← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 6/26/25
00:44:19
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:01]
Fidelity Representative
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- [01:01]
Dell Representative
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- [01:56]
Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. I do make friends. I'm I'm just trying to make a little money. My job is not just entertain, but to educate and teach you. So call me. 1873 CNBC tweet Mitch Mcramer if you can bring yourself to hate this market, then you hate any market. That's how I feel after looking at some of today's top performers in an otherwise strong session where The Dow gained 404 points, S&P climb.8%, closing a smidge below its high, and The Nasdaq jumped 0.97%, all helped by a statement out of the White House that said the upcoming July 9th trade deadline wasn't critical. Good news because we have only seen one deal so far with the uk and we're getting more than a tad nervous about what would happen two weeks from now. For much of the tremendous run over the past decade, critics love to point out that most of our gains were coming from a small cadre of tech stocks. First it was Fang, Facebook, Amazon, Netflix and Google. Then it became the magnificent Seven Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. Over and over again, as the market roared higher, we were told that the rally was so narrow that it could not be sustainable. You couldn't have a handful of companies that were worth trillions of dollars, then hundreds of stocks in the tens of billions, but nowhere near the valuation of these tech titans made no sense. They told us it was only a matter of time before these false idols would be smashed and your gains would go up in smoke. I get that view. I've heard it all my life. There was a time I even believed in it. But if you're actually in the market every day from scratch, trying to notice what doesn't work, what can get you hurt, what can keep you out of tremendous gains, then you know there's another way this situation can play out. Sure, narrow rallies can collapse in on themselves. That can happen. Or you know what they can also do? They can broaden out. And then the market keeps jugging higher and higher, chugging higher and higher without the sages who told me to get out. See, I learned this lesson way back in 1988. I know, a long time ago, but we had one of those summers where only a handful of stocks led the market. I grew increasingly worried that I was riding the same stocks over and over again, especially yes, tech stocks. I was haunted by the notion that I was somehow whistling past the graveyard because of bull market with so few participants. Just had the collapse under its own weight. Sell, sell, sell. I used to hang out with a lot of other portfolio managers, hedge fund hotshots, you know, the analysts, they all said the same thing. Too narrow. You had to do some selling, you had to do a lot of selling, then ultimately you had to get short. And so, because I was young and not particularly discerning, I took their advice. I sold many of my longs and began to put my put options on stocks that were similar to my biggest winners, kind of as a hedge against the looming crash. Why not? We just had a crash year before, why can we have another one? Heck, we were do what we. But the crash never came. Instead, a narrow summer rally developed into a wider fall upswing and then turned into a full bore multiple sector stampede. Fortunately, I was able to sell the put options, but many of the stocks I'd hedge went up and the stocks I'd shorted moved up to that canceled out my upside. I finally got in long enough, bought enough stocks in the early late fall that when I stopped talking to other Money managers decided to take my own counsel. Well, I say I made a lot of money and I never again let the breadth of a market drive me into a. Into a short stance. Instead, it was the opposite for me there. Going forward, I was always on the lookout for the kind of widening of leadership that can crush the shorts like the widening we had today because I never wanted to get steamrolled by a runaway bull again. Right now we have a runaway bull for certain. In fact, it's a bull jailbreak, for heaven's sakes. And the bovines are running rampant, trampling the bears who were possessed with the narrow nature of what brought us this hide to begin with. They were staying short. They still are probably in turn. Look at the other totems. Look what's working. How about stocks like J.P. morgan and Goldman Sachs to stalwart financials, both going crazy or Caterpillar and Boeing doing quite well. The communication starts plowing ahead. Sometimes, though, it helps just to look at what's working on a given day. So intercession. I called up the top 10 winners in the S&P 500 today just to see how broad the list might be. It proved that what I learned in 1988 was a stock market life lesson. One of the few benefits of getting old. The one I'm giving to you now at the top of that list, that sainted list today. And face energy. Oh, boy. A roughed up solar company. Oh, it's driving that possible congressional break that could preserve some solar tax credits. Then it was Freeport McMurray. That's the copper miner. Copper has been a loser for years, but periodically the Chinese order tons of it. We buy it in bulk for the data centers. I don't want to report, even as Copper is up 25% for the year, reports a trading vehicle. We don't do that around here. But it certainly demonstrates the diversity of this top 10 list. Next is album. This is a chemical company, produces lithium. I don't know where this one's coming from. We haven't suddenly seen a surge in electric vehicle sales that I've seen or any tax credits in the grassroots bill. It's broadening out. Mystery could be happening. Then we've got McCormick, the spice company. This one's a shocker because most of the food stocks have been given up for left for dead. Turns out some parts of the food industry are getting it right. Their stocks are going up. We've got McCormick on tonight to find out more. Next coinbase. All right, the cryptocurrency Stocks, they just never want to quit. And this is a group that matters even if older portfolio managers don't care. Look the other way. I think this one's going higher to who knows where. There was even a tech stock and it isn't a magnificent one. We're talking about a risk to networks which makes networking equipment long time Cramer fave. After that last quarter, some thought that the risk had lost a step. I didn't see it that way, but you had to wait a bit before it seemed to matter. There was another data center play this time it's Super Micro, an important partner of video. Now I think that not in that Super Micro. I think Dell is the right investment in the space. But there's no denying that the stock is doing quite well. Then there's energy. I mean, it's part of a small group of utilities known for the relatively clean power. And a lot of tech companies want clean energy for their data centers. Energy works directly with them and it also partners with GE Vernova, a capital trust holding that makes the turbines for their power plants. We then had insight. That's a biotech company. It just got a new CEO, Bill Murie. He's an industry veteran known as a dealmaker. Makes sense. Murray was previously the CEO of Karuna Therapeutics which he sold to Bristol Myers for a very nice premium. That better start working soon. Before that he was chief commercial officer at Allergan. It's a company famous for its dealmaking. Finally, rounding things out, we have apa. The old Apache can run, but it can't hide. This is an oil and gas company, primarily natural gas. Patch has been a huge disappointment of the years. Maybe now it's apa. It won't be. Well, anyway, maybe M and A is picking up. I had to wonder whether something going on here because otherwise it shouldn't be going up. I still prefer Kotara for natural gas. Still no denying that patches cheap versus assets and no denying that it's not a tech company. Here's the bottom line. For years we were warned that our rallies were too narrow. Now we got a broad leadership group. Today was the solar, couple of minerals, crypto platform, two data center stocks, a utility biotech and a natural gas producer. That's what I call a real bullish rally. Everyone who warned you that the market was too narrow to go higher is now either closing out their short positions or getting their faces ripped off. Neither's a good thing. Bottom we go to Corey in Tennessee. Corey.
