Mad Money w/ Jim Cramer – Episode Summary (May 23, 2025)

Host: Jim Cramer
Release Date: May 23, 2025
Podcast Description: “Mad Money” offers an insider's perspective on Wall Street investing, featuring Jim Cramer's dynamic insights and the popular Lightning Round where he shares buy, sell, and hold recommendations based on caller inquiries.

1. Market Overview

Jim Cramer opens the episode with a critical analysis of the current market turbulence, attributing significant volatility to President Trump's aggressive trade policies.

Key Points:

• Tariffs Impact: Cramer discusses the President's imposition of a 50% tariff on European imports effective June 1 and a 25% tariff on Apple’s iPhones manufactured in India. He asserts that such “unfriendly government intervention” directly contributed to a decline in major indices: "the Dow declined 256 points. The S&P lost 0.67% and the NASDAQ dropped 1%” (03:00).

• Market Sentiment: He reflects on investors' initial shock following the market's sharp decline from February to April, expressing uncertainty about future movements, especially with early futures indicating continued downward trends: “The early morning futures have been down for days on end” (05:30).

• Upcoming Earnings: Cramer highlights the significance of the upcoming earnings reports from major companies like Costco, Dell, and Salesforce, noting their potential to sway market sentiments significantly (07:15).

2. Company-Specific Insights

AutoZone

• Performance & Buybacks: AutoZone is highlighted as a top performer with aggressive stock buybacks, having cut more than half of its stock in the past decade. Cramer encourages investors to "just go buy it because management will be right there alongside you buying it after a few days" (07:45).

Octa (Cybersecurity Specialist)

• Analyst Endorsement: Octa is praised for its cybersecurity solutions, with analysts highly recommending the stock ahead of the upcoming quarter. Cramer anticipates "tremendous" quarterly numbers based on current performance and market positioning (08:30).

Retail Sector

• Dick’s Sporting Goods & Macy’s: Both retailers are underperforming, particularly Dick's Sporting Goods following its acquisition of Foot Locker. Cramer expresses skepticism about Dick’s ability to mitigate the negative market perception: “I don't know what they can say to change that” (09:10).

• Costco & TJX: Despite strong quarterly results, Costco’s stock consistently declines post-earnings due to investor psychology. TJX is identified as a potentially undervalued stock with anticipated rally after recent sell-offs (10:20).

• Ralph Lauren: Extensive analysis is provided on Ralph Lauren’s robust international performance, particularly in Europe and China, despite cautious forecasts in North America due to economic uncertainties and tariffs. Cramer commends the company's adaptability and strong branding: “Ralph Lauren is not only holding its ground against the backdrop of an uncertain economy, it's positioning itself for long term success” (19:29).

Tech Giants: Nvidia & Salesforce

• Nvidia: Transitioning from purely hardware to integrating significant software components, Nvidia is expected to show continued upside due to this strategic pivot. Cramer notes Nvidia’s resilience: “They have been morphing from a hardware company into a hardware company with a huge Software component” (11:00).

• Salesforce: With potential acquisitions on the horizon, including rumors of re-engaging with Informatica, Salesforce’s stock is under pressure. Cramer remains cautious about the implications of these talks: “The market could react the same way that the market reacted to Dick’s Footlocker bad” (12:00).

3. Listener Engagement and Portfolio Advice

Jim engages with several callers, offering tailored advice on managing stock positions and navigating market volatility.

Notable Discussions:

• Boeing: Cramer is optimistic about Boeing's future, citing improved management and potential growth: “I think Boeing goes higher” (09:32).

• Broadcom: Highlighted as a strong position within the portfolio, Cramer acknowledges its robust performance in the data center sector: “Broadcom is good, my friend. It's one of my biggest positions from a terrible trust” (09:41).

• Speculative Stocks: Cramer advises limiting speculative investments to a small portion of the portfolio to manage risk effectively: “I think you're fine as long as the dollar amounts are low” (17:34).

