← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 6/6/25
00:44:25
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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- [00:00]
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 subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts.
- [00:30]
Unknown Advertiser
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- [01:09]
Jim Cramer
Hey, I'm Kramer. Welcome to man buddy. Welcome to Kramerica. Other people make friends. Hey, I'm just trying to make a little money. My job is not to entertain. I'm educating. I'm teaching you. I'm doing everything tonight. So call me at 1-873-CBC. Creepy Jim Kramer. All right, we got something amazing today. A non farm payroll report that showed some accelerated job growth, but also downward revisions in the last two months. Therefore, give us a soft read, one that gives the Federal Reserve a lot more leeway for a rate cut. I know President Trump, sure, once when the market exploded higher from the get go and it didn't falter. That was in part because of the just right labor report, in part because the president didn't hurt his cause by tearing into our trading partners. In the end, The Dow gained 443 points as we climbed 1.03% in the NASDAQ, jumped 1.2%. Hey, what's on tap for next week's game plan? You've probably asked. Well, I've got it right here. Okay, let's go there. First of all, the week starts off with a meeting and we don't know what's going to happen. A meeting with the Chinese to try to hammer out some sort of trade deal or at least start getting us to talk a little more. We have no idea where the two sides are, but we know this. The Chinese have something we need. Rare earth materials essential for the auto industry. And well, we've got something that they need. Okay, now, without what they. Without these rare earth materials, what's going to happen is our auto factories are going to have to shut down soon. At the same time, the Chinese desperately want Nvidia's better semiconductors. Can a deal be made? Is that an even trade? Secretary Bessett will be part of the talk. So I'm actually optimistic something get done because he ain't a bomb thrower. Apple stock just had a second straight positive week. That's an unusual occurrence of late and some of the newfound luster might be in anticipation of Monday's Worldwide Developers Conference. Now there's a lot of bally who talk about this, but this is just this is a software event, not a hardware event. So not going to unveil new hardware. And it's usually not a catalyst for the stock to move. But it's obvious from today's aggressive buying that some speculators think this time is different. It's been hard to own Apple of late, whether because it doesn't have a top notch AI offering or because it's been targeted by the White House for shifting some of its Chinese manufacturing over to India. The President wants the iPhone to be built in the usa, but it's not economically feasible. It's cheaper for Apple to just pay the tariff. The contentious relationship with Trump doesn't help at all, but maybe Apple can catch a break now that Elon Musk is drawing so much fire. That's my view. That is contentious from the outside. Some might actually think it's convivial. I just don't get that feeling. Also on Tuesday, Capital One speaking at a Morgan Stanley conference, which will be the first time it's told the story of its merger with Discover Financial, which I think will be huge. And that's why we have a nice sized position, this one for the Travel Trust, which you can follow by joining the CNBC investing club. I think the synergies here are fabulous. And Richard Fairbank, the CEO of Capital One, understands credit cards as well as anyone on earth. It should be a very good meeting. Maybe that's why the stock was up six bucks today in anticipation of Fairbank telling a great story now. James Buck reports Tuesday before the bell is now. I don't, I don't know if it can escape the packaged foods purgatory that everyone seems to be involved in. This group acts the way that the coal stocks did not that long ago. What a compare. Smucker makes jams and peanut butter. So far okay. Right. But its most exciting offerings are the Uncrustables, which are fantastic sellers. Now I wish I could pound the table on the stock with nearly 4% dividend yield, but the secular decline of the packaged food sector is just too powerful. And who knows whether the Secretary of Health and Human Services. We'll go for the uncrustable. We've also got a very important analyst meeting on Tuesday with Deere. The storied agricultural equipment company can tell a tremendous story about farmer orders. You know what? I think it can go higher still. I saw an upgrade today after the close. We hear from GameStop, which is now going all crypto. While that's a lot better than being a just a gaming retailer in secular decline, that's not saying much. So you'll see the gaming stuff and then you'll see the crypto stuff. And the crypto stuff is what's going to drive this stock higher probably. Now we got a very popular IPO this week. It's called Circle Internet Group, which is a crypto platform and buyers went crazy for. So crazy that it's gotten people buzzing about crypto outfits coming public that might otherwise not have bothered. And maybe that's what GameStop can tap into. Look, I'm not a buyer of this. I'm just pointing out the storyline. Wednesday morning we should have a report about what Jensen Wong, the CEO of Nvidia, said at the GTC conference, this time in Paris. When I spoke with Jensen not that long ago, he lamented that the federal government wouldn't allow his company to sell a huge amount of chips in China. Jensen said he has a solid relationship with the President and that the president has a plan. He made it sound like there could conceivably be a deal that would be incredibly impactful. So now we go back to this. What he's saying and what happens from this are probably the two most important things of the week. Now also before the bell, we get the May Consumer Price Index reading. This is an important one because it