Mad Money w/ Jim Cramer 6/9/25

Summary

Mad Money w/ Jim Cramer – Episode Summary (June 10, 2025)

Release Date: June 10, 2025

Podcast Information: “Mad Money” provides listeners with insider insights from Jim Cramer, a renowned Wall Street money manager. The show demystifies investing by navigating the complexities of the stock market, offering buy, sell, and hold recommendations, and featuring the engaging Lightning Round segment where Cramer interacts with callers.

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1. Introduction

Jim Cramer kicks off the episode by addressing recent market movements, emphasizing the contrasting performances of major indices.

Notable Quote:

“Today, Dow dropped 1 point, S&P gained point on A percent. Nasdaq climbed point 3%. Amazes me that analysts refused to learn from the mistakes that some stocks should not be taken off the biles.”
[01:56]

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2. McDonald's Stock Downgrades

Cramer delves into the recent downgrades of McDonald's by Morgan Stanley and Loop Capital, critiquing the analysts' lack of faith in the fast-food giant.

Key Points:

• Morgan Stanley downgraded McDonald's citing high valuations and potential structural pressures.
• Loop Capital expressed concerns over McDonald's new chicken strips launch, predicting a shortfall due to customer dissatisfaction.
• Cramer defends McDonald's management, highlighting their track record of swiftly discontinuing underperforming products.

Notable Quote:

“McDonald's is an amazing company. Do you think CEO Chris Kamchinski ignores the franchises? Do you think he doesn't know the products? Ugly? Do you think that he'll bet everything on a product that people don't like?”
[04:05]

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3. Tesla's Resilience and Robotaxi Launch

Shifting focus to Tesla, Cramer expresses bullish sentiments despite recent downgrades, particularly highlighting the upcoming Robotaxi launch in Austin.

Key Points:

• Acknowledges current challenges but remains optimistic about Tesla's innovations.
• Points out that Tesla's stock rose by 4.55% even after two downgrades, showcasing investor confidence.

Notable Quote:

“Today in the wake of two downgrades, the stock is up $13.44 or 4.55% on two downgrades.”
[07:25]

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4. Apple's Market Position and Challenges

Cramer addresses Apple's performance post its Worldwide Developers Conference, defending the company's strategic moves amid regulatory pressures.

Key Points:

• Apple faces potential legal challenges from a ruling against Google's search dominance and a case with Epic Games.
• Despite these hurdles, Cramer praises Apple's resilience and strategic pivots, such as relocating iPhone production to India.
• Advises holding Apple stock, emphasizing its robust fundamentals despite short-term setbacks.

Notable Quote:

“As long as nobody switches to Android, call me sanguine about Apple. Not more than that, not certainly less than that.”
[09:55]

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5. Broadcom's Earnings and Stock Analysis

Cramer conducts an in-depth analysis of Broadcom's recent earnings report, viewing the stock's decline as a potential buying opportunity.

Key Points:

• Broadcom reported robust revenues and growth, surpassing expectations.
• Despite strong performance, the stock sold off due to prior price surges and minor concerns in the semiconductor segment.
• Highlights significant growth in Broadcom's AI revenues and optimistic future guidance.

Notable Quote:

“Contrary to the market's reaction, there was plenty to like about Broadcom's quarter and the stock only sold off because some investors were expecting an insane blowout.”
[14:45]

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6. Circle Internet Group's IPO

Post-break, Cramer examines the highly successful IPO of Circle Internet Group, a major player in the stablecoin market.

Key Points:

• Circle's IPO was oversubscribed, with the offering price doubled and the stock skyrocketed on its debut.
• Explains the concept of stablecoins, positioning USDC as a more transparent and reliable alternative to Tether.
• Despite Circle's strong business fundamentals and revenue growth, Cramer expresses caution due to the stock's soaring valuation and insider selling.

Notable Quote:

“Circle Internet Group’s a solid company. But the stock right now has gotten too hot for me. I can't recommend it up here.”
[22:14]

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7. Interview with Rob Pace on Consumer Spending and AI

Jim engages in a discussion with Rob Pace, CEO of 100X, focusing on consumer spending trends and the evolving landscape of AI platforms.

Key Points:

• Consumer Spending: Contrary to prevalent beliefs, data indicates consumers plan to increase spending by 1% compared to April, suggesting economic resilience.
• AI Platforms: Perplexity is gaining traction over established players like ChatGPT due to improved reliability and sourcing, marking a significant shift in user preferences.
• Rob introduces the concept of "future hard data," bridging the gap between predictive soft data and reliable hard data.

Notable Quotes:

Rob Pace: “Our May data actually, the consumer told us they were going to spend 1% higher than they did in April.”
[31:36]

Jim Cramer: “I use these heavily and I switched entirely to Perplexity. Because I think it's right more than it's wrong.”
[33:00]

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8. Lightning Round Highlights

In the Lightning Round, Cramer interacts with callers, offering personalized stock advice and sharing motivational stories.

Notable Interactions:

• Tracy from Nevada shares a heartfelt story of how Cramer's advice and Nvidia's performance helped her overcome personal hardships.

  Quote:

  “Thanks to you and Nvidia, I was able to pay off that home last week.”
  [39:19]

• Kathleen from Pennsylvania inquires about UPS stock, prompting Cramer's cautious stance despite acknowledging UPS's efforts to improve.

  Quote:

  “It's a very tough stock to own. ... I would say don't own the stock.”
  [43:55]

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9. Sector Rotations and Market Observations

Cramer discusses current sector rotations, moving capital from high-performing tech giants to more affordable, yet solid, alternatives.

Key Points:

• Broadcom's sell-off triggered money flowing into companies like Dell, AMD, Texas Instruments, and Marvell Tech.
• Warns of potential market risks if the current trend of moving into cheaper stocks continues without substantial growth.
• Highlights the importance of sector diversification and being cautious of frothy markets in areas like quantum computing and cryptocurrencies.