- [09:51]
Caller
Hey there. Good evening, Jim.
- [09:53]
Jim Cramer
Good evening.
- [09:55]
Caller
First I want to say thank you for your stock insight. I'm a more recent viewer of your show than probably most of your callers, but I've been watching for several months now and really appreciate your take on things.
- [10:06]
Jim Cramer
Well, I am glad you joined us. I'm glad you joined the list of kramericans. We come out here every night hoping to have more population. You're terrific. Terrific. To add to it. How can I help you?
- [10:16]
Caller
Absolutely love it. I'm trying to iron out my conviction in Google at least in the short term. I currently hold a position, I'm a believer in the company long term. I think the company has a lot of great things going for it. YouTube, Waymo, Gemini, Cloud. I think they did start a little bit behind the competition when it comes to development and had to play catch up a little bit. But I think they've now not only caught up but are in my opinion poised to maybe be considered the leader among the competition. So I'm a believer long term. In the short term though, I do work well.
- [10:50]
Jim Cramer
Look, I do not think it's the leader and I do think that it's going to be challenged because it has to balance the basically its old Google Business with @ Gemini and I don't think that's going to work out. But I also, I was concerned about the Justice Department suit when I sold the stock. That was a mistake because I think that all that would ever happen is they'd break it up and then you would get YouTube, you would get Waymo and you'd get Search. So I don't like it, but I understand alongside Thesis today was a perfect example of a very broad market rally. Anyone who said the market was too narrow to go higher, they've got egg on their face. If they still have a face on Man Money Tonight I'm sitting down with the CEO of McCormick. We'll put some spice on that face after earnings to see if the company could add some spice to your portfolio. Then Deere's been on a terrible. What the heck is that about? I'm going to talk to the CEO first. Intuit just unveiled a virtual dream team and a one actually AI agents built to boost your portfolio. I am sitting down with the CEO fresh off this announcement and you're going to want to hear about it. So stay with Kramer.
- [11:58]
Dell Representative
Don't miss a second of Mad Money. Follow imkremer on X. Have a question. Tweet Kramer, madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-74-3 CNBC missed something? Head to madmoney.cnbc.com.
- [12:20]
Fifth Third Bank Representative
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- [13:17]
Dell Representative
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- [13:47]
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- [14:52]
Jim Cramer
Tonight after the close, we got some big news from Intuit, the consumer and small medium sized business software company behind TurboTax, QuickBooks, Credit Karma and Mailchimp with the stock that's been on fire since the report a quarter late last month. Now though, Intuit has announced a transformative new suite of artificial intelligence agents designed to act as a kind of virtual team for businesses, helping them save time, improve their decision making and generally do more for their clients. But what does that mean for the company and maybe more importantly for you and I the stock earlier we got to sit down with Sasangadarzi and he is the CEO of Intuit. Take a look. I think I've seen the future. I have looked at this virtual AI product that you have and I think if I were running a business and not a small business, but a small or a medium or even a large business, this is a game changer and I have seen a lot of stuff you've done, but I think this is the most important.
- [15:47]
Sasangadarzi
Well, first of all, it's great to be here, Jim. This is the biggest innovation we have ever launched and it's been five years in the works. And in essence it's a virtual team of AI agents and AI enabled human experts that will do everything for our customers from lead to cash. And it's a, it's a big day and I'm excited about how it will power and fuel the benefits and growth for customers.
- [16:09]
Jim Cramer
How many people is this replacing if you had your own company? And how many different interactions are there with actual AI using this?
