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Jim Cramer
My mission is simple to make 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 Mad Money. Welcome to Cramerica. Other people make friends. I'm just trying to save you a little money. My job is not just to entertain, but to educate. Put things in context. So call me at 1-800-743- CNBC. Tweet me at Jim Cramer. Never forget that the stock market ultimately answers to the bond market. Bonds are in the driver's seat and the bond market really doesn't like inflation or lots of new bond supply. It can suss out rising consumer and producer prices coming from miles away. It knows when governments are spending recklessly, like ours is right now. So periodically the bond market acts up, sending U.S. treasuries down in price and and up in yield. Today it didn't just act up, it threw a temper tantrum, causing rates to go much higher, certainly much higher than they were before the war with Iran. And that's why the average has really turned ugly. Dow sinking 537 points, S&P falling 1.24% and the NASDAQ company 1.54%. Remember those days could be back. What did set off the bond market? Oil, of course, which traded up 4% now to $105. That's way too high for this economy. The prices is getting mighty expensive and the bond market is not happy about that. It abhors rampant energy, inflation and all the downstream problems it causes. It's not particularly reassured by President Trump's state visit to China, which looks like a lot of handshakes, some dinner Pictures and not much else in the way of substance or even commerce. Historically speaking, there's nothing that alarming about the 10 year treasury yielding 4.59% or the 30 year yielding 5.12%. But these rates are at a one year high. And more important, they signal that rate cuts are not on the menu. At least not anytime soon. Kevin Marsh is replacing J. Pal as Fed chief. He wants to cut rates because parts of the economy like the autos, housing, they're sluggish and retail sales have turned suboptimal. Without the colossal data center build out, construction would be disappointing too. Rate cuts could reverse all that. But it's irresponsible to cut rates when inflation is running red hot. The Fed tried that during the last oil crisis in the mid-70s and it was a disaster. They know nothing. Horses hands might be tied now. That wasn't the case before the war, back when oil was in the 50s and 60s. So unless the war comes to a swift end, I can't be too aggressive about buying more stock. We didn't recommend buying this dip for members of the CMC investing club, save for a single stock. Not enough of decline. Plus we had that crazy Cerebras IPO yesterday with almost double from the start. Come on. That showed a level of recklessness that I haven't seen in more than a decade. We can't lose discipline here and expect the market to keep running with this kind of froth. We'll be overrun by a wave of massive deals, including by the way, Space SpaceX. More on that later. That would overheat this market and perhaps create a reprise of the dot com collapse. That's my biggest fear when I see such over enthusiasm. Been there, done that. And you know, I haven't been a doomer, I'm not a doomer, I just haven't. I haven't been a bear at all.
Caller/Listener
Right.
Jim Cramer
But a smart bull knows when to recognize when the facts have changed. And I'm very worried that we're headed for the kind of reckless flood of IPOs that lead to heartbreak. We aren't there yet, but we need to be wary of the possibility and we need to protect our gains. I'm sorry that you that I'm so somber. But you know what? This was the first down day and a lot of people acted like it was the only down day that we're going to get. And I can't play it like that. My job is to protect at some points, not necessarily make a lot of money protect. So let's Go to our game plan for next week. But then I have how I feel here. Monday's Caterpillars. This division, okay, it's integral to data center construction and it's hosting a headquarters visit for investors. Right now, CAT trades at 36 times earnings. It's like a tech stock. Oh, you know I like cat, but this has become overheated. If this division. Well, let's see. This division has everybody excited. Perhaps it merits the premium. We have to find out. Tuesday, Home Depot kicks off the procession of retail earnings. This is retail Wheatie. We own this one for the Travel Trust. And I always tell you about the good ones. Let me tell you about the bad ones. This has been a huge bust, right? The despot's going down and down and down, mostly because of the spike in interest rates. Anything connected to housing gets hurt by higher rates. I don't expect anything good this time. But as long as the quarter isn't terrible, there is a chance for a rally. Yes. Stock of Home Depot has fallen that low verdict which makes cooling equipment for the data center has an investor meeting. I expect to hear good things. But the stock's abused, so it might not matter. After the close, we get numbers from my favorite home builder, Philly based Toll Brothers, which produces high end housing and been a decent time for Toll, but not blowout. Still very tough to own a home builder when rates are rising. This stock isn't down as much as the others. How about that for hey, it's not down as big as the others. There's a calling card. Wednesday we have Target in the morning and I think it's going to repeat its terrific performance from three months ago. New management's trying so far successfully to bring back some of the old magic. Comparisons can be odious. Our mothers told us that, right? And when Lowe's reports, I think the comparisons may feel pretty darn bad for Home Depot. Lowe's is more do it yourself while Home Depot is more professional. Given the dearth of new home sales. You want to go with the DIY renovations guy and that's Lowe's. After the close, we get results from the most important stock in this entire market. And yes indeed, that is Nvidia. If the data center is the most important piece of this economy, and I would say it is, then Nvidia is at the heart of the data center. The beating beauty that's helped propel our markets to incredible highs, including its own stock. Now, I've been telling you to own Nvidia, do not trade it since the days when it was in this low single digits, Sometimes it tries men's souls and women's souls. Like when it was stuck under 200. I said stay with it. It's now 225. Now, my modus operandi going into the quarter is that once again, don't focus on the short term. The growth here should be spectacular. The earnings colossal. Stock's been running though. I'm glad it cooled off today. Dropping 10 bucks. But I've been. But it was up 10 the other day. I am cognizant. We need a perfect quarter for Nvidia to go much higher. But you know what? Then again, we might get it Thursday. Walmart