← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 9/19/25
00:44:24
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
Loading summary
Transcript58 lines
- [00:00]
Jim Cramer
On Fox 1 now you can stream your favorite live sports so you can be there live for the biggest moments. Touchdown and catch history in the making. Fox One we live for live streaming now.
- [00:16]
Fidelity Representative
Fidelity Active ETFs have the flexibility to shift and transform as markets do the same. So instead of just riding an index, they can seek to outperform it by adapting to market conditions and pursuing new opportunities as they emerge. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms. Just like any other etf. Markets can change in real time. Make sure your ETF can too. Learn more@fidelity.com ActiveETFs before investing in any exchange traded fund, you should consider its investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus, an offering circular, or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Fidelity Brokerage Services LLC Member NYSE SIPC.
- [01:40]
Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer America. Other people made friends. I'm just trying to help you take a little money. My job is not just entertain, but to explain, teach you. Because man, we got a lot to talk about tonight. Call me 1-873CBC. Tweet me at Jim Cramer. These days, these days are insane. More record highs, more positives, more money made. And yet another week where the markets hated just despise. The complaints about it are myriad. Nobody champion stocks except, well, us and of course the legion of buyers who propel these stocks higher. The averages always tell the story. Dow gaining 173 points. SB advancing point four. Nine percent. NASDAQ climbing point 72%. It was a really good session and all I heard were gripes. The rally, once so narrow, is now amazingly broad. The banks, the transports, all sorts of tech, utilities, so many other sectors, small cap, mid cap, whatever, they all just march higher. Now I know the speculative stocks are very visible part of the market and that rankles the pros. But that's been the case with this market ever since the Gamestop affair way back in January of 2021. So get over it. Is it more frothy than we'd like? Sure, but it hasn't stopped us from going higher any more than the concentrate the magnificent Seven did not that long ago. Right now, there's a widespread sense that the obsession with the data center represents the top. Yet every time good news, or even rumored good news, like Meta perhaps contracted with Oracle for $20 billion cloud computing deal. Well, what happens when it comes out fresh new highs. One of these days we will have a top, a genuine peak. But the things that are supposed to signal a top simply haven't done their job. That's why so many people truly dislike this market, even though it keeps going higher. People see things that ordinarily would signal that stocks are ready to peak, but then it doesn't happen and they don't adjust their expectations. They double down on their negativity. So we watch oklo up another 29%. This is when they were up 100. Since I said just go buy it because the government favors nuclear for the umpteenth time, we look at the quantum computing stocks. You know, I think you have to buy those two. And we know there's nothing there in the near term, but eventually there could be. Even if those future gains might not go to quantum stocks that are currently trading. But nuclear and quantum aren't nearly as close to earnings, let alone earnings breakouts. You know what? The buyers don't care. Some say they are thinking long term, others say they're gambling. I say there's something else. I think they're winning. And so many wait for the moment when the craziness subsides without realizing that perhaps the only thing that's crazy is the way so many people seem to despise making money in this market, except right here in Cramerica. And by the way, I'm not apologizing for this. My vocation. If ridiculously speculative stocks keep being winners, I say you should probably try to own one or two of them rather than fighting it the whole way. That's a big theme. My new book comes out in 11 days. I talk about the full chapter, how to speculate wisely, because I don't want you left behind. Even though this book is about investing. And with that, that totally pertinent rant, let's get over our game plan for next week. By the way, everyone else right now is really tired. Not me, partner. All right, here we go. The President had this big call with President Xi, right with China. And all we heard about is that there was this solid discussion about tick tock and some sort of deal reached. I don't think that's the way it comes out with this president. He gives a nice talk, but then saves everything for the weekend. I think over the weekend we'll find out about the other things that were discussed, including what the Chinese buy from us in exchange for a trade deal. Look, I don't think a long haul with the head of China was purely focused on tick tock. I mean tick tock like 9 seconds. How about Nvidia? How about AG? Let's find out what was really said. I think it'll move stocks on Monday. Next up Tuesday. Tuesday morning we have AutoZone Asia reports and I've been recommending this stock for two decades because no matter what happens, the company takes what cash it has on hand that spare and uses that money to buy back stock. It's the most aggressive buyback on the New York Stock Exchange. Plus, the average car on the road in this country is getting real old. New ones cost a lot of money after tariffs. Too much money. If you want to repair or maintain your old car yourself, it's easier than ever because the Instructions are on YouTube. Even I, you know, 5, 10, 17 thumbs, I figure out stuff on YouTube and the parts, you can buy them at AutoZone. Tuesday night we hear from one of my absolute favorite companies, which is Micron symbol Mu or Moo. Talk about a sink or swim business where this commodity chip maker is plummeting. It tears your heart out like Indiana Jones, Temple Doom. When it's ramping, it can't be stopped. Except that is by the CEO Sanjay Mehrotra. Sanjay likes to tell you the truth. And he knows that when a stock soars as much as Micron has lately, it can cause real heartache if anything at all slows down. So he calms things down. He's a prudent person in a market that often honors recklessness. And you know what? I love that. When