- [16:18]
Sasangadarzi
Well, let me first start with like what does it do? And then I'll answer your question. In essence, the platform helps you manage from lead to cash. So we are launching a customer agent, a payments agent, an accounting agent and a finance agent, just to name a few. So what do they do? In essence, the customer agent helps the customer manage leads in Gmail, manage it through their pipeline, send an estimate and an invoice, give them our payments agent will help maximize their cash flow, help them get paid, give them access to line of credit. And all of these things, Jim, happen in a business feed. So we share what the actions are, the recommendations are with customers and we do all of the work for them. And here's the most incredible part. We have accounting, accounting agents that will also do all of the work for our customers. It will engage with our accountants, it, it will engage with the agent, it will ask the customer questions and automagically do the work for our customers all through a business feed. And really the thing I hear from customers as we've been, you know, we have several hundred thousand customers that have been on the platform before we go ga and the biggest thing I hear from customers is I don't have to use a bunch of apps. You're saving me time. I know how my business is doing. And by the way, you're consolidating my spend so I'm spending less.
- [17:35]
Jim Cramer
Less.
- [17:35]
Sasangadarzi
And it's really revolutionary. To answer your question around number of people, it depends on the business. If the business is growing, they can deploy their headcount to the biggest growth areas rather than hiring more. Because in essence, customers have been spending two, three days a week trying to manage all of their business. Now we do a lot of it for them so they can deploy their assets, which is exciting.
- [17:58]
Jim Cramer
I'm focused on this. And we got to talk about the businesses business is on fire is because many people claim they have a. I'm not kidding. They come in. This is the first time I've seen actual tangible evidence of using AI to make a lot more money and save a lot of money to save time. Now that is also that we got to talk about how TurboTax live. 47% revenue growth. I was looking for 20. I was at the high end. That too. Powered by a. Yeah.
- [18:24]
Sasangadarzi
Well, first of all, we had breakthrough through adoption this year. As you can imagine, the majority of folks, whether it's a consumer or business, will use a pro, will use a tax accountant to do their taxes for them. And we hire those very folks, but they sit on our AI platform. And so what we were able to do this year is have absolute breakthrough adoption. And as you said, our customers on TurboTax Live, which is connecting you to an Expert, it grew 24%, revenue grew 47%. And I just think that what's possible is ahead of us and it's all because of data.
- [18:56]
Jim Cramer
And one of the moments that I love best, in your conference call you talked about companies having people they're over digitized. Meaning go ahead, you say. Because I thought it was brilliant analysis.
- [19:06]
Sasangadarzi
So I spend 30, 40% of my time with customers, both businesses and our large accounting partners. And the biggest thing that I hear from them is they're over digitized. What that means is they're actually using like 10, 15 apps to run their business from managing leads all the way to cash. And the biggest surprise that I wasn't hearing three years ago, but today I hear is I'm spending more money. All of my data is trapped across all of these apps. So I spend more time trying to figure out what's going on in my business and I'm getting less benefit. And I think that's sort of where you started this discussion. That's the power of what we've launched, which is it's a one stop shop. A virtual team of AI agents and AI enabled human, human experts that will do all of the work for you so you can consolidate your spend and feel your growth.
- [19:49]
Jim Cramer
Now I would think that this kind of pampering of a business is what I would get if I spent millions of dollars on enterprise resource planning, which most small practitioners are never going to get. But you're giving it to them.
- [20:02]
Sasangadarzi
Yeah, I mean we win based on. Everything I hear from customers is based on experience, price and total cost of ownership. I mean the reality is with just depending on the size of your business, you can consolidate all of your spend and from lead to cash, run your entire business in one place. And little things, you and I were just talking about this before we started. Like you can have a handwritten note or a picture of a receipt. You take a picture and our platform will create an estimate, an invoice, it will do the accounting for you. And imagine the amount of time that you save by very basic things like uploading files, us being able to read your Gmail, including create estimates for you. It's revolutionary. And by the way, it's hard. We've been at this for five years because the accuracy of what we do matters a lot. And it's really amazing to have our AI agents and AI enabled human experts work in harmony to deliver the benefits and the experience.
- [20:53]
Jim Cramer
I'm sure there's still people out there who say, well wait a second there, there's no way an accountant would ever recommend this. They would want that business. Isn't it the opposite? You flip the whole paradigm.
- [21:02]
Sasangadarzi
Well, our accountants, as we've been walking them through the platform, some of them have been part of our process of beta and alpha. What the thing they've shared with with us is I can actually now do advisory work rather than doing a bunch of manual work cleaning the books, taking all of this files and receipts and figuring out how to put in the platform. You're doing it for us and I can actually advise the business. So it's good for them, it's good for the business and it's great for intuit.
- [21:28]
Jim Cramer
I would have to believe also that one of the things that you and I both know trick trips up most businesses, the government, and it's because you don't comply. This by itself would give you a lot of ability to be able to comply with all the state and fed tax organizations and all the other regulatory organizations because you got the documents right. In front of you.
- [21:45]
Sasangadarzi
That's right, because a business has to do their taxes. There's also payroll tax, there's sale tax, and you know, when you have the data investments that we've made, all the machine learning and gen investments that we've made, we do a lot of that automation. And if the we detect an anomaly or an error, this is where AI agents take over and will automagically engage with a human expert to get it right for the customer, which means less penalties.
