← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 6/8/26
00:44:17
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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Indeed.com podcast, terms and conditions apply. Hiring do it the Right Way with Indeed. My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other people make friends. I'm just trying to save you some money. My job is not just entertain, but to teach. So call me at 1873 CBC. Tweet me. Jim Cramer. Things have changed for the worse. There's a shroud now over this market and you ignore it at your own peril. Even on a good day like this one where The Dow dropped 81 points, the SB gain point 3% and the NASDAQ climbed point 86%. Decent comeback from Friday's tsunami of selling. Really not an overwhelming one. So what's changed that has me turn much more cautious? Well, first, the stronger than expected employment report on Friday was awful for the bulls because the bulls desperately need one or two rate cuts this year to keep this market going higher. And you don't get rate cuts when the labor market's the solid. I always tell you that the non farm payroll report is the single most important piece of data we get from the government, and that's because it has an impact on the Federal Reserve. On Friday, we got a surprisingly strong employment figure. Certainly stronger than I was looking for. So strong that I think you could argue that we might actually need a rate hike to cool the economy. Not A rate cut to turn the temperature up. Now, I am a huge believer in the late Marty Zweig's notion that you can't fight the Fed. When the Fed is raising rates, as I think they may have to, and you happen to be bullish, well, you're going to get steamrolled. That's where we are now. When the Fed's cutting rates, that's your green light to buy. That's where we were before last Friday. Simple idea, but it's maybe a lot of money over the years. So if rate cuts are now off the table, well, you have to get less bullish. Axiomatic people. Axioma. Part of my enthusiasm for this market came from the fact that Kevin Marsh, the new Fed chief, clearly wants to cut rates. I love Jay Powell. Responsible, smart, always doing his best in extremely trying circumstances. But I'm not going to complain when we got a replacement. Once a June juicy economy says the stock price up, lots of people are all excited about the stock market and their home prices going up too. But let's not forget, please, there's a huge percentage of people who know nothing about owning stocks or homes and are struggling to make ends meet. Many were hurting from inflation, including tariff hangover price increases, as well as less health care, cost protection and a gratuitous cutback in food stamps. The boost in oil prices, though, was the straw that broke the underclasses back. It's too much to ask for them to bear these changes. I thought that a rate cut could lead the beginning of concerted effort to help these people. We know that when management at Walmart, Dollar General, Dollar Tree and five Below all talked about the stretch consumer, then that's them's the facts, right? I mean, you can't dispute them. But there's also no disputing the labor report which showed that jobs are incredibly easy to get. With all the inflation in the system, a rate cut is just not tenable. My biggest bullish prop is gone. At least for now. Just gone. Second, we have this gigantic IPO coming from Elon Musk Space X, and it's reportedly oversubscribed, meaning it's unlikely to bomb. But what happens if it opens way too highly because there's not enough stock to go around? And then we watch a sickening decline after that moment. Now, this is a scenario that could very, very well happen. We keep hearing about how the stock is well priced, well placed, right? Big chunk of it's with retail. But what if there are a host of market orders that come in over the Transom and there's no stock to match the buyers. Well that could quickly send the stock of Space X to ridiculously high levels and that could be very bad. It would color things very negatively maybe for some time. I don't think today's rally nullifies the possibility of something that could be very tough to watch. That happens. There'd be a lot of negative press about the deal and it would spoil the bullish plot or at least what's left of it. Third, change that pullback in the stock of Apple today. The big cap stocks Apple have been the cleanest story. It didn't have to spend big on artificial intelligence. They had Alphabet to do it for them and they're being paid for doing so because they have such an outstanding and deserved user base. When you have 2.5 billion device out there there's a much sought after audience, right? And the scrum is perplexity. Claude, Gemini, Grok chatgpt. You can cement your relevancy by making a deal with Apple and that's why Google paid them to be their search function. We don't know the terms of the ideal but I think that Apple did fabulously on the whole package now includes Gemini. As Siri, I think the idea that Apple's. When I say as Siri what I mean is is that Siri's gotten much smarter. How about that? Apple is now is it done and there are no more improvements. That's what I kept hearing say it's done. Well that's just plain stupid. It's going to get better and better. No one's going to switch from this phone because they were disappointed by today's worldwide developers conference. Except for the hedge fund guys and gals who watch this show. Our network is it. Oh, it's really bad. I mean it wasn't even a tradable event. Although people tried to trade it and the traders are the losers, not Apple. That said, Apple's a leader, maybe the leader and I don't want to lose the leader of this stock market. We've lost all the other mega cap stocks now forgive me for wanting one of them to keep winning because I do think Apple could have gone higher on the same info we got today. I wanted it to open down and then rally. Finally there's the equity issuance from Google last week. I didn't see it coming. You didn't see it either. It was brilliant. If you work at Google, great. If you put place at Goldman Sachs you now have the money to build more profitless data centers to keep your cloud customers from going to another competitor and that's what they're going to do. It's bad for everyone else though, especially shareholders of Metta, Amazon and