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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. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Creamerica. Other people, my friends, I'm just trying to make a little bit of money. My job is not just entertain, but to do some teaching. So call me at 1-800-743- CNBC to meet you. Kramer Beautiful. Stock prices are in the eye of the beholder and to the holders of Space X, there's nothing more gorgeous than a price of $201.80 up $9.30 a day alone. That's where this stock went out on a volatile session. The Dow gained 329 points, S&P dropped.57% and the Nasdaq tumbled 1.15% with a real assault on the semiconductors, which are perhaps a source of funds to build positions in Space X. Now we've watched the levitation of a stock that's folded past some of the biggest stocks on earth, like Matter, Amazon, and at one point today Space X was on par with Microsoft, just under $3 trillion. They'll pull back after that to remain in fourth. Sure, the stock is called Space X, but it might as well be called Elon Musk. There's no way this company, which could see losses for many years, deserves such a high valuation on its own. It only gets there because it's run by Musk, who This weekend tweeted that the company might have $1 trillion in revenue by 2030 and more than 1 trillion by 2031. Now Space X really has that kind of long term sales power then it's a steal down here with with a $2.6 trillion market cap. But sometimes Musk gets ahead of himself when he's talking about the distant future. His numbers are three times the estimate of Morgan Stanley, which did plenty of due diligence for the ipo. That kind of forecast is not made lightly. In the old days, by the way, before, say, Trump's second term, the SEC wouldn't let you get away with making such rosy projections right to the deal has been sealed. But these days the regulators, I don't know, they don't seem to care. So what does it mean that the stock of SpaceX keeps charging higher? Depends on how you look at it. Let me give you a bunch of perspectives that are floating around. Then I'm going to tell you where I come down first. And perhaps least important is the actual earnings story arrived at by looking at profits of each of the parts of the company. Normally it's a matter above all else, but SpaceX is not a normal stock. So let's break it down for you. You got a communication system in Starlink that could replace almost every Internet service provider in the world. It offers a superior product for little as a third of the price. So I don't see how Starlink can be stopped. Maybe Netflix makes a bundled deal with them that could add 320 million people to its current 10 million user count, which is actually closer to 18 million if you include more than 7 million Star League mobile subscribers. Frankly, I think Starlink could end up with a billion subs just from people in rural areas with bad broadband connectivity. The whole world's going to change because of Starling. Some people think it could be worth the entire value of the company, but that's now become a stretch with the stocks move to the stratosphere. It's got a rocket business which just for scarcity value could be worth, well, I don't know. Name your price, because no one else has been able to reuse and relaunch rockets on a regular basis. It's got the old Twitter, which can be worth something if you put in the right management. Then Space X has its AI business. They have a gigantic amount of Nvidia chips that are being rented to by Anthropic and Google. Anthropic will spend at least 1.2 billion a month to rent Musk hoard. Google will pay 920 million per month and that's just from this one company. And Google makes its own chips. Also this morning SpaceX confirmed it would buy the popular AI coding platform Cursor for $60 billion in stock as agreed upon earlier. You can use Cursor as your code writing partner as a heavy hitter. Then they have Grok, it's a competitor to chat cbd Gemini Quad. Until this moment I thought the Grok also ran. I can't imagine stays that way given how much money Space X has raised, given Starlink, given all these other things. These are powerful properties all under one roof. Are they worth 2.6 trillion? Only if you use some imagination. But that's, you know, maybe an awful lot of imagination. Fortunately, nobody seems to care too much about the near or even medium term numbers. Instead most buyers looking at what Space X could be down the road. I like this. I think you could expect Musk to take over its sister company Tesla, which would put him entirely in charge of his empire. I say that because I think he'd be fed up with some of this more pesky Tesla shareholders. He'll have easy voting control over the merged entity. No more worries for Tesla's $1.5 trillion valuation plus say a 25% premium. He had a massive auto business including self driving, terrific batter business just getting started. Potentially gigantic robot business. It's the latter that I think is the most important product. And if it connects with Starlink, I believe you'll have a robot operation where they'll easily do what you want. Just like self driving cars leapfrogging China. By the way, get them on Amazon. Remember this is what could occur, not what you have seen so far. Space X might be able to send data centers into orbit, eliminate the biggest problems. Power and heat. Some take care of the energy, space take care of the cooling. The initial size could be small enterprise data center that weighs say I don't know, 2000 tons. That would still require multiple trips for SpaceX is good at putting things up into orbit regularly. And with all these new. This new cash is only going to accelerate mineral mining in space.
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I. Why not?
