Mad Money w/ Jim Cramer 6/10/26

Summary

Mad Money w/ Jim Cramer – Episode Summary (June 10, 2026)

Overview

This episode of Mad Money with Jim Cramer dives into the current stock market’s turbulence, offering a constructive look at which stocks are holding up amid volatility and what that suggests about investor sentiment. Cramer highlights the market’s growing appetite for safety and yield, breaks down the day’s S&P 500 new highs, dissects what’s driving stock selections, and brings on 100X CEO Rob Pace for a data-driven look at consumer trends. He also examines chart-based bear case warnings, provides homework on Backblaze, and delivers rapid-fire commentary in the Lightning Round, closing with a warning about speculative fervor ahead of the SpaceX IPO.

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Key Themes and Insights

1. Market Environment: Appetite for Safety and Yield

• Market Decline Context: The episode opens with a recap of a significantly down day: Dow down 1.62%, Nasdaq down 1.98%. Jim notes, “Nobody likes a guy like me when I say that. But I have to tell you, it’s been killing me.” (03:08)
• Cramer’s Constructive Take: Despite heavy selling and volatility ("volatility is just another symptom for horrible"), Cramer opts to highlight stocks making new highs as signals of what will lead once the market improves.
• Defensive Rotation: There is a marked movement into defensive stocks and those yielding reliable dividends.

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2. Stocks Hitting New Highs: Breakdown & Analysis

Cramer walks through a list of stocks that hit new highs during the tumultuous session, noting why each is working and the bigger investing signal.

• [04:13] Applied Materials (AMAT): Capital equipment supplier thriving on the semiconductor shortage.
• [04:37] Citigroup: Bullish on CEO Jane Fraser’s management, calling her a member of “the pantheon” and highlighting Citi as a “turnaround” story.
• [04:57] Health Peak Properties: Healthcare REIT, “gigantic... just under 6% yield.”
• [05:13] Federal Realty: Retail REIT with “good 3.66% yield… stock went up 23%.”
• [05:22] Fortive: Industrial tech; “thought this was vertive, not fortive”; called it an “anomaly.”
• [05:38] Globe Life: Insurance with “value”, sells at 10x earnings and finished session up 2%.
• [05:56] W.W. Grainger: Industrial distributor for contractors; Cramer admits, “beyond me” why it’s hitting highs.
• [06:13] Humana: Managed care stock, benefited from recent regulatory tailwinds.
• [06:50] Johnson Controls: HVAC, ties to data center boom.
• [07:06] Cameco: (Actually a uranium producer, but Cramer refers to another REIT here.)
• [07:17] KLA: Semiconductor equipment, “too risky. KLA and Amat on the way down after we’ve...”
• [07:34] Coca-Cola: “Quintessential defensive stock,” praising growth ignited by CEO succession.

  “You can probably continue to buy Coca Cola tomorrow morning if the S and P is down. I want you to reach for Coca Cola and then just keep buying. I’m not kidding. This was quite a testament to how good the stock's doing and how great the company is.” (07:34)

• [07:52] Linde: Industrial gases (SpaceX rocket fuel supplier).
• [08:05] MetLife: Conservative insurance.
• [08:07] Monster Beverage: “One of the greatest growth stories... Defensive small juice energy drink maker going global.”
• [08:15] Principal Financial: “Another boring story. 3% yield.”
• [08:18] Simon Property Group: Mall REIT, “terrific record. Buy it.”
• [08:24] TJX Companies: Defensively positioned, value retailer. Cramer notes his personal shopping experience.
• [08:39] UnitedHealth: Managed care, CEO Steve Hemsley praised for turnaround.

  “UnitedHealth buy it. I mean, buy.” (08:54)

Key observation: The majority are REITs, insurers, and classic defensives. “This market is in flight. It doesn’t want a lot of risk.” (09:35)
Notable quote:

“If you look at this list of what was working today, all I can say is the people have spoken. They want safety, they want yield.” (09:50)

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3. Listener Calls: DraftKings, JP Morgan & the Lightning Round

[11:18 – 12:04]

• DraftKings:
  Longtime listener asks if it’s time to dump at $69 cost basis.

  “I don’t think you sell DraftKings. I actually think you buy DraftKings because there have been people waiting to buy DraftKings for years and it’s finally showing that it’s going up. Take the over.” (11:36)

[31:05 – 31:44]

• JP Morgan:
  Caller asks if $309 is too high right now.

  “I like JP Morgan. If you bought it, it’s not going to be bad... But buying anything before this deal is priced I think could be really fraught. Let’s table buying JP Morgan until after when this SpaceX deal is done...” (31:44)

Lightning Round Highlights [40:15 – 43:39]

• Transocean: No, prefers EQT and Devon, bullish on natural gas.
• Primoris Services: Hold pending clarity post-executive resignation (“We can’t make a decision until we find out which one of those two is right. So let’s do more work.”)
• AAOI (Applied Optoelectronics): No; recommends Corning instead, but overall says charts are bad, likening caution to skydiving “without a chute.”

  “Now look, the chart on Corning. The chart on all these is so bad that I can’t. It’s like...you take the shoot. I don’t need to shoot. I mean, now I want the shoot. I’ll take the shoot.” (42:35)

• BlackBerry: Sees potential, mentions upcoming technology discussion.

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4. Consumer Trends & AI Adoption with Rob Pace (100X) [14:19 – 22:38]

• AI Platforms: Claude (Anthropic) outpaces all others in intent to use, suggesting ability to raise prices.

  “A lot of people are talking about how they’re going to be able to raise the price. I have felt the product so good, I think I’d pay more. This would indicate that I wouldn’t be the only person.” (15:45)

• Consumer “Running Out of Gas”: Data flags notable drop in May; middle class now “tapped out.”

  “For the first time we’re seeing the middle class tell us they’re tapped out.” (17:37)

• Online Gambling: Low trust scores, feedback doubts “fair fight,” parallels to loss of faith in European betting platforms.
• Robotaxis: Novelty factor waning; “practical issues” (wait times etc.) hurting future intent to use.
• Netflix: Still MVP on content/value, but “less screen time” trend could signal “peak screen time” and future worries.