Microsoft. The ease of which Google raised the cash was incredible. Goldman Sachs did a tremendous job. But if there's more equity issuance from the other companies I just mentioned, especially before the SpaceX IPO, then will the SpaceX still be as well received? Won't maybe some of these people want the stock cut it back. Could the next deal be the deal too far and the market literally runs out of money? I've been saying for months, remember, any large account that gets a lot of stock is going to buy more once it starts trading. That's kind of the official custom. Who knows what that will mean to the stock itself. Who knows how many articles and news reports will be about how stupid people are buying it because it doesn't make any money now. Insult, injury? I don't know. Apple tonight Open Air announced that it filed its S1, so that one's now coming right down the pike. I was hoping there'd be a little bit of a respite there. Not for the weary. And how about Space X? Really? Okay, I am bullish on that. I think you can buy some and put it away from your grandchildren. Not with market orders. And wait, don't buy the opening. It could take a very long time for some of these projects to come to fruition. Obviously maybe your entire lifetime. Personally, I think that's too long a time horizon. But if you're thinking in terms of future generations, I'm not going to quibble with you. Be my guest. That said, this deal is a bit fraught. We don't know what's going to happen in the next four days and that can change a lot of things. We've now had the snapback from last week. I don't know what could propel us higher still. I do know that a lot of things can go awry though, so rate cuts from the Fed are likely off the table. The Space X deal will suck money from the rest of the market. More hyperscaler equity offerings could do the same thing. And now Apple's getting its clock clean too. That's more negativity than I can handle. Sure, maybe we run the gauntlet and go 4 for 4 positive, and that could make the market really roar. But the bottom line here is I just don't see it that way. I think the Fed's more important than anything and it's now going the wrong way. I Was hoping for reversal upward, not downward. Now, I wanted to get any surprise equity deal over with before the big Space X deal. And I fear an insane opening for Space X IPO followed by a Rennes to climb will leave a real bad taste in everybody's mouth. So I am not that bullish. My bullishness can wait. I think you will get a better time to buy than right now. Simple as that. Hey, why don't we go to angel or angel in California and hell yes, sir. Good day. Booyah. Jim. Thank you, sir, having me on the show. And I'm glad you called. How can I help? Well, on a genius move, I ended up buying Cerebras. When it first came out. Originally, I thought the stock was coming out of 170, 180. When I went to finalize this close, it was at 370. Right. And it has not been anywhere near that since then. So I'm wondering if this stock is a debt stock, should I get rid of it? I think it went up 36 points today. Gave me a nice bounce back. I cut it in half. Then if it goes up anymore, I get rid of the rest of the. This was a botched deal. This is what I most fear. Okay. They obviously misallocated. They didn't understand that stock could open very big. They picked everybody off. And everyone who bought the stock in the last two weeks is underwater. And that's precisely. Actually three weeks. That's precisely what I don't want to have happen. And I tell you, I've done these kinds of deals. I priced them, I've been in them, and it was done poorly. And now I just heard Ann Hell talk about how he did. And there are hundreds of thousands of people like him and her. And let me just tell you something. I fear that's what's going to happen this week and it's going to hurt you. And I'm trying to protect you. That's all I'm trying to do is protect you. Let's go to C.J. in Texas, please. C.J. hey, Jim, thank you for taking my call. Absolutely. I am a new member of the club and I watch your show and I really thank you for the education we receive. And I'm a small investor, but I'm very active. Invest. All right. Remember, all small investors. And I thank you for the kind words. Let's go to work. Okay, so my question relates to ServiceNow. Naw. And I've had it for five months investing in what I thought was a growth company that might grow A little faster than it has and then the price plummeted. So I hear mixed projections about the future of folding service now and it seems to be mostly a buy. But I'm interested in your thoughts. Okay, well, look, it's expensive. That's the problem. And it's one of these companies that has a lot of software as a service, but it's been pivoting rather rapidly. I've been watching this. The stock and I had been. I have mixed feelings about it, but of the stocks that are in the enterprise software business, I think it's better than most. Is that a lukewarm endorsement? I guess so. But then again, I'm not that bullish to begin with. Okay. Sometimes your bullishness has to wait. I want to be bullish. It always feels great. But I'm not going to do that at your expense. It's not to me, it's not the time to buy. Maybe it goes up, that'd be terrific. But to me it's not time. But all right. Now on Mad Money. Tonight we're continuing our IPO series with one that I think is a winner. It's called Inio Group. Does this new data center energy play deserve a spot in your portfolio? Conceivably, I'm going to crunch the numbers and the lower cost retailers have been doing really terribly lately. But that doesn't include raw stores. I'm taking a closer look at this all price retailer, seeing why it's been doing so well lately. And not public, but digital identity company. So Cure just ranked number 23 in CNBC's Disruptor 50 list. I've got an exclusive of the company's top brass. Find out more about its path forward. Maybe we can learn about the industry even though we can't buy the stock. So stay with Kramer. Don't miss a second of Mad Money. Follow imkramer on X. Have a question? Tweet Kramer. Madmentions. Send Jim an email to madmoneycnbc.com or give us a call at 1-800-743-CNBC. Missed something? Head to Mad Money. When you're at work, you never know when you'll be interrupted. But with the Dell Pro powered by Intel Core Ultra with vpro, no matter what distracts you, your laptop won't.
