Mad Money w/ Jim Cramer 9/4/25

Summary

Mad Money with Jim Cramer – September 4, 2025

Episode Overview

This episode of “Mad Money” with Jim Cramer delves into strategic investing during market volatility, focusing on the wisdom of buying quality franchises on dips, particularly Home Depot. Cramer shares his six-part framework for evaluating retail stocks, discusses the latest with IBM’s AI and quantum computing, explores cybersecurity trends with Palo Alto Networks, and spotlights Hinge Health’s digital physical therapy IPO. The episode features signature segments like the Lightning Round, where Cramer gives rapid-fire stock opinions, and closes with in-depth commentary on Salesforce's current situation and future outlook.

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Main Theme

Navigating Volatility: Buy Quality, Ignore the Noise

Cramer’s core message: Focus on buying high-quality companies—especially established retailers—during broad sell-offs rather than chasing trends or panicking with the crowd. This is illustrated by his detailed breakdown of the decision to double down on Home Depot despite headwinds, a playbook for handling choppy markets, and a series of interviews dealing with innovation and disruption in tech, cybersecurity, and health.

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Key Discussion Points & Insights

1. Home Depot, Retail Investing, and Market Psychology

Timestamp: 01:55 – 10:28

• Context: Cramer recounts his fund’s year-long accumulation of Home Depot during a difficult market, amidst skepticism and raising rates, now vindicated by stock gains.
• Cramer’s Six Criteria for Buying a Retail Stock on Weakness:
  1. Personal Experience: “Do you personally shop there?...If I thought my Home Depots…were dirty or didn’t have good customer service…couldn’t justify owning the stock.” (03:48)
  2. Strong Balance Sheet: Home Depot weathered the 2007 housing crisis due to “amazing balance sheet…cash flow machine.” (04:38)
  3. Proactive Management: Home Depot acquires businesses aligned with pro contractors despite housing slowdowns.
  4. Interest Rate Resilience: Favor companies that “want lower rates but don’t need them.”
  5. Scale: "You have to be so powerful…that you can manhandle your suppliers…Home Depot has leverage." (06:14)
  6. Set-and-Forget Dividend: “Home Depot has a solid 2.23% dividend yield...let it compound for the rest of your life.” (07:01)
• Candid Take on Dip Buying: “Not all stocks and not all dips are created equally. Some are a heck of a lot better than others.” (02:35)
• On the Fed and Rate Cuts: Cramer expects imminent cuts, boosting slow-growth retail stocks.
• Highlight: “When you buy quality, you can let it compound for the rest of your life. And that’s how the big money is made.” (07:06)

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2. Lightning Round – Quickfire Stock Analysis

Timestamp: 40:20 – 43:41

Cramer answers live calls and provides brisk, strong opinions on multiple tickers.

• Palantir: “I still think it’s going to $200.” (41:10)
• Rich Tech Robotics: Appropriate for a “spec” slot in portfolios; risky.
• Viking Therapeutics: “No, no, no. We have Eli Lilly. Why do we have to settle? Let’s don’t go for the raggedy rest. Let’s go for the best.” (41:52)
• Madison Square Garden: “Why don’t you take half and then see what happens?” (43:21)

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3. Interview: IBM’s AI and Quantum Leap with Arvind Krishna

Timestamp: 14:25 – 23:33

• AI in Fantasy Sports & Entertainment: IBM’s AI powers recommendations in fantasy sports, F1, UFC, tennis, and more, crunching “36 billion data points.” (15:27)
• AI Practicality & Monetization: “When you say AI, it means money. It is not something ethereal.” (17:52, Cramer)
• Quantum Computing: IBM has “$1B in signings” and “75 actual quantum computers…on the cloud.” (19:14)
• Quantum’s Real-World Role: “You could do it in seconds on a quantum computer. ...It just solves problems that are beyond the reach of classical computers.” (20:32, Krishna)
• Partnerships & Revenue: Confirms alliances with AMD; “Lisa [Su, AMD CEO] doesn’t do anything unless it’s practical and generates revenue.” (21:10)
• On Recent Stock Volatility: “We beat on the top line, we beat on the bottom line, we beat on cash flow and we had a good software quarter. ...We feel very good.” (22:03, Krishna)
• Mainframe Reinvigoration: “Mainframe is on fire…best starting quarter on mainframe…now you can do fraud detection in real time.” (22:27)