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Okay, I hope for a reason. Then there's the dream people are buying into now let me tell you. Now let me tell you what I think, what I see. When you buy Space X here, you're really buying Elon Musk brain. I think the cult of Musk is for real, but that's not the right way to look at it. What you need is to look at this as something different from an ordinary stock. That's how you really justify paying up for Space X. Look, maybe for some it's a keepsake. You want to say you own stock of the greatest innovator of all time. Why not? You want to be able to look back to your kids and say I bought stock for you. Must stock. You may have missed Warren Buffett and Berkshire. Alex, you missed Musk. Second, some few people really, they believe they're buying a piece of kind of like a team, you know, like, you know, the Green Bay packers have a stock. It's like that. These people are never going to sell their owners of a collectible that is growth kicker. They want to be part of Team Musk. He's letting you in with them. They're never going anywhere. Finally, some are betting on the biggest meme stock ever. Last night I saw this stock go from 190 to 213 overnight. It's an incredible move with buyers just take it and take it and take it it and take it with almost no downticks. It was deliberate overnight buying to push the stock up. The kind of sent pounds here from 50 to $200. These people have nothing but a belief that they can take a stock higher with the buying. And I'll stay up. It won't change just because the stock at the end of the day was actually only up nine bucks instead of 20 where they pushed it to. These aggressive buyers could be right. We're going to see a Russell rebalancing on Friday that will add to the stock. Just add the buyers. Then in a couple of weeks will be added to the NASDAQ 100 more buyers. Both are expected to spur huge wa of purchasing. Perhaps the people buying it now just want to get ahead of that. Now I'm sure there are plenty of dollars out there. I was out yesterday and I heard everyone from Musk is overstretched. He's going to go bankrupt. It's crazy to pony up here when there are so many other cheaper stocks to a populist argument. The Space X might be toast if we end up having two anti air presidential candidates come in 2028. But the bottom line, there have been doubters the whole way and the stocks already surged from 135 to $201.80 in a matter of days. While you're sitting here trying to justify Space X's valuation, the buyers are relentlessly pushing up right in your face. And I bet they keep going. Let's go to Sean in New York. Sean. Hey, Jim, Sean here from Rockland.
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How you doing?
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I'm doing well. Thank you for calling in. Sean, how can I help? I wanted to ask you about VRT or talk about it or give some insights to it. I'm in pretty top heavy on it. I've held it for over a year and done well with it and now I've got a bunch of long term leaps. Recent pullback. All right now verdict. We heard Dave Cody speak about it last week. Davis chairman and I can tell you that he tells a very positive story about a huge number of orders the stock has had. A bit of a setback here has come down. I have belief that many stocks look just like it and that they are going to come back. I do not think it's over. I just think that a lot of companies like Vertiv have seen their stock go down as people sell Vertiv in order to be able to have enough money to buy the king of the data center which also happens to be Space X. Let's go to Brett in California. Brett, Jim, I appreciate you bringing me
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in on the segment. Thank you.
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Of course. A quick question. Are you still hitting those early morning workouts before work? I was, yeah. I like to get up at 3:30 and I get hit for a couple of hours and I like it. My, my trainer Jim keeps me in shape. Thank you for asking. What's going on? Yeah, that's why I like, that's why I follow because I love your disciplines. I know how busy you are but. Well Jim is the one with the discipline I'm scared of. Go ahead.
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Here's my thought.
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I started adding a small position in the like late 2002 and I just want to see if I still can keep adding to it or did run too much. Is GE aerospace? I don't know if they know. I think aerospace is fantastic. You know it's we own Boeing for the Chapel Trust and GE that people disregard as a cleaner story. Larry Culp does a terrific job. I think Boeing can, can pull up but this one hit an all time high today. I want to say congratulations to you for having the courage to stick with it because it did have a big downturn. The stock did not the company and you stuck with it. Congratulations. Let's go to Ann in Indiana and hey Jim, I'm a club member. Thanks for everything. I hope you're on the call tomorrow. We got a new call. It's going to be fun. Some fireworks. What's up? Thanks. All right, so I don't know if I missed the dip in Casey's a buying opportunity. But you know you can only have so many high PE stocks, right? Yeah. You know, we really, really like Casey and sometimes I see stocks like this and that dip was made to be bought. You're so right. Let's do this. I think you buy 25 share. Let's say you want to have 50 shares. Maybe you buy 10 here and then let it come down because it is an 865 stock. And remember, when you have a stock $865 divided by 10, think of it as an $86 stock and some more when it hits $80. And thank you for joining the club. I'm counting you tomorrow. Our noon meeting. Don't miss it. Look, there will always be dollars of space X and its valuation, but that won't stop the stock from surging higher because there's multiple reasons why people love it on their money tonight. Adobe reported beaten raised quarter last week. So why is it stock still in free fall? I'm running through the numbers to find out. Then Yum Brands announced the sale of something I've wanted for ages, Pizza Hut this morning. And I got the company's top branch to break the deal down. It is a different company without PIZ Sutton. Shares of Xometry have been on a tear over the past year. Now I'm going to sit down with the CEO to learn more about the business. One of our Brian asked us to look into it. We look into what you tell us to stay with Kramer. Don't miss a second of Mad Money. Follow Im Kramer on X.
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Have a question?