  “You can be best in class, but if the tide’s going out, that’s hard.” (22:10)

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5. Chartist Warnings: Bearish Market Outlook [24:19 – 32:35]

Cramer reviews bearish technical analysis from Carly Garner:

• S&P 500 & NASDAQ 100: Both show “double topping” on RSI, echoes past pre-crash patterns.
• Downside Risks: S&P 500 could fall to 6250; NASDAQ 100 as much as 50% from highs in worst-case scenarios.
• Bear Market Mechanics:

  “The market rides the UP escalator nearly all the time and then when it decides to go down, it takes the L elevator and everyone's surprised at the speed of decline.” (29:00)

• Cramer’s Stance: Not as bearish as Garner, but “plenty of trepidation”; has raised cash in trust.

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6. Stock Homework: Backblaze (BLZE) [32:35 – 39:57]

Cramer drills into Backblaze following a listener question:

• What It Is: Automated computer backup and cloud storage, positioning itself as an alternative to AWS S3, aiming at the AI boom.
• Recent Numbers: 12% revenue growth, cloud storage division +24%, moving toward profitability (but still a net loss).
• Competitive Risks: Up against cloud giants (Amazon, Microsoft, Google, Cloudflare).
• Cost Pressures: Storage hardware costs up 30% y/y, hurting margins.
• Assessment: “Solid company, just not the right time.” Advises listeners to “put a pin in it” for now.

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7. Speculation and Big IPOs (Apple, Nvidia, and SpaceX) [44:03 – 47:10]

• Capital Raising for SpaceX:
  “Don’t take the selling in the stocks of Apple or Nvidia personally. I bet most of that selling is from people who think they might get some SpaceX so they need to be able to pay for it.” (44:03)
• Speculators vs. Long-term Buyers: Warns that too many “flippers” will undermine IPOs, referencing Figma and Cerebras as cautionary tales.
• What to Watch For:

  “Ideally, what you want is a deal where the only buyers are retail investors who don’t touch it or maybe buy more at the opening, coupled with rich and big institutions who got in very early and don’t want to sell it because they promised they wouldn’t.” (46:29)

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Notable Quotes

• “Volatility is just another symptom for horrible.” (03:15)
• “This market is in flight. It doesn’t want a lot of risk.” (09:35)
• “I’m constructive, but I’m not an optimist.” (24:36)
• “Take the over. Today's new high list shows the people spoken. The market has lost its appetite for danger.” (11:36)
• “If you look at this list of what was working today, all I can say is that the people have spoken. They want safety, they want yield.” (09:50)
• “Everybody selling anything connected to the AI complex in order to raise money to participate in the SpaceX and Anthropic and OpenAI deals." (38:38)
• “The market rides the UP escalator nearly all the time and then when it decides to go down, it takes the L elevator and everyone's surprised at the speed of decline.” (29:00)

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Useful Timestamps

• Market setup & S&P 500 new highs breakdown: [01:13–09:50]
• Defensive/yield stocks discussion: [07:34–09:50]
• DraftKings call: [11:18–12:04]
• Interview with Rob Pace (100X): [14:19–22:38]
• Bear case and technicals with Carly Garner: [24:19–32:35]
• Backblaze homework deep dive: [32:35–39:57]
• Lightning Round: [40:15–43:39]
• Apple, Nvidia & SpaceX IPO speculation: [44:03–47:10]

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Overall Tone

The episode is frank and cautionary but aims for constructive analysis. Cramer's energy is reliably high, with moments of self-deprecation, direct advice, and witty asides—even in a tough market stretch. He distances himself from outright pessimism, but repeatedly stresses risk reduction and a “wait and see” approach for risk assets.

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Final Takeaways

• Investors are fleeing risk and crave safety, yield, and defensive names.
• Cramer is “raising cash,” wary of speculative excess tied to tech IPOs.
• Historic boom-bust patterns are flashing warning lights.
• Data shows consumers and gamblers are growing weary, and even beloved tech darlings can be sources of cash in the hunt for the next big IPO play.
• Homework: Steer clear of chasing hot AI/cloud stocks until the dust settles around upcoming megadeals like SpaceX.

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This summary captures the key narratives, actionable advice, and Cramer’s signature style from the June 10, 2026 episode for listeners seeking clarity in a volatile stock market.

Transcript

[Venture Global Representative]

Never bet against American Grit or American Energy through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.

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[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.

[Caller/Guest]

Mad Money starts now. Hey, I'm Kramer.

[Jim Cramer]

Welcome to Mad Money. Welcome to Cramerica. Other people, my friends, I'm just trying to save you money. My job is not just to entertain. Very little of that tonight. Mostly education. Call me 1-800-743-CNB. Tweet me Jim Cramer. There's something happen here and yes, what it is ain't exactly clear. But I'll tell you this, I don't like going back. You can see in the averages, Dow seeking 953 points. This would be losing 1.62%. Nasdaq tumbling 1.98%. That was easy. That's why I want to walk you through the stocks that actually made it onto the SB 500 exalted new high list at some point during today's action to go over what people are actually still willing to buy in an increasingly tough tape. Top being a cinema for horrible because I ever notice when people say volatility, that's just another symptom for horrible. I want to be constructive about what's going on right now. When everyone finally wants to dwell on what's going wrong now they want to tell you. I hope you think I told you earlier because I did. Nobody likes a guy like me when I say that. But I have to tell you, it's been killing me. You know, that's why I've communicated. She remember, we have all sorts of crazy inputs. We got that inflation number. I thought today's was surprisingly soft. Others thought it was alarming. Enough alarming up to trigger rate hikes. We have the on again off again war with Iran and We've got brokers trying to line up buyers for Space X with the takers having to sell lots of their marginal holdings like gold or Bitcoin in order to raise money. The speculators, they don't. Speculators. That's why I want to do something that's different. I want to study what people still want in this miserable environment. So when things get better, we know what they're going to go for. So what managed to hit the new high list at one point today or another, in spite of the very tough backdrop? Yes, I'm being constructive even with Oracle down 6.6% after the close of the market. First is one that's typical of this market, at least until this week. It's Applied Materials. We had them on recently. We know there's a huge semiconductor shortage, especially for chips that handled storage and memory. That means we need more semiconductor manufacturing equipment from Applied Materials. We had CEO Gary Dickerson on recently. He's well aware of his company's importance in the food chain. That tells me, you know what things clear up. I'll go for a matt next. Feels like a bit of an anomaly, frankly. I'm talking about Citigroup. Now. I am a believer in the great man or great woman theory of management. And CEO Jane Frazier certainly belongs in the pantheon. She's cut costs, rationalized the bank and made Citi a perennial pick of the litter. The the stock made a new intraday high, even if it closed in the red. Very bullish. One to write down, one to go. Back to third. Here we go into the new World Health Peak Properties, which is a gigantic real estate investment trust. Specializes in health care facilities like outpatient medical buildings and continuing care retirement opportunities. Stock yields just under 6%. I guess that's the good calling card.

