Mad Money w/ Jim Cramer – Episode Summary (June 2, 2025)

Welcome to a comprehensive summary of the June 2, 2025, episode of Mad Money w/ Jim Cramer. Hosted by Jim Cramer from CNBC, this episode delves deep into the intricacies of the stock market, offering insights, analyses, and actionable advice for investors. Below is a detailed breakdown of the episode's key segments, discussions, and notable quotes.

1. Market Overview and US-China Trade Talks (01:09 – 10:11)

Jim Cramer opens the episode by analyzing the day's market movements and the overarching influence of geopolitical events, particularly the anticipated trade discussions between the United States and China.

• Market Rebound: The stock market experienced a sharp decline in the morning but rebounded later, with the Dow gaining 35 points, the S&P rising 4%, and the Nasdaq up by 0.67%. This turnaround was attributed to reports (K1 Air at [01:09]) suggesting that President Donald Trump and Chinese President Xi Jinping are likely to engage in trade talks soon.

• Skepticism About Trade Deals: Cramer expresses doubt about the feasibility of these talks overcoming existing tensions, especially concerning semiconductor exports and rare earth mineral licenses. He remarks, “[02:20] Cramer: 'It doesn't matter. Doesn't matter at all whether accomplish anything.'” This underscores his skepticism about the market's optimistic expectations.

• Impact on Tech and Defense Stocks: The potential easing of trade restrictions could benefit companies like Nvidia, with market speculation around a possible $50 billion sale of chips to China. However, Cramer questions the administration's willingness to facilitate such deals, highlighting the precarious balance between national interests and market sentiments.

• Dell's Stock Performance: Despite a robust quarterly performance, Dell's stock saw a decline due to challenges faced by federal contractors amid government budget cuts. Cramer notes, “[07:XX] Cramer: 'Now these tech-oriented government contractors and consultants have seen their stocks eviscerated...'”

2. Stock Analysis and Recommendations (08:35 – 10:11)

In this segment, Cramer interacts with callers, providing personalized stock advice based on their inquiries.

• Caller: Jim from Texas ([08:35])

  • Discussion: Jim praises the diversification offered by the Mad Money Club, noting his increased nest egg since retirement.
  • Stock Focus: Netflix
  • Cramer's Advice: “What you do is you buy a little. Okay, just bite. Bite it, just bite it. You have to bite some more... [09:31]”

• Caller: Rick from Michigan ([09:31])

  • Discussion: Rick inquires about First Horizon, a bank previously favored by Cramer.
  • Cramer's Advice: “Oh, I like First Horizon very, very much. I like it very much. I think it should be bought... [10:11]”

Notable Quote:

“[09:02] Cramer: 'That's what I want. That's what I want. Even though he's not working, that's good news.'”

3. "Sell in May" Strategy Debate (14:10 – 38:40)

A significant portion of the episode is dedicated to analyzing the age-old investment adage: "Sell in May and go away." Cramer dissects historical data to evaluate its validity in contemporary markets.

• Historical Performance Analysis:

  • 2000-2009: The S&P 500 experienced five positive and five negative summers, with an average decline of 1%. During particularly tumultuous years like 2001, 2002, and 2008, summers saw significant downturns.
  • 2010-2019: Improved performance with seven out of ten summers yielding gains, averaging 1.2% with a median gain of 3.0%.
  • 2020-Present: Despite economic challenges, including inflation and federal rate hikes, the market averaged a 6.6% gain over five summers, with 2020 showcasing a notable 15% rally post-COVID lows.

• Cramer's Stance: Contradicting traditional wisdom, Cramer argues against the strategy, emphasizing that "the vast majority of your gains will come from a small number of very strong days that come throughout the year" ([14:10]).

• Data-Driven Conclusion: Over the past 25 summers, the S&P 500 rose 16 out of 25 times (64%), with an average gain of 1.4% and a median gain of 2.7%. Cramer asserts, “Sell in May and go away has been a loser...” ([25:08]).