could give us a good read on how hard the tariffs are hitting the consumer. We don't know yet. Jay Powell has adopted a wait and see approach to cutting interest rates. I think that's smart. He definitely won't act if the CPI spikes. So this is going to be a very important number. Now two companies give us earnings of interest. On Wednesday. For the bell, we hear from Chewy, the online pet food retailer which offers a lot of accoutrements that pet owners love. It's been a real winner. By the way, this seal called the bottom on our show. I thought it was pretty great. I'm going to. I think you can continue to win. After the close, it's Oracle's turn. The last quarter was poorly perceived in the stock got hammered. Now it's bounced almost all the way back. That's an astounding 50 point move almost in A straight line to Oracle's gigantic data center build out should start paying off soon. I think that they can show some very good revenue growth this quarter. Now Thursday brings some analyst meetings that could move the needle. Cardinal Health, we've had them one a couple of times. Tells a terrific story about how it's much more than a drug middleman. And I believe I am a believer, but the one that I'm most interested in is BlackRock. That's the largest money manager in the world. Larry Fink started it. My Chapel Trust owns shares in the stock which is down more than 3% for the year. It has not worked out for me so far, but I am patient. Maybe, maybe blackrock can tell a good story about assets gathered, further explain the top notch technology they have. If the meeting is positive, I bet the stock goes positive for the year. Adobe reports after the close end it looks like the stock could break that downtrend it's been experiencing for some time. I wish the competition weren't so fierce here, but it doesn't seem to be letting up. Adobe is an amazing company. It's helped so many people, small businesses, bring out their creative selves. If you can get this stock for under 20 times earnings that's a little bit lower than from here, that's close enough to where it is now. I think it actually might be worth it, but it would be a flyer. Okay. Finally, on Friday we get the latest University of Michigan consumer sentiment reading. After reading through the Dollar General conference call, which I thought was very downbeat about our country, although upbeat about Dollar General, I get the sense the consumer feeling pretty darn gloomy. Let's see if the stock market's run has impacted that direction. The answer is probably not. Here's the bottom line. We should be headed for a quiet week. But you know what? We got to stay close to true social to see what's going on in the White House before we assess anything these days. Given what happened with the President and Elon Musk this week, you need to follow all the palace intrigue, even if you don't want to. Okay, why don't we start with William in New Jersey?
- [08:22]
Caller
William, Hello Jim, first time caller.
- [08:25]
Jim Cramer
Oh great, William, thank you. Thank you for calling. How can I help?
- [08:29]
Caller
I'm in a bit of a penalty box. I took your advice early this week and jumped into Lululemon ahead of the earnings down about.
- [08:37]
Jim Cramer
I thought that Lulu would do better. I thought that Lulu would do better. I was quite surprised. I just. It was a bad conference call and it was A bad quarter. I am aghast to think that this could be as such a horrible situation. They had tariff problems, they had the wrong fashion. Everything went wrong for Calvin McDonald. And what can I say, I just don't think he's capable of being as bad as that stock was.17 times earning. It was a bad quarter, though. And you know, William, I've thought a lot about this and a lot of soul searching. I am shocked at how they missed the quarter. And I wouldn't be surprised if there weren't some shakeups if that happened again. Now we're going to go to Jason in South Carolina. Jason.
- [09:21]
Caller
Hey, Jim, thanks for taking my call.
- [09:23]
Jim Cramer
Of course.
- [09:25]
Caller
All right, question. Do you think deer's done or is there still more to go? Is it still a good time to go?
- [09:31]
Jim Cramer
No, deer's good. Deer's good. Now deer's in. The farmers are in great shape here. And I know that deere looks like it should be peaking because it's had such a big run. Believe me, this stock has multi year moves. I really still like deer here. Let's go to Frank in New York. Frank? Hello? Frank, you're up. Yes, it's Jim. What's up, Frank?
- [09:55]
Caller
Hey, Jim, thanks for taking my call.
- [09:57]
Jim Cramer
Of course.
- [09:59]
Caller
Thanks for your 20th anniversary. And I've been with you the whole 20. And before that, cuddler. So I'm a cream of lifer.
- [10:06]
Jim Cramer
Oh my. All right, you've got a lot of Kramer. You've got Kramer. How can I help? Okay, listen, I own Uber. Everybody loves Uber. It's a free cash flow giant. Okay, $100,000,000, Jim. Oh, I agree with you. When people, I mean, people are worried.
- [10:26]
Caller
About autonomous driving, that's, that's not going to hurt them. They're part of.
- [10:30]
Jim Cramer
I agree with that. Especially with the setback of Elon Musk. Look, I gotta tell you, I am so with you, Frank. You and I, we are so simpatico. Perhaps it's because we've been with each other maybe 25 years. I think your question and answer on Uber is yes, it goes higher. And I gotta tell you, I think that those who doubt it. All right, next week could be a quiet one, but you know, we're gonna have to keep an eye on what the White House says before we assess what's going on, particularly with China, obviously on my money tonight. Is the travel bull market still with us? I'm digging into last night's results from Vail Resorts. Sent the stock lower today on an up day. Then you pulled in. You stumped me on an under the radar aerospace defense stock. I'll reveal the name and I'll show you why. I am very much intrigued by the story. And we're playing AMI Diversified to see if portfolios of Cramerica are ready to handle whatever the market throws at them. So stay with Kramer.