you look at the outrageous trajectories in the nuclear stocks, say, or the quantum stocks, imagine any of those execs from those companies ever coming out like Sanjay and questioning whether their stock should be so high. I certainly can't. I wish more executives would be like this honest man. Either way, Microns had a big run. I want to wait for a pullback for I recommend it. And I got to tell you, I really did like it. Check. Right. Rewind the tape. In the 80s and 90s, I was all over the thing. Wednesday morning. We get new home sales. Now we want to see more transactions. But if bonds keep going down in price and up in yield, something that's been right on our faces since the Fed cut short rates Wednesday, then we just aren't going to get the kind of home sales numbers that we'd like. The good news for the housing market, the pool of older homes is growing. The bad news, until we get mortgage rates back, back down to five and change, I don't think there's much hope of boosting home sales to any level that I think is consequential. Now also Wednesday morning we hear from one time market darling Cintas. The uniform rental company also provides a bunch of other large services. Service largely to small, medium sized businesses, but they've got some large ones too. I think Cintas could bring us an upside surprise. I like it very much at these levels. In the evening, KB Homes reports and I bet it follows in the footsteps of Lennar which got hit really hard today off of some gross margin pressure in the aforementioned stubbor high mortgage rates. By the way, can I just say Stuart Miller of Lana, he's fabulous. So if they were struggling, everybody's struggling. These homebuilding stocks simply won't get traction until the Fed says it's not as worried about inflation and it sees a clear path to taking the federal funds rate down to two, two and a half percent. Until they do KB Homes, just a trade and I don't want to trade. I talk a lot about that. My book trading is for suckers. Okay, it's for suckers. Thursday morning we get results from one of the great stocks of the moment and nobody ever talks about except for me. It's Jabo now J Bill manufacturer. It's a manufacturer and does a lot of the technology we see every day. I think there's tremendous demand for so much of what J Bill makes. So the quarter will once again be terrific. Jabil is consistently brilliant in its making, say printed electronics devices, a board assembly among so many others. Now the big problem here is is that people don't really understand all the different things they do. But I really do like them. Let's talk about Thursday evening though. There we have Costco. And right now Costco is stuck in a kind of a purgatory. Very High P E Rate.53. I find you don't want to buy Costco until the P e goes below 50. But I own it for the travel trust and I'm willing to hold it all I want. It's hard to believe that Costco can fall higher from here, but I think maybe it can. And then finally we've got this really hard thing to understand. Okay, it's the Fed's favorite gauge of inflation. It's called the personal consumption expenditures, price index. We care about these indices because we want the Fed to get out of the box where inflation goes higher and higher and gets worse. They can't get too aggressive about cutting rates until inflation is truly beaten. But it's hard to get a read on inflation because a lot of these numbers come from tariffs ideally. Want to see some data shows you the tariff related inflation is one off in nature. Maybe we'll get that Friday. Bottom line, no matter what, we have to accept that this one this week brought still one more round of skepticism, derision, head scratching and befuddlement as the vast majority of commentators and analysts, at least the ones that I listen to, continue to denigrate a market despite the fact that it's made a huge amount of money for the true believers and people who belong to the great nation of America. Let's go to Robert in New York.
- [09:52]
Caller
ROBERT hi Jim. Longtime listener listeners, thank you for everything that you do. Connect the dots for me today and please explain why the competitive threats to Visa from stablecoins and blockchain is dragging a $400 stock down to 300.
- [10:19]
Jim Cramer
Okay, Robert, right in my wheelhouse now. I'm going to tell you, you're right. My wheelhouse. That's what's called the opportunity. These different little entities, and they are very little, have created the opportunity that you need to be able to get a visa at a good price. Periodically you get it at a good price and when you do pull the trigger. Sam in Massachusetts.
- [10:37]
Caller
Sam Jim, with markets at all time highs, I was really, I was, I was interested to see Adobe near 20, 22 lows. Looks like the stock suffered very tough.
- [10:47]
Jim Cramer
Adobe Adobe made that quarter. But I think there were a lot of that was price raising. And I want to see organic growth if you want to know like what you know, you want to compare that something compared to work day, which we had on the other day. And I think that they were doing it by doing new deals, not at higher prices, but just a lot of new deals. Organic growth is what we want, not price. Dr. All right. For some reason a lot of experts continue to denigrate a market that just makes new high after new high after new high. Get over yourselves. It's worth remembering. It's really good to make money on man Money tonight. FedEx blew away wall Street's expectations when it reported earnings last night. I'm taking a look at the numbers and giving you my take. Then why did Darden investors have so much beef with the company's latest report? I'm going to dig into details to see what that's going on there. And the investing club held our monthly meeting yesterday. I don't know. You can watch the tape. We didn't get a chance to get through all the questions. I'm taking a few more of them as this market charges higher. So with Kramer.
- [11:53]
Show Announcer
Don'T miss a second of Mad Money. Follow imKramer on X. Have a question? Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
- [12:16]
Jim Cramer
Fox News is now streaming live on Fox One. The voices you trust, the stories you won't find anywhere else. This is the story breaking right now. FOX one.
- [12:25]
Fox One Announcer
We live for lives.
- [12:27]
Fidelity Representative
Try it free for seven days. Offers are subject to change. Go to FOX one for complete terms and conditions.
