Mad Money w/ Jim Cramer 7/8/25

Summary

Mad Money w/ Jim Cramer – July 8, 2025

Released on July 8, 2025

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Market Dynamics: The Battle Between Individual and Institutional Investors

[01:25] Jim Cramer

Jim Cramer kicks off the episode by highlighting a significant trend in the stock market: the ongoing struggle between individual (private) investors and institutional investors. Referencing Bank of America's "Equity Client Flow Trends" report, Cramer emphasizes that while institutions have been net sellers in eight of the last nine weeks, individual investors have remained steadfast, acting as net buyers in 28 of the last 30 weeks. This divergence has contributed to the S&P 500 reaching new all-time highs despite substantial institutional selling.

“The individual investor has not lost faith. They practically propelled us the whole way from the post Liberation Day lows.” – Jim Cramer [03:45]

Cramer attributes the resilience of the market to the unwavering confidence of individual investors, contrasting it with the more cautious stance of institutions. He underscores the belief among retail investors that stocks represent long-term value and a robust avenue for wealth accumulation, unfazed by political uncertainties or economic policies.

Legislative Insights: The Trump Account for Newborns

[05:10] Jim Cramer

Delving into recent legislative developments, Cramer discusses a provision from the latest budget bill known as the Trump Account, which introduces a $1,000 tax-deferred investment account for every newborn in the United States between January 1, 2025, and December 31, 2028. This initiative aims to foster long-term investing habits among future generations.

“You want to take advantage of that. Now I'm not saying this amount of money can move the stock market. It can't. But... these individuals have faith in the future.” – Jim Cramer [06:30]

Cramer highlights the potential of this provision to encourage savings and investments from a young age, thereby strengthening the foundational support for the stock market.

Deep Dive: Carvana's Remarkable Journey

[07:02] Jim Cramer & Caller Robert

In an in-depth analysis, Cramer examines Carvana, a digital-first used car retailer that has seen its stock nearly double in recent months. Responding to a caller named Robert from New York, Cramer outlines the company's impressive performance metrics and strategic direction.

Key Highlights:

• Record Performance: Last quarter, Carvana reported a 46% increase in retail unit sales, a 38% rise in revenue, and earnings that significantly surpassed Wall Street expectations.
• Future Projections: The company aims to sell 3 million retail units annually and achieve an adjusted EBITDA margin of 13.5% within the next five to ten years.
• Market Opportunity: With only 1% market share in a vast and fragmented automotive retail market, Carvana is positioned for substantial growth.

“Never forget, Carvana's built a best in class business model and management is on track to deliver both strong growth and rising profitability.” – Jim Cramer [15:00]

Cramer is bullish on Carvana's long-term prospects, despite acknowledging short-term volatility and insider stock sales. He advises investors to consider Carvana a solid long-term investment while remaining cautious of overbought conditions.

Interview: Ravati at Flex on Transformative Growth

[32:11] Jim Cramer & Ravati at Flex

Cramer welcomes Ravati, the CEO of Flex, to discuss the company's evolution and strategic initiatives. Flex has undergone significant transformations, expanding its portfolio beyond traditional contract manufacturing to include data center and utility spaces.

Key Insights:

• Business Expansion: Flex now dedicates 75% of its operations to high-end contract manufacturing across various sectors, including industrial, automotive, consumer products, and healthcare.
• Data Center Integration: The remaining 25% focuses on data center infrastructure, integrating compute, power, and cooling solutions to support the growing demands of hyperscalers and silicon providers.
• Global Footprint: Flex maintains a robust global presence with manufacturing facilities in North America, Europe, and Asia, ensuring supply chain resilience.

“We are the only company that puts power, that puts cooling and puts all the IT integration together in one place.” – Ravati at Flex [35:50]

Ravati emphasizes Flex's unique position in the market, offering comprehensive solutions that bridge power and IT integration—crucial for modern data centers. Cramer expresses his confidence in Flex's strategic direction, highlighting its potential for sustained growth and profitability.

Lightning Round: Quick Takes on Trending Stocks

[41:11] Jim Cramer

In the high-energy Lightning Round, Cramer responds to multiple callers with succinct buy, sell, or hold recommendations:

1. WABTEC

   “It's a really good company. Let's go.” – Jim Cramer [41:20]

2. Robinhood
   Cramer reaffirms his long-term belief in Robinhood, despite recent volatility.

3. Riot Platforms
   While acknowledging the potential of Bitcoin and related mining companies like Riot, Cramer prefers direct investment in Bitcoin over leveraging through mining stocks.

4. Digital Bridge
   Cramer advises against investing in Digital Bridge, citing its expensive valuation.

   “I cannot recommend Digital Bridge.” – Jim Cramer [43:24]

5. Lumber Day
   Cramer remains skeptical about oil stocks, advising caution.

Tariff Impacts: Boosting U.S. Automakers

[44:18] Jim Cramer

Cramer concludes the episode by analyzing the effects of President Trump's recent tariff announcements on the automotive industry. He posits that the 25% tariffs on auto imports from Japan and South Korea will favor American automakers like Ford and General Motors (GM).

Key Points:

• Competitive Edge: U.S. automakers stand to benefit as tariffs make imported cars more expensive, thus boosting domestic sales.
• Case Study - Ford: Cramer predicts that Ford's stock will outperform, drawing parallels to how Whirlpool benefitted from similar tariffs.
• Inflation Considerations: While tariffs may exert upward pressure on car prices, Cramer believes the impact on inflation will be manageable and won't significantly deter consumer purchases.