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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 say you always wanted to have a backyard oasis. Here's the thing. If you get smart with your money, you can do things like that. With Empower you can start making the most out of your money so you can go out and live a little. Isn't that why we work so hard to have some fun with our money? Like treating yourself to something special or spontaneously doing something extra for a loved one. So use Empower and get good at money so you can be a little bad. Join their 20 million customers today@empower.com not an Empower client, paid or sponsored.
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when you're at work, you never know when you'll be interrupted. But with the Dell Pro powered by intel core Ultra with VPro, no matter what distracts you, your laptop won't. It's battery optimized for the way you work. With built in intelligence that quiets distractions when you need to focus. Your laptop will help keep you locked in, even when it's bring your dog to work day. Built for those who stay in the flow. The Dell Pro built for you Dell.com Dell Pro. Late last week, all anyone cared about was the SpaceX IPO, causing some huge stories fall right through the cracks. Take Adobe, the digital design e commerce software play, which reported ostensibly a strong quarter on Thursday night. Boy, see its stock plummet nearly 7% on Friday. It's puzzling. Like nearly all the enterprise software places, Adobe's been a house of pain, down more than 70% from its peak in 2021. In fact, it's down more than 40% year to date. At these levels, the stock sells for just 8.5 times this midpoint of this year's earnings forecast. That's an unfathomably low multiple for what used to be one of the most beloved names in all software. So what the heck is wrong with Adobe? Okay, a lot of this comes down to competition. At first it was competition from other software companies, Canva, Figma Shop by then, a couple of years ago, we started hearing about all these new programs from the big AI platforms, programs that have gotten very good at writing custom software. Now this is really the root of the AI displacement thesis across the entire enterprise software edifice, and that includes Adobe. Even though the company's grown in earnings at a double digit clip for five years in a row, the stock keeps drifting lower. They'll be traded at more than 50 times earnings in the late 2021 period. Now its multiples in the high single digits because people simply won't pay as much for the numbers as they used to. Lately, though, we've seen some old school software stocks starting to bounce. The IGV, which is the iShares Expanded Tech Software Sector ETF, bottomed over two months ago, and it's rallied nicely from its lows before turning cold again a couple of weeks ago Datadog mongodb workday. They've all delivered some nice rebounds in response to better than expected earnings. That's why I wondered if maybe, just maybe, Adobe might be able to turn things around when reported last week. But then, even when they delivered a beat and raised quarter, the stock still got hammered. Like I said before, the results were not the problem here. They're just not. See, Adobe reported a healthy top and bottom line beat. 13% revenue growth, 18% earnings growth. And it wasn't the formal guidance that tripped up the stock either. Dopey. They got it for $6.67 to 6. I'm sorry, 6 to 6. 7 to 6.72 billion in sales for the current quarter, well ahead of the 6.52 billion number that Wall street was looking for. So much better than expected sales. Company expects to earn $6.05, $6.10 per share. That was roughly 30 cents ahead of what the analysts wanted to see. Even better, Adobe raises full year forecast substantially. They're not talking about 12% sales growth, 16 to 70% earnings growth. That's crazy. You rarely see a stock with double digit growth trading at a single digit price earnings multiple. So the numbers were strong. And honestly, I thought Adobe told a pretty good story. On conference call to Shantan Orion, the Chairman CEO explained that rather than being hobbled by AI conference competition, companies own AI offerings are, quote, accelerating customer behavior at an unprecedented speed. And quote, yeah, Adobe has a bunch of AI products for both digital design and marketing. Their first annual meeting annual recurring revenue, the ARR, just tripled year over year. Firefly, the Creative Suite, saw its annualized recurring revenue grow at a 50% clip, just versus the previous quarter. So if the numbers were great and the story is compelling, what the heck sent the stock into a tailspin? Okay, there are a few issues here. First, Adobe recently made an acquisition called Semrush. It's a brand visibility and search engine optimization platform. They paid $1.9 billion for it last November. When you back out the numbers from Semrush. Aha. Adobe's net new annual recurring revenue would have been down more than 3% year over year. Down buying the core business might be decelerating. Second, Adobe touted its success with attracting freemium users for its Creative Suite, meaning customers who use the basic product for free, then pay up for extra features. Specifically, Adobe's Creative Premium monthly active users grew from 50 million to 90 million year over year. And Adobe said this was quote, based on the early success of Firefly. End quote. Because of this Success in attracting premium users. Management wants to, quote, expand the Firefly freemium experience, which could be pretty expensive and lead to fewer people upgrading to the paid version. See, a lot of people didn't think like that. Basically, Adobe thinks it has an opportunity to bring in more people to its ecosystem, so they plan to forego some near term revenue in order to lure these people in. That might be the right strategy in the long run, but in the short run, it scared away a lot of investors. The shareholders want Adobe to monetize its AI tools quickly. Delaying that just gives the bears one more reason to tear the stock to shreds. And then