- [12:31]
Fifth Third Bank Representative
Fifth Third Bank's commercial payments are fast and efficient. But they're not just fast and efficient. They're also powered by the latest in payments technology built to evolve with your business. Fifth Third bank has the big bank muscle to handle payments for businesses of any size. But they also have the fintech hustle that got them named one of America's most innovative companies by Fortune magazine. Big bank muscle. Fintech hustle. That's how Fifth Third brings you the best of all worlds, going above and beyond the expected handling over $17 trillion in payments each year with zero friction. They've been doing it that way for 167 years. But fifth third also never stops looking to the future to take their commercial payments two steps ahead of tomorrow, constantly evolving to suit the ever changing needs of your business. Big bank muscle. Fintech hustle. That's your commercial payments A fifth third.
- [13:22]
Jim Cramer
Better Introducing the new Dell AI PC. Powered by the Intel Core Ultra processor. It helps you do your busy work for you so you can fast forward through editing images, designing presentations, generating code.
- [13:33]
Podcast Disclaimer Narrator
Debugging code, summarizing meeting notes, finding files.
- [13:36]
Jim Cramer
Managing your schedule, responding to Jim's long emails, leaving all the time in the world for the things you actually want to do. No offense, Jim. Get a new Dell AI PC@dell.com AI PC how those ahead, stay ahead. Last night FedEx reported a much better than expected. The quarter was out of nowhere, which is why stock jumped more than 2% today. Now this is a stock that struggled since the summer of last year, especially during the original tariff turmoil this spring. While FedEx rebounded from its post Liberation Day lows in April, it Never really got back to pre tariff levels. Pretty much trading sideways over the course of the summer. Going to last night's earnings report, the stock was down nearly 20% for the year. Not great. And it's not like Wall street was enthusiastic in anticipation of the quarter. If anything, there was a palpable sense of negativity and whoa. Bank of America downgraded the stock from Biden Neutral just last week as part of a broader negative call in the shipping industry. 3 days ago Evercore did the same thing take from outperformed in line because they were worried about the economy even I haven't been particularly positive on FedEx, although I haven't been as negative on this one as I've been on ups. And I have tremendous respect for CEO Raj Subramanian who's still in the midst of a long term turnaround plan. I've been hesitant to recommend the stock lately because this really doesn't seem like a great economy for anyone in the shipping space. Yet. When FedEx reported last night, I got to tell you something, they shot the lights out. These guys delivered a very healthy revenue beat driven by the strength of their core FedEx Express business, which was up more than 4% year over year. The FedEx Freight segment, which by the way is being spun off, was basically in line. More important, the company earned $3.83. Wall street was only looking for $3.61. That's 6% earnings growth really very, very good for this company. Even better, FedEx issued its first full year forecast for the 2026 fiscal year and those numbers were very good too. They're talking 4 to 6% revenue growth and also expecting 1.1%, although their earnings guidance was pretty much in line with a very wide range. Still, last quarter they didn't even issue a full year forecast. They were that hesitant. This time they really stepped up. I think it's very bullish. Now in terms of the story of the quarter, a couple of things did stand out to me. First, management sounded much more constructive on the overall operating environment than anyone would have expected. They're still clear eyed about the challenges that are posed by a weak industrial economy and the tariffs. But the word management returned to time and again on last night's conference call was dynamic. It's not a good environment. It's not a bad environment. It's a dynamic environment. What else? Superman and his team kept talking about the need for great customer service. Well, I hope so. The CEO talked about the removal of Trump's de minimis tariff exemption, which A lot of people were really worried about going in the quarter. FedEx has been focused on that issue since the spring because the Trump administration removed the de minimis exemption for goods from China back in May. But the exemption ended for all goods globally at the end of August. Supermania said that because they already handled this with China, they were in a much better position to help shippers in the rest of the world. Now the exemption is totally gone. Seems like there were some great partnerships about the this stuff. At the same time, FedEx is clearly winning market share and they're simply, they're not doing it simply by cutting prices. I think they're doing it with better service. FedEx Chief Customer Officer Bri Carreri cited Best buy which named FedEx as their primary national parcel carrier after being won over by the company's real time tracking system for packages. It's worth listening to call if you like this stock to listen to what they said about Best Buy because it was showed you how good these guys really are. Hey, by the way, while we're talking about FedEx taking market share, it seems pretty clear that they specifically are taking business from ups. Imagine was too classy to dunk on. Ups, that's Dunk on is by name during the conference call, but I did some private dig in. It's true, something you can tell simply by reading between the lines of the conference call transcript. The final major piece of the puzzle was the way FedEx managed its costs with a couple of major initiatives discussed yesterday. The first is an effort that FedEx is going network 2.0 where they're trying to improve the efficiency of their pickup and delivery system in North America. The country's removing stations from its network and reducing the number of pickup times overall. While the Network 2.0 project sounds like reduced service, it isn't madness. Said its quote customer feedback especially when it comes to the consolidated pickup experience remains very positive. So they're cutting costs without angering their customer base. That's what we need. At the same time, FedEx is making is making similar efficiency driven changes to its European network longathorn in the company side and they're reporting great progress there as well. Superman said that he was quote especially pleased with the team's year over year improvements in labor and on road productivity metrics end quote in Europe. And he noted that this was FedEx Best New Business Quarter in Europe in the last two years. Finally, there's what FedEx calls its TRI color tricolor strategy. That's an effort to boost delivery speeds and improve profitability in the company's key air freight business. Now, this is a bit of an oversimplification, but the Tricolor initiative is mostly focused on making the company's air freight network more flexible, able to scale up when there's more demand and scale down when there's not. Basically, they're trying to save money by having fewer fixed costs. In this quarter, specifically, where international volumes were down due to tariffs, the company is able to reduce its Asia to the US capacity, mostly China, significantly, while adding profitable capacity from Asia to Europe. Put it all together and you get what we got last night. A much better than expected set of numbers from FedEx that led to a very nice rally in the stock. And I've got to tell you, I thought it should have even been higher. So the question is, can it continue? Honestly, I think it really can. Well, I want to stay a little cautious given everything that's going on with tariffs and a murky economic backdrop, I think FedEx has been able to do a fantastic job navigating its way through this tricky environment, keeping customers happy and taking a lot of market share while also cutting costs. That makes me feel a lot more confident about this one. Doesn't hurt that stock super cheap. Trading at less than 13 times the midpoint of their full year earnings forecast. Remember, average stock this market sells at 25 times earnings. And when it all is said and done, I wonder if that forecast ends up looking super conservative. In retrospect, FedEx also pays a respectable 2.5% dividend yield. And unlike UPS, which yield is more than three times that level, I have no worries the FedEx is going to have to cut it. This dividend is safe, the bottom line. Even in a tough environment. FedEx managed to blow away the numbers last night. And looking how they pulled it off, I got to tell you, I am cautiously optimistic that this one is not done and is going higher. Maybe much higher. Net money's back everybody.
