Mad Money w/ Jim Cramer – Episode Summary (June 25, 2025)

Host: Jim Cramer
Producer: CNBC
Release Date: June 25, 2025

Market Overview

Jim Cramer opens the episode by providing a snapshot of the current market conditions:

• Dow Jones Industrial Average: Declined by 107 points.
• S&P 500: Flat for the day.
• Nasdaq: Gained 0.31%.

Cramer emphasizes the mixed performance across sectors, noting an almost equal split between outperformers and underperformers. He states, “It's worth breaking things down so that you can see what I see” ([01:24]).

Winning Sectors

Cramer identifies five sectors that are currently outperforming the market:

1. Cybersecurity ([02:46]):

   • Key Holdings: Crowdstrike and Palo Alto Networks.
   • Insights: With rising cyber threats, these companies are securing significant business, including government contracts. Cramer notes, “The long-term direction is clear. It's higher.”

2. Cryptocurrency-Related Companies ([02:47]):

   • Key Holdings: Coinbase, Robinhood, Circle Internet.
   • Insights: The crypto sector is heating up, with companies offering various crypto services seeing substantial trading volumes. Cramer mentions, “It's worth a lot of small stocks that emulate these big dogs and you see them trading all the time.”

3. Data Centers ([02:55]):

   • Key Holdings: Nvidia, AMD, Cisco, ARM Holdings, Broadcom.
   • Insights: The demand for data center infrastructure is booming, driven by advancements in technology and increasing digitalization. Cramer highlights, “The data center alone has caused a huge spike in electricity demand and the ancillary players from that anomaly are doing well too.”

4. Semiconductors ([02:56]):

   • Key Holdings: Texas Instruments, Applied Materials, Lam Research, Micron.
   • Insights: Semiconductor companies are experiencing robust growth due to their integral role in various high-tech applications. Cramer asserts, “There are plenty of semiconductors capital equipment stocks that are on fire.”

5. Banks ([02:58]):

   • Key Holdings: Capital One, Discover Financial.
   • Insights: Benefitting from high interest rates and low unemployment, banks are thriving. Cramer states, “Banks do terrifically when unemployment is low because people really default on their debts when they have jobs.”

Losing Sectors

Conversely, Cramer outlines five sectors that are underperforming:

1. Housing ([05:00]):

   • Key Holdings: Toll Brothers, Lennar, KB Homes.
   • Insights: The housing sector is struggling with rising inventories and declining homebuilder reports. Cramer remarks, “Homebuilding is a terrible business right now.”

2. Automobiles ([05:15]):

   • Insights: Tariffs and supply chain complexities are negatively impacting auto manufacturers. Cramer explains, “They're so snake bit by the trade war. These companies need rare earth minerals from China, they need parts from all over the world and they need financing to be cheaper.”

3. Freight Transportation ([05:30]):

   • Key Holdings: FedEx.
   • Insights: Companies like FedEx are grappling with stagnant business-to-business services. Cramer comments, “FedEx hasn't been able to make the street's numbers.”

4. Retail ([05:45]):

   • Key Holdings: Kohl's, Macy's, Burlington, Ross, TJX, Target, Home Depot.
   • Insights: Retail stocks are generally weak, though Cramer remains cautiously optimistic about Home Depot, anticipating potential gains post-Fed rate cuts.

5. Consumer Packaged Goods ([06:00]):

   • Key Holdings: General Mills, Colgate, Procter & Gamble, James Smucker, Constellation Energy.
   • Insights: Companies in this sector are facing declining sales and challenging market conditions. Cramer critiques General Mills, stating, “They chatter on and on about some algorithm that gives them the numbers they want.”

Exclusive Interview: Anthony Noto, CEO of SoFi Technologies

Cramer interviews Anthony Noto, CEO of SoFi Technologies, focusing on SoFi's expansion into cryptocurrency services.

Key Topics Discussed:

• Expansion into Crypto Services ([14:02]–[22:35]):

  • Products Introduced:
    • Crypto-Enabled International Money Transfers: Facilitates cross-border payments using cryptocurrencies for faster and cheaper transactions.
    • Crypto Investing: Allows customers to buy and sell cryptocurrencies securely through SoFi's platform.
    • Future Plans: Introduction of stablecoin payments and borrowing against crypto assets.

• Regulatory Environment ([17:39]–[19:26]):

  • Gen T Act Critique: Noto criticizes the act for prohibiting interest on payment stablecoins, arguing it hinders competition and innovation. “Not giving interest to Americans on payment stablecoins is like not giving interest on a savings account. It's just un-American” ([17:39]).
  • Global Competitiveness: Emphasizes the need for the U.S. to allow interest on stablecoins to remain competitive globally.

• Financial Performance ([20:37]–[22:06]):

  • Strong Q1 Performance: Over 30% revenue, member, and product growth.
  • GAAP Profitability: Fifth consecutive quarter of GAAP profitability.
  • Future Guidance: Positive outlook with expected revenue growth acceleration.

Notable Quotes:

• “Our goal is to be there for every one of the major financial decisions you make” ([15:03]).
• “We are focused on delivering durable growth quarter in and quarter out” ([22:06]).

Deep Dive: Amgen’s GLP1 Drug Data

Cramer explores Amgen's recent clinical trial data for its GLP1 drug, maritide, used for diabetes and weight loss.

