Mad Money w/ Jim Cramer 9/15/25

Summary

Mad Money w/ Jim Cramer — September 15, 2025
Episode Summary

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Overview:

This episode of Mad Money sees Jim Cramer in classic form, guiding listeners through the challenges and opportunities in today’s volatile market. The show focuses on the resilience of the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla), the value of holding versus trading great stocks, Apple's ripple effect in American manufacturing, the Chewy earnings rollercoaster, and the evolving impact of AI data centers via Jacobs Solutions. The episode also features the popular Lightning Round, covering a wide variety of stocks with Cramer’s direct, rapid-fire takes, and closes with his perspective on the debate over quarterly earnings reports.

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Main Discussion Points and Insights

The Magnificent Seven: Are Their Best Days Behind Them?

[01:25–09:38]

• Cramer’s Thesis:
  Cramer opens by challenging the persistent refrain that the Magnificent Seven's best days "are behind them," arguing that this mindset causes investors to miss out on continued gains from these powerhouse companies.

• Key Arguments:

  • Excellent balance sheets with “all the money in the world” for innovation and M&A (01:53–02:13).
  • Unrivaled scale and global reach making them “incredibly hard to take on” (02:20).
  • Constant reinvention—Meta’s move from desktop to mobile, acquisitions (Instagram, WhatsApp), proving doubters wrong (02:33).
  • Insider confidence: Elon Musk buying $1 billion of Tesla shares (04:31).
  • Resilience to government scrutiny—Alphabet weathering monopoly charges (06:32–07:43).
  • The market regularly underestimates their ability to grow, innovate, and recover from setbacks.

• Notable Quotes:

  • “Their best days are behind them. Those may be the six most damaging words to your portfolio.” – Jim Cramer [01:25]
  • “Management hasn’t changed or there’s been a smooth transition, the seven still present incredibly compelling valuations, even now.” – Jim Cramer [01:38]
  • “No company is completely in control of its own destiny. But these seven—they come as close as anyone ever has.” – Jim Cramer [08:08]

• Cramer’s Advice:
  Own, don’t trade these stocks. “Their best days are still in front of them.” [08:23]
  Bottom Line: “The Magnificent Seven are heroes.” [09:38]

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Lightning Round & Listener Q&A

[09:38–12:50, 38:48–43:44]

• Listener Stock Takes:
  Jim fields questions on companies like Toast, United Parcel Service, Citigroup, and more.
  • Toast (TOST): “I actually thought the quarter was excellent… advocating patience because it’s still a great stock.” [10:05]
  • United Parcel Service (UPS): Expresses concern about the high dividend yield as a potential warning sign. [10:41]
  • Citigroup (C): Still likes Citi for its relatively low valuation and solid management. [11:20]

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Apple’s Ripple Effect — Interview with Tim Cook (Apple CEO)

[14:45–22:47]

• On Apple’s Domestic Investments:

  • Cramer and Cook discuss Apple’s multi-billion-dollar commitment to boost U.S. manufacturing, particularly in smaller towns like Harrodsburg, Kentucky.
  • The partnership with Corning and its impact on local economies is highlighted.

• Impact Beyond Apple:

  • Investment in manufacturing creates a domino effect, attracting more businesses (16:53).
  • Interplay between private sector initiative and government policy—Cook credits both as important, but emphasizes the role of enterprise.

• On Shareholder Sentiment:

  • Cramer asks if shareholders resent large capital investments rather than buybacks.
    • “Most of our shareholders believe that we’re in the best position to make these types of decisions…I haven’t gotten a single complaint.” – Tim Cook [18:32–18:52]

• China & India Relations:

  • Ongoing positive relationships with both countries, despite geopolitical tensions (19:49–20:19).
  • Engagement and open lines of communication prioritized.

• U.S. Policy & Tariffs:

  • Apple’s U.S. investments likely factor into ongoing tariff discussions with the government, but no explicit quid pro quo (21:08–21:27).

• Notable Quote:

  • “We are putting 600 billion to work in the next four years…79 factories across the US will benefit from this.” – Tim Cook [15:37]

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Chewy Earnings: The Selloff That Shouldn’t Have Been

[23:50–32:10]

• Stock Whiplash:

  • Chewy reports a strong quarter with positive guidance, but the stock falls over 16% due to higher SGA expenses and margin guidance.
  • Two analyst upgrades quickly follow, and the stock rebounds 7%.

• What Really Happened:

  • Higher spending attributed to a new, high-tech fulfillment center—Cramer sees this as an investment for long-term efficiency and profitability.
  • Dominance in subscription (Auto Ship) and growing Chewy Plus membership seen as key growth drivers (25:25).

• Private Label Push:

  • Launch of a private label dog food line “Get Real”—higher margin and well received.

• Cramer’s Call:
  “I think it’s crazy that Chewy sold off over 16% in response to a large and good quarter. These investments will make Chewy a better long-term investment. You have my blessing to buy it even after the rally.” [31:47–32:10]

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Jacobs Solutions & The Data Center Boom (with CEO Bob Ricard)

[32:10–38:15]

• How AI Data Centers Are Changing Construction:

  • Jacobs has been building data centers since 2007 but now designs “AI factories” with increasing complexity.
  • The partnership with Nvidia—building “digital twins” (virtual replicas of data centers) helps optimize engineering decisions, energy usage, and operational costs before construction begins.

• Why Experience Matters:

  • “There’s a bit of a moat that’s around that as well…history in data centers coupled with complex facility [experience].” – Bob Ricard [33:07]
  • Power needs are soaring; solutions include tapping local grids, on-premise nuclear or LNG generation, and battery storage to handle peak loads (36:07–36:53).