Notable Quote:

“If the current crop keeps going higher and higher still and we keep having so much froth in the rest of the market... then we are indeed headed to the danger zone.”
[43:55]

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10. Conclusion

Jim Cramer wraps up the episode by reiterating key insights and urging listeners to stay informed and cautious amid market fluctuations.

Notable Quote:

“I like to always bull market somewhere palm side finding just for you right here man. Money I'm Jim Cramer. See you tomorrow.”
[47:27]

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Final Thoughts

This episode of "Mad Money" offers a comprehensive analysis of current stock performances, IPO trends, and consumer behavior insights. Jim Cramer's blend of market expertise, real-time stock analysis, and interactive segments provides listeners with valuable investment guidance and actionable intelligence.

Remember: Always conduct your own research or consult with a financial advisor before making investment decisions.

Transcript

[Bank of America]

As America's leading business lender, bank of America is on your corner and in your corner. With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper. What would you like the power to do? Learn [e-mail] LOCALBUSINESS bank of America Official bank of FIFA Club World Cup 2025 Copyright 2025 bank of America Corporation. All rights reserved. Don't just ride the index, Seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Capcor ETF, part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail in index as compared with passive ETFs. Fidelity Brokerage Services LLC Member NYSE SIPC.

[Jim Cramer]

Hey I'm Kramer. Welcome to Mad Money. Welcome to Kramer. I'll be friends. I'm just trying to make you watch your money. My job is not just entertained, it's put to educate, to teach you. So call me at 173cnbc cream with Jim Cramer. Some stocks should not be downgraded. Sell, sell, sell. It's just not worth it because it's only a matter of time before they snap right back. Yet we see this happen every day. Including Today, Dow dropped 1 point S&P gained point on A percent. Nasdaq climbed point 3%. Amazes me that analysts refused to learn from the mistakes that some stocks should not be taken off the biles. Today Morgan Stanley downgraded the stock of McDonald's, saying it's arguably too expensive and that it will probably not be insulated from some structural pressures on fast food. Now with the stock at 25 times earnings, consensus estimates too high, Morgan Stanley moved to equal weight or whole stock dropped $2.58 1 or 0.84% on that. Now it would not have made much of an impact on me if McDonald's hadn't also been downgraded by Loop Capital on Friday, again concerned that it won't beat the consensus numbers. Look, I understand the downgrade stocks up 5% holding, so but I think that in the long run, it has never paid to downgrade Mickey D's. It's the king. It offers good value and it's incredibly well run. Let's see Morgan Stanley's valuation downgrade aside for a moment, focus on Loop Capital's Friday downgrade. The because it's much more visceral. It's observable. You're on it. The main thing Loop cites for what they think will be a shortfall is negative reaction to the new chicken strips launch. That's right, a dish that's turning off people. The analyst said that he was hoping the new dish would turn things around for McDonald's, but it looks like customers do not like how the strips are made. Customers seem to favor heavily breaded chicken and the lightly breaded chicken they're serving. No, not buying it gets worse. The strips apparently are not attractive. Some would say they're ugly compared to previous McDonald's offerings. And then the coup de grace. McDonald's will soon be offering a snack wrap based on the strips. And while the good news is the strips will cover up how ugly the wrap will cover up how ugly the strips are, bad news is that maybe they don't taste good. Well, Loop says that's hardly a reason for optimism. And I understand that everything I heard from what they said makes some sense. But we have to wait. The wraps will be rolled out regionally soon and the available nationwide July 10th. Sounds bad, right? That's not what I want to wait for. I say this. I say, wait a second. This is McDonald's. Do you think this company is stupid? Do you think that CEO Chris Kamchinski doesn't pay attention to these things? Do you think he ignores the franchises? Do you think he doesn't know the products Ugly? Do you think that he'll bet everything on a product that people don't like? Listen, McDonald's is an amazing company. It didn't become amazing because it's stuck with bad ideas. I remember going to McDonald's when they released the Arch Deluxe burger. It was so exciting. I couldn't wait. Yes, it was that big a deal came in this plastic thing. So I got it, I opened it up and the lettuce and tomato were wilting. I was bummed, I admit it. But I didn't even want to tell anybody because the hype was so great. I didn't want anyone to think that I didn't like it. I didn't want. I didn't want to say anything to anyone. Well, this was McDonald's. I thought they'd figure it out, but they couldn't. So what'd they do? Did they stick with it? No, man. They killed it. The Arch Deluxe, 1996. Biggest launch in years, and they just killed it. Why? Because it wasn't good enough. They knew it was a loser, so they just discontinued. It. Was plenty embarrassing, but they did it Anyway. That's who McDonald's is. I'm sure it was embarrassing when McDonald's fired a CEO for misconduct. They just blew them out. They didn't convene a panel of lawyers and board members to study while the CEO hung on fighting the inquiry. He was boomed. It was embarrassing when they let go another CEO because he failed to deliver. But they listened to the franchisees and they fired the results. Each time, the company got better. And that's what happens at great companies. Great companies like McDonald's. Or how about how they raise the prices? But things got. People said it was too aggressive. They heard a backlash to where they do simple. They offered a value meal that people loved. It was a great idea and it is a hit. Every one of these decisions was made without fanfare, but they were done and done with alacrity. That's why I say this chicken strip failure. Well, if it doesn't work, it's going to be gone. Hey, by the way, the rap to take that the strength of McDonald's that is that they don't fight battles they can't win. When something doesn't work, they just dump it and they move on. Which is why I say you downgrade a stock like McDonald's at your own pearl. Now, it's a big reason why I don't want to bet against Tesla, even after a host of downgrades. You get to him today. Look, I don't like the spat with the president, Musset his opinions, but it was a bad call for the shareholders. Right? I don't like that cars aren't selling well. I see that, too. I wanted to focus on the court, focus on his robots. Blow things away, for heaven's sake. But I don't think he's done. There's another act coming from Musk, and I want to benefit from it. The Robotaxi launch in Austin. That's right. Thursday, June 12th. Stock got two downgrades today. And you know what happened? How much did it go down Was it down 10? Was it down 20? No. Let's just check it out for a little cinema verite. The stock was. Oh, look at that. It was up $13.44 or 4.55% on two downgrades. Yeah. Today in the wake of two downgrades, the stock is up $13.44. Hey, finally there's a stock that people now love to downgrade. Say, hey, let's go downgrade that. What are you, what are you doing tonight? I'm going to go downgrade. I'll downgrade it too. I was going to have a cocktail. Sorry, I'm talking about Apple. I expect to hear some downgrades tomorrow because of today's supposedly ho hum Worldwide Developers Conference. Not that anyone thought it was going to be anything more than ho hum, except for some people. As I listened to what they were saying, I didn't get the sense that there was anything truly mouthwater or shaking from Apple. Nothing that maybe wanted to upgrade my phone. But what the critics seem to be missing constantly is that the only question I heard was upgrade or not. Did you hear Switch? I didn't hear Switch. As long as I didn't hear Switch, I'm going to hold the stock. You may have to take a beating short term when people downgrade, but we're now at the moment when I hear far more negative comments from analysts and hedge fund managers than positive. That means that the downside is most likely more limited than you think. It still can go down. I'm talking about limited. Let's consider a couple of bullet points. First, Apple's in a dry spell. It doesn't have anything new that the people want, but it has plenty of optionality. You know what, what it should do. It should just go acquire perplexity. I know they don't like acquisitions. Well, anything can happen. I wish they buy it. I hope these guys don't wait until some company offers to pay Apple to be their search engine and it isn't the best. Perplexity is my favorite and they definitely can afford it. Second, right now, Apple staring down two guns. One, a ruling that declared Google monopolist that may end its largesse toward Apple. Like the $20 billion check it wrote to them in 2022 to be the default search engine. It's also on the verge of losing a key case involving Epic, the gaming company that would let them get around the 30% chunk that Apple takes from every transaction. The App Store. I think Apple could lose one, probably won't lose both. And if it doesn't lose any. Whoa. Finally, let's understand something. Apple is not a company that stands still, okay? It knows how to bread the chicken strips. We can sit here and criticize Apple and perfect. But can we stipulate that in the last year it's reasonable to believe that Tim Cook, the CEO, might have been a little distracted? Here's a man, a patriot I might add, who's been trying to do everything he's supposed to do in order to meet the demands of the President of the United States. The President wanted investment the U.S. what does he do? He announces Apple's going to spend 500 billion in the US over four years. No one ever made a bigger commitment what the other companies do besides Nvidia. President then made it clear they didn't want Apple to make as much product as he did in China. So unbelievably, in almost no time flat, Cook moved a huge amount of iPhone production to India. Then Trump says that India's not the right place. The phones have to be made here. I mean, come on. With that pressure, maybe you can see why this may not be the biggest year for Apple. Most managers we shell shocked. All that happened here is that the Worldwide Developers Conference was ho hum. No kidding. I'm glad they had it. As usual, Tim Cook handled all this stuff gracefully. The single complaint I would say that would be difficult for most of us to do. I don't think we'd be having our most creative year, do you? So go downgrade. Go put the hate on them. They don't put enough bread on the sticks. I don't know. I know that they missed the cycle. I know that the President made their plans untenable and they might have to eat a giant 25% tariff, but Apple's becoming one of the most hated stocks in the universe. When we get the downgrades tomorrow, many will say sell. I can't blame them. But the bottom line, as long as nobody switches to Android. Call me sanguine about Apple. Not more than that, not certainly less than that. Sanguine doesn't mean buy, but it sure doesn't mean sell into tomorrow's buy to holds. I'm not buying those either. I need to speak to Michael in Florida right now. Michael.

