Mad Money w/ Jim Cramer 5/4/26

Summary

Mad Money w/ Jim Cramer (CNBC) – May 4, 2026

Special Seattle Edition: Interview with Amazon CEO Andy Jassy & Market Insights

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Episode Overview

This Seattle-based episode of Mad Money centers on Jim Cramer's analysis of the current state of the markets amidst global turmoil, a deep dive into Amazon's strategy and innovations with CEO Andy Jassy, and Cramer's views on the computer-driven economy. The show also includes a breakdown of tech stock surges, a spotlight on Federal Realty Trust, and Cramer’s signature Lightning Round of buy/sell/hold stock calls.

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Key Segments & Insights

1. Market Analysis Amidst Geopolitical Tensions

[01:01–07:33]

• Cramer starts with a warning about the impact of surging oil prices and geopolitical risks (Iranian attacks reported, later found exaggerated) on U.S. markets.
  • “If oil prices rise so relentlessly, so high that they impact our bond market... we can't handle higher interest rates.” (Cramer, 01:32)
  • The Dow fell by 557 points on fears of Middle East escalation impacting bond yields and shattering hopes for rate cuts.
  • Despite global instability, U.S. service-based economy offers insulation, but persistent rate and oil price shocks could trigger inflation.
• Amazon showcased as a rare stock thriving amid this volatility (shares up $3.79 on the day).

2. The Growing Dominance of Amazon

[07:33–09:19]

• Cramer previews his sit-down with Andy Jassy, emphasizing how Amazon’s scale echoes historical giants like Standard Oil.
• Amazon’s new supply chain services: “No one seems to be able to get anything to us on time like Amazon does.” (Cramer, 06:46)
  • Amazon leverages its logistics for third parties in industries from pharmaceuticals to automotive.
• Key thesis: The U.S. economy is increasingly “computer-driven,” with hyperscalers like Amazon providing resilience in the face of global uncertainty.
  • “This economy is a computer driven economy. We run on compute.” (Cramer, 06:54)

3. Lightning Round: Audience Stock Questions

[07:33–08:20]

• Caller Gabriel from Maryland asks about Blackstone:
  • “If anything, I’m interested in buying more Blackstone. That’s how good I think it is.” (Cramer, 08:20)

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4. Exclusive Interview: Andy Jassy, CEO of Amazon

[11:05–21:14 & 22:49–37:12]

Amazon’s New Logistics Platform

[12:04–14:02]

• Andy Jassy explains Amazon opening its logistics arm to companies of all sizes.
  • “Most companies don’t feel like it’s a good idea to have to run their own logistics when they can use our supply chain services.” (Jassy, 12:19)
  • Notable clients: 3M, Procter & Gamble, Lands’ End, American Eagle.
  • Small and medium businesses benefit most by skipping costly infrastructure.

Investing Offensively & AI Bets

[14:02–16:48]

• Jassy calls AI “the biggest technology transformation in our lifetimes.”
• Amazon is investing $200B+ to scale AWS and AI, expecting payback not just in a few years but over a 30+ year horizon.
  • “If you look at the pace that things are growing…after the first three years of this inflection of AI, our run rate’s over $15 billion—260 times what it was the first three years of AWS.” (Jassy, 15:41)

“Straight Line Was a Lie” – Innovation Philosophy

[14:21]

• “Most big inflections don’t follow this one linear line…These inflections are so big... you want to bet big, even if you may over rotate a little bit.” (Jassy, 14:21)

AWS Chips & Semiconductor Growth

[18:51–21:04]

• AWS’s chips business: $20B+ run-rate, potentially $50B by 2026; growing triple digits.
  • Two largest AI labs (OpenAI, Anthropic) are long-term customers for Amazon's Trainium chips.
  • “At scale, it will save us tens of billions of dollars of capex a year and hundreds of basis points in operating margin.” (Jassy, 19:33)
• Amazon’s strategy: Continue partnering with Nvidia for choice/flexibility.

Rural America & Digital Divide

[22:49–25:40]

• Amazon is heavily investing in rural America: $4B for rural last-mile delivery, broadband (Amazon LEO satellites).
  • “While other companies have been backing away from rural customers, we’ve been running to them.” (Jassy, 23:25)
  • “There’s a digital divide…If you live in a rural area, the fact that you can’t get items via E commerce in less than three days, I think it’s unfair and I think it’s a bad customer experience.” (Jassy, 23:40)

Price Strategy and Inflation

[25:40–27:39]

• Amazon prices down vs. last year despite CPI surges.
  • “It’s pretty easy to lower prices but it’s much harder to be able to afford to lower prices.” (Jassy, 26:10)
  • Amazon re-engineers logistics to minimize cost and pass savings to consumers.

Health Care Ambitions

[27:39–30:31]

• Focus on pharmacy and primary care (One Medical) over insurance for now.
  • “Our grandkids are not going to believe that the way we used to do it was... drive 20 minutes to the doctor, wait, see a doctor for five...” (Jassy, 27:55)
  • AI-powered health platform to integrate records and answer medical questions.

Partnerships with OpenAI/Anthropic

[30:31–31:49]

• Both partners have $30B+ run-rates—pace of growth is “mindblowing.”
• “We’ve built a pretty large AI business and we’re still early days. So we believe we’re building a very, very large AI business that is transformational.” (Jassy, 31:23)

“Winner Take All” Question

[32:51–34:34]

• Satellites: Amazon (LEO) and SpaceX (Starlink) will both succeed due to sheer need.
  • “There are billions of people around the world with no broadband connectivity…there’s going to be more than one successful company.” (Jassy, 33:17)
  • Amazon LEO will offer superior performance, lower cost, and cloud integration.

Sports and Entertainment Reinvention

[34:34–37:01]

• Amazon is “reinventing” how people watch and interact with sports/media.
  • “If you’re not learning and you’re not inventing, you’re starting to unwind, whether you realize it or not.” (Jassy, 35:01)
  • Success in original content and aggregation with partners (HBO, Apple, Paramount, etc.).