• Surging Growth:

  • Jacobs now benefits from the intersection of semiconductors, pharma (notably GLP-1 drugs), and AI—diversity fueling growth.

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Regulation: Trump’s Proposal to End Quarterly Earnings Reports

[43:44–47:18]

• The Debate:

  • Former President Trump calls for biannual reporting (every six months), following the example of the EU and China.
  • Cramer weighs both sides—less frequent reports could ease the burden on management and encourage long-term thinking, but investors would lose transparency and accountability.

• Notable Quotes:

  • “If you’re an investor, you want as much information as possible. Anything that allows companies to give you less data is bad for your portfolio.” – Jim Cramer [46:32]

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Notable Quotes & Memorable Moments

• “Own it, don’t trade it”—Jim Cramer, on long-term conviction in the Magnificent Seven [05:16]
• “I'm not going to tell you to sell heroes unless something changes that makes them feel a lot less heroic. That hasn't happened though.” – Jim Cramer [09:38]
• “Most of our shareholders believe that we’re in the best position to make these types of decisions…” – Tim Cook [18:32]
• “Chewy's giving you a free trial period of 30 days to try Chewy Plus. In the short term that’s going to put pressure on the margins of course. But longer term, I think it’s a great way to lure people in.” – Jim Cramer [29:02]
• “What Nvidia has asked us to do is be the design integrator...We did a digital twin. Now, you can simulate in the virtual space…” – Bob Ricard [34:15]

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Timestamps for Key Segments

| Segment | Timestamp | |-----------------------------------------------------|--------------------| | Magnificent Seven—Buy & Hold Thesis | 01:25–09:38 | | Listener Q&A / Lightning Round, Part 1 | 09:38–12:50 | | Apple in Kentucky: Tim Cook Interview | 14:45–22:47 | | Chewy Earnings Recap | 23:50–32:10 | | Jacobs Solutions & Data Centers (Bob Ricard) | 32:10–38:15 | | Lightning Round, Part 2 | 38:48–43:44 | | Debate: Quarterly Reporting Regulations | 43:44–47:18 |

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Final Takeaways

• Stay Invested in Innovation: Cramer counsels staying invested in top tech/AI names, bucking the trend of panic selling at every headline.
• Growth Investments Are Key: Temporary hits to margins (Chewy, data centers) are necessary for long-term value creation.
• Watch for Ripple Effects: Apple's US investment strategy strengthens not only Apple, but entire communities and supply chains.
• Transparency Matters: Cramer values frequent, detailed reporting for investor protection despite management burdens.
• Lightning Round Wisdom: From gold to tech to utilities, Cramer gives pithy buy/sell/hold advice, reinforcing the need for selectivity and patience.

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This summary distills the core topics, maintains the energetic tone of the conversation, and organizes the episode for listeners wanting actionable investment insights and context behind the news.

Transcript

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[Jim Cramer]

