← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 8/6/26
00:44:18
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:00]
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- [01:02]
Jim Cramer
My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to make a little bit of money. My job is not just to entertain, but do a little teaching. So call me 1-800-7-for3 CBC. Tweet me Jim Cramer. Themes. I love themes. They help you craft a portfolio with the wind at their backs, not in your faces. The kind of stocks that you can confidently buy more of. When they go down, that's important. You know why? Because at some point they all go down. And the best time to discover which themes are working is during earnings season. Closer to the tail end. The themes often determine the the day. Especially listless day like today. Dow dropped 464 points. S&P dip 0.18%. Nasdaq declined 0.06%. I've been waiting for this point in the earnings season, for the themes to emerge. And now they are here and I can reveal them. The first themes. Totally counterintuitive. I mean completely. The consumer is incredibly strong right now. Now we've been told over and over again the consumer totally stretched, whacked by less government assistance, huge jumps in inflation. But this earnings season, the companies are saying otherwise. It all started with the banks for two years consumer banks, bank of America, Wells Fargo told us that consumers of all economic levels are feeling positive and have money to spend with their means within their means. Not taking down a lot of debt, healthy, good balance sheet. Now frankly I didn't see this coming. Look, I knew that American Express, I knew that there there'd be buoyancy because they got a rich clientele. But to see and hear the bookings and the Expedia CEOs in the last couple of days tell a tale of incredibly robust vacation in I'm calling that downright encouraging. Now it is true that post Covid there's been a production to travel that's the long memories or money short on time. I mean that's in other words like people came back from COVID and they said you know what, I got to see the world. But I thought that would have been a little transitory. It now seems Evergreen and the CEOs of Delta United Airlines they've embraced the storyline. Oh, I like Capital One cof as a way to play consumer spending now that it's merged with Discover to become a heavy hitter in the credit card space. There's opportunity there. Hey, you know what? The stock of America's Press is down 7% for the year. I like that to Capital One is down 9%. I think either can fit in your portfolio. I think both are going higher. What else? Williams, Sonoma and Ralph Lauren, two high end retailers, big beneficiaries of a strong consumer. I like them both. Ralph Ward report a terrific quarter this very morning. Remarkable job. More that one later second theme. All right, look, we know and you heard about it all day on the network. There is a shortage of every kind of memory in the universe. The data center, owning the companies who need memory, we know that can be dicey. As we know from the crazy action stocks so can owning the companies that actually make the memory. Ah, but owning the companies that make the machines that make the memory, wow. I think they're the most consistent and the most valuable because there are no worries about demand obviously. And they're all flush. The semiconductor capital equipment troika is Lam Research, KLA and Applied Materials. It's very difficult to pick just one because they're so spectacular. Longtime viewers know that one of my all time favorite guest is Rick Hill. He's the retired CEO of Novellas which sold itself to Lamb Research. That makes me partial to them and it doesn't hurt. The CEO Tim Archer is from the Rick Hill coaching tree. But this is not an easy choice. I regard Gary Dickerson, the CEO of Applied Materials, as the most vocal champion of the group, which, let there be no doubt, is the real intellectual property behind American semiconductor food chain. These companies are the envy of the world people, including China, which we're constantly told is ahead of us in technology. No they aren't. At least not when it comes to making semiconductors. These three are our edge. 13 this is a really interesting one. I had thought that cybersecurity would somehow be commoditized or become the province of the hyperscalers or tech titans, the much more apt name for them, coined by the amazing J Sri La who built Arista Networks into a networking powerhouse. But no, this third theme is real. Leave it to the Chinese and the mischievous gremlins of the frontier. AI modelers like Anthropic OpenAI which seem to find ways in organizations that you never dreamed they could unless you have a bent for science fiction. Earlier this year we were thrown off the scent of this group. The group became heavily shorted because Wall street was too quick to believe the braggadocio of Dario Moda. He's the CEO of Anthropic. Everybody loves that guy. He told us that Anthropic could offer the best cybersecurity, which might be odd given that it knows how dangerous it rogue its own rogue agents have been. We know better now. So both CrowdStrike and Palo Alto networks have become go to stocks. They're not victims of a displacement. If AI powered hackers make them more essential than ever, they are some of the best stocks in this entire market. I've been deep into the scene for the Chapel Trust which you can follow along by joining the CMC investing club. And we just took some profits because we're up 100% on both Palo Alto and CrowdStrike. In the end, we live by the creator that bulls make money, bears make money, but hogs, they get slaughtered. I mean you got a double, you're being hog if you don't take something off the table. Here's a big thing that right now really only impacts two large companies pent up demand for mergers and acquisitions. Now the Biden era of overzealous antitrust enforcement has been replaced by the Trump era of almost non existent trust enforcement. Most companies don't believe this moment can last, so they're taking advantage of it to make deals. When the summer's over, I believe we're going to come back to see some blockbusters that are on the order of that rumored AstraZeneca bid for Bristol Mars or Stripes for a real bid for PayPal. I know the targets in these cases may not be interested in merging, but the potential acquirers, oh man, they're all set. They seem very interested and I think they're willing to pay up. How do you play this merger mania? Not by picking potential targets. That's a sucker's game. Instead, you should buy the stocks of the companies that enable these deals. And well, why not Goldman Sachs and Morgan Stanley, both of which have terrific M and A departments. This M and A advisory business is a gold mine. We're talking tremendous earnings per person and therefore earnings per share. Finally, tech's had such a run that portfolio managers want exposure to other sectors of the market that still have innovation. Think of them as non tech tech stocks. For the club, the charitable trust club, we've been emphasizing Eli Lilly and Johnson and Johnson. And we talk about these from the I talked about at length with Jeff Marks today at our 10:20 call. They both had terrific quarters and deserve to be bought on any weakness. And BD's got plenty of med tech we're going to hear from later on the show. Amgen just racked up an excellent quarter and credit where credit's due. Time to accept that Moderna has begun to realize its dream of specialized vaccines for specific illnesses. Just said the company got received FAA FDA approval for its MRNA flu vaccine. Well, there's a reason why the stock's up 83% for the year. Of course, there are no guarantees when you do thematic investing, you may stumble into the wrong drug stock. Perhaps sales and trading can cause a setback. At Goldman Sachs, you. You buy a cruise line thinking that the consumers live in large. Then someone in the group reports a weak quarter and drags them all down. But the bottom line, I just think this quarter's information is fresh enough that you can pick a travel stock, a semiconductor capital equipment maker, a cybersecurity company, something that works in the M and a World, or MedTech, and you'll greatly increase your chances of making money for the rest of 2026. That was easy. Jeff in Colorado. Jeff? Yeah, thanks for taking the call, Jim. And the past. You recommended Bristol Myers. I've held it since you recommended that the last 30 days. There's merger rumors that's pushed the stock up. Would you buy, hold or sell it? I actually given how much that even an aggressive acquirer like AstraZeneca was willing to pay, it's probably worth it to trim. I just don't see as much upside. Look, it's not an expensive stock as a 3.9% yield. But there are others that are better, including J, which I like much more. Let's go to Ian in North Carolina. Ian, Jimbo. What's cracking? Not much. Just cooking around with you.