“The stocks of General Motors and especially Ford are headed higher.” – Jim Cramer [44:30]

He draws optimism from historical precedents where protective tariffs have strengthened domestic companies, suggesting a bullish outlook for U.S. automakers in the current market climate.

Conclusion

Jim Cramer's episode on July 8, 2025, provides a comprehensive analysis of current market trends, investor behavior, and specific stock evaluations. From the resilience of individual investors against institutional selling to strategic investments in companies like Carvana and Flex, Cramer offers valuable insights for both novice and seasoned investors. Additionally, his examination of legislative impacts and tariff policies presents a well-rounded perspective on the factors influencing the stock market's trajectory.

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Note: All timestamps correspond to the podcast transcript for reference.

Transcript

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Money. Welcome to America. I don't make friends. I'm just trying to make you a little money. My job. Not just entertain, but educate, teach. So call me at 1873 CBC. Meet me at Jim Cramer. There is a titanic battle going on in this market that you may not be aware of. It barely gets any intention the war between the individual investor and the institutional investor. I think it actually might hold the key to where this market's going. Even there's A today Dow declined 166 points SB dip 0.07 Nasdaq inched up.03% Lots of people were wondering how the heck this market keep going up in response to a wave of negative news involving tariffs and trade as well as an obvious slowdown in demand for all sorts of goods and services. They think the market's irrational because it should be going down, not up. And it never should have been able to recover so swiftly after the tsunami of selling hit us after Liberation Day. It should have been a bear market, but it's not like people aren't selling at all. Bank of America's research part puts out this amazing report entitled Equity Client Flow Trends. It gives you a snapshot of what's going on with different kinds of investors within their organization, the institutions, the companies themselves in the form of buybacks, the private clients that say individuals that I think are in their buy under the title Big equity outflows led by institutions and hedge funds. This piece of research says that we just had the biggest week of selling in almost a year. Yet the S and p is up 1.7% hitting new all time high in what's going on. The sixth largest outflows week in history, many since B of A started keeping this data in 2008. I got to tell you that's incredible people. According to the report, this selling was led by institutional clients, the big guys. In fact, the institutions have been net sellers in eight of the last nine weeks. Meanwhile, corporate client buybacks slowed to the lowest Weekly level since October 2023. No up there. So why did the market go up instead of down during this period? The private clients, that's why the individual investors, you, the private clients bought as the market went higher. They've been net buyers in 28 of the last 30 weeks. No bear market there. The individual investor has not lost faith. They practically propelled us the whole way from the post Liberation day lows. They want to own stocks period. Now this is just one survey, but bank of America is probably the best cross section of people to examine. It confirms something that I've come to believe, something I'm planning to talk about when we hold our annual investing club meeting on Friday. The individual investor believes in the stock market as a way of making money. She thinks that stocks represent great real long term value. Just want to flit in and out like the institutions. She wants to use the stock market as a way to save. Right now I even say that the individual investor believes in Trump or at the very least she's not afraid that the Trump administration will somehow blow up the economy. Now that's a very different attitude from the big institutional investors who've been selling. And I think it's only going to get more pronounced. Greater gulf coming in. The one big beautiful bill act that just passed, there's a little talked about provision. Trump accounts a $1,000 benefit for newborns. Newborns. It's automatically created. You're out there doing it. The funds go to diversified stock index. Every child born in the United States between January 1, 2025 and December 31, 2028 is eligible if one parent has valid work. Eligible Social Security number. Parents can add up to 5,000 per year to the fund. And it's worth it because these accounts are tax deferred. No taxes to withdrawal. You want to take advantage of that. Now I'm not saying this amount of money can move the stock market. It can't. But look, individual investors made a fortune buy into the Incredible comeback after the Liberation Day meltdown. It seems to me that these individuals have faith in the future. They're not worried that the Trump trade policy will wreck the economy after this run. It's almost seems kind of self fulfilling, doesn't it? If the market could mount such a comeback after a very difficult moment, which was Liberation Day and against all these institutions, then why not keep buying? It's working. Okay, so now you can quibble over what these people are buying. There's a lot of money going into the high flying stock sticks. Stocks like Palantir and I told you, 50 goes to 100, 100 goes to 200. Palantir, the nuclear power stocks, anything that's tied to bitcoin, Bitcoin at all. I have been adamant that there's way too much speculation. I've been wary because we are very overbought, including tonight. But the gains have been widespread and they appear to be indicative of broader index buying. Again positive and the buying strong enough to offset selling from the so called institutional spot money. It's difficult to speculate without being too political. I do think that the previous president was not perceived as pro stock and or pro capital while President Trump is being seen as very pro business. Except for that one week after Liberation Day. I've always found the Biden observation a little odd because stocks did great under Biden. But this is about perception, not performance. So let's step back from the political world for a second and just address the commitment that individual investors have made to the stock market versus institutions, because that's what really matters. The institutional outflows are indicative of a belief that there's a whole lot going wrong. You have to presume that these money managers saw the big beautiful budget bill as inflationary. They probably hated the name too. Seems so silly. And they think it added trillions to the budget deficit. These guys are serious guys, okay? The national debt just blew it up. Meanwhile the President seems erratic. That Liberation Day was a fiasco to them. And Trump is so inconsistent that it makes owning stocks too risky. If tariff numbers are going to change every day, they seem to, hey, let's put some tariffs on copper and the President's going to bomb Iran while trashing the Fed chief, calling him too late, bad mouth, a crybaby as he did today. Well, these institutional investors think it's nuts to bank on the stock market. It's just too chaotic for them. But the individual investors don't seem to care about any of that. The individual is consistent rather than trading in and out of Stocks, they're using the market as a way to save, to get wealthy. Bonds don't have much attraction. You can't get wealthy with them. Cash is obviously regarded as a loser. So they keep investing money in the market, regardless of what's happening. So is that stupid? I contend that the stupid ones are the institutions. Why? They're too cynical, too concerned with the near term, with getting out ahead of the big one, perhaps not realizing we just had the big one after Liberation Day. The things they seem to care about. Whether the Fed will cut 1 time or 2 time or 3 time or 4 time or no time. That's all inside baseball to the individual investor. The worries about the Fed versus the President, the tradition, the Federal Reserves. Independence are crucial to the people who run the big money. But I think the stuff most goes right over the heads of the individual investors. Those silly press conferences that the Fed chairman has when he should be devoting more time to policy. I'm sure institutions trade throughout the darn thing. The individuals that even though pressures exist, they just want to buy shares of Netflix. They want to own some Nvidia. They think it's interesting to buy some Robinhood. They like what Zuckerberg is doing, so they're going to buy some Metta. Look, there's nothing wrong with the short term trading institutions are doing. But let me give you the bottom line. When I first walked down Wall street, the actual street right there, the Dow Jones Industrial Average stood about a thousand. Now it's 44,000. Perhaps the weight of evidence says you should just keep buying and just stick with it. It's been right for decades. Why should the individuals stop now? Robert in New York.