PC how those ahead? Stay ahead. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other People make friends. I'm just trying to make you some money. My job is not just to entertain, but to educate you. So call me at 1-800-7-for3 CNBC or tweet me at Jim Cramer. Their best days are behind them. Those may be the six most damaging words to your portfolio. And hardly a day goes by when they don't hinder you from making money. Especially when we're Talking about the big news 7. So many people trade these great stocks rather than owning them. And then you get a day like today with the dow inched up 49 points. SB advanced.47%. The record high tech heavy NASDAQ gained 0.94%. Also to a record high, days like today remind you just how lucrative is to simply stick with fantastic stocks. Buy in, homework, stop trading people. See, there are so many jumpy shareholders because lots of people truly do believe that the best days of all of the Magnificent Seven are behind them. Alphabet, Amazon, Apple, MattUp, Microsoft, Nvidia and Tesla, they think they missed the big moves that got these stocks to the heights that they've reached. They are either hanging on now for dear life, clinging, or they exit, failing to get back in, even though they said that they would. It's an odd judgment. After all, when we came up with the term fang, which stood for at that point, Metta, Amazon, Netflix, and then Alphabet a dozen years ago, all I heard was that I was late and the best days were behind them. A dozen years ago, same thing when I added Apple to the mix with fag. Late, late, late, late, late. That's what I was accused of. Let me say this, I believe that if management hasn't changed or there's been a smooth transition, the 7 rep still still present incredibly compelling valuations, even now, some better than others. But that's okay. And when you look back at how they've done historically, you see that they, for the most part, turned out to be very inexpensive. In retrospect, why do these companies keep exceeding expectations? Why were their best days in front of them, not behind them for more than a decade of cat calls? I want to generalize for a moment. First, all these companies have tremendous balance sheets with essentially all the money in the world that allows them to innovate. It allows them to do battle with competitors. And when they can buy whatever businesses they want, even when the government goes after them, the government tends to fail. Second, they have scale. They can expand and expand with more tentacles anywhere. They're incredibly hard to take on. Third, they reinvent all the time. Facebook starts as desktop entity with the stock that flops after it goes public. But then it figures out the cell phone for. For Instagram and for Facebook, and then boom. And of course it buys Instagram and it buys WhatsApp. It became a totally different company, taking advantage of its balance sheet and its vision that billions of people want to connect via Instagram. And they were right. Just consider what's going on just at this moment. Right now we have. The next part of our show is going to be an interview with Apple CEO Tim Cook in Harrodsburg, Kentucky. Now, you may not have heard this, but the Apple watch has been approved by the FDA to detect hypertension, the silent killer, the leading cause of death. Why? Because it can't be detected. I remember when the watch first came, I went to my cardiologist and I asked him if the watch could ever be used to flag hypertension. He told me that many are trying, but they most likely couldn't succeed. It would be too difficult Too many false positives, not a lot of accurate reads. Well you know what that was. It works. It could save millions of lives. If I were a health care insurance company I would make it required wearing for my customers, especially for the big institutions that I give insurance to. Fourth, something good always seems to be in the works when it comes to Mag7. Last Friday, Elon Musk what he do, he bought $1 billion with a Tesla. I mean come on, that's incredible right in the open market. I have never seen a commitment like that. But this is the kind of insider buying you can see when your CEO is the richest man world. Now some of today's strength in tech has really has to do with still one more celebration Data center There have been lots of questions about whether the backlog is real post that Oracle News but they have. They seem to have been resolved to the point that it is positive and demand looks very strong. Microsoft's Azure Matters AI and various chips, Tesla's autonomous driving, Google's Gemini, Amazon's web service would all seem to be big beneficiaries of that demand. Meaning that they're probably doing so well that you see the input which is the demand. This week in Gemini, the chat bot that many thought would never amount to anything because it's because it's connected to Google. Well, it became the most downloaded iPhone app. It passed Chat CBT this weekend which had been at the charts endlessly. Just it was breathtaking. The positive news flow never, never ends here. And yet people are so quick to give up on these stocks as if they're biggest and best days truly are behind them. Taking video this morning I get up as a little cranky. I don't know why the Eagles won yesterday. I fire up the machine and I read that there's a Chinese entity that says Nvidia violated an antitrust law. The stocks down 3, then 4, then 5. I get fed up and I take the X quote usual in video shareholder freak out on suboptimal China news. Join the club and stop panicking, will you? End quote. That was a reference to my own own it don't trade it policy on the stock of video. It doesn't stop though. The stock just keeps going lower. Even as we discovered this inquiries about something from Nvidia's acquisition of Mellanox Technologies, a division that gave Nvidia exposure to high performance network equipment and not core semiconductor business. That was five years ago and the Chinese okayed it. And yet it caused pandemonium. But what happens with stocks like this? You know by 11:50 the stock's in the black. You would have caught six points if you bought it low. More important though is that Nvidia could bounce right back even if the stock only closed slightly in the red. That's a sign once again that so many are skittish. Nvidia's shareholder base is full of people who probably shouldn't own the stock in the first place. Because the moment they hear about a Chinese antitrust investigation, they think they've overstayed their welcome and they sell. That's always how it has been with Nvidia. Always. People who don't know what the company does figure there's no future because they don't even know the past. Look, I know the Magnificent Seven have had their setbacks. Alphabet look like it was going to be a goner. Severely punished for anti competitive behavior not that long ago. The judge in the remedy portion of the trial after Alphabet had already been found guilty of being a monopolist, could have easily gutted the company, which is why its stock fell as low as 140 in April. But it didn't happen. If anything, it was real clear that Google's remedy was to keep doing what it was doing for the most part. Now the stocks at $251 and change after soaring another 4.5% today I made the mistake of selling the stock my chapel trusted play with an open hand. I believe that the government come down on them with a hob nail boots. I did think Alphabet's best days were behind them because of what was going on in the federal court. I was totally wrong. Got that? I was wrong wrong. No company is completely in control of its own destiny. But these seven, they come as close as anyone ever has. Which is why I believe that their best days are still in front of them. Yes, if you don't own them already, maybe you missed a huge amount of performance. I'm not going to deny that. But I'm not going to say that you're too late. I think there's too much good happening to consign these stocks to the dustbin of history. They just don't have any quit in them. The bottom line, Magnificent Seven are heroes.

[Bob Ricard]

And.

[Jim Cramer]

And I'm not going to tell you to sell heroes unless something changes that makes them feel a lot less heroic. That hasn't happened though. They're still got great management. They still are overflowing with cash and their scale is so enormous that no one can stand against them. What's not to like? Cody in Illinois. Cody Jim how's it going? I am doing fine. Cody, how about you? Doing great. I love watching your show with my girlfriend's dad and excited to be talking with you. Sensational. I'm glad you called in. How can I help? I'm wondering what's going on with toast. Jim, you know, look, I'm glad you asked about this. I actually thought the quarter was excellent. I know there are a lot of doubters. I think that's wrong. But the restaurant stocks have been very weak and that's why I think the toast has been very weak. I'm advocating patience because it's still a great stock and it's still up a lot for the last for this year. How about we go to Nathan in Colorado? Nathan. Hey, buddy. First time caller, longtime listener. Excellent. How can I help? What's up? I'm calling about a stock I've been holding for about three years. Trading at prices nine years ago, down $100 in the last year, plays a dividend over 6%. United Parcel Service. I am worried about United Parcel. I'll tell you why it's down 33% for the year. Because when I see a yield of 7.8%, it worries me because there's not a lot of yields in the S and P that are that high. The highest yielders tend to be trouble. They do not tend to be reasons to buy. We maybe for Verizon when it was or an ATT because their utilities. But this is of grave consternation to me on ups. I wish I could be more positive, but that's how I feel. John in California. John. Howdy, Jim. John from Lompolk live here since 98. Thanks for the education. Oh, wow group. And the rate cut for which stock? Citigroup. Citigroup. Oh, I like Citi. Now, Citi's up a huge amount, but I think Citi is still an inexpensive stock. It's got still a lower multiple than others. I think it can go higher yields 2.4%. And what can I say? Jane Fraser's doing an admirable job there. Anyway, look, there's just no quit in the Magnificent Seven. And I don't think you're too late to get into these names. There's too much good happening with each company. On maybe tonight, Chewy plummeted after earnings were falling. Climbing back after catching a couple of upgrades. I'm sharing where I think the story stands after these conflicting headlines. Then I'm hearing how a partnership with Nvidia is ushering in a new air for Jacob Solutions. Letter J with the company's top brands. But first, last week I visited Cornings plant in Harrodsburg, Kentucky where big tech meets small town America. But the story doesn't stop at the factory gates. Welcome everybody to Harrodsburg.