[Caller/Guest]

Next is federal.

[Jim Cramer]

Really. You know, I've introduced this company to you probably maybe 18 years ago. At the terrific shopping center REIT, Don Wood, the longtime CEO, has steered the company toward mixed use in shopping centers that could be a magnet for tenants. It's got that good 3.66% yield, which I'll tell you is safe. It used to be higher. What happened? Well, because the stock went up 23%. Fifth is one you may not know. Fortive. It's an industrial technology company known for precision instruments that was spun off by the now ne' er do well Danaher a decade ago. And since then it's nothing special, frankly. Coping by surprise then I thought that this was when I saw a new high. Said maybe it's vertive not fortive. But no, it was fortive, not vertive. Next we go back to sleep because the next one is a financial services company called Globe Life which sells supplemental health insurance and life insurance products used to be known as Torchmark stock sells for 10 times earnings. Globe Life represents what I call value. That's why the stock finished session up 2% despite the terrible tape. Another one maybe to write down. I don't know, just one. The note. How about that? Next is an odd one. W.W. granger, industrial distributor of all sorts of prosaic mission equipment that I've got to tell contractors need this stuff. They go right there. This one's beyond me. I mean should it hitting. It should be hitting a high. Maybe good housing data, maybe some big retailers going to try to buy them. I couldn't figure that one out. Then back to defense. Humana, the giant health insurer got a cut for a huge break from the Trump administration not that long ago when it lifted Medicare Advantage premiums. Unexpected gift for Humana. For 2027 those reimbursements look even better. This is a textbook safety stock.

[Caller/Guest]

Then we spring back to the data

[Jim Cramer]

center again, this time with Johnson Controls. Heating, ventilation, air conditioning. A lot of those companies are still doing well. It makes a host of things for the data cent. That's only the second data center play on the list and a lot of data center stocks today.

[Caller/Listener]

Awful.

[Jim Cramer]

Cameco clocks in next. And now we're talking about a REIT that owns actual strip malls as well as some mixed use properties. Yields 4%. Very defensive. Then we go back to the semiconductor space. Here it is, kla. That's the second one too risky. KLA and Amat on the way down after we've. Well, after we bottom. How about that? Now get this, this is one. This is what I'm talking. I'm trying to see. I got to get this point through because this is not what we usually do here. But sometimes the market's bad. You want to do that? Coca Cola. OK now I don't drink Coca Cola. I don't drink soft. I can't even drink the stuff it makes. I can't. I mean like it's like I can. I mean it's like it's a science experiment now for me. But it was pushed down hard. It's been going down and then since this market got bad, it has been nothing but net. It rallied nearly 3% today under the previous James Quincy, whom I love. The company reignited his growth. His successor, Enrique Braun, he's Continuing the ignition. This is a quintessential defensive stock. New high. You know what? You can probably continue to buy Coca Cola tomorrow morning if the S and P is down. I want you to reach for Coca Cola and then just keep buying. I'm not kidding. This was quite a testament to how good the stock's doing and how great the company is. You have to go down the list to find a stock that we own for the Chapel Trust. And I found one. It's called Lindy. And even not only made a new intraday high because it gave up its gains in the afternoon. This is an industrial gas distributors performed nicely. Why? Okay, because it makes rocket fuel for Space X. Thank you Space X for everything. Then there's MetLife. Solid conservative run insurance company invested in the right things. When I wrote how to make money in any market I studied the next stock called Monster Beverage. Which is one of the greatest growth stories of all time. Since its inception as Hanson Natural at the end of 1985, this stock's put in some of the most incredible gains ever. Defensive small juice energy drink maker going global. It works. Buy it.

[Caller/Guest]

Buy it.

[Jim Cramer]

Into the tsunami. It'll work. It will. Next is Principal Financial. Another boring story. 3% yield. Next is Simon Property Group. The late great David Simon put together the best collection of shopping malls in America. The stock now yields 4.15%. Terrific record. Buy it. What else? Okay, we own TJX for the travel Trust and it's ideal place to shop for value held up very nicely today. Not dollar stores but a pack of three pair of underwear that so much cheaper than where they got it. I love that every time I go there I always find the one thing I'm looking for. Like this belt. And then I finally have to add things that I don't really need. Some of my throw away when I get home because I'm such a jerk.

[Caller/Guest]

All right, finally just telling like it is.

[Jim Cramer]

Looking at the staff.

[Caller/Guest]

Finally we have.

[Jim Cramer]

I was a jerk today. Believe me, there's things that just upset me. Finally we have UnitedHealth. It's another managed care play that's up for the same reason as Humana. The stock pulled back this afternoon, but the legendary CEO Steve Hemsley's back and he's so good. Brutal stint of bad management before he got there.

[Caller/Guest]

He's.

[Jim Cramer]

He's turning it around. UnitedHealth buy it. I mean by.

[Caller/Guest]

Am I being good about this?

[Jim Cramer]

No. My whole life is like this. I remember buying UnitedHealth in 1988 and crushing it. Anyway, so let's look at what we have. These stocks have made new highs at some point. First we have five real estate investments to trust. What does that tell you? Five REITs, defensive as they come. Then we have five insurers. Those are built to last no matter what the environment. Three classic defensive stocks. Coca Cola, Monster Beverage, and yes, I'll call tjacks defensive. Yeah, I like those. Okay, we have a turnaround. Bank City, 2 Semiconductor capital equipment companies. Those are bought after Space X Lindy, Industrial Gas. Thank you. Rockets, along with parts wholesaler. Don't know why. And Industrial Precision Instruments company. Don't care. But those are outliers. Most of the names on the list are slowdown stocks. Slowdown stocks. You know what that says to me? This market is in flight. It doesn't want a lot of risk. I was listening former Goldman Sachs kingpin Gary Cohn today on Squawk on the street, he was saying that we had Fang and then we had the 71. Know what was next? I told him, boring is next. Boring. Yield. That's right. Yield. The bottom line, if you look at this list of what was working today, all I can say is that the people have spoken. They want safety, they want yield. And maybe they're just sick and tired of the data center and the fast growers and that now grow more slowly and represent too much risk because we're out of money. In short, this is a market that's lost its appetite for danger and it's lost its money. And I, for one, as a manager of a travel trust, am thrilled to move on. I got to go to my home state. I'm so down. I got to go to Mark in New Jersey.

[Caller/Listener]

Mark.

We are Mark.