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This is a German maker of distributed energy solutions, including modular power generation systems for the data center. Might as well be a Bloom Energy. That's the power sell play with a stock that's up 1600 10, 64% over the past 12 months. 164 Though Bloom Energy has an alternate alternative energy angle to it. To be clear, India most certainly does not have really though anything that helps power the data center has been a huge winner. You know that I think even after last week's dramatic sell off, the data center thesis is still alive and well. Sure enough, India originally planned to sell 75 million shares at a price between 24 and 27, but demand was so strong they upsized it to 90 million shares and priced the deal at $27. That's the high end of the range. Then the stock open at $31 last Thursday. Okay, so far I like the progression and rallied to $34 and change at its highs and then closed around 33. All that's a good journey. As of today, it's sitting at $33.72. Didn't break down on last week's sell off. So clearly Wall street like this one. I like that it's not too far from where it came public, so you can still buy it. Makes sense that it's at a premium. India makes gas engines that generate electricity for all sorts of critical infrastructure, including data center. Rather than diesel, their engines run exclusively on gaseous fuels Natural gas, renewable gas, other specialty gases. Their equipment business sells the hardware under the Yen Backer and Wilkeshaw brands. While the data center only accounted for 11% of their total revenue over the past 12 months. And that may not seem enough to you, it did make up 61% of equipment orders, which tells you they're making a killing from this huge growth opportunity. At the same time, India also makes equipment to provide extra power to help stabilize electric grids, which makes up 31% of their orders in the past 12 months. Of what? Like that business too? They also got a compression business that serves the energy industry. I mean every secular trend they've got covered. The other half of India is the services division, where you know, I love services, where they help customers maintain and repair their own equipment. Nice steady source of revenue. I love this kind of business, but it rarely gets respected service because too boring. We know that GE Vernova makes a fortune servicing its installed base of turbines. India gives you the same thing. Hey, speaking of General Electric, India's two big brands used to belong to the old GE where they were sold to a private equity firm, Advent International. Smart fellows, back in 2018, which is now bringing the public. Honestly, if I were Scott Straczik, he's the CEO of Nova, I would love to buy this thing back. Well, ain't going to happen though. Why would I want to buy it back? Let's talk numbers. India's net sales grew 7% in 2024 for surging 22% last year thanks to their data center business. Remember, they all took off. So in 2324 it was not the big business that it is now. In the first quarter of this year, sales were up 26% with 35% growth in the equipment business. That's ARM accelerating revenue growth, something many managers just can't get enough of. More important than revenue though are India's equipment order intake and backlog. After equipment orders grew 33% in 2024, they skyrocket to 188% in 2025. Then in the first quarter of this year, orders were up 60% year over year. Thanks to those surging orders, India's backlog has grown sevenfold in just 27 months, from $650 million at the end of 2023 to 4.78 billion at the end of March. That's roughly three and a half times what the company did last year in equipment sales, which offering great visibility into future sales and earnings. Speed of earnings. India has been consistently profitable for years. Whether you're looking at the looser adjusted earnings before interest taxes appreciated amortization or EBITDA numbers or the most stringent GAAP earnings metrics which are tough and kind of represent what most of the big companies we talk about are sporting. That said, the company does some does see some have experienced some margin erosion of late. I'm not going to forget about this. But in 2025, even as India's net margin increased, its GAAP operating margin fell 70 basis points to 13.1% and its EBITDA margin fell 50 basis points to 20.8%. And in the first quarter this year they slid further. Their operating margin was down over 580 basis points year over year and their EBITDA margin was down 480 basis points. I know, stick with me. Worse, India even reported a GAAP net loss of 9 million in the first quarter. These are not great numbers. But you see, I'm not worried because this margin pressure mostly comes from India ramping up production in order to meet the insatiable demand for its Mach. You're going to get hit when you do that. Well, some. It's also caused by higher cost of raw materials. I don't like that. In the latest quarter they also took a big hit from IPO costs. Those aren't going to happen again. But what really gives us faith on the margin front is the fact that when you look at INEOS EBITDA amortization margin from last year and you compare it to other players, the same industry, they had the second best result in the group. Remember this is the way you have to look at things. You can't do it in a vacuum. Only Vertivor was better. You know how much we like for that's Dave Cody's company. And Vertigo wasn't better by that much. So it's something to watch. But I think spending big to invest in new production capacity was the right call. Plus any of cash flow numbers. They're very strong and the balance sheet looks fine, at