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Caller/Viewer
Good.
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Jim Cramer
Yeah, doing well. Axon just reported earnings. Stock got hammered afterwards. Buy, hold or sell? No, no, I don't want to touch it. It may have. It's only down 8%. But it's been an amazing performer for so many years. The stocks had too big a run. I want to move elsewhere. Let's go to Debbie in Georgia. Debbie.
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Caller/Viewer
Hey, Jim. First, I always have to say thank you for all that you do. So thanks for that. And now I'll get into my question. So I watched you guys on squat come the street this morning. So I have a pretty good idea what's going on with the stock and that it also may be a long time before it recovers from the big mistakes they made. But in the spirit of educating us, when we have the benefit of a split, we didn't necessarily pay for it. But how do you evaluate when it's worth letting go of? And I'm talking about Honeywell Aerospace. When do you let go?
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Jim Cramer
Or we let go of it because
- [10:31]
Caller/Viewer
you're playing with the house money first.
- [10:33]
Jim Cramer
It's a great question, but I felt. Didn't feel it was house money. It really hurt us. Both Phil LeBeau and I were stunned. Phil said three times that David could have told us that things were bad. I called management and I said, well, management called me back and said, look, I said, listen, I think it's very suboptimal situation. I really don't like the situation. I think that the company should have been much more forthcoming. I think it was a rookie mistake. We sold the stock at the opening for the Travel Trust. It is a great company, but man, they are not ready for prime time. And it was very disappointing. All right, earnings season is the time to reevaluate the themes you're participating in and prepare yourself for the rest of the year. I just gave you some good ones on my money tonight. Medical device maker BD just bought a strong quarter as I told you. What's ahead for this company then? Constellation Brands has been in the doghouse for a while, but latest earnings shows it's not the last call for this stock yet. I think it's darn cheap. Let's get the details with the company stuff for us. And Acamai Technologies on the move after earnings. I'm gonna sit down for an exclusive with the security provider CEO. So stay with Kramer.
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Mad Money Announcer
Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer hashtag Mad Mentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743, CNBC. Miss something? Head to madmoney.cnbc.com
- [12:07]
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- [12:40]
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- [13:09]
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- [13:34]
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- [13:45]
Jim Cramer
This morning got a very strong quarter from bd. That's the big medical technology and supply play now that was formerly known as Beckton Dickinson. This was the first full quarter if they split off their biosciences and diagnostics business. Something we loved. They posted a 9 cent earnings beat off a $3.14 basis higher than expected revenue, up 5.4% year over year. They also said their full year revenue growth would be toward the high end of their previously issued guidance. Raised the low end of the earnings per share outlook and that's why the stock jumped almost 4%. Even if this move though, BD still trades at roughly 14 times forward earnings estimates, which is pretty darn cheap. So let's take a closer look with Tom Poll, Chairman, Presidency of BD to learn more. Paul, welcome back to Bad Money.
- [14:25]
Tom Polen (BD CEO)
Thank you for having me, Jim.
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Jim Cramer
So when you first told us about the split off, I said well this could be making it so it's a really clean good company and the shareholders will it work out for everybody? And it did exactly what you said was going to do.
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Tom Polen (BD CEO)
I think you're seeing this is the first full quarter of the new BD and you're seeing it perform exactly as we've designed it to do. We saw a speed on revenue on EPS raise the midpoint of our EPS guidance. And I think what's most exciting is you saw 90% of our portfolio grow high single digits. We spent the last five years developing a number of different growth platforms and we had six of those double digit growth in the quarter.
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Jim Cramer
Well that's terrific. And I, from what I looked at when I went over the portfolio, these are consistent, these could be secular growers for a very long time.
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Tom Polen (BD CEO)
Right. So we actually stepped back again over the last several years and looked at where health care is heading.
- [15:11]
Pantene Advertiser
Right.
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Tom Polen (BD CEO)
And to your point, there are secular transformations in health care. Connected care, AI, robotics, moving care into the home are all trends that we've positioned ourselves to be leaders in. And those are the areas that you see Our connected care business, our advanced patient monitoring business that uses AI delivering GOP1s has been a rapidly growing business. We saw that up high teens this, this past double high double digits this quarter. And so those trends we see having a long Runway.