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4. Interview: Palo Alto Networks & the Future of Enterprise Security

Timestamp: 25:19 – 33:35

• Bold Prediction: Browsers will be banned in enterprises within 24 months due to agentic AI risk. “If a browser starts doing things on its own by taking my credentials...I want to control the browser in the enterprise space.” (26:29, Nick Caserior)
• On Credential Theft: “89% of breaches happen because of credential theft.” (28:39, Caserior)
• Need for Unified Platforms: Fragmented identity solutions increase risk; the future is one seamless platform.
• CyberArk Acquisition: Defends the move as key to securing privileged access for all users, not just a few.
• Real-World Example: Discusses how modern threats mean "everybody in the company has some amount of privilege and proprietary information. Everybody needs to be protected equally." (30:57)
• Industry Shift: Proposes “AI as a service” will reshape enterprise applications in the years ahead.

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5. Interview: Hinge Health’s IPO and Digital Health Transformation

Timestamp: 34:11 – 39:55

• Company Overview: Digital physical therapy provided via smartphone, using computer vision and AI to customize and scale care.
• Strategic Moat: “Our technology moat and our channel partners…things that are three to four years ahead of...anybody else in our sector.” (35:09, Daniel Perez)
• Retention & Value: 98% customer retention in 2024; “When customers buy Hinge, they typically stay with Hinge.”
• Opiate Alternative: Device called Enzo delivers nerve stimulation — “a great alternative to opiates” — over 50% reduction in pain shown in partnership with Memorial Sloan Kettering. (37:46)
• Hinge Select: An in-person care network, negotiates rates up to 50% below private insurance.
• Profitability: Rare “Silicon Valley” IPO that’s already free cash flow positive.
  • “Free cash flow is a little bit rare in Silicon Valley...ultimately that is what matters...” (39:31, Perez)

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6. Salesforce Earnings & The AI Efficiency Paradox

Timestamp: 43:57 – 48:31

• Earnings Paradox: Despite strong AI-driven client results, Salesforce stock sold off due to conservative guidance and analyst fears that efficiency (fewer users needed per client) could ultimately cut revenues.
• Market Skepticism: “The more successful Agent Force is, the worse long term will be for Salesforce’s old core business.” (46:19)
• New Business Model: Reminds viewers the Agent Force offering is “consumption model, not a per user model.”
• What Would Flip the Narrative: “If Salesforce were to report huge earnings and then guide up well above what Wall Street’s looking for, that would change the narrative. But that hasn’t happened yet, will it? That’s the $230 billion question.” (47:19)

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Notable Quotes & Memorable Moments

• On Retail Investing:
  “When you buy the stock of a tremendous franchise…you just need conviction that one day you’ll be real right.” – Jim Cramer (03:13)
• On Home Depot’s Quality:
  “Home Depot has leverage over suppliers…Scale makes right.” – Jim Cramer (06:14)
• On Buying Dips:
  “Not all stocks and not all dips are created equally. Some are a heck of a lot better than others.” – Jim Cramer (02:35)
• AI Means Business Value:
  “When you say AI, it means money. It is not something that is ethereal.” – Jim Cramer to Arvind Krishna (17:52)
• On Quantum Advantage:
  “If I was to simulate a lithium hydride moving through an electrolyte…years on a classical supercomputer…seconds on a quantum computer.” – Arvind Krishna (20:32)
• On Cybersecurity Future:
  “Unless there are controls built into agentic browsers…they’re not going to be allowed in Enterprises in 24 months.” – Nick Caserior (Palo Alto Networks CEO) (26:29)
• On Healthcare Automation:
  “Our technology moat and our channel partners…three to four years ahead of anybody else in our sector.” – Daniel Perez (Hinge Health) (35:09)
• Lightning Round Palantir:
  “I still think it's going to $200.” – Jim Cramer (41:10)

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Timestamps for Major Segments

| Segment | Timestamp | |----------------------------------------------|--------------------| | Home Depot/Retail Strategy | 01:55 – 10:28 | | IBM AI & Quantum (Arvind Krishna interview) | 14:25 – 23:33 | | Palo Alto Networks (Nick Caserior interview) | 25:19 – 33:35 | | Hinge Health (Daniel Perez interview) | 34:11 – 39:55 | | Lightning Round | 40:20 – 43:41 | | Salesforce Discussion | 43:57 – 48:31 |

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Conclusion

This episode delivers actionable insight on why—and how—to buy into high-quality franchises amidst market noise, complemented by deep dives into tech, cybersecurity, and healthcare innovation. Cramer’s straightforward criteria and industry conversations serve both new investors and market veterans navigating uncertain times.