- [22:08]
Jim Cramer
Credit Karma is doing incredibly well. You just got to tell us people, just people. I mean, I got people who check every debt. Now, I don't know if they should do that, but the numbers are pretty great.
- [22:17]
Sasangadarzi
Well, first of all, you know, we bought Credit Karma to integrate it with TurboTax. So we have one platform in one place that you can manage, you know, from credit building to wealth building. And all of the innovation the team is driving is what's driving the growth.
- [22:28]
Jim Cramer
Well, look, I'm sorry, you know, some people say what, you're a homer for this? Look, I used your stuff. I have a lot of small businesses. We would be helpless without what you do. But more importantly, we would be spending way too much money without you. And now with the AI, I mean, it is.
- [22:42]
Sasangadarzi
We're excited about the future.
- [22:44]
Jim Cramer
Congratulations. Thanks. Justin Gadar, CEO of Intuit.
- [22:49]
Dell Representative
Coming up, this agriculture play has been running fast as a deer. But can the stock continue to keep the pace? Kramer plows for answers next.
- [23:02]
Fidelity Representative
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 country@comcastcorporation.com Close your eyes, exhale, feel your body relax and let go of whatever you're carrying today. Well, I'm letting go of the worry that I wouldn't get my new contacts in time for this class. I got them delivered free from 1-800-contacts. Oh my gosh, they're so fast. And breathe. Sorry. I almost couldn't breathe when I saw the discount they gave me on my first order. Oh, sorry.
- [23:55]
Jim Cramer
Namaste.
- [23:56]
Fidelity Representative
Visit 1-800contacts.com today to save on your first order.
- [24:00]
Sasangadarzi
1-800-Contacts.
- [24:07]
Jim Cramer
The past 12 months have been incredibly chaotic, but one thing has been constant. Deere and company keeps chugging higher to higher, much like Bambi when he grows up. This Deere cannot be stopped. Over the past year the stocks rallied more than 35%, trouncing the 12% gain the S&P 500 over the same period. It's up 20% so far for 2025. This marks a huge change of pace for the farm equipment maker. Deere caught fire in 2020, but then traded sideways from early 2021 all the way through late 2024. In May of last year I told you that Deere was finally taking control of its own destiny. Even that might take out some take some time to play out. And in retrospect, that was a good call. So now that this stock's become a semi permanent resident of new high list, can it keep climbing? Funny thing about you. While the stocks roared over the past 12 months, the company has been putting particularly good numbers. In fact, yours reported seven straight quarters of year over year revenue declines, six straight quarters of earnings shrinkage. And we're not just talking about slight declines here. This is full on George Costanza style shrinkage. When Dear reported in February, their sales were down 35%, their earnings had almost been cut in half versus the year before. Oh my God. But even though the numbers have been hideous in absolute terms, Deere's results have consistently come in better than expected. How is it possible? Simple. This company is hostage to the agriculture market, which means their business rise and falls based on factors that they've got, let's say, no control over. They sell farm equipment, which means they're hostage to crop prices. Most farmers can't buy these big ticket items without financing, which means they're hostage to interest rates to Deer. Gets more than 40% of its sales from overseas, takes them hostage to currency fluctuations. Lot of hostages. So while the farm equipment industry has struggled, Deere keeps beating the estimates because this company generally does a great job of controlling what it takes, can control managing their costs well and calibrating their production and inventory levels to match the market environment. More important, the stock's been roaring because crop prices, interest rates and the dollar have finally started going in the right direction. At least from your perspective. When you look at some of the top agricultural commodities like corn, wheat, soybeans, what you see is that after a multi year bear market, prices have bought. At some point last year that hasn't necessarily translated into big rallies, thanks in part to the tariff turmoil. But they're no longer going relentlessly lower. At the same time, the US dollar has weakened dramatically. This is really important versus foreign currencies. Dollar is down 12% from its January highs, which makes Deere's merchandise cheaper when they try to sell it overseas. Big change there. As for interest rates, okay, they remain stubbornly high, which hurts Deere, just like it's hurt the homebuilders, the automakers and every other company whose customers need financing. That means that they need credit. But obviously something big changed last fall and the Fed became our friend. Even though we only got a few rate cuts before they stopped. The general consensus is that the Fed's on track to put through more rate cuts this year. It might not happen the next meeting. I don't think it will, but it's common. And if rates are headed lower, that's phenomenal for Deere's business. Plus, when these guys reported their most recent quarter in May, the numbers were quite a bit better. Relatively speaking, of course, Deere's earnings were down 22% year over year, which looks terrible in a vacuum. But in the previous quarter their earnings were down 49% and the latest numbers were actually much better than expected. Their sales were down 18%, much better than the 35% decline in the previous quarter, and substantially stronger than what the analysts were expecting. Remember, it has to do with analysts expectations, not the actual number. The actual number matters, but it's the expectations being beaten that really matters when it comes to the stock market. In other words, there's a feeling that Deere's financial results are trophing, that we're finally getting past the worst point. On their latest conference call in May, management was still pretty guarded about their outlook. They always are guarded. This company, it's very conservative. The rest of the year they were worried about the tariff situation. Pretty reasonable. However, they also offered some reasons for optimism, citing strong demand from US farmers, early signs of pickup in South America, especially Brazil, which is a big market for deer and even green shoots. In Europe, the company's order books are