Mad Money w/ Jim Cramer 8/6/25

Summary

Mad Money with Jim Cramer – Episode Summary (August 6, 2025)

Host: Jim Cramer
Podcast: Mad Money
Release Date: August 6, 2025
Description: "Mad Money" offers listeners an inside look into Wall Street's dynamics, featuring Jim Cramer's passionate insights and the popular Lightning Round where he shares buy, sell, and hold recommendations.

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1. Market Overview and Current Trends

Jim Cramer opens the episode by expressing his concerns about the current stock market dynamics. He highlights the paradox of expensive stocks that seem overvalued rising despite poor fundamentals, while solid companies experience neglect or declines even when they report positive earnings.

Jim Cramer [00:23]: "This market is driving the best investors I know crazy, and I know why. Incredibly expensive stocks that shouldn't go up endlessly... Stocks that are heavily shorted just steamroll the short sellers like an M1 Abrams tank."

He points out the volatility driven by individual stock narratives rather than broad market movements, citing discrepancies in the performance of major indices:

• Dow Jones: +81 points
• S&P 500: +0.737%
• Nasdaq: +1.21%

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2. Deep Dive into Specific Stocks

Palantir Technologies (PLTR):
Cramer praises Palantir as a "juggernaut meme stock" driven by CEO Alex Karp’s effective leadership and strong financial performance.

Jim Cramer [01:10]: "Palantir... part sledgehammer, part laser, part nuclear bomb... this guy is crushing it like no other."

He shares an anecdote about a friend betting against Palantir using put options, emphasizing the stock's resilience against short-selling.

Amazon (AMZN):
Cramer discusses Amazon's robust retail performance contrasted with its Amazon Web Services (AWS) division. Despite a narrative of underinvestment in technology leading to competition from Microsoft Azure and Google Cloud, Amazon's recent strategic deals suggest potential for rebound.

Jim Cramer [04:50]: "Amazon announced a deal with Open Air that could be the beginning of an effort to catch up... The shorts will have to cover, hence the stock's 5% gain."

Apple (AAPL):
Apple faces challenges with no clear AI strategy and pressure from political factors, particularly tariffs affecting its manufacturing locations.

Jim Cramer [05:30]: "Apple will increase its investment to $600 billion, supporting a new American manufacturing plant program across 50 states... the shorts will have to cover."

Disney (DIS):
Despite beating quarterly earnings, Disney's stock suffered due to insufficient guidance improvement, illustrating how positive results can be negated by cautious future projections.

Jim Cramer [06:50]: "Disney beat the earnings estimates by 14 cents, but didn't pass all that beat on to the full year guidance. That's deadly suicidal."

Honeywell (HON) and DuPont (DD):
Both companies reported excellent quarters but saw limited stock movement, reflecting a market indifferent to their strong performances until further catalysts emerge.

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3. Listener Calls and the Lightning Round

Jim engages with several listeners during the Lightning Round, providing quick stock recommendations:

• PayPal (PYPL):
  Recommendation: Hold
  Alternative Suggestion: Capital One (COF)

  Jim Cramer [08:14]: "There are so many other better ones out there. May I suggest Capital One... Richard Fairbank is a genius."

• Coca-Cola (KO):
  Recommendation: Avoid

  Jim Cramer [09:40]: "No, Christopher, we're not going there. It’s down 10% for the year."

• Micron Technology (MU):
  Recommendation: Wait

  Jim Cramer [26:35]: "DRAM pricing has been going down... Until DRAM pricing stabilizes a little bit more, we have to wait."

• AMD (Advanced Micro Devices):
  Recommendation: Buy

  Jim Cramer [39:00]: "This is the pause that refreshes. I like the pullback. Buy some."

Other stocks discussed include Salesforce (CRM), Quantumscape (QS), NIO, Riot (RIOT), and ISRG, with mixed recommendations ranging from cautious optimism to outright avoidance based on current performance and market trends.

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4. In-Depth Interview: Colleen Keating, CEO of Planet Fitness

Jim Cramer interviews Colleen Keating, CEO of Planet Fitness, celebrating the company's decade as a public entity. They discuss Planet Fitness's strategies, including brand refinement, enhancing member experience, and optimizing gym formats.

Colleen Keating [11:48]: "We've really leaned in on our strategic imperatives... refine our brand, enhance the member experience, and optimize our format to ensure relevance."

Key Highlights:

• Membership Growth: Gen Z is the fastest-growing segment, with high utilization rates indicating strong engagement.
• Franchise Model: A robust network of sophisticated franchisees contributes to consistent growth and expansion.
• Black Card Membership: Offers reciprocity across clubs nationwide, enhancing flexibility for members like Cramer who travel frequently.
• Post-COVID Recovery: Planet Fitness maintained operations without permanent closures, reflecting resilience and increasing fitness consciousness across generations.

Colleen Keating [16:24]: "We're in the golden age of fitness... more fitness-minded and thoughtful about a fitness routine."

Jim Cramer sees the recent stock dip as a potential buying opportunity, commending Planet Fitness's performance relative to the S&P 500.

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5. Technical Market Analysis with Jessica Inskip

Cramer introduces Jessica Inskip, Director of Investor Research at Fidelity, to discuss the technical aspects of the market:

• S&P 500 Analysis:
  • Bull Market Status: Still in a secular bull mode despite recent pullbacks.
  • Moving Averages: The 13-week moving average crossing above the 2613 red, indicating bullish trends.
  • Volatility Indicators: Widening Bollinger Bands suggest increased volatility ahead.

Jessica Inskip [Technical Insights]: "The S&P is experiencing a healthy pattern of price retracement, but the bulls are still in charge."

• Equal-Weighted S&P 500:
  Struggling to make new highs, showing signs of bearish divergence with the MACD indicator pointing towards potential declines.

• Technology Sector (XLK):
  Strong performance with key resistance levels breached, yet facing potential volatility due to widening Bollinger Bands. The tech sector's performance is closely tied to the US dollar's strength.

Jim Cramer [Technical Insight]: "Whenever the dollar rallies, the tech sector gets hit... Recent weakening of the dollar has been beneficial for tech stocks."