[Tim Cook]

You are standing on one of the.

[Jim Cramer]

Oldest streets in west of the Alleghenies. Jim Cramer and Tim Cook take a stroll down Main street usa. Next. Don't miss a second of Mad Money. Follow imkramer on X. Have a question?

[Bob Ricard]

Tweet Kramer Madmentions.

[Jim Cramer]

Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Missed something? Head to madmoney.cnbc.com.

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[Jim Cramer]

Last Friday, I got a chance to speak with Tim Cook, the CEO of Apple, and Wendell Weeks, the chairman and CEO of Corning, at Corning's facility in Harrodsburg, Kentucky, where they make the COVID glass for your iPhone. While I was down there, we spent a lot more time with Tim Cook getting into everything that's been going on with Apple. Take a look. Well, Tim, we're in downtown Harrodsburg. You talked about the ripple effect. Is this it?

[Tim Cook]

This is it. It really makes my heart sing to see a town that is doing so well, that's thriving off of Corning and our relationship with Corning is at the root of that. And so it feels fantastic.

[Jim Cramer]

Now, there are other towns, of course, that didn't get blessed by two companies that care as much as you and Corning. The atmosphere is very different, isn't it?

[Tim Cook]

Well, we can't, you know, we can't be everywhere. I wish we could, but we are putting 600 billion to work in the next four years. And so it is an extraordinary commitment. And there's 79 factories across the US that will benefit from this.

[Jim Cramer]

But don't you think you'd have to put up 10 times that if you're just to be able to say, look, you got to put the money to work. You promised the President you're going to put it to work?

[Tim Cook]

Yes, we are putting it to work.

[Jim Cramer]

But two and a half billion is a drop in the bucket of what you have to do.

[Tim Cook]

Two and a half is just one of those 79 and so one of the 79. And so it's a great start and a very important one because the glass is something you interface with all the time right on your phone. And we couldn't be prouder of the relationship that we've built up over what is now since the first iPhone in 2007.

[Jim Cramer]

Now when we speak about the ripple effect, it's not just what it does with towns. I imagine that there will be companies, foreign companies that will say, okay, I now have to put a factory there because Apple's there and they're building a supply chain and I can be part of it.

[Tim Cook]

That's right. That's the ripple effect. If we come, there will be more companies coming. It's a domino effect kind of thing.

[Jim Cramer]

It's better than anything the government can do, isn't it?

[Tim Cook]

I think what the enterprise versus government. I think the government has a role in terms of the regulation kind of role and setting the leadership, which the President has clearly done. He's really stated his objective to get more and more manufacturing into the United States. And so I think there's a role for each party.

[Jim Cramer]

I wanted to say that the one thing that seems to be left out, the President wants to be able to have everything built here, but you have to have great education. A town like this is going to have to up its game, but that's not being you're not responsible for that.

[Tim Cook]

Well, what we can do is bring the manufacturing academy in Detroit to small and medium sized businesses. Corning obviously has enough statue to train their own employees, but we can help that significantly with small and medium business, and we can help with community colleges and these sort of things. Things in getting some of our curriculum out into those schools. And so we do have a role. We do run a university as well, but we do that for internal to Apple only.

[Jim Cramer]

Tim, you talk to shareholders all your time, part of your job. Do any of them say, you know what? Look, 500 billion? I mean, I wish you would just buy back stock with the 500 billion. Why are you wasting shareholder money?

[Tim Cook]

You know, I think my. Most of our shareholders believe that we're in the best position to make these type of decisions. And so I have to honestly say I haven't gotten a single complaint about.

[Jim Cramer]

The 600 billion when it went from 500 to 600.

[Tim Cook]

Not one. I have not seen one.

[Jim Cramer]

Not one.

[Tim Cook]

Not one.

[Jim Cramer]

That's kind of remarkable.

[Tim Cook]

Yes, it is.

[Jim Cramer]

I would think there are people who could be enraged and say, you know what? I think that he's just doing so we can sell in China to appease the President.

[Tim Cook]

I'm sure there's somebody out there like that, but they haven't contacted me.

[Jim Cramer]

I'm astonished. I really am. I mean, maybe I'm too cynical on Wall Street. I figured that there would be some people who would say, listen, you could give us a better dividend. Instead, you're helping Harrisburg.

[Tim Cook]

Yeah, I think most people look at it and say, it's great that you're investing in America. And so I think they look at it through that lens and depend on us making decisions in their best interest for the shareholders.

[Jim Cramer]

Now, are you in contact with people in China who say, look, we want those jobs, too? What do we have to do? Or has things gotten so adversarial, China, India, that discussions can't occur anymore?

[Tim Cook]

No, we have good relationships in both of those countries and have a very open line of communication and also bring jobs to those countries.

[Jim Cramer]

See, I think there's a lot of people who think that we're in some sort of vicious cold war. I know that there are obviously issues, because we do have. You have Taiwan. That has to be protected. You have a government that at times has been jingoistic there, and we got jingoistic here, but you're able to navigate that kind of thing.

[Tim Cook]

I think, you know, my view has always been, is that engagement is so important in all of these countries around the world and with all the governments of the world. And so that's what we try to do, is bring the best of ourselves to those countries. And I have to say, I have great relationships in many countries around the world and want to keep that up.

[Jim Cramer]

I think it's important in your interactions with the president, you apprise him of these kinds of events and what's going on.