reports. All right, let me tell you something. My main commitment. Walmart's among the greatest companies in our era having been revamped into a place to shop not just for lower incomes, but for everyone. I know so many snobs in this business who've never been to one, they've missed the whole darn move. If they went to it, they'd know the truth. It's hard to beat their prices or their selection. Yes, Walmart's that good. I expect terrific numbers. Hey, their national food section's terrific. So get a life here. We also get numbers from Workday. All right, now this once beloved software as a service company to become a poster boy for the displacement. Yes, AI displacement. I don't expect bad numbers, but the long knives are out for the company now. Workday stock rallied 5% today as part of a rotation into the software stocks led by Microsoft. The group had a bunch of outsized gain. Microsoft up 3%. Salesforce up 3.5%. SurfaceNow jumping 5%. Adobe gaining 4.5%. Now to me it felt more like a giant you short squeeze because they all traded together. I don't know if this move can be maintained. All the other enterprise software rallies have been met with torrential selling. After a couple of days of strong performance, maybe this one will be different. But I don't know how that's going to happen. I mean, look, maybe the heads of Anthropic and OpenAI will come out and say, you know what, we're not planning to eat these companies alive. But that's unlikely. What else? The club retailers have diverged here. Costco's gotten red hot. Not so BJ's Wholesale Club. I think it could have placed some room. It's got some catch up. I still prefer Costco for the long run though. There's the bottom line. Today was a come up in stay. A Reminder that the bond market's wrath can smack down even the best stock market, no matter how robust. We need a tame bond market for stocks to keep advancing, which means we need oil to come down, and that's not happening unless we get an end of the war. Sadly, it's going to be harder for me to get more aggressive, more bullish, because as far as I can tell, there's no end in sight to this war. Let's take a call from Sonny in Illinois. Sonny.
Caller/Listener
Hey, Jimbo. A big chocolate chip pancakes and homage to your booyah from Eggin Barry Orland Park, Illinois.
Jim Cramer
I'll give you an IHOP booyah right back in. Right back at you, bottomless pot. What do you got for me?
Caller/Listener
Hey, man, longtime investment club member. Me and actually, me and all my employees, we all tune into you every single day, man, to learn and make money, okay?
Jim Cramer
That's what the game is. I mean, someone. I stopped, a guy stopped me on the street today. He goes, you're my teacher. He's got one of the red guys in red jackets, you know, clean. You know, keep this downtown clean. You're my teacher. And I said, oh, my God, you're my student. I gave him a big hug. I love it. I want to be known as the teacher. Let's go to work together. Let me do some teaching.
Caller/Listener
Yeah, man. Hey, me, my sons, Zach and Jimmy. We've been following you for about 15 years now, man.
Jim Cramer
Oh, thank you. Thank you, Sonny. Thank you very much. Yeah, we help. What do you got?
Caller/Listener
So I want to talk to you about this company that took a hit after earnings, but I think they're going to do better when the economy turns around and home builders start to buy their products again. Your buddies at Goldman gave them a neutral with a $52 price target. You think it's safe to buy Whirlpool down here?
Jim Cramer
You know, that. That Goldman neutral was down from a buy, and they. I think they missed it. I've got to tell you, I am very concerned about that company. I do not think that they are what run right. That they are doing as poorly as. But then they could say, well, Jim, Best Buy is really bad, too. And Best Buy is really bad, too. But I would tell you that right now, I don't see any relief. And if you did want to play it like I did, then you would, as you're a club member, do Home Depot or do Lowe's. I think Lowe's numbers could be better. But thank you for those great comments. I mean it. Thank you. Put Me right through the weekend. Let's go to Andy in Michigan. Andy.
Caller/Listener
Hey, Jim. Booyah. I bought Axon Enterprises first back in 2015 at $34 on your record.
Jim Cramer
You know Ax, Exxon was on today. I thought they acquitted themselves while which is why I think why the stock was up three bucks. I have been we were very worried about Motorola competition when we met with them when we were up at Harvard Business School. I am still concerned about that and I still think that this market does not like high multiple stocks. And Exxon is a high multiple stock. I want to go to Grant in New Mexico. Grant.
Caller/Listener
Good afternoon, Mr. Kramer. I'm a great club member. I'm a great club member. Thanks to you and your team for all your hard work and helping me make money for my family.
Jim Cramer
Yes, thank you very much. Thank you. How can I help you now?
Caller/Listener
Well, Palantir is down 20% year to date and occupies 15% of my 12 stock portfolio. I've trimmed several times and recovered all my cost basis. So now I'm playing with the house as money. My question is would you recommend that I continue to trim into strength to right size my position or hold for the end.
Jim Cramer
You got plan with houses money. Playing with the house money. Grant, you're going to let this one run. Now Palantir is a perfect example of an incredibly good company whose stock got ahead. I too got ahead. When I got the 200 I got two bowled up. I had liked it all the way down from 50 but I'm not going away from the company. It just happens to be an expensive stock. But it is an amazing company and I think you should hold on to the rest. And I always welcome anyone from Palantir to come on including a first year associate since no one else will come from that place. All right, today was a reminder that no matter how strong someone maybe is going to commit there who's still in college. All right, today was a reminder that no matter how strong the market is, the bond market can always come in and strike it down on my money Tonight power generator Babcock and Wilcox has been on a tear. This year's benefits of the data center build out even though it's a coal coal builder at one point at least those big boilers, they're like Purdue, you know, 160 year old company. I'm sitting down with the CEO to learn more then the quantum is one. Quantum is still one of the hottest topics out there. But how do you get your arms around the space? I'm sitting down with the top brass of the latest public quantum company inflection with a kill get their take. And yesterday's Cerebras IPO confirmed some of my fears about this market's liquidity. I'm explaining how you can protect your portfolio ahead of the next big offering. Stay with.
