicly. You need to know things as localized as what are the things that they've bought. Maybe credit card purchase data that you'll buy, satellite data, things that you can extract from. But yeah, in rare cases, do companies ever actually, you need to give us data to train into our model to predict behavior, which is part of the most unique aspect.

[Jim Cramer]

Okay, well, let's deal with something that I have that very great frustration. I've tried to get CEOs to say what is the impact of the GOP dash once? Invariably their answer is there is none. Now we know that if so many people are taking there is not is not an acceptable answer. So why, why don't you tell me, Kim? Could you just kind of put the, the light of the people say, look, it doesn't have anything to do with anything because it's obviously something that is a game changer 100%.

[Cameron Fink (ARU Co-founder)]

I mean, the very first thing is that we're actually able to reach that GLP1 user audience in a way that no one else is. I mean, you look at the research that exists out there for GLP1 users today. What every business is making decisions off of its clinical research. Right. There's no real research that people have into the behavior impact that JLP ones. And so when we simulate JLP P1s, we're looking at the general population, we're looking at prescription GLP1 users and we're actually looking at gray market GLP1 users to kind of that next generation ones.

[Jim Cramer]

What you're seeing, would that be pill?

[Cameron Fink (ARU Co-founder)]

That would be pill. Or you know, in this case, really next generation drugs. Think Tirzepatide, retatrutide.

[Jim Cramer]

Gotcha.

[Ned Koh (ARU Co-founder)]

Things that aren't always prescribed, which is really important as well.

[Jim Cramer]

Right.

[Ned Koh (ARU Co-founder)]

When you talk about some of these emergent behaviors, people are getting access to these medicines that may not seen as traditionally needing it from a medical perspective.

[Jim Cramer]

Okay. Yeah.

[Cameron Fink (ARU Co-founder)]

And what you see is GLP1 users are breaking away from the general population in some very consistent ways. Think things like caring more about protein content of Course they're caring about adding healthier options. But what you're also seeing is that the shift between that current generation, the first and second wave of GLP1 users, right? I mean first we had people who had medically necessary GLP1s, right? Then we had people for whom GLP1s were an esthetic choice, right? Think about, you know, kind of urban, wealthier populations. And now what you're seeing is the third wave. You have already fit people who are starting to take GLP1 so that they can lean out and build muscle and get more into this post one health craze. Well, could those population is going to have totally different behavior.

[Jim Cramer]

Could those people say, want to be a little more on the wild side? Maybe Chipotle or maybe drink, maybe drink a little more?

[Cameron Fink (ARU Co-founder)]

Well, definitely. I mean those populations are already eating Chipotle, right? They're already going to drink. And so what you're going to see with those populations, especially on the gray market, they are going to continue to exercise a lot of those behaviors they have before.

[Jim Cramer]

Okay, so Ned, could someone, let's say you look at that and you say, well, wait a second, the McDonald's or there are a client of yours, maybe they should be changing up. Or maybe people, people say, you know what guys, you shouldn't be attempting to think that you can be good for me.

[Ned Koh (ARU Co-founder)]

Look, it's a great question and it's a question that these executives that QSR and fast casual businesses are asking themselves every single day, right? And they're going to make decisions around it. Do we need to launch different products? Do we need to change our prices? Do we need to position our marketing? And some of those decisions are going to go well and some of them are what we do know, right? There's a lot of unknowns on that side. What we do know and what we've seen in our simulations is that there are certainly brands that are better positioned for this than others, right? We like to call this around the office. It's a joke. We have. It's what's called protein pandering. Okay, like protein pandering, right? You have these CPG businesses, small companies who have started to really harp on this as a main fixation of a value proposition. Protein, protein, protein. And now you have some companies that are seeing that get pick up in the market at the larger scale, right? You know, I mentioned one that we've seen recently, even ourselves walking down the street on the way to get here, Starbucks. You can get 30 grams of protein in your morning coffee, right?

[Jim Cramer]

I think that it may be doing something. Remember, I have to take your information and try to make stock.

[Ned Koh (ARU Co-founder)]

Absolutely.

[Jim Cramer]

It's not your job, but I have

[Ned Koh (ARU Co-founder)]

to leave that to you.

[Jim Cramer]

But I felt when I read your work I said geez, you know, is Starbucks phony or is it real? Is, is McDonald's, you know, is it really protein or is it real? Or the Chipotle is really making a major effort to be protein.

[Ned Koh (ARU Co-founder)]

That's, it's an example that's really interesting because the those brands there are some of them that are innately positioned to take advantage of Protein's a core offering to Chipotle today.

[Jim Cramer]

Right? Right.

[Ned Koh (ARU Co-founder)]

Not to Starbucks.

[Jim Cramer]

No.