[Tim Cook]

Oh, of course. You know, we had the event in the Oval just a few weeks ago. Right. And so he's well versed on what's going on in Haroldsburg.

[Jim Cramer]

And that must mean to some degree that I know that it isn't. It's no quid pro quo with the president. It's not like, listen, I'll take the 25% tariff off, but obviously, what. The more you do here, the less likely there will be a 15% take of what he's doing, of what you're doing in China.

[Tim Cook]

I think it'll be heavily considered.

[Jim Cramer]

Okay. Yeah, right. Well, you're doing what he wants, but I think that we're doing what he.

[Tim Cook]

Wants, which is to bring more manufacturing into the US More investment.

[Jim Cramer]

But is it metaphorical to say that I want the iPhone built here? Meaning, in other words, if you, if you build, if you spend 100 billion here versus making it here, and you'd only make 20 billion, I mean, obviously, the commitment is huge.

[Tim Cook]

Enough commitment is huge. And, and it will definitely be felt in, in many communities across the country.

[Jim Cramer]

Who's monitoring it internally for you? Kevin, the cfo.

[Tim Cook]

Of course. Kevin is all over it, and I'm personally monitoring it to make sure that we're living up to our commitments.

[Jim Cramer]

Are there towns that don't know it yet? They're about to be blessed with a lot of business.

[Tim Cook]

There are. There are, of course, because these things take some amount of time. And so there will be some surprises in there, I would say.

[Jim Cramer]

Now, why was in 2017, it was a billion dollar commitment, and a lot of people were shocked at a billion. I mean, 600 billion is a lot more than you announced when you announced the plan on our show in May of 2017. I mean, it's quantum.

[Tim Cook]

It's quantum. It's quantum. And we're so proud of it. We're proud to be making a difference in people's lives.

[Jim Cramer]

Coming up, Kramer's chewing on Chewy's latest results and reveals if the stock has more bark than bite. Next.

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[Jim Cramer]

This has been a very good year for stocks, but market's still unpredictable. Take a look what happened to Chewy last week. Last Wednesday morning the online pet food company reported a solid quarter better than expected guidance, yet the stock had obliterated response. Then the very next day, Chewy caught two upgrades. Today the stock came roaring back up almost 7% but it's still down versus where it was trading before the quarter. It is enough to make your head spin. What on earth happened this quarter? Quarter that crushed the stock but simultaneously made two analysts feel confident enough to upgrade it. Okay, at first glance, this was a very good quarter. Chewy posted accelerating revenue growth, expanded gross margins and in line earnings while they mostly left their full year forecast unchanged. Other than narrowing and raising the revenue outlook, Chewy's guidance for the current quarter was pretty, pretty strong. It didn't hurt that the company bought back $125 million worth of stock during the quarter. Still, the stock plummeted more than 16%1,6 last Wednesday. So what kind of landmine was hiding in this quarter that could blow it up like that? All right, now look through the results and you can point to the fact that Chewy had higher than expected sales, general and administrative expenses. And those expenses actually grew faster than revenue, largely because the company's ramping up on a new fulfillment center in Houston. I think the new fulfillment center is an unmitigated positive. It's full of automation that will ultimately make chewing more profitable. But apparently it takes about six months these facilities to get them rolling. Wall street did not like learning that you but I don't think the higher SG and expenses were the real problem. In the end this was about expectations. Most of Chewy numbers came in higher than the consensus analysis, but they didn't come in higher than the so called whisper number which is what the really bullish hedge funds were looking for. They call it a whisper number. To put the final nail on the coffin, management said that the second quarter will mark the high point of the year for gross margins. They plan to make growth investments in the back half of the year. And those investments are expensive still. Does that justify the 16% beat down in the stock? I don't think so. And neither did some of the analysts. Deutsche bank and Seaport both upgraded it last Thursday because the stock suddenly got too cheap and and the story is too good to ignore. Which is one reason why it came roaring back today. What makes me say that? First, when you dig deeper, there was generally a lot to like about the quarter. Beyond the headline numbers, Chewy put up 8.6% revenue growth in an industry that's only been growing in the low to mid single digits. Then these guys are taking market share. Much of that strength came from something called Auto Ship Chewy subscription service that provides recurring scheduled deliveries for anything from pet food to medications to treats. In fact, 83% of the company's business comes from auto ship orders last quarter. That's a good subscription business. As for the expensive growth investments that scare people, here's how the analysts at Deutsche bank put it. Quote, these investments serve to strengthen Chewy's long term earnings power, end quote. While the fulfillment center in Houston might be taking longer than expected to ramp up, this is part of management's plan to increase the automate their distribution hubs. With the help of this Houston facility they they expect that nearly 50% of their volumes will be automated a year from now. That's only much cheaper than doing everything with human beings. The other firm that upgrade the stock Seaport is really bullish. Things to say about the Chewy plus investments. Chewy plus being their annual membership plan with free delivery like Amazon Prime. Here's how Seaport put it. Quote these investments are offensive. Well, offensive, you know what I mean. And should enable Chewy to further gain market share, end quote. Now again this makes sense to me. On the conference school last quarter management likened the subscription service to Amazon prime or even a Costco membership. You know much I like that. The value proposition here is just that good. Aside from the $49 annual subscription fee, Chewy plus members tend to spend a lot more time on average than non members using Chewy. So they naturally want to sign up as many people as possible. I really like this. These guys launched Chewy plus in the summer of last year and as of July it was already making up 3% of their monthly sales. Manager sees that number slowly creepy higher and I believe them. What about the higher expenses that freaked everybody out and pumped the stock? Very simple. Chewy's giving you a free trial period of 30 days to try Chewy Plus. In the short term that's going to put pressure on the margins of course. But longer term, I think it's great way to lure people in. What, what else? Both upgrades last week called out Chewy's recent launch of their own private label dog food brand. Get real. This is all minimally processed food with each recipe being made with 10 or fewer ingredients. Now I am not a dog connoisseur, but I am a huge fan of retailers that get into the private label business. And I like my two dogs. Although one of them is just, well, never mind. Selling your own knockoff merchandise carries much higher margins than selling someone else's product brands. And they don't know the difference. That's the key thing. The dogs will eat it. This part of Chewy's push to expand their presence in the quickly growing fresh and frozen pet food market. The products only been out for a few weeks but management says customer reception has been strong. I wonder how they measure customer satisfaction for dog food. Still I have no no doubt that these pets are eating healthier than a lot of people I know. And one time we had another brand that was in the refrigerator in my stepson thought it was, thought it was bologna. Cut it up a little. It doesn't taste like bologna, trust me. And make no mistake about it, customers are happy to pay a premium for this stuff. For the full meal option, management expects a customer shell 20$500 annually per pet. That's the power of the humanization of pet thesis. That's still true that people are increasingly treating their cats and dogs like members of the family. $2,500 per year. That works out to almost seven bucks a year a day. Not a lot to spend on food, but quite a bit to spend on dog food. So here's the bottom line. I think it's crazy that Chewy sold off over 16% in response to a large and good quarter. I think were right to upgrade the stock last Thursday and the buyers were right to step in today. So even though Wall Street's not happy about all the Chewy spend on gross initiatives, call me on board. This will make Chewy's a better investment long term. You have my blessing to buy it even after the rally. It just happen had today. Now we're going to go to Buddy in Rhode Island. Buddy. Hi Jim. Great talking with you. Love how you teach me and taught me actually to buy stock in increments as it goes down as opposed to buying everything at one time. Yes, I really appreciate all your knowledge. I'm a club member, and I've been. I've been a club member for over a year. I'm curious. I've been watching Elf. I know that you've been hot on Elf late last year. I know that it reached close to 200. I know that that's not a number that. That we should be thinking about now. But it's. It's risen so much lately. But I'm worried about the China Scare. Am I too late to get into that? I would not worry about the China Scare because it's what I call baked into the stock. What I would worry about is the parabolic move we have today. I mean, ELF is up nine. I think we have to wait till it comes down. I'm thrilled during the club, but I know if I were in the club right now and we owned Alpha, I would say Trim don't buy that's just a parabolic move, and that signals that it's up too much. I think Chewy sell off in response to largely solid quarter is crazy. Okay. And I think you're getting a really good chance to start a position in Chewy right here. Much more exclusive with Jacob Solutions. Jensen Wong has been telling us for years about the power of Digital Twins. And now Jacob Solutions putting that technology to work. I'm hearing more about it from the CEO. Then the president wants to end quarterly conference calls. But where do I come down on this controversial stance? Man, I got to tell you, I got to give you my take. I can't wait. And the way of calls rapid fire. Tonight's just lighting route, so stay with Kramer. One thing I love about the AI Data center boom is that it just keeps creating winners in unexpected places. Take Jacob Solutions. It's the engineering construction firm that went through a complicated merger breakup deal last year that was very successful, but is now cleaning up, thanks in large part to its data center exposure, which has become a major growth driver for the company. Don't take it from me, though. Let's check in with Bob Ricard. He's the chairman and CEO of Jacob Solutions. Welcome back to Mad Money. Jim.

