Mad Money w/ Jim Cramer Episode Summary
Title: Mad Money w/ Jim Cramer
Host: Jim Cramer, CNBC
Release Date: July 11, 2025
Market Overview
Jim Cramer kicked off the episode by addressing the current state of the stock market amidst ongoing tariff announcements. Despite the economic headwinds, the Dow Jones Industrial Average slipped by 279 points, while the Nasdaq dipped by 2%. Cramer highlighted the market's resilience, attributing it to sustained demand from individual investors.
"At these levels, the market remains pretty overbought. You know I don't like that. But all of the new tariff threats barely dragged us down today."
[07:50]
He emphasized that individual investors remain undeterred by the increasing complexities of tariffs, a sentiment echoed by members of the CNBC Investing Club during their annual meeting.
"The individual investor basically is so far undeterred by the harsh words and the tariff noose tightening that has now become commonplace."
[08:10]
Upcoming Earnings Season
Looking ahead, Cramer discussed the imminent earnings season, set to commence on Monday. He forecasted potential challenges, including new tariffs and geopolitical tensions, particularly concerning Russia, which could affect the oil market.
"We're headed right into earnings season on Monday, though we'll have to sit through those new tariffs and penalties and another half dozen sovereign states..."
[08:45]
He spotlighted JP Morgan and Wells Fargo as key players to watch, noting their leadership and recent performance metrics.
Individual Stock Highlights
Capital One Financial
A significant portion of the discussion centered on Capital One Financial, particularly following its acquisition of Discover Financial in an all-stock deal valued at $35.3 billion. Cramer praised this strategic move, highlighting its potential to transform Capital One into a global payments platform.
"Capital One's acquisition of Discover Financial gives them ownership of the Discover global network, allowing them to scale up to become a truly global payments platform."
[12:30]
He detailed the expected synergies from the deal, including $1.5 billion in cost savings by 2027 and an additional $1.2 billion from network efficiencies. This acquisition positions Capital One to reduce reliance on third-party payment processors like Visa and MasterCard, directly impacting their profitability.
"This deal is going to boost their earnings per share by 15% once we get to 2027 and that is substantial."
[13:10]
Cramer also touched upon the potential for increased rewards in Capital One's debit card offerings, leveraging Discover's unregulated debit interchange capabilities.
"Capital One can now earn more money each time a customer swipes their debit card because Discover's network isn't subject to the government fee caps that apply to banks."
[14:00]
Contour Brands
Cramer provided an in-depth analysis of Contour Brands, known for Wrangler and Lee Jeans, recently expanded by the acquisition of Helly Hansen, an outdoor apparel brand. He traced Contour's stock trajectory from its COVID-19 low of $13 to current levels, attributing its recovery to strategic acquisitions and operational efficiencies.
"Contour Brands has climbed from around $13 at the COVID lows all the way to 67 cents today, and it was in the mid-90s earlier this year."
[19:10]
He highlighted the successful integration of Helly Hansen, predicting significant growth from this acquisition and a strengthened presence in international markets.
"Helly Hansen storied Norwegian rugged outdoor brand will contribute 16% of growth and 20 cents of adjusted earnings, which is exactly the amount that they raised the guidance."
[21:45]
Despite recent volatility, Cramer remains bullish on Contour Brands, citing its attractive valuation and growth prospects.
"Contour stock remains very cheap. It's just trading at just over 12 times the midpoint of the new earnings forecast."
[24:30]
Other Notable Stocks
Cramer also mentioned other financial institutions and major players like Wells Fargo, BlackRock, and Johnson & Johnson, discussing their latest performances and future outlooks. He expressed particular interest in BlackRock, marveling at its resilience despite recent investor skepticism.
"BlackRock's the largest asset repository in the world and as a new infrastructure component that I sure wish I could get a piece of. It's only for four. One case."
[10:15]
Listener Questions and Answers
The segment featured interactive Q&A sessions with listeners seeking advice on various stocks and investment strategies.
