Mad Money w/ Jim Cramer 6/25/25

Summary

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

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

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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]).

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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.”

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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.”

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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]).

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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]).

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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]).

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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]).

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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]).

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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.

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Additional Resources

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

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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.

Transcript

[Keith Lansford]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.

[Jim Cramer]

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[Keith Lansford]

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[Jim Cramer]

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[Keith Lansford]

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[Anthony Noto]

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[Jim Cramer]

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[Anthony Noto]

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[Ryan Reynolds]

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[Keith Lansford]

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica other people and friends. I'm just trying to help you make a little money. My job is not just entertain you, but educate, teach you. So call me at 1-800-7-3cmc tweet Mitch Mc Kramer all right, we got two markets, a set of stocks that goes higher and set of stocks that seems to do nothing or drift lower. It's a pretty equal number to me. The differences could be more stark though, the winner so obvious, the losers walking around with a L on their forehead. But on a day where once again the sector action was hidden by the averages, Dow declining 107 points S&P flat of the day, Nasdaq gaining.31%. It's worth breaking things down so that you can see what I see. So allow me to break this market down into five winning sectors in five sectors that frankly can't measure up. Of course, things have changed on a dime. The slow ones now will later be fast. Thank you Bob Dylan. I'm always happy to own some minor course. Talked about that in the investing club member today at lunch. But the bigger money is made simply by going with the flow. No need to be contrary. First positive area is cybersecurity. The dangers have never been greater and the group's winners are bountiful because there's just so much business because there are so many cybercriminals and some of them are state Sponsored we're doing something for the club that we've never done. We actually own two of them for the trust.

[Anthony Noto]

2.

[Jim Cramer]

What do you talk about? Not diversified? I don't care. We own Crowdstrike and Palo Alto Networks. It's rare for us to have two stocks in the same relatively small sector, but the companies are doing so well that I kind of wish we even own the third Z Scaler which is doing as well, if not better than the two that we own. Still, Palo Alto and Crowdstrike are winning huge deals and while their stocks have been volatile at reporting time, the long term direction is clear. It's higher. Second group of winners. Pretty much anything related to crypto. Now some are linked to buying and selling crypto. Think Coinbase, Robinhood. That Circle Internet. That's that newly public stablecoin play which came out of the IPO gate super hot. Let's cool off slave. There are lots of smaller stocks that emulate these big dogs and you see them trading all the time. You know what I mean Meme. Third, the data center which is just going bonkers. You need. You need to know what's in the data center. Starts with Nvidia of course was hit an all time high today and is now the largest stock in the world. My late invader. The data center is built around Nvidia's chips. Lately though, we've been seeing amd they're only semi meaningful competitors. Stocks up like 40 straight points win a lot of business. Same with Cisco, ARM Holdings, Marvel Tech, Broadcom plays a huge role in these. Vertif makes power and cooling equipment for the data center. Core Weave runs data centers and rents out their computing power. Dover and Eaton supply parts of the infrastructure. Vistra Energy and Constellation Energy produce and sell electricity for the data center. GE Vernova makes the turbines for the power plants. I know it looks like turbine, but you pronounce it turbine. The data center alone has caused a huge spike in electricity demand and the ancillary players from that anomaly are doing well too. Fourth group of winners, the semis. Now lots of overlap with the data center, including the biggest being in video. But there are plenty of semiconductors capital equipment stocks that are on fire. There's Texas Instruments and xp Semi Applied Materials. Kla this goes you know what lam Research got to put them into. Don't forget Micron, which reported a pretty good number this very evening. And CEO Sanjay Marocha will be on Squawk with me at Squawk on the street tomorrow morning so we can find out more Whoa, whoa, whoa. Fifth and finally and yes, oddly the banks, it's been ages since it's been a leadership group but, but interest rates are high and the banks do well in that environment. They do terrifically when unemployment is low because people really default on their debts when they have jobs. On Friday after the close we can see the bank stress test what they, the grades, those are the ones that are administrated by the Fed. I think it could be still one more positive catalyst for a group that's been a real winner under President Trump who obviously favors deregulation. Today the banks were told that they can have a little more leverage and don't need to put up as much cash as that's just incredibly bullish. My favorites, Capital One which just closed on a key acquisition, Discover Financial. I think it's that it will turn its credit card business into an even bigger house. C o F All right, now the losers. Let's start with housing. We're seeing anemic new housing starts. We've seen terrible mortgage numbers. The homebuilders have put up awful reports. Inventories are beginning to rise in some of the big builders so they're cutting price. Homebuilding is a terrible business right now. You can't touch this group until the Fed starts cutting rates. Toll Brothers, Lenore, KB Homes, all weaker, all toxic. Second loser cohort, the autos, right now they're in tariff hell. I have no idea whether what they'll end up paying per car, what they might not pay, who the heck knows. They don't know either. It's, it's just incredibly complex. But 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. I mean that's just, that's a real fearful trifecta. Third loser, freight transportation. Truckers can't seem to make their numbers. The railroad stocks can't get any momentum. All aboard. FedEx showed you how hard this business is when it reported last night their business to business service has been stuck in neutral even as the business to consumer side is OK. But FedEx hasn't been able to make the streets numbers. I think got some opportunity here though. FedEx has cut its capital expenditures and chopped expenses. It's a coiled spring. I like cold springs. But understand that it won't spring until we see how the tariffs shake out because so much of the business involves import export. Until then, spring stays coiled. Next up, retail. Oh man, it's all over the map. But for the most part, the stocks are awful. Kohl's look so troubled. Macy can't get out of its own way. Close out stores. Olives just downgraded. Burlington Ross TJX all trading terribly. Targets being clobbered. Home Depot. Ouch. I like it. But it's very, very hard to own with such a horrendous housing and a miserable garden season. If you want Home Depot, you have to hold your nose and buy it in anticipation of the rate cuts for the Fed. That's what we're doing for the Travel Trust. But it's a struggle. I have a cold. This helps. We are sticking with it. Finally there are the miserable consumer packaged goods place. Oh my God, they're so horrible. Today the once invincible General Mills we used to call Generous Mills put up incredibly weak numbers. The General used to be the most clockwork of the group. Today the stock slipped over 5%. Amazing if listed management on the conference. Well, they don't even sound challenged. It seems like they think it's business as usual. They chatter on and on about some algorithm that gives them the numbers they want. They don't seem to understand they got to cut price big time or do some merging in order to make things palatable. Meanwhile, usually strong stocks like Colgate or Procter and Gamble, they can't get traction at all. Hey, two weeks ago we got this quarterly report from James Smucker. With a name like Smucker, it was horrendous hurt by its ill fated decision to buy Hostess Brands, the parent of Twinkies. Right on the eve of the GLP1. I am told that people who take GLP1 are repulsed by ring D by hoes. They eat ho's. Or how about Constellation Bears? The alcohol company has been 4 times cursed. GLP just one. Drugs cut the craving for beer. Gummies can be the same high as many calories. I have no idea about that. Younger people don't want to pollute their bodies with alcohol. I don't know anything about that either. It's big Mexican beer brands Corona, Modelo and Pacifico are very victims of the White House immigration crackdown which the CEO pointed out on their conference call in April. Unfortunately for Constellation shareholders, these immigration policies are impacting a meaningful chunk of their customer base. So here is the bottom line now you know the five ins and the five outs of what's working in this market. Never forget it. Write them down in your hand, you know what I mean? Like put it right here. Put them right here. Whenever we have downdrafts Even intraday downdrafts. Remember what's been working and what hasn't right here. And things can change. But for the moment, I expect the winners to keep winning and the losers to keep losing. And now what we're going to do is we're going to speak to Bill from Indiana. Bill. Hey Jim, how are you?