[Ned Koh (ARU Co-founder)]

And so what we've been seeing with our simulations and how we're working with companies on this is helping them focus on what really resonates with their consumers and not just might be a little bit of a fad because it works

[Jim Cramer]

for other business now. Lasting camera. I know I can't spend but I just enjoyed talking to you guys so much. It seems in what street that the software companies were all viewed as being dead. But you have done work which says that maybe a legacy company like Salesforce actually has more going for it. Maybe we should be more open minded.

[Cameron Fink (ARU Co-founder)]

I think this is one of the most interesting topics we've simulated in the last few months. We were taking a look at general portfolio managers, right. So think investor and the core investor audience and then also simulating procurement individuals inside of enterprises. Think your enterprise buyer. And what we were seeing is that that enterprise buyers had two times more confidence in traditional software businesses. Your Cloudflare, your Salesforce over the traditional businesses that are coming in. And that's not to say that there isn't going to be room for AI to come in. I just think it's going to be a question of these enterprise buyers are starting off on a strong foot with traditional SaaS. Okay, well it's going to be a question can anthropic move fast enough in order to.

[Jim Cramer]

To wipe? So I have to tell you the way I would use that just so people know is I'd say I keep an open mind. Salesforce goes down consistently. Maybe it's an interesting idea. We always have to stay open minded. You gentlemen have brought a lot of different contrary views that I already know. In one case alcohol was dead. Right. I want to make that point but I want, I want to thank Cameron Fink who's co founder and Nick Koh co founder and president of for aru and I tell you I just want to stay in touch with you guys because I think you have a lot of good stuff to say. Thank you very much.

[Cameron Fink (ARU Co-founder)]

Thank you so much for having me.

[Jim Cramer]

I appreciate it, man. Bunny's back here for the break.

[Show Announcer]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

It is time for the light on my step. And then the lightning round is over. Are you ready, Ski Daddy? Okay. With Sam in Pennsylvania. Sam, Jim, got an interesting one for you.

[Caller in Lightning Round]

So this company hit my attention when the headline I saw headlines about a $400 million deal from Apple, CUNY Electronics. It was out of Dupont and the stock's trading at 27 billion. So curious what you think of Qnity, especially with this news of the Apple manufacturing.

[Jim Cramer]

Well, you know, I'm glad you mentioned. Look, this quinity is just really an incredible stock and it was a spin off. We got a lot of it for our travel trust. We've held onto it. I think people should really look at. It's probably the most undervalued of the data center stocks right now. Let's go to John in New York.

[Caller in Lightning Round]

John, Jim, this meteor stock has no debt to settle lawsuits, a $20 price target. What do you think of Newsmax for 2020?

[Jim Cramer]

They're losing money. And I have found that buying companies that are losing money right now has been a losing bet. Let's go to Zoe in Maryland. Zoe, Hi, Jim.

[Betsy (Caller)]

I was wondering what you think about the future of AI and Quantum stock.

[Jim Cramer]

Do you see companies like D Wave as well positioned to rebound and. Well, I think it's more of a. Can we. It's more of a science project, which I don't mean, you know, look, it is. I'm saying maybe the science project works out, but it is more of a science project. Let's go to Amelia in New York. Amelia.

[Amelia (Caller)]

Hi, Jim. How are you?

[Jim Cramer]

I am good.

[Amelia (Caller)]

My call, Same.

[Jim Cramer]

Glad you're on.

[Amelia (Caller)]

I've been listening. I've been listening to you over the years. And now I'm retired. I get to see you in the morning and at night and thanks for all your advice.

[Jim Cramer]

Thank you.

[Amelia (Caller)]

There's a stock that I bought years ago. I made some money, I sold it kind of went down and tanked in and the earnings weren't good over the, you know, over the years. But I'm. I have a new interest in it. I've been watching it and I notice I made. I bought some. Made money to. Bought so half of it. And I want your opinion on Plug.

[Jim Cramer]

Plug. Yes, Plug Power I don't care for it. It should have made money by now. It's been way too long. It should not. It should have been making money. Let's go to Terry and Washington, please. Terry.

[Caller in Lightning Round]

Hello, Jim. Thank you very much for taking my call. It's truly an honor to be talking to you today.

[Jim Cramer]

Thank you.

[Caller in Lightning Round]

I am. I'm a longtime listener and a current reader of your latest book on how to make money in any market.

[Jim Cramer]

Thank you.

[Caller in Lightning Round]

Thank you. Thank you very much for your insight and your teachings and the great work.

[Jim Cramer]

Thank you. Staff is great.

[Caller in Lightning Round]

Investors make great strides.

[Jim Cramer]

Thank you for recognizing what the show's about. Thank you. Yeah, Great.