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Jim Cramer
Well, let's talk about the GOP because everyone knows it from Lily yesterday, it's just a booming business. Some people say Jim, you like bd but that those, there's no real moat to that. And I said actually I think they're far more complicated than you realize.
- [15:53]
Tom Polen (BD CEO)
Certainly obviously everyone's familiar with GOP ones are not as familiar with how you deliver those. And that's something we've built expertise in how you do that quickly, easily keep the drug stable. And from a capacity perspective, we typically have five to six times the capacity than the number two player in that space. And so if you've got a booming product and you need capacity, you need someone that you can trust to keep up with the demand. There's no better partner than people.
- [16:18]
Jim Cramer
Syringes can be very profitable.
- [16:20]
Tom Polen (BD CEO)
Quite. And we've built that again that capability over the years. They're about at the company average.
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Jim Cramer
I mean everybody, it's kind of one of the reasons why I like to the split off is you're number one in every one of these categories, we're
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Tom Polen (BD CEO)
number one in 90% of the markets in which we can.
- [16:32]
Jim Cramer
So then that brings me to a strange point. Point. I typically don't talk about multiples with CEOs, but I wrote a book about it and felt like, you know what, I wish they talked about a little more because. Because it has to do with historical valuation. I have never seen your company stock been as cheap and I have never seen the portfolio been as strong. So maybe you can explain to me what the market doesn't know. And you know, obviously the market got
- [16:57]
Tom Polen (BD CEO)
smarter today, so I think the market hopefully will continue to get a bit smarter. You've seen some secular rotations out of Medtech overall, as there's into AI, etc. You're starting to see that come back in right. Medtech overall and certainly be as a bellwether when it comes to just durable consistency. It's an area 90% of anyone going into a hospital would be touched by. Our devices. We make 35 billion devices a year that are used millions of times a day. In fact, 90%, 95% of our revenue is recurring consumable devices. But that is a business that, to your point, deserves a higher multiple. And with the innovation and growth where not only are we the company that's a backbone of health today, but we're helping transform health care for the future in the way that I've discussed.
- [17:39]
Jim Cramer
Well, let's talk about, you know, give it a choice. Liberty chip stent graft, the. The thorium fiber laser system. These are yours, only yours. And they sound like that. No one else is even in those categories.
- [17:52]
Tom Polen (BD CEO)
Yeah. One of the other products we announced launching today is a new advanced patient monitoring technology, which is a minimally invasive technology, uses AI. And these are the types of technologies that we're really seeing take off this. This is $1 billion business. We have grew double digits in the quarter. This is technology that are wearables for a patient in a hospital. You combine what's happening in their body, the measurements we're getting off the sensors, and we're combining that with artificial intelligence to predict what's going to happen to them 15 or 20 minutes before it actually occurs in their body. That allows doctors and nurses to intervene to prevent things like major blood pressure drops, organ damage, rather than reacting, rather
- [18:31]
Jim Cramer
than wait for those beeps to go off and they run in.
- [18:34]
Tom Polen (BD CEO)
And so we can say someone's blood pressure is going to drop 15 minutes before it actually happens so that it can be prevented from ever happening in the first place. And we're seeing a big surge in demand for those types of technologies. And we have were by far the number one leader in bringing those to market.
- [18:49]
Jim Cramer
Okay, talk to me about Pure Wick. It does matter. Intervention grew 5.5% solid mid single digit. But it's again, you own this business
- [18:58]
Tom Polen (BD CEO)
is a phenomenal product. There are hundreds of millions of people with urinary incontinence and it's a very personal condition that people have to deal with both in the hospital but also at home. And this product, Purewick has now 35 consecutive quarters of double digit growth. We've been now it's reimbursed for all veterans in America. We've put in a dedicated sales team to help the veterans. We're seeing that really ramp up here lately. And we're continuing to get more and more reimbursement expansion for that product in the marketplace. We continue to see a long Runway ahead.
- [19:27]
Jim Cramer
And just talk to me about a little more about connected care and automation as people. I mean, look, I think it's really important. I don't want to overdo it, but that seems to be real when it
- [19:37]
Tom Polen (BD CEO)
comes to bt, you know, we've invested in a platform called Ancata, which we have over 3 million smart devices in hospitals today. And on Kata is our AI platform that takes all the data from those systems and turns it into actionable information to clinicians. It also is doing things like we have more than 10,000 pharmacy robots that are preparing prescriptions, helping to ease where you can't get a pharmacist. There's very significant labor shortages around the world. Again, we're using AI to make sure sure that the right pills are going to the right patient and helping to eliminate medication errors. So we have a systematic approach to apply AI to all of our smart technologies. Again to make patients safer, to get better quality care and to do it cheaper for health care systems.
- [20:19]
Jim Cramer
Well, Tom, look, I salute you. Anyone who comes on the show and says this, we're going to do this reorganization and it turns out to be absolutely loved by institutional shareholders as it's turning out to be what you told me would happen. And it's just beginning. I really do appreciate it and our viewers do too. This was a great call by you. I know it wasn't easy, took a little time, but got it done. You got it done. All right. That's Tom Poland, President CEO of the new bd. Because I got to tell you, this is one that is going to bring out a lot of value. I love this part of tech and it's not worth. You don't have to worry about memory and memory shortage and money's back after the break. Thank you.
- [20:58]
Tom Polen (BD CEO)
Thank you so much.
- [21:00]
Mad Money Announcer
Coming up with Constellation brand stock still looking hungover, is now the time to buy into the alcohol giant? Kramer's asking the CEO next.