[Anthony Noto]

Thank you for taking a minute to.

[Jim Cramer]

Consider my question, which is about Netflix and whether it's time to take profits or to double down on this. It's really been a durable stock, keeps beating all the forecasts for profit and the price is surging. I mean it's up 43% already this year. Well, but you know what, let's think about this, Bill. I mean they are going to be the entertainment channel, so to speak, for the world. It's worth 542 billion. That makes sense to me. I don't want to double down because I think you might get an intraday swing at a point where you can buy some. But I'm not going to go against this company which may be one of the best run companies in the entire world. And I am not going to tell you to sell the stock. Alright? Remember which groups are working. You can write them down right here. Okay. Where you they're handy and which ones aren't working. Put that on this one. Because I think the winners are going to keep on winning and the losers are going to keep on losing. Oh man. So far, relaunching crypto investing the first of many services plan in the space. I'm sitting down with CEO Anthony Noto to hear his plans to reinvent the future of finance. Then Amgen is entering the world of GOP this once after getting some important data earlier this week. Should investors start viewing the stock under a completely different light? I'm going to give you my take. And what the heck happened to the stock of paychecks today? I'm going to get some answers from the CEO. Makes sense of this post earnings slide. So stay with Kramer.

[Keith Lansford]

Don't miss a second of Mad Money. Follow imkremer on X.

[Jim Cramer]

Have a question?

[Keith Lansford]

Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-cnbc Ms. Something? Head to mad money.cnbc.com Commercial payments of Fifth Third bank are experienced and reliable, but they're also constantly innovating. It might seem contradictory to have decades of experience but also be on the cutting edge of the industry. But Fifth Third does just that. They don't believe in being just one way for your business because your business has more than just one need. Like needing your payments to be done on time, safely and without any bumps today, but also needing to know you won't be hitting any bumps tomorrow. That's why they handle over $17 trillion in payments smoothly and effectively every year, and were also named one of America's most innovative companies by Fortune magazine. After all, that's what commercial payments are all steady, reliable expertise that keeps money flowing in and out like clockwork. So Fifth Third does that. But commercial payments are also about building new and disruptive solutions. So Fifth Third does that too. That's your commercial payments. A Fifth Third Better Comcast operates the nation's largest converged network, reaching 64 million homes and businesses. With $80 billion invested to expand broadband infrastructure in the U.S. comcast is actively supporting the goal of bringing broadband to everyone, including rural communities across the country. Comcast has connected 1.2 million new homes and businesses in the last year and are on track to do the same this year. Learn more about how Comcast is bringing high speed Internet to communities across the [e-mail] youm just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. When it comes to hiring, Indeed is all you need. Stop struggling to get your job post seen on other job sites. Indeed sponsored Jobs help you stand out and hire fast. With Sponsored Jobs, your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster. According to Indeed data, Sponsored jobs posted directly on indeed have 45% more applications than non sponsored jobs. There's no need to wait any longer. Speed up your hiring right now with Indeed and listeners of this show will get a $75 sponsored job credit to get your jobs more visibility@ Indeed.com madmoney just go to Indeed.com madmoney right now and support our show by saying you heard about Indeed on this podcast. Indeed.com mad money terms and conditions apply. Hiring Indeed is all you need.