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5. Tech Stock Analysis: Data Storage and CPUs (“Galloping” stocks)

[37:24–42:06]

• Cramer highlights explosive growth in memory (SanDisk, Western Digital, Seagate) and CPU stocks, fueled by AI/data centers.
  • “The storage stocks... just don’t know when to quit. They’ve been on insane runs because... we’re building data centers all over the place.”
• Seagate example: From barely $0.19 EPS in 2023 to projected $38 in 2028.
• “These stocks have to blow through all sorts of levels to get to where they’re inevitably going. And that’s the gallop that I’m seeing.” (Cramer, 41:21)

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6. Lightning Round – Buy/Sell/Hold

[42:06–42:55]

• TTM Technologies (TTM): “Good one. Part of the great change in compute.”
• Pershing Square Holdings IPO (PSH): “Too early for me to tell... I want to see a couple quarters.”

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7. Interview: Don Wood, CEO of Federal Realty Trust (FRT)

[43:08–47:22]

• FRT thriving by serving affluent communities amid economic uncertainty.
  • “The affluent customer…allows them to continue to buy what they want.” (Wood, 43:54)
  • Experiences at mixed-use centers like Santana Row (San Jose) prove the demand for community-centered retail/living.
• COVID drove people to value local, social experiences.
  • “It did the country such a big favor from the standpoint of getting outside, understanding socialization, enjoying both eating out, shopping out, being part of the community.” (Wood, 44:59)
• FRT has raised dividends every year since 1967.

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Notable Quotes

• Jim Cramer [01:32]: “If oil prices rise so relentlessly, so high that they impact our bond market... we can't handle higher interest rates.”
• Andy Jassy [15:41]: “AI is the biggest technology transformation in our lifetimes. It’s going to reinvent every single customer experience with we know, and altogether new ones we never imagined.”
• Andy Jassy [23:25]: “While other companies have been backing away from rural customers, we've been running to them.”
• Andy Jassy [26:10]: “It’s pretty easy to lower prices but it’s much harder to be able to afford to lower prices.”
• Don Wood [43:54]: “The affluent customer…allows them to continue to buy what they want.”
• Andy Jassy [35:01]: “If you’re not learning and you’re not inventing, you’re starting to unwind, whether you realize it or not.”

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Timestamps – Key Segments

• 01:01 – Cramer’s Market Overview
• 06:54 – Computer-driven Economy Thesis
• 07:33 – Lightning Round Caller (Blackstone)
• 11:05 – Interview: Andy Jassy (Amazon Logistics & AI)
• 18:51 – AWS Semiconductors & AI
• 22:49 – Segment 2 with Andy Jassy (Rural Focus, Price Strategies)
• 27:39 – Amazon Healthcare Initiatives
• 37:24 – Tech Stock “Gallop” Analysis
• 42:06 – Lightning Round (TTM, PSH)
• 43:08 – Don Wood (Federal Realty Trust)

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Summary

This episode provides a comprehensive look at how Amazon, through digital and AI innovations, stays robust amidst global market chaos and inflationary pressures. Jim Cramer’s thorough questioning of Andy Jassy reveals Amazon’s relentless expansion, from logistics and AI chips to rural connectivity, price leadership, and healthcare. The show closes with optimism about select tech and real estate plays, presenting a bullish, technology-first narrative even in uncertain times.

Transcript

[Jennifer Garner]

Hi, I'm Jennifer Garner. Being a business owner takes hard work and a whole lot of miles. So once upon a farm needed a serious business card. We chose the Capital One venturex business card with unlimited double miles on every purchase. We earn rewards on all the things we need to grow our business. Venturex business gives us big purchasing power so we can spend more and earn more. We redeemed miles to travel the country and partner with new stores. Capital One what's in your wallet?

[Andy Jassy]

Terms of why? See capitalone.com for details.

[Dr. Guy Winch]

Men are struggling with their mental health at some of the highest rates we've ever seen. But most aren't getting the support they need. And that needs to change. I'm Dr. Guy Winch, your host for season three of the Visibility Gap, presented by Cigna Healthcare. This season we're focusing on men's mental health, bringing together real stories and expert insight to explore the pressures men face every day and why opening up can feel so difficult. Join us for the new season wherever you stream your podcasts.

[Jim Cramer]