starting to look better. And it makes sense that the agricultural equipment business would. Bottom not too long after crop prices Bottom. Long story short, over the past 10 months, year's biggest headwinds have started turning into tailwinds. All while management has done an excellent job of controlling the things that are within its power. Plus, there are all long term reasons to like Deere that never, never really went away. This company is still the king of farm equipment. With best in class technology, they're using data analytics and even autonomous driving to make farms more efficient. They're pioneering that this is something that the analysts at Melius Research pointed out earlier this month when they updated Deere from hold by raising the price target on the stock to $750. That's bold call stock is currently trading at 5 away. Melia stated right at the top of their upgrade and I really liked it. Quote, the timeline just cyclical recovery into the market's appreciation for Deere's extraordinary position is still uncertain, end quote. But they argue that the company's, quote, leading position in ag tech will deliver transformational value to farmers and that the company will share in a meaningful part of that upside. And quote, in particular, these analysts like how Deere's advanced technologies come with recurring revenue because the high end equipment includes so much software. As Melius analysts put it. Quote, we see Deere's tech opportunities as differentiated with the best competitive moat we have seen and we don't think tech investors are here yet, end quote for explaining that the company's tech leadership will allow its stock to keep trading at a premium price. Earnings multiple. Good. I couldn't agree more. That's why I'm totally comfortable with Deere now selling for 27 times earnings. That's somewhat higher for a machinery company. Considerably higher than the S&P 500 P E multiple. But I think you can justify it given the tech angle. Plus, Deere is a cyclical stock and the sickles always seem expensive near the bottom. Bottom. It looks pricey because the earnings are at a very low level. But if crop prices can bounce and interest rates come down do, we'll be able to report much better numbers. So here's the bottom line. After years of trading sideways, this stock finally had a major breakout over the past ten odd months, even though dealers and markets are still in pretty rough shape. But the stock's working because the company always had great execution. And the agricultural equipment business is too turning around. That's why I think its rally so far can be justified and why I think it will continue to run. Let's take some calls. Let's start with Louis in Florida. Louis? Yeah, Jim, I've been watching your show for 20 years. Thank you. Well, thank you for watching for two decades. I'll take that.
- [30:43]
Caller
I'm retired.
- [30:44]
Jim Cramer
I don't need the money right now, but I'm a little concerned about my nice gains that I have in my energy positions. So my question is, do I hold or trim? Enterprise, Chevron, Exxon, triple. Okay, I'll tell you how I feel about the oil business. I don't like it, but I do like the dividends, because the dividends I'm willing to, to bless them. But if they didn't have good dividends, believe me, I wouldn't come near the group because I think that the group is just not in good shape. Let's go to Eton in Pennsylvania. Ton.
- [31:14]
Sasangadarzi
Hi. I have a question about estate stock that I bought at a high and then been a bit downhill ever since Target right now.
- [31:21]
Jim Cramer
Remember, we don't care on this, in this show. We don't care where stock is going. We care about. We don't care where it's come from. We care where it's going. And I've got to tell you, this stock, obviously everybody's got, almost every single person in the country has a loss in this thing right now. So that doesn't matter. It yields 4.6. I happen to think that it's been able to be it's ever since it got into the high five. When it came to the yield, it stopped going down. I think it will continue to be the case because they do have an excellent balance sheet. So I'm going to say you can hold it. I'm not going to tell you to buy it. Let's go to Milton in Indiana. Milton.
- [31:54]
Caller
Hey, Kramer, thanks for taking my call. United Health. United Health Care. I bought some three weeks ago half of what I was going to buy, like you suggest. Is it time to buy the other half or wait?
- [32:10]
Jim Cramer
Well, I've got to tell you, there's going to be what I think is a clearing event on July 29th where they're going to talk about it. And I think that you might have, look, you may have to pay up 50 points if it turns out it's a good event. But I'm not going to tell you to buy more right now. And why, because they had irregularities and irregularities mean to me that maybe it's more of a dice roll than you think. I happen to think, by the way, that Steve Hemsley, who's the CEO, I think the world of him. That makes me inclined to say keep the stock. But I can't take you to pound the table. I can't pound the table because in the end, UnitedHealth did some things that were wrong. And when you do something that is wrong, I do not put my name on your stock. I think things are finally looking up for Deere. And with the ag business turning around, I think Deere can keep winning. Watch where man Moneyhead. Including my exclusive with McCormick, one of today's big winners. How has the spice and flavor company been Backed into a changing consumer tariff landscape. I'm going to talk to the CEO then. Have you taken a look at the stock of Nvidia lately? You could have made a lot of money if you'd just done this one thing and I'm going to tell you what it is, of course. Calls light and loud. So much ahead. Stay at Kramer. This morning we got a tremendous quarter from McCormick, the number one maker of spices and seasonings. It took a lot of people by surprise. Wall street was worried that McCormick would be hampered by the volatile consumer environment, especially all that tariff turmoil. But these guys reported a strong quarter with in line revenue. Forced earnings beat off a 65 cent basis. Even though management only reaffirmed their full year forecast for the quarter, the stock still shot up higher because they explained how they were mitigating the cost of tariffs for the second half. I loved it. So did you miss this one or could their stock have more room to run? Let's check in with Brendan Foley. He's the chairman, president and CEO of Macquarie Crew. Brendan, wait to see your man. Money.