- [11:26]
Keith Lansford
Don't miss a second of Mad Money. Follow im kramer on X. Have a question? Tweet Kramer madmentions Send Jim an email to madmoneynbc.com, or give us a call at 1-800-743, CNBC. Miss something? Head to madmoney.cnbc.com 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 subscribe@schwab.com Market Update podcast or find Schwab Market Update wherever you get your podcasts. Are you still quoting 30 year old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide, and every time you make a purchase with your card, you automatically earn cash back. Welcome to the now it pays to Discover. Learn more@discover.com creditcard based on the February 2024 Nelson Report.
- [12:47]
Jim Cramer
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- [13:05]
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- [13:26]
Jim Cramer
Is the travel and leisure bull market still with us? Last night we got results from Vail Resorts, which owns 42 ski resorts in North America, Europe and Australia. While this was basically an in line quarter, the market wasn't too thrilled, sending the stock down nearly 3% today on what amounted to a pretty good session. Now I got a soft spot for Vail because they have a portfolio of some of the best ski resorts on earth. It's impossible for a competitor to put something together like this this thing always seems like it should be a great business. We, we know these places charge a fortune, right? With a captive audience of guests paying through the nose for lift passes, equipment rentals, ski lessons, lodging, food. For years and years, the stock was an incredible performer from the financial crisis. Bottom In March of 2009 through its all time high in late 2021, Vail rallied from just $15 to $376. That is nearly a 2004 50% gain. But since then, the stocks come down hard. It's never really been. Now, some of that's not their fault. I mean, most growth stocks did very badly in 2022. The thing is, unlike the others, Vail hasn't bounced back over the past few years. In fact, they had a pretty darn disappointing 2023-2024 ski season. Oh, look, around this time last year, management was blaming that on, quote, unfavorable conditions, end quote, meaning a lack of snow in the Mountain West. Unfortunately, things got worse this past key season. Last fall started to become clear that season pass sales were floundering. Now that was in part because the company's been so aggressive with its price increases over the last few years. Then during ski season, Bell had some high profile operational issues, to put it lightly. For example, there was a nearly two week strike over ski patrol wages in Park City Mountain in Utah, leading to comically long lift lines during one of the busiest parts of the season. With outraged steers chanting pay your employees, pay your employees. In response, the stock got clobbered in the first few months of 2025. Sell. Sell. Sell. Sell. Sell. Sell. Sell. Sell. By the time they bottom the post Liberation Day washout in April, the stock had fallen to about 130. That's the lowest level since the depths of COVID in March 2020. Around that time when the stock was 145. We got a call about it here and I said I given how much the stock had come down. Then last week, something happened that made me even more intrigued. Vail Resource brought in new leadership. Actually brought in old leadership. Last Tuesday, after the market closed, Vail announced that Kirsten lynch, who'd served as CEO since the fall of 2021, would be stepping down to be replaced by a familiar face, Rob Katz, her predecessor who ran the company from 2006. 2021. Wow. All right. Basically, Katz served to see her during the entirety of that halcyon period. The stock peaked less than two weeks after he left. That role in late 2021 has been the same since. So investors were Very bullish on this news set the stock up 8% in response, although it's now giving back all those gains because of the quarter Vail reported last night. And that makes sense to me. Speaking of the quarter, you knew it wasn't going to be great given that the CEO had just got ousted, right? I mean, it's kind of a tell. Sure enough, the 2024-2025 ski season ended pretty darn poor, poorly with a weak April. That said, Even with the 3% decline in the number of skiers, this season balanced some modest improvements in its financial results. With resort revenue up 3% year to date, driven by a 4% increase in season pass revenue. Even though the number of skiers was down, they raised prices by 8% ahead of the season and the people who did come spent more money on ancillary services. As for the headline results, Vail posted in line revenue with a 50 cent earnings beat off a $10.04 basis. Now, it could have been worse. Management tightened their full year forecast, raising the low end of their earnings guidance and lowering the high end, but. But the midpoint ended up lower. The new guidance reflects the weak end of the ski season, which Vail said was partially mitigated by strong cost discipline. Of course, that's not the whole story with the quarter Vail gave. It gave its first update on season pass sales for the upcoming ski season. Past product sales through May 27 decreased by roughly 1% in units, although in dollar terms they're up 2% year over year. Again, this is a, this is big. A big price increase is making up for slightly lower volume this season and prices will raise another 7%. Oh my. Now the context is important here. These season passes went on sale within a week of Liberation Day and the ensuing stock market mini crash. The followed. I'm betting some skiers just held off on buying a pass as that was happening because the more high end ones can cost over $1,000. As a new old CEO Robert Katz put it, quote. Given elevated levels of macroeconomic volatility that occurred throughout the spring selling period, it is currently unknown what if any impact that had on early past decision making. Still, analysts and investors seem disappointed by these initial numbers, which is the main reason why the stock just got clobbered today. Interestingly, though, maybe not all that surprising given that Katz has remained as executive chairman of Vail Resorts this whole time and he's only been back in the CEO role for a week or so. Management didn't signal any major strategic shifts that were in the offing that was disconcerting to me. So where do I come down on this stock after last week's leadership shake up at last night's conference call? Long story short, I'm still finding this Vail Resorts intriguing down here, but it might take a little while to get the turn to happen. This remains a truly unique business, something that can't be replicated. And you're getting this opportunity to buy the stock at a fairly significant discount. And it's currently trading at less than 20 times this year's earnings estimates. By historical standards, that makes it pretty darn cheap. But man, it sure feels like Vail needs to do something to get its mojo back. Maybe they need to cut price or at least, very least, hold them steady. I like this idea they put through high single digit price increases for season pass every year for the past several years, which seems to me very aggressive, especially given the lack of unit sales growth here. Maybe they need to think about some strategic moves. Do they really need resorts in North America, Europe and Australia? Do the regional ski resorts in places like Ohio and West Virginia, Pennsylvania belong with the same company owns Vail and Whistler? You could argue that they really don't belong under the same roof. But the bottom line, I think Vail Resorts has potential here even if I'm not willing to pound the table on this one. If you want to bet on a comeback, I think you put on a small position now recognition of just how cheap the stock's gotten. But I'd like to see more of a turn in the business before truly sticking my neck out for Vail. And Mr. Katz, when you're ready, you're more than welcome to come right here on the show and tell us more about your plans to get the business back on track. The money is back. Every brain.