Conclusion from Inskip: The bull market remains intact, but investors should brace for increased volatility and monitor critical support levels to gauge future market movements.

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6. Exclusive Interview: Jason Robbins, CEO of DraftKings

In a candid discussion, Jason Robbins, Co-founder and CEO of DraftKings, shares insights into the company's strong quarterly performance and the evolving landscape of sports betting:

Jason Robbins [28:36]: "Q2 is a good quarter... more than double our highest adjusted earnings quarter previously."

Key Topics:

• Revenue Growth: Achieved 37% revenue growth, outperforming expectations with increased player numbers and higher spend per player.
• Regulatory Landscape: Navigating the complexities of state regulations and recent changes affecting gambling tax implications.
• Market Expansion: Optimistic about future legalization across more states, envisioning widespread adoption of sports betting.
• Product Innovation: Emphasis on responsible betting and enhancing user experience to drive growth.

Jason Robbins [29:42]: "We're still seeing a ton of growth and really able to start making real profit."

Cramer probes into DraftKings' strategies for upcoming sports seasons, highlighting the company's focus on leveraging major events like the NFL to sustain momentum.

Jim Cramer [30:25]: "Eagles are the second most bet on team... someone put a $25,000 bet on the Raiders to win the Super Bowl with a $2.5 million payout."

Regulatory Challenges:
Robbins addresses concerns about changing gambling tax laws, emphasizing the need for collaboration with regulators to rectify unintended tax implications.

Jason Robbins [32:23]: "We’re working with congressional members to fix it... It doesn't make sense to pay income tax on something that's not actually income."

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7. Final Thoughts and Strategies

Jim Cramer concludes the episode by emphasizing the importance of combining anecdotal insights with empirical data for effective stock picking. He advocates for a methodical approach:

1. Observation: Start with personal experiences and observations.
2. Empirical Validation: Use data sources like 100x to confirm trends and align anecdotal insights with broader patterns.
3. Fundamental Analysis: Ensure the company's fundamentals support the investment decision.

Jim Cramer [40:16]: "First, you start with the anecdotal from your own powers of observation. Then you try to get empirical data that agrees with what you see to confirm that you're not an outlier."

He highlights examples such as:

• Reddit (RUN): Observing active user engagement and corroborating with data showing increased future use.
• Starbucks (SBUX): Noticing quicker service times and validating it with customer surveys indicating similar experiences.

Cramer encourages listeners to utilize both personal insights and data-driven analysis to enhance their investment strategies, reinforcing the show's mission to educate and empower investors.

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8. Conclusion

Jim Cramer wraps up by reaffirming his commitment to helping listeners navigate the complexities of the stock market. He underscores the significance of staying informed, being curious, and utilizing available data to make informed investment decisions.

Jim Cramer [43:40]: "If you have the right information and you're a believer, your odds of a successful investment are just much higher. That's what made Money is all about."

Key Takeaways:

• Market Volatility: Be prepared for increased fluctuations and focus on strong fundamentals.
• Stock Recommendations: Diversify with a mix of high-performing stocks and cautious plays.
• Investment Strategy: Combine personal observations with empirical data for well-rounded decision-making.
• Growth Sectors: Technology and fitness industries show resilience and potential for continued growth.

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Disclaimer:
All opinions expressed by Jim Cramer on this podcast are solely his and do not reflect the opinions of CNBC, NBCUniversal, or their affiliates. Listeners should conduct their own research or consult a financial advisor before making investment decisions.

Transcript

[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Crane. Mark. I'll do my friends. I'm just trying to make you a little money. My job is not just entertain, but education. Teach you. So call me at 1-800-7.3, CBC. Tweet. Mitchell Kramer. This market is driving the best investors I know crazy, and I know why. Incredibly expensive stocks that shouldn't go up endlessly. While stocks are perfectly good companies are completely ignored. Or worse, even when they report good numbers, well, they go lower. Stocks that are heavily shorted just steamroll the short sellers like an M1 Abrams tank. On the most remotely positive news story. Stocks of companies that go down after news are avoided like the bubonic plague, unless, of course, they are praised by the president for investing $600 billion in the U.S. something that Apple did today that reversed the fortunes of its flailing stock. The result? We have a market that's all over the map, driven not by group moves, but by individual stocks with bizarre narratives that are unlike anything I've ever seen. Clearly today, where the Dow advanced 81 points, S&P gained.737, but the Nasdaq advanced 1.21%. Let me give you some examples. By now, we all know about Palantir. The one of a kind juggernaut meme stock that can't be stopped. It's part sledgehammer, part laser, part nuclear bomb, and part Saquon Barclay. I mean, this thing's incredible. Now, some of that's because CEO Alex Karp just keeps delivering, not just with great contracts, but with revenue growth, incredible margins. This guy is crushing it like no other. Let me give you the dirty little secret of the success of Palantir. His name is Shane. So I'm at lunch today, and Shane wants a picture. Love that. You always get the picture. Sometimes I'll even ask you, do you want the picture? No. You've just been nice. I may be a little hubris. In return for the pick, I asked Shane what he's up to now in the stock market. Oh, Shane. She mystified that I wanted to know what he was doing. Of course I did. I said. Shane said, you know what I'm doing? I'm buying put options. I said, oh, and what are you buying? Put options on Palantir. There you go. Palantir. The path to Palantir rich is being paid on the backs of the put buyers, those who use options to bet against it. I told him he needed to focus. He was not focusing if he was betting against Palantir. He wasn't focusing at all. Fortunately, he limited his risk with puts and not outright shorting. He wouldn't have been at lunch if he were short. He wouldn't be able to go out in public, believe me. And look, this short busting Palantir is not alone. Stocks in this market fly when they're heavily shorted. And something good, anything good happens, take a risk. Networks One of my faves, the data center networking play the last quarter. Well, I got to tell you something. If the stock's been creeping up ever, step by step, inch by inch, the shorts were increasing their bets the whole time. They figured it was a good shooting fish in a barrel. Then Arista reported and the numbers, they were stupendous.

[Producer]

That was easy.