[Michael]

Hey Jim, thank you for taking my call.

[Jim Cramer]

My pleasure.

[Michael]

I just wanted to first let you know that you built my portfolio and I love it. But I also want to thank you for your entertainment value. I have a six year old daughter and she actually likes watching part of the show with me where she likes to Listen to you go and hit the big board of buttons as she calls it. And then she asks. She absolutely enjoys it. Thank you so much. It gives me a chance to actually talk to her and you know, have a young person who's now learning about investing even though maybe she doesn't know what's going on.

[Jim Cramer]

I like that. You know when we started the show we had kind of that in mind. I said look, I want everyone. I didn't think a six year old candidate but I just kind of wanted the family to watch it. But I really want. It was fathers and daughters to watch together but or you know, mothers and I wanted all that. But go ahead, let me help you. Michael, what's up?

[Michael]

Thank you so much. So My question is ConocoPhillips. I'm thinking about selling some shares but I'm worried about. I wanted to buy Eli Lilly. Now you told me to buy.

[Jim Cramer]

I like your idea. I like your idea. I like your idea. I think Louie's at a great level. Conoco is not as all the oils go to like 4, 5% yield. This is only 3 and a half. I want you to sell the conical and buy the lily. I like that idea. And that ladies and gentlemen is conclusion of the breaded chicken strips. And don't you love that the breaded. That's how we created a great American company. And they didn't put enough bread on the chicken strips. Next thing you know, they didn't like the dark meat, they didn't like the white meat. I mean how about the. Hey, how about the neck? I always like neck. Apple's quickly becoming one of those hated stocks in the market. But as long as people don't start switching to Android. Homie sang well on Apple please tonight. Oh boy, it's so frustrating to watch a company report strong earnings only for Wall street to send the stock lower. I'm digging into what happened with Broadcom and why I'm still sticking with it. And Circle ipos was far from being square. I'm thinking of this red hot listed. Give me my take on the name. And what should we make of the state of the consumer? Data from 100x found some conflicting data that I think is important for investors. No, I'm getting all the details from the company's CEO. So cancel the chicken and stay with Kramer.

[Mad Money Team]

Don't miss a second of Mad Money. Follow Imkramer on X. Have a question. Tweet Kramer, hashtag 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.