there's the last thing and the thing. It's just huge. Really got people going. With last week's earnings report, Adobe announced that its cfo, Dan Durn, kind of a big figure in the industry, would be leaving the company effective yesterday. Turns out he's leaving to become the CFO of Marvel Technologies. Marvel's, you know, it's a company we've liked for a long time. That's Matt Murphy's company. He was really thrilled to get during. Regular viewers know that you never want to see the CFO resign. That's worse than a CEO resignation sometimes because the CFO is keeping the numbers. But worst of all is when both the CEO and the CFO are leaving. And Adobe's CEO announced his plans to step down back in March. Fortunately, he'll be staying on as chairman of the board. Still, Adobe's now looking for a new CEO and a new CFO at the same time. Not a great place to be. Plus, the CFO leaving for Marvell really hammered home the idea that the best opportunities in tech right now are all in semiconductors and hardware, not software. Put all together, you can see why Adobe got slammed last week. Didn't help that this happened at the same time that people were selling everything tech to raise money for the Space X deal. So what do we do with Adobe now? Honestly, I'm baffled. It's hard to tell. On the one hand, Adobe's down 70% for the high 7 up and trading at less than 9 times earnings despite putting up double digit earnings growth. Part of me feels it's just too cheap to ignore. Right? But on the other hand, Adobe has been too cheap to ignore for a long time now, yet the stock keeps getting clubbed like a baby seal. Plus, the entire enterprise software cohort remains pretty hated on Wall street, by the way, including today. So here's the bottom line. Given the numbers, I could bring myself to recommend Adobe down here. Except that we don't know who's going to be running the company. Maybe Adobe can turn itself around, but the stock won't turn until we find out the next CEO and the next cfo. So please, if you want to better come back for Adobe, at least wait until you can put a face on the company's future. Let's take some calls. Let's go to Jonathan in Florida. Jonathan.
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Booyah.
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Jim. Snap just revealed the new specs at Augmented World Expo. They are lighter and pack some serious compute to a pair of glasses. But Jim, I can't believe the street is punishing this when they've been begging for an AI wearable with full augmented reality. 1 billion monthly users, less than $10 billion market cap. Is this give a gift or a curse? Well, I think that the company itself has now cemented itself as a disappointer no matter what they do. And I know that's probably cruel, probably not fair. I watched the segment that was on today on cnbc. Seemed interesting. But you know what? They do not have credibility on the street. And I am a big believer that I happen to have Meta's goggles glasses. I have all of them. I've got the ones that are sunglass, but also the ones that are regular. And I like Meta. And I think Meta is the one to buy, not Snap. Let's go to Tom in California.
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Tom,
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Tom. Hey, Booyah, Jim. Booyah. Tom. What's up? Hey, longtime listener, first time caller, wanted
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to get your take on Meta.
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I know, go ahead. All right, Meta. Well, I'll talk about another aspect better because I just said I like Meta. Meta is doing a program that we featured on Bad money. Dina Powell McCormick is doing some amazing things to help small, medium sized businesses and younger, well, actually everybody. To learn how to do trades. That's right. To learn how to be electric. You're ought to be a plumber. Learn how to work in a data center. And I can't salute them enough because it's going to make a big difference because they're putting the money up for you if you want to be a tradesperson. All right, thank you for calling in. Mad Bunny is back after break. Coming up, what will yum brands look like now that it has cut out Pizza Hut? Kramer's digging in with the CEO next. Modern enterprise is made up of a lot of moving parts. And Comcast business helps you orchestrate it all. With SD Wan working at scale to keep 150 hospital locations connected and working as one. Plus SASE and Zero Trust Security, protecting financial data across a bank's 2,000 branches. And AI powered networking that optimizes traffic across five continents. No one does business like Comcast Business. 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 terms@discover.com credit card.
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This morning, Yum Brands, long one of my favorites, made it official. The restaurant company line kfc, Taco Bell and Pizza has decided to sell off pizza. The non China business goes to Long Range Capital as a private equity firm paying roughly 1.5 billion while the mainland China business goes to yum China for 1.2 billion. Oh, that's a big chunk of change here. At the same time, Yum's board of directors approved a $4 billion buyback which is equal, by the way, to roughly 9% of the company's current market cap is meaningful. I think this is a brilliant move. KFC has been solid. Taco Bell's terrific, but pizza has been a drag. So let's check in with Chris Turner is the CEO of Yum Brands to get a better sense of this transaction and where the company said. Mr. Turner, welcome back to Mad Money.
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Jim, it's fantastic to be with you. Thanks for making time.
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Well, I'm so glad you're with us because, you know, I think that this is one of those situations where the two, well, main, main brands that are left are really capable of having terrific earnings power. What made you think that it was just maybe too difficult to turn around Pizza Hut? Let's go with the main ones that are doing well.