Transcript

[Jim Cramer]

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[Jim Cramer]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer arc. I'll be with my friends. I'm. I'm just trying to help you make some money. My job is not just entertain, but to educate and teach you. So call me at 173cbc or we at Jim Cramer. One year ago today, one year today, we bought the stock of Home Depot for the Travel Trust. We were looking for a rate cut. September Fed meeting Historically a terrific boost to the stock of this tremendous chain. Oh, we got that rate cut, but it didn't do what it was supposed to. Longer term treasury yields spiked in response to sending mortgage rates higher and starting a huge descent for the stock of Home Depot. But did we sell? No, we did the opposite. And we told you to do so too. We bought more and more and told club members, at last this is your chance to get big in the stock of Home Depot, which you don't usually get to do. Why do we do that? Because of days like today when the stock shot of $6 and change and the franchise value shines. Part of a general market advance for Dow gained 3 or 50 points S&P advanced point A 2%. The Nasdaq jumped point 98%. Lots of pundits make fun of people like me who urge you to buy the dips. But not all stocks and not all dips are created equally. Some are a heck of a lot better than others. Home Depot is one of the better ones. Sure you had to endure some real pain over the last year and I'm sure some Climbers club members thought we were nuts with our relentless advocacy on of the chain buying it right into some ferocious selling. But now we're starting to see signs that the Fed has no choice but to start cutting again and it is time to reap the gains. Tomorrow we get the Labor Department's nonfarm labor report and all that predated that we just saw today. Job openings, ADP reports, exec surveys. They indicate that even though we have some tariff related inflation pressure, could be one time only the job market's weakening off that we're going to get that rate cut and it will be meaningful. And that's exactly the moment when when I think Home Depot is really going to spike. And you know what? When you buy the stock of a tremendous franchise like this company, you don't have to be right about all the details immediately. You just need conviction that one day you'll be real right. One day. That's why I want to spend some time tonight on what it means to buy the stock of the great franchise into weakness. Not some software as a service company or a red hot semiconductor equipment stock or the life sciences business. All of which are endless ragers until they aren't. But I'm a really very good grade growth retailer that we all know with a terrific reputation that can take a liking and keep on taking. First let me just say that I do like the semis and the software companies. I'm fine with health care. I like growth wherever I can find it. You never go wrong with tech growth as long as it's measured and profitable. But often it isn't. Growth does come though in many forms and one of them is in retail. I have my stable retailers that I know are well managed companies that can deliver in any environment. Not immediately though. I Home Depot stock traded down to the 330s at its post liberation day lows after we bought it a year ago. Now we did buy pretty much the whole way down. We bought it for the trust give us a great cost basis. Now we are up nicely with the stock back to 4 and 11 change even as nothing much has happened yet. In fact, Home Depot missed the last quarter and the stock opened down big again. Another alert from us to buy on a rebound. When management told us on the conference call that the quarter started slowly but then got better and better. That's called a good cadence. How did I know that the dip buying so castigated by so many wise talking heads I see on TV would work? Because the stock of Home Depot met a six part criteria I have always used when I want to buy a quality growth retailer into weakness. Here are the six. First, do you personally shop there? I don't ever want you to buy a retailer that I don't. You don't shop and that'd be ridiculous. I'm a gardener. That means actually medically I go to Home Depot. If I thought by the way my Home Depot or Home Depot more than one were dirty or didn't have good customer service or didn't take care of their plant inventory, you got to spray them all the time. I couldn't justify owning the stock. If I bought the stock and then it went down, you know what would happen? I just give up and I kick it out. Oh, buy high, sell low. Now there is an ill advised strategy. There's a reason by the way, that the trust also owns Costco. We shop there constantly. We have four different Costco's where I live and I always visit one if I see one. I do that because it's a core position but also because my wife and I just can't stay away from the place. I've never been worried. Richard Galante, the former CFO put the fear of God into all of Costco suppliers to ensure they kept prices low. The Costco carts one of the best bargains on earth. But if I didn't walk the stores I wouldn't know to buy more stock. But I don't go to American Eagle Outfitters. Today's rager. Don't ask me about that woman who knows about her jeans. What takes that. That seems like a real one off one of me. I always used to shop at Target but now I shop there when I'm in San Francisco because I think it costs too much. But Home Depot, well, prices good, service fabulous. Second, how's the balance sheet? If you listen to Tony Spring last night, the CEO is turning Macy's around. He seemed most proud of how he'd been able to improve the balance sheet at that was a very cyclical retailer. And you know when you're in a cyclical business like retailing, you can't afford to have a Weak balance sheet Home Depot. In 2007, we had the worst housing crisis this nation had seen since the Great Depression. Every hedge fund manager and his second or third cousin shorted anything housing related, including Home Depot. Oh, they all made out like bandits betting against the Lenar and the Dr. Horton. But those who bet against Home Depot. Sorry, why? Amazing balance sheet. That's why it's a cash flow machine. It came out so on top that people who bought it and stuck with it made fortunes. I remember that. Third, you need a management team that refuses to sit still and wait. Home Depot recognized that the housing industry wasn't going anywhere in the last few years thanks to a lack of inventory and higher interest rates. So it decided to play into its own strengths and acquire businesses that work well with professional contractors. Businesses that excel in roofing pools, ceilings, ones that could deliver to job sites. Ones that could work even if homebuilding slowed down, which it did. Fourth, you need a management that wants lower interest rates but doesn't need them. I don't like any stock that needs the Fed to be helpful. That's all I have to do is keep watching the Fed. Those are for suckers. You can't just sit there and sweat about what the Fed's going to do. You want to be able to make money even when the Fed's not inclined to bless us with lower rates. Then you can really clean up when they finally do start cutting. Fifth, you need what we call scale. You have to be so powerful and have such a large footprint that you can manhandle your suppliers. They all need your short their shelf space and not vice versa. A company like Home Depot has leverage over suppliers, so if something happens like the tariffs, they can tell anyone who's really raising prices beyond reason. Cut it out or you're out of the store. Scale is might make it right. 6. And finally, is it good enough that you don't have to trade it? Home Depot has a solid 2.23% dividend yield. You can own it and let that dividend compound over time. You have no need to flit in and out of the stock. Trading in and out is another rarely rewarding strategy because it's almost impossible to time it right. When you buy quality, you can let it compound for the rest of your life. And that's how the big money is made. Oh, and the bottom line, when the Fed does start cutting, your slow growing retailer stock gets turbocharged as all the so called smart money then comes flying in. If you bought the stock on the dip like we suggested, you now have the privilege to call those people chasing the stock phone depot by their real names, dumb money. And I only put it that politely because there's some words that you can't say on basic cable or even streaming. Go to Jonathan in New York. Jonathan, what's going on? Jim Cramer. What's going on, buddy? I don't know. I'm liking the tape. We got this one, right? I told the club members, nice call. Let's go to work. Wonderful. Good to hear. Listen, buddy, I'm calling about this trade desk. You know, I want it. I owned it before the pandemic and I sold it. And I've always wanted to get back into it, and now it's at that April price, but it's down 55%. I like Jeff, but they've got Amazon as a competitor and you know, Amazon is one of my absolute favorite companies, and I don't want to go against Amazon. Can you make some money? Yeah, but there are other ways to make money that are easier and better. How about go to Vijay in Massachusetts. Vijay? Hi, James.

