Mad Money w/ Jim Cramer – Episode Summary (May 29, 2025)

Hosted by CNBC’s Jim Cramer, the May 29, 2025, episode of "Mad Money" delves deep into the current economic climate, significant stock movements, and insightful interviews with industry leaders. This comprehensive summary captures the episode's key discussions, insights, and conclusions.

1. Economic Overview and Tariff Impact

Timestamp: [01:25] – [08:05]

Jim Cramer opens the episode by addressing the tumultuous state of U.S. tariffs and their far-reaching implications. He reflects on recent judicial challenges to tariffs, noting the oscillating market reactions:

• Court Rulings on Tariffs: Cramer highlights a panel of federal judges declaring most of the year's tariffs illegal, causing the S&P futures to surge overnight before retracting following the White House's steadfast stance on maintaining tariffs.

  "Maybe no one wants tariffs on either side of the table except the President of the United States." ([01:25])

• Economic Indicators: He underscores the economy's downturn, citing a GDP drop of 0.2% in Q1 and a spike in weekly jobless claims to a three-year high. The decline in pending home sales is attributed to soaring mortgage rates, now at 7%.

  "What's far more important is the recognition that our economy's plummeted into negative territory." ([04:10])

• Consumer Impact: Cramer emphasizes that tariffs are ultimately borne by consumers through higher living costs, arguing that businesses are passing the expense onto customers rather than absorbing the full cost.

  "As a consumer, you have to be rooting against tariffs because they translate directly into a higher cost of living for you." ([06:15])

2. Stock Market Commentary and Retail Sector Analysis

Timestamp: [08:05] – [38:52]

Cramer provides a detailed analysis of the retail sector, focusing on specific companies affected by tariff policies and market dynamics.

• Wendy’s and Verizon:

  • Wendy’s: He maintains a bearish outlook on Wendy’s, advising investors to exit their positions.

    "I'm reiterating my get out of Wendy's call." ([08:21])

  • Verizon: Praises Verizon’s dividend yield of 6% and notes improvements in the company's performance.

    "I believe in fair trade, not free trade. But I also want tariffs to be rolled out in a way that makes sense." ([09:40])

• ELF Beauty:

  Cramer highlights ELF Beauty's impressive quarter, driven by strong sales and strategic acquisitions.

  "ELF is back up to 112 after a monster 24% run today because the company just reported a magnificent quarter at top and bottom line beat." ([12:11])

• Gap Inc.:

  Discusses Gap Inc.’s solid quarterly performance juxtaposed with stock price volatility due to tariff concerns.

  "Gap plus five. You have Old Navy, ninth consecutive quarter of consistent market share gains." ([30:43])

• Nike’s Struggle and Turnaround Efforts:

  Provides an in-depth analysis of Nike’s challenges over the past few years, including leadership changes and strategic pivots to regain market share.

  "Nike's now trading at the same level we saw during the pandemic year lows in March of 2020." ([20:36])

  Cramer remains cautiously optimistic about Nike's potential for a comeback under new leadership but advises a measured investment approach.

  "I'd start with a small position. That way if something else goes wrong, you can buy more into weakness, pyramid style." ([39:43])

3. Interactive Segment: Caller Questions

Timestamp: [08:05] – [42:36]

Cramer engages with listeners, addressing their stock queries and providing personalized investment advice.

• Caller Ron from Tennessee: Seeks advice on buying more Wendy’s shares. Cramer advises against it, reinforcing his bearish stance.

  "I have not liked for a very, very long time. I need to go to Brian in Connecticut." ([08:21])

• Other Calls:

  • AutoZone: Cramer labels it “the single best buyback” and encourages investment.

    "This is the single best buyback. The quarter is very good." ([28:59])

  • Palantir and Biohaven: Suggests Palantir over Biohaven due to positive outlooks, while acknowledging a personal deal with Biohaven.

    "I think that Sasha is asking for too much to reopen China." ([40:29])

4. Interview with Tarang Amin, CEO of ELF Beauty

Timestamp: [12:11] – [20:24]

Cramer sits down with Tarang Amin to discuss ELF Beauty’s remarkable growth and strategic initiatives.

• Growth and Acquisition:

  Amin shares insights into ELF Beauty’s 25 consecutive quarters of net sales growth and the strategic acquisition of Rhode, a fast-growing beauty brand founded by Hailey Bieber.

  "We just delivered our 25th consecutive quarter of net sales and market share gains drew our net sales 28% in fiscal 25 adjusted, but 26%." ([13:10])

• Retail Expansion:

  Discusses the expansion into major retail chains like Sephora, Target, and Walmart, emphasizing successful launches and strong market positioning.