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Charles Schwab Market Update Host
to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.
Jim Cramer
What made you confident that you could
Joanna Stern
do something that hadn't been done before? I have no fear of failure.
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Jim Cramer
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Joanna Stern
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Joanna Stern
think big to accomplish big things.
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Jim Cramer
Even on an ugly day like this one, some data center related stocks keep making new highs. Take Babcock and Wilcox Enterprises. This is a company founded nearly one 160 years ago. Makes all sorts of equipment for power generation, emissions control. They got their start making boilers for the second industrial revolution, and now they're helping to power the fourth industrial revolution. And that's why the stock's up 245 year to date and over 2500% just over the past 12 months. When I first saw it, I didn't believe it, but it's true. And when you look at the numbers, you can understand why the stock's been rallying so hard. When Babcock and Milkhash reported earlier this week they delivered 44% revenue growth and their bookings shot up 2000% year over year with their backlog rising 483% to $2.7 billion. Even when the company priced a $200 million secondary offering at 1850 per share earlier today, down almost two bucks from yesterday's close, it didn't take long for the stock to erase its losses then finish up 63 cents or 2.97%. Remember, this is down today in the market. So can this thing keep running? Let's dig deeper with Kenneth Young. He's the chairman CEO of Babcock and Wilcox. Mr. Young, welcome to Mad Money.
Kenneth Young
Thank you. Glad to be here.
Jim Cramer
Well, I've got to tell you, it's an amazing story. This is a story of a comeback and a comeback of a storied a legendary company that always had great technology and great engineering. I don't want people to get things wrong. You still do most a lot of coal work and the backlog. We can talk about data share but first I just want to talk about coal in part because we're not an anti coal country anymore. So I don't want to overlook it.
Kenneth Young
No, that's true. Babcock and Wilcox, as you mentioned, 160th year and our tradition goes back supporting coal plants and power plants. In fact the first one in New York over 160 years ago. So happy to celebrate that anniversary this year. But over 50% of our revenue still comes from supporting coal plants not only in the United States but around the world. And actually coal usage in Southeast Asia and other parts of the world is on the rise. And so we continue to support those plants, parts and services to maintain efficiency. Environmental issues or concerns on those particular fleets as well as ensure they're running full time. Go ahead.
Jim Cramer
And we're like we're recommissioning and we're not. We, we need every part. I, I look, I like everybody else obviously I don't want the whole like the Chinese have all these coal plants are putting up every month and but I also recognize that a clean coal plant and you're aware, you guys know what you're doing can be as clean as a dirty natural gas plant from
Kenneth Young
say no, that's absolutely correct. Ultra supercritical coal plant can be in the same level of efficiency as a combined cycle or simple cycle natural gas plant in the long run. So there's value in keeping these coal fleets going in order to meet the consumer and industrial demand that's happening here in the US and around the world.
Jim Cramer
Okay, now I know though we have to understand is like for the secondary today, people are just very excited about your bookings and they're looking the bookings and looking at hyperscalers. Looking at an Applied Digital as a NEO cloud company that has a huge project with you, the Base Electron project. Maybe you can explain to people what the Base Electron project is. They might understand both the current we just described and the future of black.
Kenneth Young
Sure. So Applied Digital set up Base Electron as an IPP independent power provider in order to provide electricity to meet the needs of the data centers. So in our particular case, our project with Base Electron, which is backstopped by Applied Digital is going to provide just over 1.2 gigawatts of power, which is huge. Which is huge. Using just traditional as your point earlier, using four 300 megawatt steam turbos and steam boilers to produce this power and electricity. So it's using traditional technology that's been around since 1950 in order to meet the demand of these data centers today in a very efficient fashion. But more importantly, we could provide that power in a much faster time period. Combustion cycles. Combustion turbines are on backorder for five to 10 years. We can produce these power plants in under 36 months.
Jim Cramer
Really? Because you know, I know GE Renova, they're backed up too far as far as I'm concerned in terms of trying to figure out. But there's no doubt about it, you can't, you gotta get in their queue. There is not a long queue for you.
Kenneth Young
So the queue for us is we look at our manufacturing both in steam turbines as well as in the boiler manufacturing around the world. And we leverage manufacturing facilities throughout the world, in the United States, obviously, a little bit in Mexico, Europe, India, over in Korea as well. But when you look at the companies themselves, the combustion turbine companies are at capacity without a doubt, the steam turbine companies have capacity to build. They're much smaller scale than the combustion turbines. So the capacity exists for that technology. Same on the boiler manufacturing side. We can get boilers through in a much faster period of time.
Jim Cramer
Okay, that's very important because I know that the hyperscalers are really hungry to do this. And you did say that you are going to just quote an active discussions with additional hyperscaler and utility customers, including potential projects in the 300 megawatt, 500 megawatt and even 1 to 2 gigawatt range. So you've got a big potential order book here with some of the big companies that we talk about all the time.