- [20:34]
Keith Lansford
Coming up. Could a stealth aerospace and defense play be the right fit for your portfolio? Kramer is putting the name on your radar next.
- [20:45]
Jim Cramer
Wait.
- [20:46]
Unknown Advertiser
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- [20:55]
Caller
How could you not be a member.
- [20:56]
Jim Cramer
And save up to 20%? That's less than 50%. But it's more than zero percent. You're welcome.
- [21:07]
Unknown Advertiser
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- [21:54]
Jim Cramer
Every now and then, I get a call about a company that I either don't know or haven't been following regularly. So I promise to do the homework and come back to you with the full story tonight. I've cut that one, but two of them, two stocks that I got on the same day, and I kind of screwed up. Just didn't know. What can I say? I try to learn as many companies as I can, but Alex stopped me. Alex in Oregon. He asked about Esco Technologies. Now, this is the same Alex who asked about lemaitre in April. Another stock I didn't know. We used to call this game Stump the Chump. So I guess that makes him the reigning champion. Okay, this is a real good one. Esco Technologies used to be a part of emerson Electric, for it was spun off way back in 1990. Today, Esco Technologies makes highly engineered filtration and fluid control products, as well as integrated propulsion systems. Okay. The company is also an industry leader in radio frequency shielding and electromagnetic compatibility test products. They make diagnostic instruments, software and services for the electric utility and renewable energy industries, as well as industrial power users now. Okay. All right. Now, maybe that doesn't sound like the most exciting company in the world, but when you look under the hood, there's actually a lot of interesting stuff here, which is why the stock's up with the 70% of the last 12 months. See, over 40% of ESCOS business last year came from their aerospace defense division, where they make specialized parts for airplanes, satellites, warships and missile defense systems. They make hydraulic systems on aircraft. They help submarines stay off the radar. They even produce miniature explosive devices for missile launch systems. Same stuff fighter pilots use when they need to eject. In short, Esco is an arms dealer to the defense contractors. In fact, 27% of their sales come from US government contracts, which is either a strength or a weakness, depending upon how you look at it these days. More on that in a moment. Another 35% of ESCO's revenues come from their utility business, which helps power companies keep their systems running safely and efficiently. And that includes alternative energy. These guys have a bat deterrent system, keeps the darn things from flying into windmills. Rounding out the businesses, Esco's RF test and measurements segment. That's 20% of. Basically, they Help a wide range of industries ensure that their electric components work properly. Again, not exciting, but this stuff is important, especially in the medical industry. If you're selling, say, pacemakers, you need to make sure they won't malfunction the moment that they get hit with a radio signal. There's a lot of government regulation surrounding stuff like this, so better to be safe than sorry. Honestly. You know what? This sounds like a well rounded business. And when the company reported back in May that was on full display, Esco turned in slightly better than expected sales, up 7%. But truly better than expected earnings of 24%. Magic was confident enough in the momentum they're seeing to raise their full year earnings forecast. That was good enough to send the stock rallying more than 6% the next day. Looking ahead, Esco is focused on the businesses that it feels it has the most long term promise. Recently, the company completed its acquisition of Ultra Maritime Signature Management and power business for $550 million. This business serves the American and British navies. Esco wants to boost its exposure to submarine and shipbuilding business. This these are great businesses. Now, some investors might be concerned about cuts to federal government spending. Although Doge seems to be shakier ground than it was say 48 hours ago. Even when Musk was still there, they never really went after defense spending. Esco's confidence, their particular areas of expertise are a high priority for the Pentagon, meaning they're unlikely to be hit by spending cuts. And that's assuming we get any meaningful cuts to the defense budget at all. With the president signing executive order earlier this year to create the Maritime Action Plan and revitalizing our maritime industry, otherwise known as make shipbuilding great, great again order, I wouldn't be too worried about anybody in the shipbuilding business. Overall, I find this one intriguing. Sure, with Esco trading at roughly 26 times next year's earnings estimate, it's not the cheapest stock in the market. But this is a company that's looking at nearly 15% earnings growth next year. And 40% of the business is related to aerospace and defense, which is, I think, great shape here. Even though the stock doesn't garner a lot of Wall street coverage, that might just be another positive. Not a bad idea to start a position before the analysts start getting enthusiastic about it. You can tell I like this company. It may seem like a boring business to some, but not everything needs