Mad Money w/ Jim Cramer - Episode Summary (August 12, 2025)

Hosted by CNBC, "Mad Money" with Jim Cramer dives deep into the complexities of Wall Street, offering listeners actionable insights to navigate the investment landscape. In the August 12, 2025 episode, Cramer tackles market pessimism, explores the burgeoning field of quantum computing, dissects recent developments in the travel sector, and delves into the dynamic world of sports betting data. Below is a detailed summary capturing all key discussions, insights, and conclusions from the episode.

1. Market Pessimism and Investor Behavior

Timestamp: [01:25] – [09:26]

Jim Cramer opens the episode by addressing the prevailing wave of pessimism among investors, exacerbated by negative media narratives. He emphasizes the importance of the classic investment mantra: "Stay the course."

Key Points:

• Missed Opportunities: Cramer highlights how negative sentiment led investors to sell, causing them to miss out on significant market gains. For instance, he references a day when The Dow surged by 4484 points, and the Nasdaq saw jumps of 1.13% and 1.39%, yet many remained on the sidelines.

• Media Influence: A significant portion of the pessimism stems from media exaggerations concerning tariffs and economic indicators. Cramer criticizes headlines equating current tariffs to those before the Great Depression, arguing that such comparisons are fear-mongering tactics to drive engagement.

• Government Actions: He discusses the administration's imposition of a 50% tariff on India, questioning its effectiveness and pointing out the underlying trade deficits. Cramer illustrates how contradictory government actions, such as fluctuating stances on company leadership, create instability but have minimal direct impact on stock prices.

Notable Quote:

"Capped by negative bias before that positive CPI, people end up missing days like this one with The Dow gaining 4484 points, the Nasdaq climbed 1.13% and the Nasdaq jumped 1.39%."
— Jim Cramer [03:40]

2. Interview with Dr. Barris – D Wave Quantum

Timestamp: [14:54] – [22:38]

In a compelling segment, Jim Cramer interviews Dr. Barris, CEO of D Wave Quantum, shedding light on the company's advancements and the future of quantum computing.

Key Discussion Points:

• Commercial Quantum Computing: Dr. Barris emphasizes that D Wave is pioneering true commercial quantum computing, with clients like NTT, Docomo, and MasterCard integrating their systems into daily operations. This marks a shift from theoretical research to practical business applications.

• Optimization Solutions: The company's quantum computers excel in solving complex optimization problems across various industries, including energy grid optimization for companies like GE Vernova and enhancing loyalty rewards programs for consumer businesses.

• Energy Efficiency and Blockchain: Dr. Barris highlights a breakthrough where D Wave's quantum systems can solve material simulation problems exponentially faster and more energy-efficiently than classical computers. This advancement has implications for blockchain technology, potentially reducing Bitcoin's energy consumption by 1000 times through a quantum-proof proof of work system.

• Future Prospects: While quantum computing is still in its nascent stages, Dr. Barris is optimistic about its rapid advancement and broader impact, particularly in AI and energy sectors.

Notable Quotes:

"Our quantum computers today are really good at solving hard business optimization problems."
— Dr. Barris [16:05]

"Quantum proof of work as the underlying computation for cryptocurrency... we would consume 1000 times less power."
— Dr. Barris [18:20]

"I want to find out what's going on. If this is technology whose time has come, then it makes sense."
— Jim Cramer [21:04]

3. Airbnb vs. Expedia – A Tale of Two Travel Stocks

Timestamp: [22:52] – [42:48]

Jim Cramer delves into the contrasting performances of two major players in the travel industry: Airbnb and Expedia. Analyzing their recent earnings reports, Cramer provides insights into their market valuations, business strategies, and future outlooks.

Airbnb:

• Earnings Overview: Airbnb reported a solid quarter with gross bookings up 11% year-over-year to $23.5 billion and revenue growing 13% year-over-year. Earnings per share increased by 20%, surpassing expectations.

• Market Reaction: Despite strong earnings, Airbnb's stock plummeted by 8% the following day. The primary culprit was its cautious revenue guidance and concerns over future growth initiatives.

• Valuation Concerns: Trading at nearly 29 times this year's earnings estimates, Airbnb is one of the more richly valued stocks in the sector. The high multiple sets elevated expectations, and the muted guidance led to investor disappointment.

Expedia:

• Earnings Overview: Expedia delivered a robust quarter with gross bookings up 5% and revenue up 6% year-over-year. EBITDA surged by 16%, and earnings per share exceeded estimates by 27%, growing 21%.

• Market Reaction: In stark contrast to Airbnb, Expedia's stock surged by 4% post-earnings, buoyed by strong performance and optimistic guidance.

• Business Strategy: Expedia's diversified business model, particularly its B2B division, which saw gross bookings grow 17% year-over-year, provides a stable growth foundation. This division accounts for the majority of Expedia's recent successes, allowing for better margins and forecast improvements.

• Valuation Advantage: Trading at around 14 times earnings, Expedia presents a more attractive valuation compared to Airbnb, making it a preferred choice for value-conscious investors.

Key Insights:

• Business Model Diversification: Expedia's strong B2B segment offers a significant growth engine, unlike Airbnb, which remains heavily reliant on its consumer-focused model.