My mission is simple to 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. Man, Money starts now. Hey, I'm Kramer. Welcome to a special Seattle edition of Mad Money. I'll be with friends. I'm just trying to make a little bit money. My job is not just to entertain, but to educate, to teach. Call me at 1-800-743- CNBC. Tweet me at Jim Cramer. This morning, my Squawk on the street co host Carl Quintanilla asked me, at what point does the war actually matter? I told him that our stocks are relatively insulated from the war because so much of our economy is service based and that means it's domestic. You don't export service aside from travel and leisure. I said, I think we'll be okay. But. And this is a very big but, there's one case where things could go awry. If oil prices rise so relentlessly, so high that they impact our bond market. Because we can handle higher oil, but we can't handle higher interest rates. Today we saw a glimpse of that future. With the dow ultimately tumbling 557 points, SB losing.41% and the NASDAQ declining 0.19%, the market was looking up this morning. 6:00am Usual techs rallying. You could imagine the month of May kind of turning out a lot like April. Then a little after 6 Eastern, we got reports that Iran had launched some missiles at two different U.S. warships. The futures plummeted, the gains vanished, and the worst of all, the Treasuries took a big hit. Rates soared, the 30 year treasury volume spike through 5 and the grand thesis, the idea that peace might be breaking out in the Middle east just when we have a new Fed chief coming in who wants to cut rates, seemed to vanish before our eyes. Incredibly, the story about the missiles in our navy turned out to be false or at least exaggerated. There's no US ships were actually hit, but stocks kept getting hammered because the Iranians were busy violating the ceasefire and launching drones and missiles at countries throughout the Gulf. Yet the war's back on, and unless the President does something beyond talking about shallow victories and gets that straight open, we're going to see interest rates keep climbing. At a certain point, the grand plan to get the domestic economy growing faster will turn into an inflation addled grand illusion. Sure, there were pockets that went higher. Oils of course rallied. Every time something bad happens, they rallied. Some of the data center stocks crept higher. In the bedraggled enterprise, software players had their day in the sun, although their day only seems to be like about a half a day and it's the decline then resumes overall plug ugly session. Maybe that's a good reason to take a break from focusing on the war and head out to Seattle to see the company that never sleeps with its CEO, who doesn't seem to sleep either. I'm talking about Amazon and its CEO Andy Jassy. Higher interest rates can fail many a company, but if you want to guess who'd be the last man standing who could do a lot worse than betting on Amazon with a stock that rallied $3.79 today. If there were a couchy bet about which company could thrive with a crimped, it will somewhat oddly be Amazon because their goal is always to keep prices as low as possible, making the ultimate trade down play. There's a reason we own this one for the Chapel Trust I'm in awe of how Amazon's become all encompassing in so many aspects of our lives today. Literally today while I'm here. But not in honor of me. Because even I'm not narcissistic enough to believe that Amazon rolled out a whole new business line supply chain services where customers in all sorts of indust like drugs and pharma and retail can use Amazon's massive transportation logistics arm. You've seen the trucks on the highway. No one seems to be able to get anything to us on time like Amazon does. So if you're a Ford dealer waiting for a Ford F150 truck part for an angry customer or you're a small pretzel maker who might want to avoid the costly American distribution system. You can call Amazon, get it to the customer on time and save a fortune. When I hear things like that, I try to figure out how much Amazon means to America means to you. No one has ever been that big a factor to our growth since Standard Oil got broken up for monopolizing the oil market over a century ago. I bring this up because I'm never going to deviate from the notion that all economies are based on credit, including ours. We need rates to stop rising and I'm beginning to believe that we're just a couple of well executed Iranian drone strikes away from $110 crude and five and a quarter yield on the 30 year Treasury. Maybe we're half a dozen successful missile strikes away from $120 oil and then we slouching towards settlement. 30 year something I don't even want to think about because it would be like taking a machete the S&P 500. So why not sell and get out ahead of the potential pain? Simple. Because of places like where I am today. What comes up occasionally comes down and this war ever ends. I can only imagine what will happen to interest rates and to travel and leisure, the hardest hit segment economy. What you really would need to own though are the companies that actually dominate the new economy. It's good to say we're 2/3 service and 1/3 industrial. When I'm at Amazon, it feels like old hat, like I'm mouthing what I learned 50 years ago in Act 10. I leave here thinking something different may be happening. Something that explains the strength of tech and the all powerful nature of the hyperscalers, the behemoths of Amazon and maybe the stock market in general. This economy is a computer driven economy. We run on compute. It's a big reason why our economy hasn't slowed as much as others. We're just getting more and more computer oriented in a positive way. Because Computer driven economy uses AI to make everything faster, better, cheaper. And that's why we have some immunity from the world's troubles. Which brings me to the bottom line. The amazing thing about the computer driven economy is that it doesn't care much about oil or interest rates. So before you get too glum, remember that the drive of computers is going in one direction higher. And it's taking a huge number of stocks along with it. Let's take calls. Let's go to Gabriel in Maryland. Gabriel.

[Caller/Guest]

Hey Jim, how are you?

[Jim Cramer]

I am doing well. How about you partner?

[Caller/Guest]

I'm all good. I mean tomorrow it's Cinco de Mayo. As a Mexican American, I'm very proud of all your support that you have been giving to the agave spirit coming from Mexico. You're doing great. Very proud of it.

[Jim Cramer]

Well, thank you, thank you. We got a nice business coming out of Jalisco and also out of Puebla. So thank you for noticing that. I really appreciate it.

[Caller/Guest]

No, thank you. And I want to pick your brain and pick a little bit of your ideas on Blackstone. Have been accumulating Blackstone since mid March.

[Jim Cramer]

Okay. And I've got to tell you something, Imra. I like Blackstone very much. I just talked to watch Jonathan Gray today talking to David Faber. I think it's a really good situation. If anything, I'm interested in buying more Blackstone. That's how good I think it is. And Phosphoro thanks you tremendously. Before you get too glum, everybody, remember that this computer driven economy isn't impacted by oil or interest rates as much as others. We got a very special money ahead starting with my sit down with the man himself, Amazon CEO Andy Jassy. From Amazon's investments in AI to its plans to take on Starlink, you do not want to miss anything from our wide ranging conversation. Then as memory and CPU stocks keep setting new all time highs, I'm breaking down why Wall Street's been caught so off guard by their moves going higher. And I'm getting a read on the real est investment trust industry with the bankable CEO of Federal Realty Trust. Find out consumers doing shopping after the company beat and raised last week. Stay with Kramer.

[Podcast Host/Announcer]

Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Missed something? Head to madmoney.cnbc.com

[Jennifer Garner]

hi, I'm Jennifer Garner. Being a business owner takes hard work and a whole lot of miles. So once upon a farm needed a serious business card. We chose the Capital One venturex business card. With unlimited double miles on every purchase. We earn rewards on all the things we need to grow our business. Venture X business gives us big purchasing power so we can spend more and earn more. We redeemed miles to travel the country and partner with new stores. Capital One, what's in your wallet in

[Andy Jassy]

terms of I see capitalone.com for details.

[Podcast Host/Announcer]

This episode is brought 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 [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

[AT&T Business Representative]

Not every sale happens at the register before AT&T business Wireless, checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people will say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sale or two. Sometimes I do miss the bonding time. Sometimes.