- [21:13]
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- [21:46]
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- [22:14]
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- [22:15]
CDW/Dell Technologies Advertiser
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- [22:17]
Jim Cramer
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- [22:31]
Jim Cramer Disclaimer
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- [22:37]
Jim Cramer
Go to prettylitter.com today. Pretty litter not just a pretty litter. What's it going to take for the market to start warming up the Constellation brands again? Beer, wine, spirits. You know it is Modelo, Corona Pacifico. It's more than cut in half from its highs in the spring of 2024. Now some of that's due to industry wide weakness. Some of it's thanks to the Trump administration's immigration crackdown because Constellations cost were based leans Hispanic but at this point the stock sells for less than 11 times this year's earnings estimates. Pays a 3.1% dividend yield. Company also is under new management with Nick Fake. It's formerly CEO of Fortune Brands Innovations taking over in April. Now at the very end of June, Constellation reported what looked to be pretty good quarter better than expected sales and earnings better than feared volume numbers from the cork beer business. Management also had positives say about the World cup meant for business but it's pretty important. But because Constellation didn't raise its full year forecast, the stock, I think that's why it got hit. Hit, Languishing. So could this be the buying opportunity or do we still need to be cautious with this one? Let's check in with Nick Fake, the new president and CEO of Constellation Brands to find out.
- [23:44]
Mad Money Announcer
Mr.
- [23:44]
Jim Cramer
Fig, welcome back to money.
- [23:45]
Nick Fink (Constellation Brands CEO)
Yeah, thanks for having me, Jim. It's great to be here.
- [23:48]
Jim Cramer
I'm looking at what I think are the fastest growing brands in the business and I say to myself, beer never really lost its luster. We could talk about some others, but that's not what we're going to. These are great brands, really moving brands. How come people don't realize that there's genuine growth here?
- [24:05]
Nick Fink (Constellation Brands CEO)
Look, I think the category has been challenged because the consumer's been challenged, right. It's been a tough couple of years, inflation, etc. And you're seeing that in some of our consumer data. As you said, we lean Hispanic, right? That is a long term tailwind. But the last couple of years it's been a headwind.
- [24:21]
Jim Cramer
Right.
- [24:21]
Nick Fink (Constellation Brands CEO)
As that clears, you'll start to see the growth come through.
- [24:25]
Jim Cramer
Now I mean, I know that is involving immigration policy, but at the same time you've got a tremendous affinity all over the country for, for Modelo. I mean that's been one of the great growers of all time.
- [24:37]
Nick Fink (Constellation Brands CEO)
Yeah, well, amazing thing about Modelo, now the number one share in the United States. Number one beer by value, but yet still distribution gaps to the big domestics, still awareness gaps to the big domestics. So we're still scaling this brand. A lot of room to go.
- [24:52]
Jim Cramer
Now this is more. My favorite is one I drink from when I my bartender gal days. And it has, it's roaring right now
- [24:59]
Nick Fink (Constellation Brands CEO)
on fire, completely on fire. Just entered the top 10 beer brands. So of our four brands now, three are in the top 10. Corona, Pacifico and Modelo.
- [25:10]
Jim Cramer
A lot of people tell me this is the fastest growing of the non alcoholics.
- [25:14]
Nick Fink (Constellation Brands CEO)
It's also, it's doing really well. I think we can put more behind it. I think we should put more behind it. But that is a subset of beer that is doing well and we have amazing liquid within that. And so we've seen this thing grow into the top three, but I think we're just getting started. You have category growth and then you have a great brand, a great liquid behind it. Tastes just like Corona.
- [25:34]
Jim Cramer
Absolutely. And it looks like Corona. But now let me ask you something. With all these great brands, why do we still need spirits.
- [25:44]
Nick Fink (Constellation Brands CEO)
Well, you've seen consumers move across categories more so than they ever have. You've seen our distributors move across categories more so than they ever had.
- [25:53]
Jim Cramer
Tell me what that means.
- [25:54]
Nick Fink (Constellation Brands CEO)
Well, for example, you've seen distributors that were historically beer distributors now carry beer, spirits and wine. You're seeing wine distributors now carry beer.
- [26:02]
Jim Cramer
Right.
- [26:02]
Nick Fink (Constellation Brands CEO)
And so you're seeing this convergence. The consumer is also moving across categories more than we've ever seen them do. So putting an innovation and consumer innovation insights engine behind multiple categories could be interesting. I think it's a tbd. There is work for us to do. There's no question we've done a lot to make the wine and spirits portfolio better. It's now growing way above market. I think we showed, you know, 8% growth last quarter. So really doing well. We have to work on profitability. That's next. But having our toe in those categories allows us to now be choiceful and disciplined about where we play across the board.
- [26:40]
Jim Cramer
But are Clears doing better than browns? I mean is the word, you know, wine doing better than, than bourbon, that kind of thing. Is there something it's still excelling in this moment?
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Nick Fink (Constellation Brands CEO)
You know, I think this, this brand's on fire. Maybe one of the fastest growing full strength spirit sprays, period. Huge growth there. On its way to be a multimillion case brand.
- [26:58]
Tom Leighton (Akamai CEO)
Wow.
- [26:59]
Nick Fink (Constellation Brands CEO)
As you know, that is hard to do.
- [27:01]
Jim Cramer
That's very hard.
- [27:02]
Nick Fink (Constellation Brands CEO)
But great liquor, great packaging, great price point.
- [27:05]
Caller/Viewer
Right.
