Mad Money w/ Jim Cramer 7/10/25

Summary

Mad Money w/ Jim Cramer – July 10, 2025 Episode Summary

Host: Jim Cramer
Produced by: CNBC
Release Date: July 10, 2025

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Introduction

In the July 10, 2025 episode of Mad Money, hosted by Jim Cramer, viewers are treated to an insightful deep dive into the current stock market trends, strategic stock picks, and in-depth interviews with industry leaders. Cramer's energetic and analytical approach aims to demystify Wall Street's complexities, offering listeners actionable investment advice.

Market Overview

Jim Cramer opens the show by assessing the bullish performance of the stock market. He notes the Dow's impressive gain of 192 points and highlights the S&P 500's 7% increase alongside the NASDAQ's 9% ascent. Cramer emphasizes the importance of distinguishing between stocks that decline for fundamental reasons versus those stumbling due to market misconceptions.

"On a day where we hit some more records... I think we have to try to distinguish between stocks that go down because they should be going down and stocks that go down because of a widespread misperception."
(02:15)

Stock Analyses

Costco Wholesale Corporation (COST)

Cramer discusses Costco's recent performance, sparked by a slight miss in same-store sales growth for June. Despite a 5.5% increase—just shy of the expected 6%—Costco's stock dipped by over 100 points. Cramer views this decline as a misconstrued reaction, asserting that Costco remains a high-quality buy opportunity.

"There is never a good time to buy the great ones... But on a day where we hit some more records... So on a day where we hit some more records."
(03:00)

He references the late Charlie Munger's strong endorsement of Costco, highlighting Munger's commitment to holding Costco shares regardless of price fluctuations.

"I'm never going to sell a share, no matter how high the stock went in 2023."
(04:10)

Cramer concludes that Costco's substantial drop from its high provides a rare buying opportunity for investors.

Home Depot Inc. (HD)

Shifting focus to Home Depot, Cramer challenges the prevailing negative sentiment tied to the struggling housing market. He points out Home Depot's strategic acquisitions, such as SRS Distribution and GMS, which bolster their position in the remodeling and renovation sectors.

"It's geared to remodeling and renovation. That's why the depot just spent $18.5 billion to buy SRS Distribution."
(06:10)

Cramer notes that Home Depot's current trading price represents a significant discount from its previous highs, positioning it as a valuable investment when the stock experiences a downturn.

"This is the right time to buy. Starbucks goes down a little more. You get to buy more."
(07:45)

Starbucks Corporation (SBUX)

Addressing Starbucks, Cramer rebuffs the notion that tariffs on Brazilian coffee beans warrant selling the stock. He argues that the cost of coffee beans constitutes a minor portion of Starbucks' expenses and praises the company's ability to leverage its scale to mitigate cost increases.

"Starbucks with its incredible scale is better suited than anyone else to be able to deal with and find cheaper sources of beans."
(09:05)

Cramer highlights the resilience of Starbucks under CEO Brian Sweeney, comparing the company's turnaround potential to Chipotle's successful recovery.

McDonald's Corporation (MCD)

Cramer discusses McDonald's recent upgrades from Goldman Sachs and stresses the importance of purchasing high-quality franchises like McDonald's at discounted prices.

"The great ones never come cheap, but they can be cheaper when they're, well, let's say where they can be cheaper from where they were."
(12:45)

He emphasizes that investing in McDonald's during periods of lower stock performance can minimize the risk associated with a high purchase price.

Interview with Michelle Goss, President & CEO of Levi Strauss & Co.

Cramer welcomes Michelle Goss, Levi Strauss's CEO, to discuss the company's outstanding quarterly performance and strategic initiatives.

Company Performance and Strategies

Michelle Goss shares Levi's impressive results, highlighting a 9% organic sales growth and significant margin expansion across various segments.

"We have now three-quarters of high single-digit growth. As we look ahead, we see that momentum... we've raised our guidance for the year."
(13:59)

She elaborates on Levi's pivot to a direct-to-consumer (DTC) model and becoming a comprehensive lifestyle retailer centered around denim.

"We are focused on becoming a $10 billion stronger, more profitable company and we have a lot working on that."
(15:08)

Product Development and International Growth

Goss discusses Levi's product pipeline, including successful collaborations with major brands like Nike and Sakai, and strategic partnerships aimed at enhancing brand visibility and consumer engagement.

"We've launched our collaboration with Nike today, and earlier this year with Sakai... these partnerships are contributing to the great place we are right now."
(17:48)

She also highlights the robust international performance, particularly in Europe, where Levi's has achieved impressive organic growth through strong brand resonance among younger consumers.

"The Levi's brand is on fire in Europe... 14%, 50% on organic growth."
(16:58)

Tariffs and Supply Chain Management

Addressing concerns about tariffs, Goss explains Levi's strategic positioning and minimal exposure to Chinese tariffs, alongside efforts to enhance supply chain efficiency through SKU rationalization and full-price selling.

"We're accounting for about a 20 basis point net impact... We're executing better on our DTC strategy."
(19:09)

Conclusion of Interview

Cramer congratulates Goss on Levi's stellar performance and underscores the stock's attractiveness as a rare market bargain.

"Michelle Goss is President & CEO of Levi Strauss. Thank you. Thank you so much for coming on Mad Money."
(21:17)

Insights from Rob Pace, Founder & CEO of 100X

In a segment with Rob Pace from 100X, Cramer delves into consumer insights data that influence investment strategies.

Autonomous Vehicles: Waymo vs. Uber

Rob Pace shares encouraging data about Waymo's acceptance compared to Uber in the autonomous taxi sector, highlighting improved safety perceptions.

"Only 12% of people now have concerns about getting into a Waymo. To give you context, that number is 8% for Uber."
(32:07)

He notes that Waymo's brand strength and safety advancements position it favorably against competitors.

Airline Sector: Impact of Baggage Fees

Pace discusses the negative consumer response to airlines' baggage fee implementations, specifically Delta's declining favorability.

