Mad Money w/ Jim Cramer – Episode Summary (July 23, 2025)

Hosted by CNBC's Jim Cramer, the July 23, 2025 episode of "Mad Money" delves deep into the current state of the stock market, significant trade deals, earnings reports, speculative trading concerns, and featured stock analyses. The episode is structured into several key sections, each providing valuable insights for investors.

Market Overview

Jim Cramer opens the episode by addressing the fluctuating nature of the current market. He observes a broadening market characterized by solid movements in both large-cap and small-cap stocks, fueled by hedge funds and social media activities.

“Sometimes you just can't pin a market down. You see things that are so solid, real companies doing real things and getting rewarded for them... It's speculative, but not so speculative that it's worth worrying too much about.” [01:26]

Despite the Dow Jones Industrial Average soaring by 508 points, the S&P 500 gaining 78%, and Nasdaq advancing 0.61%, Cramer emphasizes a cautious yet optimistic stance, acknowledging the day's positive market performance.

Trump-Japan Tariff Deal

A significant portion of the discussion centers around the recent tariff deal struck between President Trump and Japan, described by Cramer as "the largest trade deal ever, at least according to the president."

“Make no mistake, this was a terrific deal for both sides... there's now a 15% tariff on Japanese products, including cars. Win for the treasury...” [01:26]

Key points include:

• Tariff Imposition: A 15% tariff on Japanese goods, doubling was imminent without the deal.
• Japanese Investment: Japan pledges to invest $550 billion in the U.S., potentially setting a precedent for other international deals.
• Economic Implications: While beneficial in reducing tariff uncertainty, Cramer warns of potential wage inflation due to a tight labor market exacerbated by immigration policies and high demand from pledged investments.

Earnings Season Highlights

Cramer provides an extensive review of the current earnings season, highlighting both strong performers and those underperforming expectations.

Strong Performers:

• Health Care & Life Sciences: Companies like Boston Scientific, Danaher, Thermo Fisher saw robust growth.
• Alphabet (Google): Exceeded sales and earnings estimates, particularly strong in cloud services and AI initiatives like Gemini, boasting 450 million monthly users.

“I even in search where there were concerns that Gemini, their AI bot, might be cannibalizing an incredibly valuable franchise. Gemini turns out, is 450 million monthly average users. That's fantastic.” [05:45]

Underperformers:

• IBM: Despite a solid top and bottom line, a weaker software segment led to a sharp decline in after-hours trading.
• Tesla: Reported misses on top and bottom lines; however, positive narratives around Robo Taxis and upcoming affordable models kept the stock resilient.

Mixed Results:

• Chipotle: Experienced a downturn.
• T-Mobile: Reported favorable results, balancing the mixed earnings landscape.

Cramer underscores the importance of focusing on overall market positivity despite individual stock variances.

Speculative Trading Concerns

A segment of the episode is dedicated to addressing the speculative frenzy reminiscent of past market manias like those seen in 2008, 1999, and 2021.

• Kohl's Example: With 50% short interest and social media-driven stock volatility, Cramer expresses concern over hedge funds potentially being vulnerable to short squeezes.

“What could go wrong with that? Well, we have so many pledges, so many different energies to hire here, yet we don't have nearly enough people to take the jobs. That could be very inflationary.” [06:45]

• Regulatory Oversight: Cramer hints at the need for potential investigations into erratic stock behaviors driven by platforms like Reddit’s Wall Street Bets.

Featured Stocks Analysis

G Vernova

One of the episode's highlights is the analysis of G Vernova, a powerhouse in the power and electrification sectors spun off from General Electric.

“G Vernova. One of the greatest quarters I've seen in a long time. They shot the lights out...” [13:40]

Key Insights:

• Impressive Growth: The stock surged over 14.5% in a single day, with a 45% gain since May.
• Revenue and Earnings: Posted 12% organic revenue growth and a 35-cent earnings beat.
• Market Positioning: Benefiting from the data center boom and increased demand for power grid infrastructure.
• Future Outlook: Raised full-year forecasts with expectations of continued strong performance despite high valuation multiples.

Cramer advises patience, suggesting that while G Vernova has room to grow, the stock may require a pullback before further investments.

Otis Worldwide

Another focal point is Otis Worldwide, facing a significant 12% stock decline despite a strong service revenue report.

Guest Judy Marks, Chair and CEO of Otis, provides clarity on the situation.