[Jim Cramer]

AT&T business Wireless Connecting changes everything. To celebrate 250 years of American innovation, we're on the ground with the companies, pushing things forward, highlighting the names, helping build what comes next. And that's why we're here at Amazon's headquarters. The tech giant reported a really fabulous quarter last week, driven by their booming Amazon Web Services business for cloud, infrastructure and AI. While this is still one of the largest retailers in the world, AWS alone has an annual revenue run rate of $150 billion. And they keep adding more to the story on a pretty regular basis from setting up their own low earth orbit satellites for Internet service, dropping their supply chain services to anyone who wants. It's at the heart of the computer driven economy. So let's check in with the man behind all these plans, Andy Jassy, the President CEO of Amazon. Andy, thank you so much for taking us here and welcome back to Mad Money.

[Andy Jassy]

It's great to be here with you.

[Jim Cramer]

All right, so you broke some news today and I think it's kind of emblematic of what Amazon does. You've come up with something that is better for people, better for businesses, makes everything cheaper, run faster, and it's about logistics. Sounds like a little bit like Amazon Web Services when you were running that.

[Andy Jassy]

Well, it has some similarities. I mean today most companies don't think it's a good idea to run their own infrastructure technology themselves when they can put it in the cloud. And I think over time you might find that most companies don't feel like it's a good idea to have to run their own logistics when they can use our supply chain services. And so if you think about what we had to do as A retail business. We had to get really good at being able to move products from manufacturers to upstream storage warehouses to the actual fulfillment centers where you actually do the fulfillment to allowing people to sell in multiple marketplaces but have one inventory pool to the last mile delivery. We had to get good at all those to scale our retail business. We just said, you know it makes so much sense to expose these services to companies of all sizes. And you know today we announced that 3M and Procter and Gamble and Lands End and American Eagle were all using the services. But it may end up being the case that so many companies small mid size get the most benefit because to not have to build out their own logistics network is a big deal.

[Jim Cramer]

When I hear I just terrific about Procter and I know you want to send west east for American Eagle. But I always think about the small businessmen or the bit or the middle who have normally go to a distributor, maybe they can go direct and the distributor won't take the 30%. It is just a fantastic opportunity for someone who is just starting a business.

[Andy Jassy]

Yeah. You know today to try and. To try and compile a supply chain for any size business, but particularly a small business that doesn't want to have to build all those capabilities themselves is time consuming and expensive. And so if we can provide those components at a very cost competitive rate like we do and at a very high quality, it's very compelling.

[Jim Cramer]

All right, now I want to go to your letter which was. Look, I've told you at times where I thought you were like too soul searching. This was the opposite. This was pure offense. And I know you're a sports fan and I'm a sports fan. I want to win with defense. But offense is exciting. Progression at Amazon is not exactly a straight lie. What does that mean?

[Andy Jassy]

Well, I think I love this Beths, the band the Beths and they have a very clever lyrics and album titles. And this last album, Straight Line was a lie. Really spoke to me because most big inflections don't follow this one linear line. It would be so much easier if they followed this straight linear line. But they don't. And it means that you have to acknowledge that. It means that you're going to go through, there's going to be disruption, you're going to try ideas that don't work and you have to go back to the starting line. If there's something important enough you're going to have to think about do I only want to take one shot at finding the answer or am I going to take multiple Parallel shots, because it's so important. I have to make sure I find a winning solution here. And I think that when you believe that there is a particular inflection that is disproportionately important, like AI is as an example, you want to bet big, even if it means that, you know, you may over rotate a little bit. These inflections are so big and so impactful on the future of what customer experiences are and your company that you want to make sure that you've. You've gone all in on.

[Jim Cramer]

Well, this is important because by the way, you use the term reinvent four times, reimagine three times. And I was thinking, well, isn't that what you're doing right now, when you spend $200 billion and you actually believe it's going to pay off?

[Andy Jassy]

Yeah. Well, I mean, to me, the really big capital expenditure bet that we're making is because we believe that AI is the biggest technology transformation in our lifetimes. It's going to reinvent every single customer experience with we know, and altogether new ones we never imagined. And, you know, if you look at the pace that things are growing, I mean, just I used in the letter the example of the first three. After the first three years of aws, we thought we were growing really fast, and we were about $56 million in revenue. And after the first three years of this inflection of AI or this incarnation of AI, our run rate's over $15 billion, 260 times what it was the first three years of AWS, and we thought we were growing fast with AWS. So when you have shifts that are this momentous, you want to make sure that you invest in such a way that you can pursue the opportunity as broadly for your customers as possible, as well as for, I think not just our customers will benefit, but our shareholders and the company as a whole will be a very different company five to 10 years from now, because we're betting big like this than it would otherwise be if we were conservative.

[Jim Cramer]

I think there's so many people, pundits, whatever, who say they're spending so much without any real hope of regaining it. Not only do you disagree with that, but you talk about a return in a couple of years, and then you're talking about 30 years, the return will be unbelievable. What are they missing?

[Andy Jassy]

Well, I think that it's. People sometimes forget the way the cash cycle works in a business like aws. So the way it works is that we have to lay out capital and cash in advance of when we can Monetize it. This is for land for the data centers, power, the buildings themselves, the hardware, the chips, networking gear. You have to lay all that out in advance. Some of it is about six months in advance and a bunch of it is two years in advance. And so that means that the faster we grow in aws, the more capital we have to lay out in the short term, which will create challenges in your free cash flow in the short term. But these assets are many, your useful life assets. You know, on the, on the networking and the hardware side it's about six years. On the data center side it's 30 plus year useful life assets. And so you get to monetize those assets over a long period of time so that when your revenue growth starts to catch up with the capital expenditure growth, you actually end up really liking the operating margin, the free cash flow and the roic. And so we've lived this movie once before in the first wave of AWS where we had the same type of curve where we were spending so much capex in the short term. And then we all really liked the free cash flow and the ROIC a few years later. And I think the same story is going to play out, except with just much larger revenue and free cash flow downstream.