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Well, look, we have three terrific brands outside of Pizza Hut and then Pizza Hut is a tremendous brand. I love that brand. Going back to my first date with my wife many years ago. But as I was coming into the role. We assessed what Pizza Hut needed and it needed big bold action. And the right thing as we conducted our review of strategic options was to position Pizza Hut outside of Yum. We've got long range capital outside of mainland China and Yum, China in China. This positions Pizza Hut for even greater growth going forward. And for Yum, it allows us to focus even more on those three brands. Of course the two biggest there are Taco Bell and kfc. They have incredible white space opportunities in front of them and we're talking about raising the bar, battling for the future consumer, accelerating restaurant economics and reaching the full potential of bite and our technology ecosystem. If we can do that with even more focus on those brands, we're going to accelerate growth in a huge way.
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Well, let's talk about Taco Bell. It's really one of the great success stories. Does not get nearly enough credit. The numbers are extraordinary. I know it's got to be in the top decile of what the restaurant chains are doing. Those numbers are amazing. How are you able to get such a high single digit same store?
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Oh, you know Taco Bell, you look at Q1 as you said on a two year basis, 18% same store sales growth far ahead of the industry in the US and it's because Taco Bell's magic formula is working and delivering what consumers need in this environment. First you got to have a buzzy, cool brand. Taco Bell is that you got to have craveable food. You got to have an easy, convenient experience powered by digital and you got to have great value. And when you do all four of those things together for the consumers show up and they love your brand. Of course Taco Bell is increasingly growing outside the U.S. one of the most fun things about the World cup has been welcoming these visitors to the U.S. from around the globe. I don't know if you've seen on social media many of them are going and visiting Taco Bell for the first time. Of course now when you live around the world, it's a good chance that there's going to be a Taco Bell close to you. We now have 1200 taco bells outside the US massive growth opportunity. There should be thousands and thousands and thousands of Taco Bells around the globe someday.
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Well, we have it right now. KFC sometimes look, there are periods where KFC strong in periods where it's not as strong. I know that you're a little unhappy with with KFC right now, although it's still more positive than a lot of others. What can you do to reignite that brand because, boy, they've got some great. You've got some real deals going on right now with kfc.
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Oh, yeah, look, the KFC brand is a powerhouse. It's our largest brand. There's 34,000 KFC around the globe. Only about 3,500 of those are in the U.S. we're working hard to drive better performance in the U.S. business, but in the international markets, we have tremendous momentum. A couple of weeks ago, I was in Korea. That is an incredible manifestation of the KFC brand. You talk about raising the bar, battling for the future consumer. The elements we talked about earlier, that's coming to life in Korea. They've doubled their sales over the last three years. I'll be in the UK later this week where we had our biggest LTO promotion ever a few months ago, Picklemania. But KFC UK has been on fire and you're seeing us. We still build a new KFC every three hours somewhere around the globe. The KFC team is doing a tremendous job driving that brand.
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So what are you going to be able to do? You have so much opportunity, but you're still deciding that the stock deserves some. A little love here. That's a very big, serious buyback that you announced.
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Well, yeah. You know, Jim, we have always done a great job returning capital to our shareholders. Our priorities, first and foremost. If they're investment opportunities, we're going to take them. Last year we made a big acquisition of Taco Bell US Stores that we brought back in house because we believe in the Taco Bell brand. Second priority is to maintain a healthy balance sheet. Third, we pay a competitive dividend. And fourth, anything that remains, we return to our shareholders through repurchases. Of course, we're going to have some proceeds from this deal. And the board did a great job in approving a $4 billion repurchase authorization. So that'll be a big part of our plan going forward.
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In the time, Chris, since I've been following your company, which has been about 20, 24 years now, digital has been really important to you. I know. I'm seeing. I'm wondering whether this is. The Nvidia once told me, look, we're going to be able to make it so that when you have drive through it can speak 27 languages. Not many companies took them up on it, but you are putting a lot of AI to work.
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We are. You know, our digital business is now 60% of the global business. Last year at a $40 billion e commerce business, that's tremendous scale. We started the AI journey a few years back. We trained all of our senior leaders on how to think about bringing to life in the business. And of course we are powered by talent and culture. So we're bringing AI to life in a very people centric way. You know, we also run a hospitality business and our consumers tell us over and over again that hospitality starts with a human connection. It'd be a little creepy to have a restaurant with no team members in it. So our AI strategy is focused on empowering our our team members to deliver a better experience in the restaurants and empowering all of our team members to do their jobs in an easier, faster, more productive way.
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That's what we want to hear from AI. We don't hear job loss when your job better. Last thing I know the consumer took a hit when gasoline went up and you talked about that. You really upfront about things that have been obstacle particularly for the people who are a little more stretched in this country now. It's going to come down fast. Do you think there'll be a nice rebound or is it. Are you afraid that the companies won't lower the the oil costs like they should?