[Robert]

Robert, Jim, thank you so much for making me money as usual, and I'm liking that partner with you. I made so much money with you, Jim, it's incredible. Okay? And I have a stock that I put some money into it, and I want to talk about this stock in the energy sector, which I'm not crazy about the energy sector. Okay, all right. But this stock, this stock has a great dividend, and you've always taught me dividends are good, right?

[Jim Cramer]

You betcha, Robert.

[Robert]

Well, anyway, so here's the deal, Jim. They've been increasing the dividend for 38 consecutive years, and it's appealing for investors seeking a reliable source of passive income because of the dividend. Now, the stock has been done kind of stale lately, but here's where it gets interesting. The CEO Mike work strategy may pay off big time on the acquisition of Hess, which gains them access, Jim, to 30% interest.

[Jim Cramer]

Robert, you are totally right. I've got to tell you, they get that Hess deal closed and you must own the stock. You know, Jeff and I have been talking to Jeff Marsh, trying to figure out the energy sector. I think you're on to something. Chevron will be a winner. Mike is a winner. I like your call and thank you for saying those nice things about making money. That was terrific. Let's go to Jim in Kentucky. Jim.

[Robert]

Booyah, Jim.

[Jim Cramer]

Booyah, Jim. What's up?

[Robert]

Thank you for everything you do for us home investors. I really appreciate everything. What do you think? Is Crocs a buy, sell or a hold?

[Jim Cramer]

You know what? I'm going to say something. You never hear me say, Crocs and Deckers. I'm giving you two. It's a two for Crocs and Deckers. Too hard. You know what? There's no sin in saying it's too hard. If you like, you know, we were DraftKings and we're saying, look, the Eagles commanders game, that's too hard. No one would say no, you, come on, you have to have an answer. I think that's how you have to look at it. Too hard. Too hard. Let's go. And I, of course, I think the Eagles could win, but that's too hard. So let's go to Dennis in Ohio. Janice.

[Robert]

Hey, good evening, Dennis. How you doing?

[Jim Cramer]

I'm doing all right. How about you?

[Robert]

I woke up, so. It's a good day.

[Jim Cramer]

I'm thinking of barbecuing tonight. You know, it's so hot. But I mean, throw a steak on or something, you know.

[Robert]

There you go. Sounds good.

[Jim Cramer]

Hey, thank you.

[Robert]

Reason I'm calling is I have a large position in Sunoco. Not going to trade or anything, but I'm just curious why it's so volatile. It goes up and down like crazy.

[Jim Cramer]

This thing's been up and down like crazy since it came public. It is ridiculous. They spun it off. They do. The lp, it doesn't have a good float. That's the problem. There's just not enough stock out there. And I wish they could somehow issue more stock. But remember, 6.8% yield. And from what I. I can tell, that's money. Good. All right, listen, everybody. At least as long as I've been around, which is not a while here, it's been evident that over time the market goes higher. So who are we to equip with that? Or do we have to trade in and out and in and out, in and out and miss all the big gains tonight. Take a stock like Carvana doubling in the last few months. How do you size up a high flyer like this one? I'm breaking it down then. Who doesn't like a stock story with a side of Ryan Reynolds? I'm sizing up this recent IPO mountain and I'm going to give you my take on it. And don't forget Flex the artist formerly known as Flex Tribes has ridden the contract manufacturing bull market this year. Doesn't have more room to run. Don't miss my exclusive with the CEO, so stay with Kramer.