- [27:05]
Nick Fink (Constellation Brands CEO)
So I think it's not incredibly low for this. It's accessible and that's where the consumer is today. And we started out there and now
- [27:12]
Jim Cramer
let's go back to beer for a second of GOP-1 ones lifestyle in terms of clean living, you know, a body as temple cannabis. Are all those overdone in terms of what turned out to be something that people just want. They want beer.
- [27:30]
Nick Fink (Constellation Brands CEO)
I'll give you my thoughts. I we look at the data, we interrogate more data.
- [27:33]
Jim Cramer
You have data, you have everything.
- [27:35]
Nick Fink (Constellation Brands CEO)
You're not seeing a ton in the data today on either cannabis or GLP ones. That said, I think it's our job to be vigilant as people change their lifestyles. We should be there to meet them. So for example, we're the leader in small sizes, right. We have a huge share of the seven ounce market. Right. We make these Coronitas Modelitos, right. That's a great vehicle for somebody who's looking to maybe have like a taco and a beer but just on the smaller size of their. If they're on JLP ones. So what we want to do as a team is really think about where is the future going. Track it. But, you know, there's also some thoughts it's going to lead to people going out more, they feel better, they're healthier. And then as we get further along, you know, to things like GLP3s, there may be some science that says it's less about appetite suppression, it's more about metabolism, it's more about muscle building. And that could actually open up some opportunities for us.
- [28:26]
Jim Cramer
Okay, now this. These kinds of beers kind of had a bad reputation for a long time, and I always felt like they don't taste that well. Now Monday through Thursday, if I want, if someone wants to watch a game like Monday Night Football, this is it. Because it tastes the same to me. Is it a rival to beer? I mean, is it or does it matter? Do you win either way?
- [28:46]
Nick Fink (Constellation Brands CEO)
I think we win either way. And look, look at Europe. At Europe, the category got to like 8 to 10%. The beer category in the United States is over 60 billion. So 8 to 10, 60 billion is a pretty nice category. We get our fair share of that. That's a lot of growth. So we went either way. But you're right, getting the liquid right is hard. And we're blessed with a great liquid team. You know, yeast eat sugar to make alcohol. So if you take that out, a lot of them are too sweet.
- [29:13]
Tom Polen (BD CEO)
Yes.
- [29:13]
Nick Fink (Constellation Brands CEO)
And that's what our team team was able to engineer. The exact taste of Corona without the alcohol.
- [29:18]
Jim Cramer
All right, well, when are you going to introduce my absolute favorite, which is Victoria?
- [29:22]
Nick Fink (Constellation Brands CEO)
Well, as a non alcohol or just
- [29:26]
Jim Cramer
in the market, doesn't matter. It's gorgeous bottle. It's a really premium brand.
- [29:29]
Nick Fink (Constellation Brands CEO)
Victoria is growing as quickly as this from a smaller base. Very authentically Hispanic. Yes, very authentic. So we may not advertise Victoria in English for years to come. It speaks to people seeking out, you know, that piece of the culture. We're doing some things that are pretty refreshing and colorful and in your face. I love that brand.
- [29:51]
Jim Cramer
Fantastic. It's incredible during when I'm down in Mexico, don't see it here much, but that's great. Now let's go back to what I originally said, which if you had given us a guidance boost, I really think that maybe the stock could have been higher. But are you circumspect about.
- [30:05]
Nick Fink (Constellation Brands CEO)
It's a volatile environment. I mean, we saw great March, then we saw it slow down, then we saw it pick up a little bit and we just felt we Want to play the year through a little bit and see how things turn out. With gas prices still up 35% over where they were, you know, back at the start of the year. So we want to just wait and see. But our growth relative to the market is accelerating. We're putting more money behind Corona, we put more money behind Modelo this year. We got great activation so we're seeing that gap get wider and, and wider. You know, we just posted in the last four weeks so you can see the circana data, some really nice growth the market. And so I think a we're building that head against, against that gap against the market. And then in addition, I think as things ease a little bit, these are premium brands.
- [30:53]
Jim Cramer
Right.
- [30:53]
Nick Fink (Constellation Brands CEO)
You'll see people start to flow back into the premium brands.
- [30:56]
Jim Cramer
Okay, so the 21 to 25, where are they it with yours? I mean, you know that that young demo which I was afraid was going to stay away from beer is not staying away.
- [31:05]
Nick Fink (Constellation Brands CEO)
They're not staying away from beer. They're more occasion based though. They're less every day I have one there's a moment. So it might be once a week, twice a week, three a week we go out and so we have to help create occasions. Right. In New York, the Knicks was a huge occasion.
- [31:20]
Jim Cramer
Yes, right.
- [31:21]
Nick Fink (Constellation Brands CEO)
The World Cup's been an occasion. You've seen on premise numbers go up and so you, you don't have to create occasions on that scale. We go back to music festivals, we go back to the beach where Corona lived. Go back to creating moments, not just expecting people to pick it up. You'll get that consumer.
- [31:36]
Jim Cramer
You're a very hands on manager for these. It's good. I think that there was a sense that they just sell themselves, but not in the new world.
- [31:44]
Nick Fink (Constellation Brands CEO)
No. You got to fight. You got to fight for your share.
- [31:45]
Jim Cramer
You do.
- [31:46]
Nick Fink (Constellation Brands CEO)
It's going to fight for sure. But we got great partners and distributors have been out in the market all over, you know. And Constellation Brands we just topped the distributor survey first time ever. You know, number one for relationships with our distributors and you can see that in the field just how strongly they feel about the portfolio.
- [32:02]
Jim Cramer
I do incredibly important. I know for the business. How much is you want that relationship? Well, Nick Fink is running Constellation Brands stz. I don't know. I think it's the time is right. How about that? Everybody's back at the.