Kenneth Young
We do, we're excited about that, obviously support and as we work through the development of these opportunities. And some of this is also grounded in the fact that we can take our boilers and combine those with combustion turbines in the future. So for example, we could put in a steam turbine today, with the steam boiler today and produce, let's just say 100 megawatts out of that particular unit. We can combine that in the future when the combustion turbine becomes available at 100 megawatt, combine that with that steam boiler and turbine, and now produce 200 megawatt from that particular site without increasing the land mass. And that's a real advantage for these hyperscalers and data centers and utilities in order to have a time to market and to produce power.
Jim Cramer
Well, when did people, when did the big hyperscalers just rediscover you? I can't say discover you because of rap results because, I mean, in many ways, candidly, other than boom energy, I don't know anyone else has capacity.
Kenneth Young
Yeah, it's exciting for us obviously, being around so long and our brand equity obviously worldwide is very solid. Everybody knows who Brabcock and Wilcox is. But it is exciting for us because the hyperscalers and other utilities obviously are looking at alternative solutions to provide power and the one of the fastest to market to be able to do that. And something that has proven technology, which is the other important piece when you talk about technology, has been around since 1950. It's proven so it works. We know it works. There's low risk on this technology. We can provide this technology faster and it's becoming a much better alternative for
Jim Cramer
the utilities and hyperspace, there's a chance that you could be overwhelmed with orders. I mean, you are you trying to figure out, you trying to game accordingly, correctly, and some behind the meter. These are huge projects.
Kenneth Young
No, it's a good point. So as we. We begin working on base electron or the applied project and working with our manufacturers, one of the things that we started to do was secure capacity for the next project and the next project. Right. To make sure that we had that capacity available to us. The other area that we're really focused on, which is a big issue for the US Is the construction labor. So the welders, the boilermakers, the pipe fitters and you know, we have a very good relationship with the boilermakers and working with them to try figure out how we could train more and increase the number of welders and availability not Necessarily in the next two years, but three to five years after that going.
Jim Cramer
I find that the gating factor with power is a gating factor and the gating factor with power is often the workforce because we don't produce these. We didn't look when your company started. These were the jobs. But we all got caught up in a kind of liberal education. We like liberal arts. But the jobs are what you have, correct?
Kenneth Young
No, they are. And we're obviously the whole construction industry in the US especially around data centers and power producers is, is going up, right? Labor force is making more than they have in the past, but we need more of them by wide variety. So we look at five to 10 years. We have to increase that workforce. So we have to start the recruiting and training today in order to be situated in a solid place to have access to those construction.
Jim Cramer
Well, I, I candidly have to tell you sir, that when I started working on it, because we had get lots of questions about it, I was, I was skeptical that you guys could be the guy. And then I saw that you had a big hyperscale and other hyperscales looking. But when I listened to you, I realized, geez, you may be like the last hope on this. We, unless we go to space, we figure out quantum. I don't see any time we're going to do that. I like this technology because it powered the second industrial revolution. It did a pretty darn good job. That's Kenneth Young, chairman and CEO of Babcock and Wilcox. Remember the big backlog? Big backlog. This is very exciting for you if you're data center guy, but there's a lot of of coal and recommissioned coal. And as far as I'm concerned, they have the construction ability to make what you may not even realize exist. Bad money is back there for the
Charles Schwab Market Update Host
money coming up, AI is coming into every part of our life. So what will that look like? Cramer's investigation with author Joanna Stern. Next.
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With customizable tools and charts you can
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Fidelity Brokerage Services LLC Member NYSE SIPC what made you confident that you could
Joanna Stern
do something that hadn't been done before? I have no fear of failure.
Podcast Disclaimer Narrator
Trailblazing women Changing the game One of
Jim Cramer
my favorite pieces of advice Think about what your boss's boss needs.
Joanna Stern
Leadership can look in many, many different, different forms. It really does come down to just trusting yourself.
Podcast Disclaimer Narrator
Life is short and you just gotta
Jim Cramer
think big to accomplish big things.
Podcast Disclaimer Narrator
Julia Boorstin Hosts CNBC Changemakers and Power Players New episodes every Tuesday. Wherever you get your podcasts,
Jim Cramer
You know us, we spend a lot of time talking about how you try to profit from the AI revolution, but we don't spend nearly enough time focused on how AI and robotics will actually impact your day to day lives. Even though we know a change is coming, we don't know exactly what it's going to look like. Thankfully, Joanna Stern, former personal technology columnist at the Wall Street Journal, has done that thinking for us with her new book I Am Not a Robot. My Year Using AI to Do Almost Everything. I thought the book was really illuminating and by the way, laugh out loud hysterical. So just like, you know, if you read her stuff. So let's learn more with Joanna Stern, who now runs her own tech media company, New Things, while serving as chief technology analyst and a contributing correspondent for NBC News. M welcome to Man Money.
Joanna Stern
Thank you for having me here.
Jim Cramer
Well, I am honored to have you. I did something that I'd never done, which I clicked on your byline and sent you and said, man, I don't know who you are, but you are incredible because your stuff is really funny. And I'm going to say this is very serious book that is off. That is also hilarious. How are you able to combine the two for this topic? Because it's remarkable to see that within a writer.
Joanna Stern
Oh well, thank you. It happened a little bit naturally. I didn't plan it that way, but I set out to spend my year using AI in as many parts of my life as possible and I made a list is going to be all the things the tech CEOs have been talking about, right? Health care, education, transportation, robotics. And some of those, like health care naturally lend themselves to a little bit more serious. Same with relationships. I said I'm going to put myself in an AI relationship because we keep reading about these relationships people are having, kids are having. I'm going to do that and it's going to be funny, but it's also going to be serious. If I'm having a relationship and talking to a Chatbot or a computer all day long.