to be a play on crypto or artificial intelligence or flying cars. Which brings me to our next homework. Name Defi Technologies, which was brought to my attention by Joe In Arkansas. Defi Short is a Canadian financial tech company that specializes in decentralized finance. Defi, it's the name. This Toronto based company offers investment exposure to digital assets like Bitcoin, Ethereum and lesser known cryptocurrencies. They make it easier for those who want to get into crypto but don't want to deal with the digital wallets or any other sort of crypto infrastructure. These guys mainly operate through their subsidiary Valor, where individuals can buy exchange traded products in the crypto assets I just mentioned. Naturally, Defi is pretty speculative name and that's putting it lightly when it's got a market capitalization of just over $1 billion. This one's barely big enough for me to even mention on air. On top of that, Defi doesn't even have 1 billion in assets under management. Now, in mattress defense, the company is profitable last quarter and doesn't have any meaningful debt. While Defi currently offers roughly 65 exchange traded products in the crypto space, they're continuing to bolster these offerings and expect to have 100 by year end. But don't get too excited, these products are mainly for the Europeans. At the moment, entering the US market doesn't seem such a high priority for them. However, they seem very excited about their new research unit, Reflex Reflexive tv, which is Reflexivity research, which they bought from Anthony Pompliano. You probably see him a lot of times on Squawk Box about a year ago. Defi also operates an arbitrage trading desk that brought in $100 million last year. That's a nice windfall, but not exactly as reliable a business as Esco Technologies. Going back to the speculative nature of this stock, the company only became available for trading on the NASDAQ about a week before Joe and Arkansas asked me about it. No wonder I didn't know it. Since then it's down about 18% despite a rally today. You haven't missed much. Let me give you the bottom line here. Defi D E F I Technologies is a pretty volatile name and I'd much rather own something consistent like Esco. As I've said many times, if you really want to invest in crypto, just buy actual crypto. All these other instruments tend to have more risk than I'm comfortable with. You don't need that in your portfolio. How about we go to Doug in California? Doug.
- [28:31]
Caller
Hey Jim, how you doing?
- [28:32]
Jim Cramer
I am doing well. Doug, tell me what's going on.
- [28:35]
Caller
All right. My dad worked for a company that's been around for 160 years. It was called Bad Copy and Wilcox. Now it's BW XT Technologies. And what your thoughts on that stock?
- [28:49]
Jim Cramer
Okay, now the nuclear industry is go, is on fire right now, is going crazy. You know, all of them are going up. I for Nova. But I will say this. As I said last Monday, I will no longer say I would not buy that stock. I think that's this stock. BW Technology is just one push away from going to 150. So that's the way I'm going to leave it. I'm not going to just say. I'm not. I'm not sneering at these stocks anymore. Charles in Florida. Charles.
- [29:19]
Caller
Mr. Kramer.
- [29:20]
Jim Cramer
Yes, Charles.
- [29:21]
Caller
I've been a holder of Berkshire Hathaway since 2007. The first 90 days it fell 45%. But I held on. The only names I've ever heard are Warren Buffett and Charlie Munger. Right now Charlie is gone. And if I may add, Becky Quick of your station did an excellent interview. Charlie Munger, a life of wit and wisdom. See it now. Greg Abel is the heir apparent. The stock as a opening this morning was down over 8%.
- [29:54]
Jim Cramer
Okay.
- [29:55]
Caller
And the only print in the Wall Street Journal I've seen is who's going to run the insurance business. Can you please add something positive? It. Thank you.
- [30:05]
Jim Cramer
All right, so Berkshire, Berkshire B. Look, I like it. I know that, that Warren's retiring. I get that. But you know what? He is a big bench. He has terrific people. And I know that we should all love and appreciate Warren. But I am also going to appreciate him for what I think is going to be a consistent way to have a new CEO. And that's how I'm going to leave it. Defi Technology is a name that's a little too bulky volatile right now. And I prefer to own something more consistent. That's why I say we should go with Esco. Esco much more made money. Including Kramer's. Well, yes, it's our favorite game. Kramer Records. MI Diversified. Then Tesla stock got pummeled today after Elon Musk took aim at the president yesterday. But with rebound today, what do you make of the action? And do we need to value Tesla differently now? I'll give you my take, plus all your calls. Rapid Fire, tonight's edition of the Lightning Round. So stay with Kramer. The major averages have gotten off to a pretty darn good start in June. But we know things can change rather quickly in this market. So you have to prepare for whatever might come your way. And that's why tonight we're playing. Am I diversified? What do you do? Well, you call me, you tell me your top five holdings. I tell you if your portfolio is diversified enough, maybe you need to mix it up a little. Tim in Ohio, you're our first caller. What do they got for me? Tim?
- [31:32]
Caller
Hi, Jim.
- [31:33]
Jim Cramer
This is Tim from Columbus, Ohio. All right, go ahead.