[Bank of America]

Don'T just ride the index, seek to outperform it with FELC, the Fidelity Enhanced Large Cap Core ETF. Unlike passive ETFs, FELC is run by a team of experts to adapt to market conditions and pursue upside potential wherever it's hiding. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. Discover FELC, the Fidelity Enhanced Large Cap Core ETF part of Fidelity's suite of active ETFs. Learn more at fidelity.com felc before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus and offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. Fidelity Brokerage Services LLC member NYSE SIPC.

[Mad Money Team]

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[Jim Cramer]

There'S nothing more frustrating than watching one of your favorite companies report a strong quarter only to see the market find some reason to send the stock lower. But in retrospect, these can be great buying opportunities. Just what happened to Broadcom last week? That's Avgo longtime Kramer fave big holding in my charitable trust. But the stock sold off hard after the company reported on Thursday night. Sell, sell, sell, sell. Why? Okay, Brooklyn reported revenues of just over $15 billion, new record for the company and up 20% from a year ago, coming in ahead of consensus expectations. All good $7 sales were up 17%, up from 11% in the previous quarter. That's more than half the business on the infrastructure software side, which makes up the remaining 44% of revenues. WorldCom also posted better than expected numbers. 25% growth. Throw in solid margins, you get a $0.02 earnings beat off of $1.56 basis up 44% year over year. What do you need here to get someone to like a stock even better? Management had a lot of good things to say about the current quarter. Their guidance was healthy, yet the stock still sold off 5% the next day. Now some of that's because the quarter wasn't perfect and stock had already run up pretty dramatically going to print. This thing did have some hair on it. Broadcom's 9 semiconductor business was an area of concern for some investors, revenues declining 5% year over year, while management indicated that they believe the non semiconductor business is, quote, close to the bottom. They also mentioned this business has been relatively slow to recover. Now look, it's been less than stellar. I know and no one know. I was expecting a real big rebound. We also didn't get much in the way of major customer updates. Broadcom has three major customers that they don't mention by name, likely Alphabet, Meta and bytedance, the parent of Tick Tock. In addition to the Big three, the company has highlighted four prospective customers that we were hoping to get more color on in this quarter instead. Well, there was a lack of notable commentary in prepared remarks and when asked directly about in the Q&A, CEO Hock Tan said simply, and I think this was perfectly fine when he said no comment. We don't talk about prospects, we only talk on customers. End quote. Fair enough, but some people were hoping for more. What else? Broadcom's gross margin guidance for the current quarter came in light down 130 basis points from the quarter that they just reported. Not egregious by any means, but as lower margin custom auxiliary processing units became a larger part of the sales mix, that might continue to put pressure on the overall margins, although I think it's going to be less and less each quarter. Put it all together though, I think the main problem is the Broadcom stock had run up so dramatically from the April lows. Think about this trajectory. The stock bottomed at $138 in April. It was at nearly $260 before it reported last week. Under those circumstances, anything less than perfection was going to be punished. And while the quarter was very good, it certainly wasn't perfect. Which is why despite the post earnings sell off, I select the stock and think you may be getting a terrific buying opportunity here. As I mentioned earlier, the headline number for last quarter were solid, but even beyond That I think the bears are missing some even more important positives for the quarter outside of just the headline numbers. For starters, Broadcom's AI revenues came in at 4.4 billion. That's an increase of 46% from the previous year and up from the already impressive 4.1 billion just last quarter. While that was merely in line with expectations, it underscores that the company seeing the most enticing part of its business inflecting. I like this. This strength is coming from both parts of their AI business. With custom AI accelerators growing double digits last quarter while AI networking grew at astounding 170% year over year. While Broadcom's guidance for 9.1 billion in semiconductors this quarter might not have been an absolute blowout. I chip sales are expected to get to be 5.1 billion this quarter. And that's up another 700 million sequentially mind boggling, 300 million more than the analysts were looking for. That's something. This would represent 60% growth for AI chips year over year. That's amazing. This. See, this is why it's so hard for me to justify the pullback of Broadcom stock. They're selling a stock that's guided for a semiconductor sales it to come in $300 billion higher than expected because they're worried about the slow growth not a part of the business. That's nuts. As for the networking side of Broadcom's AI business that was up 170%. Managers expect this momentum to continue helped by the launch of the new Tomahawk 6 switch just last week. This newest iteration is important because it gives customers the ability to use more chips to build more larger and larger and efficient AI networks. This should have been the added benefit of increasing spending from Broadcom's customers. As for those three big customers in the four prospects, while would have been nice to hear more commentary about any of them, I think anyone who's worried about this is missing the big picture. CEO Hawk, that's what we all call him. Hawk stated that these large customers are, quote still unwavering in their plans to invest despite the uncertain economic environment. End quote. While I never bought into a fear about a slowdown in AI spending, not all that long ago the market was totally gripped by this concern. Remember the deep sea fiasco? So the sentiment feels pretty meaningful. Positive commentary didn't stop there. Magic remained optimistic that the strong growth rate of AI semiconductors in 2025 will be sustained in 2026. As Hawk put it, quote they may actually see an acceleration of XPU demand into the back half of 2026 to meet urgent demand for inference on top of the demand we have indicating from training end quote on top of that Hock Tan told us before quote we eventually expect at least three customers to each deploy 1 million AI accelerated clusters in 2027. Quote that's another sign the company sees no slowdown in spending anytime soon. Round things out. There was also some positive commentary on VMware, the virtualization software company that Broadcom bought last year to bolster the cloud infrastructure business high margins. Their management called out momentum in VMware Cloud foundation, where 87% of the top 10,000 customers have already adopted. And if that wasn't enough for you, Brooklyn paid out 2.8 billion in dividends last quarter and on top of that they spent 2.5 I'm sorry, they spent 4.2 billion to repurchase 25.3 million of their own shares. Turn of $7 billion in capital to shareholders. Always good to see the company buying its stock right alongside here's the bottom line. Contrary to the market's reaction, there was plenty to like about Broadcom's quarter and the stock only sold off because some investors were expecting an insane blowout. Honestly, I'm more positive in Broadcom than I was before the report and the fact that you can buy the stock at a discount here. I think it's a steal. Mad Money's back after the break.

