Mad Money w/ Jim Cramer – Episode Summary (8/25/25)

Podcast: Mad Money w/ Jim Cramer
Air Date: August 25, 2025
Host: Jim Cramer (CNBC)
Episode Focus: Navigating current Wall Street narratives, Q3 tech rotation fears, sector analysis, listener questions, and in-depth insights on recent earnings, with a special focus on investment discipline.

Episode Overview

On this episode, Jim Cramer tackles widespread market skepticism about mega-cap tech stocks and delves into the persistent rotation narrative from tech to other sectors. He advises listeners on the pitfalls of short-term trading based on seasonal stories, underscores the value of holding quality growth names, and provides deep dives into Home Depot, CVS Health, and Pitney Bowes as key case studies. The episode features Cramer’s hallmark Lightning Round, and a detailed interview with new Pitney Bowes CEO Kurt Wolfe, plus analysis on the government’s recent investment move in Intel.

Key Discussion Points & Insights

1. The Tech Rotation Narrative: Why Cramer Isn’t Buying It

• Seasonal Tech Fear-mongering:
  Cramer addresses headlines claiming tech is losing steam and a rotation into small caps is due. He notes investors are “worried about the need to dump the mega cap tech stocks because everyone else is dumping them” ([00:56]).
• Trading on Seasonal Patterns:
  He admits to having played this game as a hedge fund manager, but says “trading because others are trading” is risky and difficult to execute:

  “You are not a hedge fund manager. And even if you are, I disagree now with the strategy, even as I adopted it... When you dump these tremendous growth stocks now, you have to figure out when you can get back in later. And that is much harder than it looks.” ([02:11])

• Cautionary Tale – Alphabet Sale:
  Cramer recounts selling Alphabet on news worries—only to see it pop 30 points, highlighting how “stories like the one in today’s Journal are the sotto voce enemy because they're based on seasonal factors that you have no control over…” ([03:48])

Notable Quote:

“The inability to reliably get back in is one of the reasons why I always say to own Apple, don’t trade it. Apple’s a great example.” ([04:23])

2. Why "Owning, Not Trading" Wins – Lessons from Apple, Nvidia, and More

• Apple as a Hold-Forever Stock:
  Cramer describes a vacation scene where everyone is taking photos with iPhones—proof, in his words, that the iPhone’s ubiquity justifies holding Apple through thick and thin ([05:06]).
• AI Spending: Nvidia & The Hardware Shift:
  He rebuts skeptics doubting future Nvidia demand, arguing, “Just as software ate hardware, now AI is eating software... You can’t have generative AI without Nvidia.” ([06:47])
• Missed Timings & Investor Psychology:
  Markets aren’t tired or sleepy, he claims—“Stocks aren’t people. They aren’t animals. They don’t get sleepy. They don’t go down for nappies. The concept is per se ridiculous.” ([08:30])

Notable Advice:

“You made that money by sticking with them through thick and thin, not by trading in and out... you’ll be leaving the fortune—your fortune—on the table.” ([09:09])

3. Lightning Round & Listener Q&A

Key Calls:

• Salesforce:

  “Enterprise software... the long knives are out. I need to see the quarter before I tell you.” ([10:00])

• Home Depot:
  (Detailed next section.)
• UNH (UnitedHealth):

  “Buffett buying doesn’t influence me. I want to hear from the company. They need to come on and answer tough questions.” ([28:24])

• Robinhood:

  “Extraordinary move... let it calm down a little, but don’t forget it’s an upstock.” ([39:19])

• Palantir:

  “Monster call. Thank you for all you do.” ([39:45])

• Power Industry:

  “Great industrial energy infrastructure stock... wish I owned for the trust. Wow, great call.” ([40:09])

• Apollo:

  “You just sold me on Apollo. I love the case... cheap stock, smart company, I’m a believer.” ([40:46])

• Ouster:

  “Lidar play... always come back to Tesla. I always will.” ([41:41])

4. Deep Dive: Home Depot Earnings & Long-Term View

Nuanced Earnings Strength ([13:11])

• Headline Miss, Underlying Strength:
  Home Depot’s Q2 revenue and earnings missed expectations, yet shares climbed 3% the day of the release.
  • Momentum carried from 2024 into 2025; “strongest performance in over two years.”
  • Poor weather dampened spring sales, but month-over-month cadence improved sharply by mid-summer.

    “Cadence... hedge funds love to hear cadence because a stronger month-to-month pace can be extrapolated...” ([14:36])

• Pro Channel Growth:
  12 of 16 merchandising categories posted gains; professional business is 55% of sales, compared to 30% at Lowe’s.
  • Distribution center acquisitions (SRS/GMS) boosting job-site delivery capacity and returns.
  • Management: “Distribution centers are ‘generating higher returns on invested capital than an equivalent Home Depot store would at this point in its lifecycle.’” ([16:58])
• Outlook & Macro Factors:
  Lower interest rates (if enacted) would be a big tailwind for remodeling—and thus for Home Depot.
  • 50% of Home Depot’s goods are sourced domestically, cushioning tariff risk.