- [32:21]
Mad Money Announcer
Coming up, could Akamai Technologies be the next big winner of the AI Age? Kramer's meeting with the top brass to find out next.
- [32:37]
Jim Cramer
Look at this incredible move in the stock of Akamai Technologies. Over the past few years, this company's evolved from a simple content delivery network. I used to call it the fast lane on the Internet super highway, into more of a cybersecurity and cloud infrastructure business. Fast growing. Going to the close, Akamai was already up more than 35% for the year. Then they reported basically in line revenue, slightly better than expected earnings, mixed outlook. Current quarter trimmed, full year forecast just a tad. And this stock got slammed, but then it caught fire. I think there's Akamai reported a big cloud infrastructure win in the robotics space. So let's take a closer look with Dr. Tom Latent. He's the co founder and CEO of Akamai Technology. Get a better sense of the quarter and when it comes next. Dr. Layton, welcome back to Matt Money.
- [33:16]
Tom Leighton (Akamai CEO)
Thank you. Nice to be here, Tom.
- [33:17]
Jim Cramer
I can't believe it's been five years. And I'm just going to quote for your conference call tonight because the call was so huge. Akamai has long been known for operating the world's most distributed platform for content delivery and cybersecurity at global scale, with a reputation for liability, quality and trust. And now we're leveraging our global footprint and years of experience serving the world's largest enterprises to do the AI driven economy. What we have done for the cyber security and content delivery, it's huge what you're doing. So that background tell us.
- [33:47]
Tom Leighton (Akamai CEO)
Oh, it's huge. So we're unique in being able to support the AI infrastructure needs from core to edge, so that whatever task you have, whatever agent you're working with or model, if you need to train it, okay, maybe we do that in the core, but the real usage, the day to day uses, is inference, where that model is being queried. It's telling a robot to do something and that you want to do close to the robot or close to the user. So it's fast and scales and is efficient.
- [34:16]
Jim Cramer
Now why is that better than having these gigantic massive data centers?
- [34:20]
Tom Leighton (Akamai CEO)
Well, the massive data centers are fine for training the big foundation models, but they're not near the robot, they're not near the user, and so it's going to be slower. And if that robot is looking at things like it's a car and it needs to see, you need to process that video. And to do that at scale, you can't do that in a data center. Just like you couldn't distribute big sporting events from a data center, you got to do it from the edge.
- [34:43]
Jim Cramer
Now this is something that's being validated, including a 600 million four year deal for Cloud infrastructure tonight. Yeah, yeah, we have.
- [34:52]
Tom Leighton (Akamai CEO)
Yeah, there's a lot of customers using this platform growing very rapidly and that's what enables to say our overall growth rate is going to accelerate.
- [35:01]
Jim Cramer
Well, if we believe in robotics, it's not been able to, you know, they're obviously Musk has robots, but nobody else. This might be a great way to be able to get involved with robotics is to get. Is to go through Akamai. Well, yeah.
- [35:14]
Tom Leighton (Akamai CEO)
Robots are not just cars. I mean used in factories, sensing to see what's going on. Alerts, alarms, everything, you know, is being automated through AI.
- [35:23]
Jim Cramer
In the meantime, the core business is good. You won. To me, the one of the best cybersecurity companies, Crowdstrike chose you. Big win.
- [35:30]
Tom Leighton (Akamai CEO)
Yeah, no, they care a lot about security and reliability. So that was a very strong endorsement of Akamai cybersecurity capabilities.
- [35:37]
Jim Cramer
And how about this partnership with Nvidia? I think it's big.
- [35:39]
Tom Leighton (Akamai CEO)
Oh, it's huge.
- [35:40]
Jim Cramer
No, tell me how that's working.
- [35:42]
Tom Leighton (Akamai CEO)
It's fabulous. I think, you know, they've long had a vision that being distributed matters.
- [35:47]
Jim Cramer
Yes.
- [35:47]
Tom Leighton (Akamai CEO)
And that getting the compute the inference close to the user so it can be fast and scalable, that makes a big difference. And I think Jensen has been very clear on that point and we fully agree.
- [35:58]
Jim Cramer
So Tom, why did they choose you?
- [35:59]
Tom Leighton (Akamai CEO)
I think because of our distributed platform.
- [36:03]
Jim Cramer
We work together, working on this the whole time that you're doing the delivery. I know that because the one thing I will say is when either we're going to see some resources results on this business because I know that people are going to watch you say, well, wait a second, I don't know whether it's a needle mover yet.
- [36:18]
Tom Leighton (Akamai CEO)
Oh, it's going to be a needle mover this year. Well, in Q4 you're going to start to see it really accelerate and into next year. And you're going to see, I believe Akamai's overall growth rate is so strong power the whole company to grow a lot faster.
- [36:31]
Jim Cramer
Do you have a line of sight for more deals than what you've announced
- [36:34]
Tom Leighton (Akamai CEO)
so far in this very strong pipeline? Really, you know, the guidance we gave is based on what we got pretty much, but a very strong pipeline and interest in our capabilities.
- [36:42]
Jim Cramer
And just tell me, I do want to know about the core business. It's not, it's not falling apart. I mean, I know you had the guidance that was a little tepid. I Mean, are things okay in that core business or should we just really be thinking about this new business? And that other business is just steady
- [36:57]
Tom Leighton (Akamai CEO)
and fine, the delivery business, you know, pretty steady and fine. We're the world's best and largest. It's very synergistic with our security business, which is doing great.
- [37:06]
Caller/Viewer
Right.
- [37:07]
Tom Leighton (Akamai CEO)
And now the compute business, cloud, really on fire.