[Mad Money Team]

Coming up, looking to round out your opinion of Circle's recent ipo. Kramer's circling back to the name after its first few days of trading and revealing what it means for the state of cryptocurrency.

[Jim Cramer]

Next.

[Mad Money Team]

And now a next level moment from ATT Business. Say you've sent out a gigantic shipment of pillows and they need to be there in time for International Sleep Day. You've got at and T5G so you're fully confident, but the vendor isn't responding and International Sleep Day is tomorrow. Luckily, AT&T5G lets you deal with any issues with ease so the pillows will get delivered and everyone can sleep soundly. Especially you. AT&T5G requires a compatible plan and device coverage not available everywhere. Learn [e-mail] 5G Network 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 [e-mail] credit card based on the February 2024 Nelson Report.

[Jim Cramer]

After freezing earlier this year, the IPO market is back and arguably bigger than ever. This week is one of the flashiest deals of the year, when Circle Internet Group came public. Now, this is a crypto platform that's the issuer of the second largest stablecoin out there. And Wall street lapped it up. We will explain Stable Coin split second. Now, see, there was so much demand for this deal that both the size of the deal and the price of the offering were raised twice. Originally, Circle was looking to sell 24 million shares at a price range of 24 to $26. But by the time the offering was finalized, it had been upsized to 34 million shares and priced at $31, raising $1.05 billion in gross proceeds. When Circle was set to begin trading last Thursday, there were whispers that the deal was something like 20 times oversubscribed. I mean, honestly, you always hear that for and you can never really take it too seriously. It just turns out to not be the case. Well, man, it might have been true this time because Crcial opened for trading at $69 on Thursday. That is up well over 100% from the deal price. And that was just the beginning. Circle in the first day, $83, up 168% from where it came public, then tacked on another $24 on Friday for getting another $7 and change today, closing at 115. Did these bankers misprice it? So what the heck is going on here? Why are investors so freaking excited about Circle? And by the way, what's a stablecoin? All valid questions. Let me explain. First, let's talk stablecoins. If you think about the world of cryptocurrencies is one big casino, then stablecoins are basically the chips for the crypto casino. When you go into the casino in Las Vegas, you give them your change, right? You give them dollars in exchange. What do you get? You get chips with the dollar based value assigned to them. Crucially, while you're at the blackjack table, you wouldn't want the value of a dollar chip to fall to 50 cents, right? Or even just to 95 cents, for that matter. They're valuable because they can be exchanged back dollar for dollar. Same deal with stablecoins. You give your dollar to the back of some stablecoin, in this case, Circle, and in exchange, you get a stablecoin. Circle. Stablecoin is called usdc. It's worth a dollar and crucially, will stay worth a dollar. That Stablecoin then can be used to buy all sorts of other cryptocurrencies. It can buy Bitcoin, you can buy Ethereum, dogecoin, polka dot, fart coin, you name it. Take a big take a Bitcoin as the poker table. Ethereum is the blackjack table. Why don't we make fart coin the roulette wheel? All right, Once you swapped your stablecoin for currency, you're playing that game. Everyone talks about cryptocurrencies, but you never want to use most of them for actual transactions because they're so volatile. Stablecoin coins, though, are basically digital dollars. Now, the biggest stablecoin issuer globally is something called Tether. In fact, with the current aggregate market cap north of roughly $155 billion, Tether is the third largest overall cryptocurrency behind only Bitcoin and Ethereum. But I've mentioned before, Tether is a little questionable. It's controlled by some mysterious figures. And more importantly, it's not totally clear what Tether is doing with its reserves. Now, in the spirit of fairness, there's never been a big blow up with Heather, but they're not exactly a model transparency. And if Tether doesn't like that classification of their business, their reclusive chairman, Giancarlo Divasini is welcome to come in money any time. And tell me why I'm wrong. I bring this up because over the past seven years, Circles emerges a more sanitized, less sketchy version of the stablecoin concept. USDC was launched in 2018. From the get go, it's been focused on offering better transparency about how its reserves are invested. In fact, when Circle mentions Tether in its prospectus, they refer to it as an El Salvador headquartered affiliate of China based crypto exchange Bitfinex. Unlike Tether, which invests in some riskier assets like secure loans, precious metals and even Bitcoin itself, USDC is backed by genuine reserves of fiat currency and Circles found a lot of success with that pitch. The market cap for USCC is going to around $61 billion, which makes the second largest stablecoin and also the seventh largest cryptocurrency overall. The primary way the Circle makes its money is by investing their reserves. When you give them a dollar and receive one USDC in return, Circle then invest that dollar that you've worked with them and they get to keep the profits from those investments, which are very safe. Vanilla things simple bank deposits, barrier interest along with short dated U.S. treasuries, overnight treasury repurchase agreements. Now Circle Internet Group does some other things beyond the core USDC stablecoin business. They have a euro denominated stablecoin offering that's called the eurc, largest in Europe. They have all sorts of auxiliary products for the USDC ecosystem like type of crypto wallet, institutional payment solutions and tools to help develop create smart contracts. But at the end of the day, the stablecoin business is responsible for the vast majority of Circles business. Last year was 99% of the revenue. Holy cow. Hey, speaking of financial circles numbers pretty impressive. In the first quarter of the year they posted 59% revenue growth, 75% net income growth. So at the end of the day, where do I come down on Circle? Look, this is actually a pretty darn good business. USDC is popular. The financials look pretty good for an IPO name. But the stock, okay, look very hard to recommend after watching the company's valuation jump from 5.5 billion at end the the beginning of the IPO process to over 25 billion in just a matter of weeks. I mean if we divide circles 2024 net income by the number of shares outstanding after this offering, then last year it earned about $0.70 per share at its current price. That means Circle selling for roughly 165 times last year's earnings. Comparison One of these Coinbase as a Compare, that's roughly 27 times last year's earnings. Now if we use the growth rate from the first and quarter of the year and projected forward, then Circle is trading at 94 times that back of the envelope earnings estimate. Coinbase trades at roughly 50 times. Okay, long story short, I like Circle. I'm having trouble getting to this price. I'm not willing to pay through the nose for it. It doesn't help that more than half of the shares sold in Circles IPO came from early investors and companies and company insiders, including the CEO rather than the company itself. In part that's because the company didn't really need to raise money, which is good. But if the insiders are ring the register at 31, do you really want to be a buyer at 115? Or maybe the insiders were dead wrong, I don't know. Plus, Circles joined at the hip with the crypto ecosystem and crypto inherently inherently volatile. I think you'll get a better opportunity simply by being patient. Honestly, the IPO market starting to get a little crazy here. Remember Core Weave, the data center Play came public in March right before the IPO market went on hiatus for a few weeks. I loved Core Weave when the deal was priced poorly at $40 and stock plunged to the 30s. But just two months later it's $162. And that one's. That feels a little extreme to me. This is the type of action that gets people hurt. So I need you to be a little careful. Here's the bottom line. Circle Internet groups a solid company. But the stock right now has gotten too hot for me. I can't recommend it up here. Why don't you let it cool off before you even think about pulling the trigger? Wow. What money's being made though. Let's go to David in Tennessee. David, Hey.