[Arvind Krishna]

This is Vijay Khodia from Boston.

[Jim Cramer]

How are you? I am doing well. How about you, sir?

[Arvind Krishna]

Good, good. I have a question on Walmart stock.

[Jim Cramer]

Yes?

[Arvind Krishna]

Considering rising inflation on one hand and potential tariffs on consumer staples on other.

[Jim Cramer]

How do you foresee two factors impacting Wal Mart stock in long. You asked me this because people have Wal Mart wrong. They are very forthcoming company. They say, listen, we have some problems. They're very. They're very honest. They're terrific. And what they've done is makes it actually end up scaring people out of their stock. It does have a high price earnings multiple. I do prefer Costco. I do hope Costco has a just okay month so you can buy that cheaper tomorrow. But Walmart's fine. It's a fine stock. All right, listen to me. Owning retail growth stocks like Home Depot will help you get through thick and thin. And when the Fed does start cutting rates, be ready to make some turbocharged gas. Oh, man. Big Blue is delivering big data for fantasy football. I'm learning more about how the company produced over 36 billion insights to help fans in their drafts. And Palo Alto Networks CEO is out with a bold prediction when it comes to the future of browsers. I'm hearing more about his stance with the man himself. And Hinge Health has been one of the year's strongest IPOs. And for reporting a phenomenal first quarter, I'm checking in with the digital physical therapy player to see if the momentum could continue. So stay with Kramer.