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Hey Jim. Our brands can deliver what the consumers need in any environment. We've shown that over our long history. You take Taco Bell in the US The Taco Bell is always focused on delivering what the consumer needs. It's such a consumer centric brand. If you're looking for value, you know you can go to that lux value menu. 1, 2, $3 items. The Luxe Cravings meals 5, 7 and 9. Tremendous value on the Taco Bell menu. But there's also always a lot of exciting innovation that's coming down from a menu innovation schedule. I had a tremendous meal at Taco Bell over the weekend. The Chicken Cantina rolled quesadilla. If you haven't had that yet, go ahead.
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No, I haven't. And I think it's time we happen to hit your place every time we visit. Sometimes we have good nights out and the next day we hit you. I mean it just happens to be what we're not alone in that. Something I've been doing for 40 years of my life. Chris Turner, CEO of Yum Brands. Chris, congratulations. This is a very big move and you know I called for it for a long time and you went and did it and I applaud you for making the move. Great to see you.
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Thanks so much Jim. Great to see you. Big milestone today for Yum and for Pizza Hut. We're looking for forward to the future
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guys, take a look at what happened to Darden when they decide to go away from Red Lobster and they just decide to focus on on Olive Garden. This going to be the same thing. It it's going to be nothing but up. May have money's back after the break. Coming up, you called looking to learn about Zometry. Now Kramer's going straight to the top brass to get the answers next. Last month Brian in California asked about a company called Xometry that's an AI native marketplace for custom manufacturing. I told him I like the space but I didn't know the business well enough to recommend it. So I extended an open invitation to the CEO to come on the show and he took us up on it. Here's the stock that's up almost 45% year to date, 180% over the past 12 months. Now if you're any kind of manufacturer, even a smaller business that needs something custom made, Xometry can help you source all kinds of parts and assemblies. They're the first to digitize this entire process. Last month the company put a block quarter and also announced a major partnership with siemens, including a $50 million investment. I think that's a major endorsement. So let's take a closer look with Randy Altschuler. He is the co founder and CEO of HiSometry. Welcome to Mad Money.
C
Thank you so much for having you know when you start the company from zero imagining you'll be on Mad Money.
B
Please, your company company is excellent. I want people to hear about the two sided nature of it and how it really wasn't possible for AI because so many companies say they do AI and they don't. And this is a dream come true for both manufacturers and for customers.
C
Yes, it's a huge market. Over 275 billion spent on custom parts and was offline, it was analog. And you've got customers who use AI as you mentioned, to create a tell them if you can make it. Tell them a price for it. Tell them who can actually manufacture it. And our customers are leading companies in all sorts of industries from aerospace to semiconductors, technology, industrial. And then the manufacturers are hundreds of thousands of small manufacturers. Here in the United States, 98% of manufacturers are small businesses. We give them business by joining our
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online platform people before you. I mean there's a slow bit. Slow. You don't know what's going to happen. There's no checkout ahead of time. We don't know you validate everybody. But the main thing that I thought was incredible Was that you have a very small miss rate. You predict it and it comes back.
C
It does. It's really awesome. And that's because we've been doing this now for 13 years. We've been training our algorithms on real life outcomes. What are customers looking for? What are the outcomes of their orders and what can manufacturers do? So that helps us become increasingly accurate.
B
And as you get more accurate, you actually end up having better gross margins. Margins and fewer misses that you do eat if you don't. If it doesn't work.
C
Exactly. So since 2020 our revenue has grown 37% CAGR. Our gross profit is actually growing even faster as we become more and more accurate.
B
And I think people need to understand that Siemens is one of the greatest manufacturers. On earth. For them to give you that imprimatur is a major thing. Tell people what it means to have a company like that on your team.
C
Yes, super exciting. Leading software business for manufacturing. And this enables them to extend their thread, their digital thread from design to manufacturing to procurement. So we're being embedded directly into Siemens software. They have millions of users. It's a great opportunity for us to get exposure to their millions of users and global exposure.
B
Well, I want people to know. For instance, I at one point owned two restaurants and I wanted to have this row of beer taps because I thought that would be incredibly interesting. I went, I couldn't find how to do it. No one in America went on Etsy. I found some guy in Germany, did it. None of it fit. None of it worked. Cost us a fortune. Killed our profits at least for the first three months. Now this is something I could have put on, right? I mean it's $20,000. Would have probably found a guy who could do it.
C
Absolutely. I mean when you think about 40% of electronics are online, like 10% of cars are bought online, less than 1% of custom manufacturing is bought online. So it makes a lot of sense to be able to do it and do it quickly.
B
People need to know that they may think someone could come in and crash in and do this. It's actually your moat's pretty high and there's even 1% you've got at the table. But people couldn't just come in and do what you do.
C
No, because we've been training in our proprietary data. So actual outcomes, you can't search the net and get that data.
B
Now when you get you got this last quarter and it's going up and up and up. How are people finding out? Sounds like it's more and more manufacturers are finding out about you. More and more people who, like me, are finding out about you. But I don't, you know, I didn't know about you point blank from when the caller came. How does everyone learn about this company?