[Michael]

I just want to get you your.

[Jim Cramer]

Quick thoughts on Marvel Technologies.

[Michael]

Mr. Vl.

[Jim Cramer]

Okay. It's starting to react correctly. When they reported that great quarter, people didn't think it was that good. That's nonsense. Matt Murphy did a terrific job. I like the fact that the stock bounces 60 and then it started heading back at one point. Traded 71 today. I think you're in great shape with Marvel Technology. I really like it. Okay guys, this circle. I. I know you're gonna. It's so hot. It's just so attractive. It has a lot going for it now. But the stock is simply too hot for me to recommend at these levels. Let it come down before you consider buying. It's okay. There's much more. Mad money. Including my Swiss with Data analytics firm 100X. You know we love the AI chat bots. Homemade money. But which is trending most favorably with consumers. I'm getting the numbers from the CEO and which is not doing that well. I got that too. Then. Rotations come in all shapes and sizes. I'm sharing how to spot one and what you can do if you have a stock caught in the middle of that kind of action. And of course oily falls rapid fire. Tonight's just a little lighting around. So stay with Kramer. You know us, we're always on the lookout for new sources of market intelligence. Which is why I keep highlighting the month through reports put out by a company called Hundred X. It's a privately held alternative data firm with real time feedback from actual customers. More than 4,000 brands. Now many of these firms look at historical data to make predictions about the future. Hundred X directly asked people about what they plan to buy. This helps bridge a crucial gap that currently exists between forward looking soft data which is predictive and less reliable and backward looking hard data which is More dependable, but also out of date by the time you get it. So last week, Hundred X published this report with key insights from their May 2025 surveys, quoting some what I think are pretty counterintuitive data on aggregate consumer spending plans and some really interesting data about the feelings on the top generative AI platforms everybody talks about. Don't take it from me. We got, we got work to do. Let's check out Rob Pace. He's the founder and CEO of 100X to find out what's going on. Mr. Pace, welcome back to bed. Money.

[Rob Pace]

Thank you.

[Jim Cramer]

All right, so Rob, there are some things here that are frankly just mind boggling. You got to help me. Everyone knows that every single company I talk to says, look, the consumer's worried. Consumers, bad consumers, not spending. I'm not getting that from this.

[Rob Pace]

No, that's exactly right. Our May data, actually, the consumer told us they were going to spend 1% higher than they did in April. And as a reminder, they're picking the brands out of 4,000, as you said. And they're saying over the next 12 months, am I planning to buy more of it or less of it? I was as surprised as you are. In fact, we're back, Jim, to a year ago levels, which as you'll recall, was sort of the 2 to 3% economic growth.

[Jim Cramer]

Well, given the fact that I know how thorough the way you poll people, so to speak, it makes me think that maybe the other guys just aren't being rigorous.

[Rob Pace]

Well, I think that in a way the consumer has kind of tuned it out. You know, we see.

[Jim Cramer]

Tuned it out.

[Rob Pace]

They're not buying or selling the news. They're going on with their life and they'll deal with the events as they.

[Jim Cramer]

As they'll deal with the events in Los Angeles the way it is the events in the uk. I think that's a great analysis and I'm going to stick with it and use it. Now it gets even more interesting when we start talking about these, the general VE situation, because I've got to tell you, you blew me away with this stuff. But I think people, if you ask people, they'd say, listen, there's, there's chat that's got, I don't know, 80% share and the rest of it is just scrum and nobody knows how they're doing. Not true.

[Rob Pace]

Yeah, I mean, chat, we get the most feedback on chat and we get to have about 20,000 users.

[Jim Cramer]

Really?

[Rob Pace]

Yeah. And in terms of use of AI and products, we have over a million. So a pretty good Sample but chat, they, they get very positive feedback. But what's going on is the AI game is changing. At first it was the wow factor, ease of use, speed, etc. Now it's reliability, quality, sourcing. And that's where perplexity has come out of nowhere. Our data in terms of future use of perplexity is up 17% since the start of your meaning just start of the year. Since the start of the year.

[Jim Cramer]

It's, I mean, I have to tell you, I use these heavily and I switched entirely to Perplexity. Why? Because I think it's right more than it's wrong. That may be. I'm not alone here, obviously. I mean these numbers are staggered.

[Rob Pace]

They are. In fact over 50% of the people talk about reliability as one of their key considerations. But only 19% of consumers have a positive view currently. And perplexity is double digits improvement over that. So they're, they're kind of hitting the kind of the, they're scratching the key itch that consumers have in this space.

[Jim Cramer]

Well, I mean, were you yourself surprised? I mean it wasn't even, it was even in the running last year.

[Rob Pace]

That was, it was down a lot. I mean it's a, it's an analogy was like a horse race. You'd be like perplexities coming on the outside. It's just pretty staggering as you.

[Jim Cramer]

Okay, now not everything is sanguine here. For the others too, I noticed that you can say Since January of 2020 25, CoPilot has not done that.