"Their favorability on baggage went from the industry best, 70% positive. Now it's at Delta's level at 20%."
(34:14)

This shift indicates potential long-term impacts on airline loyalty and stock valuations.

Retail Brands: Costco and Wrangler

Rob Pace highlights Costco's superior quality perception and Wrangler's strong durability ratings, reinforcing their positions as valuable investments.

"Costco's quality perceptions are 30 points higher than competitors."
(36:31)

He emphasizes that companies like Costco are unrivaled in their execution across multiple categories, making them top investment picks.

Lightning Round: Viewer Calls

During the Lightning Round, Cramer engages with various callers, offering quick takes on stocks such as Nvidia, American Express, Lincoln Electric, Diageo, and Campbell's Soup. Highlights include:

• Nvidia (NVDA): Praise for timely investment at $18/share.

  "Nvidia was a good pick by me."
  (35:24)

• Okta (OKTA): Mixed sentiments with some callers optimistic despite recent downturns.

  "I think Fico is good. I'm going to stick my neck out..."
  (37:03)

• Campbell's Soup (CPB): Cramer identifies a buying opportunity post-price decline.

  "I am no longer willing to bash it at $29. I think you're fine to be able to buy some."
  (40:55)

National Security and Rare Earth Minerals

Cramer concludes the episode by discussing the strategic importance of rare earth minerals and recent governmental investments to reduce reliance on China.

"For decades, America moved the dirty mining and smelting jobs to foreign countries, especially China... Now we're paying the price for that trade-off because China supplies most of the world's rare earth minerals."
(43:10)

He highlights MP Materials' significant Defense Department stake and the broader implications for national security and supply chain independence.

"The Defense Department has assured us that the United States will be in a better position in the future by putting a price on the Mountain Pass sites."
(44:05)

Cramer underscores the necessity of re-establishing domestic production of essential minerals to safeguard technological and military advancements.

Conclusion

Jim Cramer wraps up the episode by reiterating the importance of strategic investments in high-quality companies even during market volatility. He encourages listeners to leverage insights from industry leaders and consumer data to make informed investment decisions.

"Use them. Don't make it gospel. They're insights. Insight makes you a more powerful, competent investor."
(37:50)

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Notable Quotes:

• "The great ones never come cheap, but they can be cheaper when they're, well, let's say where they can be cheaper from where they were."
  — Jim Cramer (12:45)

• "We have got to earn it every single day. And that's where we talked about. I mean, I would say that the product pipeline has never been stronger across denim and fabrics."
  — Michelle Goss (20:25)

• "Costco's quality perceptions are 30 points higher than competitors."
  — Rob Pace (36:31)

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Key Takeaways:

1. High-Quality Stocks on Dip: Cramer emphasizes buying solid companies like Costco, Home Depot, Starbucks, and McDonald's when they experience stock price declines, viewing these dips as buying opportunities.

2. Strategic Company Shifts: Levi Strauss's pivot to a DTC model and international expansion, coupled with strategic partnerships, positions the company for sustained growth.

3. Consumer Sentiment Data: Insights from 100X reveal shifting consumer perceptions impacting sectors like autonomous vehicles and airlines, guiding investment strategies.

4. National Security Investments: The U.S. government's increased investment in domestic rare earth mineral production underscores the strategic move towards supply chain independence from China.

5. Investor Education: The episode underscores the importance of informed decision-making, leveraging both expert interviews and consumer data to navigate market complexities.

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Final Thoughts:

This episode of Mad Money provides a comprehensive overview of current market dynamics, strategic stock evaluations, and the critical interplay between consumer behavior and investment performance. Through engaging discussions and expert interviews, Jim Cramer equips investors with the knowledge to make informed and strategic financial decisions.

Transcript

[Jim Cramer]

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[Michelle Goss]

Over 3,700 business specialists across the nation, we help businesses thrive so communities prosper.

[Jim Cramer]