- [31:39]
Caller
Home.
- [31:40]
Jim Cramer
Home of the Buckeyes. Home of the Buckeyes, man. Well, you can't beat them. Well, actually, you can, but go ahead. What do you got?
- [31:50]
Caller
The stocks that we have in mind are Disney.
- [31:56]
Jim Cramer
Abbott.
- [31:57]
Caller
All right, Amazon, Novo Nordisk.
- [32:04]
Jim Cramer
And Applied Materials. Well, let me go to work on that group. Buckeyes. Let's go, let's go, let's go. Abbott Travel Trust. Name, that's Medical Devices. Okay. Really excellent. Walt Disney sticking up through the 113 level. We like that. Entertainment, Applied Materials, recommended this very morning. Got a nice upgrade. But I prefer Lamborghini Research. That's a capital equipment for semiconductors. Novo Nordisk. Well, we're not Novo people, we're Eli Lilly people. And Amazon, well, how can you not beat. I mean, Amazon's everything. It's retail, cloud service, cloud web, tech, retail, medical device, entertainment, semi equipment, Lily drug. I'll tell you, Tim has got it. He's got it going. That's exactly what I'm looking for. But now we're gonna go to where my daughter used to live for a long time. We're gonna go out there. Aragon, Oregon. We're speed down. ARR In Oregon. R. Go ahead.
- [32:57]
Caller
AR It's AR In Portland. And Jim, a huge fan. First time caller, longtime listener. I'm a member and I want to let you know I have a picture of God and you on the same wall. And I pray to you both you sped up my retirement by 10 years, and I love you for that.
- [33:15]
Jim Cramer
Well, thank you very much. Thank you, Edson. Actually, I've not heard that before. This may be the first time. Okay. My executive producer, Regina. That is. That's the first, isn't it? Yeah. Regina said it's a first. She's moving along.
- [33:27]
Caller
But I love you like hell.
- [33:28]
Jim Cramer
Thank you, man. Well, then why don't we go to work together? Let's see how we do. All right.
- [33:33]
Caller
ServiceNow, Salesforce, Bristol Myers, Palo Alto and Metta. I know. And of course, I made my money on Nvidia, thanks to you. I'm not telling you that.
- [33:42]
Jim Cramer
So let's invade this down now, right? Nvidia stuck here at 4142. We got to see a breakout next week. When Jensen goes to Paris for Paris GTC. All right. Service now. Well, we love ServiceNow Can Wait. ServiceNow is, you know, we've got corporate software that also is AI. Okay, center price software with AI Meta. Well, you know, Mark and I are. Well, we're like. Well, we don't talk that much, but we got a good social media. Bristol Myers Travel trust owns it. So far we're not happy with Cobain fee. It's a little disappointing. Need to see that stock back up at 60. Apple. We've got that big developers conference on. On Friday. I am not going to raise the temperature. The thing is, is not a needle mover. We should stop saying it's a needle mover. We like Apple though. And then Palo Alto is just to become after Zscaler, the cyber equipment company that people most want cyber. Okay. Social media, enterprise software. Let's just call it. What do you want to call it? Why don't we call it an iPhone company and then drugs. That again. Ours got it going. I mean, I now r is a little effusive about my particular role in life, but you know what? You take it where you can get is what my ma used to say. Next up, we're going to stay in my home state. We're going to go to Larry. New Jersey.
- [35:01]
Caller
Larry. Hey, Jimmy. Chill. Hope all is well with you.
- [35:05]
Jim Cramer
I am chill today, my friend. I sensed it right up through my body to my head. I am chill. How can we work?
- [35:11]
Caller
Sure you are. I've been following you back since the Jurassic era. Todd Harrison days. Mindy Anvil going way back.
- [35:17]
Jim Cramer
Oh, my God. Yeah. All right. Well, that was another era. What can I say? It was Paleozoic era. Yeah. So let's go to work.
- [35:26]
Caller
All right, so five stocks that got 50% in the SP 500 SPY. And then here's my five holdings. Berkshire Hathaway, B. Palantir, TJX. One of your trout. Your charitable trust holdings, Tesla and Walmart.
- [35:40]
Jim Cramer
Wow. Okay. This is sensational. He's got my accent. Must be Southern Jersey. I think. I think that's. That's great. Tesla. Okay, well, that's a thorn in the side of the president. Co. I mean, I don't know. It doesn't really sound very good. This is more of a it was now. It's now back to me at a car company because I don't think you can do those other things right now. Berkshire Hathaway, diversified conglomerate. TGX is my favorite of the. Of the discounters. Discount retail. Walmart is. No, we have to do something there say Palantir is going to $200 we're going to have to get rid of one of these we're going to keep TGX because I really like the pricing TGX we're going to get rid of Walmart and we're going to put because we need the drug company Eli Lilly goes with diversification of that and an auto and Larry's got he's got it going but he can't have both TJX and Walmart they're too much alike they trade together. It's just true. Hey you know what how when's the last time we had a corp from Kentucky Jerry in Kentucky Jerry hello Jim.
- [36:37]
Caller
Calling in today from my boat on Lake Cumberland first long time I've been a fan of the show for 20 years club member and you are the professor of stock investing appreciate you and your staff do for us and being from Kentucky you know what I want to hear after I ask you am.