[Mad Money Announcer]

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[Jim Cramer]

On Fox 1. You can stream your favorite news, sports and entertainment live all in one app.

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It's raw and unfiltered.

[Jim Cramer]

This is the best thing ever. Watch breaking news as it breaks. Breaking Tonight, we're following two major stories.

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And catch history in the making.

[Jim Cramer]

Debate drama Touchdown.

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It's all here baby.

[Jim Cramer]

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[Jim Cramer]

What do we make of the recent rollercoaster action? IBM Going to the most recent quarter in late July, this stock was up 50% over the past 12 months. Finally, it felt like the legacy tech colossus had gotten a new lease on life thanks to its popular AI related solutions. But when IBM reported a month and a half ago, even though the headline numbers came in better than expected, Wall street was concerned by their slowing software growth. Management was adamant that this came from the mainframe side, which should improve later in the cycle. But that wasn't enough to prevent the stock from plunging 7.6% in a single session. Since then, the stock has struggled to find its footing. So where does IBM go from here? Earlier this week, I got a chance to sit down with Arvind Christie is the chairman and CEO of IBM. Learn more about some of the amazing things that IBM is up to. Dynamite stuff. Take a look. This is one of the most exciting times I've ever seen at IBM. And one of the main reasons why, Arvin, is that we just did our fantasy trip and the thing read our minds. The thing is, you look, it's using.

[Arvind Krishna]

Artificial intelligence to really help you construct the best team. When you think about it, based on the players you got, who should you trade for, who should you get? How do you really construct a team? It could pass through 36 billion data points. That's probably a bit more than you would look at and really help you have a great season.

[Jim Cramer]

But if people aren't following football, they might be following F1. If they're not following F1, they might be following tennis.

[Arvind Krishna]

So F1 tennis, UFC, these are all the places where we just want the fans to have more fun. And if you want to have more fun, you use the air behind the scenes to really engage them more, give them insights they might not otherwise have, help them decide who might win, who might lose, and just give more insights on the player themselves.

[Jim Cramer]

These are big businesses. I think there may be people who say, well, wait a second, Jim, you're just interested because you do football or something. It's really the opposite. The networks, everybody wants you to stay with them. That's where the money's made. It's made in the fourth quarter in football. Used to turn it off. That's the money quarter. You are a driver, a major driver of profit for these customers.

[Arvind Krishna]

Look, fantasy football, you started with hundreds of millions of people play it each year. Just Ferrari F1. I think they have 400 million. They call them tifosi or Italian for fans. So you look at ufc, hundreds of millions globally. These are big businesses. And if you can engage the fans a bit more and get them a number of fans to increase. You talk tennis, right? What about match number 127, has no commentary, but probably has 50,000 fans back home. Can you give more about that on the app, which you probably will never be able to do on broadcast television.

[Jim Cramer]

Are you working to go around the world with sports? Because some of this, some people are so crazy around the world for international football, for cricket. I Mean, these things have big followings.

[Arvind Krishna]

We do. So soccer or football in the rest of the world, we help the teams there actually go scout better players. That's a real case for us in Spain. We're thinking of other areas where soccer and you can apply it Cricket? Not yet. You're giving me some thoughts there. But golf, certainly globally. Tennis, globally. Because these are global events. These are not just here. People come from all over the world to both watch and play now.

[Jim Cramer]

But it's also a metaphor. People now understand that's not software, that is AI and you have practical. AI is the way I look at it. When you say AI AI, it means money. It is not something that is ethereal that you have to say, of course we're using AI. You are demonstrably a leader in this field.

[Arvind Krishna]

Look, seven and a half billion dollars of revenue and signings over the last 18 months. Roughly so. And it is because we go to our enterprise clients, auto sports teams and we say, here's a hard roi. You can use this to engage fans more. If you keep a fan for 20% more time, you are going to make more money, there's no question about it.