least for private equity back ipo. While we're on the subject of private equity though, the company still controlled by Advent, the private equity sponsor and the Abu Dhabi Investment Authority. Collectively they control 88% of India's shares even after the IPO. That's quizzical. This is why the company actually didn't get a penny from the deal. It all went to the sponsors. And if those guys decide to ring the register, the stock's going to get pulverized. But for now the locked up I'm going to Say it's not a worry because the deal just happened. Finally, let's talk valuation. The best comparisons here are the other industrials that supply power generation equipment for the data center here I'm thinking Bloom Energy, which I mentioned, Caterpillar, Cummins, G Renova, Inverter. I want to use their enterprise multiples. That's where you take the go slow in this because I want you to learn enterprise multiples. That's where you take the enterprise value meaning market cap plus net debt, then divide it by the ebitda. That's more illuminating than the price journeys multiple when you're talking about capital intensive industries like heavy machinery. Now we don't have full 2026 estimates for India yet, but if you assume the rest of the year goes like the first quarter, a conservative assumption, then this stock is an Enterprise multiple of 46. Not great, not cheap, nowhere near Bloom Energy's enterprise bubble for the mid-90s. Then again, it's a bit higher than GE Vernon over Virta, but it's a much higher than Caterpillar or Cummins. Tough comparisons. So here's where I come down on India. India, because of what I just said, I can't be crazy about it. It's a good story right at the center of one of the hottest themes in the market, power generation. For the data center. In a perfect world, I'd recommend buying the stock a bit lower, say around 29 where it would be valued on par with even over. But this is not a perfect world, people. And besides my back of the envelope estimates for Inio are likely way too conservative. If you want to buy the stock here, you know what? I'm going to give you my blessing because it's such a good story. At the end of the day, this stock's hostage day. But until we see a slowdown, the great data center build out and I don't think we're going to. I am not threatening. Here's the bottom line. I think India is worth owning here. And while I prefer you wait for a pullback to pull the trigger, it wouldn't be crazy to put on a small position at least right here, right now. See if it comes in while we wait for SpaceX. That may give you the discount that you need to get in a nice size position of a bite size data center. Play bad money is back after the break. Coming up, Ross has been on a roll. So should you be buying in? Kramer's checking the racks and crunching the numbers to find out next. 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sponsored by Chumba Casino Thursday, July 16 CNBC Sport and Boardroom Join Fanatics Fest for game plan groundbreaking ideas shaping the future of sports and entertainment. Request your invite@cnbcevents.com gameplan. Mainly all sorts of traditional discount retailers like the dollar stores have been doing horribly because their core customers are under real pressure from inflation, especially higher gas prices. But there's one group that's still thriving here, the off price retailers. Unlike the dollar stores, these chains offer much better value because they have a different business model. Off price chains buy up excess inventory from struggling retailers. Pennies to the dollar because these stores need to unload their old stuff before they can bring in new merchandise. Then the off price change, mark that product up slightly and flip it to the consumer. You allow you to potentially get, well, say great stuff at incredible discounts. We know TJX has been thriving. It's a stock that's been a big winner for my travel trust and proud of that. But tonight I want to talk about a different off price play that's doing even better than TJX and it's called Ross Stores. It's a parent company, Ross Dress for Less and Didi's discounts. Since late 2024, Ross has been run by Jim Conroy. I don't know, maybe you remember him as the longtime CEO of Boot Barnes on the show a lot. I was always impressed with Conroy when he came on the show because he created tremendous, tremendous amount of value at Poop on. He was CEO of that company when it came public in 2014 at $16 and by the time his departure was announced almost exactly a decade later, the Stock was at $161 and change representing a 908% gain. Hey, how'd you do in that index fund years? The answer is 194%. Over the same period since he left, Boop Barn's been trading sideways. But Ross Stores is caught fire under Conroy's relatively brief tenure so far. The stocks already up 47% make it the best performer in the oil price space. Tell me it's business. It's all on him, believe me. The company's now had five full quarters under Conroy. And if you look at the numbers, well, they've been getting better and better quarter after quarter. When Roll Stores reported its latest results a couple of weeks ago, the results were spectacular. 17% safe store sales. I'm going to repeat that. 17 unbelievable. 