[Jim Cramer]

Okay, now in terms of inflections, I saw two. One was food and the other was semis. And your description of these in the letter was just mind blowing. One of the reasons why I think the stock went up so much wasn't just the quarter. But you explained how these could be big semiconductors. Do people know how big that business is for you?

[Andy Jassy]

Well, we're trying to help people be more aware of what that business looks like for us. And you know, it's kind of remarkable how fast our chips business is growing. It's, you know, last quarter we announced it's over a $20 billion annual run rate business. And that may understate really the size of it. If you, if we actually took all the chips that we're going to produce in 2026 and we sold them to us and to third parties in the form of racks like most of the leading chip companies do, that business will look more like a $50 billion annual run rate business. And you know, it's growing triple digit percentages year over year. The two largest AI labs in the world in OpenAI and Anthropic, have made multi year, multi gigawatt commitments to Trainium, which is our AI silicon. You probably saw the Meta just announced that they're going to consume tens of Millions of cores of Graviton, which is our CPU chip. Today, 98% of the top 1000 EC2 customers use Graviton in a very expansive way. And so the business itself, I think it's great for customers because it gives customers choice and it gives gives them advantage, price, performance. But it also is going to be good for us long term because at our scale, like think about what we're investing in capital expenditure right now. I expect that there'll be investment opportunities for a long time. At scale, it will save us tens of billions of dollars of capex a year and hundreds of basis points in operating margin, which is a big deal for us too.

[Jim Cramer]

When you say choice, it's important people understand. I know you could say I'm too close to it, but that Nvidia is often the alternative. And you remain an excellent customer of Nvidia too.

[Andy Jassy]

Yeah, we have a deep partnership with Nvidia. We will for as long as I can foresee. We have an immense amount of respect for them and you know, we're going to always have customers that want to run Nvidia and awb and we will continue to make AWS the best place to run Nvidia. And that's true. And we'll also have, you know, a very good chips business. And that's because customers want choice. It's true in every technology. It was true in databases, it's true in analytics, it's true in frontier models, and it's true in chips. And so we'll be able to do both successfully, I believe.

[Jim Cramer]

Top five chip company.

[Andy Jassy]

I think we're well on our way.

[Jim Cramer]

Okay, well, we're going to take a break here and we're going to come back, but there's a lot to talk about also. I'll get a little philosophical if you don't mind when we come back.

[Jennifer Garner]

Hi, I'm Jennifer Garner. Being a business owner takes hard work and a whole lot of miles. So once upon a farm needed a serious business card. We chose the Capital One venturex business card with unlimited double miles on every purchase. We earn rewards on all the things we need to grow our business. Venture X business gives us big purchasing power so we can spend more and earn more. We redeemed miles to travel the country and partner with new stores. Capital One, what's in your wallet?

[Andy Jassy]

Terms of lie. See capitalone.com for details.

[Podcast Host/Announcer]

This episode is brought 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 [e-mail] Market Update podcast or find Schwab Market Update wherever you get your podcasts.

[Dr. Guy Winch]

Men are struggling with their mental health at some of the highest rates we've ever seen, but most aren't getting the support they need. And, and that needs to change. I'm Dr. Guy Winch, your host for season three of the Visibility Gap, presented by Cigna Healthcare. This season we're focusing on men's mental health, bringing together real stories and expert insight to explore the pressures men face every day and why opening up can feel so difficult. Join us for the new season wherever you stream your podcasts.

[Jim Cramer]

Before the break, I spoke with with Andy Jass at the presidency of Amazon. Because this is one of the most important companies in the world, there was more than we could cover in a single segment. So let's get right back into it. Andy, I want people to understand the ethos of Amazon. Maybe the best way to do it is to say something that you said in your letter. While other companies have been backing away from rural customers, we've been running to them. I think this is very much of what's going on in terms of lowering price, in terms of getting it so everybody can have stuff as fast as possible. And I just want you to speak to it because it's not what every no one's doing what you're doing.

[Andy Jassy]

How about that? Well, it's more expensive to try to service rural customers because your investments aren't able to be amortized across as dense a population. And so it's harder sometimes to serve rural customers. But the reality is, you know, there is a digital divide in this country and in the world right now. And if you look at, to me, if you live in a rural area, the fact that you can't get items via E commerce in less than three days, I think it's unfair and I think it's a bad customer experience. And so we've decided we invested $4 billion to build out a last mile delivery network for rural customers. If you look at the amount of items that we're getting to them now, same day, it's, it's more than double already this year, year to date versus last year. And we're still in the process of building out all the delivery stations. And so we're going to be able to get items to customers in rural areas so much faster inside a day or two, which is a very different customer experience than what you could do before. I think the same is true around just the connectivity they have where there is a real digital divide. The things that you and I are used to doing every day that we take for granted, doing business online or education online or shopping or entertainment, those things you can't do in a lot of rural communities. They're without broadband connectivity. There's billions of people around the world who don't have broadband connectivity. And so if we're able to make that, if we're able to give them that connectivity with satellites with you know, we're building this low earth orbit satellite called Amazon Leo that completely changes what's possible for people in rural areas. So you know, yes, it's a meaningful investment but the way we think about investments is we're trying to make customers lives better and easier every day. And then we try to have a long time horizon how we think about it. And we believe over a long period of time if we do right by rural customers, we make it much faster for them to get their items. They will shop with us much more frequently. If we make it easy for them to get connectivity, it's going to be, you know, their lives will change and what they're able to do where they live will change and that will benefit us too.

[Jim Cramer]

Well, there's the ethos includes democratization. I think it's really important. It also includes something we can talk about. When you're the second largest grocer and I it bothers me tremendously when I see the CPI number and it's up and I hear that the place I shop Amazon, the prices are down. How do you reconcile this and how do you keep prices? Your prices overall are down versus last year. We have a bout of inflation everyone tells me is going to be said so interest rates skyrocket. How do you do it?