[Caller/Guest]

I am trying, you know, trying to keep my head above water. Trying to keep my head above water.

[Caller/Listener]

I'm a longtime fan, longtime listener, club member. Read all your books. You are the God of financing.

[Jim Cramer]

I have to say, you're nice.

[Caller/Guest]

I don't feel like it today, feet of clay, but go ahead.

[Jim Cramer]

I'm sorry.

[Caller/Listener]

You made my retirement so much more enjoyable. You are. You take. You take responsibility on the rare times you make a mistake. And you've been there for us and you've been a great mentor and teacher.

[Caller/Guest]

Thank you.

[Jim Cramer]

You know, you get down on yourself. I don't like being negative.

[Caller/Guest]

And then it comes out like it's negative. And I'm like, trying to figure out, should I have the second bagel? I'll eat the second bagel. Next thing I know, I'm fat.

[Jim Cramer]

So what do you have for me.

[Caller/Listener]

Hey, I got a question for you on DraftKing. I know they had a couple of good days here and I've got a cost basis on it for like about 69 bucks I think. So is it time to dump it

[Caller/Guest]

or you think this is, this is just a great, this finally has momentum.

[Jim Cramer]

So what we do is there are people all over the world, Mark right

[Caller/Guest]

now are saying, you know, I've been staying away from that DraftKings forever. Suddenly it's step by step, inch by inch, it's going higher, gone, it's going up and not without me. And that's what's going to happen. I don't think you sell DraftKings. I actually think you buy DraftKings because there have been people waiting to buy DraftKings for years and it's finally showing that it's going up. Take the over. Today's new high list shows the people spoken. The market has lost its appetite for danger. All my money tonight with inflation hitting

[Jim Cramer]

a three year, how is the consumer holding up? I'm going to get some color from

[Caller/Guest]

our friend rob pace of 100x.

[Jim Cramer]

He's got good stuff tonight then is this market run up too far? Go off the charts and it's just doomsday.

[Caller/Guest]

And I feel really bad about it. And AI and storage stocks are all the rage right now.

[Jim Cramer]

So I'm taking a closer look at a little company called Backblaze.

[Caller/Guest]

Yeah, it's time. Is it time for Backblaze?

[Jim Cramer]

I don't know.

[Caller/Guest]

I forgot to put the sun, I couldn't put the suntan lotion on. I got the back.

[Jim Cramer]

Blaze. Stay with Kramer.

[Caller/Guest]

Foreign.

[Show Announcer]

Don't miss a second of Mad money. Follow Im Kramer on X. Have a question. Tweet Kramer. Hashtag mad mentions. Send Jim an email to madmoneycnbc.com or give us a call at 1-800-743, CNBC. Miss something? Head to madmoney.cnbc.com

[Venture Global Representative]

never bet against American Grit or American Energy through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.

[Discover Card Representative]

It's smart to always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover, you can get this. Discover automatically matches all the cash back you've earned at the End of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show, see [e-mail] Credit Card Introducing FidelityTrader plus

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[Jim Cramer]

You know me, I'm always looking for an edge. Some kind of opportunity to learn something is not yet fully baked into the stock market. That's why for the past couple of years, I've been working with the data and insights firm that I love. It's called 100x to help spot interesting new trends that I think can help you make money. 100x polls consumers, but they have an unusual methodology. They don't ask about past purchases and extrapolate forward. They just ask people about their purchase intent, what they intend to buy more of, what they intend to buy less of. And guess what? It works. Let's check in with Rob Pace. He's the founder and CEO of Hundred X who's brought us some really interesting data on the leading AI platforms that we talk a lot about, among other things. Mr. Pace, welcome back to bed. Money.

[Rob Pace]

Thank you.

[Jim Cramer]

Okay, so Rob, I'm looking at a chart that is Claude and Chachi beat and the, well, let's call it the coming in last grock. And what I see is a love for Claude that seems unmatched versus anything you've shown me.

[Rob Pace]

Yes, you're right. It's extraordinary. So this number of 40% of people who currently using it saying they're going to use it more, that's 46% people. 46% who currently use it, they can use it more. Only 6% less. Jim. The second highest score we have across thousands of brands is 17 versus.

[Jim Cramer]

Come on.

[Rob Pace]

And that's actually Ray Bans Meta.

[Caller/Guest]

Oh, I like that.

[Rob Pace]

Okay, so an average, an average brand has a 1:1% more versus less. This is 40.

[Jim Cramer]

Well, you know what that says to me? A lot of people are talking about how they're going to be able to raise the price. I have felt the product so good, I think I'd pay more. This would indicate that I wouldn't be the only person. That's the kind of indication where if someone is at that company, wouldn't they be saying, you know what, maybe we're not charging enough.

[Rob Pace]

Yeah, the value scores are great, right? The value score as we've talked about, you know, and so I think you're right. Now, I will say that they're going to have to have very high IQ because you can go from darling to pariah if you get too aggressive. But the data would say they could raise price.

[Jim Cramer]

All right? And that is anthropic people, which you know, I've been saying over and again. That's the deal I want you in on. Look, space X is fine if you want to do it for keepsake, open air. I'm worried. But that's the one you want, by the way, open. I didn't look all that bad in that in the last chart. Just right.

[Rob Pace]

You're exactly right. They're 10% would put them in the top 10% of all brands.

[Jim Cramer]

Now, I want to talk about something that has become politically charged and it needs not be. And you're going to help me with this. I've been saying that there's a group of people who had been doing okay and were pretty much going along, getting along in this economy and now they've stalled. And they're not just the underclass. There's this group of people who could go either way and they're going away, which says they're not happy or they're very worried. So let's look at a chart about the US Consumer. I'm going to use the phrase running out of gas. It's possible, is.

[Rob Pace]

It is. Because if you look at our May data, this is one of the biggest drops we've seen over the last few years. And as you know, I've been on your show saying the consumer's resilient. The consumer's resilient.

[Caller/Listener]

Right.

[Jim Cramer]

Everybody here at this level, let's use my back here. We're saying, you know what, we're going to go in recession. And you came on, you said, you know, what surprising strength, and I went with your view. I have not talked with you since then, but my data of the different retailers says the same thing.

[Rob Pace]

Yeah, the caution flag is out. And for the first time we're seeing the middle class tell us they're tapped out.

[Jim Cramer]

So what do you think? Was it gasoline? Was it just a sense that things have gotten overwhelming in the news?

[Rob Pace]

Yeah, it's all the above what we have found. And these numbers are very striking. What we found is almost there's this point where people just say enough.