- [37:10]
Jim Cramer
So look, you're a historian of this group now, because I've known you from when I started the street.com. where do you think we are? Do you think we're all overbuilding? You believe all this stuff? Is it like the railroads in the 7 1870s, or is it pretty solid from your point of view?
- [37:23]
Tom Leighton (Akamai CEO)
I think I. We're probably first inning. Yeah, we. It could do a lot more things. We're just getting started and it's moving so fast. AI is here to stay.
- [37:32]
Jim Cramer
And do we have to worry about all these. So many people we mention all the time in the morning, Worry about the gremlins, worry about them taking over, worry about. About cybersecurity in a way that right now we're not prepared?
- [37:43]
Tom Leighton (Akamai CEO)
You do got to worry about it. You do have to know, because, you know, bad guys are using AI and it can be used to discover vulnerabilities. It can do bad things in the wrong hands. In fact, it's been a big tailwind for our security business because there are going to be a lot more zero days. And so I can't tell you how many conversations I've had with CEOs and CISOs of the big companies around the world scrambling to get prepared to get all their properties behind our web app firewall, because we can protect them. We see the zero days first we update our firewall rules so they have time to patch before they get hit.
- [38:19]
Jim Cramer
Could the robots be reprogrammed by bad guys?
- [38:22]
Tom Polen (BD CEO)
Oh, sure.
- [38:22]
Tom Leighton (Akamai CEO)
If they get in and hack them, absolutely.
- [38:24]
Jim Cramer
And you have the way to be able to stop doing a lot with
- [38:27]
Tom Leighton (Akamai CEO)
security to stop that, to stop the penetration. And when there is the penetration and there are a lot more to keep it from spreading. That's why micro segmentation is so important.
- [38:37]
Jim Cramer
Now, how did you pivot? I mean, I know you as being very strong, obviously, in your core content business, and you've just been working on this for a long time.
- [38:47]
Tom Leighton (Akamai CEO)
Yeah, no, you know, we've been working on compute function as a service for a long, long time. One of the first to do that, and it's really been over the last five years, a big investment in our core cloud computing stack so that we can really fairly compete with the hyperscalers.
- [39:02]
Jim Cramer
But. But Mythos might help you too, Correct?
- [39:05]
Tom Leighton (Akamai CEO)
Well, that is a tailwind. Absolutely.
- [39:07]
Jim Cramer
And it's serious. And it's there and it's real. Wow. I don't know, Tom, I got to tell you, when I saw you coming on, I said, geez, you know, Akamai has been around for a long time, but this. It's almost like this is a brand new Akamai. I'm not kidding.
- [39:20]
Tom Leighton (Akamai CEO)
It's a brand new application domain. It's the same principles of a massive distributed platform.
- [39:26]
Jim Cramer
You're probably right. I mean, why do we need these? Look, I think. I think the world of matter, but giant energy project in Louisiana. Gigantic May not be the right way to be able to. To talk to the robots.
- [39:40]
Tom Leighton (Akamai CEO)
Well, you know, there's a role for the big data centers.
- [39:42]
Jim Cramer
Absolutely. Because that's a train. Need to train. Yeah. But for inference, maybe we should be right next to him.
- [39:48]
Tom Leighton (Akamai CEO)
Yeah.
- [39:48]
Jim Cramer
Wow. I got to tell you, Tom, this is so exciting. It's Tom Layton, co founder and CEO of Akamai Technologies. AKA I'm not kidding. For real. That money's back after the break.
- [39:59]
Mad Money Announcer
Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast fire lightning round. Next. Tomorrow, kick off the trading day with Squawk on the street. Live from post nine at the nyse.
- [40:22]
Jim Cramer
I like Viking Vik, if you want.
- [40:24]
Nick Fink (Constellation Brands CEO)
You've always liked Viking.
- [40:25]
Jim Cramer
Oh, my God. Because they have no kids and no gambling.
- [40:28]
Mad Money Announcer
That's what I want.
- [40:29]
Empower Advertiser
No gambling.
- [40:30]
Jim Cramer
Although. Would you be buying here?
- [40:31]
Mad Money Announcer
Yes.
- [40:32]
Jim Cramer
You would? Yes, I buy some. I mean, that's like the old time. Yeah.
- [40:37]
Mad Money Announcer
It all starts at 9am Eastern.
- [40:47]
Jim Cramer
It is time. It's after the light. So we are.
- [40:52]
Mad Money Announcer
No, course not.
- [40:52]
Jim Cramer
Creating my steppers grabs you playing yourself. And then the lighting round is over. Are you ready? Ski dads and light. We're coming right over. Steven, Ohio. Steve A. Jim. Steve from Canton, Ohio. Canton, Ohio man hall of famer hof. Speak to me tonight. Absolutely. Well, I want to ask your opinion on AMP stock merit price. All right. This thing is always cheap. I don't get it. 52 week high again. I think it's a fantastic stock. People ask me about something advisory. I say, how about Amer prize? There you go. Let's go to Naomi in New York. Naomi. Hey, Jim.
- [41:30]
Caller/Viewer
Love your show.
- [41:31]
Jim Cramer
Thank you.
- [41:32]
Caller/Viewer
Wanted to ask you about I R
- [41:34]
Jim Cramer
E N sticker symbol. I R E N. If you like Iran. I'm sorry? If you like Iran. You Gotta go by Corey. Of course. Cheaper and better. Okay, let's go to Michael in Illinois. Michael. Oh yeah, Jimmy.
- [41:47]
Tom Leighton (Akamai CEO)
Glad you're feeling better, buddy.