[Andy Jassy]

Well, we have an expression that we've used for, for almost a couple decades at Amazon that it's pretty easy to lower prices but it's much harder to be able to afford to lower prices. And it's really true. And so we spend, if you were in our meetings, we spent a disproportionate amount of time A inventing and then B trying to figure out how we can lower our cost to serve and inside our fulfillment network so that we can continue to keep prices low for customers. So you know, that takes the form of things like we've completely re architected our regional network in the US so we get items, we're able to Store items closer to end users so they travel shorter distances, they get there quicker, and it's less expensive to serve customers that way. We've completely re architected our inbound network again to try and get items to more fulfillment centers closer to the end customer. We spent a lot of time trying to figure out how to allow customers to add to their orders. We have a lot of customers who have items coming almost every day to them. And so we have this feature, add to order, where you can just add an item to an existing outstanding order, which seems easy enough from a UI perspective, but think about the logistics of an order that you're already processing and then being able to get that item in the same order. And so the work we do to get more units and in each box, it's better for customers because they don't have to open as many packages and have environmental waste. And it is just a much better, faster experience. And it happens to be more cost effective for us too.

[Jim Cramer]

Now, you're also doing some great things in medical, including prescription same day one medical. I've used that. It's great. I think that the thing that is really tripped up most Americans and caused most bankruptcies is health care. Is there any chance that one day I can buy a health care insurance policy with you?

[Andy Jassy]

Well, we're not, you know, we're not focused on that part of it right now, Jim, but I happen to agree with you. We spent a lot of energy here thinking about just the health care experience around the world, but particularly in the US is, it's very challenging, it's very frustrating. And so we really started with, with the area that was closest to what we do, which is really pharmacy. And I think if you look at that pharmacy experience, experience over the last couple years, it's such a good experience for people to be able to get your pharmaceutical items same day in thousands of cities like you can. It is a game changer to be able to get your drugs that you need to use that way. And then I think if you look at primary care, I think our grandkids are not going to believe that the way we used to do it was we'd make an appointment a month in advance, drive 20 minutes to the doctor, park wait in the reception for 20 minutes, they'd show you into a room, you'd wait for the doctor for 20 minutes and then they'd see you for five and then you drive 20 more minutes to the pharmacy. Like that experience is really, it's broken. It's not going to be the case and one medical has really an amazing digital interface where you can do virtual chats or you can do video interviews or, or meetings. And if you need to see somebody in a physical location, we have them in lots of cities. And I think the other thing is really interesting is that over time I do believe that there are a lot of questions that people have that they either don't ask or they wait too long because it takes, it's hard to get into a medical practitioner. And the fact that you're going to be able to do that through AI, if you look at our health AI offering, which is really an amazing AI offering which you can connect all your medical records to it and you can ask questions of your own health with your health history in mind. People are taking advantage of that and using it so much more than we even imagined. And it's, and it's still early. You can't make money on that over time. What's going to happen is what I believe is, first of all, we can decide downstream whether or not there's subscriptions that come along with that. But I do think it will make people want to be part of one medical over a longer period of time. I do think people will come in for visits. You can either have a subscription or come in for an individual visit. I do think people will probably do their pharmacy shopping with us over time if we're being useful to them generally in their medical questions they have. So I think it's very early in the model, but I again, we're just trying to make customers lives easier and better every day. And we have found business models out of that as we've done so.

[Jim Cramer]

So in the meantime, I know that in the news we're constantly hearing about what Anthropic is doing and what Open Air is doing. You have close relations with both. Now, some of your deals are upfront, but then you have to hope things work out in the back for you. The rest is paid by you. It sounds like you're more hard money and they're more soft money. Are you confident that they can pay you for what can they get hold up their end?

[Andy Jassy]

I think that those two companies, Anthropic and OpenAI are unbelievable stories. I mean, the fact that they're Both reportedly over $30 billion in revenue at this stage of their evolution, it's mind blowing. I mean, it just. We're talking about earlier about how fast some of These businesses grow $30 billion annual run rate in a few years is unbelievable. And I still think that so many people are Thinking small with respect to what's going to be the case. And we are so early in this. And so I think, look, I mean every company, you know, we have a lot of confidence that we're, you know, we've built a pretty large AI business and we're still early days. So we believe we're building a very, very large AI business is transformational. But I also think they're going to be multiple successful companies. I think those two are going to be two of them.

[Jim Cramer]

Now if you didn't spend this money, the likelihood of failures increased dramatically, don't you think?

[Andy Jassy]

If we didn't spend the money and investing in our own, I, I just think you would, you would. If you don't find ways to help customers take advantage of the technology, that's going to change, you know, their customers experiences and their businesses. You may not fail on your own, at least quickly, but you will be failing every day. And you don't, you may not realize it. I mean, if you don't find ways to be relevant and to help people get to that next wave, you're just not as relevant to customers. And so, you know, every conversation we have with, with, with any company starts with AI. People are so excited about what's possible there. And it's, you know, even there, as we've talked about, I can't believe how fast AI is growing, but it's still relatively early days in AI. But I do think the fact that we are in the middle of so many companies transformations and being able to use AI is, it's great for them and it's good for us too.

[Jim Cramer]

Now I think a lot of people think that there has to be winner take all. That loser has nothing. I hear you on air, it sounds like it's big enough for everybody. I wonder whether it's, whether satellites big enough for everybody. You've got Starlink, you've got you. Why wouldn't that be a situation where, oh geez, we, we didn't have the horses, they sent more satellites than us, there's no room.