[Jim Cramer]

The last quarter was an aberration. CEO J Street Yellow While gaffed and gutted, the short sellers. Like when you catch a bluefish, you know, you gap the stock manager shoot up more than 17% today you don't find ordinary longs pay up like this. It's the short sellers panicking, knowing that they're they're done. Stick a fork in them. They have no choice but to buy, to close out. They're now losing positions. It doesn't matter how big the stock is in this market. Ever since liberation day, the hedge funds feel emboldened to take on stocks. They're willing to take on anything. And for the most part, they keep getting their heads and handed to them. Let me give you two salient ones versus Amazon. The company we know as a retailer put up fantastic retail numbers when it just reported it, crushed in advertising. But when it came to its quiet Amazon Web Services division, the business where the big money is made, the one that competes with Microsoft's Azure division and Google Cloud, well, guess what? We got a whole new narrative. It was one of a penny pinching, Amazon underspending and not buying the latest and greatest in video chips, the ones that young companies thrive on when they want to develop software. This narrative of Amazon being a shared donor to Open Air swept through Wall street more quickly than the Mango wildfire back in 49. Considering those who stood by the stock, like by Travel Trust, no fire department anywhere. But then yesterday, Amazon announced a deal with Open Air that could be the beginning of an effort to catch up. Customers might not migrate to Microsoft Azure, which is joined at the hip with open Air. More important, it was a signal that the shorts had pressed their bets too hard and longs flooded into the stock that had been down 10% between Friday and Monday is Amazon by Mid wonder if the shorts didn't get wise to the fact that Amazon is no pitiful, helpless giant. If it wants to play catch up, it will simply spend more money because it's got it to spend. Or how about Apple, another charitable trust holding. You know what I say about that one? I say hold it, don't trade it. Now, it's been dealing with. This has been stock that's been left for dead after a very good quarter because it has no AI strategy. And it's in the crosshairs of the biggest short crater of all time. Or at least it was President Trump. The President crushes individual stocks for breakfast, like Wheaties. And wherever Tim Cook decides to build phones, the President is going to hammer him, we thought, with tariffs, as long as those factories aren't being built. The United States. Cook wants to make his phones in two countries, India and China. And those have become the biggest targets of the President's trade policy. We already knew that Tim Cook had pledged $500 billion to building Stuff United States over the next four years, including some parts of the iPhone. But good. But it didn't move the Trump needle. The President wants the biggest deal of all time ever. I mean, like ever in history. The history. The history of all deals. Sure enough, Tim Cook announced today that Apple will increase his equipment to $600 billion and will support a new American manufacturing plant program, or amp if you thought the last one was big, this one is really big, covering 50 states, especially Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon and Texas. Holy cow. This investment is bigger than the GDP of Vietnam or the Philippines or Norway or Singapore or Thailand is creating a country. That a country, the United States of Apple, also known as the American manufacturing program, will be putting Apple on the course to making the iPhone here. And the President. The President is appeased. Now, you may say, is this all incremental? I say, who cares if this immunizes Apple from tariffs from China or India because the big man has finally gotten the number he wants. Well, then, so what? So be it. The shorts will have to cover, which they were doing all day, by the way, hence the stock's 5% gain. Oh, but there is no immunity from a new 1% tariff on imported chips unless they're in the process of building here or made a commitment to do so. I bet there'll be plenty given commitments by the ones who haven't thought about doing that. But then there's the other side of the trade. Stocks that just go begging because there's no narrative that can Attract attention. Take Disney. The company made a major deal with the NFL last night. On the eve of earnings that were usually positive, but no one cared, Disney reported a nice beaten raise, one that should have sent the stock flying, but no, because it didn't raise its earnings forecast enough. The stock got hit. Disney beat the earnings estimates by 14 cents, but it didn't pass all that beat on to the full year guidance. That's deadly suicidal. It's an implicit cut to the forecast. You have to raise your full year earnings guidance at least as much as you beat the quarter or your stock is just going to get clubbed. It didn't need to be that way, but management played it safe. Safety took a vacation. Or there are stocks like breakup. Stocks like Honeywell and dupont. Both reported excellent quarters, the latter being a real standout. But like Clark Gable, at the end of going with the win, this market said, frankly, my dear, I don't give a damn. These stocks may languish until their next quarter because no one can think of a reason to take either side of the trade until we get closer to the actual breakup. So here's the bottom line in this market. Haters going to hate, okay? And when they hate and they're wrong, they turn into buyers and lovers.

[Caller]

They.

[Jim Cramer]

They just keep buying. And when there's nothing happening, even if the stock is dirt cheap, who cares? In this market, the answer is nobody. Jim in Wyoming. Jim.

[Caller]

Oh, thank you for taking my call.

[Jim Cramer]

My pleasure.

[Caller]

Jim, what's listening to you since Kudlow and Kramer?

[Jim Cramer]

Now you're talking. That's like 62 years ago before they had, you know, they were still using vacuum tubes back then.

[Caller]

I wanted to thank you because I listened carefully to the advice that you give and of course you give us the facts. You have great interviews with company officials and I've been investing based on that. I do the homework.

[Jim Cramer]

Excellent. Excellent. Not on politics. I tend not to pick on politics. I like to make money for people, not just confuse them. You have heard of Stephen King, Booker?

[Caller]

You've increased my net worth by a substantial amount and I'm very grateful. So thank you so much.

[Jim Cramer]

Oh, terrific. Thank you. You know what? I. Come on. How about the hand? How can I help you now?

[Caller]

So PayPal, buy, sell or hold?

[Jim Cramer]

No, I didn't like the quarter. There's so many other better ones out there. May I suggest if you went lending, I would go with Capital One. I know it's old fashioned, I know you've seen the ads, but all I can tell you is the guy who runs that situation. Richard Fairbank is a genius. He's who we're going with. I'm going to take one more. I'm going to go. I am going to West Virginia. Christopher. West Virginia. Christopher.

[Caller]

Booyah, Kramer.

[Jim Cramer]

Booyah. Christopher.

[Caller]

Just wanted to give a big shout out to my mom, dad and brother in the Philadelphia area. Go.

[Jim Cramer]

Holy cow. I mean, I'll see them on September 4th. What's going on?

[Caller]

I'm going about Coca Cola consolidated symbol C O K E split back in May.