[Jim Cramer]

Today. Kramer faves SoFi Technologies, the digital first financial services company, rolled out plans to give its members all sorts of new cryptocurrency offerings and that includes crypto enabled international money transfer service as well as crypto investing. Eventually they'll say launch a service for stablecoin payments and they'll even allow customers get this to borrow against their crypto assets. Crypto investing is actually a service that so far used to offer for backing away from the crypto space in order to get its bank charter in 2022. Now, though, we're living in a very different regulatory environment where the company can get away with operating as a bank and providing crypto services at the same time, which they always should have been able to do. So let's take a closer look with Anthony Noto. He's the bankable CEO of SO5 Technologies and it's been way too long. Welcome back to.

[Ryan Reynolds]

Thank you, Jim. Thank you for having me.

[Jim Cramer]

Sure. Now, Anthony, you have offered a really what I regard as a broad new suite of products. And I want to give you the floor to tell people what you can get if you sign up with so Far.

[Ryan Reynolds]

Sure. So Far is a one stop shop for all your financial services needs. We offer four different types of loans. A SOFI money account, which is a checking and savings account where you get 4% interest if you do direct deposit with us. In addition to that, we offer so far Invest, which is the ability to invest in stocks, fractional shares, ETFs, robo accounts, IPOs at IPO prices, as well as alternative assets. We also offer partnerships on insurance for home, auto and car, home, auto and life insurance. In addition to that, we have a credit card. So our goal is to be there for every one of the major financial decisions you make, like buying a home or paying for college and all the days in between. Because we want to hopefully get you to the point that you have enough money to live your American dream, to have the size house you want, the size family you want to retire when you want to have the career that you want. And the only way to do that is to be there for all of those decisions. So we help you spend less than you make and invest the rest. And that's the formula of success.

[Jim Cramer]

Okay, so tell us why you need to offer crypto. Is there tremendous demand? Are you trying to get customers who otherwise would say, you know what, I really love this, but they're not giving me crypto first.

[Ryan Reynolds]

We're a digital only company, so we need to use technology to provide all of these services to you. We want you to have the ability to pay anybody, anywhere, any way that you want. And so one of the products we're launching, International Payments, will allow you to use US Dollars to pay someone in a foreign country and in their local fiat currency. That dollar will be transferred into bitcoin, transmitted over the blockchain, and then at the destination converted back into fiat currency. Today, the remittance market, or international market is close to $100 billion from the U.S. we think we can provide a service that's faster, cheaper, more accessible and most importantly, very secure. In addition to that, we know our members want to invest in cryptocurrency. We saw for the product, but we didn't take past as the future. So we went out and asked our members and 60% of our members would like to have cryptocurrency offered from someone like so far there's a nationally licensed bank and that is a big change. In the past, banks couldn't offer buying and selling cryptocurrency, but they can now. And so our bank license is now useful not just to take deposits that are insured and lend them, but to actually provide a very safe, reliable way to buy and sell cryptocurrency. The other important.

[Jim Cramer]

Why you're saying that I'm reading your Twitter file right here. I mean, you're not happy with the government's regulating the, the, the stablecoin.

[Ryan Reynolds]

I do think the Genius act is an important step forward as it relates to stablecoins, but it doesn't go far enough. In America today, we embrace innovation, we embrace competition, but we also embrace getting fair value. And in the banking system, consumers give banks their deposits. The bank gives them back interest for the use of those deposits and lending to other people. In the world of stablecoins, this Genius act prohibits the payment of interest on payment stablecoins and that's just wrong. It just protects the big bank's deposit bases. We have a very large deposit base, over $27 billion. Our deposit base will face competition if stablecoins are allowed to offer interest. But guess what, Jim? We will embrace the technology. We will embrace competition and we'd be willing to give interest on payment stablecoins as well. Not giving interest to Americans on payment stablecoins is like not giving interest on a savings account. It's just un American. The consumers, the Americans work hard for their money. They should get paid for its usage within the banking system. The genius.

[Jim Cramer]

I mean, I didn't know this until I, until I read my background stuff on you, that this was so discriminatory and ridiculous, frankly. I mean, because if we're going to be the leader in digital technology, we can't do what they're doing. We just can't.

[Ryan Reynolds]

Exactly. And there's two other important points. If interest was allowed on payment stablecoins, it would actually increase the demand for US Treasuries because you would want to put those dollars of that are backing the stablecoin dollar for dollar into US Treasuries. To get a yield on them that you could then share with consumer the by not offering interest or prohibiting it. There's no demand for US Treasuries because there's no benefit to the consumer. In addition to that, outside the United States, you actually can provide interest on stablecoins which means we won't be competitive globally.