[Andy Jassy]

Well, if you accept for a second that there are billions of people around the world with no broadband connectivity and there are many, many thousands of companies and government entities that want visibility into those assets where they can't get them, there's going to be more than one successful, successful company. I mean they're going to be multiple. Now I think when we get our Constellation up and we have, you know, about 300 satellites that we've launched, with 20 more launches coming this year and 30 more launches coming next year. But when we have our Constellation up, they're really going to only be two companies with this leading edge technology up there. And I think we have some advantages that we can bring to bear. I think first, the performance of LEO will be advantaged. You know, it'll be about two times better downlink, which is, you know, taking the data down, and about six times better uplink, which is uploading the data than the other option out there. I think we'll, we'll be lower priced, which, you know, obviously matters to the customers that we're serving. And then if you're a company or a government entity, you want to take that data off the lower orbit satellite and you want to store it in the cloud. You, you want to do analytics on it, you want to do AI. And then the fact that our LEO works seamlessly with the leading cloud provider in the world is very compelling to commercial entities.

[Jim Cramer]

Forget that's the AI using the data. Absolutely. Now, you love sports and entertainment too. You're trying to reinvent that, whether it be what you're doing with the mass, with, with, with this golf, what you're doing, obviously with football. I think it's interesting in terms of reinventing. You had this wondery. I thought it was pretty good. And I'm a big Eagle Kelsey fan. Not as much of a chief Kelsey fan, but you're reinventing, you're reinventing that too. Right. It just felt like it's not the right format. Let's have a new format.

[Andy Jassy]

Yeah. You know, every single one of these areas that we all. That seems stable to people are really not stable. I mean, they, they change all the time. And, and if you're, if you're not learning and you're not inventing, you're starting to unwind, whether you realize it or not. And, and, and that's, you know, we saw that in media that streaming would be a medium that was, you know, very different from what Linear was. And we started investing it many, many years ago. And it's, it's pretty. We're, we're kind of amazed at how fast it's growing, you know, the businesses, the economics of the business has gotten much better over the last several years. And, you know, I think the combination of producing increasingly better content. Hail Mary Project. Hail Mary. Over $615 million at the box office. It's really. Have you seen the movie yet?

[Jim Cramer]

No. No. Does he work on this interview?

[Andy Jassy]

Well, I don't. I would advise you as soon as the interview's over to go See it. It's really one of the best movies I've seen in many years. Really good. And you know, shows like Fallout and the Boys and Reacher and Cross and Young Shirley, I mean we, I think the show shows continue to get better and better and live sports has been a big deal for us and you know, the NFL, NBA, NASCAR Champions League, UEFA, the Masters. And if you look at what we do in live sports, we're not just trying to roll out the same playbook that they've been running in linear for a long time. We're trying to leverage the medium and then we're trying to use analytics and AI to tell a different story and give fans a different perspective. And I, I think that's been really significant successful. And the last thing I'd say is that we've also taken an approach where it's not just our content. We think we have amazing content in Prime Video, but we have really deep partnerships with HBO and Max and Paramount and Peacock and Fox and Apple where people can come and find all the content they want. And that's also very compelling. When you sit down with your family, you think about what you're going to watch that night.

[Jim Cramer]

Well, I need like seven hours with just the initiatives that you yourself have brought to this company. But they're telling me to rap. I wish they didn't. That's Andy Jassy's president and CEO of Amazon. Andy, thank you so much.

[Andy Jassy]

Thanks for having me.

[Jim Cramer]

We used to call it galloping. That's when a stock race is higher because something major has changed. It makes the underlying company much more valuable almost instantaneously than anyone thought. Right now there are two sets of stocks that are galloping. Companies that make data storage and companies that make CPUs. Both are driven by the astonishing growth of the data center build out something that keeps catching people by surprise. The storage stocks, SanDisk, Western Digital and Seagate being the big three, just don't know when to quit. They've been on insane runs because historically where you said that industry putting up okay growth with fairly inconsistent earnings, their stocks always had very low price journeys multiples because nobody pays up for that kind of business to boom to bust. Suddenly though, we're building data centers all over the place. And these are warehouses full of servers that need colossal amounts of memory and data storage. That's changed the game. Let me give it just one example. Seagate had episodic earnings for years in fiscal 2023, the 12 month period that ended in June 2023. They were barely profitable making just 19 cents in non GAAP earnings per share. In fiscal 2024, which ended in June 2024, they made a $29 per share. In fiscal 2025, they made $8.10 per share. Now Seagate's projected to make nearly $15 this year, fiscal 2026, then around $26 next year, and $38 in fiscal 2028, which ends in June 2028. They're practically printing money because there's not enough storage to go around so they can raise prices with impunity. Western Digital and SanDisk have similar trajectories. That's why their stocks can keep charging higher. Even though the moves seem just crazy. In reality, they're just catching up to the sky high but incredibly realistic estimates. Consider the price of SanDisk. Right now, the stock trades at $1,255. It's supposed to run around $63 per share in fiscal 2026, which ends in June, and then nearly $170 per share next year, which I think is actually a lowball estimate, even though it's up a staggering 3,500%. How's your s and P fund doing over the past 12 months? It's still selling for less than 10 times that year's earnings. That's extremely cheap for a growth stock. And make no mistake about it, sandisk has become a growth stock. The CPU companies are similar. For a long time, we had a CPU glut that constantly weighed on intel and amd, the two main players here. Plenty capacity, not enough uses. Then the data center comes along and there's no longer a glut. There's a shortage because the data center produces agents, and agents need an insane amount of CPUs. When you have a shortage, the company that makes the product pretty much becomes a growth stock overnight. The problem is growth stocks get much higher valuations than value stocks, and the market can't handle the transition. Transition all that quickly. These stocks have to blow through all sorts of levels to get to where they're inevitably going. And that's the gallop that I'm seeing. That's the gallop that you're hearing? That's the gallop I'm talking about. Periodically, some analysts will try to call a high. We had one today saying that AMD had hit its peak. I come back and say, why? How do you know? Did the CPU shortage end? Do we not have any more agents? If it hasn't ended, then the estimates are still too low. If the estimates are still too low, the Stock's going to go up when we find out the real numbers. So you use these downgrades to buy. Now it's always possible that one of the hyperscalers comes up with a new way to store data. Or maybe the semiconductor equipment companies can make enough machinery to pump out more product which would then solve the shortage causing much lower prices and huge shortfalls. But so far that's not happening. Those semiconductor capital equipment makers are maxed out too because they didn't see that's coming either. And that's why there's no tipping point on the horizon. So the stocks run and run and run until they get to a level where they're trading like growth plays, no longer value plays. Seeing these moves gives me vertigo. But I know we're still pretty far from that end point. Which means the galloping will continue until supply meets demand. And demand keeps growing while supply, it seems almost static compared to what is needed. That money's back after the break. It is time. It's time for a very special Seattle edition of the Lightning Round. Kramer's new money. That's right. Thank you. Cole's rapid fire and name is doctor Said Bye bye bye. So bell so just be a donut Carlotta. Time playing Sal and then the lightning round is over. Are you ready Ski D? Light crash over Sam in Pennsylvania. Sam.