20% revenue growth, 27% earnings growth. That's insane. Especially in what's supposed to be a real tough environment for retailers. Dollar stores are all wailing about the cash trapped consumer and meanwhile wall stores put up 70% comps. How they pulled off. After reviewing the past couple of quarters, I think that there are three main factors here. Under Conroy's leadership, Ross has better merchandising, better marketing and a better in store experience. First, merchandising is everything for these off price retailers. It's what TJX has long been particularly good at. People know that they can get things for cheap at an off price store, but they want to be delighted by what they can find at affordable price points. When Ross reported fourth quarter results in March, Conroy said that the company was quote, pleased with the strength of our assortment across the store where we have delivered more brands at the right value for our customers. End quote. He credited the company's buying organization for finding the right inventory. In particular, Conway called out the strength in Ross ladies business because that's the company's second largest product category accounted for 22% of sales this year. Keep in mind 70% of their customer base is female. When Ross reported again in late May, we learned that they really nailed the transition to their spring assortment. Not easy. On the last conference call, Conroy explained that success compounds when it comes to merchandising. As Ross stores has started seeing better traffic, their vendor partners have started giving them better products to sell because they're more confident that Ross can move that merchandise. As Conroy put it, quote, the merchants are constantly opening up new brands. We've found the confidence now to introduce brands that are more in the better and best price points and add those to the great stable brands that we have already. Okay, that's the merchandising component. How about market in early 2025? Not long after Jim Conroy took over, he brought in a new agency and so far they've been doing very, very well. As Conway said on the fourth quarter call, the company was pleased with its holiday marketing campaign. With 9% comps in the holiday quarter, you see why in particular Ross stores have been spending more money on social media. Honestly, it's a little surprising that they weren't doing this already, but at least Conroy has brought him into the 21st century. On the latest conference call, Conroy said that the Ross that Ross is quote in the very early, very, very early stages of focusing on the Ross and Didi brands, contemporizing them and having them get their own sort of followership, end quote. Finally, Conway and his team have repeatedly emphasized the in store experience. You can get the right product assortment through improved merchandising and you get more shoppers into the store through improved marketing. But if the customer has a bad experience, none of that matters. And I got to tell you, I didn't think Ross was really known for a great experience. A lot of this is just about execution. On the fourth quarter conference call, Conway said, quote the stores team did a great job of managing the holiday surge in the business. End quote. The supply chain team kept the stores stocked with attractive merchandise, enabling the company to turn over its inventory faster and making sure that every shopper was able to see some of the new and improved merchandise that the company had brought in. They also keeping the stores tidier, employing more security to prevent theft. They had a really, really bad problem and more cashiers to keep the line short. Now putting this all together, improved marketing brings customers into the stores. Once they're there, they find better merchandising than they remember and a better in store experience that converts to better sales which in turn lets Ross invest more in merchandising, marketing and fixing up the stores. That's why I think the stock can keep running. I don't expect to keep putting up 17% same store sales with that's too hard. But I do expect solid results and as the numbers get better management start focusing on expanding their footprint. The company has just under 2300 stores between its two brands. Conway thinks they can have 20, 30, 600. That'd be big valuation wise. Raw scores now trades at 29 times this year's earnings estimates, up from 23 times earnings when Conway took over. And yes, it's a bit rich for a retailer on an absolute basis. No doubt about it. But let's be. Why don't, why don't we be a little more, let's say, comparative? I don't think it's that perfectly expensive because TJX sells for like 31 times earnings plus. Given the recent track record here, it wouldn't shock me if Ross keeps beating the numbers, which will make the stock look a lot cheaper in retrospect. Here's the bottom line. The off price space is one of the few areas of retail that's really working here. And while TJX is my long term favorite, no doubt about it, I got to say, Jim Cornwell is doing, he's doing an incredible job at Ross Doris. And that stock's absolutely worth owning. I wish I could own 2 off prices because that's what I really like to do. But that seems to be not, not all that diversified as I tell you to be. Let's take calls. Let's go to Hope in Ohio. Hope. Hey, what's up? Hey, Hope, how are you? I'm doing okay. How about you? Good. I'm great today, thank you. I'm glad to be on with you today. I'm glad you're on. I'm glad you're on the show. How can I help you? Yeah, I just had a question about Costco. What do you think the price a good buy for Costco would be for a long term holding given the recent consumer struggles? Okay, Hope, I think that you buy some here, it's at 47 times earnings and then you hope it goes to 45. Now, I know people say, what do you mean, buy some? And then hope it goes lower. But that's how I work. I want value just like I want value at a store. And I think if you start Costco and you let it come in a little, that's the way to play it. The worst that happens is it flies right out 974 to 1025 and you have to kick it out. Let's do it that way so that we don't get caught