[Jim Cramer]

Right.

[Rob Pace]

We saw it with the lower income consumer. Just to give you one data point, Casey's who had a great, great quarter, their favorability on gas prices are down 15%. So the consumer's Buying. But a lot of that, A lot of that spending is going to see.

[Jim Cramer]

It's interesting because I was recommending cases very hard because I think they represent great value and Cracker Barrel, too. At least they didn't blow up. But the TGX is doing well. That's good value, but that's not what we're looking for. We're looking for a consumer that isn't thinking about value as much as thinking about. Well, I like that. That seems to be going the way of what I don't want to see.

[Rob Pace]

That's right.

[Jim Cramer]

Wow. Okay. Now, a lot of people got very excited about predictive. These kind of predictive sites and online gambling. I know the predictive guys benefited, but being able to be in California, Texas and Florida and the gaming site, I swear to God, your charts are showing exactly what I am hearing from my friends.

[Caller/Guest]

I keep losing.

[Jim Cramer]

Isn't this a chart of people who have been losing at gambling?

[Rob Pace]

Yes. Now, in fairness, some of it's the economy.

[Jim Cramer]

Okay, Fair, that's right. Because if you lose $50 when the economy is not that good, you're more.

[Rob Pace]

And media and entertainment is the area that we're seeing the weakest. But where we see this playing out, Jim, is the lines and odds feedback, which says that the. The participants are saying, maybe this isn't as fair a fight as I thought it was.

[Jim Cramer]

Wow. Well, hey, what's interesting about that is I know that the predictive market and the people I picked, DraftKings, the predictive markets used to dominate Europe and they went away. People felt that it was rigged. They felt that you couldn't win. I'm wondering if we're not seeing the same phenomena here.

[Rob Pace]

Yeah. Our trust scores are very low for the. For the predictive market.

[Jim Cramer]

And you know, explain to me a trust. I mean, in other words, there will be people who say, I think that that's fair and this one's not.

[Rob Pace]

Yeah. So you go through and you say simplistically, is it, do I trust them? Do they not? And those scores are negative, meaning more people are leery than positive.

[Jim Cramer]

I already running one of those companies, I'd be very concerned.

[Rob Pace]

Yeah, they've got to address it.

[Jim Cramer]

They have to address it. Now, I happen to love the Waymo. The Robotaxi, because it's a novelty.

[Rob Pace]

Right.

[Jim Cramer]

Is it wearing off A little bit.

[Rob Pace]

So what's. As you know, there was a big pop. There was a wow factor. They got over the safety issue. People got comfortable. But actually, this is all of the robotaxis here in Terms of future demand. This is Uber and Lyft, which are stable. What's going on is now that you're in them, there are some practical issues of can I get a driver? What are the weight quote driver, what are the wait times? And you know, if I have problems with my route, it almost reminds me of EVs where there was this huge enthusiasm, but then like range anxiety kind of hurt them. And it's almost the same thing we're seeing here in the robo space.

[Jim Cramer]

I think that I'm not there yet in terms of the familiarity of it. My friend Joanna Sterner wrote a book called I am Not a Robot. Had it just like, enough. I don't like, you know, it's too novel. I'm done with it, you know, I don't need it anymore. Too novel. Now there's something a lot of chorus are asking, what is the matter with Netflix? And I keep coming back and I'm very glib and way too glib than I should be saying, you know, everybody loves Netflix. Now, this is a chart of basically people saying, jim, not everybody.

[Rob Pace]

Yeah. So let me try to summarize what we're seeing.

[Jim Cramer]

This was hard. So I don't mean to put you on the spot.

[Rob Pace]

No, no, no. This. So, first of all, Netflix is an MVP company. More value for the price because the content is worth it.

[Jim Cramer]

That's why it gets the high price series vulnerable.

[Rob Pace]

Now, what. What we're seeing, and we're not seeing cannibalization from YouTube, which I always worry about, but here's what we are seeing. Seeing people overall saying, I'm going to have less screen time. And that's a. If this is peak screen time, that has a lot of implications.

[Jim Cramer]

That's what we learned from Reed Hastings. He said as long as there's screen time and then. And there's a ton of it, they're going to win. If there's suddenly a decrease in, in. In that kind of time, then that's not good, period. You can't. It's irrefutable.

[Rob Pace]

Yeah, you can be best in class, but if the tide's going out, that's hard.

[Jim Cramer]

Wow. Well, Rob, I gotta tell you, what you do, I love because we all have intuition, and intuition can be right a lot. I like Empirical, which is right almost all the time, which is exactly the way I feel when I talk to you. Thank you, Rob. That's Rob Pace Pattern, CEO of 100X. Hope you enjoyed as much as I did, and I hope you did too. Rob. May I be back after the break.

[Show Announcer]

Coming up, are the lights blinking red on the stock market right now? Kramer's looking to the past and checking the charts to find out next.

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[Jim Cramer]