What would you like the power to do? Learn [e-mail] LOCALBUSINESS bank of America Official bank of FIFA Club World Cup 202025 Copyright 2025 bank of America Corporation. All rights reserved. Hey, I'm Kramer. Welcome to ma. Welcome to Kramer. Make friends. I'm just trying to make you less of money. My job is not just entertain, but to teach you. And we're doing that tonight. So call me 174 3CBC tweet me Jim Cramer. There is never a good time to buy the great ones. When they're going up, you're chasing. When they're going down, you're buying into a value trap or you're trying to catch a falling knife. That's how so much of Wall street sees this job. If you buy at any time, it's probably going to be the wrong time. But on a day where we hit some more records. Dow gaining 192 points. SB advancing point to 7% in the NASDAQ, edging up ever so slightly.09%. I think we have to try to distinguish between stocks that go down because they should be going down and stocks that go down because of a widespread misperception. Let's operate on the latter. This morning, for example, there's a lot of talk about Costco. Same store sales. Not great. Failing wisdom. Costco, which reported June monthly sales last night after the close, delivered 5.5% US comparable sales growth ex gasoline when the street was looking for six. Disappointing, right? How disappointing? How about enough to send the stock down almost well points today? Is that wrong or is that right? I think it's wrong. I like Costco the store very much and I'm always looking For a chance to buy Costco, the stock on weakness for the Chabot Trust. Tomorrow we have an annual meeting for the investing club which you can follow along with if you're a member. And boy, is it ever tempting if we didn't own so much Costco already to do some buy, buy, buy. Why? Well, Costco has been a longtime position of the trust because I love to shop there and I love the business model where the company offers a limited number of goods at ultra low prices and makes its money on your dues. The most articulate defender of Costco was the late Charlie Munger, Warren Buffett's right hand man on the board of Berkshire Hathaway, who passed away nearly two years ago. Oh, Munger was an admitted addict of Costco and a big shareholder. He repeatedly told followers, quote, I'm never going to sell a share, end quote, no matter how high the stock went in 2023. He said, quote, the trouble with Costco is 40 times P E or price service ratio, but except for that, it's pretty damn good, good company, end quote. Now the stock trades north of 50 times earnings right now, higher than when Charlie talked about it. But more important, it's now down more than 100 points from its high. Charlie always said he wanted to buy, quote, wonderful companies at fair prices, end quote, rather than fair companies at wonderful prices. To me, Costco's 100 point discount from its high is about as good as you're going to get. J.P. morgan, which has a buy on the stock, says that Costco has been a, quote, source of funds for big institutions of late, but they think that's about the come to an end as the year over year comparisons are going to get easier. Now go back to what I said about how much of Wall street acts like there's never a good time to buy these high quality stocks. I think the truth is the opposite. There's always a good time to buy shares in a great company and it's when the conventional wisdom says that a 5.5% same store sales number, much better than almost any other company I follow is somehow a real shortfall. I think Costco is an amazing company and this is the kind of buying opportunity that just doesn't come along very often. Oh, let me give you another one, Home Depot. Now here's a company seen as being synonymous with the housing market. And the housing market stinks. Not enough homes being sold. Got to be bad, right? Well, wait a second. This stock's now been in the doghouse for ages. It's also why we've been buying for the Chapel Trust like Costco. People don't seem to want to buy Home Depot unless it's within spitting distance of its highs. They want to buy Home Depot when it's hot. I want to buy Home Depot when it's not. First, let's deal with this big misperception about Home Depot. It's not just about home sales. It's geared to remodeling and renovation. That's why the despot just spent $18.5 billion to buy a company called SRS Distribution last year that helps contractors with building materials, mainly roofing and pool supplies and landscaping. They just spent 5.5 billion on GMS, a drywall, steel framing and ceiling products distributor. In other words, in the last year, Home Dep Depot's only improved disposition in remodel and renovation while it waits for the housing market to come back. Now, why does this matter? Because you don't get many chances to buy the stock of Home Depot at a considerable discount to its high. People would rather buy Home Depot at $439, as high from last year than 373 where it's trading now. I look at it like this. How often can you buy a quality franchise like Home Depot when it's not running? When it's not near its high? Not often. This morning, Starbucks came up as part of the conversation squawk on the street as a source of coffee beans from Brazil. And what's going to happen now that President Trump just hit Brazil with a 50% tariff? Just one more reason to sell. Sell Starbucks, right? Wrong. The actual price of coffee beans represents less than 10% of the cost of a cup of coffee. Sure, Brazil is important, but Starbucks with its incredible scale is better suited than anyone else to be able to deal with and find cheaper source of beans. More important, Starbucks is another stock that people want to buy when it's hot and stay away from when it's cold, even if it's being run by a proven commodity who knows how to execute a turnaround. I remember the turn that CEO Brian Nickel engineered at Chipotle before he went to Starbucks after some nasty foodborne illnesses sent the stock in a tailspin. Nickel came in at the beginning of 2018 when Chipotle stock was at around $6, right? Keep that in mind. He left for Starbucks a little less than a year ago when Chipotle was at $56. Are we really supposed to believe that the price of Brazilian coffee beans is going to reverse that turnaround that he's organizing I think that's see stocks down more than 20 points from its high. Even if it's quickly rebounded from today's low. This is the right time to buy. Starbucks goes down a little more. You get to buy more. Finally, consider McDonald's. Now here's another company that many managers seem to think has lost its way with the stock going from a perennially positive performer to a real dog. Of late this morning, Goldman Sachs upgraded the stock from hold to buy. What caught my eye here, I've been waiting for someone who didn't care for the stock to go positive. In other words, that person's been right. And that's what we got when analyst Christine Chao went positive. Why? Well, for the same reason why you always have to buy the stock of McDonald's when it goes out of favor. Mickey D's has, and I quote the excellent report the scale Marketing Digital Advantage successfully navigate through this environment. Does this mean we've caught the bottom in McDonald's or Costco or Home Depot or Starbucks? Of course not, nobody's that good. But what's most important is that you aren't buying these high quality franchises anywhere near the top. When you buy at these levels you're minimizing the likelihood of starting with a bad cost basis. Which is what usually happens to investors who chase things on the way up and then get discouraged and end up sell, sell, sell on weakness. Yeah, the people who buy high and sell low must not be my viewers. Here's the bottom line. The great ones never come cheap, but they can be cheaper when they're, well, let's say where they can be cheaper from where they were. See, sometimes all you can hope for is get a chance to buy a stock of a terrific company at a discount when the market is at an all time high. Let's go to Nikki in Louisiana. Nikki. Hi Jim. I'm a new retail trader because being a teacher just doesn't pay the bills. But I watch you every day and try to learn.

[Michelle Goss]

And what I've lear is that AI and clean energy are hot topics and.

[Jim Cramer]

I do mean hot. So I looked for a company who specializes in cooling things. But that stock took a cold dive.

[Michelle Goss]

In response to Amazon's liquid cooling innovation announcement today and poured cold water all.

[Jim Cramer]

Over my plan to buy Vertiv Holdings. Well, we spent a lot of time today, Jeff Marks and I and Ben Stodo talking about how really significant that Amazon Node is. Now I happen to think virtual is a fabulous company and I believe that you're getting a chance to Buy it again. I think that Amazon is known to say that they have, they've done in videos, chips. They look Amazon makes a lot of very, very good products. They do it themselves. But I think that right now, virtual hard to spice. Jensen Huang, by the way, with the White House today. And you know what? I bet you the president didn't trash that guy. No, I bet you congratulated him. Let's go to Peter in Colorado. Peter. Hey, Jimmy, chill. It's great to talk with you. The showman is in the house. How can I help you? Yeah, love this company. I love the CEO. During the pandemic, the stock went way up and then it came crashing back down to earth during the interest rate hike a few years back. Jimmy, what are your thoughts on ticker symbol TW L O Twilio? All right, this is really hard because they've made a comeback. They've made a comeback and a lot of people talking positive about the product. But right now I am negative about this space they are in about cloud computing. It's not really a SaaS business. And Ben Righteous, sorry, I know that you don't like the SaaS business, the software business, but I will say this. I think it's had a really big run and that that's just been a terrific opportunity to be able to maybe take some off the table. You know, I wish I could be more positive, but what a run it's already had. Now you got to understand that the stocks of great companies never come cheap, but when you get a chance to buy them at a disc, you gotta pull the trigger on man money. Tonight, Levi's reported after the bell and I'm running through the quarter where the cubby's top brass and we've been keeping up with our iPodOS. And tonight we're talking Hinge health to see if this AI healthcare play could be good for your health and of course, your wealth. And data company 100x has its finger on the pulse of the consumer. Tonight. They have some astounding observations that I want to share with you, including one on 52 week by Southwest Airlines and its myriad changes. You don't want to miss it, 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 madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com this episode is brought to you by Schwab Market Update an original podcast from Charles Schwab. Join host Keith Landsford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] MarketUpdatePodcast or find Schwab Market Update wherever you get your podcasts, which are America's Top States for Business. Get all the data and complete state by state analysis. See how your state measures up. America's top states for business now on.