“Our story is a service story. 90% of our profits, second quarter service revenue was up 4%...” [34:48]

Key Points:

• Service Revenue: Up by 4%, indicating strong performance in maintenance and services.
• Geographical Performance: Challenges in China due to a sluggish property market, but growth in the Americas and other regions.
• Modernization Market: Significant growth opportunities in upgrading existing elevators and escalators, projecting a 10% revenue increase in modernization.
• Future Prospects: Emphasis on long-term structural growth despite short-term challenges in China.

Cramer remains optimistic about Otis’s long-term potential, highlighting the stable dividend yield and strategic growth initiatives.

Caller Interactions

Throughout the episode, Cramer engages with several callers, providing personalized investment advice:

1. Peter from Florida (Uber)

   • Issue: Uncertainty about holding 500 shares of Uber after recent drops.
   • Advice: Cramer advises buying more, emphasizing the stock's potential.

   “Peter asked should he stay or should he sell? But you know what he should be doing? He should be buying.” [09:33]

2. Steve from California (Crispr Therapeutic CRSP)

   • Issue: Significant gains on Crispr stock without media attention.
   • Advice: Cramer acknowledges the stock’s speculative nature, suggesting a balance between potential tripling or stagnation.

   “Crispr could either triple or do nothing. That's not a bad ratio.” [10:21]

3. Dave from Connecticut (Intuitive Surgical)

   • Issue: Holding** Intuitive Surgical** stock amid mixed performance.
   • Advice: Cramer recommends maintaining a positive outlook due to ongoing business strengths.

   “The picture's mixed right now, but I don't want you to be cynical because there's too many things going right.” [12:07]

4. John from South Carolina (Real Estate REITs)

   • Issue: Choosing between dividend-focused real estate stocks versus growth.
   • Advice: Encourages growth-oriented investments over traditional dividend REITs like Realty Income.

   “I like growth. Growth is the only safety.” [32:32]

Lightning Round

In the Lightning Round, Cramer offers rapid-fire buy, sell, or hold recommendations on various stocks:

• Pfizer: Advises holding with a wait-and-see approach on acquisition impacts.

  “Two more quarters and then we're going to fish or cut bait.” [42:24]

• CrowdStrike: Encourages holding and continuing investment for long-term gains.

  “You're in the best... Let the rest run. And I'll see you at $1,000.” [43:20]

• Marvin Ellison Stock: Recommends holding despite mixed signals.

  “Absolutely not. And that, ladies and gentlemen, conclusion of the Lightning Round.” [43:31]

Parabolic Stock Movements

Cramer discusses the challenges and opportunities presented by parabolic stock movements, where stocks experience rapid and steep price increases.

“The theory behind selling the stocks that go parabolic is that nothing good can come from a stock that goes straight up. So you better cash out while they're running.” [44:08]

Key Takeaways:

• Historical Perspective: Traditionally, parabolic moves are unsustainable and risk significant losses.
• Current Market Adaptation: Cramer admits to deviating from his usual caution due to the unprecedented frequency and magnitude of such moves.
• Strategic Shifts: Introduces his forthcoming book, outlining methods to capitalize on these trends responsibly.
• Specific Stock Examples:
  • OCLO: Despite a steep rise, Cramer advocates for continued investment based on strong fundamentals.
  • Joby Aviation: Encourages holding for long-term gains amidst volatility.
  • Palantir, Applovin, Robinhood, Coinbase: Acknowledges their explosive growth but advises moderation.

Cramer concludes by emphasizing the necessity of adapting investment strategies to the evolving market landscape, advocating for selective speculations alongside traditional investments.

Conclusion

Jim Cramer's July 23, 2025 episode of "Mad Money" provides a comprehensive analysis of the current market dynamics, significant trade deals, earnings performances, and speculative trading risks. Through detailed stock analyses and interactive caller engagements, Cramer offers actionable insights tailored for both seasoned and novice investors. His candid discussion on adapting traditional investment principles to modern market behaviors underscores the episode's practical value.

Notable Quotes with Timestamps:

• “Sometimes you just can't pin a market down... it's speculative, but not so speculative that it's worth worrying too much about.” [01:26]
• “Peter asked should he stay or should he sell? But you know what he should be doing? He should be buying.” [09:33]
• “I like growth. Growth is the only safety.” [32:32]
• “The theory behind selling the stocks that go parabolic is that nothing good can come from a stock that goes straight up. So you better cash out while they're running.” [44:08]

This detailed summary encapsulates the critical discussions from Jim Cramer's "Mad Money" episode, offering valuable insights and strategies for investors navigating the complex stock market landscape.