Mad Money w/ Jim Cramer – Episode Summary (July 21, 2025)
Published on July 21, 2025
Introduction
In the latest episode of Mad Money hosted by Jim Cramer, aired on July 21, 2025, Cramer delves deep into the current state of the stock market, highlighting key trends, analyzing earnings reports, and engaging with live callers. This episode focuses on the dichotomy between mainstream market indices and a select group of high-profile stocks, dubbed the "Park" stocks, alongside detailed discussions on American Express, Netflix, and Cleveland Cliffs. The episode concludes with a dynamic Lightning Round, where Cramer offers rapid-fire stock opinions.
The "Park" Stocks Phenomenon
Cramer begins by addressing the prevalent trend among retail investors favoring a specific group of high-visibility stocks, which he collectively refers to using his acronym PARK: Palantir, Applovin, Robinhood, and Coinbase.
"These park names are emblematic of how stocks have devolved into a two-track market. There's the S&P 500, and then there's this handful of stocks that retail investors have anointed and relentlessly take up without any real bounce." [01:24]
He observes that despite recent pullbacks, these stocks maintain strong interest from investors, often ignoring fundamental concerns like earnings estimates and analyst ratings. Cramer likens investing in PARK stocks to gambling, emphasizing the speculative nature and inherent risks involved.
"Gambling on PARK is a much fairer, better game, but it is a game nonetheless." [07:45]
Cramer contrasts the current scenario with the dot-com bubble, noting that unlike many tech companies before the crash, the PARK stocks are generating profits and have solid earnings, reducing the immediate risk of a similar market downturn.
Audience Calls and Stock Recommendations
Throughout the episode, Cramer engages with live callers seeking advice on various stocks. Key discussions include:
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Voucher (Adobe)
- Caller: Larry from New Jersey inquires about Adobe's recent earnings and long-term prospects.
- Cramer's Advice: Suggests a cautious approach, advising to watch for Figma's acquisition before making a move.
"Might get this thing at a cheaper price. I want to go to Chris in New York." [08:37]
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Core Weave
- Caller: Chris from Buffalo, New York, asks about Core Weave following a downgrade.
- Cramer's Insight: Cautions that the stock may drop after short covering settles but sees potential for future decline.
"I think I like Corey and I like Michael and Trader. But I would say the stock is $60 billion and it's going to have to come down and cool off a little bit." [09:43]
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Boeing
- Caller: Brian from Michigan discusses his interest in Boeing.
- Cramer's Strategy: Recommends buying more shares if the stock dips below a certain point post-earnings report.
"If it comes in down, let's say it comes to 220. Here's what you want to do. Pull the trigger." [10:12]
In-Depth Analysis of American Express Earnings
Cramer provides a thorough analysis of American Express's recent earnings report, highlighting both strengths and concerns that led to the stock's decline despite positive financial metrics.
"American Express reported 7% bill business growth. That's total card members spending. That was a little better than expected." [14:14]
Key Points:
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Revenue and Earnings:
American Express beat revenue and earnings estimates, with a 9% year-over-year revenue growth and earnings per share at $4.08 compared to the expected $3.89. -
Guidance Concerns:
Despite strong quarterly performance, the company only reiterated its full-year forecast without an upgrade, causing investor uncertainty. -
Consumer Spending Insights:
CEO Steve Squeri highlighted steady spending among premium consumers, particularly Millennials and Gen Z, which reassures long-term growth prospects. -
Credit Quality:
The company's focus on credit quality remains robust, with a delinquency rate of 1.3%, significantly lower than the industry average.
Cramer concludes that the stock's sell-off presents a buying opportunity, reiterating his confidence in American Express's long-term viability.
"Once again, this looks like a good quarter and just as predicted, my gut instinct says this was what we said all the time... a buying opportunity." [19:50]
Comprehensive Review of Netflix's Performance
In his discussion on Netflix, Cramer examines the company's recent earnings report, audience engagement metrics, and future content strategies.
"Netflix grew revenues by 16%, slightly ahead of expectations. Management said the revenue growth was primarily driven by more member higher subscription pricing and increased ad revenue." [22:08]
Highlights:
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Revenue and Earnings:
Netflix surpassed revenue projections with a 16% increase and reported an 11 cent earnings per share, exceeding expectations. -
Content Performance:
Successful releases like "Squid Game" Season 3 and Tyler Perry's new movie contributed significantly to viewership, showcasing Netflix's strong content portfolio. -
Membership Growth:
Membership numbers exceeded internal forecasts, and the company raised its full-year revenue outlook by $1 billion. -
International Expansion:
Emphasizing local content, Netflix invested heavily in international markets, including a substantial push in Spain and partnerships in France, enhancing global appeal. -
Ad Revenue Growth:
The introduction of Netflix Ad Suite has accelerated ad revenues, which are expected to double within the year.
Despite robust performance indicators, the stock experienced a 5% dip post-earnings due to high market expectations and concerns over user engagement growth.
"But part of it relates to some legitimate worries about engagement. Netflix said its users have watched 95 billion hours of content this year, yet that was actually a disappointment to some investors, up just 1% year over year." [22:40]
Cramer remains optimistic, viewing the dip as a buying opportunity based on Netflix's long-term growth strategies and expanding content library.