[Rob Pace]

Topstates.Cnbc.Com.

[Jim Cramer]

Heaven knows there's been a lot of handwriting about the of state consumer levy, but maybe we should be a tad less worried at the closet Levi Strauss & Co. The Denim Kingpin report a phenomenal quarter with 9% organic sales growth trouncing the estimates. The European business is on fire direct to consumer strong margins expanded substantially put all together and the company delivered 9 cent earnings beat off a 13 cent basis. Not bad. Even better, management raised their full year forecast even with the impact of the tariffs. No wonder the stock went from flying right when the earnings release. Pretty impressive given that this thing was already up 62% from its April lows. So how they pull it off? Earlier tonight we had the chance to speak to Michelle Goss. She's the bankable President CEO of Levi Strauss and Company. Take a look. Ms. Goss, welcome back to Mayor Money.

[Michelle Goss]

Thanks Jim. It's great to be here.

[Jim Cramer]

All right, so Michelle, I've got to tell you in what we know is an uncertain environment, you have delivered a really strong set of numbers with the quarter that in May and I'm talking about 9% organic growth, impressive margin expansion, huge bottom line beat. So my question is how are you able to do it?

[Michelle Goss]

Yeah, well Jim, super proud of the entire organization, the team. I mean this is driven right directly from our key strategies which is our pivot to become DTC first and a head to toe lifestyle retailer always rooted in denim. And you know we've got now 3/4 of high single digit growth. As we look ahead we see that momentum. Contin funding gave us the confidence to raise our guidance as you saw for the year. And you know we're we're looking towards becoming a $10 billion stronger more profitable company and we have a lot working US is positive international up 10% men's positive, women's outperforming double digit again our bottoms business the core up 8% tops which is a key part of our Lifestyle expansion up 16% I could go on, but we are really seeing our strategies take hold now.

[Jim Cramer]

You've also gotten more focus. I noticed the sh. Keeping units have come down. The Levi's brand is leading the way which is terrific for margins. These all seem to be decisions that you made, anticipating perhaps that things could get difficult out there and it's really making. So I think that you're the leader in the group.

[Michelle Goss]

Yeah, I mean we are a big believer in focus and that's a big reason why today we are a stronger, you know, faster, healthier company and focus is a big part of it. So this past quarter we did announce the definitive agreement to sell to Authentic Brands Group. We're focusing and rationalizing Skus those, those have come down, they're down in the mid teens. One of the things that we're really driving Jim, is being part of a best in class global retailer is getting more commonality in our assortment. A couple of years ago that was in the single digits. Today that's more like 30%. And as you can imagine, that creates tremendous efficiency in the supply chain and people all over the world, they want Levi's and that's what we're going to.

[Jim Cramer]

Give them over the world. I'm looking at these European numbers. Incredible. 14%, 50% on organic growth. I haven't seen great numbers out of Europe for anyone, any, anywhere near what you're delivering.

[Michelle Goss]

Yeah, the Levi's brand, I'll say is on fire in Europe. I was just there in some of our key markets in Paris and Barcelona and Milan. And those consumers, especially the young shoppers, they love Levi's. We're seeing it in our stores. So positive comp growth, you know, for the, for the. We saw. It's our, our 13th consecutive quarter of positive comp growth. We're seeing that in Europe and then wholesale, really strong. And we've got incredible partnerships with folks like Zalando who have gotten behind our women's focus as well as our lifestyle. So you know, like I was saying earlier, it's happening in Europe as well. All categories.

[Jim Cramer]

You said, look, you're going where they want to be direct to consumer. How are they hearing about you? How are the, the younger people in Europe? What are they seeing? What, what kind of social media, using, what kind of advertising? Because it's clearly res. Than a lot of other stuff that I'm seeing.

[Michelle Goss]

Yeah, well, you know, for a brand like ours that invented the denim category, we've been around 170 years, incredible foundation. But we have to continue to drive relevancy. You Know, we describe it as being at the center of culture, leading at the center of culture. So you take the younger consumer. Social media is a huge part of it. Right? It's starting with social. As we think about our campaigns, it's. It's leading in things like music and sports, music festivals. I mean, here in the US we dress Shaboozy at Stagecoach Barcelona, one of the biggest music festivals of the world. We had multiple stages. It's all of those things. I mean, younger shoppers in particular today, they are learning and discovering brands in all kinds of places. And we've got to show up where they're engaging. And I think the team is doing a fantastic job driving that.

[Jim Cramer]

Well, one of the things you're doing that I like and I think is. Is working now because they've got much better management. Your Nike collaboration, which I think just went live and I think is pretty cool. I want you to tell us about how that came together.

