Mad Money w/ Jim Cramer - Episode Summary (May 13, 2025)

Host: CNBC’s “Mad Money” with Jim Cramer offers an insightful dive into the financial markets, featuring expert analysis, stock recommendations, and exclusive interviews with industry leaders. In the May 13, 2025 episode, Cramer navigates complex market dynamics, discusses significant stock movements, and engages with callers to provide personalized investment advice. The episode culminates with an exclusive interview with Martin Hoffman, Co-Chair of Disney Entertainment, providing an inside look at Disney’s strategic initiatives and market positioning.

Market Overview: The Impact of Tariffs and Presidential Policies

Timestamp: [01:57]

Jim Cramer opens the episode by addressing the dramatic market fluctuations triggered by President Trump’s introduction of "Liberation Day" tariffs. Drawing parallels to the Smoot-Hawley tariffs of the Great Depression, Cramer emphasizes the severe initial market backlash:

“President Trump's Liberation Day tariffs were much higher than the disastrous Smoot-Hawley tariffs that helped contribute to the Great Depression. It crushed the market, trillions were lost, bulls were turned into bears...” ([02:15])

However, Cramer highlights the remarkable market recovery over the past six weeks:

“Six weeks later, it's like the whole thing ever happened. Stocks have been bouncing back ever since, including today where The Dow dipped 270 points but the S&P gained 0.72%. The Nasdaq jumped 1.61%. The S&P at one point, down almost 17% at one point this year, is now positive for the year. It is an astounding comeback.” ([03:00])

He attributes this resurgence to several factors, including cooler-than-expected consumer price increases and shifting investor expectations regarding Federal Reserve rate cuts.

Sector Analysis: Defense and Pharmaceuticals

Timestamp: [04:30]

Cramer delves into sector-specific movements, noting unexpected performances:

“Stocks that thrive when rates go higher, the defense stocks, well, they got bruised today, all right? I mean, the drug stocks took it on the chin and it was the exact opposite of what you would expect.” ([05:00])

He explains that the initial market reactions were a result of hedge funds and fast traders being caught "offside" by the sudden policy shift, leading to selling pressures that have since subsided as the market realigns.

Presidential Policy Shift: From Anti-Market to Market-Friendly

Timestamp: [06:45]

Cramer analyzes the sudden pivot in President Trump’s stance on tariffs, questioning the motivations behind this change:

“Was it the executives who met with Trump and told him that his tariff plans would cause a huge amount of inflation and empty shelves and stores making people absolutely miserable?... Did Trump simply realize that he wasn't going to accomplish what he wanted to do, so he switched sides because. Well, why not?” ([07:15])

He concludes that this policy reversal has significantly benefited the market and individual investors who held their positions, contrasting them with those who bet against stocks.

Caller Interactions: Stock Recommendations and Insights

UPS Inquiry

Timestamp: [08:18]

Mike from Colorado Springs seeks advice on UPS, expressing concern over the stock’s decline despite a solid dividend:

“I bought UPS three months ago at 114 for a 6% dividend. After listening to the CEO at their last conference call called, she explained their plan for profitability post Amazon. The stock is now 100. Should I buy more? Hold or find a better.” ([08:35])

Cramer responds with a firm recommendation to sell UPS:

“I think the FedEx is going to clean their clock. Frankly, I think that Raj Subramanian is a better operator and you're on the wrong horse. I'm sorry, I thank you for the kind words, but you are on the wrong horse. Don’t buy.” ([09:03])

AT&T Performance

Timestamp: [10:15]

Dylan from Pennsylvania inquires about AT&T’s potential to break above $30:

“With their enterprise partnerships and driving a wave of IoT device and connected vehicle activations, which scales well on top of their core wireless and fiber network I was wondering Jim, do you think that they're going to be able to break above that $30 mark?” ([09:37])

Cramer responds positively, endorsing AT&T as a buy:

“I think it is going in the right direction and I would be a buyer of AT&T.” ([10:15])

Interview: Martin Hoffman, Co-Chair of Disney Entertainment

Timestamp: [14:14]

In an exclusive segment, Cramer interviews Martin Hoffman, providing an in-depth analysis of Disney’s robust performance and strategic initiatives.

Disney’s Market Resurgence

Hoffman discusses Disney’s remarkable six-session stock rally:

“I am very proud of my colleagues. I feel like we're in great shape.” ([15:26])

Cramer acknowledges Disney’s turnaround from a losing division to a growth powerhouse:

“You have an amazing breadth and you have fabulous IP... the fact was you were in a business that was losing a billion a quarter... and now it's the reason why we love Disney and why the stock won't quite.” ([15:36])

Strategic Content and Streaming Success

Hoffman elaborates on Disney’s content strategy and streaming success:

“Our strategy is it's really working. And ultimately we're looking at a few different elements that make a huge difference for us, starting with amazing stories and a unique type of story that you can only find at Disney... the films are amazing... They stimulate subscriber acquisition, they drive engagement.” ([16:42])