[Dell Representative]

Don't miss a second of Mad Money. Follow imkremer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call. 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

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[Dell Representative]

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[Jim Cramer]

So last night we get this call from Gary and Georgia. He wanted to know about what's next for Carvana. That's a digital first used car retailer. Just given the stocks had a huge run this year. I don't I believe in Carvana, not necessarily as a short term trading vehicle, but as a long term investment because I believe in the leadership of CEO Ernie Garcia who's created tremendous amount of value over the years. Been on the show a couple of times. I enjoy the way he thinks. Tonight I want to dig deep. You need to know how to evaluate the incredible stock that's pretty much doubled in the past few months. Of course Cavanaugh tends to be a real wild trader, but it's been an amazing upswing for the past couple of years. I started pounding the table on it back again in mid 2023 when the stock was in the 40s and now it's a 345 and change. But to Gary and George's point, Carver has been particularly strong over the past few months. The last time I gave a big push for Carvana was early April, right after Liberation Day when we were struggling to find something, anything to recommend to you in that hideous tape. Stock was at 181. At the tie, it plunged all the way to 148 within the next few days. I told you this was a very straightforward story. President Trump was talking about slapping extra tariffs on imported cars and I figured that would make Carvana's used cars a lot more competitive. Since then the stock's up 90% and it's up 133% if you caught it at the April lows. Still not quite back to where it peaked in 2021 through $76. It's with and spitting distance of those levels and I think it's only a matter of time before it starts making new all time highs yet again. So yeah, the stock's been red hot and I'm sure there are plenty of people like Gary who did the responsible thing and sold it into Strength of the Way up, but are now wondering if they got out too soon. All right, that's why I want to dig into this move and think about where Carvana is headed over the long haul. Stock went into overdrive May 7 after the company reported a totally blowout quarter. With record retail unit sales up 46%, revenue up 38% and earnings coming in at A$51 per share, Wall street was only looking for 73%. 73 cents. I mean, come on, they more than double what the analysts were collectively expecting. Carvana doesn't give much in the way of explicit forward guidance, saying only that they expect, quote, a sequential increase in both retail units sold and adjusted EBITDA in the second quarter, end quote, which means they expect to hit new quarterly records for those metrics yet again. At the same time, management rolled out some new long term financial targets. They want to sell 3 million retail units per year and an adjusted ebitda margin of 13.53 million, 13.5% within the next five to 10 years. Now, to put that perspective, last year Carvana sold a little more than 4,16,000 vehicles. EBITDA margin of 10.1%. So we're talking about a huge jump in volume and a major uptick in profitability. If they can deliver, maybe they can. Basically, after eight years where management had some short term, short, clear goals that were mostly focused on growth with some acknowledgment of the need for profitability, carbon has got a new set of priorities, more focused on long term unit growth and higher margins. I think they're very much on the right track here. That makes it even more exciting for me. Finally, in its letter to shareholders, which by the way, is a great read, management gave a quick reminder about the scale of the opportunity. I always talk about scale. Listen to this quote. The automotive retail market is enormous, with US consumers purchasing 40 million used vehicles and 16 million new vehicles per year. We believe we are in the very early stages of addressing our opportunity and have a very clear path towards our goals of becoming the largest and most profitable automotive retailer and buying and selling millions of cars per year, end quote. That would work for me. Later on, Carvana punctuates their point saying, quote, this quarter we sold nearly 134,000 cars and generated just shy of 500 million of adjusted EBITDA, and we did this with just 1% of the overall market, end quote. Now that's important. As much as carbon has grown over the years from 859 million in sales 2017 to almost 14 billion last year. Is it incredible they only control just 1% of this extremely fragmented auto sales market? Given that these guys have come up with an incredibly convenient way to sell used cars, I bet they've got a lot more room to take market share now. Ever since the company reported May, the stock's been a juggernaut, even though there hasn't been much company specific news, aside from a whole lot of analyst support. At the same time, I think Carvana's riding a couple of other waves. This company is perceived as a big winner as Wall street became convinced that we're looking at a couple of rate cuts from the Fed by the end of the year. Most people need financing to buy a car and lower rates would sure make it cheaper to borrow, which mean more sales for Carvana. What else? Carver has long been beloved by the younger individual investors who increasingly seem to dominate parts of this market, especially in the last few weeks. These people love going after overextended short sellers. So it doesn't hurt that more than 8% of Carvana's float, meaning the shares that they've traded freely have been sold short. And you know that game, that's the old GameStop game. Plus, remember why I recommend the stock in April. And it wasn't about that book. It wasn't about busted shorts. That's not the way we play it here. As President Trump slaps more tariffs on foreign cars, Carvana's used vehicles start to look a lot more enticing when the White House announced these new 25% tariffs on auto imports from Korea and South Korea and Japan. Well, that was very good news for this company. Now, could the stock pull back here? Of course, it's had a huge run, currently approaching overbought territory. You know, I feel about that. Meanwhile, I don't like the recent tick higher in longer term interest rates. And if that continues in the wake of one big beautiful bill act, well, let me just say that would like that would hurt Carvana because again, most people need to borrow money to buy even a used car and that's priced off the Treasuries. It's also worth noting at this that the father of the CEO, Ernie Garcia the second, also a co founder of Carvana, has sold a lot of stock recently. $270 million worth since late May. That's only a fraction of his total holdings. But in the past his sales have often marked near term tops for the stock, including the middle of last year. But insider sell for many reasons. Historically, Carvana always bounces back. People have told me to short the stock over that guy's insider sell you over endlessly. It's just no, I mean it's not a way to be able to try to make money. You got to have fundamental reasons to short. Here's the bottom line. I like Carvana for the long haul because I'm a true believer. But that doesn't mean that stock will charge endlessly higher without taking some detours. In fact, I hope it gives you a big pullback because that will let you get back into the stock at a very nice discount. Never forget, Carvana's built a best in class business model and management is on track to deliver both strong growth and rising profitability. If you don't own it already, you do have my blessing. Put on a small position here, then you gotta wait for the opportunity to buy some more on weakness. Only mid Money's back after the break.