Well, I hate talking about this stuff like this, but, you know, things have gotten really ugly real fast. Come, let's own that. Right? And if history is any guide, well, it could get a whole lot uglier. And that's why I want to go off the charts, show you a little downside here. With the help of Carly Garner, brilliant technician who is senior commodity market strategist, broker at Carly Trading and author of the Carly Perspective newsletter. She thinks we've seen this movie before. I've seen the movie too, and you're probably not going to like where it ends. All right, I'm putting it out there first. Just take a look at the monthly chart of the SB 500 because this shows you how the market was getting out of hand before the recent pullback. This is all the problems I kept telling you about. For Garner, it paints a picture of severe impatience on the part of the bulls. The dips got smaller, the selling waves got short. The subsequent post dip rallies, they became steeper. You know that we've been talking about this endlessly. In her view, the story of this market going all the way back to 2009 is it. It's a tale of assets being propped up by the government to intervention mainly excess of money printing for the Federal Reserve. For a decade, that worked out fine for both the economy and the stock market. Then the pandemic, it got a wave of supply disruptions paired with a fresh round of government stimulus. Since then, we've had persistent inflation. As Garner sees it, the powerful rallies in the stock market are just another form of asset inflation that's a little more bearish than I am. But again, tell like it is. The problem is sooner or later, moves like this tend to fall apart. That's right, they fall apart. Now, when you look at the relative strength index right down here, that's a key momentum indicator. It reached overbought territory where Garner points out, and this is one I never thought about, but it's a double top. Okay, we saw this before the financial crisis result for the interest rate debacle 2018. I hate to look at it. And we saw it before the market pulled back after the Fed started raising rates in 2022. All these proceeded 21 to 57% declines. The S&P 500. Garner's worried that we can be looking at repeat now, given how much new stock is about to hit the stock market. I cannot say I blame her. I know I have shared these same thoughts with you. I've shared my misgivings with you now for days, including club members who probably think, oh, my God, what happened to Kramer? He was such an optimist. I'm constructive, but I'm not an optimist. When you zoom in on the daily chart of the SB500 still is pretty darn overextended. Garner points out the snapback rally from March lows has created a widening trading channel. You can see that with a ceiling of resistance at 7651 and a floor of support. Now get this, a whopping 1400 points lower at 6 to 5. Oh, that's the floor of support. She says the bulls need prices to hold above 7250, which is the old ceiling of resistance that the SB broke through earlier this month. Unfortunately, if the market can't hold 70 to 50, there aren't any reliable support levels. Levels to get back to the bottom of the range, currently at 6250. We know this 6800 level lured modest buying in 2025, so it might slow down the selling. But Garner thinks it wouldn't be enough to stem the tide. No, not at all. At least not on its own. Meanwhile, the Strength index boy made a bear massive bearish divergence. Here, look at this. Very important. When the SB made a new high, this thing started breaking down and now it's plummeting. That's not supposed to happen. Okay, that's just bad. All right, we're not going to miss words. Next up, how about the tech heavy NASDAQ 100? Let's start with the monthly chart where you can see the sheer scale of the tech rally. One that reminds Garner of the extreme gains we saw the during during the pandemic credible. Back then The NASDAQ rallied 10,000 points in less than two years. Then after the savage beat down in 2022, this index went right back to rally and climbing more than 20,000 in less than four years. Like the S and P, the relative strength index for the NASDAQ 100 shows a double topping pattern in overbought territory. Something that's been troublesome for the bulls in the past. This is exactly what we saw before tech peaked in late 2021, leading to a more than 30% pullback in the index. Without the money supply shock of the pandemic and the boom. Now Garner thinks that the NASDAQ 100 might be 50% lower than where it is right now, 5005. And that's the blue line. Okay, so the blue bridger. She's not calling for such a deep decline but after the recent run she says that this moment starting to feel similar to the run. I'm just the financial crisis. I wish she hadn't said that, but I'm reading it all right. Back then we saw a tremendous run up in the real in real estate in the stock market fueled by unusually low interest rates and careless mortgage lending as the brokers were just there and banks were just selling their loans to brokers so they could package them up into mortgage backed securities. Remember that nonsense. I noticed there was something wrong back then with the bond market in summer 2007. But a lot of people thought the good times would continue to roll even as the Federal Reserve had raised interest rates dramatically in 2005. 2006 that was basically a countdown to doomsday as so many people had taken out two year teaser mortgages with adjustable rates and they wouldn't be able to pay them off once the two year period expired. In the end the whole thing blew up and the stock market got annihilated, got almost taking the entire country with it. But Garner points out that Even in early 2008 the economy still looked pretty good. The unemployment rate was around 5%, which is what we used to consider low. And we had the GDP DP near growth, near 6, next 2%. So GDP to put 5. Then everything fell apart in a matter of months. Wow. Okay, so you remember all this. I don't have to go into the. Garner is not saying that the current moment is a perfect analog for the future. It's absolutely not. But you can draw parallels between declines because in her view, the market rides the UP escalator nearly all the time and then when it decides to go down, it takes the L elevator and everyone's surprised at the speed of decline. Remember, I always talk about the velocity, the velocity on the way down. Why do I say got to avoid the parabolas? The velocity of the way down a powerful parabola is even faster than it takes to go that way. Almost like you can't even see it. Here's the bottom line. The charts as interpreted by Carly Garner suggest that the market might be finally cooling off after moldy or speculative mania. She can't tell you when the mania will truly end, but she's coming, confident it's there. And when things get ugly, the losses can add up real fast. My view, I am not as negative as Carly, but I have plenty of trepidation here and have raised my trust cash position to the highest level in years. And I have to tell you, with SpaceX, Anthropic and OpenAI hoping to raise insane amounts of money via their IPOs, the buyers have to raise their cash somewhere. And that somewhere is right here in the stock market. How about Christine in Connecticut, please? Kristen.

[Caller Kristen]

Hi, Jim. Thanks so much for taking my call. And thank you so much for sharing your knowledge and your insight and just thank you. And smarter.

[Jim Cramer]

I'll tell you, sometimes, Chris, it's so hard. Like right now, it's so hard because the market's not good and people are losing money and it's just. I just don't like it. But all I can do is tell people exactly what I feel and it's been negative. What can I say? How can I help you?

[Caller Kristen]

So my question is about JP Morgan. About a week or so ago was at 296 and then it's gone up a bit and now it's trading at 309. And I was just wondering if you think now is a good time to buy or do you think it's too high?

[Jim Cramer]

Okay, I don't want you to buy it now. Look, let me be very clear. I like J.P. morgan. If you bought it, it's not going to be bad. It'll be fine. It's a good situation. But buying anything before this deal is priced I think could be really fraught. Let's table buying JP Morgan until after when this SpaceX deal is done and then we can make a much more informed decision. And thank you for the kind comments. All right. The charges interpreted by Carly Garner suggests the market may be starting to cool off after years of speculative mania. Now, I'm not as quite lean, I'm not as negative, but I wanted to present it to you. I wanted to present the real Bear case. How about that? And you just saw it. Much more Moneyhead. Including my deep dive into the little known cloud storage name Backblaze that you asked me about. Then this SpaceX IPO is causing a lot of speculators to pop out of the woodwork and I'm going to explain why it worries me and how the rest of the market could be impacted.

[Caller/Guest]

Of course.