Jim Cramer
Well, I'm glad you said that because a lot of what I mean I was mentioning the team, I said you talk about love and the, and the bots. We talk about mammogram and the bots. You talk about about raising kids in a bot and what at all times you do have takeaways. There are takeaways in every chapter, even the little one pages that you do. Your bias is in favor, but it's clear that you also think we are so not there yet.
Joanna Stern
We are not there yet. And when we are there, I'm terrified of what happens when we are there. So that was, I think, really a theme that came through all of the chapters. Right. That even what we have now is good.
Jim Cramer
Right?
Joanna Stern
It's gotten far better as you guys cover a lot on the show and on this network. It's gotten far better in the last few years as these companies have put more compute and more data into these models. They're hallucinating less, but they still make a lot of mistakes and we're going to see that progress in the next five, 10, 15 years. And so I was trying to look into the future of where are we now and where are we going with all of this?
Jim Cramer
Well, you did it. And I know that you talk addressed the doomers who are very powerful and very prevalent, but you also interview Sam Altman and I think he's too out there for me. I felt that there that it's very clear. You make the point, look, they are going to be smart. Our kids will be bested by these and we don't really know what that world will be. But you said don't let it control you. That's really important.
Joanna Stern
Yes, absolutely. Do not let it control you. And I use this term in here. AEI already enough intelligence that even what we have today feels like it's enough that these tools, if applied in the right ways, can do so many things for people. And do we always need more? That's the profit incentive of these tech companies right now. We need more, we need better, we need more. But are we really evaluating what we have right now?
Jim Cramer
But you do say that tech is the only is only impressive if it's better than what it replacing. And a lot of what they're doing is that does fit that mantra.
Joanna Stern
Well, they're replacing humans, right? They're replacing.
Jim Cramer
Well, but yes, I mean you say, look, doctors, divers drivers, massage therapists, financial advisors, house cleaners, coders, journalists, they're, they're all going to be under attack by this.
Joanna Stern
That's right. Yeah. Massage therapists. I mean, the idea that I went and I tested this massage robot and
Jim Cramer
compared that to the butt massage.
Joanna Stern
The butt massage, yeah. There's a. It spends a lot of time massaging your butt. And honestly, a human wouldn't do that.
Caller/Listener
That.
Jim Cramer
No, no. And. And also, so what happens when you're in a Waymo and someone gets out to try to take a picture like this from the car that's next to you? Waymo doesn't know what to do. Right.
Joanna Stern
Waymo doesn't know what to do. That's another story where. Where we're seeing. We. We see these companies pushing human replacement, and sometimes there's significant benefit. We see it in cars. Cars, robotic cars do not have the same distractions as human drivers. We know that. We live in New Jersey. Right. We know all the distracted drivers in New Jersey, robot cars don't have that, but they have a whole other set of issues. Same with the massage therapist robot. Right. Maybe it does my. It massages my butt for a really long time. And that's great because I have lower back pain, but it doesn't do other things that humans do. So this is what that world looks like.
Jim Cramer
But in the end, you talk about the notion of thinking, and I feel from when you're Tommy, you talk about union college, back to school, that it can replace thinking, and that's just plain
Joanna Stern
out bad playing out bad. I mean, look at you. You took this book, you read it. This is the most impressive thing I've ever seen, by the way. I mean, you. You have torn up pages and you've highlighted, and I can tell you did real thinking about this. I don't think you went to a chatbot and said, summarize this book for me before my segment. I can tell, Jim, you did the real work here.
Jim Cramer
Joanna. It's an incredibly impressive book, and it's a serious work, and you have to do that because it is provocative. And I am not sure about this new world either, but what if your
Joanna Stern
kids don't know how to do that?
Jim Cramer
They'll be overwhelmed. They'll lose their jobs. And that worries me tremendously. And that's. That's. It is an existential threat. And it's also existentially positive. And I don't usually think that they could both be in one vein, but they are.
Joanna Stern
Yeah. Yeah. So, I mean.
Jim Cramer
All right, so now you got your own. I know. The rapping meal. You got your own thing you're doing. You're not at the journal anymore. I mean, like, we all love your journal stuff. And this is filled with stuff that I think is candidly more pointed.
Matt Kinsella
It.
Jim Cramer
Oh, and not, not as prurian, so to speak. But the thing I want to leave with is that you do point out that there are people in relationships with their computer and there is a level, whether it be therapist or whether it be a love interest, where people have to be careful. Leave it on this note. Right?
Joanna Stern
Absolutely. And, and one of the the rules at the end of the book. I will spoil one of the rules at the end of the book. Please do not fall in love with your chatbot. And if you feel any inkling toward it, it throw that computer or phone in the nearest body of water.
Jim Cramer
All right. Because I don't want anyone to do the ultimate because they got too involved with their PC. I want to thank Joanna Stern. She's the author of I Am Not Robot. I'm Not Robot. And I got to tell you, yes, I did dog. Well, I didn't dog here and I chew. I gaboed it.
Joanna Stern
Yeah, gaboed.
Jim Cramer
Everybody's back after the break.
Charles Schwab Market Update Host
Coming up, a new name has arrived in the quantum computing scene. So should you be considering adding it to your portfolio? Kramer's questioning the top brass next.