[Jim Cramer]

Oh, that's terrible. That is terrible. I didn't know that. I'm very surprised this administration that they haven't thought of that. Who should we talk to to make sure that that changes?

[Ryan Reynolds]

Well, Jim, as you know, every piece of legislation has to have compromises and unfortunately, interest on payment stablecoins was a compromise to get the larger act passed. And we're supportive of the larger act. We just don't think it goes far enough. So we don't want to stop in the communication and emphasizing the need to continue to iterate on the legislation and to get it right to help drive American innovation.

[Jim Cramer]

But speaking of innovation, it sounds like that I might be able to get a home equity loan if I have crypto with you.

[Ryan Reynolds]

Against the crypto, yes, today so far offers four types of loans. We offer a mortgage, we offer student loans, we offer refinance student loans, and we offer home equity lines of credit and home equity loans. In the future, when it's allowed, we'd like to offer secured lending against cryptocurrency. It's a great asset. It obviously is very volatile, so we'll have to have the right safeguards. Our goals to provide our products with safety and soundness and an eye on ensuring consumer safety. But we think it will be a very attractive product when we introduce it over time when it's appropriate.

[Jim Cramer]

All right, so just fill me in about how you're doing. I mean credit quality, good employment, so strong. I got to believe that bad, bad loans still not a factor yet.

[Ryan Reynolds]

We, we are off to a great start of the year. Q1 was a really strong quarter, another record quarter of revenue. We had over 30% revenue growth. We had over 30% member growth and over 30% product growth and our fifth quarter of GAAP profitability. So the business hitting on all cylinders. Our guidance for the second quarter was for a continued acceleration in revenue growth at the high end and continued strong durable growth that we've delivered over the last 12 quarters. Despite all the volatility that's been in the market. As you mentioned, credit has been strong and continues to improve. In addition to that, we're seeing really strong demand on point of sale spending and then finally on invest Our net flows have continued to be positive relative to the market. So we feel great about the consumer strength and the outlook. There's obviously a lot of uncertainty and things could change in a moment, especially with all that's going on on a global basis, not to mention inflation and interest rates. But the team's done a phenomenal job executing and delivering for our members.

[Jim Cramer]

Well, I got to tell you, I'm listening to you and I'm thinking in this new world where bank of New York BNY is interested in buying Northern Trust, I have to believe that so far is incredibly undervalued. And you're the only one other than Robinhood that has this demo. I can't believe that some of these younger, some of these companies don't want to just buy you to get the younger demo.

[Ryan Reynolds]

You know, we're focused on delivering durable growth quarter in and quarter out, regardless of the environment and doing it by driving product innovation and brand building to become a household brand name. It's been a formula that's been working for the last seven and a half years and we're going to focus on that and let the rest take care of itself.

[Jim Cramer]

Well, I'm glad that I was with you, particularly when it was four or five and everyone was telling me that you were not money good. And I knew, I knew that Anthony Noto has always been money good. Anthony noto is the CEO of SoFi. Hey, it's great to see you.

[Ryan Reynolds]

Great to see you, Jim. Have a great summer.

[Jim Cramer]

You too. We have money's back yet to the break.

[Keith Lansford]

Coming up, Amgen's weight loss drug results are weighing on company shares. So is it time to slim down or bulk up on the stock? Kramer digs deeper into the company's potential.

[Jim Cramer]

Next.

[Keith Lansford]

Trading at Schwab is now powered by Ameritrade. Unlocking the power of thinkorswim. The award winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on thinkorswim desktop with robust charting and analysis tools all while you uncover new opportunities with up to the minute market news and insights. ThinkOrSwim is available on desktop, web and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn [e-mail] trading Ryan Reynolds here from Mint Mobile.

[Jim Cramer]

With the price of just about everything going up, we thought we'd bring our prices down.

[Keith Lansford]

So to help us we brought in a reverse auctioneer which is apparently a.

[Anthony Noto]

Thing Mint Mobile unlimited premium wireless 30. 30. Better get 30, better get 20.

[Ryan Reynolds]

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[Jim Cramer]

Better get 20. 20.

[Anthony Noto]

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[Jim Cramer]

15, 15.

[Anthony Noto]

Just 15 bucks a month.

[Ryan Reynolds]

Sold.

[Keith Lansford]

Give it a [e-mail] Switch upfront payment of 45 dollars for a three month plan equivalent to 15 dollars per month required. New customer offer for first three months only. Speed slow after 35 gigabytes of network's busy taxes and fees extra. See mintmobile.com.