[Jim Cramer]

All your calls. Rapid Fire, Tonight's system the lightning round. So stay with Craig. Last week Mariel in my home state of New Jersey asked me about Backblaze. It's a cloud storage platform and because I'm not too familiar with this one, I said, you know what I got me circle back to some homework here. This is a tiny company, right? It does not it. What it does is very difficult to explain to you. Automated computer backups and cloud storage. Now that may not sound all that interesting, but sometimes the boring plumbing is what makes you the most money. So let's stay focused. Focus. There is a reason the Stock's up nearly 60% year to date, even as it's pulled back over 20% from recent highs that last Tuesday. And this may be one of the stocks that you can buy knowing when SpaceX is done that nothing happened to it. That was bad. What made people so excited about to begin with. But it's not the mature, slow growing computer backup business. It's the cloud data storage division. This is an enterprise grade object storage platform. It's a legitimate alternative to Amazon's S3 storage service and it's increasingly tied to AI workloads. For years the message was the Backblaze was a cheap, easy to use alternative to Amazon S3. But more recently, their selling point is data mobility. All sorts of companies want to be able to move their data between clouds that rely on different chips and they don't want to be hostage to any given hyperscaler. That's always been the rap. You don't say, I don't want to be just All Amazon Backblaze acts as a storage layer between the builder and the GPU provider. AI builders can store data in Backblaze, avoid getting charged a fortune and then stream it to Neo Clouds or move it to partners without paying crazy hyperscale fees. And they've got some major customers. From enterprise media companies to university research labs to my beloved Philadelphia Eagles. Their media team has used Backblaze to store and manage hundreds of terabytes of video footage from practices, games and highlights. Maybe that's why I like their site so much. They got so much good video and look for such a tiny company. Backblaze is already starting to put up some pretty impressive numbers. In the latest quarter they put up 12% revenue growth. But a cloud storage division up 24%. The boring computer backup is basically flat. I told you that's not why we'd be in this thing for cloud storage. It's now 57% of total revenue and it's growing much, much faster. How about profit? Profitability on the most urgent gap basis, the company still losing money, but its net loss came in at just $6.1 million for the first quarter, a bit better than expected. And its adjusted net income was 2.7 million. That's where you take some stuff out that makes it look a little better, frankly. Cash flow from operations was plus 3.4 million. Free cash flow was negative 1.8 million. But management still expects that to be positive for the full year. That's we have to watch for. So we're talking about a relatively small time money loser that's moving toward profitability. Meanwhile, they're winning lots of new business. That place is not like some sort of science project name. Like I mentioned so often, particularly the Quantum stocks. It's not like they're doing 1 million of revenue with $1 billion market cap. Management expects over a great deal of money that I'm not sure exactly. Probably like over $160 million of revenue. I think that'd be right. With positive earnings for interest, taxes to depreciation, amortization, ebitda, their full year forecast was very strong. That's in part because the company's been able to raise prices. Clearly their customers are willing to pay up. That's fantastic. In this most important black backplace put up some great AI numbers. Now this is what matters to this stock is the fulcrum. Their customer count grew 76% year over year, accounting for over one third of all new bookings. Backblaze is also making moving upmarket their annual recurring revenue from large customers grew 72% year over year. The number of customers generating more than $50,000 in annual recurring revenue increased by 51% to 187. And there's this new cloud angle I mentioned those. These are a first cloud infrastructure providers that basically read out compute as efficiently as possible. Backplay says it's engaged with most of the top neo clouds and it's signed six, seven and eight figure deals with them. According to management, the six figure and the seven figure deals could become eight figure deals over time and the eight figure deal could scale from there. As they see it, new cloud storage represents about a $14 billion opportunity for the company by 2030. Keep in mind Backblaze has a market capitalization of less than 4 to 50 million. It is very small, but in this big but I don't want to make back play sound risk free here. There's serious competition, especially in cloud object storage and I'm talking about competition like Microsoft, Amazon, Google, Cloudflare. We had them on this night and it's more outlets like Wasabi. We know that hyperscalers have nearly unlimited resources. This company doesn't. They can bundle, discount and use existing relationships to push their own storage. Backplay's argument is that the hyperscalers don't really want customer data moving freely to other clouds. They offer something that hyperscalers can't because they're only selling storage. They're not trying to get you hooked on one particular cloud platform. On top of that, this is a storage business. At a time when the cost of the storage hardware has gone through the roof, Backblaze has to buy all those hard drives that keep going. So much networking equipment going up, data center capacity. When the company reported a little over a month ago, management said equipment costs are up about 30% per year, year over year. That's a third year that's much too high, driven by components shortages and shift to faster flash storage and solid state drives for AI workloads, all of which gone up a lot in price. I think this business is much less attractive when the cost of storage hardware has gone to insane levels. So keep that in mind. It's not like I'm just flying bullet this thing. The legacy computer backup business is another risk. It's durable, but it's not growing. In fact, it's expected to expected to gradually decline over the next two years. If the cloud storage business keeps growing at a 20% clip or above, these guys can overcomp. They can compensate for that, but it's not helpful to have A sizable chunk of the company shrinking at a low to mid single digit pace. That's a big negative. My biggest worry here about black base back plays though. This is really important. It's timing. Right now, everybody selling anything connected to the air complex in order to raise money to participate in the space X and anthropic and open air deals. That's what's going on in this market. I think these deals as well as a big fundraise from Google casts a pall on the entire industry. Meanwhile, Backblaze currently sells for about three times sales and 50 times next year's earnings estimates. That's not terribly expensive, but it's certainly not cheap and compelling either. In the end, I got to say this. Despite the small market cap, Backblaze is a real company with a real business. Solid revenues, big customers, improving financials. But the bottom line, Backblaze lacks the explosive growth of the hottest names that we look at. And I think we're looking at a much tougher environment for the entire group here. Solid company, just not the right time. You know what I say put a pin in it. Yeah, they have money's back here for

[Show Announcer]

coming up. He's the fastest mind on Wall street so we're putting him to the test with your help. Bring on the lightning round next.

[Caller/Guest]

It is time Cover the light.

[Jim Cramer]

Celsius sells this week of the quarter. It's not quite my stamper and scrap

[Caller/Guest]

is going to play your planet sound and then the lightning round is over. Are you ready? Ski dads on the right one. Let's start with Chris in New Hampshire. Chris.

[Caller/Listener]

Yeah Jim. Should you more transocent?

[Jim Cramer]

No, no, no. I'll tell you, I do like EQT

[Caller/Guest]

here very much natural gas and the

[Jim Cramer]

Devon story actually makes me very excited.

[Caller/Guest]

Let's go to Claire in Tennessee.

[Caller/Listener]

Claire Jan. Oh my gosh. In the person big viewer forever and part of the club. So thanks for taking my call.

[Jim Cramer]

Of course, of course.

[Caller/Guest]

I'm glad you're here. Let's go to work. Let's go to work.

[Caller/Listener]

Listen, this is an infrastructure services company and with the AI build out these data centers are huge. I've talked about to two people who are actually working on sites and they're humongous. They're going to require a lot of energy, lots of water. Okay. So this is a company that does nuts and bolts services.

[Caller/Guest]

So far. I like everything you're saying. I like everything you're saying so far.

[Jim Cramer]

Bring it to me. Bring it to me.