up at one level because nobody's that good. Let's go to Adam in Georgia, please. Adam. Hey, Jim. What's up, buddy? I don't. You tell me, chief. I'm just kind of going by day. What's happening? All right. Well, Jim, check it out. I bought a Home depot for around $30 back in 2001. Well played. I felt it since. Should I buy some more? It's Actually one of the things now you could say Jim, you're not the call in this because you started buying too soon for the travel trust. But I would tell you this, it yields 3%. That is a magical level for Home Depot. I think you can buy more. I know you're violent of your base but your basis is just so low. I think that this is a good level. No one thinks that the Fed's going to cut rates and that's why the stock is trading where it is. I think 20 times earnings in the spring selling season. If you got a good one, I appreciate the call. Let's go to Dave in Texas. Dave, good afternoon Jim. Huge fan. Want to get your input on ELF want to get your input on ELF Beauty since earnings is it a buy, hold or sell the stock? I think this is a very very challenged group. Okay not necessarily that ELF stands out. Almost every company in this cosmetics group is too challenged. I don't want to touch it even though I think it's a good company. When your milieu is troubled you can't bucket same thing. By the way if I were talking about liquor you call me about Brown Foreman I say you know what too tough a glue off price is one of the few parts of retail that's actually working right now. I like what the CEO is doing here. I'm excited about Ross. Much more made money including my off the record off the tape I should say exclusively digital identity company so cure so then this market revolves around one company and that's Nvidia more waste and money. I'm really why it's more important than ever. Ahead of a wave of new supply and oil calls Rapid fire tonight's edition lightning round so stay with creamer. You know me I always like to keep an eye on privately held companies that have the potential to transform their industries take so that's the number 23 on CNBC Disruptor 50 list of 2026. Now this is an identified identity verification company that uses AI to prevent fraud. But there's more to it than that. It's necessary because the hackers have AI too and they know how to put it to work. Having the right identity verification platform can help keep them out. We know so your had annual revenue members private coming a run rate of $340 million in April and they are growing new ARR at a 62% clip. We know that George Kurtz from crowdstriker always say that would be an amazing number and since I check with them ahead of time I know it is so let's take a closer look at that. Thompson, Matt is the president and CEO of Commercial. President. Sorry. And chief Commercial Officer. So here to learn more. Mr. Thompson, welcome to Man.
- [34:00]
B
Yeah, thanks so much for having me on.
- [34:01]
A
It's a huge honor. It's exciting to have you. It's exciting to have you because you have a tremendous background. Thank you. You first of all talk about, why don't you tell us, give us the one on one on so CURE and then we'll go into your fantastic background.
- [34:14]
B
Yeah, absolutely.
- [34:14]
A
Well, I appreciate that.
- [34:15]
B
And so CURE made the disruptor list this year for the first time. Really? Because we've been focused on disrupting the fraudsters.
- [34:22]
A
Okay.
- [34:23]
B
So CURE is providing a native trust infrastructure.
- [34:27]
A
Oh, you got to explain to people what that means. Sure, I. Native AI.
- [34:30]
B
Native trust infrastructure. And so AI has really changed the game with respect to trust.
- [34:37]
A
Right.
- [34:37]
B
Fraud has made it and has made it so easy to create deep fakes, to create synthetic identities to make it so that you can't trust what you see or hear online anymore. And so we are re establishing trust and helping companies and good organizations identify when that's happening. When fraud is trying to infiltrate and help trustworthy people like you and me get through the process without a lot of.
- [35:04]
A
Okay, so you were for the enterprise. I don't hire you directly, but you work for the enterprise.
- [35:08]
B
That's right. And all the major banks, all the major fintechs, you soak your gaming platforms, government.
- [35:14]
A
And so how would I recognize that it's yours, do you think? Or is it so seamless? I wouldn't know.
- [35:19]
B
So it is seamless. It is seamless. We're completely in the back end. Organizations send the data to us to process through different machine learning models that we've developed over time to detect any anomalous patterns or fraud threats when identity trust matters.
- [35:36]
A
Now I understand and this is where I want to go for the next level here. World War Fraud. We're fighting.
- [35:43]
B
That's right.
- [35:43]
A
And who knows World War Better to fight fraud than you? And I'm judging from that lapel pit.
- [35:49]
B
Yes, sir. Yeah. This is the unit insignia for the 75th Ranger Regiment. I served in the army for 11 years, spent most of that time fighting in the global war on terrorism war. Because obviously Saturday was the 82nd Memorial D Day. And there are a lot of similarities to the wars that I fought in the global war Terrorism, where, you know, the enemy is very networked, decentralized and rapidly adapting. And that's what we're seeing with AI driven fraud today. Where you know, all of the good organizations that are trying to deliver services or benefits to their customers are up against this very networked and decentralized and constantly adapting fraudster bad actor that is relentlessly attacking trustworthy organizations and individuals.