[Jim Cramer]

No, Christopher, no, we're not going there. That just doesn't have it. It's down 10% for the year. And that actually makes sense. It does not have a technical term that I like to use periodically that I learned at Goldman Sachs, the mojo. It doesn't have it in this market. If you're not making some crazy news, well, no one seems to care even if your stocks are cheap on man. Tonight, Planet Fitness posted a top and bottom line beat on today's earnings, but they didn't raise the heart rate of the stock. I'm going to talk to the CEO, find out what's going on. Then as we head into the rest of the year, how narrow is this bull market going to be? I'm going off the charts to find out. And I'm getting exclusive with sports betting player Draftk off a Dino Mike quarter. So stay with Kirk.

[Producer]

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

[Jim Cramer]

What are we supposed to make of this quarter from Planet Fitness, the gym chain known for its beginner friendly judgment free zone philosophy and its affordable $15 per month membership fee. This morning the company reported a strong top and bottom line beat. Much better than expected. Same store sales. But because maybe management didn't raise their guidance to reflect these excellent results, and because management talked about higher attrition from the rollout of their online cancellation policy, the stock ended up getting hit. At one point, the stock was down as much as 10.5%, although it rebounded from its lows and finished nicely just down nearly 3%. So is this the pullback, a buying opportunity? Or did the stock deserve to get hit? Let's take a closer look with Colleen Keating. She's the CEO of Planet Fitness who rang the closing bell here at the New York Stock Exchange to celebrate 10 years as a public company. Ms. Katie, welcome to Man Money.

[Colleen Keating]

Hey, Jim. Great to be here. Thanks for having me.

[Jim Cramer]

Okay, so 10 years. Give me a little bit of what's going on during that period. You've been here for a year. I think that the numbers are just extraordinary. What's been going on at Planet Fitness.

[Colleen Keating]

Yeah, so I've been here just over a year, as you said, and we've really leaned in on our strategic imperatives. So those are really to refine our brand and pull it through our marketing, lean in on member experience and enhance our member experience, optimize our floor plan and our format to make sure that we're relevant and staying relevant for today's consumer. And then when we get all that right, we accelerate growth. And coming off the quarter, we had a great quarter, the strategic imperatives are coming to fruition and we saw our marketing really land. Our joint numbers were tremendous in the second quarter. And the format optimization that we've done, changing the gym floor is certainly resonating with.

[Jim Cramer]

I agree. Now, when you post an 8.2% comparable store sale versus 5.9, what that says to me is someone thinks there's great value because that's what's working value. So people must feel that they're getting a more bang for the buck versus say other gyms, maybe more expensive.

[Colleen Keating]

Well, when I think about value, I think about high value. Right. I always say HVLP high value.

[Jim Cramer]

So that you.

[Colleen Keating]

The HV has to be capital because we offer a tremendous value. Top quality equipment, super clean, modern clubs at an incredible price point. An incredible value, $15 a month.

[Jim Cramer]

Okay, so let's talk about what's going on in the country. We've got a cohort. Gen Z. If you were at a liquor company right now, I would be telling you, you know what, I think your days are numbered because there's this whole cohort of people who's growing that doesn't want to do bad things to their bodies. Now that the also the coral is corollary goes with that, they want to do great things to their body. So Gen Z signing up pretty, pretty aggressively.

[Colleen Keating]

Gen Z has been the fastest growing segment of our membership. And keep in mind there's three years of Gen Z that aren't even of age yet to join our club. So fastest growing segment of the membership and we're seeing increase in our utilization rates as well. And we know that Gen Z is a high user.

[Jim Cramer]

Explain that to me. So in other words, they sign up and then they use it more than a More than others per month.

[Colleen Keating]

We used to see that. We still see that. We have about six times six visits per month for from a member who, who utilized our club in a given month. And we're seeing in the high sixes over the last couple of good now utilization is up, which means they're having a great experience.

[Jim Cramer]

So where are you getting the people who want to do the franchise?

[Colleen Keating]

Our franchise. We have a very strong complement of a franchisees and many of our franchisees have grown with our system over a long period of time. We've also had some new entrants, but sophisticated franchisees who are great thought partners for us and really invested in growing their business with. With Planet.

[Jim Cramer]

What I always tell people to get a franchise at Planet Fitness, you already have to have a franchise. Your people tend to be multiple. Right. Because they're very good at what they do.

[Colleen Keating]

They understand the rules, they, they tend to be multiple. And when we have have had small portfolios trade, in almost every case we've had incumbent franchisees who've been interested in taking on additional, additional clubs.

[Jim Cramer]

Okay. So I'm on the road a lot. If I have a Planet Fitness, I imagine the one I belong to is where I get for $15 is the one I have to work at. But you have another feature that would make it so when I'm on the road I could just go downstairs in one of the buildings that I work at and there's a Planet Fitness.

[Colleen Keating]

Yeah. So that's our Black Card membership and it has many benefits. However, the top two benefits of a Black Card membership are reciprocity, which is what you're saying. You can use any club in the country or bring a friend and they're able to bring a guest along with that membership. And we've seen increasing penetration with our Black Card membership. So we're at 65.8% of our membership today. Ops in for the Black Card membership at the slightly higher price point because it's such an incredible value.

[Jim Cramer]

Okay. So one of the things that dad goes through a tough period in Covid and you came back and I was afraid that it would not be that it would be a moment where people maybe they would change the way that they worked out. It turns out that it didn't even stop. The Planet Fitness kept advertising, never really quit and. But you picked up a lot of share during this period.

[Colleen Keating]

We did. And. And when you think about the COVID period, you know, certainly there were some temporary closures for municipal reasons. Right. But we did not have one club permanently close Coming out of COVID So credible, isn't it? It is incredible. And it also speaks to the fact that people are more fitness minded than ever. I often say we're in the golden age of fitness. So across all generational cohorts, we're seeing people more fitness minded and more thoughtful about a fitness routine and movement as part of their lifestyle style, both for physical reasons and for emotional.

[Jim Cramer]

I want to just drill down on that for a second candle. When I was the age of Gen Z was a time when I was very wild. I've written about it, so I'm no stranger to it. I hit it pretty hard because that's what you did. They don't do it anymore.