[Dell Representative]

Coming up, can this IPO climb to the top of the summit? Kramer's digging into media ad company Mountain and seeing if the stock can reach new heights next. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford 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.

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[Jim Cramer]

Now that the IPO market's back in action, I want to circle back to some of the midsize deals that have been kind of lost in the shuffles. Everyone focuses on the core weaves and the Circle Internet group. Take MNTN or Mountain, which is the ad tech company that came public in late May at $16. Now 21. This is a story that came on my radar screen because Ryan Reynolds, the movie star who's also a big time entrepreneur, sold his creative ad agency at MNT and a few years ago he's been the company's chief Creative officer ever since. I trust this man's business acumen. The guy made a fortune when when Mint Mobile, which he owned A chunk of sold itself to T Mobile last year. He's a very good business person. More importantly though mountains an interesting story. They've created this self serve ad platform that helps small medium sized businesses take advantage of the streaming ecosystem. These guys basically make it easy for smaller outfits to run targeted ads. That's the same way they do on a social media site or search platform. So far, small businesses love it because this company makes the process incredibly easy. In fact, Mountains attracting whole new advertisers never bought any kind of TV ad before. As of the end of March, 96% of the customers were new to TV. Hey you know what this is democratizer of connected TV advertising and I really love that. Because this company focuses on the connected TV business, they have a much easier time tracking how effective their ads are after the fact. Mountains quote verified visits Technology links Internet connected devices in a household to the TV which allows them to track consumer behavior. Boy is that worth a lot. So that's how the business works. But what do the numbers look like? Okay, last year Mountain saw a 56% increase in the number of customers first performance TV platform. They also put up 28% revenue growth and in the first quarter of this year that accelerated to 47%. Now I'm a little wary of reading too much of a single quarter, especially the last quarter before a company comes public, but it is very possible that we've got one of my favorite kinds of stories and are accelerating revenue growth our situation here. As for Mount's profitability, okay, not as quite as strong yet, although the company's definitely headed in the right direction. Last year the gross margin improved slightly and their operating margin Improved by over 2500 basis points in the first quarter this year we saw even more margin improvement although the company still losing money on earnings per share basis. Young company still mountains operating cash flow grew by 137% last year, also improved dramatically in the first quarter of this year. So overall the financials are solid with strong and possibly accelerated revenue growth and improve profitability. As I often tell you, companies that are on the cusp of profitability can often give you very big gains because once they turn profitable they tend to put up rapid earnings growth. Lot analysts and get very excited about it put all together. I like mountains business and I like the financials. But what do we do with its newly public stock? When it came public in May, the deal priced at $16 has a nice price was the high end of the proposed price range. Then on own its first day of trading stock open at $21 and then climbed all the way to 26 and change. That's up almost 65% from the deal price. Mountain went on to peak at an intraday high of $32 and change on the second day of trading, but closed that day at $27 and change. Since then it continued to come in, drifting back down to $21 today. Now, I like that kind of action, believe it or not, because that means the speculative fervor is gone. That's what makes it a really interesting story for me. But is $21 a good price for the thing? Clearly, Wall street thinks so. When the post IPO quiet period ended a few weeks ago, an analyst rolled out coverage of a Mountain with the stock at $18. At the time, it earned seven buys or equivalent ratings. And to hold or neutral ratings even for the two neutrals from Morgan Stanley and Citi. Disconcerting because those banks were the lead underwriters. They still slapped price targets at 20 and $22 respectively on the stock. In other words, the most negative analysts following this thing seem to think that mountains trading at the the correct level right Now. Meanwhile, the seven firms with buy ratings, their range is from 23 to 38. So where do I come down on this one? It's a trick. It's really tricky to value a stock like this because the company's not yet profitable. We can't even use an EBITDA multiple because the number isn't high enough to tell us anything useful. That means if we want to take a stab at this when we need to use an enterprise value to sales ratio, that's the market cap plus net debt at the enterprise value divided by sales. Then we need to compare Mountain to ad tech companies that work in a similar space. This is how you do cops, the Trade Desk and a company called Magnite. When we look at the numbers, Mountain seems to have a pretty reasonable valuation with an enterprise value to sales ratio about 5.6. That's slightly more expensive than Magnite, the company that I'm just kind of okay on. But not even half as pricey as the Trade Desk, which has an enterprise value to sales mobile of 12.53. Now, regular viewers know that I am a big fan of the Trade Desk. But you know what? Mountain has faster growth by a pretty wide margin. That's why I think the stock looks pretty attractive at these levels. It trades a little less like Magnite and a little more like the Trade Desk. That could represent some substantial gains. Yes, I'm blessed in this one, here's the bottom line Mountain caught my attention when it came public in May. And after taking a closer look at the story, I think this is a good way to play the ad tech space. Especially now that the stock has pulled back pretty dramatically from its post IPO highs. Obviously this one's still early. I tell you, I want to use it for some of the businesses I'm in. Well, no more as they start to report earnings as a publicly traded company. But for now I like what I see. A very compelling story by Bill in Massachusetts. Bill?