- [36:37]
A
Now do you also handle smaller businesses? I've had some friends who have businesses and someone got in and took everything and or insisted that look, we want $1 million. Those kinds of people too, you have to stop them.
- [36:50]
B
Absolutely. Well, we did start with financial institutions in Fintech. So Today we serve 18 of the top 20 banks, over 600 of the major fintechs. We've moved recently in the last few years into gaming, government crypto to protect them. But earlier this year we launched a self service capability for smaller businesses to be able to leverage that same bank grade identity fraud prevention.
- [37:15]
A
Good because they're so over their heads it's just painful sometimes. You worked at Capital One?
- [37:18]
B
I did.
- [37:19]
A
We have to think that that's an amazing company that doesn't get enough credit. I mean everyone knows a credit card but they're a really well run company.
- [37:26]
B
Absolutely. And digital first class first, you know. So a lot of innovation. We like to think of ourselves when I was there as, as the original fintech because they were doing so many innovative.
- [37:38]
A
No, that's right. Richard Fairbank explain that to me. They are the original.
- [37:42]
B
They are, absolutely. And they create a lot of innovation when it came to credit decisioning. But what I got to see when I was leading consumer identity Capital One was just the scale these attacks and it has changed so much for the last 10 years because of things like fraud, GPT. So we talk a lot about chat GPT and the positive benefits of AI for the consumers. Fraudsters have all of these same tools and are using them to attack organizations like CAP1 and the other major banks. Now we help defend Capital One and help them say yes to trustworthy people without friction as well. But the problem is rapidly evolving now.
- [38:19]
A
Is there any advice that you can give I know you work for the enterprise to our viewers about something that you see people doing wrong all the time.
- [38:27]
B
Yeah, I think you know, just being very nonchalant about sharing their data. I think the biggest threat today is, is overexposing yourself with your digital footprint, putting too much information out there in social channels about your personal movement or your personal information. All of that has been exposed obviously through the massive data breaches we've seen over the last decade.
- [38:49]
A
But at the end of the day
- [38:50]
B
people need to really take more control of their personal information. I Think the scams are a big problem now where you know, family members can be impersonated and the other family member can't tell the difference because of AI driven fraud. And you know, you need to create controls that are offline controls to protect yourself against that as well.
- [39:10]
A
Well, look, I'm. I'm glad you're working for the good guys, but I know that would be the only way you'd go.
- [39:16]
B
That's right.
- [39:16]
A
And I want to thank relentless. Well, that's terrific that you were there and thank you for serving enduring. And I know you were servant. Yes sir. You were servant. I know that unit. Actually that's Matthew Thompson. He is the president and cco. Because I want to make that clear. Chief commercial officer of so Cure and your number 20 field constructors. Congratulations. Thank you so much. Much absolutely forward to seeing you here again. I hope so too. M. Bunny's back after the break. Coming up, he's the fastest mind on Wall street. So we're putting him to the test with your help. Bring on the lightning round next. It is time. Sh. The way around. Good herp, cuz I was only. And then the lightning round is over. Are you ready, Steve? That time the light we're going to be. Let's start with Kyle. New York. Kyle Doctoricus Kramericus. How's it going, my dude? Oh man, it's going fine. How about you partner? It is going great down here in New York. I'm going to the game, Jim. All right, I like that. I like that. What's on Going. Going on. Let's make money. So let's make some money. I. I'm thinking that this stock can make me party like it's 1999, just like the Knicks. That stock is Xanadu Technology. No, no, no, that makes no money. It's another one of these Quantum ones that I don't buy IBM if you want Quantum, okay, buy IBM. But I appreciate the sentiment. Let's go to Robert, Missouri. Robert. Mr. Jim Kramer. How are you doing today? I am doing well. How about you, Robert? Good. Thank you for taking my call. I was wondering about British Petroleum, bp, What do you think about the oil company? If you want to own an oil company, I think it's fine. I prefer Chevron on the large and I prefer EQT on the NAT gas side. Let's go to Jeremy in New York. Jeremy. Hey, thanks Jim. I want to know your thoughts on this technology driven financial services company which is bridging traditional finance with the digital economy while at the same time operating a Bitcoin, treasury and a 1.6 gigawatt data center. The company is Galaxy Digital Ticker GLX Y. Okay, that's Mike. Novogratz is very solid guy. I would be a company that I would own if I wanted to really own Bitcoin. Except for my. My belief is if you want to own bitcoin, own Bitcoin. But there are other things that are positive about it. Mike is very smart guy. I don't know him personally. He's just. I just watch him on TV handily. Let's go to Steve in Illinois, please. Steve. Greetings, Jim, from the Windy City where summer has finally arrived. First time. My friend Heather Gaines just came back from Chicago is right over there. So I know that you're in good company. I'm sorry, go ahead. I didn't mean to interrupt. Oh, sure. My, my father was