[Jim Cramer]

At the beginning of this week, the American Diabetes association held its 85th Scientific Sessions Conference in Chicago where we got some major updates on these revolutionary GOP1 diabetes and weight loss drugs. Eli Lilly is making progress with a pale version. Remember, it's just injectable right now. Novo Nordisk working on a new version of its obesity drug, although the stock didn't get any credit for it. But we got some surprisingly interesting data from Amgen, the quiet biotech giant that's been working on its own GLP1 drug for diabetes and weight loss. Unlike Mounjaro or Ozempic, which needed to be injected once a week, Amgen's Maritide is one shot per month. I prefer monthly over weekly when it comes to injections. Any day before this week, these guys hadn't been able to generate much excitement for their GLP1 platform. They reported some okay, phase two trial data on maritime back in November, which showed 20% average weight loss over a 52 week period. But that's basically in line with what's already on the market. In fact, the Stock plunged nearly 5% that day when the news broke, and then it spent over a month going lower for finally finding bottom of January. Since then, it's been a bit of a roller coaster through mid March and then coming down through mid May before rallying again going into the American Diabetes Association. Many people thought there might be something really big. So what did we learn when Amgen presented on Monday afternoon? First, the market didn't like it. The stock sold off hard in response. Let's talk about the actual data that people sold it off of this. This was simply the full data from the Phase 2 clinical trial that they highlighted November, meaning we knew the headline numbers about 20% average weight loss for people with obesity, but not diabetes. 17% average weight loss for people who have both obesity and diabetes. There were no weight loss plateau after the initial 52 weeks, indicating further weight reduction is possible after the first year. The safety profile was fine, with one teensy tiny exception. It seems like Maritide almost inevitably made you puke. If you started off on the highest dose. That said, there was some genuinely new information too. I'm talking about the phase one trial data from the separate trial studying much lower starting doses of maritide with different escalation schedules. Far less vomiting at the low doses. Now Amgen is doing a 72 week phase three trial studying Maritide using three different starting doses. Listen, this is really important because it seems to go down easier when patients start at a lower dose and then ratchet up gradually. So what exactly does this mean for Amgen the stock? Again, Wall street was not impressed when Amgen published this data on Monday afternoon. The stock dropped an incredible 15 points in just a few minutes, finishing the day down almost 6%. But over the past two days, the stocks recovered a big chunk of the ground that was lost. So maybe there's something good here. People sold this thing Monday because they were worried about what's known as the tolerability data. We already have two very effective GOP test one drugs in the market that don't make 90% of patients puke. Then again, when doctors prescribe Mounjaro and Ozempic, they typically start you at a low dose and then gradually raise it. So I don't know why Amgen even had some arms of the trial. Start by pumping patients full of a high dose. Seems like you'll advise an ill advised move. At the same time, I think Amgen was hurt by the encouraging data from yield from Eli Lilly's GOP Dash 1 pill. Again, we've already got two very good GOP Test 1 shots. So if you want to break into the market, you need to do something better than Eli Lilly or Novo Nordisk. It either needs to be more effective or have fewer side effects or come in a more convenient package. This is what you got. You got to beat them with maritime. Amgen has a monthly shot instead of a weekly one, which is a better package. But Lilly's new GOP1 drug is a pill you take once a day. People fear needles in this country. They always rather take a pill. But both drugs demonstrated some pretty strong efficacy, meaning they seem to work just as well as the existing drugs when it comes to weight loss and controlling diabetes. So the question is, would you rather take one shot per month or take one pill per day? I know I'm more of a pill guy, but I can see how the monthly shot might be easier. The problem is Amgen's data says that their monthly shot has that very high chance to cause vomiting. And that's why the stock sold off hard. But again, I'M pretty sure that's because Amgen designed some arms of their clinical trial in a way that seems, I don't know, ill advised. They just started some people on the highest dose rather than gradually ramping it up. I know someone who did that with Ozempic and they were projectile vomiting for days. That's one off. It's anecdotal, but it happened. When you look at the new tolerability data from studying maritide at lower doses with a gradual ramp up, it looks much more appealing. There's no reason why Amgen can't figure this stuff out because it's already how the GLP1 is prescribed. And look, if you take a step back and think about what Amgen is trying to do here, you can understand why the trial data ended up this way. They're trying to make an injectable GLP1 treatment that you only need to do once per month with similar efficacy. So they almost have to give you a dose that's more powerful than the weekly shots from Lilianovo nordisk. All these GLP1 drugs come with some gastrointestinal issues. Some of course their stronger dose made people puke. I also know that they're working on one that you only have to take four times a year. Now who knows what happens? That might be your concern. We may not see maritime get FDA approval and make to the market until late 2027 at best. Remember, Amgen just started their phase 3 clinical trial for this one. Lilly on the other hand, is hoping to submit its GOP1 pill for approval by the end of this year. Now Anton is very confident that their phase three trial will be successful. By the time 2027 comes along, millions of people probably taking that Lily weight loss pill. That said, the stock now sold off to the point where I would not bet against it. I just don't know. I don't think that new maritime data is bad enough to justify this decline and now get a bargain. That's right. Amgen is a bargain basement price. 13 times earnings. Eli Lilly trades at 36 times earnings. And while Louis is a great stock that certainly deserves a premium, we own it for the child trust. Talked about it today at our conference call. I think Amgen has gotten too cheap by comparison. This is still a big biotech company with mid single digit earnings growth expected this year, not to mention potential upside for this GOP Dash one drug down the road. Here's the bottom line. We got plenty of American plenty of data from this American Diabetes association conference that ended earlier this week and I think Amgen's trial results were misunderstood. Good. The stock did not deserve to get hit this hard. Lily. Still my favorite way to play the gop this one story. But if you're looking for a bargain, you could do a lot worse than Amgen. I feel we should take questions. Why don't we go to David in Florida. David boy Jim. Booyah. I've been watching over 20 years. I've been watching show for 20 years. Congrats on your show. Thank you. 20 years. That your cadre? Your cadre.