[Michelle Goss]

Well, it's another example of driving brand heat. I'm glad you asked about it. We launched today and early this morning, I was already getting floods of pictures from, say, New York, where we had people lined around corners waiting to our stores to open to get this new great product. So whether it's, you know, a brand like Nike, earlier this year, we had a collaboration, collaboration with Sakai, which is a very famous, elevated Japanese designer, and more to come. I mean, but this is momentum and you've got to really be addressing all of these things from these fresh collaborations, iconic partnerships like Beyonce. We're looking forward to have, you know, the next chapter launch here, which has been, again, a big part of our women's push. It all has to be working. And part of DTC is we get to engage with our consumers directly and we're executing better there, too. We are rewiring the company to operate like a true retailer.

[Jim Cramer]

All right, so a lot of times I interview people and they start out by talking about how tariffs hurt them. Of course, now every. Almost every company has to deal with tariffs. But what's been your philosophy? What do you see?

[Michelle Goss]

Well, I would first say that, Jim, we are competitively positioned better than most as it relates to tariffs. Number one, 60% of our business is international now. So you take that second. You know, in our. In our guidance, we've assumed. We've assumed. We've assumed tariffs. We've assumed 30% from China, 10% from the rest of the world, but our exposure to China is really minimal. And then I would say the team is doing a great job across multiple levers to mitigate. You know, you saw it in our release. We're accounting for about a 20 basis point net impact. It's not much. A couple pennies on eps. And that's because we've got these longstanding relationships with vendors. We have. Our business is growing, so we're giving them more volume. Yes, we are looking at modest surgical pricing, but more than any thing, it's about more full price selling. And as we bring more innovative product, our consumers are responding. We don't have to promote as much. And then we also are looking at our own costs and we're taking part of it, too. We're doing everything we can to protect the consumer and protect our price point.

[Jim Cramer]

Michelle, I think I can safely say that the Levi's brand has never been stronger in all the years that I've seen it. It's really coming together. Is it it?

[Michelle Goss]

You know, it is. And as I said earlier, we start from an incredible foundation, but you can never take it for granted. We have got to earn it every single day. And that's where we talked about. I mean, I would say that the product pipeline has never been stronger across denim and fabrics. This, this past summer, we introduced our linen plus denim in jeans. Even in our 501. It's done incredibly well from all the tops. I mean, tops is becoming a meaningful part of our business and our consumers want that from us. The product side, the things we were talking about to drive brand heat from collaborations to great partnerships, we have great company. You know, from they say you, you are the company you keep. And between Beyonce and Shaboozy to Nike and what's next, all of those things are contributing to the great place we are right now with the health of the brand.

[Jim Cramer]

Well, I want to congratulate you on a terrific quarter. People are going to be flocking to the stock. It's one of the few bargains left in this market. Michelle Goss is President CEO of Levi Strauss. Thank you. Thank you so much for coming on Mad Money.

[Michelle Goss]

Thanks so much, Jenny.

[Jim Cramer]

Thank you. Mad Money's back, everybody.

[Rob Pace]

Coming up, a recommendation from Kramer hinges on earnings, profitability and more.

[Jim Cramer]

He's sharing a new health care IPO that might tick every box. Next. Trading at Schwab is now powered by Ameritrade, giving you even more specialized support than ever before, like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help and access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading which are America's Top States for Business. Get all the data and complete state by state analysis. See how your state measures up. America's Top States for Business now on.

[Rob Pace]

Topstates cnbc.com.

[Jim Cramer]