- [20:28]
Show Announcer
Coming up, all you can eat profits. Kramer's digging into the latest earnings from restaurant operator Darden and seeing if now's the time to take a bite.
- [20:39]
Jim Cramer
Next.
- [20:41]
Fox One Announcer
How will you shape the future of industrials? With confidence? Whether you need to define your strategy, optimize your supply chain, or keep pace with data driven manufacturing, EY professionals understand industrials and the sectors they supply, bringing the insights that deliver real outcomes. With a full spectrum of services, EY helps strengthen your business from factory floor to product development and beyond. So when the global market shifts, your business is agile enough to adapt. EY shape the future with confidence.
- [21:11]
Indeed Representative
You just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed when it comes to hiring, Indeed is all you need. Stop struggling to get your job Posts seen on other job sites Indeed Sponsored Jobs help you stand out and hire fast. With Sponsored Jobs. Your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster. According to Indeed data, Sponsored Jobs posted directly on indeed have 45% more applications than non sponsored jobs. There's no need to wait any longer. Speed up your hiring right now with Indeed and listeners of this show will get a $75 sponsored job credit to get your jobs more visibility@ Indeed.com madmoney just go to Indeed.com madmoney right now and support our show by saying you heard about Indeed on this podcast. Indeed.com madmoney Terms and conditions apply. Hiring Indeed is all you need.
- [22:18]
Jim Cramer
What the heck just happened to the stock of Darden, the parent of Olive Garden and Longhorn Steakhouse, as well as Ruth Chris Steakhouse, Cheddar's Scratch Kitchen, Yard House and a few others? Yesterday morning Darden reported the Stock plunged nearly 8% in response before dropping another 4% again today, suggesting that maybe the consumer is less resilient than we thought. Or maybe Darden's changes aren't as appealing as they used to be. Or both. It's funny, when you look at the numbers, results don't seem all that bad, more of a mix of positive and negative. Same floor sales were higher than expected of 4.7%, led by Olive Garden, the Big Guy up 5.9%. Longhorn Steakhouse, Really Great Bargain Place up 5.5%. Those are Darden's two largest brands by a pretty wide margin. However, thanks to inflation, their margins came under pressure and the company ended up reporting a $0.03 earnings miss off a $2 basis. Despite these higher costs, management was still confident enough to slightly raise their full year forecast for revenue and same store sales growth. But they did leave their earnings guidance unchanged. So sure it's a mixed quarter, but does that justify the stock to climb from 280 to below 185? Come on. Look, I think Wall street got freaked out by Darden's higher than expected costs. Their main culprit here is beef prices, which are it's failing all the restaurant chains except those, I guess, that are like vegan management highlighted a few of the reasons for the current supply constraints, including the screw worm outbreak south of the border. That's Halted Mexican cattle exports. No one thought that would be that big. And then the sky high tariffs on Brazilian beef. While companies tend to hedge against these potential price movements, Darden noted that they're only 25% protected from beef prices over the next few months. As they view this current move in prices as unsustainable, so do I. But it doesn't matter. They think the American cow herd will get bigger and prices will come down. That doesn't happen. I fear there will be demand destruction from higher prices. Bad way to take care of the problem, at least if you're running a restaurant, and believe me, I know that because I ran one for a decade. Unfortunately, beef inflation is going to do real damage to the profitability over this period. All the stocks are going down because of this. Now, it doesn't help that Darden is also seeing some inflation in seafood, and that's primarily due to tariffs on shrimp. That's why for the full year, management's going from expecting cost inflation in the 2.5 to 3% range. Something closer to 3 to 3.5% range. Now that's a bad sign, not only for Darden, but for the industry as a whole. The whole industry went down off the starting call. But the investors that are selling the stocks down, cost issues. I think they might be missing all the things that Jordan is doing right to attract customers in this tricky environment. I keep telling you that only value oriented restaurant chains like value or reach it retailers. That's who's attracting lots of customers this economy. And Darden is definitely focused on value. They've consistently tried to keep the price increases below the rate of inflation. They're great at that. While that may exacerbate the company's margin issues this quarter, it's clearly bringing customers into the restaurants. Every one of their casual dining brands saw an increase in visits across all income cohorts. This was led by traffic gains at their largest franchises, Olive Garden and Longhorn Steakhouse, which saw traffic up 2.8% and 3.2% respectively. That alone should have blended the losses. I can't believe they didn't. Of course, as I mentioned before, good value doesn't just mean lower prices, as customers have shown that they're willing to pay more for higher quality as long as they're still feeling still feeling they're getting a relative bargain. Olive Garden occasion rolls out more expensive items that often prove to be the most popular ones on the menu, like steak and shrimp bucatini, that dish that performed particularly well last quarter. Darden's Also been great about giving the consumer price certainty, which is more important than it might. Sound management mentioned that in the current environment, guests are actively seeking price certainty, so they know precisely what they're going to pay before they come in. Ruth Twist Steakhouse, for instance, had this $55 promotion for a three course meal. And while that's certainly not cheap, it gives people a safer way to splurge on food. Then there's the delivery side of the business. Olive Garden seeing real success with the rollout of Uber Direct, something they announced exactly a year ago today. Uber Direct lets them do delivery from their own website and they have the actual delivery handled by Uber drivers. Imagine says this partnership has helped them appeal to a younger and also more affluent customer base. The kind of people who rarely go to Olive Garden for in person dining. Interesting. Plus, they're testing a lighter portion section of the menu. And that something makes a ton of sense when you got millions of people taking those GLP1 drugs. That's the weight loss stuff. Very hard to eat big portions when you take the stuff. Of course, Olive Garden hasn't abandoned their old core customers.