[Colleen Keating]

Well, think about this too. So when I was growing up, we're probably similar vintage. When I was growing up, I don't remember my parents or my friends parents going to the gym or talking about having fitness as part of their part of their lifestyle or even really having, you know, the piece of equipment in the basement kind of thing. And you know, today I think millennials, Gen Zs, they've grown up more fitness aware and fitness more a part of their lifestyle. At the same time, we're seeing them value community. Maybe that's a little bit of coming out of COVID right? That they were home, they were being schooled at home for a while. And the sense of community that we offer at Planet Fitness. So top quality gym, great fitness routine, you know, the top shelf equipment. At the same time, this welcoming sense of community that serves gym goers of all fitness levels.

[Jim Cramer]

Well, it's been a great performer versus the S&P during this whole period last 10 years. I want to congratulate you on that anniversary. It's terrific and I know that to me, but get a little bit of a buying opportunity because of the drop today. That's Colleen Keating. She's the CEO of Planet Fitness now money's back everywhere.

[Producer]

Coming up, is the market's recent pullback a buying opportunity or should investors buckle up for more turbulence in the weeks ahead? Kramer is going off the charts to find out next.

[Jim Cramer]

All right, what do you make of this bull market to real beating late last week, one we've only partially recovered from. Frankly, regular viewers know that. What I think of the labor report and what it means for the Federal Reserve, I'm optimistic about a September rate cut. But this is a tricky market. Even though the bulls have had a good year, it's also been a volatile one and a whole lot of people have been very confused every step of the way. As I said at the top of the show, people are short and all over the place. And that's why moments like this I can take my own opinions out of the equation. Consult something more quantitative. We call them the technicals. So tonight we're going off the charts with help of Jessica Inskip. She's the first woman on the active trader, Jessica Fidelity, who's now director of investor [e-mail] as well as the co host and founder of the market. Make her podcast in order to get better with the environment. I like this. Based on the action, inscript thinks that we're still in bull mode. Thank heavens. But we could be headed for a period of heightened volatility. Let's start with the weekly chart of the S and P 500. Here we go. After last Friday's pullback, income says the S and P is now experiencing a healthy pattern of price retracement. But the bulls are still in charge. That's what matters. In fact, she thinks this is a secular bull market, not a shorter term cyclical one. Cyclical will be like this and secular would be like this. Early this summer, the ESME broke through the ceiling of uncertainty at 6147. Okay, 6147. They're right here. See the breakthrough, the level that we previously peaked at February. Last time we heard from Inscip in May, she said we need to clear this soon for the market. Get move again. Not long after that breakthrough, the 13 week moving average crossed above the 2613 red, 26 brown. Okay, and remember, INSCIP likes to use these 13 week increments because 13 weeks is 1/4 and the quarter is the basic unit of measurement. This business with the 13 week crossing above the longer term moving averages, that shows that the S and P is in a bullish trading mode. Okay, that's very possible. However, when you look at the light purple Bollinger bands above and below the action, these measure volatility. By the way, they're getting wider. That means we're dealing with an environment that's primed for more volatility and uncertainty. See, the Bollinger bands represent two standard deviations away from the 20 day moving average. The wider the standard deviations, the wider the price range Is wants to see these bands narrow. The fact that they're weak, they widen. Tell us why the S and P may have moved up too far too fast. See, this is too much space between. That makes sense. I remember John Bolger, the old days. Well, this would be something where you would say, I'm getting dice here. Basically, she thinks the bull market's still strong, but it's gotten a little ahead of itself. We do get more of a pullback. And Scoop says you need to watch that former ceiling of uncertainty at 6147. Okay. Although as long as we're above it, it's more like a floor for certainty. As long as the floor holds up, we're in good shape. Let's take a look at this second chart. Next we need to look at the weekly chart of the S&P 500 equal weighted. Okay, Equal weighted index. Now, in the regular S and P, every stock is weighted by its market capitalization. Which means that for example, the Magnificent seven alone can move the whole index higher. In the S and P equal weight, every stock counts the same. That's why I like to watch it in order to get a read on the other 493 non magnificent stocks in the cohort. I like this. I am a big believer in just using the S and P, but I like this. And looking at the S and P equal weight, it's clearly not doing as well. Unlike the regular S and P, the equal weight failed to make a higher high. Look at this. It's really not special at all. NSCOP thinks it's just showing early signs of a bearish divergence. First off, the S and P equal weight is stuck to between a floor of 7384 and 7612. That floor of support goes back to the higher high the index made back in mid October. Okay. The ceiling resistance comes from the index's all time high last November. We haven't been able to break through that ceiling. Basically, the normal S and P is clear uptrend making higher lows and higher highs. We like that. But the S and P equal weighting failed to make a higher high. And without the equal weight, any rallies are going to be narrower than we we've gotten used to. Hence the recent comeback Magnificent seven, which you know, I don't mind, but most people feel is like too narrow. Unfortunately, when you look at the moving average convergence divergence or the MACD line, now that's at the bottom. This is an important momentum indicator. It's flashing a bearish divergence. Inscript doesn't like that the MACD is making lower highs while the actual S and P equal weight is testing its old highs. That's not a good sign. The MACD can often detect changes in trajectory before they happen. And right now Seems to be changing for the worse. See, but for Inscape, that's just a warning sign. She won't get truly negative in the S and P equal weight until it makes a weekly close below its floor of 7,384. So it's got to go below here. Okay. Down about 40 points from where it's currently trading in. She says that's too close for comfort. I get that. Now, if the S and P equal weight shows that the bull market's narrowing, we need to look at the part that that tends to hold up in these situations. Tech. So check out the weekly chart of the Technology Select Sector Spider Spider Fund and the xlk. Okay, so now I want you to stay focused on this. We're going through tech now. And look, the XLK has been doing very well. It's broken through key resistance levels in recent weeks, including the one that Inscape called out the last time we highlighted her work. This is nice. However, even though the XLK has been doing well, she doesn't like the Bollinger bands. Remember, that's the purple here. They've been widening recently and that means more again, more volatility even. And even though this tech index is well above its floors of support at 242 and 237, Income says it's very important that we remain above those levels. Otherwise we risk a real breakdown. Now, that's bad news, but I think we're going to be comfortable doing that and we got some good action today. Fourth, I want you to take a look at this chart of the xlk, the tech index relative to the US dollar. As you see, whenever the dollar rallies, the tech sector gets hit. Remember, the dollar here you can see what's going on is the dollar goes up. This is the US dollar and this is tech. Whenever the dollar weakens, the tech sector tends to rally. That's because. Let me just be sure you understand. So this is going down. That goes up. Okay, pretty good with me. That's because many of these companies do lots of business overseas and their foreign profits are worth more greenbacks when our currency is weaker. Lately, the dollar has been hit hard. I like that most people don't, but I think that I'm from this tech world and it's been good news from the. Okay. However instance worry that we may have come too far too fast here too. She's not saying she wants a stronger dollar, but she feel more comfortable if it stabilized at these lower levels. I wanted to continue to get weaker so our companies get the advantage that Our foreign companies have been able to take advantage of us so long because because of the strong dollar. Anyway, here's the bottom line. The charges interpreted by Jessica. It gives you just the S&P 500 still bull mode and that's even after last Friday's beat down. But it looks like we're back to the narrower bull market that's defined so much in the past year and a half. You and I both know Nvidia, Apple, Microsoft. Okay these are core names for us for a lot of people are not but the coordinates for us here may have money and for my child trust. Now let's take some questions. Let's go to George in Florida. George.