- [36:59]
Jim Cramer
I divert well look if you're from Kentucky you must be lucky. Let's hear the stocks.
- [37:05]
Caller
Okay we've got Costco, Palo Alto, Eli Lilly Waste Management and ISRG Intuitive.
- [37:15]
Jim Cramer
Excellent. All right. Wow Kentucky. We got callers everywhere and I just love it. I love it. Intuitive. Wow Intuitive had such a great quarter it's like killing me that I'd been known for the Chapel Trust medical equipment Eli Lili what can I say that's medicine. We like it Costco world's greatest retailer Nothing, nothing no flies on that Palo Alto one of that's the cache Aurora amazing company Cybersecurity Waste Management couldn't break through the 236 level today I was quite surprised. I thought it would have done that. Okay so we got waste, we got medical equipment we've got let's call it drug we've got retail and we've got cybersecurity. I mean I don't know can it get better we every single portfolio someone's cheating someone has their finger on the scale. Those those portfolios were all that good. The only overlap was that one gentleman was that had Walmart and tjx that was it. Otherwise there was nothing to do. I didn't have to about worry about Joby and Archer Aviation or a or any of that stuff So I want to thank you for all your submissions man money is back.
- [38:15]
Keith Lansford
If you would bring coming up lightning doesn't just strike twice in Cramerica.
- [38:24]
Caller
Booyah. Thanks for taking my call.
- [38:26]
Keith Lansford
It strikes every day. Kramer is back in a flash with your questions. Next.
- [38:42]
Jim Cramer
It is time. It's time for the white round. Crash. Play this out. And then the lighting round is over. Are you ready? Skeet Daddy time. Light round. Crazy. Let's start with Mark in Florida.
- [38:56]
Caller
Mark, how you doing? Yes, sir, Mr. Kramer.
- [39:01]
Jim Cramer
What's happening?
- [39:02]
Caller
How you doing? So I've been looking at Omnicron.
- [39:06]
Jim Cramer
Yeah, I know it looks cheap, sir, but I've got to tell you that when I read what Mark Zuckerberg has to say, you know, and look. And he runs meta big company. He's talking about disintermediating ad firms and I'm afraid that I. He's too powerful. I would not go against him. Let's go to Jim in New York. I'm talking to myself. Jim.
- [39:26]
Caller
Hi, Jim. Booyah.
- [39:28]
Jim Cramer
Booyah. Jim. What's up?
- [39:31]
Caller
Thanks for taking my call. I'm thrilled to be cold and I'm a big fan of yours and I want to say a special thanks for helping investors like myself.
- [39:41]
Jim Cramer
Thank you so much. We're trying to do that. I'm glad. We're just working that field makes me feel great. How can I help?
- [39:48]
Caller
I've been a club member for about four years. Back when I first started, I acquired my position in Disney where it was a cost basis of about 128. It never ever made any money for me. I'm just wondering, do I sell?
- [40:03]
Jim Cramer
No, no. I think Disney's finally getting its feet. Get its feet right. I think that it had some management turnover. They're getting things. I like a lot of the things that Iger is doing now. I like you, Johnson. I want you to stay at anything. I'd like you to buy more. Let's go. Remember, we don't where Care stock came from. We care where it's going to. I think it's going higher. Let's go to Jeff in California. Jeff?
- [40:25]
Caller
Yes, James. How are you this evening?
- [40:28]
Jim Cramer
You know what, Jeff? I am all fired up. I'm good. How about you? Nice.
- [40:33]
Caller
Thank you. Yes. Peloton.
- [40:35]
Jim Cramer
What do you think?
- [40:36]
Caller
With all the.
- [40:37]
Jim Cramer
You know, it is. It is a subscription business and I like subscription businesses. I think that they work, but I don't think they have the growth. So they're. I'm going to say if you want a subscription business, I want you to be in Spotify. I need to go to Angelo, Ohio. Angelo Kramer.
- [40:52]
Caller
Booyah. From Ohio.
- [40:54]
Jim Cramer
Thank you. Yeah, we love Ohio here. We love it. Yes, we love you. My family loves you. You've made us so much money. What do you think about Walmart?
- [41:03]
Caller
My Friend.
- [41:04]
Jim Cramer
All right. Walmart's been stuck at this level. Well, usually when that happens, it's just a. It's gaining momentum and burst through, I think gets to 110. Let's go to Bill, Massachusetts.
- [41:13]
Caller
Bill, hi, Jim.
- [41:16]
Jim Cramer
How are you today? I am good, Bill. How about you? How you doing?
- [41:20]
Keith Lansford
Good.
- [41:20]
Jim Cramer
I wanted your opinion on Reddit. Do you think? I'm so glad somebody called me on Reddit because this thing is breaking out. It's going back up. It's up 9 today. I think that the quarter was much better than people realized. They were starting to cut some very big deals. They are integral to. To a lot of different of the chatbots that I look at. I think Reddit is a winner. Let's go to Dan in California. Dan.
- [41:45]
Caller
Jimmy, chill. Booyah, buddy boy.