[Jim Cramer]

Yeah, it's no doubt about that. You can't be winning in your dot com unless you have you because otherwise we'll just go to another now another area that you're excelling in that we have to really drill down for our viewers because there are a lot of people who claim, just like AI claim, they are doing quantum. You're not claiming quantum. You're teamed up with one of our favorite companies, amd and you're going to be generating real revenues with quantum so.

[Arvind Krishna]

On quantum to date. So that is over the last few years we have a billion dollars in signings from both commercial customers, universities and governments. That's a hard number. That's not revenue in a given year. But that is to date.

[Jim Cramer]

No, but that's important because a lot of the companies we have on, they're what they call themselves pre revenue.

[Arvind Krishna]

Yes.

[Jim Cramer]

What's a pre revenue company?

[Arvind Krishna]

So we're not quite pre revenue. We are post. However, we also have built 75 actual quantum computers that we keep functioning for a year or more on the cloud so people can access it. Not a simulator, not just software, an actual quantum computer.

[Jim Cramer]

So what is it to simulate the natural world.

[Arvind Krishna]

So when you say natural world, how does a fertilizer work? How do plants do photosynthesis? How do I maybe understand how lithium hydride kind of important for EV batteries? How does it really Work. Why does it generate heat? All these things, you got to get down into quantum chemistry. You got to understand how do molecules form, how do they interact with what's around them. That's what we mean by natural world. That's what you can do on a quantum computer. And that is something that is almost impossible to do on a normal computer. So that is why it's an advantage.

[Jim Cramer]

Okay, I hear the passion in your voice. These are both areas that intrigue individuals. But they are actually, again, quantum could be a bigger business. How much faster is it than what we currently have?

[Arvind Krishna]

So if I was to simulate a lithium hydride moving through an electrolyte, you would probably have to spend years on a classical supercomputer. You could do it in seconds on a quantum computer. So that is the kind of advantage. Now, believe me, this is not going to replace where your bank balance runs. So it doesn't obviate the need for classical computers. It just solves problems that are beyond the reach of classical computers.

[Jim Cramer]

But at the same time, your team up with Lisa Su in AMD indicates again, she doesn't do anything unless it's practical and generates revenue. So this is a very interesting team up.

[Arvind Krishna]

You know that look, so Lisa brings both a high performance computing or supercomputing. And I, when we team it up with our quantum, that is the happy mixing of the two that really is going to bring value to our clients.

[Jim Cramer]

I remember when Jensen Wong told me, listen, we, if they do quantum, we're in there too. Well, we know that Lisa feels the same way. Now I know the reaction last quarter was quizzical to me because the reason I say that is because software I believe is accelerating. But you also have all this consulting coming from the mainframe. Are people misinterpreting the just general since the quarter? Because otherwise, man, this was the number one tech stock I followed. But maybe people shouldn't have been so quick to sell given the fact that there's the fundament that next year could be very big.

[Arvind Krishna]

So Jim, you know the traders far better than I ever will. I focus on running a good business.

[Jim Cramer]

Oh, I'm great.

[Arvind Krishna]

And I want to make the good into great. So we beat on the top line, we beat on the bottom line, we beat on cash flow and we had a good software quarter. Could we have done even more in software? Maybe. But we generated almost 8% growth in software. So that is, we feel very good. Great AI, great automation, great red hat, of which I know you're a fan.

[Jim Cramer]

But the acquisition, last acquisition is great too.

[Arvind Krishna]

And yes, and you said mainframe. Mainframe is on fire. We had the best starting quarter on mainframe when we released a new mainframe that just got released at the end of June. And in less than two weeks we sold more than we ever have in a starting quarter for mainframe. And the reason for that is back to AI. We have imbued the mainframe with AI. So now you can do fraud detection in real time. You tell me how much value that is for banks and payment companies.

[Jim Cramer]

There are people who think that, oh, it's a couple of banks. I haven't found a bank that is off IBM, do you have 100% share?

[Arvind Krishna]

I don't know whether we have 100% but we have a large share with banks. I think most large retail banks and large payment companies run on the mainframe.

[Jim Cramer]

Well, look, I want to congratulate you. This is exciting time and I still am trying to figure out how you knew exactly who I was thinking and why in my fantasy trip. It's him. It's this company that does it. Arvind Krish is the Chairman, President CEO of IBM. Thank you for all you do.

[Mad Money Announcer]

Coming up, it's a networking event. Cramer's going one on one with the CEO of Palo Alto Networks and getting the latest in the cybersecurity space.