C
Yes. So customers find out digitally. There's more and more world word of, you know, people referring each other. And we're growing within large companies. Our growth with large companies has been 40%. So more and more we're becoming embedded in their supply chain, machines, and that's helping get the word out.
B
And there are certain aspects that you do. There are different. There's molds that are. I mean, the number of different kinds. Talk about the sheer number of kinds of stuff that you handle.
C
I mean, think about making parts for satellites, for medical devices, for amusement park rides. It's a wide variety, and they're all made different ways. This is a quick and easy way for people to find the best way to manufacture something instantly.
B
And what did they do before you?
C
They did. They got in a car and visited somebody. They sent faxes. I remember when there were faxes, they made phone calls. And then there was terrible. These great businesses that had no way to sell their open capacity. You know, the long tail, the Internet had never touched them. We enable those small businesses now to grow and get customers from all across the country.
B
Now you're a serial entrepreneur. What happens? I mean, you want to keep doing. This is the one you want to take, because I know you're stepping up to your executive chairman, you've got a new CEO, but you're going to stay on the board, you're going to keep in touch.
C
Absolutely. So I'm focused on strategic partnerships like Siemens. We've got a great new CEO. He joined us last year from Wayfair.
B
From Wayfair, manufacturer of. So he knows the business of. Of a dashboard and where stuff's coming from.
C
And he knows about making a great experience. Like, at the end of the day, our customers want the same experience they get at Uber or at Amazon. He knows how to deliver that. In the last three quarters, accelerated growth, increasing profitability. You know, Sanjeev's really delivered well.
B
Look, I think it's very, very exciting what you do. And I think that people should recognize there are people out there doing new, great things with AI that is not just like, you know, I mean, you probably run it all the time. People claim they're doing AI, but then when we see what you're doing, this is what it's meant for, right?
C
Absolutely. We're using it to actually provide the price, tell them if they can make it and connect them right that optimal manufacturer.
B
And then the last thing I say is that a lot of people think that we don't make as much in the country. I mean I had that problem trying to get iron work but with reassuring they must be turned to you because if we don't have it here, someone may have it and then we just import it here.
C
Absolutely. That's why we grew 40% last quarter our manufacturing segment and, and look at any given time there's 40 or 50% of American manufacturing capacity that is idle. So we have the capacity. It's just a question of bringing the demand to that capacity.
B
Well when people say that is wiping out jobs I am going to always mention you because you're creating a huge number of jobs and you're getting it so that small medium sized businesses have business even when they they might have been down otherwise. Great example of what can go right with AI. That's Randy. Absolutely. Co founder and CEO of Xometry. It's XMT are and well I. Well executive chair. You're sticking with it. They have money's back. You have to the break 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. It is. It is time. It's time for the light mountain crazy nights raps go numb Santa Saliba by social jumping in the course 10 of Thomas 10 fingers of Graves in the body plan itself and then the lightning round is over. Are you ready? Ski dag time. Right on. Crazy rough Monday. I'm starting with Tyler and Marilyn. Tyler, Mr. Chill Man. Yo, yo. Long time, long time. It's an honor to speak with you, but let's go to work. These restaurants are packed with young health and value conscious diners who want quality food.
C
Fast.
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Jim gym on the backs of Gen Y and Gen Z. Does Cava have more room to run? Is it okay that my sister and I like it too? We're a little bit older. Yes. You want to buy kava? I think it's the best of the new concepts. I think it's pretty. I think pretty. There's something there for everybody. There really is. It's tasty, clean fun. Let's go to Jeff in Florida. Jeff. Hey, Jim. Jeff in Fort Myers, Florida. All right, buddy. I've been a listener since the Kudlow Kramer days. Old school. So I've been following an immunity bio for a while now and it seems to me they've Gone from a small cap spec play to a mid cap commercial revenue generator. I think that's a good way to look at it. But I will tell you that's going to be your spec. Remember, in how to make money in any market, I encourage speculation as long as it's only one position. If you go two positions then I don't encourage it. Let immunity bio be your speculation. I want to go to Mitch in Illinois. Mitch. Professor Kramer, how we doing today? I'm doing well. How are you?
C
Great big bouillon.
B
Thank you to you and your staff as always. Second time caller had a question today about his stock.
D
It's got 64% gross margin.
B
There's, there's 206 locations with some expansions coming in Texas, Georgia and Alabama. There's currently more cash on hand than debt and just uplifted to the NYSE last week. I was wondering what do you think the multiple should be and what are your opinions on Truly erlv? I've always liked the brand name. I've always felt that it's considered to be in a, you know, kind of in a miasma of different companies that do it. It's the only one that stands out. I think that means a lot to people. I think it's a terrific spec.
C
Terrific.