- [41:47]
Jim Cramer
I be chilling this weekend. Let me tell you something. I'm gonna club some fish. Just kidding, just kidding. I love fish. I throw them back. I'm a catch and release guy about everything in life. I'm catch and release, frankly. All right, what's up?
- [42:00]
Caller
You're a good man. You're a good one. Hey, before we start on my stock, I got fantastic news for you. Born and raised in San Diego, greatest spilled LC Eagle, one of the greatest of all time is entering the hall of Fame this summer. Talking about number 21, Eric Allen.
- [42:18]
Jim Cramer
Did you remember that run back that he had from the end zone? That was 100, 101 yard run back. What a pick. I remember it, but then again to.
- [42:28]
Caller
Go to the ceremony.
- [42:29]
Jim Cramer
You're absolutely right. But look, I got to tell you, I keep watching Cooper De Jean every time I'm down, I watch that pick, I watch that pics. Anyway, it's probably far afield. My look, my executive producer saying, Jim, it's not a football show, it's a stock show. So let's do some work.
- [42:43]
Caller
Eric's our hero in San Diego. Listen, buy seller. Hold on. Kendall Morgan Kenner.
- [42:50]
Jim Cramer
Morgan's good. Kendall Morgan's good. You know, like I the company got it the together. Anything in the pipeline is just working. And that, ladies and gentlemen, is the conclusion of the Lightning Round.
- [43:03]
Keith Lansford
The Lightning Round is sponsored by Charles Schwab. Coming up, from bromance to breakup. How the social spat between President Trump and Elon Musk could impact Tesla's share price. Kramer plays mediator.
- [43:18]
Jim Cramer
Next. You know, I'm writing this book, how to make Money in any Market. No, no, it's not done. This is just a dummy with a cool cover and one of the chapters I Talk about the Magnificent seven and what I think will happen with each one of them. I've been very positive about Tesla. It was a pan to Tesla's fabulous car self driving technology, Robo taxi and most of all their optimist division is developing humanoid robots. I still believe in technology, but I just had to make a bunch of revisions thanks to Elon Musk's erratic behavior. Again, Tesla's self driving cars show a sense of awareness that I think is vastly superior to Alphabet's Waymo. The unique self driving capability is backed up by Nvidia powered neural network that I feel is best to breed. The technology is based on visual perception. I've driven in a Waymo which has more reliance on mapping and radar system and I work fine but I trust the system based on visuals. Tesla's plans for robots are expansive and aggressive. Musk thinks we'll all want robots. They'll be essential. If he's right, the optimist division could be worth the entire amount of the company. I initially gave it a very high grade because I wanted to be a Tesla shareholder one day for the charitable trust. Having liked the company for ages, although I could never bring myself to pull the trigger. Last night I went back and I changed the grade I gave Tesla. It's slower, but it may not be low enough. Because the world changed for Tesla and all of Musk's myriad businesses the moment he broke with Trump. Those who act like nothing's changed, including the analysts who love to stop for the contretemps as though it's about what the President. United States is merely a speed bump. They're out of their minds. It was one thing when Musk was just opposing Trump's agenda. That's just business. But yesterday must get real personal. I don't even want to bring up the allegations, but because frankly, they're just too incendiary. And as you may have noticed, President Trump is not a super forgiving guy. We have seen that he's willing to seemingly stop at nothing when it comes to retribution. Which brings me back to Musk. Putting the substance aside. If I were in Elon Musk's shoes, I would not pick a fight with the President of the United States. And not just because he spent a quarter billion dollars helping Trump get elected. The Washington Post and New York Times have detailed all the ways in which bus various enterprises dovetail with the federal government. But you know what? I don't care about Starlink or SpaceX. What I care about is Tesla. And man, if anything goes wrong with Tesla's self driving technology. I could easily see this president issuing an executive order to ban them from the road. Just one accident is all it takes and there will definitely be accidents. Even if self driving cars are safer, maybe much safer than human driven cars. Back when Musk was on good terms with the White House, I had hoped that Tesla's self driving cars would be granted approval to drive on the interstate highway system. Said that many times on the show I'm now putting out in the highly unlikely camp robots again. There are a million reasons the president could use to ban them too. So we now have to go back and value Tesla like the car company it is, not the technology company it could have become. If that's the case, then frankly it's fairly valued, maybe even overvalued, as Tesla's cars are not selling well and the federal government will no longer subsidize their purchase. While I have faith in Musk to design next, you better than just about anybody in the world. I have to be realistic. He's a brilliant businessman, but a downright self destructive political operator. Musk has created a world of hurt for his shareholders. He's become toxic, which means that Tesla stock has become too hard to own. It's difficult to own any stock these days, but one that's in the crosshairs of a vindictive president. No thank you. I'd like to say there's always a bull market somewhere and I promise to fit it just for you right here on Bad Market. I'm Jim Cramer. See you Monday.
- [47:03]
Unknown Advertiser
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, 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. Kramer'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 Tipping culture is out of control. Yesterday I tipped someone just for handing me a napkin. So when hotels.com gives me up to 20% off for being a member, I finally get tipped. And you know what? It feels good. Hotels com members save up to 20% off at hundreds of thousands of hotels.