a specialist in 1973 at this exchange where he traded only call options bank. Back then puts didn't even exist. Can you imagine with the recent turmoil in exchange stocks going forward? What is, what are your thoughts on cboe? You know, the stock broke down here for I think, no real reason. I would buy a little bit here and then if it comes in by more. But it suddenly became a very ugly chart and you know how people are about, about some of these financials. The chart is king. Let's go to Scott and Maryland, please. Scott. Yeah. Hey, Jim. Hey, Jim. Booyah. Booyah. Hey, what is going on with one of our favorite tractor supply? It's really, you know, I've been, you know, the mole this went over is at the end of this, you know, kind of city, urban to rural trade that went on during COVID The numbers are bad here and I've got to find out what's going on. I wish to cover. Come on. I can't recommend the stock and how long is a very good CEO, but I cannot recommend the stock of Tractor Supply until I know more. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer's convinced there is one linchpin supporting the entire market. And it's a familiar name. He's explaining why it's still Nvidia. Next, Jim Cramer. I'm a firsttime caller, a happy club member. I want to thank you for being the people's champion of investing. Thank you for helping me become a millionaire. Look, no matter what you say, it all comes down to Nvidia. I say that because the power behind general bi. Behind agents playing training is Nvidia. And if video runs out of orders, then the biggest company on earth certainly won't be able to maintain its $5 trillion market cap. As I said at the top of the show, I'm feeling negative on the market right now because we've got this wave of new supply coming and that's what killed us in 2000. Every time we've gotten too much spy, like the NASDAQ secondary delusion 2014, like the IPO boom in 2021, it's led to sobering declines that tend to crush the market's leaders. And it's one that few people see coming because there's nothing to do with the fundamentals. Some leaders hold it better than others. The hyperscalers may need to raise money to maintain their status as cloud service champions, but in video is the opposite. It's could easily fill its $80 billion buyback with its consistent cash flow. Still, I've been concerned about orders for Video because two hyperscalers, Alphabet and Amazon, have done their best develop alternatives to Nvidia's chips. Amazon's got this trainium and output selling TPU's. Amazon talks about having a $50 billion chip business all of its own and much of it, I think you could say come out comes out of it is high. Alphabet's got a huge business too and would attest to the superiority of its own chips over in videos. Now they can make those claims because there are no clear benchmarks, even though I think they're not true. But late last week we learned today that we learned that Google will be paying space x $920 million a month to use that company's bountiful Nvidia hoard. Which means maybe customers of Google Cloud don't want to rely on Google's tpu. That's something that was pondered by the authoritative Ben Thompson in his eye opening strategy update this morning. I found that very, very powerful. Maybe all this though is inside baseball to you. If you've been watching what CEO Jensen Huang has been saying, well, you'll notice he's spending a lot of time with governments because sovereign AI is now serious business. He's gotten South Korea to invest in it. Nvidia's working with Singapore, India, Japan, Switzerland, Germany, Taiwan, Israel, Qatar, the uae, Saudi Arabia, many others. Why does this matter so much? Well, because we keep hearing that the hyperscalers buying invidious chips are losing money on the purchase. That's what they tell us, something I think Jensen would surely dispute. But all these countries are buying Nvidia's wares too, and they're not looking for a quick return. Right now they're 14% of the business that could rapidly become much bigger, and that number doesn't include what's in the pipe. I think that number will be substantially higher this time next year, enough to allay the fears that some hyperscalers just don't want Nvidia at all. If they can get really get away with it, which I don't think they can. Nvidia doesn't want to be hostage to customers that are trying their best to get off Nvidia. It wants to get every customer. Can I worry that there won't be enough money around after the SpaceX IPO to buy shares and in companies that are funding the great data center build out? Jensen's overseas trips help calm worries because he's found a whole new customer base is really exploiting it. I understand that chips are the envy of the industry. Each iteration, like the Veer Rubin that's the current one, brings more business. Are the chips expensive? Can they generate a good payback? I guess it depends on who you ask, but real countries are buying these chips in droves for their sovereign AI programs, and that alone will lessen Nvidia's dependence on a handful of major hyperscalers. I'm not changing my view. I still say own in video, don't trade it. But with the upcoming wave of mega iPodOS, it's going to be tough for anything tech to stand out in the near term. Even a company as tremendous as in video, which is most the most important stock in this entire market. I like to say there's always a more market somewhere and I promise you to find just for you right here on Mid Money. I'm Drew Kramer. See you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer Tyler Redick and Chumba Casino A winning combination. 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