B
I also think the cannabis difference is a good spec because I think the President's team is not anti cannabis. So I'm going to say I like the call. I like it a lot. Let's go to Helen in New Jersey. Helen. Hey Jim. My question is about a stock that I've held for several years. The stock was over 100 and then it drifted down to around 50. There's been some recent activity and the stock has increased to 65. The stock is Ashland. You got an apple called an core in there. They're going to try to bring out some value. Frankly, there is a lot more value to it than where it is selling. I urge you to hold on to the stock. I think it could go higher and that. Ladies and gentlemen, conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up with Kevin Warsh set to complete his first Fed meeting as chair, Kramer's offering his tips to the new chief. Next. On the eve of new Fed chief Kentucky, Kevin washing statements coming out of his first meeting. I would offer him some free advice about what's worth doing, what's not. First speak less. There's no reason to go through a question and answer session about your thinking after every Fed meeting. The questions are often repetitive. That means unless you answer exactly the same way every time, there'll be Fed watchers who spot inconsistencies and then blow them up into potential risks and rifts and rigmaroles that don't exist. To be brutally honest, I can't recall a single Q and A session where I was enlightened beyond what had already been said in the Fed chief statement. To defend a short statement for a full hour or longer is just a waste of time for everybody. Second, make your colleagues speak less to There's a gigantic deadweight loss of time that comes from endless Fed officials giving endless speeches about policy. They love to appear on air talking about what they see happening. These often cause the Fed funds rates to futures to jump, creating needless up needless and nonstop guessing games that produce absolute nothing except confusion. Everyone from the media to the bond desk to the hedge fund managers obsess over these speeches and interviews, which are often full of sound and fury, signifying nothing. One simple rule would change that if you agree to serve on the Fed in any position, you lose your podium. That way your colleagues can't sow confusion and you you can keep policy on a far more even keel if something happens intermediating the Fed can have a call and course correct. But these ceaseless speeches and interviews have to to stop. There are all sorts of businesses and government entities that don't allow their members to speak to the press. The Fed should now be one of them to Third, Washington is going to need a coherent artificial intelligence theory of employment that can withstand rapid change. What are the baselines? What are you looking for? Is it the number of people who apply to four year colleges? The percentage of people who accept offers to four year liberal arts colleges? Maybe the Fed needs to become more refined about unemployment. How about following each other? Each class of potential employees post graduation? Or perhaps isolate certain key industries and get granular information on layoffs. There's a chance, a really good chance, that I will have a major impact on employment. But without a central clearinghouse run by the Fed's researchers in unbiased way, I think we'll never really see the train coming, if it comes at all. It's very easy to see how two populists could run for president in two years on the desire to shut down progress with AI purely because of what it could do to employment? Let's figure out the reality of the situation ahead of time so the Fed stays relevant. Finally, War should start by acknowledging the previous good works of his predecessor. It's been an emotional rocky time at the Fed. Patriotism has been called into question whenever when it never should have been. Tension, name calling. All the attributes our mothers told us were unacceptable were thrown at this man, Jerome Powell. A simple act of kindness and a thank you will go a long way towards showing that civility still matters. Right now I think it's become old fashioned and I say let's bring it back to where it belongs. I like to say as always more market somewhere at Promoter Find just for you right here on Man Money. I'm Jim Cramer and I'll see you tomorrow.
A
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 before Inc. Met
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In this episode, Jim Cramer navigates the latest market drama, with a focus on the meteoric rise (and hyperbolic valuation) of SpaceX after its recent IPO, and what it signals about current market psychology. Cramer dissects investors' fervor for Elon Musk and the cult of SpaceX, contrasts it with skepticism toward traditional tech stalwarts like Adobe, and checks in on major corporate moves—like Yum Brands’ sale of Pizza Hut. The popular Lightning Round segment fields real-time buy/sell questions from callers, and Jim closes with pointed advice for the new Fed chair, Kevin Warsh.
[01:01–08:53]
Notable Quote:
"When you buy SpaceX here, you’re really buying Elon Musk’s brain. I think the cult of Musk is for real, but that’s not the right way to look at it... You may have missed Warren Buffett and Berkshire. At least you don’t want to miss Musk." (Cramer, [06:29])
[08:53–12:29], [40:57–43:10]
Vertiv (VRT):
GE Aerospace:
Casey’s (CASY):
CAVA:
ImmunityBio:
Trulieve (Cannabis):
Ashland:
[13:47–21:57]
[21:00–22:09]
[24:25–32:31]
[33:45–39:42]
[43:10–46:59]
Memorable Closing Quote:
"It’s become old fashioned and I say let’s bring [civility] back to where it belongs." ([46:29])
This episode echoes the dynamism and speculation driving 2026’s markets: unbridled optimism for space, data, and AI (especially under visionaries like Musk); persistent skepticism toward even the strongest old tech (Adobe); and the strategic reshaping of iconic American brands (Yum Brands). Through impassioned, granular analysis and his trademark showmanship, Jim Cramer offers clarity in a noisy market.