- [26:58]
Caller
Customers.
- [26:59]
Jim Cramer
The people want to stuff their faces with the never ending pasta bowl while with unlimited soup or salad and breadsticks for 1399, which is what I lived off of when my kids were little. Perhaps most importantly, Darden's benefited from the same trends that have helped insulate the broader casual dining spaces from challenges facing the fast food co. Fast casual cowork brands like Olive Garden or Chili's or Texas Roadhouse are delivering strong value relative to what customers can find at a typical fast food burger chain. Remember that 1099 dish at Texas Roadhouse? That's what got me into the stock for the Chapel Trust. We had a really good game. We took some off, but now we're down badly. I think that that can rally like Darden can as management emphasize the last conference call. As customers become more selective with their spending at Darden, they're not just looking for good food at a good price. They also want places where they can, quote, connect and engage with friends and family. End quote. Now, you don't really get that from Burger King, but you certainly can get it from Olive Garden or Longhorn Steakhouse. In the end, I get why so many people sold Darden responses higher than expected costs. If food inflation is really out of control, then this is a very tough business to be in. It really is. But the bottom line, I also don't want to overlook what Darden's been doing right the company's been able to resonate with consumers at a time when they're increasingly discerning about where to spend their money. That's why I don't want to get too hung up on rising costs that, as management sees it, are temporary. And it's why I don't want to give up on Darden stock, especially now that it's sold all the way down here. 17 times earnings, 3.25% yield. You could certainly do a lot worse than owning shares in Darden, which I believe will come through this bout of inflation just fine. It always has. Maybe that's why, in the end, people like it so much. Carl in Illinois. Carl?
- [28:46]
Caller
Yeah, Jim? I was wondering. I wanted to get your take on Wendy's and see what you thought about that.
- [28:52]
Jim Cramer
Too risky, too risky. I mean, I can tolerate McDonald's here. I actually like McDonald's here at 301. Let me see. Where'd it go out. I like McDonald's at 3 or 2. And I really, I gotta tell you, I'm liking these kind of nice casuals like the Darden Texas Reynolds. They're down too much. They're down too much. Limited downside here because all the bad news is now in after darting Tony in Florida. Tony.
- [29:19]
Caller
Hey, Jim, I want to give you a big booyah and enjoy your show. You even have my wife watching your show with me, and she enjoys it.
- [29:27]
Jim Cramer
So that.
- [29:27]
Caller
That means a lot.
- [29:28]
Jim Cramer
I see you, like in an airport or down there. I'll tell you something, you tell me that, I'll give you a big hug. Give you away, you know, you both you guys, big hug. Makes me feel great when I hear these things when I'm traveling, when I go places like tomorrow, I'm Delaware, total wine and more. You want to give me a hug, go ahead. I already had a cold. I'm pretty immune for the next 48 hours. Go ahead. What's up?
- [29:46]
Caller
Yeah, and last year we met you in Florida, South Florida for the Yerbattle.
- [29:51]
Jim Cramer
And you and your wife, what, the Boca Raton one or the Palm. The Palm beach or the Boca Raton?
- [29:59]
Caller
Palm Beach.
- [30:00]
Jim Cramer
Yeah. That was a great one. My wife, really. My wife was dynamite, that one. How about we do now we go to work? What do we got?
- [30:06]
Caller
Okay, this stock I bought at 149. It keeps on going down and even has Elliott investment in it for $4 billion. Should I stay with Pepsi, Buy More, or just get out of it?
- [30:18]
Jim Cramer
Right here at 141, it is bottoming. It's at 4%. Yield, Tony, that 4% yield brings people in because it's a safe yield. And I think that management is getting energized to do some good things. You own that stock, do not trade it. And thank you for the nice comments about. I wish you were coming up to Delaware tomorrow. I could use you. Let's go to John in Arkansas. John.