[Anthony Noto]

I took a long position on Marvell last week and shortly after the Insiders.

[Jim Cramer]

Were trading $21 million of the stocks. But three of the four brokerage houses have a rating of 90 to $105. Buy.

[Anthony Noto]

Of course, my brokerage house has a.

[Jim Cramer]

Huge sell on it. F. What say Marvel Technology. They have a cell. That's just ridiculous. Marvell's excellent company and they want a lot of business for some of the hyperscalers. I don't know. That's crazy. Matt Murphy is doing a remarkable job. The stock is starting to act right. So by the way, I'm leaving. Hoover is amd. So I think, Dave, you're on the right track. Owning Marvell and that brokerage firm should rethink their negativity. All right, look, I think the trial results we got from Amgen Shoe. Just one drug I'm calling Misunderstood. Eli Lilly. Still my favorite way to play the trend. I mean, obviously we had one for the chopping trust. But Amgen could be bought here at a bargain price for potential upside ahead. There's going to be a lot of these drugs people. Now manmoney. What do we got? We got an exclusive. With paychecks plummeting after earnings, investors, maybe they're getting another buying opportunity like Amgen. Let's see, I got the CEO, then a note act this morning called semis the new oil. But where do I come down on that thesis? I'll share my thoughts, of course. All your calls. Rapid fire in tonight's edition of the lightning round. So stay with payment. All right. What the heck happened to the stock of paychecks today? Payroll processor now sourced. Human capital management company. They cut one out of every 11 paychecks in the private sector. This morning Paychex reported what the street thought to be a mixed quarter in line earnings paired with oh so slightly lower than expected revenue, which would have been fine, but they also people thought that maybe their full year forecast for revenue little light. Got to find out on the Other hand, their earnings forecast was fantastic. It seems crazy to me. The stock plunged 9% today in response to those numbers, making it the worst performer the s and P500. I mean, some of this disturbance might be because the company recently closed on a $4.1 billion acquisition of Paycore, a company, you know, I like very much. And maybe that makes their, their financials a little harder. Understand today, 9% sellers feel success would be. But let's check in with John Gibson, the president CEO of Paychecks, to get a better read on the business and the broader economy. Mr. Gibson, welcome back to Money.

[Anthony Noto]

Jim, thanks for having me back. Well, you know, John had told me there'd be days like these.

[Jim Cramer]

Yeah, well, look, let's, let's puzzle through this. And I like that because that's where I am. I went through everything without looking at the stock price because I like to do that. I like to think what would happen. And I saw there were some numbers that seemed, well, you know what that goes a paycoin that might be a little bit harder. But the margins were really good. The revenues were really good, the retention was really good. The things that I look at, okay, the ones that forecast the future best. Am I looking at the, am I looking at the things that are too positive and not put, and not thinking enough about the negatives?

[Anthony Noto]

Well, Jim, I look, I think it was to your point. There's a lot of things that could confuse people about our results with both. The Paycor acquisition kind of mixing some things up when you look at it from the quarter perspective was in line with expectations. We really had a solid financial performance this past fiscal year and we made a strategic, a big strategic progress with the closing of Paycor. And then we completed the first phase of all the integration activities in the first quarter. As you said, we had double digit revenue and adjusted operating income growth in the quarter, full year organic growth. If you take out a compare of the RTC program, we continue to deliver constant paychecks, type of deliverables. And then you mentioned margin expansion. We expanded margins. You take the acquisition out 250 basis points reaching 42.5%. That's way above anyone else. You said we improved our retention rate year over year. We raised the expectations on cost synergies to $90 million for the full fiscal year and then for next year. We just entered our new fiscal year in June. Our revenue guidance for next year is between 16 and a half and 18 and a half percent and adjusted earnings is 8 and a half to 10 and a half and the consensus was 8. And we committed to 43% margins next year adjusted basis. So look, I look at those numbers and I feel pretty good about what we accomplished last year. And I, and I personally feel very confident about where we are it being positioned going into this fiscal year.

[Jim Cramer]

I could not agree more. I felt that I thought the stock was going to rally into the close because it was so ludicrous that it went down so much. So tell me what it's like working with paycorp. How are we integrating housing, who you keep in, how do you keep the morale going? Because you're not a, you have a very good culture there and I want to know how you're integrating.

[Anthony Noto]

Yeah, Jim, that's, that's one of the things I've probably been most happy about is the integration of the two companies from a cultural perspective. As you know, quarter when we talked, we had been doing a lot of planning jointly with some of the senior members of the team. Two members of the senior team have joined our executive committee and we actually, because of the integration and feeling of strong culture, we decided to move more rapidly. So immediately after the close, over the six weeks we reconfigured the sales and marketing organizations across the country. We reintroduced two programs, a partner plus program for our brokers. We, we've already signed up a thousand brokers to help begin to take our message to the marketplace. We rolled out a new portal for accountants, car Paychecks Partner Pro. And we've basically expanded our sales coverage going into this fiscal year. We did all of that in six weeks. And that really is a testament to the great work that the team did jointly together and our confidence that together both the teams, Paychex and Pay Core are stronger and better together. And like I said, I think we're very well positioned to deliver stronger returns and long term value for our shareholders.