"This pullback in the stock is a chance to actually buy a best of breed streaming platform at a discount." [28:47]
Interview with Cleveland Cliffs' CEO, Lorenzo Goncalves
Cramer conducts an in-depth interview with Lorenzo Goncalves, Chairman, President, and CEO of Cleveland Cliffs, discussing the company's performance, market dynamics, and future outlook.
"Ever since President Trump doubled the tariff on steel imports, Cleveland Cliffs stock hasn't looked back." [28:47]
Key Discussion Points:
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Operational Efficiency:
Goncalves highlights the strategic shutdown of underperforming plants in Pennsylvania and Illinois to optimize operations and focus on profitable assets. -
Market Positioning:
The company is well-positioned to benefit from increased domestic demand in the automotive and electrical sectors, driven by recent policy changes favoring US manufacturing. -
Data Centers Opportunity:
With excess capacity in power and water, Cleveland Cliffs is exploring opportunities in data center construction, leveraging their infrastructure strengths. -
Trade Policy Impact:
Goncalves criticizes Federal Reserve Chairman Jerome Powell, attributing economic challenges to high interest rates and policy missteps, which he believes hinder consumer spending and industrial growth."The Fed is not a separate power... Jay Powell believes that he is playing a counter to Donald Trump. And that's totally absurd." [37:11]
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Future Earnings Power:
Emphasizing the direct correlation between increased domestic car production and steel demand, Goncalves forecasts strong earnings growth as the US rejuvenates its manufacturing base.
"The more we produce cars in the United States, the more you'll be able to produce steel because you supply them with higher production. We dilute our fixed costs, our costs go down, our margins increase." [39:25]
Cramer lauds Goncalves for the company's strategic direction and robust performance, reinforcing the bullish outlook on Cleveland Cliffs.
"Lorenzo Gonzalez is the chairman, president, CEO of Cleveland Cliffs. It was a great quarter, sir. And that's what really matters." [40:07]
Lightning Round: Rapid-Fire Stock Opinions
In the concluding segment, Cramer participates in the Lightning Round, providing swift buy, hold, or sell opinions on various stocks based on callers' inquiries.
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Granite Construction (GVA):
- Caller: Michael from Tennessee seeks advice on Granite Construction.
- Cramer's Take: Views GVA as a potential takeover target and affirms its upward momentum.
"I think that I think that the infrastructure play is still on and therefore granite is still on." [41:20]
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Solid Power:
- Caller: Ryan from Wisconsin inquires about Solid Power's momentum.
- Cramer's Advice: Suggests taking profits due to the stock's significant rise.
"Take a little off the table, because that thing has just been a horse." [42:03]
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ENVX:
- Caller: Todd from Texas asks about ENVX amid Elon Musk's comments on lithium.
- Cramer's Stance: Advises against investing in overextended stocks like ENVX.
"These are what I call parabolic buys. And if you buy a Powerball stock, what happens is it goes parabolic down." [42:35]
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General Mills:
- Caller: James from Minnesota seeks insights on General Mills amidst sector deals.
- Cramer's Perspective: Acknowledges the stock's attractive yield but expresses skepticism about earnings prospects.
"I think you can buy it because of the dividend, but not because of the earnings." [43:06]
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Starbucks:
- Caller: Doug from Tennessee, a club member, asks if a 10-year-old should buy Starbucks.
- Cramer's Recommendation: Encourages purchasing now, highlighting Starbucks as a top pick.
"Buy some now. The stock was down. That is the way to go." [43:55]
Analyst Price Targets and Market Dynamics
Before concluding, Cramer shifts focus to the influence of analyst price targets on stock movements. He explains how these targets can drive broker-client interactions, often resulting in stock rallies irrespective of fundamental valuations.
"Anything that can persuade big institutional investors can move a stock. And a price target boost definitely falls into that category." [44:37]
Insights:
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Influence on Trading:
Price target adjustments by analysts can incentivize brokers to promote certain stocks, leading to increased buying activity. -
Discrepancies and Overreactions:
Cramer highlights cases where price targets are raised despite existing overvaluations, as seen with Caterpillar and United Reynolds, suggesting that such moves may not always align with the stock's intrinsic value. -
Sector-Specific Trends:
Positive outlooks in the capital goods and tech sectors have led to significant stock hikes, driven partly by short sellers covering their positions.
"When you see what looks like a totally irrelevant price target moved up by a little, you should presume this the analyst has people maybe short." [44:37]
Cramer emphasizes the necessity for investors to critically assess price target changes and understand the underlying motivations before making investment decisions.
Conclusion
Jim Cramer's July 21, 2025 episode of Mad Money offers a comprehensive overview of current market trends, emphasizing the speculative nature of PARK stocks, dissecting earnings reports of major companies like American Express and Netflix, and providing actionable insights through live caller interactions and rapid-fire stock evaluations. Cramer's analysis underscores the importance of fundamental evaluation amidst market exuberance and highlights the intricate dynamics between analyst opinions and stock performance. Investors are encouraged to approach high-momentum stocks with caution, recognize genuine buying opportunities, and remain vigilant against speculative risks inherent in the current market landscape.
Note: All opinions expressed by Jim Cramer on this podcast are solely his own and do not reflect the opinions of CNBC, NBCUniversal, or their affiliates. Investors should perform their own due diligence before making any investment decisions.