Key Insights:

• Trial Results ([24:05]–[35:44]):

  • Phase 2 Data: 20% average weight loss over 52 weeks for obesity patients; 17% for those with both obesity and diabetes.
  • Side Effects: High incidence of vomiting at the highest dose, attributed to trial design rather than the drug itself.
  • Phase 3 Trials: Ongoing, with adjustments to dosing schedules to improve tolerability.

• Market Reaction ([24:05]–[35:44]):

  • Stock Performance: Dropped nearly 5% upon initial data release, with further declines following updated data. Recently recovered some losses.
  • Comparison to Competitors: Faces stiff competition from Eli Lilly’s GLP1 drugs, particularly their orally administered pills versus Amgen’s injectable solution.

• Cramer's Analysis:

  • Believes the initial stock sell-off was an overreaction to the trial's side effects.
  • Sees potential undervaluation, citing Amgen’s P/E ratio of 13 compared to Eli Lilly’s 36.
  • Concludes, “If you're looking for a bargain, you could do a lot worse than Amgen” ([35:44]).

Notable Quotes:

• “Amgen is a bargain basement price” ([35:44]).
• “Good; The stock did not deserve to get hit this hard” ([35:44]).

Listener Calls and Stock Opinions

Cramer engages with listeners, offering quick takes on various stocks during the Lightning Round:

1. Netflix ([09:38]) ([08:09]–[09:38]):

   • Caller: Bill from Indiana.
   • Cramer's Stance: Advises holding rather than doubling down or selling. “I am not going to tell you to sell the stock” ([09:38]).

2. Applied Digital (APLD) ([41:20]):

   • Caller: RJ from California.
   • Cramer's Stance: Positive outlook on high-performance computing infrastructure. Encourages buying based on the sector’s growth.

3. Marvell Technology ([41:41]):

   • Caller: Jim from Texas.
   • Cramer's Stance: Strongly endorses, criticizing brokerage ratings. “Marvell's excellent company” ([31:08]).

4. DocuSign ([41:51]):

   • Caller: Carter from Tennessee.
   • Cramer's Stance: Advises selling despite positive innovations and last quarter results. “It's time to sell” ([41:51]).

5. Workday ([42:40]):

   • Caller: Tom from New York.
   • Cramer's Stance: Negative outlook due to competition and past performance. Advises caution.

6. Danaher ([43:28]):

   • Caller: Sam from Massachusetts.
   • Cramer's Stance: Critical of CEO’s performance; suggests significant changes. “What is he doing?” ([43:37]).

7. St. Mary Energy (SMM) ([44:20]):

   • Caller: Michael from New York.
   • Cramer's Stance: Advises selling, suggesting better alternatives. “I think you should go buy Kotara” ([44:24]).

Notable Quotes:

• “It's time to sell” ([41:51]).
• “I think you should go buy Kotara” ([44:24]).

Semiconductor Sector Analysis

Cramer discusses a research piece comparing the current semiconductor rally to the 1980 oil boom:

• Comparison to 1980 Energy Rally ([45:01]–[48:09]):
  • Similarities: Massive growth driven by external factors (e.g., Middle East oil shocks then, digitalization now).
  • Differences: Unlike oil, semiconductors are integral to various high-tech applications, making them more sustainable.
  • Cautions: Warns against over-enthusiasm, noting that semiconductors are not a commodity and their performance is tied to the broader economy. “I think it's unrealistic” ([48:09]).
  • Outlook: Encourages cautious investment, recommending waiting for market corrections before doubling down.

Notable Quotes:

• “We’ve got to curb our enthusiasm a little bit” ([48:09]).
• “It's too much for me” ([48:09]).

Closing Remarks

Cramer wraps up the episode by emphasizing the importance of understanding sector performances and remaining cautious in investment decisions. He encourages listeners to:

• Stay Informed: Keep track of winning and losing sectors.
• Be Cautious: Avoid over-investing based on temporary rallies.
• Engage with the Market: Use tools and insights provided by platforms like Schwab’s ThinkOrSwim for informed trading decisions.

Final Quote:

• “Remember what's been working and what hasn't right here... I expect the winners to keep winning and the losers to keep losing” ([08:09]–[around 09:38]).

Key Takeaways

• Sector Rotation: Understanding which sectors are currently outperforming or underperforming is crucial for investment strategy.
• Cryptocurrency Integration: Financial institutions like SoFi are expanding into crypto services, reflecting broader market trends.
• Biotech Opportunities: Companies like Amgen may present investment opportunities despite short-term setbacks due to strategic innovations.
• Cautious Optimism in Tech: While semiconductor stocks are hot, investors should remain cautious to avoid overexposure to market anomalies.
• Active Engagement: Listeners are encouraged to actively participate and seek expert opinions to navigate the complex market landscape.

Additional Resources

For more insights and detailed analysis, listeners can visit madmoney.cnbc.com or follow Jim Cramer on social media platforms.

Disclaimer: All opinions expressed by Jim Cramer on this podcast are solely his own and do not reflect the opinions of CNBC, NBCUniversal, or their parent companies. Investments involve risks, and listeners should conduct their own research or consult a financial advisor before making investment decisions.