[Caller/Listener]

Okay. They do everything. Construction, fabrication. The company is Primorish services.

[Jim Cramer]

And yeah, okay, so this thing got hit because an executive resigned who was loved. There's been insider buying versus executive resigned.

[Caller/Guest]

What that says to me is we can't make a decision until we find out which one of those two is right. So let's do more work. And that's what we're going to do. Because I am a slave driver.

[Jim Cramer]

I intend on ruining everyone's weekend because

[Caller/Guest]

my weekend's ruined because I'm working.

[Jim Cramer]

How about you?

[Caller/Guest]

All right, let's go to Luke and Missouri.

[Jim Cramer]

Luke.

[Caller/Guest]

Hey, Jim.

[Caller/Listener]

A big booyah from Kansas City, Missouri.

[Caller/Guest]

Fantastic town.

[Jim Cramer]

We love it. We love it.

[Caller/Guest]

Clark Hunt just thinks he's unbelievable to Andy Reid. I mean, Tammy. Let's go to Beth. That extension homes. He's worth more than all of us

[Jim Cramer]

together, except for the billionaires and the bazillionaires. Go ahead.

[Caller/Guest]

Hey, longtime fan, Jim.

[Jim Cramer]

Big first time caller and I appreciate all you do.

[Caller/Guest]

Thank you.

[Jim Cramer]

Hey, with the data center build outs going on right now, I'm considering taking a position in AAOI and wanted to get your thought. No, no, I want you.

[Caller/Guest]

If you're gonna go that way, you gotta go to Corning. Okay? Corning's got a lot better, you know.

[Jim Cramer]

Now look, the chart on Corning. The chart on all these is so

[Caller/Guest]

bad that I can't. It's like, you know, let's go. Let's go skydiving.

[Jim Cramer]

You take the shoot. I don't need to shoot.

[Caller/Guest]

I mean, now I want the shoot. I'll take the shoot.

[Jim Cramer]

You don't have to shoot.

[Caller/Guest]

That's the way I feel about it. Like some guys go without the shoot. These trucks will look like, hey, you know what? I don't need to shoot.

[Jim Cramer]

I think the shoot's important.

[Caller/Guest]

Let's go to Dwayne in New York. Dwayne. Hey, Jim. Booyah From Corning, New York. Corning. Corning. Let's buy some Corning. What do you want to buy? I want to buy BlackBerry. The people in BlackBerry want to buy Corning. The people in Corning want to buy. BlackBerry's a town in Canada, I think. All right. I love Canada.

[Jim Cramer]

I didn't mean any of that.

[Caller/Guest]

Look, BlackBerry actually is good. We've been looking at technology, believe it or not. We were actually going to do a

[Jim Cramer]

piece about why I think BlackBerry may be very interesting.

[Caller/Guest]

But if someone from Corning.

[Jim Cramer]

Come on, let's go with the home team. Small, we don't buy all at once.

[Caller/Guest]

And I like horse heads too.

[Jim Cramer]

I used to cover that area.

[Caller/Guest]

I covered the Houghton family.

[Jim Cramer]

I was at Goldman. I love Corning.

[Caller/Guest]

And that, ladies and gentlemen, concludes it of the Lightning Round.

[Show Announcer]

The Lightning Round is sponsored by Charles Schwab. Coming up, as we wrap up another busy day, Kramer has some final thoughts. Don't miss his no huddle next.

[Jim Cramer]

Whatever you do, don't take the selling in the stocks of Apple or Nvidia personally. I bet most of that selling is from people who think they might get some Space X so they need to be able to pay for it. These two stocks have become huge sources of funds for all the new deals. People feel better about taking gains than losses. For now, they're simply donors to the SpaceX cause. Understand I'm not speaking ill of either stock. The opposite. I am in explain mode here. I love Apple and Nvidia. Own them, don't trade them. I'm simply saying that this is what happens in the run up to a gigantic ipo. And you know I've been telling you to beware of this oversupply problem for months now. Apple Nvidia are readily available for sale and they they're too juicy for some of these sellers to pass up, even as a lot of the money raised by SpaceX or anthropic or Open Air will probably end up buying video equipment. Meanwhile, Apple spending next to nothing on AI because they have a deal with Alphabet and it's a great deal. The same deal that makes Google your default search engine now extends to Gemini. If you're in Bitcoin or gold, you're probably wondering how your hedges produce such horrible returns in the time of war. Maybe you are in either or both because the world's just going crazy, right? Nothing wreaks the turmoil more than this war in the Middle East. But gold and Bitcoin are going down, down, down for the same reason as in video. Lots of people own them and those people want to raise money to participate in the SpaceX deal. These golden crypto people are speculators more than they are hedgers. And I think they want to speculate on this deal too. Meaning if they get their shares, they're going to be offering them at the opening. That means they're going to flip them even as they're not supposed to. Not supposed to be allowed to. At least when I expect there'll be many more buyers and sellers because there's buyers coming in over the transom. This cohort worries me the most. The speculators aren't there for the long haul at all. They may not be there for the afternoon. Honestly if you're getting a piece of the Space X deal, you want to be told you are not getting all of your allocation. You want to get less than you asked for because that means the deal is tight and won't be a lot of flippers. If you're in for 100 shares, you only get 25 shares shares you know you're in good shape. It makes everyone hungry to buy more. If you're in 400 shares and they say, you know what, you can have an additional 25, you say, oh, if you even get your hundred, you might want to be a little concerned.

[Caller/Guest]

Speculators.

[Jim Cramer]

These people could hurt you. They're not your friends because they just want to flip this thing as soon as possible, creating too much supply, giving you a situation that stinks of Figma or Cerebras, both open to high opening way low Disaster dangerous. Ideally, what you want is a deal where the only buyers are retail investors who don't touch it or maybe buy more at the opening, coupled with rich and big institutions who got in very early and don't want to sell it because they promised they wouldn't. But this is the big but. You're going to hear a lot of chatter that there aren't enough real solid buyers and there are plenty of speculators. Trust me, you will. It's what happens. It's inevitably business seems hard to believe given this deal is reportedly four times oversubscribed. That shouldn't happen. But in reality, I accept that if SpaceX were 10 times oversubscribed, you know what? I would feel a heck of a lot better about this deal. On the way home, Alex said, as always, more market Sommer Proudfoot Just for you right here man. I'm Drew Kramer.

[Caller/Guest]

See you tomorrow.

[Jim Kramer Disclaimer Voice]

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. Cramer'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 this episode is

[Keith Lansford]

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.