- [33:56]
Brendan Foley
Good to see you Jim. Thank you for having me.
- [33:58]
Jim Cramer
You started out by saying we are a growth oriented company. At one point I would have said what does that mean? But in your industry this is, this is just stellar.
- [34:08]
Brendan Foley
You know, Jim, we are a growth oriented company. And think about us, it's just completely focused on flavor. I mean the best way to describe McCormick is while others are competing for calories, we flavor them, you know, and we're driving some really strong volume led growth across our business. And we're investing in our brands, you know, we're driving more brand marketing, more innovation, more distribution. We had a good quarter, another good quarter, really driven a lot by consumer volume growth.
- [34:31]
Jim Cramer
Incredible. People just say, well wait a second, gop, just one is going to be the death of you, the new younger consumer who doesn't want to have their body wrecked by additives. That'll be the death of food. And people are eating more at home. Well, those are all yours. They go to your, your strong points. Yes.
- [34:49]
Brendan Foley
You know, we're focused on meeting the consumer where they are right now. And that's always been driving us. When we look at our consumer portfolio, we think we're really, you know, positioned well for the future, both the short term and the long term. Because this product portfolio really does help you eat healthier at home. But also our flavor solutions business benefits from this. It's a growth opportunity for us right now.
- [35:08]
Jim Cramer
We do know that when we look at all these, that the amount, the number of calories your stuff produces is almost nil. It probably takes more, probably takes more to eat your stuff than it is the calories they produce.
- [35:20]
Brendan Foley
You know, products like French's mustard or Frank's Red Hot, there's not a lot of extra stuff in there. And they're really just quite, you know, high integrity products. We look at the ingredient statement.
- [35:29]
Jim Cramer
But you did put in your conference call that the cpg, the center, store, center part of the store, they're still not doing well. And they are some of your customers.
- [35:36]
Brendan Foley
You know, we're still seeing a lot of growth. The across, across the store. The great part about McCormick is we're end to end flavor. And so we play in so many different areas. When you think about the world of flavor, whether it's the consumer business, you know, we're flavoring food and beverage brands across the, you know, across the world. But we're also in the food service industry too, and we still find growth. You know, we're working with a lot of emerging brands right now that are fast growing and they're bringing a lot of those health benefits to the consumer shelf. And so we're helping them flavor their products. Everything needs flavor, Jim. And so this is why a growth opportunity for us. We're also seeing it in food service.
- [36:08]
Jim Cramer
Well, I also saw apac, Asia Pacific. Nice little turn.
- [36:12]
Brendan Foley
We are. You know, our business in China is starting to show some gradual growth.
- [36:15]
Jim Cramer
I remember when it hurts you, I mean, I would speak to your predecessor. Oh, no, China. But it's showing growth.
- [36:22]
Brendan Foley
It's always a long term game.
- [36:23]
Jim Cramer
Right.
- [36:23]
Brendan Foley
You know, when we look at it, we're also seeing some nice growth in our QSR business there too in Quick serve.
- [36:27]
Jim Cramer
Yeah, well, that's good because that was something we were concerned about too. I mean, but you have such a balanced portfolio. I always felt that not one of these can take you down. No one. It hasn't happened. And it just kind of goes like this. Yeah.
- [36:39]
Brendan Foley
It is a portfolio that allows us to take advantage of all the different opportunities. No matter whether people are eating at home or away from home, we have an opportunity to still find growth across the world in flavor.
- [36:49]
Jim Cramer
Well, now you're a person who knows growth, you know, you know, taste, you know what people are looking for. But whoever thought that with your 17,000 unique items, you have to get from 90 countries? I mean, I can't. Must take you weeks just to calculate the tariffs.
- [37:02]
Brendan Foley
Our team did a lot of work around this. You know, we've done a nice job Mitigating the tariff impact as we think about through, you know, 2025. One thing about our business, it's important to understand when you think about all the products that we're selling the United States, you know, over 90% of them are made in the United States. But we have a great majority of those ingredients we have to source outside the United States because we can't grow them here overall. So this is a big area. Agricultural impact is probably what we're focused on when you're looking at tariff impact yet.
- [37:30]
Jim Cramer
No, I mean, it seemed like that when I looked at some of the things that you have to do with agriculture. I mean, it's not like you can necessarily switch from one country to another, can you? Or is it, does it work like that? I mean, get it in Brazil instead of get it in Argentina, that kind of thing.
- [37:44]
Brendan Foley
You look at a product like black pepper, we can source that from many different countries. And so it might be, you know, in Brazil, it might might be in Indonesia or Vietnam, but we're going to source that from many different markets around the world.
- [37:54]
Jim Cramer
Now let's talk about what's going on with your others in your industry. They're being called in by HHS, by Bobby Kennedy Jr. Saying, listen, got to get rid of these colors. But the idea that maybe Fruit Loops is bringing people to making people eat candied sugared stuff. I don't see your portfolio having a problem with HHS and the things that that Bobby Kennedy Jr. Is talking about.