[Caller/Guest]

Jim, I got an interesting one. So this Stock is up 500% in the last year. It's got a lot of momentum and a lot of that has to do with the printed circuit boards they make. They're partnering with Google. Everyone knows about the capex coming from Google. So curious what you think of TTM here at 150.

[Jim Cramer]

That's another one of these stocks that is part of the great change in compute and you're absolutely right. It's a good one. I want to go to Cordell in Ohio. Cordell.

[Caller/Guest]

Hey Jim, I'm calling in upon Bill Ackman News ipo. What do you think about ps?

[Jim Cramer]

Too early for me to tell. I mean obviously the IPO itself did not price well but we have to see. I want to see a couple quarters and then get a sense of what's really going on. And that ladies and gentlemen is the conclusion of the Lightning Round.

[Podcast Host/Announcer]

The Lightning round is sponsored by Charles Schwab.

[Jim Cramer]

Last week we got a terrific quarter from Federal Realty, the real estate investment trust that owns high end retail and mixed use properties mainly in rich suburbs. While there are parts of the economy that are feeling some stress right now. Look, if you're Lever to affluent consumers. I mean you are just doing great. So let's take a closer look with Don Wood. He's the presidency of Federal Realty Investment Trust to learn more. Mr. Wood, welcome back to Money.

[Don Wood]

Jim, thanks for having me again. Great to be here, ma'.

[Caller/Guest]

Am.

[Jim Cramer]

It's great to see you. And Don, 52 week high, but still yield about 4%. A lot of people would say, wait a second, a shopping center economy slowing down, it can't be doing all that well. Well, you're proven them wrong. As a matter of fact, this year has been pretty incredible so far. Hasn't has Jim.

[Don Wood]

You know, and we've been doing this together, you know, a very long time. And it is economies like this that we thrive in. You know, when you talk about, and it's an overused term to some extent, the K shaped economy. But, but we serve the, you know, the upper part of that K and in times that are a little bit more uncertain, I mean the affluent customer, and it's not only what they make, it's their, it's their net worth and their wealth buildup that that allows them to continue to buy what they want. We're not the retailer, we're just, we're the real estate company. But it's great real estate and we've got a great selection of tenants. So it's a good time to be. A good time to be us.

[Jim Cramer]

Well, I'll tell you, we spent a lot of time today with Andy Jassy from Amazon. And you would think that people don't like to go out anymore because they love the convenience. But what you say in your call and what you've told me over and over again is that it's actually different. People would actually like to live next to where they shop and that that breeds some of the greatest success you've had.

[Don Wood]

Yeah. You know, there is something. Covid did us a big favor, frankly. I mean there's so many impacts of it, but it did the country such a big favor from the standpoint of getting outside understanding socialization, enjoying both eating out, shopping out, being part of the community. The community is really important. So our real estate is all centered around places that are fully amenitized so that you do have choices of not one or two places to eat, but 10 or 11 places to eat, of 20 or 30 places to buy clothing and be entertained. So it is that mix of tenancy in the right places with the right affluence that at times like this in particular thrives.

[Jim Cramer]

Now, I mean the best example I think of how special your places are when you talk about San Jose, 35% occupancy downtown, but your numbers are just amazing just a few miles away. What is so special about what your places are that you could have that kind of dichotomy?

[Don Wood]

It's, it's, it's the place to be. I don't, I don't know how to say it in a, in a better way other, other than if I could get you there. And I know you're in Seattle today, but one of these days I'm going to get you to Santana Row in, down in San Jose, California. It feels great. It's where the community comes together. It's got hotel, it's got office, it's got residential. It is your total community. It's a great place to spend time and to spend money and it's now over 20 years old from us and continues to get better and better each year. And we've got a lot more going on in there, including a residential project that is under development, under construction right now for another 200 and some odd units there. It's, it's a great place to live in addition to shop and eat.

[Jim Cramer]

Well, I got to tell you, keep getting better and better and the stock is still very cheap and done during the tough times. It don't cut the dividend? No. He kept raising the dividend even though the analyst said he shouldn't. Congratulations, Don, on all your success.

[Don Wood]

Jen. So 1967 was a long time ago and 1967 was the first year that

[Jim Cramer]

we raised the dividend.

[Don Wood]

Haven't stopped since, so I love it.

[Jim Cramer]

Well, a remarkable record. Don Wood, President CEO of Federal Realty Trust frt. I like to say there's always a more market somewhere at Palmerstar to find it. Just for you right here on Mad Monday. I'm Jim Cramer. See you tomorrow.

[Jim Cramer 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 Men are struggling

[Dr. Guy Winch]

with their mental health at some of the highest rates we've ever seen, but most aren't getting the support they need, and that needs to change. I'm Dr. Guy Winch, your host for season three of the Visibility Gap, presented by Cigna Healthcare. This season, we're focusing on men's mental health, bringing together real stories and expert insight to explore the pressures men face every day and why opening up can feel so difficult. Join us for the new season wherever you stream your podcasts.