Now that we're in the calm before the storm of second quarter earnings season and I want to keep shining a light on the mid sized companies that have come public in the most recent weeks as the IPO markets come back to life. But most investors have focused on the biggest names like Corey. You know, we like Corvette and Circle Internet Group. Can't get my arms around that one. Pay much less attention to the kinds of things we like to talk about, the attractive stories that have made it to market that nobody's focused on. Earlier this week I highlighted mntn. That's that ad tech company which I like like very much. And tonight I want to draw your attention to another one. I'm really kind of pretty, pretty warm on here. It's called Hinge Health. It's a digital physical therapy play. Now Hinge came public on May 22 in a well received deal priced at $32, high end of the proposed range stock immediately going up, opening $39.25 then closing at around 37 on the first day of trading. The stock stayed strong for another couple of days after that, then had a bit of a lull. But after the quiet period end ended mid June and Hinge received universally positive coverage from the analysts. The stock then took off again, climbing as high as $52 and change on the last day of June for pulling back to the mid-40s as of today. So I like that. Nice pullback from the top, just like I said at the top of the show. So what exactly does Hinge do and why do so many analysts go crazy for it? Basically, they created this digital platform to let you get all sorts of personalized physical therapy over the web aided by their AI powered motion tracking technology. So it's proprietary. You put on the device and then you can do most of your physical therapy at home with some guidance from professionals. That allows Hinge to deliver the same level of care as typical providers while reducing the actual human labor needed by about 95%. Plus if you ever had musculoskeletal injury, it's not always convenient to go to the hospital or an outpatient center for physical therapy. Being able to do Those exercises from home is a real positive. While the musculoskeletal physical therapy market is massive, Hinge says that existing solutions have fallen short. Why? Because they're often expensive, ineffective, inconvenient to access and delivered in a one to one or fewer few to one healthcare setting. It's a whole production basically. Whereas Hinge lets you access the same thing with a little device and a computer. Hinge's clients are primarily self insured employers because it's easier for them to make the pitch to businesses directly rather than going through the often old fashioned insurance companies. And the work with GM and Mazda, Target, Morgan Stanley, Barclays, the city of Seattle and the Texas AM University System among many others. All told, they're actually Even though young company they're working with 42% of the Fortune 500, they have a 98% retention rate last year. Basically the customers welder, often to the point where they make these guys their solo provider for musculoskeletal for pt. Now Hinge says that it's also in the early stages of expanding to serve health plans, fully insured and Medicare Advantaged populations as well as federal insurance plans. Now we know that medical advantage plans could certainly use the cost savings because they're killing the managed care companies right now. So how do the numbers look? Okay. Pretty darn good actually. Last year hinge Health had 33% revenue growth and that accelerated to just under 50% in the first quarter of this year. I love our accelerate revenue growth growth. As I told you on Tuesday when I talked about Mountain, I'm wary of extrapolating from a single quarter of numbers, but what can I say? The numbers are excellent. Hint is billings grew about 42% last year. The billings growth also accelerated 52% in the first quarter of this year. Wow. In terms of some of the other key top line metrics, their number of clients grew 36% this year to 2256. Was up roughly 28% year over year in the first quarter to 2311. And average eligible lives grew almost 30% in 2024 to 15.7 million. And the company had approximately 20 million contracted lives by the end of last year. I like this growth now the profitability numbers pretty strong too. Using the strict GAAP numbers, Hinge helped cut its losses substantially last year with its net loss falling from $108.1 million in 2023 to just under less 11.9 million in 2024. Then in the first quarter of this year, Hinge had an outright gap profit a Breakout. With net Income at 17.1 million, these stocks that have just turned profitable for the first time can often deliver some big long term gains. Now if you look at the more generous non GAAP numbers hinges, it's on fire. Non GAAP gross Profit grew from 70 to 78% last year. That ticked up to 81% in the first quarter of 2025. Can you believe it? Business non GAAP operating margin improved from negative 40% to negative 7% last year and was positive 12% in the first quarter. His free cash flow turned positive last year, stayed positive in the first quarter this year again. Companies on the cusp of profitability often make for great investments. For you Mountain, MNTM was almost there, but Hinge Health seems to have just passed that point now. I bet it's a position it's to start growing its earnings substantially from here. So the story sounds pretty good, right? Numbers are great. And now the only thing left to determine is how much should we pay for this stock. The 13 analysts that have stuck buy ratings on Hinge have assigned a price targets ranging from 41 to 52. So with the stock currently around 44, it's right in the middle of the range. These analysts have established consensus earnings estimates for hinge of $0.51 per share for this year, $0.74 per share next year. So on an absolute basis the stock seems that a little pricey. Trading 87 times this year's number, 60 times next year's numbers. However, I don't think that's a crazy multiple to pay for a stock in this stage of its development now when it's got such rapid growth. With Hinges earnings per share expected to grow by 45% next year. The stock has a price to earnings to growth ratio of 1.33 based on these numbers, which is actually far from expensive. In fact, using 2026 numbers, the S&P 500 currently has a one point price to earnings to growth ratio. You could argue that at least on this metric, Hinge is trading at a discount to the market. Bottom line, I think Hinge Health looks like another good option for investors like MNT and Mountain. But unlike the high flying Core Wave or the Circle Internet. You know what, you get my blessing right now right here to buy tomorrow morning. Yeah, I feel that good about it. As we bruise these mid sized IPOs from the past several weeks companies, we're finding some real nice up and coming companies with stocks that haven't run too much. And I think some of them like Hinge and Mountain represent really good Options for growth oriented investors like you. Let's go to Paul in New York. Paul. Hey, Jim, how are you? I'm doing well, Paul, in the even my annual meeting. How about you? What's going on? I'm doing great. I just wanted to say I love the show and I've learned so much watching you over the years. So thank you. Thank you. It's about education. You know, look, when I was running money for people, it was about making money for those people. And they were wealthy people. They were the 1%. I got into the 1% of the 1. This is about education. I gave up that other stuff because it wasn't very satisfying for me. When I hear something like what you just said, Paul, I am very satisfied. How can I help you? So, Jim, I recently got back from a trip to Argentina and I wanted to learn Spanish. I started using this language learning app and I know how much you like subscription based businesses. So, Jim, what are your thoughts on duolingo? You know, duolingo had like a little bit of a hiccup and people kind of freaked out. I agree with you. I think duolingo is the way to learn language. I. The only thing I do, I'm concerned is if you get those ray bans, you know, the meta ray bans and they teach you how to speak, you don't need them. Which is why I worry about paying 120 times earnings for them. As those metas, which are very inexpensive, get wider distribution, it may hurt dual will link those businesses. All right. I think Hinge Health looks like another solid option coming right out of this IPO pipeline that no one's paying attention to. I'm giving you my blessing to buy this one tomorrow morning. Now much more mad money. We know the consumer's looking for value, right? But which retailer offers the best? I'm checking in with data from 100x to learn more about what they're hearing. They're also fun, but they should color your thinking always. Then this morning, rare earth Mining Co. MP Materials. Pass Materials and they asset. The defense department's taking a big stake in their company. So what do I make of the deal that I've been calling for for years? And. And of course, what are the surrounding China concerns and why are the Chinese trying to corner the rare earth market? Well, let me give you my take and of course, all your calls. Rapid fire in tonight's edition of the lightning round. So stay with Kramer. I like this stuff. In these weeks before second quarter earnings season begins in earnest. We're at that point where we're gathering information we get our hands on. Which brings me to a relatively new source of data you might be familiar with. The regular viewers. It's the monthly reports put up by 100x consumer insights and strategy company sources feedback on thousands of brands from their customers, asking them about what they actually plan to buy, rather than their previous disbelief. When we last spoke with 100x about a month ago, they told us that their data showed much more resilient consumer than many believed at the time. And if that kept you bullish on the market, well then you've done pretty well since the SB is up 4.5%. So let's go back to the well with Rob Pace. He's the founder CEO of 100X. Here to more insights from his latest batch of data. Bishop, welcome back to everybody.

[Rob Pace]

Thank you.

[Jim Cramer]

Well, Rob, you've got some stuff that people all, all I know want to talk about. They want to talk about Waymo versus Uber. They want to know. And Lyft. They want to know whether Waymo is regarded as being any in the conversation or not. You have some shocking data about Waymo.

[Rob Pace]

Yeah, Any time we have a new category like Robo Taxis, what we've learned, Jim, is the key question is actual customers who are using it in uncontrolled settings, are they going to use it more or less in the future? That's the key. And our numbers look great. Rate on Waymo, terrific. And importantly, they've, they've crossed the safety threshold. Only 12% of people now have concerns about getting into a Waymo. To give you context, that number is 8% for Uber. So they've really closed that.