Notable Quotes:

“[14:10] Cramer: 'Sell in May and go away has evolved into something more like this... I have often wondered if it weren't such a nice bit of dog roll, it would have been left for dead a long time ago.'”

“[25:08] Cramer: 'When you look at the last 25 summers as a whole, here are the numbers... it's been up nearly 2/3 of the time.'”

4. Caller Interactions and Stock Insights (20:27 – 38:40)

Cramer engages with multiple callers, addressing their stock-related queries and providing actionable advice.

• Caller: Jim from Texas ([20:27])

  • Topic: Arista Networks amid the AI boom.
  • Cramer's Response: Praises the company despite recent stock declines, emphasizing future potential.

• Caller: Tom from Ohio ([21:33])

  • Topic: Retail sector, specifically Kohl's.
  • Cramer's Response: Acknowledges positive quarterly performance and potential for stock growth from $8 to $12, while cautioning about limitations.

• Additional Callers:

  • Eric from New York: Discusses ACB Aurora (Cannabis)

    • Cramer's Advice: “It's a nice speculative stock... [39:31]”

  • Joyce from Nebraska: Inquires about Skyworks Solutions

    • Cramer's Advice: Recommends favoring Nvidia over Skyworks for better growth prospects.

  • Vince from Louisiana: Sezzle stock discussion

    • Cramer's Advice: Suggests that Sezzle may have peaked, advising caution.

  • Aaron from Texas: Build-A-Bear stock

    • Cramer's Advice: Encourages holding the stock, noting its strong performance since 2021.

  • Alan from New Jersey: Confusion about ARIN's alignment with AI trends

    • Cramer's Advice: Endorses CERNs as a winner in the AI sector.

  • Bruce from Texas: High Peak Energy

    • Cramer's Advice: Warns about oil price dependency, suggests interest only if oil prices rise significantly.

  • Roger from South Carolina: RSG stock analysis

    • Cramer's Advice: Highly praises RSG, emphasizing its long-term potential.

Notable Quote:

“[41:09] Cramer: 'We think Sezzle's had its day. I don't think we can recommend Sezzle any higher here.'”

5. Lightning Round Highlights (39:08 – 43:52)

In the fast-paced Lightning Round, Cramer swiftly addresses multiple stock inquiries from callers, offering succinct recommendations.

• Key Highlights:
  • ACB Aurora (Cannabis): Described as a "nice speculative stock."
  • Skyworks Solutions: Rated as very cheap but lacks a catalyst, recommending Nvidia over it.
  • Sezzle: Viewed as having peaked; not recommended for further investment.
  • Build-A-Bear: Strong long-term hold with record-breaking performance.

Notable Quote:

“[43:34] Cramer: 'What's your short and long term outlook on ticker RSG?' [43:43] Russ Becker: 'RSG is such a good company... a great stock.'”

6. Final Thoughts and Takeaways

Jim Cramer wraps up the episode by reinforcing the importance of staying invested, countering prevalent investment myths, and encouraging proactive portfolio management.

• Against Market Timing: Cramer emphasizes that strategies like "Sell in May" can lead to missed opportunities, advocating for consistent investment irrespective of seasonal trends.

• Sector Insights: Highlighted the resilience and growth potential in sectors like safety and infrastructure, exemplified by API Group's robust performance.

• Cautionary Advice: While the market shows optimism, Cramer cautions investors to be prepared for potential disappointments driven by political agendas and economic policies.

Closing Quote:

“[38:52] Cramer: 'Don't just go blindly sell a man go away. We looked at the data and it says that the so-called strategy is indeed a big loser.'”

Conclusion

This episode of Mad Money w/ Jim Cramer provides a blend of market analysis, historical strategy evaluation, and personalized stock advice. Jim Cramer's insights challenge conventional investment wisdom, urging listeners to adopt informed and strategic approaches to maximize their investment portfolios. Whether you're a seasoned investor or just starting out, the discussions offer valuable perspectives to navigate the ever-evolving financial landscape.

For more insights and detailed analyses, tune into Mad Money w/ Jim Cramer on CNBC.