[Caller]

Jim, good afternoon. Bristol Myers, like all my big pharma holdings has not done very well in the last several years. I just don't understand it. Bristol Myers has a very good dividend. They have their profitable if their stock keeps going down several years.

[Jim Cramer]

Yes, it does. And let me tell you how I feel about this. I made a mistake here. I bought the stock. I bought it because they have a drug called Coben Fee which I think is going to be really good for severely mentally loyal people. It has not worked. The president is very much because he's against these drug companies. It's not been able to stabilize. I'm trying to figure out an action plan for my child trust. Have not been recommending the stock. I need an action plan. I don't have it yet. You and I are in the same boat on this one. I want to go to Marina in Florida. Marina. Hi Jim. Hi Marina. How you doing?

[Caller]

I'm good. I'm a first time caller and I'm new to this investing and I have one question. Would you suggest buying Micron stock now at its current stock price to the.

[Jim Cramer]

Problem has happened and it's very technical here but they make a particular chip called a dram and the DRAM pricing has been going down and that's what this stock trades with. Not with the sox, not with the semi dollar but with actual DRAM pricing. Until DRAM pricing stabilizes a little bit more I'm going to say we have to wait. I wish I could be more aggressive because I happen to think that Sanjay Mehrotra is a perfect CEO. But it's a commodity not unlike in some degrees oil. Now I do have this high bandwidth division that is very good for data centers but it's not enough to be able to move the needle and that's why I am waiting on the sidelines. Micron the charges interpreted by Jessica and suggest that this bull market can continue. But it'll probably be back to the more narrow one we saw earlier this year. I say don't split the program now. Much more made money ahead, including my excuse with DraftKings. As the NFL season approaches, I'm finding out how the company's preparing to double down on its priorities this year. Then. We all want to invest smartly in stocks, but sometimes it can be hard to know where to start. I'm keying you into my method for how to go from a hunch to a holding and of course, lawyer calls rapid fire. Tonight's edition of the lighting round. So stay with Kramer. As we approach football season, things are already looking pretty Darn Good for DraftKings, one of the nation's largest online sportsbooks. I've been steadfastly bull on this one, you know, just the whole way. After the close, DraftKings reported an impressive quarter revenue growth accelerating to 37% better than expected earnings, higher than expected earnings for interest, taxes, depreciation, amortization. These results were driven by what trafficking calls a sportsbook friendly outcomes in the quarter. And the company reiterated its full year forecast. But Madden did say that it now expects to see revenue near the high end of its guidance range. That was good enough to send the stock flying after hours trading. But what's the long term bull case here? Let's check in with Jason Robbins, a friend of the show, Co, founder, chairman, CEO of DraftKings to get a better sense of the quarter. What comes next. Mitch Robbins, welcome back to make Money.

[Jason Robbins]

Thank you for having me back. All right, talk to you.

[Jim Cramer]

Yeah. Jason, well, look, there's pretty good number, really good set of numbers. What's driving these numbers because it's not a quarter that I would necessarily expect to be as strong as it was.

[Jason Robbins]

Well, first, thank you. It's, you know, we're really excited. It's a huge record for us. It's to put in perspective, more than double our highest adjusted even a quarter previously. So really great to see. You know, Q2 is a good quarter. There's definitely no football which you know hurts a little bit. But you got NBA, NHL playoffs, baseball starting. And more importantly, it's a quarter that, you know, we really are able to make more profit because it's not our heaviest marketing quarter. You know, Q3 and Q4 and also Q1 when you have NFL going on has more marketing spend going. So definitely a good time to make profit. And we're excited about the numbers. Over 300 million for the first time ever. Excited about that.

[Jim Cramer]

Now Jason, one of these, I did see you kind of alluded to that. But it looks like each, each gamblers gambling more and the gamblers don't cost as much to be able to get. I would think that that's just kind of if that it's really an inflection moment and you could be on the cusp of some very big numbers.

[Jason Robbins]

Well, I think right now we're at a great stage where we're still seeing a ton of growth and really also able to start making real profit. So I'm excited about that. The numbers look great. We have an increase in our year over year players. We have an increase in spend per player. Had a little bit of friendly outcomes in the quarter which was nice. It swings both ways. People can see now it was tough after the last two quarters we got stung but good to have the other way and you know, really excited about the upcoming NFL season too. We have some big bets coming in on that already.

[Jim Cramer]

Well, I wanted to ask you, I think you. I always think of you guys as innovation. I like to just check to see what you've got going. You've got some stuff for me for opening day Sept. 4 with the Eagles.

[Jason Robbins]

Oh yeah. Well, Eagles right now are the second most bet on team. Not first, just behind the Lions. They are the favorite though. So maybe alliance people like the odds a little better. Believe it or not, Jim, somebody put a $25,000 bet on the Raiders to win the super at a 2 and a half million dollar payout. The raw 2 and a half million dollar payout.