[Bob Ricard]

Always great to be here.

[Jim Cramer]

Thank you. So, Bob, it turns out that when what you're doing is exactly what I wanted our viewers to hear about. First let's just talk about Data center, and then let's talk about Digital Twin. Okay. But this data center business falling in your lap, you're one of the few companies that can build it.

[Bob Ricard]

We are. We are. So, Jim, we've been in that that space since back in 2007. So in the advent of data storage and the requirement for a data center, we started doing the design around what we used to call the white space, the server room, the gray space, the utility area. But then there were conventional data centers. So we hook them into the grid, hook them into the municipal water supply and. And that would be it today. It's a big difference. And we're now into the air data center, which is. Is really a complex facility right down our wheelhouse.

[Jim Cramer]

But I was going to say, not only is it complex, but we've been to one of them. That I have a belief that if you haven't had the experience. Experience, it's too risky for the company to hire you.

[Bob Ricard]

It is tough. There's a bit of a moat that's around that as well. And the fact that we've been in complex facilities, whether it be in the semiconductor world, life sciences, that's kind of in our DNA. So the history in the data centers coupled with that complex facility.

[Jim Cramer]

And I will. I want people to know at home that when we saw you last, you were talking about a breakup. And I was worried because there's a lot of pressure, a lot of breakups. But yours came through through terrifically.

[Bob Ricard]

It really did. In the new company, Momentum is. Is doing well, but we've been separated now since September a year ago.

[Jim Cramer]

Right.

[Bob Ricard]

And out of our retained stake back in March. And they've been doing well. We've been doing well and continue to grow.

[Jim Cramer]

Sensational. Now, I happen to be reading a, you know, a Prague, as you call a press release from. From Nvidia. I always like to see. I love it when I see Madison Wong writing the press release. Yes, that's. That is Jensen's daughter. But it's about the idea of optimizing the data center using the digital twin. Now we've used that term and Jensen has shown it, but I think that since you're the actual builder, you can tell us the value of the digital twin.

[Bob Ricard]

Yeah, absolutely. It takes what used to be in disparate areas. So you had the compute load, what the power requirement was, would need to be, and then the facility to support the entirety of the.