Jim Cramer
For most of last year, the quantum computing stock, they seemed invincible. Then last fall, they went out of style, along with the other speculative plays that had thrived during the year of magical investing, as I call it. It this technology is still in its infancy, but it could be a game changer down the road. So I think it's worth getting to know the major players in the space, including Inflection. That's with the Q infq, which came public via SPAC merger that closed back in February. Now these guys have partnerships with a host of government agencies from NASA and Pentagon, along with major companies like L3Harris and Saffron. Last night, Inflection reported its first quarter as a publicly traded company. It racking up some. I felt some solid revenue growth. Growth even as the business is still a long, long way from turning a profit. As I'm sure they will tell you, the stock got hammered. Response down 11% today. But I think that's just more about the market's appetite for risk than anything else on a given day. So let's check in with Matt Kinsell. He's the CEO of Complexion. You get a better read on the situation. Michigan seller. Welcome to Mad Money.
Matt Kinsella
Jim, thank you so, so much for having me. I'm a big fan for a long Time.
Jim Cramer
Thank you, Matt, to be here. Well, I have to tell you, I am very impressed with all the opportunities you have and the things you're doing. But I think our audience would like to know, well, hold it. Quantum comp. All the same. What's the difference? And you guys have a very differential model. So I'm going to turn it over to you to explain why.
Matt Kinsella
Absolutely. So inflection is a neutral atom Quantum technologies company that we build a range of quantum products that span from timekeeping devices to sensors to quantum computers that are all based on this core quantum technology right here. And what we do is we trap millions of atoms inside these quantum cells and we take advantage of their quantum mechanical properties by interrogating them with lasers and turning those into clocks or sensors or computers. So it's a highly flexible quantum modality that allows us to have this very differentiated commercialization approach to basically follow in Nvidia's footsteps and monetize here and now in the timing market, like they did in the gaming market, while building towards the crown jewel of quantum computing like they did with large language models.
Jim Cramer
All right, now, before you think the Matt just name dropped Nvidia. When you go to their deck and they've got a very good deck. They are a part not along with the L3. Harris just mentioned several Nvid. Nvidia's done work with you leading partner course. So they obviously we can at least since I know he gets very involved. Genesis gets very involved. He's taking a hard look at you. Before he wanted to get together with you.
Matt Kinsella
That's right. And I think Nvidia likes Quantum for a number of reasons, but ultimately they view it as a way to sell more GPUs over time.
Jim Cramer
When I first approached him, I said, isn't this going to be the death of GPUs? He said the opposite. You need GPUs.
Matt Kinsella
They'll work very closely together over time to solve a whole new swath of problems that we just can't solve by ourselves.
Jim Cramer
But the thing that you can do is you can solve things in hours. That would take what, 10 years? In some cases.
Matt Kinsella
In some case, a trillion years. Yes.
Jim Cramer
Okay, so let me give you an example. When I saw it, I said, oh, my God, I want these guys to be on our team. Spotlight national security. Hypersonic threat detection. Exponential data complexity. Cryptographic Existential threat. You're talking about things that could happen to our nation that maybe only quantum can stop. And your company's got it really got a head. You got the leg up on this thing.
Matt Kinsella
That's right, yes. So the, the, the use cases for national security that Quantum can address are very broad. And largely speaking, we can bucket them into two, we can bucket them into quantum sensing and then quantum computing over time. In the quantum sensing realm, there are, you mentioned hypersonic missiles coming at the United States. So there's the Golden Dome program, for instance.
Jim Cramer
Right.
Matt Kinsella
That is effectively a massive sensing infrastructure that needs to be tightly synchronized because the only way to intercept a hypersonic missile, it requires picosecond level synchronization. And so why does quantum matter? It matters because we can do things at orders of magnitude higher levels of precision than you can with classical technologies. And so Quantum will play a big role in these types of systems like Golden Dome to allow us to detect and then synchronize and eliminate threats that might be coming at us. And that applies not just for protecting the homeland, but also out in the field of battle for our soldiers as well.
Jim Cramer
But we have to have that. You've got to, I hope that our government fully supports what you're talking about.
Matt Kinsella
They are fully supportive and they've been a great partner to us as well.
Jim Cramer
Right. So now when I mentioned quantum to my kids who were fascinated by it, they said, dad, we can't own crypto because of quantum. And I said, oh my God, I know 2029 Quantum's going to be able to unlock crypto. When you hear these things, is that just the equivalent of doomer talk for you?
Matt Kinsella
No, it is not. I do believe that. Well, first of all, I believe that crypto will likely find a way to fork and then perhaps make themselves quantum resistant. Perhaps, perhaps. But the, the, the ways in which crypto encrypts itself are based upon some of the fundamental inabilities of classical computers to perform certain types of calculations. And those are the types of calculations that quantum computers will be able to perform. It's one of those that I mentioned that, you know, it could take a trillion years for a classical computer to compute, but there's something called Shor's algorithm, which is basically something that allows you to break modern day encryption and that is getting closer and closer and closer. And it is something a quantum computer will be able to do. And we actually showcased the first version of Shor's algorithm on logical qubits on a quantum computer last year.
Jim Cramer
All right, well, not powerful enough to break. Duly noted. And I'm glad, you know, maybe my kids know this stuff too. Now you have 500 million, you got plenty of money in the bank, you Got a lot of different irons in the fire. But you also want, because you're a business person, you want to generate some revenue. So you've got all those things going, right? 40, 40 mil, maybe a little more than 40 mil.
Matt Kinsella
So at least 40 million.
Jim Cramer
Your plan is eventually to make money, but right now it's a revenue growth story.
Matt Kinsella
It is, yes. It is a revenue scale and a revenue growth story. But ultimately our job is to generate huge gross profit and huge free cash flow over time. And I believe that Quantum is the opportunity to build a generational company and that's what we're building towards. And what is unique to our model is the ability to monetize near term on these quantum quantum sensing applications, all while building towards that crown jewel of quantum computing.
