Mad Money w/ Jim Cramer – Episode Summary (July 7, 2025)

Hosted by CNBC, "Mad Money" with Jim Cramer delves deep into the financial landscape, offering expert insights, stock recommendations, and engaging discussions to help investors navigate the complexities of Wall Street. In the July 7, 2025 episode, Jim tackles the implications of recent tariff implementations, explores significant corporate acquisitions, analyzes defense sector stocks, and addresses listener questions in the popular Lightning Round.

I. Impact of Recent Tariffs on the Stock Market

Jim Cramer opens the episode by addressing the recent surge in tariffs imposed by President Trump, particularly focusing on the automotive sector. He emphasizes the immediate effect of these tariffs on prices and the broader market sentiment.

• Tariffs on Automobiles:

  • "If you slap a 25% tariff on all the cars and trucks we import from Korea and Japan, you're talking about roughly 17% of the vehicles sold in the US last year." [01:43]
  • The imposition affects approximately 1.6 million vehicles in the U.S. auto market, leading to a noticeable pullback in major indices: Dow Jones (-22 points), S&P 500 (-0.79%), and Nasdaq (-0.92%).

• Market Overreaction Concerns:

  • Cramer suggests that while the market reacted negatively, the decline was not as severe as it could have been, hinting at underlying resilience. "A few months ago, I would have expected a much bigger decline in the stock market." [02:35]

• Broader Tariff Implications:

  • Beyond automotive, tariffs were also placed on imports from Kazakhstan, South Africa, Laos, and Myanmar, indicating a broad-based approach that could stoke inflation. "These numbers seem all over the place." [04:20]

• Strategic Advantages for Domestic Manufacturers:

  • The tariffs are designed to bolster American manufacturers by making imported goods less competitive. However, Cramer notes that not all domestic automakers benefited as expected, with giants like Ford and GM experiencing stock declines despite the protection. "Sounds like not everybody believes that." [03:50]

II. Core’s Acquisition of Core Scientific

A significant portion of the episode features an in-depth interview with Michael Intrader, Co-Founder and CEO of Core Weave, discussing Core's recent $9 billion all-stock acquisition of Core Scientific.

• Rationale Behind the Acquisition:

  • "There's a lot of synergy between them, the two entities, and there's a lot of positive goodness to be extracted from just the interaction of these two entities." [15:32]
  • Core Weave aims to enhance its infrastructure capabilities, particularly in high-performance computing (HPC) and artificial intelligence (AI).

• Operational Enhancements:

  • The merger allows Core Weave to access 1.3 gigawatts of existing power capacity, significantly boosting their operational footprint. "They've got got additional capacity within their fleet." [16:51]

• Financial Strategy and Market Perception:

  • The all-stock deal was designed to reduce leverage and strengthen Core Weave’s balance sheet. "It actually does take down our leverage rate." [18:29]

• Competitive Positioning:

  • Michael emphasizes Core Weave's unique software stack, which differentiates them from competitors like Oracle. "We're really able to drive tremendous shareholder value." [19:31]

• Future Outlook:

  • With the combined infrastructure and software capabilities, Core Weave is well-positioned to meet the growing demands of AI-driven industries. "There's, there's broad-based demand for the product, for the infrastructure, for the compute." [20:56]

III. Analysis of Leonardo DRS in the Defense Sector

Cramer shifts focus to Leonardo DRS, an advanced defense technology company, providing a critical analysis of its performance and future prospects.