[Jim Cramer]

Well you know what? I don't know. That's like a long shot stock maybe that's Palantir for all I know. At 30, right. I mean who can tell you that they've got a new. They got a new quarterback. It could be. Now when you talk about the sports friendly outcomes like for instance the, you know, J.J. spawn won the U.S. open in golf. That was kind of that people didn't think that could happen. So that could be a good day, a good series for you guys.

[Jason Robbins]

Yeah, I mean usually when the favorites win is not. It's not as good for us. So when you see a long shot like that when it's usually good for the books.

[Jim Cramer]

Now let's talk about the. This prediction, prediction betting. Robinhood gets it. I don't think they have anywhere near the safeguards that you guys have to constantly, I mean, you know, look candidly a lot of times when I'm looking at your ads it says don't get, it's gamble, but don't gamble. I mean, I always feel like, okay, okay, I'm warned, I'm warned. But I don't know, Robin, who doesn't have that kind of protections for the people who are gambling.

[Jason Robbins]

Well, listen, you know, I think that federally regulated markets, it's a different regulation system and I'm sure they're following the rules that they need to, you know, for us, it's an interesting area. We're keeping an eye on it obviously can, you know, something that we need to take seriously and figure out a strategy around. But I do think it's a different regulatory framework. And you know, you can argue whether you believe or not that they're appropriately regulating any of these things. But I do think it's an example of where you see, see the sports betting and online gaming that state regulated, it's much heavier than most other forms of regulation. And so when I hear people say it's not enough, it sort of surprises me because relative to a lot of other activities, it's a much more heavily regulated industry.

[Jim Cramer]

Look, I love daily fantasy. You know that a daily fantasy is one of my favorite things, particularly when my team pulls back, you know that. But you know, California, you've got some state attorney general, he's against the day, he's against daily fantasy.

[Jason Robbins]

Well, we obviously don't agree with him on that. We've been operating peer to peer contests there for over 13 years and I think it's pretty established that that's clearly legal under California law. But we're going to work collaboratively with that office as well as with any regulators that raise issue. And you know, I usually find that once you can get in the room and explain the facts, people get it.

[Jim Cramer]

Now how about this obbba, you know, the beautiful bill, gambling tax implications, where it's possible that because they changed the law, we had a piece. It's possible you can end up paying tax when, when you haven't made money. That doesn't seem right.

[Jason Robbins]

Yeah, it's a very strange change. But you know, my understanding it was done as part of a technicality in order to follow the Byrd rule, which is about as far as my expertise here goes. But I don't think that there was really a total understanding of what that meant and I do think there's been some appetite you've seen to fix it. So, you know, we're trying to work with congressional members to do that and hopefully will be be successful. I do think it's something that doesn't make sense if you can't deduct all your losses, you know, how does that make sense that you pay income tax on something that's not actually income?

[Jim Cramer]

There've been a time where our whole conversation would have been different. I would have said look, until California, until Texas, until Florida, until you get those, I'm actually not that interested. What do you think is the big change that made it so that didn't even come up in the discussion till the end of the interview.

[Jason Robbins]

Well, listen, I think the fact that it's such a big tam and we do have quite a bit of legalization outside of those states and those states I think will eventually come, right. It's just a matter of time, at least some of them. But you know, obviously the biggest states are the ones where you have the most stakeholders and sometimes take the longest. And I do think that there's been progress made across the the board. So I think, I feel eventually there'll be close to 50 states with sports betting and I can't imagine a world where you can bet in 30, 40 plus states in California is not one of them and Texas is not one of them. So I think eventually that will happen.

[Jim Cramer]

One last one is kind of out. It's a little bit away from. My daughter asked me to ask you when you had those bets for like any time. Touchdown Mahomes which is to open an account. Has it ever been so such of a layup and yet not paid off?

[Jason Robbins]

You know, usually when we put those out there, we know they're going to pay off. Somebody excited and open an account.

[Jim Cramer]

Yeah, I think that those are the most. I always tell it's a fun way.

[Jason Robbins]

To experience the product. Right.

[Jim Cramer]

Because people realize what it's like to win. It's absolutely terrific. Well, you're great to have on Jason. Jason Robins DraftKings co founder, chairman and CEO After a terrific quarter. Jason, I love having you on the show. Thank you.

[Jason Robbins]

Thank you for having me.

[Jim Cramer]

All right, everybody's back there for the break.

[Producer]

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 to start the White river and then the lighting round is over. Are you ready, Ski dad tells you what's over there. Ilham in Virginia. Ilham.

[Caller]

Hi, Jim. How are you today?

[Jim Cramer]

I am good, sir. How are you?

[Caller]

Very good, very good. Thank you very much. I have a quick question. You have been invited number of times as CEO of the company. The stock did very good and in April it went down like all other the stock, but it never recovered back. So my stock is Salesforce CRM.

[Jim Cramer]

Okay, so Salesforce is a little tough right now, because right now, the enterprise software companies are all coming down. I have not been recommending the stock card. I want to see what happens with the quarter. I wish I could be more definite, but sometimes it's better just to say I don't have a handle on it. I want to go to Antonio, Massachusetts. Antonio.

[Caller]

Booyah, Jim.

[Jim Cramer]

Booyah, Antonio.

[Caller]

Call.

[Jim Cramer]

Of course.

[Caller]

What are your thoughts on oklo?

[Jim Cramer]

Okay. I believe in nuclear. I believe in nuclear power. I believe in their strategy. I do think that the company, at $12 billion, is not a bad buy. It has been up a huge amount, 290%. Let's be a little careful, but I think it's a good company. Good stock. Let's go to James in Georgia. James.

[Caller]

Hey, Jim, this James from Georgia.

[Jim Cramer]

Okay. What's up, chief?

[Caller]

Not much. Not much. All right, we're gonna start this. Recently dropped by 45% for the last two months. What's your opinion on Quantumscape?

[Jim Cramer]

I'm not a fan of Quantumscape. I don't think they have the horses. I don't like companies that continue to lose money. It's just not my style. I want to go to Hardy in Illinois. Hardy.