[Tim Cook]

Of the.

[Bob Ricard]

Of the system. Today it's gotten pretty complicated. So as the compute load is innovating at a very rapid pace, what Nvidia. Nvidia has asked us to do is be the design integrator and look at that from a systematic perspective. So we did the reference design for a giga plus a gigawatt plus facility. And then we did a digital twin. So now you can simulate in the virtual space what's happening with Compute Load, the effect that it has on the utility requirements. And then longer term, how do you operate something like that?

[Jim Cramer]

Okay, so I think people at home will say, well, what does it save? I mean, so what a digital twin? I mean these buildings so hard to do that maybe there's construction changes. And I think you have to tell us why a digital twin can save money for the customer.

[Bob Ricard]

You're working out in the simulated model in the virtual space the nuances of what's happening with Rack power, the need for liquid cooling, potentially the need for liquid cooling and air cooling. And then where's the power coming from as well as the water requirements for all that cooling. So this is now taking what used to be a data center still is, and turning it into an AI factory. And, and then the support infrastructure that's needed for that all within the virtual space. Because the innovation that Nvidia is doing right now on the, on the chip design, it's going at a very, as you know, very rapid pace.

[Jim Cramer]

Here's something that I am trying to figure out. How do they hook them up to the grid if they are such big. If they're just these monsters that want all the electricity? Do you do that? And how do you, how do you be be sure that there's enough power?

[Bob Ricard]

So we will design the requirements for, for, for the power needs within the data center and then we will look at. Okay, there's a couple of different options. Sometimes in some locations, West Texas, Montana, the grid can handle it. There's other places where it can't. So you go into alternate sources of power behind the meter.

[Jim Cramer]

Like nuclear power.

[Bob Ricard]

Like nuclear power. Like, like lng, like on premise LNG power in.

[Jim Cramer]

And this is something you like when you go down, do you say, oh boy, it looks like we have to tap into some grid, part of the grid that no one ever thought of, or we have to root it away from everybody else to us. And maybe there's an equity issue, maybe some of the other people get mad at you who are customers.

[Bob Ricard]

They could. I think what's really, really important important is that determination of can the grid handle it right? Or do you have what they call on premise power? And then during peak loads, depending on the source, the use of batteries and batteries.

[Jim Cramer]

But I hear that that's really taken over.

[Bob Ricard]

It is, it is. So it's, it's the, it's, it's the complexity that I was talking about earlier where we're right in the middle of all that.

[Jim Cramer]

The complexity is not a problem for you. For instance, in the GOP1 drugs, those are complex. And sure, the buildings are complex, but that's something that you're now used to. We're.

[Bob Ricard]

And we were right there with those GOP1 manufacturer.

[Jim Cramer]

Yes, you are.

[Bob Ricard]

From the beginning when the formulation was at bench scale, going to commercial scale to determine what the facility requirements would need to be.

[Jim Cramer]

Well, I mean, I just think that maybe the next generation of what they're working on is. Could be yours too.

[Bob Ricard]

It could be a tablet in form.

[Jim Cramer]

Yes, it could be. And that could be really tablet form. Could be big. And we know that. Therefore you don't have to refrigerate it. And it could be one of those things where people don't like to give themselves needles. I would like to think that they are ready if they. If they do pass the test. Absolutely.

[Bob Ricard]

Jim, there's another dynamic that's happening in that space. It's other companies besides the two we've always talked about that are now coming in with their own molecule. So that. That, that ecosystem of. Of producers is now expanding.

[Jim Cramer]

Well, I understand that there's plenty of room for everybody. That's always. Even David Ricks from Eli Lilly would tell us that. Well, I want to thank Bob. Regarding. He's the chairman CEO of Jacob's Solution, which has been a total winning stock. And you just heard they really understand how to build these factories which are so difficult to do. Bad money's back after the break. Coming up, lightning doesn't just strike twice in Creamerica. We are Jimmy Chill. Booyah. Booyah. Thanks for taking my call. It strikes every day.

[Bob Ricard]

Kramer is back in a flash with your questions.

[Jim Cramer]

Next. It is time. It's time for the White Raptor. My sausage is very close. I wear my stampers to grab some fire. Plant us out. And then the lightning round is over. Are you ready? Ski Dagna. Light round. Clifford's Bunch with Nick in New Jersey. Nick. Booyah. Jim, I'm calling about QXO, Inc. Ticker qxo. All right. This is Brad Jacobs Company. Brad Jacobs money. I'm not gonna go against him. I'm gonna go with him. You should buy the stock. Let's go ahead with David in Connecticut. David. Hey, Jim. Thanks for having me you on the show. I wanted to. Yes, I appreciate it. And also ask you about Bloom Energy because I know that you were less than sanguine about. Well, but here's the issue. As I went public with aqua in the 30s. Once you have an energy stock smaller. Here's the deal. We're so short energy that any. We need every single one. I'm including Bloom. So I understand why it's going up on my cup of tea, but I understand why it's going up. Let's go to Susan in California. You Susan. Hey Jim. Always happy to get your wonderful advice. I am a very long time listener. Excellent. So I'm investing in gold for the first time. It's RSI is about 47. It's running slightly ahead of GLD on several other gold stakes in a year to date. And I have learned that when interest rates go down kind of slow and learning things gold prices. So it makes it more attractive than. All right, what do you see? The nearest term and long term investment in Newmont Corporation. And look, I think New minus. Excellent. I do prefer Agnico Eagle, but New Mine is absolutely fine. Those are the two of my two favorite golds. Let's go to Jeff in New York. Jeff and Jim, how you doing? I'm doing well, Jeff, how are you? Good. What do you think of the Lamb Research? Someone downgraded Lamb Research the other day. I said are you out of your mind? That's the chief intellectual property of semiconductor capital equipment. I think it is still a buy even though it just had this parabolic move up 65%. Do not sell it. Be a buyer. Let's go to Chris in California. Chris. Oh yeah, Jim, thanks for taking my call. Of course. You know, I got my long term.