[Rob Pace]

Well, yeah, in fact they've declined in our, in our data and it's precisely over that issue. Their reliability scores, their sourcing scores, etc. Are below average in our data. And now they do have something very positive which is the Microsoft umbrella in terms of, of trust.

[Jim Cramer]

Correct.

[Rob Pace]

And security. And that's a, that's a huge edge because that's the other kind of Achilles heel in this area. So I wouldn't count them out, but I would say actually if anything, they are receding in our data versus advancing.

[Jim Cramer]

That's important. Now you do have Apple in here. It's interesting before we get into that, there was a panel that was held by my friend Scott Watkin earlier today was out west and some of the people are saying Apple should just buy Perplexity and solve its problem. This doesn't look like it has a problem to solve, but maybe if they did, they should buy Perplexity.

[Rob Pace]

Well, it's interesting. You know, I was a former Goldman partner and M. And a banker, so I've had that thought, but that's no longer my swim lane. But it's. But it's not a crazy idea, certainly in terms of filling a key need.

[Jim Cramer]

Excellent. Now, there's something involving. I'm not a member of Sam's Club. I'm going to say that point blank. I am a. I am a very, very big user of Costco. But there is a way that they are doing things at Sam's Club that people are like in the way that they shop. I think you should describe it to people because it seems like it could be the way of the future.

[Rob Pace]

Yeah, I think it's a big deal in retail and it actually ties into what we were just talking about, AI. So they have a thing called scan and go. We have 40 pages of comments, unsolicited comments from Sam's Club customers.

[Jim Cramer]

Now, when you say unsolicited, what does that mean?

[Rob Pace]

They pick that. We're not saying, what do you think of Sam's Club? And we're not even tell. We're saying, give us a comment. They're calling it out and they use words like genius, love. So let me explain it. In effect, you can kind of skip the checkout and what you're doing is you're building your cart as you put.

[Jim Cramer]

It in, with your phone.

[Rob Pace]

With your phone. So it's more important. It's not just the convenience. It is. You have to have the app, which is huge for the retailer. It probably can address shrink because as you leave. And it's a great application of AI because for all of this to work. So it's a big, big.

[Jim Cramer]

Why aren't they using it at Wal Mart?

[Rob Pace]

Well, it's a great question. As you know, obviously, they're a subsidiary of Wal Mart. They've been working at Sam's, I think, for six years.

[Jim Cramer]

So it's probably not overnight because I know Costco is a club. We don't want to hurt other club members.

[Rob Pace]

Now, see, I. Walmart has made great inroads on convenience, and this is a convenience place. But I think if Wal Mart adopts this and has price and convenience, watch out.

[Jim Cramer]

Wow. And then one lesson I just want to get. I know that just from everything that you look at, going back to what you said at the beginning, are. Are people just able to really turn off a crazy time? Because you know what? When we're with family members, when we're together, Rob, we don't feel that way. We feel that things are out. I talked to ways both left and right because I, I talked Everybody, things are just crazy. That's what people say, but they're just crazy. But they're just doing their thing.

[Rob Pace]

Well, we are kind of pioneering a new class of data. We call it future hard data. So soft data is sentiment. How do I feel?

[Jim Cramer]

Right.

[Rob Pace]

Confidence. Hard data is what actually came in. The problem is in the rearview mirror when people are answering are are giving us feedback. They're not thinking about, they're just thinking about am I guessing to eat more at Chili's, am I going to, am I going to buy more of this? So we take out the emotion and just have a practical view of hey, what am I planning to do? And so far it shows that. What's encouraging is you should let the Fed.

[Jim Cramer]

Harrison.

[Rob Pace]

I know.

[Jim Cramer]

I mean pride, inflation coming back. Yeah.

[Rob Pace]

I'm just telling you, you know, in.

[Jim Cramer]

Data points or Rob, I don't know whether to think, wow, what a great country. You're. What the heck are people thinking? But you are the most thought provoking guy who comes on. Thank you for this Rob pace fabric of 100x with some breathtaking stuff, including that maybe Apple should buy Perplexity. That's my view. He doesn't work at Goldman Sachs anymore. Maybe he's back Never the break coming up.

[Mad Money Team]

Lightning doesn't just strike twice in Creamerica.

[Rob Pace]

Booyah.

[Michael]

Jimmy chill.

[Jim Cramer]

Booyah. Booyah.

[Michael]

Thanks for taking my.

[Mad Money Team]

It strikes every day. Kramer is back in a flash with your questions.

[Jim Cramer]

Next.

[Michael]

Time.

[Jim Cramer]

We play the sale and then the lightning round is over. Are you ready? Skip lightroom kids. And let's start with Tracy and Nevada. Tracy.

[Michael]

Jim, I am calling to thank God and thank God for you and thank you and thank Nvidia. I lost my eyesight as a young child and my husband passed away from cancer in 2009. I had to short sell our house in 2011. I began watching you in 2007 and reading your books and your optimism, your encouragement really got me through some very dark times. Thanks to you, I was able to buy a new home in 2013. Thanks to you and Nvidia, I was able to pay off that home last week.

[Jim Cramer]

Oh, Tracy, that's so good. Let's throw in Jensen Huang too. Tracy, he helped us do but geez, what a great. That's fabulous that all these good things happen. I did something right. I did something right. Thank you.

[Michael]

Without you, honestly, things would be so very different and they're so very wonderful. But you, what you do is just. It's truly life saving and life changing and thank you, thank you, thank you.

[Jim Cramer]

I'M just going to keep doing it. Tracy, thank you so much. You're very kind person.

[Michael]

Seriously, I do, you know, I pray for you and your, your health and your good.

[Jim Cramer]

I got a great wife. Got great. I'm good stuff. I'm good stuff. Let's, let's go to work together and I'm glad that I've done a good job for you.

[Michael]

So my Wingstop was doing awesome, was doing great.