[Robert]

Jim, I'm a club member and I'm very, very happy. The banking is going incredible. Goldman Sachs up $170 a share and Capital One scre along with it, my friend.

[Jim Cramer]

Thanks. Thank you, Bill. Yeah, the capital one is these are buys capital and down today. That's a great opportunity. What's going on?

[Robert]

Thank you. Jim, I had a question for you. AT&T seems to be selling a lot of the copper wiring and, and switching over to fiber. Fiber cable, yes. They said they could do a lot more with it. They were going to expand more into wireless and wireless Internet. I'd love your opinion on.

[Jim Cramer]

Well, it just makes me like even more, Bill. Now remember, I infamously didn't like it 22. So you could say what are you doing like in 28. But I did change my mind at 24. Now here's what you need to know. I read a piece today of research that said that basically this is the best in the industry. And you know what? I like T mobile but boy, this thing is a really good situation. And thank you for calling. Thank you for saying all those nice things about the club. Don't forget annual meeting on Friday. All right, now we're going to go to Ian in North Carolina.

[Robert]

Ian and Jill, how you feeling?

[Jim Cramer]

I feel pretty good, Ian. How about you?

[Robert]

I'm fantastic. Hey, I was really excited when I saw Data Dog get added to the S&P 500. But then you threw some cold water on it this morning on Squawk when you said to sell it. What give.

[Jim Cramer]

Yeah. All right. I am no longer a believer in the enterprise software group. I think that we've been become convinced and we knew this from Nvidia, we knew this from Texas, present XPI from AMD that the enterprise, the enterprise software business which has always had a very high multiple has kind of stalled out. And I think that data does part of it. I'm tired of companies that give me observability into my operation. There's too Many of them. I don't want to do it anymore. I don't want to see them anymore. And that's why do I like the company. They're good guys. But that's not what I want to recommend that anymore. But thank you for seeing that. That's what I was saying this morning because it is important. All right. Mountain caught my attention when it came public. I still think it's Pelley story. Another name to watch in this newly booming IPO market. Why not buy Goldman Sachs? They're very much involved and was down today. All right, much more money, including my exclusive with Flex. The company starting to get some attention from data center bulls. I'm hearing house position in the space with the CEO. Then President Trump announced a host of tariff updates yesterday and the ones that went two key countries that help lift our American car companies. I'm going to be on my thoughts and a plan of action. And oil calls rapid fire, tonight's edition of the Lighting Round. So stay with Kramer. This year we've seen a quiet bull market in the contract manufacturing space. The stocks like J Bill, I talk about them a lot. Celeste got San Mina and then Flex, which haven't talked about a long time. All soaring Wall Street's betting that these outsourced manufacturers will become more important for their customers in the era of high tariffs where the White House is constantly scrutinizing everybody's manufacturing footprint. But tonight I want to focus on Flex. Now, this is a business formerly known as Flex Trucks. Until its rebrand nearly a decade ago, we used to have them all the time. Lately, Fox have getting a lot of attention because of its exposure to the data center. They're heavily involved in IT integration as well as power and cooling. Most of what you need to set up these big warehouses full of servers. And that's why the stock is up more than 33% year to date, 70% over the past 12 months. So can it keep running? Let's check in with Ravati at Viti. She is the CEO of Flex. To get a better sense of what's going on in the industry. Mr. Bean, welcome to Man Money.

[Ravati at Flex]

Jim, thank you for having me. And congratulations on your 20 years.

[Jim Cramer]

Thank you so much. That's very kind of you. Now, your company is a vastly changed company from the Flex that I know. The Flex that I know used to build at scale, some footwear, gaming consoles, smart watches. This is a much more intellectually powerful company and it's not like the other contract manufacturers either. So because this is your first time on the show. I'd like you to give us the company overview. Knowing. Yes, that is your quiet period. So we're not going to grill you on how you're doing specifically.

[Ravati at Flex]

Yes. Thanks, Jim. So first is, I've been in this role for six years, this is my seventh year. So thank you for having me on the show. So Flex is a very different company today and has really been changing its portfolio over the last six, seven years. I would say. 75% of our business today is still falls into the contract manufacturing space where we make really high end products for markets like industrial, automotive, high end consumer products and health care. And in this we not only make the product, but we manufacture very complex, sophisticated supply chains for our customers. And we do this across the globe, whether it is in North America or Europe or in Asia. Everywhere in North America as an example, we have around 16 million square feet of manufacturing space. But what we excel in in the contract manufacturing space is very high end, very difficult to make products and we make that end to end. And you know very well in the last six years, manufacturing in these complex supply chain times is very, very difficult. And Flex excels in that. So that's 75% of our portfolio. But what we have been doing in the last six years is building the remaining 25% of our portfolio which is in the data center and utility space. And that this year is estimated to be around six and a half billion in revenue and it's growing at 35%. So sizable. But what makes it unique, Jim, is not the size, not the growth rate. You know very well, and you talk about this in your show all the time, is what is coming together is compute and power is coming together. So what is needed for compute is a lot of power. So what Flex does is really power all the compute chips. So we call that our embedded power products, our own ip, our own product. We start working three to five years ahead with silicon providers, with hyperscalers. Then we build all the power that goes around in the data center, all the way to the substation. Again, our own product products. We did that through a series of acquisitions over the last three years. So as Compute needs more and more power, it also needs more and more cooling. And we bought our own cooling company. So we also do cooling associated with it. So what this is what makes Flex really unique. It's the only company that puts power, that puts cooling and puts all the it integration together in one place. And Jim, that is going to be the future.