[Tim Cook]

Stocks I don't plan on selling for a long time. Like Nvidia and Boeing and Apple and Disney. Also this stock set, you know, you.

[Jim Cramer]

Trade every now and again, you know, 10 seconds a minute. We one of them that I've been trading every day for the last week. But I've noticed it's been getting consistently higher and higher. And I really may consider making this a long term stock. What do you think of LDI Loan Depot? I don't understand why that stock, how that stock could be up this much. I mean I know about the Fed, obviously everyone does. But it's, it's losing money. I'm not there for that one. I'm just not there for that. I can't, I can't understand it. Let's go to Bob in South Carolina. Bob. Evening, Jim. Big boy. Good evening. Boo out of you. My question is about Centrist Energies. Okay, now this is a good example like oklo, okay. I am a big believer in nuclear power. This is a Company. It supplies low enriched uranium and that means it's going higher. Now do I want it? All I can tell you is I'm not fighting it, okay? I fought all these speculative stocks. This is really not even that speculative. It's got a lot of money. I think it's a good stock. Let's go to Gus in Utah. Gus, thank you for getting my call. My right back at you. A.B. alliance Bernstein. Okay. Now that is a company that historically has had a very big yield and is actually not a dangerous stock. I'm going to say I think you're okay. Alliance Bernstein. Let's go to Chris in Florida. Chris Kramer, how we doing? I'm doing all right, how are you? Good, good. Calling from Chip and Bug Wells headquarters at Florida State University. Go Knowles.

[Tim Cook]

Come on.

[Jim Cramer]

Go Knowles. Man, I'm right there. 18:19 Pensacola. That's where I live, right near Jim and Mills. Good barbecue. Let's go Gain Street. I got a I IESC ticker symbol for you. What do you think? Ies, isd, isc. I know that electrical contractor. That again is going higher because it is data center. Do you see the pattern everybody? And that ladies and gentlemen is the conclusion of the Lightning round. The Lightning round is sponsored by Charles Schwab. Coming up, good quarter, bad quarter or no quarter at all. What Trump's push to scrap quarterly reports could mean for the market. Next, Jim Cramer, the die hard of the doll. Hey Jimmy, love the show. My five year old grandson loves to watch your show.

[Tim Cook]

I have to thank you for making.

[Jim Cramer]

Us money when it's there to be made. Our world is is a better place with you in it. The President weighs in on true social but pretty much every issue he posted earlier today that he didn't like the new NFL kickoff rule thinks it encourages sissy football, which is bad for America. I guess that rises the occasion of presidential tension. President Nixon tried to insert an actual play years ago to the Washington team and some believe a variation of it was used and resulted in lost yardage. So it's not the first time the President has tried to involve himself in the NFL. Right after his NFL statement though, Trump did post an incredibly provocative suggestion for the business world. Rather than making public companies report every quarter, he wants to let them report every six months like they do basically in the European Union. In fact, he points out to China as a positive example because he does their turn thinking in terms of 50, 100 years, what's right. As someone who pours over every conference call list for the quarterly data, I disagree with The President. I think the more information, the better. You can't really make good decisions, certainly about money without that quarterly data. But as someone who founded a public company, I can tell you that quarterly reporting is a no nightmare, tying up time and causing you to focus on the short term so you don't disappoint Wall Street. The fees to orders are prohibitive. The lack of people in finance who can drop everything, get things done is daunting. In other words, it's a huge pain in the neck. From the perspective of management, the president is spot on. Warren Buffett and JP Morgan. Jamie Dimon actually weighed in on this issue a few years ago and there were Trump. These two titans believe that companies frequently hold back on technology spending, hiring and research and development to meet quarterly earnings forecasts that may be affected by factors outside the company's control, such as commodity price fluctuations, stock market volatility, even the weather. Good point. On the other hand, one of my idols, the late great Andy Grove, the person who built intel into the most dominant semiconductor company on earth in the 1990s, was a big believer in the quarterly report. He read a phenomenal business business book. I mean, it holds up really well. You get on Amazon. It's called Only the Paranoid Survive, where he was downright contemptuous of the idea that it's too hard to report every three months. In Grove's view, it's the only way to enforce discipline and accountability. He believed that executives should live in fear of their investors because that produces better results. I agree. I've always thought that Grove's view should prevail simply because shareholders deserve as much information as they can get. A quarterly report is not too bad much to ask. That said, there are two legitimate sides to this issue. As the process exists, it's hard for companies, especially small companies, to handle their quarterly reports. It might be easier for them to report every half. If we could get away from the endless forecasting straitjacket that occurs each quarter, it could make the process less onerous. Companies should have to give you shouldn't have to give you so many benchmarks on what could happen because we don't have to kind of crystal ball. A six month improvement. Reporting period with no forecast would make the lives of CEOs much easier and could possibly spur longer term better thinking. But in the end, if you're an investor, you want as much information as possible. Anything that allows companies to give you less data is bad for your portfolio. So even though it's a headache for companies, report every few months. I think it is much better than the alternatives. I like to say, as always, bull market summer problems, but just for you man Money, I'm Jim Crap. I'll see you tomorrow.

[Commercial 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. Kremer'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@ Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the courseroom to the workplace. A different future is closer than you think with Capella University. Learn more at Capella Eduardo.