Jim Cramer
Okay, well, here's what I want you to do. I want you to come back, I want you to keep us up. I've had the plethora of Quantum people on, but you, I think really explain it and I think it's an explained story because when it goes down, I want people to buy more, not cut and run. That's what happens. Unless they have explanations and intelligence and the education that you can give.
Matt Kinsella
Well, thanks, Jim. Appreciate that.
Jim Cramer
Thank you. You all right? That's Matt Kinsella, CEO of Inflection. I got to tell you guys, I'm pretty fascinated by this stuff. You know, I'm going to put them all on. But I like this because you speak English. Everybody's back into the ring.
Charles Schwab Market Update Host
Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast fire lightning round next.
Jim Cramer
Don't forget, now is the perfect time to join the CBC investing club, complete with a free signed book by yours truly. Scan the QR code or go to cnbc.com kramerbook and now is the time. And it's time for the lightning round. Kramer's money. That's my friend. Calls the same as bye bye bye sell. Disclaimer. Of course not. Questions? We'll play. We play the show and then the lightning round is over.
Joanna Stern
Over.
Jim Cramer
Are you ready? Steve Deck on the right own case with my. Let's start with Tim in Virginia. Tim.
Caller/Listener
Hey, Jim. Pure Cycle has unique plastic recycling technology.
Jim Cramer
Okay. The problem with Pure Cycles, it loses a fortune and has almost no revenue. I think we have to say no to that one. Let's go to Cyril in California. Cyril, we are.
Discover Credit Card Advertiser
Jim.
Jim Cramer
20 years is incredible. I want whatever you're eating. Thank you. Thank you.
Caller/Listener
Speaking of energy, this stock seems to be evolving beyond the Original gravity storage story into infrastructure and broader power solutions. Is it finally becoming a real growth story? The stock is nrgv.
Jim Cramer
Well, that's a pure spec that's losing a fortune again. I got to be really careful. Even though it's a low dollar amount, remember it is still a pure respect and it can hurt you. Let's go to Matthew in Georgia. Matthew.
Caller/Listener
Jim, good evening, man.
Jim Cramer
Despite a dip today, it's.
Caller/Listener
It's had a wild run up the past month. This semiconductor company technology can solve a
Jim Cramer
lot of power consumption and cooling issues of the data centers. What do you think about Everspin? It's just up on a spike. I don't know, it's like a short squeeze or whatever. I mean at least it does make money, but it's 90 times earnings. You got to be careful again being in careful mode here because the market is switching in the way it's valuing stocks. Let's go to Robin in California. Robin. Hey Jim, glad to talk to you. I'd like to know what you think about gmag. Okay. This group in particular the medical device group is hated in this market and I do feel that there is not a lot of money to be made in this one. If there's not a lot, lot of being made in the release in some really good ones like, like Medtronic or ISRG or Boston Scientific. Let's go to Eric in Michigan. Eric.
Caller/Listener
Jim, I love the show.
Jim Cramer
Thank you. Calling on Rocket Company. Okay. Rocket is a play on the idea that Kevin Marsh is going to get in and cut rates and I don't think he can because of the price of oil and how it is making it so that there is inflation throughout the system. So no to Rocket company And that legend is the conclusion of the Lightning Round.
Charles Schwab Market Update Host
The Lightning Round is sponsored by Charles Schwab. Coming up, with SpaceX hurtling towards a likely record IPO, Cramer is issuing a key warning on the potential market impacts. Don't miss it. Next.
Jim Cramer
Right now I'm torn. Don't like some things really like others. That's because when the facts change, I change my mind. Especially when they change the direction of something that I was already worried about. I'm talking about these big IPOs. Last night I talked about how the IPO launch of Cerebras demonstrated a level of enthusiasm that concerned me. This AI chip deal priced at 185 opened at 350 and then went to 386 and changed at its highs yesterday. And just of course that had plummeted today to under 200. Everything about that spike yesterday was wrong. It's all about irresponsible market orders and a level of abulence. It's just plain embarrassing to those who got caught up in it. This wouldn't matter if investors looked at how much they had already lost on this one deal and said we aren't going to do that again. But I've seen this movie before. Nobody learns a lesson after the first IPO implosion or even the second one. They have to lose a lot more money to get a lot, let's say to see through the smoke and mirrors of instant wealth. Which brings me to SpaceX next week. As I mentioned at the top of the show we're supposed to see the perspectives for the SpaceX deal. Elon Musk rocket company plus Starlink X which is the old Twitter and Xai which includes Grok right now, an inferior tapot that I still have hopes for because Musk is involved. The buzz about the deal is that the broker is said to be about 20 firms are being instructed to get retail investors involved. They don't want flippers, firms that get stock and just flip it on the deal when the stock opens. That's great. But there are some problems with this strategy too. First, the SpaceX IPO is said to value the company at between $1.75 and $2 trillion. Right from the get go they get that price. The stock will be selling at 80 times sales, not earnings, doesn't make money, has some profitable operations, but overall it loses money. That price to sales ratio is well above most of the big name tech companies that you're now familiar with. So far I get the story. It's Musk, it's rockets, it's about data centers in the Sky, 100 gigawatt space data center powered by solar, biggest by far. It's about Starlink, which is rapid satellite Internet that can handle voice and video with ease and it's very inex expensive. Oh, so exciting. Oh, you can't wait to get your hands on it, right? But if the underwriters