- [38:14]
Brendan Foley
You know, our portfolio is really allowing, enabling consumers to flavor their, you know, their meals at home. If you think about our consumer portfolio and you can see some of the products that we have here, these are some of our new items that we've got. It could be, you know, heat flavored like Thai still, you know, Thai style chili pepper or, you know, Hatch chili chili pepper. Those are areas where we can continue to drive innovation for the consumer and allows us to really meet the needs of where they are right now. And so we see a lot of opportunity, this environment.
- [38:41]
Jim Cramer
And how many different kinds of this of hot sauce have you been coming up with?
- [38:46]
Brendan Foley
Well, Cholula, we've been expanding this.
- [38:48]
Jim Cramer
Yeah, I know. I see them because you see three at my Mexican restaurant now. There's like a dozen of them.
- [38:52]
Brendan Foley
Well, these are our Cremosas and those are coming out now this summer. We launched this one last year which is extra hot. This is really by consumer demand. We learned this online, you know, just through all the commentary. And they said, you know what I like Cholula. I'd like it a little bit hotter. So we came out with extra hot. You know, these are the opportunities, opportunities that we see across our portfolio. But you're right, they're fundamentally pretty healthy. It's a great way to flavor and this is, you know, where we see a lot of opportunity across our consumer portfolio that will drive growth for us.
- [39:16]
Jim Cramer
Hey, speaking of online, the minis that you introduced are still going crazy online.
- [39:21]
Brendan Foley
It's a great way to test new flavors. You know one of your, I know one of your favorite products is French's mustard. You know, dill pickle is a big trend. In the last year we launched a mini size of dill pickle just to get people to try it. It's a hot new item right now.
- [39:32]
Jim Cramer
You have up competing against me my and my pickles this year. Of course I use your spices. One last thing, I was concerned you want to have a different countertop worthy new package. You're not going to change it too much, are you?
- [39:46]
Brendan Foley
You know our gourmet line is one of our premier. This is the best material we can find around the world. And so here's an example, you know, with just a countertop worthy. I see you know you got a gold cap, it's kind of sealed right there. And these are the types of, of products that consumers are looking for on their countertop. And so we're relaunching our gourmet mainline this year. And so it's a great opportunity. We're going to grow new.
- [40:06]
Jim Cramer
So in other words, you're not changing me. I'll know the. I've got my typical that my mom had, my grandma had. Right.
- [40:11]
Brendan Foley
The premium end of our line which is just the best that we can source.
- [40:15]
Jim Cramer
Well I've got to tell you, I knew when you came in that you would, you, you would have a very growth oriented, exciting view of things and it. Boy, who ever thought how much we need those. All right, that's Brendan Foley's chairman CEO of McCormick. Yes. 52 week high. Deservingly so. Look at these. It's what you have, it's what you own. Everybody's back at them.
- [40:40]
Dell Representative
Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.
- [40:46]
Jim Cramer
Next. It is time. It's time for the light rank for Ronan 77. Bye bye bye. Chelsea's built in your course. I'm grinding some exceptions. Greater stuff. And then the lightning round is over. Are you ready ski daddy? Time's the lightning round. Kramer's rifle we're starting with Ned in Ohio.
- [41:10]
Caller
Ned, good afternoon, Professor Kramer.
- [41:14]
Jim Cramer
How are you, sir? I am good. Thank you for calling. Ned. How can I help? Well, I wanted to talk to you.
- [41:21]
Caller
About Marathon Petroleum Company. It's the largest petroleum refining, marketing and.
- [41:27]
Jim Cramer
Transportation company in the U.S. yes, and it's a good one. I think you want to own that stock. I like it very, very much. And I just think that it's one of the few in that percent in that group that I actually want to own. Let's go to Robert in Connecticut. Robert, hey, great big booy out through your gym from the nutmeg station. Jim, I want to get your take on the only autonomous trucking company with pilotless vehicles on the road as we speak. I know the company and here's what I'm going to say about it to be another time in the show right said. Listen, that's too speculative. But I have seen these speculative stocks go up and up and I'm not going to make you sell Aurora Innovation when a headline would cause that stock to double. Let's go to Braden in Florida. Braden. Braden. Jim, how's it going? I'm doing well. How about you, Braden? I'm doing great today. Listen, I'm a young stock picker on the TikTok and I'm a big fan of QXL. I love Brad Jacobs. I'm a little concerned. The company's been a bit over skis with debt.
- [42:30]
Sasangadarzi
I think true value is around 12 bucks.
- [42:33]
Jim Cramer
Is this a good time to buy or should I hold off? I am going with Brad Jacobs. He's the Houdini of Peepee's A billion. Billion. How to make a billion makes a billion when he walks down the street Makes a billion looks out the window. I want to be in his billionaire train. Let's go to Gary in Alabama. Gary.
- [42:48]
Caller
Hey, Jim. I first want to say that I'm a new club member. I finally joined yesterday. I watched the, I watched your monthly meeting and it was fantastic. I think it's already paid for itself. And I want to encourage everyone out there to please join the club. You won't regret that.