- [41:48]
Jim Cramer
Yes, thank you partner. Thank you very much. Question. With with Eli Lilly's interest in this stock, should I buy, sell or hold atai or should I over some of the bigger. It's Kaching. Kaching. I'd rather have you own Eli Lily itself or J and J. That one's done. It's played out. It's done.
- [42:08]
Tom Leighton (Akamai CEO)
Thank you.
- [42:08]
Jim Cramer
Let's go to Edward, Ohio. Edward. Hey, how you doing? Jim, about Lockheed Martin. Well, that's great. I'm very interested in the stock because it being a sky defense company and the fact they pay $3.45 per dividend. I'm wondering what is your. Your long term outlook on it? I have a choice? I think it's sensational. I think it's sensational. I think the CEO is fantastic. I think you buy Lockheed Martin, you do just fine. I really think it's a good one. Let's go to Drew in Florida. Drew. Hey Jim, how are you doing? Thanks for taking my call. Of course. Drew, what's going on? Want to know your take on Thompson Reuters Corporation? Man, that stock is always cheap and that's the problem. It's like a value trap. I think maybe could bath a little bit. I just, I do not like that sector because there's just too much competition and not enough intellectual property. Let's go to Kellen in Marilyn Kellen.
- [43:07]
Nick Fink (Constellation Brands CEO)
Hey Jim.
- [43:07]
Mad Money Announcer
Booyah.
- [43:08]
Tom Leighton (Akamai CEO)
Longtime listener.
- [43:10]
Jim Cramer
Excellent. Hey Jim, the question I have I bought this stock for $2 in 2025 or pivoting hard from Bitcoin mining into high performance AI data centers. Is this the premier power landlord trade
- [43:23]
Tom Leighton (Akamai CEO)
for AI or are you worried about their short term earnings drag and big capex debt load?
- [43:29]
Jim Cramer
The ticker is cifr. I'm worried about exactly what you said. I mean as it is I like Corey and that's got a ton of debt. I think you're. I think you steer clear of cyber digital. I really do. And that legend of the conclusion of the Lightning round.
- [43:45]
Mad Money Announcer
The Lightning round is sponsored by Charles Schwab. Coming up, one fashion brand is putting on a clinic on how to craft earnings and Kramer's breaking down how they do it.
- [43:57]
Jim Cramer
Next. Booyah. Jim Cramer. I'm a first time caller, a happy club member. I want to thank them for being the people's champion of investor. Thank you for helping me become a millionaire. Every time Ralph Lauren reports, CEO Patrice Lavey puts on a Clinic. Lots of times people ask me what I want from a conference call and how to make money in any market. I wrote at length about what I'm looking for. Were and Ralph Laurens Levy checks all the boxes. They can tell their story better than anyone. Demonstrated by today's results, which send the stock story $15 or almost 4%. Why are his calls so amazing? Why are they so storytelling in nature? First, the results are fantastic. Handily beats the estimates for earnings per share and revenues. That's table stakes for any company that wants the stock to go higher. If you can't beat the numbers, you're going nowhere. Then you have to have rising gross margins once again. Lewet does it endlessly. Like any exec who comes from the old discipline Procter and Gamble, as he did 11 years ago, he's got some simple messaging that everyone can understand right through the organization. First, elevate your brand. Second, drive the core and expand for more. And third, winning key cities with his consumer ecosystem for the first Louvre makes sure the Ralph Lauren brand embraces the highest end sports. From polo playing in China to affiliating with events in Japan and events in the Hamptons at Pebble Beach, Milan. Aspirational events all. But to me, what's most surprising is the incredible success this old company has with a new way to get younger people behind the brand. In the first quarter they added 1.5 million people to reach 70 million social media supporters. Using Instagram line Do Yeon and TikTok. Lopez says the secret sauce here again is cinematic storytelling. Second, drive the core and expand for more. He talked about new apparel offerings from foundational sweaters, linen oxford, seersucker shirts and caps. But then there's the high potential women's initiatives and a special release like the Wimbledon collection. All within the standards created by Ralph Lauren himself. High standards. Finally, his winning key city strategy I think is brilliant. Ralph Lauren is a globally sophisticated brand. So you have to hit your sophisticated customers where they live. Then they're the comps. First quarter, same store sales in North America rose 9%, led by full price channels, so they didn't have to discount the merchandise to get it off the shelves. Europe wasn't that strong, up 5%, but it was up, which is a lot more than I can say about anybody else. In Europe, global same store sales increased 12%. Asia leading the way up an astounding 23%. China, so small, but up 40%. Again, full price. With retail, it's all about inventory management, how they do well. Net inventory declined 3%. And of course you need expense control. Ralph Lauren has that in space, which helps the curating margin, helps the operating margin, causing it to spare by 170 basis points. All right, look, retail is really hard. That's my background. I know how difficult it is does make it look easy. It's amazing that he actually tells you everything he does, but then again, you can't really copy their playbook unless you already have a brand that's as well. Like this Ralph Lauren. Honestly, this conference call was so educational. I wish I had put it in my book instead of the Procter and Gamble call I highlighted. Although Louve's a proud Proctor alum, I'm always looking for a call, especially in retail, that can give you every one of these points so it can teach you. It's not easy, especially because Ralph Lauren's timelessness, but there's nothing wrong with striving for greatness for anyone who aspires to own a retail stock. Before you take a position one I'm begging you to read this Ralph Lauren conference call to see how great this can be delivered. It's the highest praise I can offer. I like to say there's always a book market summer project financially. I'm Jim Cramer. See you next time.
- [47:49]
Jim Cramer Disclaimer
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its 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 Kramer 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
- [48:23]
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