He emphasizes the integration of linear channels with streaming platforms to cater to diverse audience preferences:

“We look at our linear channels... as an opportunity to program for audiences that are still watching on linear. And then that same content is windowed onto streaming where it's on demand and available for subscribers whenever they want it.” ([19:00])

Competitive Edge Over Netflix

Addressing comparisons with Netflix, Hoffman asserts Disney’s unique ecosystem:

“You think about Disney Plus, it is the portal for Disney fandom around the world and those iconic stories and characters are activated in our parks, on our cruise ships, in consumer products. There are so many ways that we're able to optimize and monetize that content that other companies are not able to do.” ([21:31])

ESPN and Sports Programming Innovations

Hoffman highlights ESPN’s growth and innovative programming:

“ESPN BET Fantasy, the personalization of the studio programming of SportsCenter... it is going to blow people away. It's going to be, no pun intended, a game changer.” ([23:18])

Natural Gas Sector Analysis: Opportunities and Recommendations

Timestamp: [27:35]

Cramer transitions to the natural gas sector, noting a significant price rebound and its implications for investments. He outlines key stocks poised to benefit from this trend:

1. EQT Corporation (EQT)

   • Performance: Up nearly 22% year-to-date.
   • Cramer’s Take: “EQT is the Pittsburgh, Pennsylvania based operation that's the only large-scale integrated natural gas producer in the United States.” ([28:00])

2. One Oak (1Oak)

   • Performance: Despite a 14% yearly decline, remains undervalued with a 4.8% yield.
   • Cramer’s Take: “One Oak offers a unique value proposition if you believe in a major natural gas comeback.” ([29:00])

3. Enbridge

   • Performance: Up 18% over the past 12 months with a 6% yield.
   • Cramer’s Take: “Enbridge blocks in any shortlist of natural gas plays because they operate the continent's largest natural gas utility by volume.” ([30:00])

4. Cheniere Energy

   • Performance: Up more than 8% year-to-date.
   • Cramer’s Take: “Cheniere has many growth projects and I think you can keep building on its lead in this space.” ([31:00])

Cramer concludes with a bullish outlook on the natural gas sector, attributing the rebound to favorable presidential policies and increased demand for liquefied natural gas (LNG) exports.

Lightning Round: Rapid Stock Insights

Timestamp: [42:28]

In the high-energy Lightning Round, Cramer offers swift buy, sell, and hold recommendations based on caller inquiries:

1. Roku

   • Caller: Mike from Connecticut
   • Recommendation: Hold
   • Cramer’s Insight: “The stock has some upside because they are doing some pretty terrific things in streaming.” ([43:43])

2. GE Healthcare

   • Caller: Jim from Colorado
   • Recommendation: Don’t Buy
   • Cramer’s Insight: “I think the company has been a very big disappointment and I just have to say I don't need to be in stocks that have been disappointing.” ([44:18])

3. Constellation Brands

   • Caller: Henry from Missouri
   • Recommendation: Don’t Buy
   • Cramer’s Insight: “The beer business is soft. The spirits business is not so good and frankly I expected more from the company.” ([44:44])

Political Developments and Market Implications

Timestamp: [46:06]

Closing the episode, Cramer discusses President Trump’s strategic meeting with American CEOs and Saudi Arabia’s Crown Prince Mohammed B. Bin Salman (MBS). He examines the potential economic and geopolitical ramifications:

“President Trump's pushing some big moves in the Middle East... to get the Saudis to commit $1 trillion to invest in the United States... There's a virtuous circle going on here.” ([46:06])

Cramer reflects on the dual impact of these meetings, praising their potential to strengthen U.S. industrial capabilities while simultaneously courting foreign investments.

Notable Quotes:

• Jim Cramer: “Six weeks later, it's like the whole thing ever happened. Stocks have been bouncing back ever since...” ([03:00])

• Martin Hoffman: “Our strategy is it's really working... the films are amazing. They stimulate subscriber acquisition, they drive engagement.” ([16:42])

• Jim Cramer: “I think the FedEx is going to clean their clock. Frankly, I think that Raj Subramanian is a better operator and you're on the wrong horse. Don't buy.” ([09:03])

• Martin Hoffman: “We look at our linear channels... as an opportunity to program for audiences that are still watching on linear. And then that same content is windowed onto streaming...” ([19:00])

• Jim Cramer: “EQT is the Pittsburgh, Pennsylvania based operation that's the only large-scale integrated natural gas producer in the United States.” ([28:00])

Conclusion:

The May 13, 2025 episode of “Mad Money with Jim Cramer” provides a comprehensive analysis of recent market trends influenced by presidential policies, sector-specific performances, and strategic corporate moves. Cramer’s dynamic interactions with callers, coupled with his in-depth interview with Disney’s Martin Hoffman, offer viewers actionable insights and a deeper understanding of the evolving financial landscape. Additionally, the focused analysis on the natural gas sector underscores emerging investment opportunities amidst changing economic conditions.

For more detailed insights and daily market updates, tune in to “Mad Money with Jim Cramer” on CNBC.