Mad Money w/ Jim Cramer – Episode Summary (May 12, 2025)

Hosted by CNBC’s Jim Cramer, the May 12, 2025 episode of "Mad Money" delves into the recent U.S.-China trade agreement, its immediate impact on the stock market, strategic investment opportunities, and insights from industry leaders. The episode combines market analysis, expert interviews, and a dynamic Lightning Round segment to provide listeners with actionable investment advice.

1. U.S.-China Trade Agreement & Immediate Market Reaction

Jim Cramer kicks off the episode by discussing the unexpected agreement between the United States and China to temporarily halt escalating trade tensions. This move led to a significant surge in the U.S. stock market:

• Market Surge: "Dow jumping 1,161 points, the S&P surging 3.26%, and the Nasdaq polling 4.35%" (00:01:56)

• Historical Context: Cramer references past events to highlight the rarity of such positive market surprises from White House interventions. He notes similar market boosts following previous tariff adjustments, illustrating a pattern of investor optimism when trade tensions ease.

  “It's a spectacular day for the bulls, one of the smartest I can recall.” (00:03:15)

• Investment Strategy: Emphasizing the unpredictability of timing the market, Cramer advises investors to remain invested rather than attempting to time their trades based on short-term market movements.

  “Bottom line, it's better to stay in, stay on and let a ride than to try to pick the perfect moment to trade in and out.” (00:11:21)

2. Beneficiaries & Impacted Stocks

Cramer identifies sectors and companies poised to benefit or suffer due to the tariff agreements:

• Winners:

  • Apple, Broadcom, Nvidia: These tech giants saw substantial gains as tariffs eased, boosting investor confidence.

  • Financials & Consumer Discretionary Stocks: Unexpected surges in traditionally vulnerable sectors, such as Goldman Sachs and Capital One, underscored the broad impact of the tariff rollback.

    “These three soared with the latter Capital One most sense of the potential defaults because of its poor credit card clientele that skyrocketed more than 6%.” (00:07:45)

• Losers:

  • HPE (Hewlett Packard Enterprise): Despite holding steady, Cramer advises caution due to intense competition in the sector.

  • Chevron: While offering a solid dividend, Cramer acknowledges the inherent risks associated with oil stocks.

3. Interview with Connor Flynn, CEO of Kimco Realty

A significant portion of the episode features an in-depth interview with Connor Flynn, CEO of Kimco Realty, a leading Real Estate Investment Trust (REIT) specializing in shopping centers.

• Company Strengths:

  • Supply and Demand Dynamics: Flynn explains, “Supply is the big benefit to Kimco Realty. We are all the commercial real estate sectors. Shopping centers are the lowest amount of new supply under construction.” (15:27)

  • Tenant Quality and Vacancy Rates: Emphasizing strong fundamentals, Flynn highlights Kimco's ability to maintain low vacancy rates through strategic tenant placements, such as healthcare providers enhancing their properties.

    “Most Kymco shopping centers are dominated by a grocery anchor like Kings or Whole Foods Trader Joe's or sprouts or TJX... all about services, services, services.” (16:50)

• Investment Rationale:

  • Yield and Stock Buybacks: Kimco’s robust balance sheet enables it to buy back shares during market dislocations, presenting a compelling value proposition for income-focused investors.

    “We're going to take money and buy our stock back. But that's precisely what you did.” (20:22)

• Future Outlook:

  • Mixed-Use Developments: Flynn discusses plans to develop parking lots into mixed-use spaces, integrating apartments with retail to drive mutual traffic.

    “We're entitling 12,000 apartments to be built on our parking lots of the future.” (17:30)

4. European Markets Performance & Investment Opportunities

Cramer shifts focus to international markets, particularly Europe, highlighting their impressive performance compared to the stagnant U.S. market.

• Market Comparison:

  • European Indices: The STOXX Europe 600 and Euro Stoxx 50 have surged over 7% and 10% year-to-date, respectively, outperforming their U.S. counterparts.