  "We're very excited about the partnership with Sephora and we think it's going to be a terrific retail partner for us to continue to expand road." ([14:27])

• Tariff Mitigation:

  Explains how ELF Beauty is navigating tariff challenges through price adjustments and supply chain optimization.

  "We have been continuing to optimize our supply chain and diversify our business." ([14:45])

• Future Plans:

  Outlines plans for international expansion into markets like the Netherlands, Belgium, and Poland, aiming for top-tier brand positioning.

  "Our next countries that we're expanding in is we're going with Crowdfat in the Netherlands and Belgium." ([15:28])

Cramer praises Amin’s leadership and strategic foresight, highlighting ELF Beauty’s resilience and growth trajectory.

> *"I think you should be. We do have to talk about something I was discussing with my colleague Ben Stoto's recently director."* ([20:07])

5. Interview with Richard Dixon, President and CEO of Gap Inc.

Timestamp: [30:43] – [38:36]

Cramer engages with Richard Dixon to discuss Gap Inc.'s performance amidst tariff pressures.

• Strong Q1 Performance:

  Dixon emphasizes exceeding expectations with increased same-store sales, market share gains, and a robust balance sheet.

  "Comp sales up 2%. That's the fifth consecutive quarter of positive comps." ([31:19])

• Tariff Mitigation Strategies:

  Details efforts to reduce tariff impacts by diversifying sourcing and minimizing dependence on China.

  "We've already mitigated over half of the anticipated impact of tariffs." ([32:46])

• Brand Revitalization:

  Discusses initiatives to revitalize Banana Republic and strengthen Old Navy’s market position through strategic marketing and product offerings.

  "We continue to strengthen the foundation and product. And with each passing quarter, we're seeing clearer signs of brand progress." ([35:26])

Cramer commends Dixon’s transparent approach and strategic execution, reinforcing his confidence in Gap Inc.’s long-term prospects.

> *"Good quarter, but lots of excitement."* ([36:40])

6. Lightning Round: Quick Stock Picks

Timestamp: [38:36] – [42:36]

In the high-energy Lightning Round, Cramer offers swift buy, sell, or hold recommendations on various stocks based on brief caller inquiries.

• D-Wave Quantum:

  Cramer enthusiastically labels it as “the best,” suggesting potential for a breakout.

  "I think of the ones that are out there, this is the best." ([39:14])

• Idex:

  Advises against investing despite congratulations from a caller, citing high valuation metrics.

  "This one's had too big a run. I'm not there for it." ([39:43])

• Palantir:

  Recommends Palantir over another stock due to expected positive developments.

  "I'm going to suggest Palantir, also known as Palantir by people who don't know it." ([40:29])

7. Discussion on Nvidia and U.S.-China Semiconductor Trade

Timestamp: [43:10] – [47:05]

Cramer concludes the episode with a critical analysis of the semiconductor industry's geopolitical tensions, focusing on Nvidia's strategic position amid escalating U.S.-China trade disputes.

• Nvidia’s Market Position:

  Highlights Nvidia’s dominance in high-end chip manufacturing and the impact of restrictive trade policies.

  "Nvidia currently makes up 50% of the high end chips in China because they're not allowed to sell their best product to the Chinese." ([43:10])

• CEO Jensen Huang's Plea:

  Summarizes Huang's argument for maintaining business ties with China to preserve U.S. semiconductor supremacy.

  "Jensen argued that if you want what's best for the United States, you can't afford to bolster the Chinese chip makers by boxing out Nvidia." ([46:00])

• Geopolitical Implications:

  Cramer draws parallels between the current U.S.-China relationship and the Cold War era, expressing concern over potential escalations.

  "If we're really headed for a new cold war with China, then we have to just get used to it." ([45:10])

• Future Prospects:

  Despite the challenges, Cramer acknowledges Nvidia's global opportunities but remains skeptical about policy shifts under the current administration.

  "I just don't know if President Trump cares because from his latest actions it feels like we're just a few years away from a total shutdown in relations with China." ([46:30])

Conclusion

Jim Cramer's May 29, 2025, episode of "Mad Money" offers a robust exploration of the interplay between U.S. trade policies, corporate strategies, and market reactions. Through insightful interviews and dynamic market analyses, Cramer equips investors with the knowledge to navigate the complexities of today's financial landscape.

This summary provides a holistic view of the episode, capturing essential discussions and notable quotes to inform and engage both regular listeners and those who missed the broadcast.