- [30:41]
Caller
Booyah, ski daddy.
- [30:43]
Jim Cramer
Whoa, man. Fired up Friday. Booyah. What's going on?
- [30:47]
Caller
Couple of quick questions.
- [30:49]
Jim Cramer
Okay.
- [30:50]
Caller
I'm calling about McDonald's. Can you give me the skinny on how a dividend is? You know how they set the price on the dividend.
- [31:02]
Jim Cramer
Oh, sure. What they do. Okay, I'm sorry, go ahead. All right, well, look, they pay a dividends $77 they make. They have huge cash flow. They have no problem paying it. It's a fantastic dividend. It's been an amazing company. Does sell a market multiple 25 times earnings. I have to tell you, if you own McDonald's here, you bought McDonald's here in three or two, I think a year from now you're going to make a lot of money. And Chris Kimchinski is such a good manager. I think McDonald's is a buy. And by the way, I have to admit, as a treat, I still go had it last week. Can't beat it. All right. Darden's been doing a lot of things right and that's what I want to focus on here. You could do a lot worse than invest in this company now. Much more mad moneyhead. Ever wonder what really goes on inside our CNBC investing club monthly meetings? It's a big secret. With averages at record highs. Tonight we pulling back the curtain and sharing some market advice with you that I hope you can use. Then Apple's iPhone went on sale today and it's a. I gotta tell you, its A1 capabilities are right in front and center of you. I really think that this stock. Hey listen, we've been saying for the last week by the stock and well it's just been a real rocket gym. Of course I'm also gonna do rapid fire. Tonight's dish is lightning round and sneak Kramer. We saw yet another record close for all the averages today. And while that means we're making a lot of money right now, you still need to keep a level head about your portfolio even in this amazing bull market. Yesterday we had our Investing Club monthly meeting where Jeff Marks and I get together to walk club members through our own decision making process for the portfolio folio. We disclose our current holdings and then we take questions from Our club members. My favorite part of these meetings is taking your questions. And since we never have time to take all of them, well, tonight we'll give you kind of an inside look at what happens in these monthly meetings. Also, hopefully doling out some much needed market advice. I think so. First up is a question from Kenneth, who asks. I don't see any particular news about Waste Management, but the stock has been going down fairly steadily from its recent high. Do you know of any reason why? Is it getting to a point where I should maybe buy more or is it a sell? Okay, so look, this is really important. This is a company that really does mean the main, main factor of what controls WM is, believe it or not, lots of housing construction. And a lot of people feel that that's kind of on hold. I'm not going to disagree that. But I will say this. I think the stock's a buy. I don't think the numbers are coming down any. Any more from here. I've been waiting for the stock. I looked at it when the trust was right. The trust was thinking about buying it right here. And then I was worried about. Exactly. I just mentioned at these prices, I'm not worried. I think it's just plain out now a buy. I would buy it on Monday morning. All right, next up is Stephen in Rhode island, who asks. Santander bank has been doing quite well. I was wondering if it makes sense to continue to add to my position even at this level. Okay. Banco Santander is the largest bank in Europe. This is run by Anna Boutine. It's a sensational bank. When it got to 10. Well, that's Seabridge Gold, which is not exactly there, but when. Whoa. But I will say this. At $10, you should wait till it goes back to nine. I'm not kidding. I've watched the stock climb and climb and climb. It had a little bit of a spike. I don't like that. Under nine would be a terrific level. Still got a good yield. And there you go. Try to get it here. It could happen. All right. It's a fantastic bank, but it does sometimes trade a little strange. It's. It is one. It is my favorite bank in Europe. Now let's go to Victor in Florida who asks when is the right time to sell the banks. I bought J.P. morgan, Goldman Sachs, Morgan Stanley and Wells Fargo a few years back on. On your advice. And it done very well. I thought increasing rates was helping the banks. Now that rates are coming down, should we expect financials to drop and win? Okay, so what matters is actually the long rate versus the short rate. If the long rates higher and the short rates down, well, these banks borrow short and they lend long and that's a sensational time for them. I think all these banks are good now we own Wells Fargo for the trust and Goldman for the trust and they best been fantastic. Do you need all of them? No, but you know what? It is a little bit of pickle because they're all. These four are all great. Now I know you probably says that sounds very glib but oddly enough, Wells Fargo, which is only up 13 I think is the best position to go higher. But any of these are fine. I would like you to think that you only have one. Let's say don't put more than a fifth of your of your portfolio into banks and you can either reduce all those or sell some but you've got a great investment going. I like them all. I wouldn't sell personally. Next up, Dave in Indiana. I am trying to get my teenage children excited about following stocks. Do you have a few stocks in mind that are brand names that teenagers would recognize that also happen to be good companies for young investors in a reasonable entry point? Yes, I do. Okay, I would suggest Doordash, I would suggest Robinhood and I would suggest Reddit. Those three, I think everybody would understand. Don't have them buy them all at once. Let's say they want to buy 10 shares, buy them slowly, buy two at a time. It's okay, there's no. The old days the commission for two was the same as 100. These days no commission, just go buy on the way down use 3 to $5 increments because those stocks are