[Caller]

Hello, Jim. How's everything going?

[Jim Cramer]

Oh, it's going incredibly well. How about you?

[Caller]

I'm doing fine. I'm doing great. I'm doing great. I have a question. I've been in this stock for quite some time, and I'm trying to determine if I should buy more of it. The ticker symbol is nio. It's Neil.

[Jim Cramer]

You know, I don't think that that is a really terrific situation. I happen to think that there are better buys, and I think that market is flooded right now. Let's stay away from that one. Carla in Florida. Carla the Babu. Yeah. Jim from. Very strong. Very strong. All right. Oh, I like it there.

[Colleen Keating]

Listener. Well, my husband and I are listeners.

[Caller]

From the start, but my first time calling.

[Jim Cramer]

Okay. My stock is riot. No, see, that's. Again, I mean, that's just too dicey for me. I know in the end, I don't look like. I may look like a radical, but I'm not when it comes to money, except for when it comes to orientation and not just doing S and P funds, but also doing individual stocks. Let's go to Ian in Florida, please. Ian, Julia.

[Caller]

Jim.

[Jim Cramer]

How you doing? I'm doing well, Ian. How about you? Amazing.

[Caller]

Thank you so much.

[Jim Cramer]

Of course.

[Caller]

Jim four time caller, investing club member.

[Jim Cramer]

Yes, very happy. Excellent.

[Caller]

Looking at a chip stock it reported recently and it got hit a little more than a little bit and it's down today. What do you think about AMD here?

[Jim Cramer]

I think this is the pause that refreshes. I like the pullback. I'm surprised we're even getting it. I think that Lisa Su has got something big going on with this Mi 400. That's a competitor to Nvidia. There's room for them. Even if they do billions and billions of dollars in that category, they'll get their fair share. I want you to buy some. Let's go to Pete in Alaska. Pete, Mo yacht. Jimmy Chill from Anchorage, Alaska. Good to have you, man. Good to have you on the show, man.

[Caller]

You have provided me effective investing navigational.

[Jim Cramer]

Beacons for over two years, ever since.

[Caller]

I divorced my financial advisor at a.

[Jim Cramer]

Fraction of the cost, my friend. And I am humanity for that. Thank you. I try to bring you every day.

[Caller]

All right, dude, you do. Hey, so I need a navigational beacon on isrg. Should I?

[Jim Cramer]

I can't believe that ISRG is getting hit like this. I like that company so much. I. I'm not gonna. I don't want to go out on a limb and say, buy it. I would say you can buy small. It just doesn't act well enough. But boy, it's a good company. And that. Ladies and gentlemen, conclusion of the Lightning Round.

[Producer]

The Lightning Round is sponsored by Charles Schwab.

[Jim Cramer]

If you're going to buy a stock, you need an edge. You can trust your eyes and ears most certainly, but before you pull the trigger, you need to be sure that the company itself is on solid ground. It's a big theme in my new book, how to Make Money in Any Market. If you have powers of observation, you might see something others don't. If you're curious, you can follow up on the hunch. These days there are so many ways to follow up on that hunch that it's extraordinary. These kinds of things used to be very difficult, but now it's never been easier. I love going to chat. Cbt Perplexity. I wish Apple would buy them already. Or Gemini Grok, Claw. And since the last Metacor Med AI. It's key that you get the prompt right on each so you get uniform responses. Now I'm fortunate enough to also get the work of Rob pace. He's from 100x, which is an alternative data firm that we've started to use recently. You've seen them on Air, which sources insights on consumer companies by asking real people what they're planning to buy rather than making judgments based on their past purchases. So I'm marrying my anecdotal insight, which is somewhat valuable as a place to start, and then trying to get an empirical readout on the company. The anecdotal empirical nexus is the heart of good stock picking. Once you have that, you need to make sure you're standing on solid ground with the fundamentals, the actual sales earnings margin. Let me give you some examples of battleground stocks that Rob has helped me with, so you can see how we go from sketchy first hand experience to a broader understanding of the underlying business. Let me start with Reddit. I use Reddit pretty aggressively. It's a terrific product. My wife uses it to sell plus borrow her Mezcal brand because Reddit has an entire Mezcal forum. So I like it, the advertiser likes it. That's where I start. I then try to find out what other people feel the way whether they feel like I do. Rob has told me that Reddit customers are planning to increase future use because people love crowdsourced information, seems to be able to be independent as easy as Reddit. Dessert demonstrates the increasing value of human intelligence. Increasing value, human intelligence. I like that. In fact, he's betting that as the future of search evolves from finding things to figuring things out, Reddit could be a major winner. Now you take your own use as I have. You marry it with your wife's experience selling a lot of phosphorus Mezcal, the Mezcal section. You then take data from 100x to see if your experience lines up with reality. Only then you go to the web, you look up articles, check out websites to see things like the piece we ran on Reddit a couple days ago which said it was great to buy. Wow, that's been terrific to me. That produced a terrific and really special reason to buy the stock. And I'm sticking with it. I just wish I bought it from my channel trust when I first got the hunch, but I hadn't done the homework. Can't jump that. 100x has pointed out a host of things that have helped me. How about this one? When I get my Starbucks caramel latte, my request in four minutes. That used to be much longer, much, much longer. Until recently. 100x tells me that I'm not alone. They're starting to see something similar among Starbucks customers that they canvassed. I like that. Any confirmation that makes my anecdotal thinking feel like the empirical one is good for my travel trust position and I just told club members to buy some more. It makes me want to buy even more when I think about it. So remember, first you start with the anecdotal from your own powers of observation. Then you try to get empirical data that agrees with what you what you see to confirm that you're not an outlier. Then you extend your curiosity to the basic homework. If everything holds up, then you've got a stock that you can happily buy and then buy more of if it comes down so important. In a tough market, if you have the right information and you're a believer, your odds of a successful investment are just much higher. Anything that increases those odds. That's what made Money is all about. I like to say, as always, bull markets. On my promise, I find just for you, right here, Mad Money. I'm Jim Cramer. I'll see you tomorrow.

[Narrator]

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 opinion. 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.