[Jim Cramer]

Absolutely. I mean, to me your background is are from Eaton the division that you worked is why we bought that stock for our charitable trust. You've got the bona fides that are incredible. I think you should. We do want to point out that all the hyperscalers use you, that this is not just as well. You don't have one client, you're trying to get the others. Everybody uses you. And in many ways I like vertif. Well, you're vertive with other things that are necessary. So now I know there are other, other verticals and there's a health care vertical, which is an auto. Those are all influx. But what it sounds like that you are bringing is almost soup the nuts to anybody who wants to build a data center.

[Ravati at Flex]

That's correct. Soup the nuts on anybody who wants to have infrastructure for the data center. And really what's important is pulling this compute and power together and cooling together. So not many people are doing that. People either build the power or they build the cooling or they build the compute. They're not putting all of that together. And in the future, how this whole white space, gray space works between IT integration and power integration is going to be super important. So we're working with customers 2, 3, 5 years ahead before this technology hits the market on how to put all of this together so you use the space correctly and then use all the efficiencies correctly. Because it's all about power efficiency today, Jim. And you talk about this on your call all the time. So my background of running Eaton's electrical business when I came to Flex and this was much before people started talking about Nvidia. And everything that you talk about was, someday compute's gonna need so much power, we're gonna find it hard to keep up with. And I was like, flex, does it compute? And we do a little bit of power on the chip side, but putting all this together so they can work side by side seamlessly was really important. And today that technology is very fragmented even today at customers and at us. So we work with all the hyperscalers, we work with the silicon providers, and we work with all the colos to put all these three technologies together. Right now, business is doing fantastically well, growing at 35% at such scale of six and a half billion estimated this year is pretty significant. So we're very excited about what the.

[Jim Cramer]

Future holds for many people. People in the news, of course, are saying, I don't know how much it will be to make something in Mexico. I don't know much be to make something in Europe. You're everywhere, you're everywhere your customers want you. What are you advising customers? When they say, you know what, I see you've got that giant manufacturing footprint in Mexico. I'm concerned what happens with Mexico. What kind of, what kind of advice can you give them?

[Ravati at Flex]

Yeah. So and Jim, we have square footage and footprint everywhere in the world, right? So we have footprint in Mexico, we have a very expanding footprint here in the US the same in Europe, the same in Asia. So customers have been coming to us the last five, six years as we are going through everything from geopolitics to COVID pandemic to supply chain resiliency. And we've been working with them to build for the region in the region. This has been an ongoing trend from kind of Trump tariff 1.0. So it's not a new thing. I'll give you a little statistic, Jim. I'd say in the last five years, if you think about our supply chain, what we use here in North America, for North America, that has gone from 30% sourced in the region to 45% sourced in the region in the last five years, all that has been able to move here, my prediction is over the next five you will see that become 75%. They'll always be a trail, but a pretty significant portion of what you need can be made in the region for the region. And we work with our customers to help them and advise them on how do you move things, how do you start it up from scratch, how do you build an end to end supply chain. And so it's not a new thing. I would say it started five years ago and it continues still today. But our U.S. square footage is growing pretty significantly. Jim. We just announced in Dallas a half a million square feet new facility to build just for power, 500 new jobs that we are hiring into, builds the traditional switchgear products that you know very well.

[Jim Cramer]

Right.

[Ravati at Flex]

That we're going to build right here in Dallas and expanding here in the.

[Jim Cramer]

U.S. all right, well look, we want you to come back on and talk about all these great changes because it is quite exciting. You've changed this Flex Tronics into Flax and I like what I hear and I want to thank Ravity AD vt. I'm going to get that right. And thank you for coming on the show. Congratulations on, on the, let's say the conversion to a very high end model that makes me really want to own the stock versus what used to be what I said, oh good, they can do it better than the other guy that's you're doing Very, very, very different things. So I want to thank you for coming on the show and it's really great to talk to you.

[Ravati at Flex]

Thanks for having me, Jim.

[Jim Cramer]

Absolutely. Mad Mike's back here for the break.

[Dell Representative]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next. It is time. It's time for the lightning round of Apple Corner I and then the lightning round is over. Are you ready? Steve Decker on the way. We came to the. Let's start with Stafford in California. Stafford.

[Robert]

Hey, Jim, how are you today?

[Jim Cramer]

Hi, I'm having a good day. How about you staff?

[Robert]

I'm okay, thanks. Hey, I want to know what your thoughts on WABTEC are.

[Jim Cramer]

You know, believe it or not, I've actually done a lot of work on this one and it won't quit. Every time I think it'll quit, it won't. It's a really good company. Let's go to Mark in Pennsylvania. Mark.

[Robert]

Hey, Jim, how you doing?

[Jim Cramer]

I'm doing well, Mark, how about you?

[Robert]

Good, good, thanks. Hey, thanks for taking my call. I've been a long time fan of your show.

[Jim Cramer]

Thank you. Thank you.

[Robert]

In January, I just want to let you give you a little bit of information. In January, I purchased Robinhood stock. Fortunately, I've had a pretty good increase. I read they're continuing to invest in Europe and continue to make it easy for their customers to do business business with them. Question to you. Do you see Robin Hood continuing to grow in the next.