George from California on Palantir (PLTR)
George inquired about investing in Palantir, to which Cramer responded affirmatively, encouraging momentum-based investing while cautioning against meme stock pitfalls.
"The momentum is still with you and it is not too late now. Does it deserve that? These guys talk a big game. It's a Meme stock, okay?"
[08:21]
David from New York on Pfizer
David sought insights on holding Pfizer, highlighting its steady dividend yield. Cramer acknowledged Pfizer's value but noted the necessity for catalysts beyond its dividends to drive stock appreciation.
"I do think that Pfizer is an inexpensive stock. They have to have some sort of catalyst. They have to prove that they have some new cancer formulations with Cgen."
[08:57]
Carol from California on a Pandemic-Era Stock
Carol shared success with a stock purchased during the pandemic. Cramer advised holding the stock, referencing Larry Culp’s positive outlook and the stock's substantial gains.
"I think it is one of the best in the book."
[10:01]
Additional Questions
Further inquiries touched on Dutch Brothers, Eli Lilly, Chipotle, and Prologis, with Cramer offering tailored advice ranging from holding positions to cautious buying based on market conditions and company fundamentals.
"Dutch Bros. is in major expansion mode. You know, I think it's strivec. ... I would wait till comes down a little."
[26:25]
Investing Club Insights
Cramer recounted highlights from the CNBC Investing Club's annual meeting, emphasizing the collaborative decision-making process and the value of member questions in shaping investment strategies.
"We held our CNBC Investing Club annual meeting earlier today and we had so many fantastic questions from our club members..."
[26:59]
He detailed the experience of ringing the closing bell at the New York Stock Exchange, underscoring the excitement and educational value of the event.
"The entire investing club team got to ring the closing bell right here at the New York Stock Exchange, which never fails to take my breath away."
[27:00]
Lightning Round Highlights
In the fast-paced Lightning Round, Cramer provided quick takes on various stocks:
-
Rocket Lab: Cramer lauded it as one of the hottest stocks, anticipating continued upward momentum.
"This Rocket Lab has been right now for the last 10 points. It's going to continue to be right."
[36:58] -
TSSI: Redirected focus to preferred stocks, indicating a strategic preference for top-tier investments.
"We want to be in Corrnweave. If we're going to go there, we don't buy number two, we buy number one."
[37:30] -
Eli Lilly: Expressed strong confidence in Eli Lilly’s long-term prospects despite recent stock fluctuations.
"This one is one that everyone's going to give up on them one day. It's going to be up 300."
[37:51] -
CAG (ConAgra): Advised against investing due to inflation pressures and declining margins.
"A company that has to answer about whether it has a problem paying the dividend or not is a company that I say, don't buy."
[38:27] -
NXPI (NXP Semiconductors): Endorsed it as a strong buy post-upgrade from other banks.
"Think you buy NXPI on Monday morning. I do not kid you."
[39:08] -
Power Solutions (PSI): Recommended continuing investment due to the company's strong positioning.
"That is an amazing stock. It's not even that expensive."
[39:44]
Conclusion and Reflections
Cramer concluded the episode with a personal reflection on a past investment decision involving Alphabet. He expressed regret over selling the stock prematurely despite its subsequent gains, underscoring the challenges of timing the market and the emotional aspects of investment choices.
"I have been beating myself up around in front of club members who came in today. I'm remonstrating about the charitable trust sale of Alphabet."
[40:34]
He reaffirmed his bullish outlook on the stock, mentioning its diverse business segments like Google Search, YouTube, Gemini AI, and Waymo, and contemplated the potential impact of government actions on its valuation.
"What matters isn't that I sold Alphabet. What matters is where I think it is going."
[40:39]
Cramer wrapped up by promising continued insights and reinforcing his commitment to helping listeners navigate the investment landscape.
"But ultimately the answer is, I like to say, as always, the bull market Summer."
[44:25]
Note: All opinions expressed by Jim Cramer on this podcast are his own and do not reflect the opinions of CNBC, NBCUniversal, or their parent companies or affiliates.