[Jim Cramer]

And where would it have been, you know, say a year ago, do you think?

[Rob Pace]

Oh, it was. If you read the comments, there was sort of equal waiting people who were tepid. Now 35% percent of people call it out as a positive in terms of safety. And in fact a lot of our female people, females who provide feedback say it might be safer for them, especially at night. So I think Waymo and Alphabet the parent have a big winner.

[Jim Cramer]

Well, see, the city just hit because I got worried about Alphabet from my travel trust because they didn't like the Justice Department going so hard on them. But now I feel like with what I read your data, I think, you know what, just let's say the Justice Department wins and they break them up up, suddenly you might have a winner in Waymo.

[Rob Pace]

Yeah, it's really interesting. I mean if you, if you extrapolate, it's very Good for the future of autonomous, very good for robotics. And they've got a, they've got a winning formula with, with Waymo that they could take that brand in a number of directions.

[Jim Cramer]

And this is the first data that I see, first empirical evidence of what I've been thinking myself about it. That's terrific. Now what your data is not necessarily going to turn into stock prices, but today we had a huge run in the equation. Airlines, including southwest, which was up 8%. When we spoke to you last, we talked about what it would mean when they started charging for baggage. Now people could be upset, maybe not, but I'd like to know what the, what the view is from the actual purchase intent, people.

[Rob Pace]

Yeah. And to be balanced, we think that the moves they've made to seating make a lot of sense.

[Jim Cramer]

Right.

[Rob Pace]

On baggage. Unfortunately, as they've implemented our data has turned quite negative. So they've gone from along with Delta having the highest future loyalty to being at the bottom right now. A nine or ten point move.

[Jim Cramer]

Wow.

[Rob Pace]

Last few months. That doesn't say that maybe that it's not a good business move. But it does say that the consumer cares. Their favorability on baggage went from the industry best, 70% positive. Now it's at Delta's level at 20%. That 50 point move is significant and it's eroding in some of their value perception. So they'll make more money, but it'll be interesting to see if it hurts in terms of long term loyalty and the multiple.

[Jim Cramer]

Okay, so let me explain to people how I would use Rob's work. I would say you mentioned the last thing is the multiple. Maybe I would not pay as much for the earnings going forward because they could be maybe evaporating or at least getting a little more tepid because of what he just said. Or you know, you can just say I'm going to keep it in mind and it'll be a little more conservative either way. Yet factor it in. Now a strategy that I've always found is if I can find good brands, I might want to buy them at higher prices and not be so concerned. You've come up with something much better than that. You're talking about MVP health.

[Rob Pace]

Well, and I need to give credit to Deloitte Consulting who use that framework.

[Jim Cramer]

Thank you, Deloitte.

[Rob Pace]

I love this framing. More value for the price and be mvp. Are you an MVP company or is it an lvp? Low value for price. I think that's a key component of investing.

[Jim Cramer]

Wow. And so I've noticed Tapestry at the old has been soaring and I didn't think of them as being doing that well. Obviously they represent some value. Marriott again, huge. Today we're looking at Contour as a possible turn. Turn.

[Rob Pace]

Yeah. Wrangler. Our data on Wrangler. The durability Levi's by the way is also moving up a lot in this category. But the durability for. For Wrangler is. Is terrific in our data.

[Jim Cramer]

And I'm glad to see Costco. I'm talking about that tonight as being just. It didn't matter to the late Charlie Munger at what price you paid for that one.

[Rob Pace]

Well, Costco's. Think about this. Costco's quality perceptions are 30 points higher than competitors.

[Jim Cramer]

30 points. And if you used to seeing that disparity, any industry.

[Rob Pace]

No, and certainly not an industry like superstores. Now here's the interesting thing. If Costco spun off pharmacy, if they, if they spun off grocery, they would all be at the top of our list. I've never seen a company be able to execute in multiple categories the way Costco does.

[Jim Cramer]

There is no company like it. There just really isn't. Well, look, Rob, once again, I mean your insights are just impeccable. Now use them. Don't make it gospel. He's not saying I would tell you to sell Texas Roadhouse on that is not doing that. It's insight. Insight makes you a more powerful, competent investor. Rob pace, founder and CEO of 100X. Thank you so much.

[Rob Pace]

Thank you.

[Jim Cramer]

They have money back. Anyway. Coming up, Kramer takes your calls.

[Rob Pace]

And the sky's the limit. It's a fast fire, lightning round, maxed.

[Jim Cramer]