[Jim Cramer]

That's a tough one for me. I'll tell you why it's a tough one because they didn't provide the guidance that I wanted. You know how much I want transparency. They didn't give me the transparency I you to stop going back. But I'm not, you know all those nice things you said, I got to tell the truth. I'm not the call Wingstop because I don't see what they have that I'd like to see. I didn't, I don't see the visibility. But thank you for those kind words. Let's go to Frank in California. Frank. Hey, Mr. Kramer, how are you? I am real good. I'm getting some good feedback. How about you? I'm great. Hey, just want to ask, you know, with all the madness going on with.

[Michael]

The tariffs, I was kind of trying to spread my wings in a different direction.

[Jim Cramer]

I wanted to ask you about Momentum Holdings. Yeah, that's like a catch all company. You know, it's got some things that are like engineering and some that are, that are, that are cyber terrorism. Let me come back on that one. There's just too many things in that company. We understand how that holds together. That's what I have to do. Let's go to Andrew in New York. Andrew. Hey, Jim. Now I know you're going to say.

[Michael]

That you personally won't invest, but this company has been successfully transitioning away from its combustible portfolio to its best in class reduced risk products within and iqos. Despite a recent pullback, the stock's been on a tear doubling over the past year. I think it has room to go higher. We're talking Philip Morris International.

[Jim Cramer]

It's a very, very good company, a very good stock. They're trying very hard to get away from, from cancer sticks, so to speak. We know they're doing that. I've met with the company. I was at a presentation that they made. I think that I'm not going to recommend the stock for precisely what you said, but I will tell you it is a very, very good company and it's a stock that has done very well. And probably will continue. I just can't get behind it because of what they do. Let's go to Kathleen in Pennsylvania, please. Kathleen.

[Michael]

Hi, Jim. How are you?

[Jim Cramer]

We'd love to show. Oh, thank you, Kathleen. Thank you.

[Michael]

So my husband is retired after 32 years with UPS. We payroll deducted stock obviously for most of that time.

[Jim Cramer]

Right.

[Michael]

Based on UPS's current financial performance, recent strategic initiatives like the Amazon reduction and the overall industry outlook, do you believe UPS is positioned?

[Jim Cramer]

I think Charlton is trying to get it so that it works. It's got a 6.6% yield. I've been reluctant to recommend it because I thought the business was not good business for FedEx. Isn't that good? It's down 20% for the year. I have to tell you, I don't know if it goes up from here. I don't. But I know that it seems like that they are getting their act together, but it's a very tough stock to own. If you didn't, your husband had worked there for 32 years and had a lot of stock. I would say don't own the stock. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

[Mad Money Team]

The Lightning Round is sponsored by Charles Schwab. Coming up from great to good. Kramer on the rotation that's shaking up stocks and why it could turn ugly if the market's not careful.

[Jim Cramer]

Next sector. Rotations come in all shapes and sizes. You can see rotation out of industrials into staples and utilities. You might see a rotation out of expensive consumer discretionary stocks into cheaper consumer discretionary plays and necessities. Or you can see one out of excellent stocks into not quite as good stocks because the excellent ones have just gotten too expensive versus their cheaper brethren. Call it growth to value even as there isn't that much value to be found. As an example, last week one of the premier tech hardware companies that I'd like very much, my trust, Broadcom, which I talked about earlier, reported like I said, was a pretty good quarter. Nearly every line item exceeded. It showed a lot of momentum that you want from a premium company, but it wasn't enough. The stock did get clobber from the get go even as everyone in the know realized it was just a classic great quarter. But because it's an expensive stock, people weren't willing to chase it. That failure rally triggered a kind of rotation that I haven't seen lately. One that saw money flowing out of the best tech stocks into the good ones like Dell, amd, Texas Instruments, Marvell Tech. Got a call on that one all These companies are doing well, but not as well as Broadcom. So traders say if I can't make money Broadcom and put in a great quarter, the playbook says time to move into the lower quality cheaper stocks that are less likely to disappoint or should never have been down to be begin with. I understand the sentiment, but the problem is that these stocks are rallied pretty hard to take Dell it reported an excellent quarter on May 29th. A week and a half ago, stock initially failed to rally, but that's because it had run up into the quarter. I saw some upgrades for AMD and Texas Instruments. Same deal. They've moved especially, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them. Now, this kind of rotation could be a good one. The stocks that are rallying are excellent. They may be just playing catch up. It's a heavily broadened but broadening out. Alpha winners, right? Remember when it Was just the Mag 7? It's we've come a long distance, but what comes after this could be treacherous. I've seen the end of rallies and they often take up the laggards last after it happens. If we have good news, everything's fine. However, if there's any degradation in the numbers, it could get very ugly. Right now, we're fine. I think Dell's incredibly cheap versus last quarter. The stock can go up 10 points before I would even say think about worrying about it. I've always liked amd. As you know, Micron had a good quarter last time. I think you go higher. I just think that in the vast progression of things, you might find we're more at the end of a rally than at the beginning. Unless the stocks of companies like Broadcom can recharge and start going higher. And look, this is not isolated tech in retail. We had terrific names that reported great quarters. Costco and tjx. But then they failed to go up. Wow, they went down. So what started doing better? Target, Dollar Tree and Dollar General. Three companies with stocks that represent value that been in rally mode ever since the Costco failed and TJX failed. It's all rotation from companies that are excellent to ones with stocks that got too cheap. We'll be safe if the market returns to Costco and tjx. But if the current crop keeps going higher and higher still and we keep having so much froth in the rest of the market, the nukes, the quantums, the cryptos, the flying cars, then we are indeed headed to the danger zone. Not yet, but soon. I like to always bull market somewhere palm side finding just for you right here man. Money I'm Drew Kramer. See you tomorrow.

[Bank of America]

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. Kremer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To View the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer.

[Jim Cramer]

If your small.

[Bank of America]

Business has a problem, you could say, just my luck. But you should say, like a good.

[Jim Cramer]

Neighbor, State Farm is there and we'll.

[Bank of America]

Help get you back in business.

[Jim Cramer]

Like a good neighbor, State Farm is there.