• Salesforce vs. ServiceNow: Cramer supports holding both stocks for their long-term potential despite current uncertainties, emphasizing their strengths and leadership: “These are two really fine companies and over the long term they both been sensational” (27:08).

4. Lightning Round: Rapid-Fire Stock Recommendations

In the high-energy Lightning Round, Jim provides quick buy, sell, or hold recommendations on various stocks based on rapid inquiries from callers.

Highlights:

• Eli Lilly: Cramer endorses Eli Lilly, noting its consistent performance and strategic positioning against competitors like Novo Nordisk: “Eli Lilly. We bought some just the other day for the Chapel Trust” (35:40).

• Semiconductor Stocks: Advises taking profits on recently surged semiconductor stocks rather than buying more post-rally, cautioning against parabolic moves: “I say take your money out that you put in and then you can let the rest ride” (36:41).

• Defi Development & Crypto: Expresses a bullish stance on Bitcoin while remaining cautious about speculative crypto investments: “I am an owner of bitcoin. I am not going to deviate” (40:09).

• Rio Tinto: Recommends Rio Tinto for its strong yield and global presence, highlighting its stability and profitability: “I like Rio Tinto. I like Rio Tinto. I like the yield. I like the company” (39:43).

5. Special Feature: Interview with Jerome Grant, CEO of Universal Technical Institute

A significant portion of the episode is dedicated to an in-depth interview with Jerome Grant, CEO of Universal Technical Institute (UTI), a leading provider of education for skilled trades.

Key Insights:

• Educational Impact: UTI addresses the labor shortage by providing industry-aligned training in skilled trades, transportation, and healthcare, ensuring high employment rates for graduates: “We graduate nearly 70% of our students year in, year out” (43:18).

• Response to AI: Grant emphasizes that while AI is transforming industries, it’s augmenting rather than replacing skilled trades. UTI integrates AI tools into their curriculum to prepare students for modern job requirements: “Artificial intelligence isn't going to take blood from you, isn't going to change your oil” (45:12).

• Enrollment Growth: The institute has seen a 20% increase in enrollments, driven by the growing demand for skilled labor and the need for retraining among adults: “Our enrollments were up over 20% in the last quarter” (46:40).

• Financing Education: UTI offers financial aid options similar to community colleges, with Pell grants and federal student loans making education accessible: “Most of our students are fully Pell eligible” (44:47).

Conclusion of Interview: Cramer lauds UTI’s role in the education sector, highlighting its essential contribution to the workforce and economic stability: “This is a terrific company. I'm glad that our viewer of course, brought it to our attention” (46:08).

6. Closing Remarks

Jim Cramer wraps up the episode by reiterating the importance of informed investing amidst market uncertainties. He emphasizes the value of diversification, strategic stock selections, and staying informed through continuous education and reliable sources.

Final Thoughts:

• Command vs. Free Market: Cramer warns about the risks of increased government intervention in business decisions, likening it to a “command economy” and stressing the premium on companies unaffected by presidential influences (16:00).

• Investment Strategy: He encourages investors to remain adaptable, take profits wisely, and capitalize on undervalued opportunities while avoiding overexposure to speculative ventures (28:07).

Notable Quotes:

• “Unfriendly government intervention is why the Dow declined 256 points.” (03:00)
• “Ralph Lauren is not only holding its ground against the backdrop of an uncertain economy, it's positioning itself for long term success.” (19:29)
• “I am an owner of bitcoin. I am not going to deviate.” (40:09)
• “This is a terrific company. I'm glad that our viewer of course, brought it to our attention.” (46:08)

Conclusion: In this episode of "Mad Money," Jim Cramer navigates through the complexities of current market dynamics influenced by geopolitical factors and presidential policies. He provides insightful analyses on various sectors, offers strategic investment advice through listener interactions, and highlights the pivotal role of education in sustaining the workforce through his interview with Universal Technical Institute's CEO. Cramer's blend of market expertise and practical advice serves as a comprehensive guide for investors aiming to navigate the challenging investment landscape of 2025.