- [43:04]
Jim Cramer
That is fabulous. I did not tell. I did not. I don't know Gary from Alabama. I don't. But I and I greatly appreciate that, Gary. Thank you.
- [43:12]
Caller
Well, you're welcome. I'm so glad I did. Anyway, I've made money on the stock a couple of times. It's a Josh Brown favorite. I actually bought it yesterday. And then I thought, what the heck did I do that for without Talking to you. My stock is toast.
- [43:26]
Jim Cramer
Oh, I know that. Josh likes that. I like toast too, because I was in the restaurant business. I thought it was a commodity. It's proprietary. They're taking the whole world by storm. You got a good one there. And thank you for joining the club and that Landon Putin of the Lightning Round.
- [43:40]
Dell Representative
The Lightning Round is sponsored by Charles Schwab. Coming up, there's been plenty of noise around Nvidia, but with shares hitting new highs, Kramer reveals the intelligence driving the rally and why it's anything but artificial.
- [43:56]
Jim Cramer
Next. It seems so easy now. If you wanted to make money in a video, all you had to do was hold the stock and did great. There was no sweat to it at all. Right back in action. Right back to the all time high list. Except that's just not true. Holding in video for most of the year was one of the most grueling interludes I've ever seen. Just think of what happened since the stock last hit new highs back in January. First, the company had to deal with President Biden's last minute AI diffusion rules, which restricted where video could sell its best chips. The Biden administration made a list of 18 friendly countries that were free of restrictions. But tons of close allies didn't make the list, putting many EU countries as well as Mexico, even Israel. It was totally absurd, but Nvidia had to comply. Then we learned that there was this Chinese outfit called Deep Sea. They come up with a new way to train AI models for a fraction of what the hyperscalers are spending. Deep Seat never actually broke out their hardware costs, but everyone assumed these revelations were deadly for Nvidia. And of course, like so many other companies with lots of international exposure, Nvidia got crushed on Liberation Day with the tariff terrorists sending the stock down to the mid-80s. Then the Trump administration told Nvidia that they couldn't sell even their older AI chips to China, something even Biden had allowed. Company had to take a $4.5 billion charge on inventory it had made for China that couldn't be repurposed to sell anywhere else. It was then effectively shut out of what CEO Jensen Huang said was a $50 billion market. In return, the diffusion rules were at least bagged in May, allowing many more chips, many more countries to buy various best chips you could argue was a kind of a nice trade off. But the Chinese market shut down much larger. And throughout this whole period, we were told endlessly that Nvidia was charging too much for its merchandise and that the customers were rebelling. We heard that Amazon was going to go against them with its own chips multiple times on that one. That the other hyperscalers weren't happy with the prices they had to pay and were balking at its prices. That it was absurd for Nvidia to have the same valuation as a software titan like Microsoft or a hardware titan like Apple. And hey, what would happen a couple of years down the road when the competition finally caught up to these guys? Wasn't that the deep seat message? Weren't these customers spending way too much on these chips with not enough to show for it? Oh, and wasn't the stock way too expensive? Wasn't that why Jensen Huang was selling tens of millions of dollars worth of stock? It was such a nonstop tort of negativity. Oh my. Now we look back and we realize that while China mattered, there was plenty of other business to go around. While Amazon made some chips for itself, they weren't nearly as powerful as videos. The deep sea revelations I'm calling bogus. And it turns out that the spending was much more justified because these companies need these chips for robotics, self driving cars, digital twins, accurate generative AI platforms for their future, if they need it for the future. Or there would be no future. Plus, when Nvidia bottom in April, it was selling for just 20 times its earnings, making it cheaper than the average stock in the S&P 500. In reality, even though the stock fell off a cliff in January, nothing had changed at the company. Nvidia was unchallenged and remains integral to the new Industrial Revolution. It's behind the new Industrial Revolution. It didn't just matter that it was just a semiconductor company, any more than Microsoft was just a software company or Apple's just a cell phone company, which really isn't even true. All these winners, including Nvidia, are much more than what their Typecast has. Nvidia really isn't a semi inductor company. It's a platform of chips with tons of software that makes it truly unassailable, run by arguably the greatest visionary on earth. But unless you had that conviction, you never would have made it this through this gauntlet of negativity. It's the only reason we were able to stick with Nvidia for the Chapel Trust despite almost three months of hideous losses. Let me leave you with one last thought. This gauntlet may seem like a one of a kind steeplechase for this amazing company, but these barriers to ownership have been put up again and again and again through the many years that it took for Nvidia to become the biggest stock ever. It's caused millions of people to jump out of it rather than into it and stay with it like so many CNBC Investing Club members have told me that they were able to do. Congratulations to those few of you who made it through. Congratulations to CEO Jensen Wong who never lost his heart, never lost his temper and and never lost his integrity. He and his team just keep their heads down and push the plow for you. The intrepid shareholder Jensen. Thank you. No one has ever done it better. Like I said, there's always a bull market Summer. I promise trying to fight just for you right here man. Money. I'm Jim Cramer. See you tomorrow.
- [48:39]
Fidelity Representative
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc, NBC Universal or their parent company or affiliates. I 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. Kremer'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 trading@schwab is now.
- [49:19]
Dell Representative
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