• Investment Recommendation: Cramer advises investors to favor Expedia over Airbnb due to its clearer focus on value, diversified revenue streams, and more reasonable valuation.

Notable Quotes:

"At the end of the day, I think Expedia is thriving because of its laser focus on value, while Airbnb is making a bunch of big bets that may or may not pay off in this environment."
— Jim Cramer [31:50]

"Airbnb is trading at almost 29 times this year's earnings estimates... Expedia sells for only 14 times earnings."
— Jim Cramer [35:00]

4. Interview with Carson Kroll – Sport Radar

Timestamp: [34:08] – [43:37]

Jim Cramer engages with Carson Kroll, CEO of Sport Radar, to explore the intersection of sports data and the booming sports betting industry.

Key Discussion Points:

• Business Model: Sport Radar operates as a B2B platform, providing essential data and technology to over 900 sports betting clients globally and around 2,000 media clients. Their offerings include real-time data integration, enhancing the live betting experience for operators and fans alike.

• Live Betting Innovations: The company is at the forefront of live betting trends, offering tools that allow for intra-game betting based on real-time events and data analytics. This increases user engagement and provides sportsbooks with dynamic pricing models.

• Sports Integrity Services: Sport Radar is committed to maintaining the integrity of sports by monitoring for discrepancies and potential manipulations using advanced AI and machine learning models. This ensures fair play and trust within the betting ecosystem.

• Growth Prospects: With live betting constituting only 10% of their revenue, Sport Radar sees substantial growth potential in expanding their live betting offerings across various sports, including WNBA and table tennis.

• Market Position: Cramer highlights Sport Radar's pivotal role in the sports betting industry, positioning it as a critical infrastructure provider rather than a front-facing brand.

Notable Quotes:

"We are a technology business. We collect sport information, we collect fan information and we collect liquidity. We run a platform business with this."
— Carson Kroll [34:34]

"Live betting is 90% of our revenue is pretty much 10% and from a betting proportion, you know that's different. So you see that there is a huge runway for us to create more value for the clients with the Live product."
— Carson Kroll [35:16]

"I think sports betting is more honest with you, sir."
— Carson Kroll [39:33]

5. Lightning Round: Rapid Fire Stock Picks and Recommendations

Timestamp: [41:07] – [43:37]

In the fast-paced Lightning Round, Jim Cramer responds to calls from listeners, offering quick stock recommendations and insights.

Highlights:

• Carnival and Royal Caribbean: Cramer advises against waiting to invest in cruise lines like Carnival and Royal Caribbean, suggesting a phased investment approach to mitigate volatility.

• Joby Aviation: He reiterates his recommendation for Joby Aviation, emphasizing the company's potential post-FAA certification and strategic acquisitions.

• Equinix: Cramer dismisses Equinix as too expensive, advising listeners to skip it unless there's a significant price drop.

• Rapid Fire Stocks: Brief mentions are made of other stocks, including Palantir Technologies and Cern, with varying degrees of enthusiasm and caution.

Notable Quotes:

"Airbnb is making a lot of bets and it's not clear with or which ones are going to pay off. That's why I prefer to stick with the tried and true. I say stick with Expedia."
— Jim Cramer [42:13]

"I'm sticking with Expedia. Much more mad money, including my sweet Sport Radar."
— Jim Cramer [43:16]

6. Technology Spotlight: Cern AI and Voice Recognition

Timestamp: [41:07] – [48:08]

Towards the episode's conclusion, Cramer shifts focus to emerging technologies in voice recognition, spotlighting Cern AI—a company advancing beyond current virtual assistants like Alexa and Siri.

Key Insights:

• Superior Voice Technology: Cern AI's Surge platform offers more responsive and interactive voice recognition, capable of handling interruptions and integrating with visual data for a seamless user experience.

• Automotive Integration: With over 500 million cars utilizing their technology, Cern AI is well-positioned in the automotive sector, providing essential voice services that enhance driver safety and convenience.

• Market Potential: Priced at $472 million, Cern AI presents a significant growth opportunity, especially as it pushes into cloud services and broadens its device integration capabilities.

• Acquisition Potential: Cramer speculates on potential acquisition interest from tech giants like Apple or Amazon, given Cern AI's advanced capabilities and strategic positioning.

Notable Quotes:

"What matters, though, is that Trump was furious so he fired the head of the Bureau of Labor Statistics. Oh my. The journalists blew back."
— Jim Cramer [06:00]

"Cern's AI had to say... Cern's could respond, interact, and, unlike Alexa, handle interruptions with aplomb."
— Jim Cramer [46:15]

7. Final Thoughts and Disclaimers

Timestamp: [47:28] – [48:08]

Jim Cramer wraps up the episode with personal anecdotes about technology frustrations and underscores the importance of innovative solutions like those offered by Cern AI. He reiterates that all opinions expressed are his own and advises listeners to consider the information thoughtfully before making investment decisions.

Notable Quote:

"All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates."
— Jim Cramer [47:28]

Conclusion

The August 12, 2025 episode of "Mad Money" provides listeners with a multifaceted view of the current market landscape, highlighting the influence of media on investor behavior, the promising advancements in quantum computing, the divergent paths of major travel companies, and the intricate dynamics of sports betting data. Through insightful interviews and robust analysis, Jim Cramer equips investors with the knowledge to make informed decisions amidst market volatility and technological innovation.