[Jim Cramer]

Yeah, look, it's become kind of a meme stuff, but you know, Vlad. Is Vlad here? I saw him on like the two, the one and the four, the six, the eight. Vlad's on a lot. But I don't blame him one bit. I have the like Vlad, so does my wife, by the way. We like Vlad. We've liked him ever since he was a kid. And I've been a big, big believer in Robin for a very long time. I'm not changing my view. Let's go to Leanne in Hawaii. Leanne. Aloha. Jim, thanks for taking my call and.

[Robert]

Thanks for all your help throughout the.

[Jim Cramer]

Years with the rise of bitcoin and some say maybe 200,000 at the end of the year.

[Robert]

What kind of effect will this be on the mining companies such as Riot Platform?

[Jim Cramer]

You know, I have been a believer, actually had someone, I have very, very big debate this weekend about whether you should just own bitcoin or you should own riot platforms or own strategy. And I still come back to say own Bitcoin I don't need leverage. I don't need trickiness. It's like I prefer gold to the gold miners. It really is the same thing. Own Bitcoin. I want to go to Bob in Florida. Bob, Booyah.

[Robert]

Professor Kramer.

[Jim Cramer]

Oh, thank you for giving me tenure. There you go.

[Robert]

Jim, I'm a longtime viewer and a first time caller. I actually started watching you on TV when you were with your good friend Larry Cuttle. Jim, you've actually made, you've made investing actually fun to watch.

[Jim Cramer]

Well, I want to democratize it. I have to make it fun. Go ahead.

[Robert]

My stock today is Digital Bridge.

[Jim Cramer]

I've studied this company for a very long time and I have to conclude that it's just expensive. Okay. And I don't want you in it. I bet you had the. I think I love that you've been watching for that long. But I cannot recommend Digital Bridge. I am sorry. Let's go to Claire. Oh, Claire Bear in Colorado. Claire. Hi Jim. Thank you for my call. Of course. I've been watching Lumber Day. Simple flb. Keep watching. No pull trigger. Why? Because I do not like the oil stocks. I don't need them, don't want them and that's it. And that legend of conclusion of the Lightning Round.

[Dell Representative]

The Lightning round is sponsored by Charles Schwab. Coming up, can tariffs help accelerate U.S. automakers? Kramer is giving you his take on how companies like Ford and GM could benefit from the latest tariff announcements.

[Jim Cramer]

Next. Sometimes when it comes to to President Trump's tariffs, you have to think outside the box. We know that Japanese and South Korean automakers will have to put through huge price increases on the cars. The export in order to cover the cost of the new 25% tariff is serious business. Imitate eat a lot of this. The administration feels that Japan and South Korea are beholden to us. Yet they don't buy enough from America of any true importance. At least. So now it's time to pay the pipe. You might think that these Japanese and Korean automakers are protecting themselves by building lots of factories here in the United States. But the White House views these plants as nothing more than assembly facilities. The real guts, the value added stuff of the car gets made elsewhere. So they are tariffing the guts to even though they aren't made in the usa. Plus, as we've learned from Apple, if the Trump administration has you in its crosshairs, no amount of investments in America will save you. Import the guts, tax the guts. That said, Wall street comes to expect nothing radical from these tariffs after everybody freaked out about Liberation Day. Well see the postponer walk back the most frightening import duties. So now we keep hearing that it's all bluster. If you believe in conventional wisdom, these big headlines are all mirage. But even if that's generally true, I don't think it's the same with Japan and South Korea. We have so many military bases there, both countries that the President. President thinks they're free riders. Okay, so he's hitting him with a 25% tariff. I believe these auto tariffs are real. They'll change the landscape even if Japan and Korea start putting in giant orders for natural gas turbines and airplanes. How can I tell? It's easy. I look at the stock of Ford Motor. This stock would have been moribund for ages for a host of reasons. For warranty issues. Electric vehicles slowdown to too many white collar workers is suddenly the move. Ford's the biggest winner because its cars and trucks have the most content made in the US even more than General Motors. Although GM's a winner from these tariffs too. I bet Ford stock could mimic the stock of Whirlpool, which is now being protected via tariffs on steel from the excessive dumping of gas. Korean and Chinese imports that undercut Whirlpool's prices significantly. I believe that these competitors will be forced to build more product here if they want a shot at keeping their voluminous market share. Whirlpool stock was hit pretty hard on deliberation day. Made no sense flowing from 90 to $75 one month later. But as investors became fully aware of the ramifications here, Whirlpool is catapulted to $107 and change just over two months later. I think it's got more room to run. It makes the best, but it's been undercut forever. Will the tariffs on cars from Japan and Korea be inflationary? So far, these companies have done a mix of eating the tariffs and passing them on. It's definitely not helpful on the inflation front, but probably not enough to cause a serious problem. More important, it's great for the American automakers. We can get in the weeds of whether or not this is good policy. I think it's got plenty of justification. But whether you like it or not, it is the policy. Even if you don't believe President Trump will follow through in any other tariffs, he'll definitely follow through with the ones on Japan and Korea. Which means the stocks of General Motors and especially Ford are headed higher. Alex says Horseman summer problems. You right here, Money. I'm Jim Grammer. See you tomorrow.

[Hotels.com Representative]

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 strategy, but only as an expression of his opinions. 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 Tipping culture is out of control. Yesterday I tipped someone just for handing me a napkin. So when hotels.com gives me up to 20% off for being a member, I finally get tipped.

[Ravati at Flex]

And you know what?

[Hotels.com Representative]

It feels good. Hotels.com members save up to 20% off at hundreds of thousands of hotels.