all high dollar stocks and then they'll follow them because they know them. Next up, Allen in California asks Dear Jim and Jeff, that's Jeff Marks, my partner. Thanks for all of your insights, teachings and recommendations. They've been life changing. Thank you. What are your thoughts for the cruise industry with falling interest rates but higher unemployment, Carnival Corp. Royal Caribbean are abused but what the outlook. Outlook and should we climb aboard. I saw today we had someone who cut the price target in Royal Caribbean for the same reason but they also raised the price target in Vikings. So I mean I don't know what they're really getting at. I'm not, I'm not changing my view. These are all terrific, every single one of them. And royals, my, my fave. And I am not going to back away from it because I don't think it's much related to employment as it is related to value. Cruises are great value. They're far less expensive than staying at a hotel and they're very. There are a lot of fun. I've taken two of them in the last year. I got to tell you, I think they're fabulous. Next, Laurie in New Jersey wants to know, does it make sense to reinvest dividends for partial shares in this environment? Thank you. And go Birds. Go Eagles. Yes, it always makes sense. Just constantly reinvest. I don't hear anything. Don't do anything but reinvest. There, I've made that point. Now let's go to Byron who asks. This spring, at the tariff downturn, I bought Robinhood so far and Reddit. You were smart. Since then, they both doubled or more in late August, early September. I got a little nervous and sold half or more two thirds of so far. They continue to go higher and I feel like I panic too early. Can I buy it back in and buy the basis? No, I don't want you to do that. I want you to wait till they come down. I don't want you to turn a great investment into a bad trade. Every one of those is terrific. Don't feel bad about so Far. That was an incredible. Actually, look. Let's feel bad about the losers, not the winners. That so Far was incredible. We recommended so far at 4. I'm looking at my executive producer, Regina Gill. She remembers when we did it was like one of these moments. It was a cold shot. I feel terrific about it. But you just had a great investment and you booked and you booked a big profit. Nobody ever got hurt booking a profit. Our last question comes from Kyle in Michigan who asks, with rates rate cuts looming is now the time to offset an aggressive portfolio with Realty Income or Simon property group. Thanks. P.S. can club members get an autographed copy of the new book? The new book. Oh, my God, the new book. Here we go. Yes. How to make money anymore. Look at this. With a picture of me when I was like a little bit younger. And I don't know about the rules for the. For the buy, but look, just get it all right. There you go, right there. Amazon. Boom, boom, boom. Rate cuts looming. Rate cuts are Simon Property and Royal. I don't really care what. These are both fabulous companies and this, you get a monthly dividend. This thing has just been a rocket ship from 130 all the way 188. But I really, really like. Oh, there you go. I really like both of them and I think that you'll be in great shape. And thank you for mentioning the book which goes on sale September 30th. Look at this. I mean, I know I was a little younger, but I'm more spry now. That's what my trainer tells me. All right, thanks to all our club members. I really do love the club members and well, you know what? Mad Bunny's back. Different.
- [39:17]
Show Announcer
Coming up, Kramer takes your calls.
- [39:19]
Caller
And.
- [39:19]
Show Announcer
And the sky's the limit. It's a fast fire lightning round next.
- [39:41]
Jim Cramer
And then the lightning round is over. Are you ready? Ski dad time. The light round curves. My starting. Gary in Ohio. Gary, Jim Kramer. Yo, yo, how are you? How are you?
- [39:53]
Caller
Thank you for taking my call.
- [39:54]
Jim Cramer
And you're. My pleasure. Oh, thank you.
- [39:57]
Caller
You are the. You are the grand PA of Wall Street.
- [40:01]
Jim Cramer
Holy cow.
- [40:02]
Caller
I'm just going to make this quick. I want to know if I should continue, continue to hold or pull my hair out some more with CMS Energy.
- [40:12]
Jim Cramer
Consumers Energy. I like Consumers Energy. I think it's fine. It's good mark collector power. I look a little more warming up again to separate, you know, after that bad quarter. I'm coming back. Let's go to Danny in New York. Danny. Booyah. Jim. This is Danny from Brooklyn, New York. Longtime listener, first time caller. I'm from Brooklyn, New York. I love it. Happy Friday to you. So I want to talk to you about Ramaco Resources. Oh, man. You want to talk about coal, huh? Okay, look, the president likes coal. He likes nuclear. The president likes. We don't like wind and like solar. Isn't that funny? All right, here's the deal. I think that coal, this stock has gone up so much. Please wait for a little bit of a pullback because the president made one coal but the utilities owned and that's in the end, who burns the coal? Let's go to Scott in Florida. Scott, Jimmy, Jill, love, Joe. Been Ross. Thank you for watching it for over a decade now. Saw you out in Jackson Hole. Beautiful place. Incredible. Anyways, I'm calling about Accenture now. I gotta tell you, Accenture's come down enough. It hit a 52 week low. I mean how bad could it really be? It hit a 52 week low today. I don't think it's that bad. The only thing I would change is that when you do, when you put it in spell check, it always goes to C A N instead of acn. But that's not really their fault. I think that at 18 times earnings I'm willing to to pull the trigger. Accenture. And that's the first time I've Said that because I have really disliked this stock. Now we're going to go to Hector. Hector in Maryland. Hector.
- [41:42]
Caller
A big booyah from the great state of Maryland.
- [41:45]
Jim Cramer
How you doing? It's a fabulous state. It's really good there and I'm doing well, thank you. What's going on?
- [41:52]
Caller
Yes, I owe stock and stock symbol.