[Jim Cramer]

So how's the client base doing? I know that you have such a great view because of the small business employment I saw you on Squawk, but I didn't understand this micro bankruptcy issue. Is this something I should worry about?

[Anthony Noto]

Yeah, Jim, look, as I said, our, our, our client retention was actually up year over year. And I would say if you absent some anomalies we saw in the fourth quarter, which I'll talk about, we would had a fabulous retention year. So I think the value proposition we're delivering is fine. What we saw in the fourth quarter soon after Liberation Day was a spike in bankruptcies and financial distress in the micro segment. Think, think entrepreneurs kind of small businesses now what I will tell you that's not uncommon. When we see an external shock, people just kind of throw it in. The other thing that often in that time of year can happen is you have a lot of seasonal businesses, think landscapers, lawn people that all of a sudden are about ready to get back in the business. They may look out in the future and say, you know what, I'm not going to do it this year. And they shut down their business. So I'm not overly alarmed by that. When you look at our index in May, we saw good moderate growth. We see no signs of recession. And Jim, next week when announced June, but I'm going to give you an early read. I think what you're going to see in June is exactly the same thing. Moderate and stable growth in small businesses, continued deceleration in wage inflation. Look, I think there's a lot of optimism in small businesses right now. What they're waiting for is clarity. And I think if we can get some clarity on taxes, clarity's on tariffs, I think that there's going to be a lot of optimism and really propel growth in small businesses.

[Jim Cramer]

Going into the, with your connections at the Fed because of the work you do, you're sharing this 4 year low 2.77 wage inflation number. Right. Because that's a number that would make the president say, hey, listen, here's a fact about why you should cut, not just jawbone, but here's a fact.

[Anthony Noto]

Yeah, I think, Jim, look, I think the Fed, Fed chair made some comments in Congress yesterday or two days ago. I've kind of lost track with time, but I think he made some comments relative to the fact that one of the challenges the Fed has right now is that you look at the underlying data and probably have some things to be pleased about and then they have this uncertainty of what are the impacts or how is the whole tariff thing going to resolve itself. So there creates a degree of, well, should we move or should we not move? As I said, clarity is important. That's one of the things we decided to do with our integration with Paycor. We decided let's move because what we could have for our employees, our clients and our strategic partners was a lack of clarity. So we got it all out of the way in the fourth quarter so that they had clarity going into this fiscal year. I would give some advice to our policymakers. Let's bring some more clarity to the situation and I think we'll see entrepreneurs take advice.

[Jim Cramer]

The analysts who cover, they look at the clarity that you're Providing. Because that's why the stock should go higher. John Gibson, presidency of paychecks. John. Well explained.

[Anthony Noto]

Thank you, John.

[Jim Cramer]

Everybody's back in.

[Keith Lansford]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next. It is time. It's time for the light rope Christmas. I said about my advice I'm doing. Of course not. Question. And then the lightning round is over. Are you ready? Steve died. To the Lord, I'm crazy. Let's start with RJ In California. RJ hey, Jim. How are you doing today? Okay. RJ how about you?

[Keith Lansford]

You know, hanging in there.

[Jim Cramer]

I was hoping that the market could.

[Anthony Noto]

Have shown us what it did yesterday.

[Jim Cramer]

Can't be great every day, but we did well. Let's go make money together. What do we got? Hey, I wanted to understand your thoughts on APLD Applied Digital. Okay. This is high performance computing infrastructure and high performance computing is on fire. That company doesn't make any money, but I think it's a very good spec. Let's go to Jim in Texas.

[Anthony Noto]

Jim, hey, how are you doing? Third time caller, addicted listener. I got some mad money. I bought this position, A T, S.

[Jim Cramer]

I wondered what you thought I'd got. Okay. All right, all right. Okay. Listen, sunshine, that stock is up like 50. Yeah, the stock is straight up from 20s to the 50s. What we have to do is tomorrow we gotta ring the register a little bit and say to ourselves, congratulations, and go buy yourself something fabulous. Okay? Cause you just hit it out of the park. Now I need Carter in Tennessee. Carter. Jim, what do you think of Docusign? You know, I thought the last quarter was good and nobody liked it. I swear to God, I thought all the different innovations were good. People thought the revenues were too weak. I'm gonna go with the flow and tell you it's time to sell. Let's go to Tom in New York. Tom, good morning.

[Ryan Reynolds]

Good morning.

[Jim Cramer]

Evening, Jim. Well, whatever. I'm fine with. Morning. What's happening?

[Anthony Noto]

I was listening to you and David.

[Jim Cramer]

Speak about enterprise software this morning, and on that note, I'd like to get your thoughts on workday. I'm worried. There's a lot of companies coming for workday and I don't like that. I think that what happens is we begin to see what's happening to Salesforce right now, where people just don't want to own Salesforce. So I want to stay away from workday. I got enough pain right now with Salesforce. Now I want to go to Sam in Massachusetts. Sam, Jim, how are you? Doing? I'm pretty good. You know, I'm kind of losing my voice. That's my worry. But I. You know, I'll come in strong tomorrow. Regina will yell at me and get me some. Some tea. No, she won't. I'll get her. She deserves everything. She deserves everything. Well, whatever. Yeah, no, you've got a great.