[Caller in Lightning Round]

I am looking at a pharmaceutical stock right now that has a forward PE of 18 to 19, a PEG ratio of about 1.6, rising earnings, excellent product pipeline. And since establishing my position in this, I've seen some concerning oscillatory behavior with some big downsides, followed by some. Some subsequent upsides. And I'm wondering what your thoughts are on Regeneron Pharmaceuticals.

[Jim Cramer]

I think Regeneron. I think Len Schleiber is doing an unbelievable job. I think the stock's breaking out here. I really do. I mean, I looked at it for the Chabot. We bought another stock. But those are the two I really like. I have to sneeze. Just a second. Okay.

[Bob (Caller)]

And.

[Jim Cramer]

Hey, listen, people on TV don't sneeze. I sneeze. I mean, look. I mean, there's nothing I can do about it. And that. Ladies and gentlemen, conclusion of the Lightning Round.

[Show Announcer]

The Lightning Round is sponsored by Charles Schwab. Coming up, could some positive AI news out of Amazon finally give this stock a boost? Kramer's taking a closer look.

[Jim Cramer]

Next. Boya Jim, your integrity makes you the

[Caller in Lightning Round]

booyah saint of Wall Street.

[Dave (Caller)]

Booyah, Jimmy, chill.

[Jim Cramer]

Booyah, Jimmy. Quadruple. That's a lot of booyahs. When you have a position that seems like it's just kind of marking time. Especially when it's a large position. You need to be sure that something hasn't gone wrong, either with the company or maybe with your analysis. That's how I've been feeling about Amazon, which we own for the childless trust. Look, here's a great company, all that, right? One we all love. But for the past five months, it's been a lackluster stock. So we need to make sure that maybe. I don't know, maybe it's lost his mojo. Sure enough, the annual Amazon letter came out today written by CEO Andy Jassy. And it reminds you of just how stupendous this company really is. I believe this must read letter is why the stock rallied 5.6% today. Jassy comes out of the web services business and starts his note talking about how AWB was a bit of an afterthought until it started taking on startup clients. Doordash, Pinterest, Slack and then only the CIA, Netflix, General Electric. Amazon Web Services should do $161 billion in sales a year. It's incredible. Now I've been concerned that Amazon was spending too much on satellites and drones. This letter tells me that I am wrong. The $4 billion they've committed will lead to as many as maybe 1 billion more packages per year. The low earth orbit satellite business will span the globe. It's going to offer Wi Fi to Delta while providing service for att, Vodafon, NASA, among many other enterprises. Governments Same day delivery is on the rise, which will help the grocery front again. I've been skeptical of grocery. I've watched the rise of Wal Mart's delivery business and I thought it was at the expense of Amazon. I'm more comfortable now, even as I am continually amazed by Wal Mart's ability to adapt. But back to Amazon. The thing they reassured the most about this stock was their tremendous commitment to artificial intelligence. Jassy put my mind at ease in incredible fashion. Listen to what Jesse's words here. I thought they were amazing. Quote I followed the public debate on whether this technology is overhyped, whether we're in a bubble and if the margins in return on invested capital will be appealing. He goes on to say, quote, my strong conviction, at least for Amazon, is that the answers are no, no and yes. How does he justify saying yes to this humongous spin? Here's how Jassy puts it. Quote we're not investing approximately $200 billion in CapEx out of 2026 on a hunch. Then he adds of the Capex we expect to spend in 2026, much of which we monetize in 2027, 2028. We already have customer commitments for substantial portion of it. Yes, all I can say is he wishes he had more compute. He wishes he could spend even more. Suddenly you hear from so many of Nvidia's customers, many of which Nvidia's Amazon's built. So much is on Nvidia and they are made a close partner. But the latter also says they develop their own chips which are in high demand. Scorching demand, I should say. Here's how Jesse puts that. Quote Our chips business is on fire changes the economics for AWS and we much larger than most thick and there it is. Exactly what I needed. A roadmap toward making a huge amount of money in a relatively shorter time than I thought investing in AI. And it's a lot more than just a smarter Alexa or a more exciting Rufus Several years ago, I asked Nvidia CEO Jensen Huang how buying his expensive chips would pay off. There's been a lot of gripe at the time about the cost, he said. You can get a 4 to 1 return on these chips. I don't know whether Amazon can get that kind of return on chips, but from the sound of things, I think it sure seems likely. Maybe even more so do I keep Amazon for the trust after reading the letter, honestly, even though we have an extremely low cost basis and we own more than enough of the stock, it was such a it sounded so good I'm tempted to buy more on the next dip. I don't know what else I can say other than thank you Andy. Great letter. I'd like to say, as always, more market summer problems with just for you or your man money. I'm Drew Kramer. See you tomorrow.

[Jim Cramer Disclaimer]

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. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer this is a

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