    “The Stocks Europe 600... is up more than 7% year to date. Meanwhile, the Euro Stoxx 50... is up just over 10% year to date.” (12:48)

• Key Performers:

  • Germany’s DAX: Up 18% with leaders like Rheinmetall AG and Commerzbank AG driving gains.

  • Spain’s IBEX 35 & Italy’s FTSE MIB: Both indices showcase strong growth, led by defense and financial sectors.

• Investment Vehicles:

  • ETFs: Cramer recommends ETFs such as the Vanguard FTSE Europe ETF (VGK) and iShares Core MSCI Europe ETF for broad exposure.

    “The iShares Core MSCI Europe ETF, that's the IE, that's up almost 18%.” (22:09)

5. Lightning Round Highlights

In the interactive Lightning Round segment, Cramer addresses listener questions on various stocks:

• Bondolese & Eli Lilly:

  • Jim Cramer advises: “I want you to buy more” of Eli Lilly, citing positive data and strong performance compared to competitors. (09:44)

• HPE (Hewlett Packard Enterprise):

  • Recommendation: Cramer advises against investing further in HPE due to persistent stagnation and intense competition. (11:21)

• Pfizer & Chevron:

  • Pfizer: Encourages holding due to potential growth from acquisitions.
  • Chevron: Supports adding to positions for its solid dividend yield, albeit with caution regarding the oil sector. (30:19)

• ADT & DVN (Devon Energy):

  • ADT: Expresses uncertainty; recommends further research before making a move.
  • DVN: Advises against loading up due to poor performance. (42:51)

6. Interview with Rohit Kapoor, CEO of Excel

Cramer interviews Rohit Kapoor, CEO of Excel, focusing on the integration of Artificial Intelligence (AI) in business operations.

• AI Integration:

  • Operational Efficiency: Kapoor explains how AI has transformed Excel’s business process outsourcing by enhancing data analytics and productivity.

    “AI is being a terrific boon for us. It's something which is powering ahead a lot of efficiency and productivity.” (32:10)

  • Success Factors: Emphasizes mastery over data, understanding business context, and iterative AI implementation as critical for successful AI adoption.

    “You need to understand the domain and the business context... mastery over data... AI requires iteration.” (34:09)

• Market Position:

  • Consistent Growth: Excel has shown 19 consecutive quarters of incremental earnings growth, positioning it as a reliable investment in the AI-driven market.

    “For 19 consecutive quarters we've been able to incrementally increase our earnings and show the growth.” (37:23)

7. Critique of Billionaire Commentators

In a poignant segment, Cramer critiques the persistent bearish outlooks presented by wealthy billionaires on the network:

• Paul Tudor Jones Example: Cramer references Jones’s negative commentary on tariffs and the Fed’s policies, which contradicts recent positive market movements.

  “...they're always the first to be annihilated by any declining activity.” (44:13)

• Investor Guidance: He warns listeners to take such pessimistic views with a grain of salt, emphasizing that overly negative predictions often fail to materialize and can lead to missed investment opportunities.

  “These people are rich enough that they can afford to be incredibly risk-averse, but that makes their commentary somewhat suspect for the vast majority of investors.” (47:52)

• Market Resilience: Cramer underscores the importance of maintaining a positive investment stance despite external bearish opinions, citing historical market resilience.

  “If you took his advice, you would have missed one of the biggest days of the year.” (44:30)

Conclusion

Jim Cramer wraps up the episode by reiterating the potential of both U.S. and European markets, highlighting strategic investment opportunities, and encouraging listeners to stay informed and confident in their investment choices despite prevailing negative sentiments from high-profile billionaires. He emphasizes the value of diversification, staying invested, and leveraging expert insights to navigate the ever-evolving market landscape.

Note: All timestamps correspond to the original transcript timing for reference.