[Anthony Noto]

Got a great staff and.

[Jim Cramer]

Glad they got me home today.

[Ryan Reynolds]

Got a Danny here.

[Anthony Noto]

You know, the company has a history.

[Ryan Reynolds]

Of making really good acquisitions.

[Jim Cramer]

And it's historically been very resilient through times of uncertainty.

[Anthony Noto]

So looking at it right now, it.

[Jim Cramer]

Looks like it's down 25% year to date.

[Anthony Noto]

We've got an aging population, health care and secular bulk.

[Jim Cramer]

So curious what you think about Danny. Sam, you got to listen to me because I spent a lot of time talking about this in my club. Call today, we can listen to replay. I am horrified about what's happening at Danaher. Everything you said is true. But the CEO, Rayner Blair, I mean, what is he doing? I mean, the guy has done nothing. This stock has been such a disappointment for me that I just have to stand. I mean, I would get on this desk right now, if I were younger, I would jump up, I would scream and I would say, dan or her make changes now. But instead I just said that. I think that was pretty emphatic. Let's go to Michael. New York Michael. Booyah. I don't think it's dark. What you think of it?

[Anthony Noto]

It's called Ash.

[Jim Cramer]

SMM. Which one? The old St. Mary Energy. All right, listen to me. This thing, I saw it downgrade today. They are doing not well. Okay, I think you should go buy Kotara if you want an oil that is not a company you want to own right now. I'm sorry. And that, ladies and gentlemen, conclusion of the Lightning round.

[Keith Lansford]

The lightning round is sponsored by Charles Schwab.

[Jim Cramer]

Is it possible that this red hot semiconductor rally is only just getting started? This morning, Ben writes. Melius Research, perhaps the most provocative and thoughtful analyst of the moment, put out a piece that tries to relate to the current remarkable move in the semis. They're driving this whole market to the incredible energy rally back in 1980. In those days, oil made up 30% of the S&P 500. Right now, the semis make up 12% of the S and P in video and broadcom account for 3/4 of that themselves. What he wonders if the rally broadens out to other semis, what could happen? There's certainly enough use cases for them from the data center. To robots, to orders, to the Internet of things. It's an interesting idea, but first I want to say that Having traded in 1980, the energy stocks were going crazy back then because of some oil supply shocks stemming from the Middle east and Jimmy Carter's removal of price controls the year before inflation was high, oil was scarce. The big oil companies were pretty much the only part of the economy that was growing. But they were growing by leaps and bounds. It was an anomaly that lasted for some time. And if you didn't own any oil, then you didn't know what you're doing. So I get the comparison because that's how the semiconductors right now feel. If money managers don't want to be left behind, they can't stop buying these things. Perhaps that's what we're already seeing now with the ascension of AMD Micron, Marvell as well as the semiconductor capital equip makers like kla, Applied Materials, Lamb Search. But there's one very big difference. Oil, alas, is a commodity. Those stocks roared in 1980 for reasons that had little to do with the companies themselves. That's certainly not the case with semis. The companies are beholden to the broader economy. And while our chips dominate the world, that doesn't mean they should dominate the S&P 500. Right now the tech sector technically accounts for about 32% of the S and P. That number would expand to 43% if you included Metta, Amazon and Alphabet, three tech titans that somehow aren't considered tech companies by the keepers of the index. Go figure. If the semis became like the oils in 1980, then tech would be account for about 60% of the S&P 500. I think it's unrealistic. We already have the Nasdaq for heaven's sake. It would become self fulfilling where money managers would keep buying in Video and Broadcom because they keep becoming bigger in the index. And that kind of thing can't last. I just think we've got to curb our enthusiasm a little bit. And everyone knows I love the sector. It's hard to accept that a stock like in Video, currently the largest company in the world, could double or even triple if prices bullish forecast comes to life. But that's what would have to happen again, I think the world of Nvidia. But I don't see it tripling from here. At least not anytime soon. Of course, over time, tech can certainly become a larger percentage of the S and P and the semis can keep moving up in value. But the comparison to the oil boom. That's too much for me. Plus, it's an ominous comparison because after 1980 we had a multi year oil glut. If you just go back a few months, we saw what happens when the economy ticks down or when the president presses the tariff issue. The semis get crushed. So if you really feel the need to double down on the group, at least wait for the next big sell off before you pull the trigger. Oh, and congratulations to Nvidia for reclaiming the crown of the largest company. It is a stunning achievement, I'd like to say. As always, more marketing Summer. I promise I find just for you right here on My Money. I'm Drew Kramer. See you tomorrow.

[Keith Lansford]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their 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 Jim Cramer 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 com. Trading at Schwab is now powered by Ameritrade Unlocking the power of thinkorswim. The award winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on thinkorswim desktop with robust charting and analysis tools all while you uncover new opportunities with up to the minute market news and insights. ThinkOrSwim is available on desktop, web and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn [e-mail] trading.