Bottom Line:

“Despite the softer headline numbers, the details we got from Home Depot show a business gaining strength... You ain’t seen nothing yet from Home Depot.” ([19:59])

5. Sector Focus: CVS Health – The Surprise Standout ([21:06])

• Best Performer in a Bad Sector:
  While most health care stocks languish, CVS is up 58% YTD—thanks to a “major transformation.”
• Why?
  • Last major retail rival Walgreens is retreating, Rite Aid is bankrupt—CVS is “the last man standing.”
  • Managed care business (Aetna) has rebounded after last year’s pain.
  • Q2 saw nearly 12% revenue growth, 40% jump in operating income for health insurance; pharmacy business up 18% Y/Y; Caremark up 10%.
  • Company raised full-year guidance and pays a “bountiful 3.7% yield.”
  • Still trades at a cheap 11x earnings.

    “Has proven to be a port in storm for health care investors... fixing its most problematic business, managed care, and seeing real strength in other parts... Buy CVS.” ([27:29])

6. CEO Interview: Pitney Bowes Turnaround with Kurt Wolfe ([30:44])

Key Highlights:

• Personal Skin in the Game:
  Wolfe: “I have virtually 100% of my own personal net worth invested in this company, just like I did with GameStop... We look for companies that are significantly undervalued and what we typically find is good businesses that are just being poorly managed.” ([31:03])
• Finance & Execution:
  In two years, interest on borrowing dropped from 13% to ~4%; free cash flow projected to rise to $350M this year (from $23M in 2023); share price moved from low $3s to over $12.
• Business Model:
  Presort business dominant in a slowly declining mail market, but still grew 11/12 years.
  Sentech business (mailing meters, shipping software, a bank for small businesses) has “hidden gem” aspects—a bank with 7% net interest margin, business loans for SMB clients.
• Strategic Focus:
  Currently focused on “blocking and tackling”—efficiency, operational discipline, divestitures, and turnaround basics before growth or acquisitions.
• Meme Stock Concern:
  “When we became a Meme stock [at GameStop], it completely changed what we were doing. That wasn’t my skill set... not what this is about. This is about business.” ([36:15])

CEO Takeaway:

“Right now... we need to fix our business… It’ll be a lot easier to grow when we’re back.” ([37:23])

7. In Focus: Government’s 10% Stake in Intel ([42:32])

• Cramer’s View:
  The White House’s move is unorthodox, but necessary; Intel desperately needed capital after years of mismanagement and overreaching on chip foundries.
  • “President Trump’s actually using money from the CHIPS act that was already earmarked for Intel... We need a healthy, viable Intel because we can’t simply rely on Taiwan Semiconductor.” ([42:32])
• National Security Angle:
  Analogy to past government bailouts (Chrysler, TARP):

  “If it’s a national security issue and one of our important companies might be failing, you better believe it’s going to get get bailed out. Doesn’t matter if the President, Democrat or Republican.” ([45:21])

• Outcome:
  Cramer expects new CEO Lib Bhutan will restore Intel to prominence; government, public, and shareholders all stand to benefit.

Notable Quotes & Memorable Moments

• On Market Narratives:

  “Get out before everyone else gets out. Now that’s some genuine Wall Street homespun wisdom.” ([01:19])

• On Seasonal Trading:

  “Stocks aren’t people. They aren’t animals. They don’t get sleepy. They don’t go down for nappies. The concept is per se ridiculous.” ([08:30])

• On Small-Cap Mania:

  “You chow down on ETF and bet that others will do the same. Historically not really a great strategy. Just another greater fool thing.” ([08:17])

• On CVS’ Success:

  “It is good to be the last man standing.” ([25:45])

• Pitney Bowes on Operational Excellence:

  “A core business tenant is in the trenches. It’s getting the blocking and tackling right, and that’s what we need to do at Pitney Bowes.” ([37:23])

• Lightning Round Banter:

  “Quadruple. That’s a lot of booyahs.” ([42:31]) “Palantir? Monster call. Thank you for all you do.” ([39:45])

Timestamps for Major Segments

• [00:56] – Main Theme: Tech Sentiment, Rotation Narratives
• [04:23] – Case for “Owning, Not Trading” Apple & Tech
• [09:52] – Listener Q&A: Salesforce and other stock picks
• [13:11] – Deep Dive: Home Depot Earnings, Strategy, Cyclicality
• [21:06] – Deep Dive: CVS Health’s Performance Amid Sector Rout
• [28:10] – Listener Q&A: UNH (UnitedHealth)
• [30:44] – Interview: Pitney Bowes CEO Kurt Wolfe on Turnaround
• [39:19 to 41:41] – Lightning Round: Rapid-fire stock opinions
• [42:32] – Analysis: Intel’s Government Bailout & National Security

Conclusion

Cramer’s message for the episode is clear: don’t get swept up in Wall Street’s seasonal rush to trade in and out of dominant tech names purely on cyclical headlines—“own, don’t trade” remains his mantra. Through case studies like Home Depot and CVS, and in-depth interviews such as with Pitney Bowes’ turnaround CEO, the episode underscores disciplined, informed investing and skepticism toward “greater fool” narratives. The show ends with a strong defense of government intervention in Intel as smart policy, not politics.

For more actionable insights, listen to the full episode or follow Jim Cramer on social media and at CNBC Investing Club for daily updates.