It is time. It's time for the white round and then the lightning round is over. Are you ready? Ski Death Light Colleen in Georgia. Colleen, yeah. Hey, Jim, how are you doing? I'm at. I'm doing well here. What's your take on so far? Led by one. All right, now normally people would think that since you recommended Jim at 3 and at 5 and at 7 and at 9 that you would call and just run for the hills at $20. But no, there's still so many bankers who have a sell on the thing. I'm staying with Noto other than the fact that I don't like to see him on other shows. Okay, let's go to Angelo in Ohio. Angelo, Jim from the great state of Ohio. How's it going? I hadn't even thought of it. You're so right. What's up, Jim? You're the smartest guy next to Warren Buff, but you know that. No, actually, you. You sound like my mom. Certainly not my dad. All right. What's up, Jim? Let's talk about American Express. Buddy goes higher. Steve Squeery. Hey, wait till they report. Then some clown always sells it. You can buy better than. Let's go to Howie in California. Howie. Jimmy, chill. Is Howie chilling in Santa Monica? How you doing? I lived in my car in Santa Monica and I loved it. Great neighborhood. What's up? Good weather. Hey. So I started listening to you after I was buying game stock at its highest point. And I knew I needed a change. So I joined the club, became a member, listened to your morning meeting, and I watch your show every day. And now, instead of eating crow, I'm eating a little schnitzel. Because you also introduced me to Nvidia and I got in at 18. So Nvidia was a good pick by me. Nvidia was a good pick by me. Let's go to work. Let's go to work. Fico. I feel like I'm falling off a cliff. You know, like the guy. The guy in the government. Pulte. He hates Fico. I think Fico is good. I'm going to stick my neck out and say that I think Fico's okay here. And by the way, I'm always willing to have Will Lansing on because he's a smart fella. I think Fico fair. Isaac's good. Let's go to Ian in Washington. Ian. Hey, Mr. Craig. I love your show. Thank you. I have a good question for you today, if it's okay. Sure. Lincoln Electric. Lincoln Electric. All right. Now, Lincoln Electric is never going to be cheap because it's a classic industrial. And people like the industrials. I think you got to wait for a pullback because it's up on a spike. So let's wait for a pullback, and then we'll do some buying. Let's go to Michael in South Carolina. Michael. Hey, Jim. Love your show. Thank you. Michael. Curious. What do you think about Diageo? Okay. You can't be the right guy. Because I've been in the bar business, the restaurant business and liquor business. I gotta tell you, they all stink. The problem is this. If you look at the alcohol business, the GLP1s, the new generation of people actually care about their health and wellness and getting fat. Well, alcohol's got all three. And don't forget gummies. Gummies. Very heavy competition. I'd rather own gummies than I would Diageo. There, that's a statement. Let's go to Brad In Massachusetts. Brad. Professor, good evening. You're a true mensch. Please offer a class for option in summertime and also sizable position Okta after the last quarter. I like Okta, but I gotta tell you, I got the CrowdStrike down like 40 gazillion points today. I'd rather than CrowdStrike ahead nine days ahead of when the Earth Stood still from their outage. Let's go to Angela in Tennessee. Angela. Hi Jim. Thanks for sharing your wisdom. No problem. I'm calling from Tennessee and I would like to know your thoughts on Campbell's Soup. Okay. Now, I had some thoughts about Campbell's. When I saw that W. Kellogg got a bid from this outfit. I said, geez, Campbell's has finally come down enough. I am no longer willing to bash it at $29. I think you're fine to be able to buy some. And that, ladies and gentlemen, you will of the Lightning Round. The Lightning Round is sponsored by Charles Schwab.

[Rob Pace]

Coming up, Cramer's sharing why materials are so material to national security and what.

[Jim Cramer]

US Mining means for a more independent supply chain. Next. For decades, America moved the dirty mining and smelting jobs to foreign countries, especially China. We felt great about it. We get the stuff we need from them, usually on the cheap, without polluting our air and our water. But now we're paying the price for that trade off because China supplies most of the world's rare earth minerals. And we need this stuff for everything from cars and jets to military hardware. They are, in short, indispensable for our country. And we've come to rely on China for them. And they have become, let's just say, very unreliable. This morning, MP Materials announced that the Defense Department has taken a big stake in their company, which controls the largest rare earth mine in the country. The deal, which includes a $1 billion construction loan from a couple of banks, along with a separate 150 million dollar loan and a $400 million equity investment from the Defense Department, will ensure that MP can keep developing its Mountain Pass site and build a new rare earth map factory essential to our national security. It's all about having a reliable source of rare earths. In order to reduce our dependence on China. Those of us who followed the history of Mountain Pass, California, the stretch of land that MP Materials controls, remember how MP's predecessor, Mali Corp. Went bankrupt in 2015, a victim of Chinese competition and harsh environmental restrictions. Some of which was their fault, as they were a sloppy operator. But some of it was purely because China made a strategic decision to wipe out the American competition, and it succeeded. At the time, our government didn't care because we never envisioned these minerals would matter. They were too expensive to mine, too dirty to smell, and just not that profitable. There are rare earth minerals all over the world, but most countries don't bother with them because it's never been a particularly good business. So we let China mine the stuff and our companies just paid the Chinese. No one in government cared about the strategic nature of rare earth minerals. Mali Corp was hated for despoiling a beautiful area. Gradually though, China cornered the market and we had to face that head on as President Trump ramped up his trade war. Now suddenly we know the strategic value of these rare earths. We need these materials for electric vehicle batteries, missile guidance systems, jet engines, all kinds of high tech defense stuff that's now hostage to our number one geopolitical rival. The Defense Department has assured us that the United States will be in a better position in the future by putting a price for the mountain pass sites. Keep key materials. You know, it's an ingenious deal because it would simply cost too much for MP to refine all the rare earth minerals that our country needs by itself. We're finally getting serious about a national Achilles heel. And it's not just rare earths. Earlier this week, President Trump announced a 50% tariff on copper again. We used to produce billions of pounds of copper in this country only 40 years ago, but environmental regulations and court rulings crushed the industry. We use 1.7 million metric tons of copper in housing, data centers, electric vehicles, and commercial construction this country. But we only produce 1.1 million metric tons, down from 2.2 million metric tons at its peak before the environmental issues had so many smelters close. It's too expensive to mine here because unlike many other countries, we have real environmental regulations and high wages. Once again, we were happy to get rid of the dirty jobs in the nasty smelt smelting. The price floor created by the tariffs and hopefully better cleaner smelting techniques will make us less dependent on the rest of the world. You know what's funny? When I was young, anytime a major copper producer got too close to the old Soviet Union, the CIA would just overthrow their government and install a brutal dictatorship. By comparison, a 50% copper tower feels pretty civilized. Now don't get me wrong, these were tough decisions. There were very good reasons why our government wanted to outsource all this resource extraction to the resources rest of the world. But we never thought we'd end up being held hostage by China for something truly essential. Unfortunately, the White House hasn't articulated the national security need for rare earth minerals or copper. It hasn't explained the tradeoff. So these moves seem entirely capricious, done out of sheer anger. But for those of us who were guilty of supporting the previous strategy of outsourcing our vital needs, it's time to recognize that we have to compromise, even if it comes at the cost of more pollution than we ever imagined we'd be willing to support. I'd like to say there's always a bull record somewhere, and I promise I'd find it just for you, right here on Mad Money. I'm Jim Kramer. See you tomorrow.

[Michelle Goss]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strateg, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer trading@schwab is now.

[Jim Cramer]

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