want lots of retail shareholders, then they need to be careful about how much stock they issue. Too little and you end up with the cerebras. If SpaceX were to issue just a sliver of stock, which is what I'm worried about, this company could end up with a 5 trillion dollar valuation the day it comes public. Yes, there's that much demand. And if it's immediately included in the NASDAQ 100 and the S&P 500 like we're here hearing that, I think it could actually go to $6 trillion. I mean come on, do we want that? I know I don't. You don't want to have a money losing company that has just $18.5 billion in revenue last year surpass Nvidia as the largest business in the world by market cap. Nvidia had 215 billion in revenues and nearly 120 billion in net income. They are not in the same league. Now the brokers can blunt this by making sure that a huge amount of stock hits the market. That's okay. That can make for a more realistic move. Move. But I keep hearing that's not what they're planning to do. They want to unleash just a sliver of stock instead of a solid chunk that can be repelled to the moon by market orders. Sliver deals almost always produce what I'm most afraid of. SpaceX would create a bubble of its own and it would set a terrible precedent for OpenAI and Anthropic. Two more that are said to be in the IPOQ. With three of these would suck up a huge amount of available cash and cause tremendous selling in the rest of the market. Simply because the market for their IPOs needs to come from somewhere. Their money has to come somewhere. Stocks will take a hit when these deals price. Believe me, it's going to happen. Remember what I always say. The stock market, like any other market, is all about supply, demand. Too much supply and the market breaks down. Right now we're pretty much at equilibrium. SpaceX would start the process of overwhelming the market with excess supply. Especially when the typical lockup on Insider Celia expires six months down the road. You can't stop this runaway train of ip. No one can but understand it is coming, be ready for it and hope the underwriters act responsibly rather than engineering the pops of a lifetime. They did that latter during the dot com era and that ended horribly. They must not make history repeat itself. I like to say there's always a bull market summer at Palms just for you right here at Man Money. I'm Drew Kramer. See you Monday.
Podcast Disclaimer Narrator
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 Hotels.com is the
Jim Cramer
place you go to book hundreds of thousands of hotels. It's exactly what it sounds like. Just like Save your way from hotels.com is exactly what it sounds like.
Matt Kinsella
Choose to save now with an instant discount or bank that discount as rewards for later your trip.
Jim Cramer
Your call Save your way exclusively at hotels. Com. It's all in the name.
In this episode, Jim Cramer delivers a somber yet urgent look at the current market turmoil driven by surging bond yields and rampant energy inflation, reflecting on the risks posed by reckless IPO enthusiasm and the specter of “dot-com style” exuberance. Cramer walks listeners through the week’s dramatic market moves, outlines actionable strategies for major upcoming earnings, hosts in-depth interviews with transformative CEOs in power generation and quantum computing, and engages with callers in his trademark Lightning Round. Notably, the episode delves deeply into the real-world impact of AI and robotics through a discussion with tech journalist Joanna Stern and cautions on how the potential SpaceX IPO could reshape market dynamics.
[00:55–04:18]
"The bond market really doesn’t like inflation or lots of new bond supply. ... Today it didn’t just act up, it threw a temper tantrum."
— Jim Cramer [01:10]
[04:19–09:13]
"I've been telling you to own Nvidia, do not trade it since the days when it was in this low single digits... The growth here should be spectacular, the earnings colossal."
— Jim Cramer [07:32]
"Today was a comeuppance day. A reminder that the bond market's wrath can smack down even the best stock market, no matter how robust."
— Jim Cramer [08:49]
[09:13–13:37]
"If you did want to play it ... do Home Depot or do Lowe's. I think Lowe's numbers could be better."
— Jim Cramer [10:23]
"Palantir is a perfect example of an incredibly good company whose stock got ahead ... it just happens to be an expensive stock."
— Jim Cramer [12:11]
[15:30–24:10]
"Even on an ugly day like this one, some data center related stocks keep making new highs. ... Babcock and Wilcox... now they're helping to power the fourth industrial revolution."
— Jim Cramer [15:30]
"Ultra supercritical coal plant can be in the same level of efficiency as a combined cycle or simple cycle natural gas plant in the long run."
— Kenneth Young [17:56]
[25:41–32:26]
"I went and I tested this massage robot... It spends a lot of time massaging your butt. And honestly, a human wouldn’t do that."
— Joanna Stern [29:31]
"Please do not fall in love with your chatbot. And if you feel any inkling toward it, throw that computer or phone in the nearest body of water."
— Joanna Stern [31:56]
"Do not let it control you. ... These tools, if applied in the right ways, can do so many things for people. And do we always need more?"
— Joanna Stern [28:40]
[32:52–39:13]
"Quantum will play a big role in these types of systems ... to allow us to detect and then synchronize and eliminate threats that might be coming at us."
— Matt Kinsella [36:21]
"Crypto will likely find a way to fork and then perhaps make themselves quantum resistant. ... But quantum computers will be able to break modern-day encryption."
— Matt Kinsella [37:17]
[39:43–42:21]
[42:45–46:55]
"I’ve seen this movie before. Nobody learns a lesson after the first IPO implosion… SpaceX would create a bubble of its own and set a terrible precedent."
— Jim Cramer [43:55]
Key Takeaways:
Cramer’s Bottom Line:
“Be ready” for turbulent markets; don’t chase speculative pops and keep a wary eye on IPO supply shocks.
For actionable investing strategies, Cramer reminds listeners: “There’s always a bull market somewhere, and I promise to help you find it.”