• Company Background and Performance:

  • Leonardo DRS specializes in high-tech sensor systems and naval equipment, with 80% of its revenue stemming from U.S. government contracts. "Their equipment is in some of the most important shipbuilding programs." [34:30]
  • Recent quarterly results showed a 16% revenue growth year-over-year and a significant stock jump of nearly 9% following earnings beats. "Leonardo DRS is now 46% for the year to date and up 83% over the past 12 months." [35:00]

• Challenges and Opportunities:

  • The company's reliance on rare earth materials poses risks due to China's export restrictions. However, management remains optimistic, citing a robust domestic supply chain. "Their business is largely insulated from these pressures thanks to its primary geographic footprint in the United States." [35:20]

• Valuation Concerns:

  • Despite strong performance, Cramer expresses caution regarding the stock's valuation, noting it trades at over 37 times earnings. "It's a little pricey for the company that's on track to grow earnings at roughly 17% clip." [35:40]
  • He advises investors to wait for a meaningful pullback before entering positions, given the stock's substantial run-up. "I likely DRS the company. I think it's exactly the kind of defense contractor that can work in this environment." [35:50]

IV. Listener Engagement: The Lightning Round

In the popular Lightning Round segment, Jim Cramer interacts with callers, offering quick stock tips and financial advice.

• Caller Insights and Stock Picks:

  • Chris from North Carolina: Discusses Micron's potential in dominating the AI sector with its NAND and DRAM chips. "Micron stock ran up huge into the print, so to speak." [05:00]

    • Cramer's Advice: Suggests buying Micron in intervals as the stock dips, highlighting the difficulty in predicting its bottom.

  • Gary from Alabama: Mentions a recent IPO, Karman Holdings, seeking insights. "Tell me about Karman Holdings." [33:29]

    • Cramer's Response: Briefly touches on Leonardo DRS as a commendable stock, acknowledging Gary's choice.

  • Myra from Texas: Inquires about Anley Capital Management. "I have been against Anley for many, many years because I think all it is is just this mishmash of securities." [34:04]

    • Cramer's Take: Emphasizes a preference for growth-oriented investments over high-yield, unclear securities.

  • Jonathan from New Hampshire: Asks about investing in technical schools with potential Trump funding. "Do you think schools such as Lincoln Technical Institute should be a great long-term future investment?" [34:47]

    • Cramer's Endorsement: Supports the idea, highlighting the growing importance of technical education. "I've been thinking about that myself all weekend." [34:59]

V. Tackling Valuation Downgrades

Towards the episode's conclusion, Cramer addresses recent valuation downgrades affecting high-performing stocks, offering his perspective on whether these downgrades are justified.

• Netflix Downgrade by Seaport Research Partners:

  • "We believe that plenty of long-term opportunity set is factored into the shares of this price..." [35:50]
  • Cramer's Stance: Argues that Netflix deserves patience and confidence despite the downgrade, predicting continued growth.

• CrowdStrike Downgrade by Piper Saylor:

  • "Meaningfully increase numbers or our terminal multiple already the highest across our coverage universe." [36:00]
  • Cramer's Defense: Highlights CrowdStrike's resilience and strategic maneuvers post-issues, dismissing the downgrade as short-sighted.

• Wells Fargo Downgrade by Raymond James:

  • "Favorable fundamentals reflect in valuation." [36:10]
  • Cramer's Argument: Maintains that Downgrades for valuation reasons overlook Wells Fargo's robust fundamentals and market position.

• Overall Perspective:

  • Cramer emphasizes the importance of distinguishing between different types of downgrades and advocates for holding onto high-quality stocks despite negative analyst sentiments. "I'd much rather stick with these winners than sell them on valuation worries." [37:00]

Notable Quotes:

• "Tariffs do matter. They raise prices almost immediately." – Jim Cramer [01:43]
• "It's a little pricey for the company that's on track to grow earnings at roughly 17% clip." – Jim Cramer [35:40]
• "Micron stock ran up huge into the print, so to speak." – Jim Cramer [05:00]
• "I'd much rather stick with these winners than sell them on valuation worries." – Jim Cramer [37:00]

Conclusion:

In this episode, Jim Cramer navigates through the turbulent waters of recent tariff implementations, evaluates strategic corporate acquisitions in the tech and defense sectors, and provides actionable advice through listener interactions. His analysis underscores the importance of understanding market dynamics, recognizing undervalued opportunities, and maintaining confidence in high-quality investments despite external pressures.

For those seeking to enhance their investment strategies and stay informed about market trends, this episode offers a wealth of knowledge and expert perspectives to guide financial decisions.