- [41:55]
Jim Cramer
Okta and I was wondering, should I like. I. I like Octa because I like identity management. But you know what? Palo Alto's got great identity manager now that they're buying cyber art. So I got to send you over to PanW. All right, let's go to Philip in New York. Philip, how are you? I'm doing well. How about you? Great. Listen, I've been watching your show for 14 years, since I was a kid and just wanted to thank you for all the work you've done with. Thank you, man. That was right about then. You were there when we started with Fang. Yeah, right here, Fang. All right, good. Listen, my question. With this week's rate cut and more likely coming, do you think falling mortgage rates finally send us to the moon with Rocket company Man? Everyone's kind of. Here's the problem, sir. Everyone's kind of done that trade. I would much rather see it be in Wells, which is resting here at 80 divided by 4. Call it a $20 stock. I just think what matters is that Wells is the one at this point that is spring loaded. This one has already gone off. And that land jump of the lightning round.
- [43:02]
Show Announcer
The lightning round is sponsored by Charles Schwab. Coming up, which companies are best at using AI to boost their profits. Kramer is giving you his take on the current state of the AI revolution.
- [43:16]
Jim Cramer
Next, we're starting to see some tangible evidence that artificial intelligence can genuinely raise numbers for companies. And it's a welcome change. For the longest time, I've heard endless gripes about AI Specifically the fact that Nvidia, which makes the chips AI runs on, has been the only company making real money from. From the theme. It's a great way for video to make a portion, but we haven't seen much evidence of anyone else benefiting from it. Now, I think that there's some truth to that, at least when it comes to the giant hyperscalers. The matters open eyes alphabets that are spending tens of billions of dollars take the mantle as the top chat bot. If you can become the top dog, you might become to the chat bots, but Google is to search means everything else is better. Bing. Which would also mean all the spending was terrible waste of money. For the losers, basically we have an AI arms race and an arms race. You only really want to own the arms dealers. But we finally have some companies that I've been able to, that I've really been able to, you know, kick the tires and say, you know what? They are making money with AI, they are creating, let's say in the case of FedEx, we saw them create patterns of goods and where they're shipped that can be gamed correctly. And that saved FedEx a lot of money that it told you about last time when reported. They're putting up superior numbers, especially on cost because of the pattern recognition. AI is working for them and it's making the workplaces a lot more efficient. That's how you can make a lot more money without a lot more volume. When I talked to Tim Cook this morning, the CEO of Apple reminded me that the iPhone 17 is full of AI, including center stage. Oh, man. This great new feature is for selfies which ensures that everyone in the picture gets in the picture doesn't cut off. My eldest, my eldest daughter, she's got real long arms. We call her CC Long arms because she's always the designated selfie taker as fewer people are cut out of her selfies than me. Where it's like you got mostly half people being able to do that automatically with software and not get anybody cut out. Wow, that's worth a serious upgrade. Tim tells me, sharing a lot of interest. He and I both like that. We both love taking selfies. This new camera is pure dynamite. Next month, when Salesforce hosts its Dreamforce conference, the company is going to show you real artificial intelligence use cases, many of which have augmented sales and earnings for their clients. Boy, I can't wait to see that. Mark Benioff's Agentix portfolio, basically bots that interact with humans, is growing by leaps and bounds. The analysts have adopted a rapid Salesforce as older businesses are no longer are growing the way they used to. Now I don't see that happening. I do want to see some accelerated growth from this particular Gentix portfolio though. But then I've been thinking, I say, this is Jeff Marks, my partner for the travel Trust. I said, you know, after the stock severe decline, Salesforce is down 26% this year. Maybe we don't even need to see turbocharged growth from Magentix. We may be near the levels where the growth of the Agentix business can soon make up for whatever they've lost from traditional cloud software, if they've really lost anything. Hey, speaking of agentix, there's no doubt the crowdstrike cybersecurity business is crushing it because the air agents can't be trusted not to be hacked. The North Koreans are going hard against the agents. They even have a game plan that includes applying for and getting jobs at companies that hire remotely. One was hired. That's right. One of these bots from North Korea was hired and performed at such a high level that his superior wanted to keep him. But alas, he was a spy. I keep hearing that doing a great job in the banking brokerage business. I don't know, we just can't see it yet in the efficiency numbers that they publish quarterly. Shame goes for the companies that serve them, especially the accounts and lawyers. The private entity is very hard to gauge. I know that there are AI programs out there that digitize and automate what people do at banks, but banks seem loath to say which jobs are being wiped out. That said, I think these professions are reluctant to use the service of AI too greatly because of the mistake factor. You know, even after all we talked about for last couple of years, there are just too many mistakes still being made by the chat bots. And you really can't afford to screw up like that if you're working as an accountant or a lawyer to rely on them now before they reasoning powers. That seems ill advised, but not for long because the next generation arms dealer Nvidia product has products that have the capability that I think will exceed the capability of a thinking person. It's finally going to happen. You're going to trust the machine over the human. As long as there's no reasoning. The mistakes mean that it's too hard to rely on these bots for any serious but once that next generation chips comes out next year, next year it's all going to change. It's coming. So be patient because it's almost upon us. I like to say there's always more somewhere promised by just for you. Right here. Money. I'm Jim Cramer. See you Monday.
- [48:08]
Podcast Disclaimer Narrator
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer@ Capella University, learning.
- [48:49]
Fifth Third Bank Representative
The right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more@capella.edu.