[Jim Cramer]

Next.

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[Jim Cramer]

Let's talk about Palo Alto Network's wild ride. This cybersecurity kingpin is a long, long time holding for the Chapel Trust. And it has been a huge winner for the CBC investing club. But in late July, the stock got clobbery after it Learned about its $25 billion plan to acquire Cyberark, another heavy hitter that's all about protecting so called administer accounts, the top target for hackers. Wall street was worried that this deal was a colossal overpay meant to cover up some sort of slowdown in the core business. That is what we thought. We have always loved Cyber X. I didn't get negativity, but when Palo Alto reported its most recent quarter in mid August, while the company shot the lights out, the stock jumped 9%. I think it can keep climbing, but I want to hear from the man. Let's check in with the cash roar. He's the Chairman CEO of Palo Alto Networks. Get a better read. Nick in person.

[Nick Caserior]

Welcome.

[Jim Cramer]

It's great to see you. You've been saying some really provocative things. I'm going to go right to it.

[Nick Caserior]

Let's do it.

[Jim Cramer]

I heard you in relation to, to Prisma Access. You made this. You made this prediction. Said, this is a tough prediction and we'll see if I have a in my face. But I think browsers become real. They will be banned in enterprises.

[Nick Caserior]

You're starting with the egg in the face question.

[Jim Cramer]

The boldest predictions I've heard.

[Nick Caserior]

I have a, I have a lot of respect for, you know, my friend Sundar, Sam Altman, Dario, all these people are building these amazing models and spending tens of billions of dollars making these models work. And now I hear from them after making all these models successful and the chat, gpd, Gemini, llama, whatever you have, they're saying we have to build an agentic browser because the browser will do all the work for you. Now, you know, for me, an agentic browser for me as a consumer is great. Next time I come to New York, you can book my ticket. It can get me a reservation, it can get me, you know, an Uber. It can do all kinds of stuff. But that means it has to take my credentials and use them right now. I've been always saying when you get into agentic tasks, credentials become very important and your ability and desire to give them autonomy becomes important. Will you let it decide for you? And I think the whole idea of Browsers in commerce space, they're all going to build it. It's at odds with the enterprise. If a browser starts doing things on its own by taking my credentials as the CIO or IT professional, I want to control the browser in the enterprise space because I don't want to run loose me. So I think unless there are controls built into agentic browsers which are oriented around credentials and enterprise security, they're not going to be allowed in Enterprises in 24 months.

[Jim Cramer]

Who's going to tell people that they have to change that?

[Nick Caserior]

I think CIOs and CISOs are, but.

[Jim Cramer]

They don't understand it unless they bring you in. I think a lot of people feel very complacent. They say, oh, it's fine.

[Nick Caserior]

You know, as Jim, as I say, it's better to be lucky than good. We bought a browser company 18 months ago which is a secure browser. I don't know if you saw this morning another software company bought a browser. I think another one was bought about three months ago. So suddenly every security enterprise software company wants to build a browser. Well, we figured that out 18 months ago for a different reason. But now we're busy pivoting that to make sure we can deliver a secure browser to all the enterprise customers out there.

[Jim Cramer]

Well, you, you also made some great sense. It was also in reference to cyber. Right now we have the equivalent of people once they're in the building that can roam anywhere. We're doing that with our computers too. They can roam anywhere. That seems silly.

[Nick Caserior]

Well, look, if you, if you. I've always said you have to look at cybersecurity from the outcome perspective. If you look at the outcome today, 89% of breaches happen because of credential theft. And if you tell me identity solved, I got a problem, right? If 90% of the attacks are happening because somebody stole your credential and you're saying I didn't do security works. I don't think it works. It doesn't work because once you get in the building, you're allowed to roam free. And if you do something wrong, we have no idea. You only know that for about 500,000 users, which are called privileged access users, which are controlled and managed by cyber or their competitors. I think that needs to apply to every user in the enterprise because every use in the enterprise today has enough credentials to do harm or if somebody takes over the credentials, that harm can be done to the company.

[Jim Cramer]

Well, tell me what, what's the value of just being able to go to you and have both A privileged access Pam by using cyber or say, well, we're going to our friend Todd McKinnon. Opt in. Have a different provider working with you.

[Nick Caserior]

Well, I think part of the challenge, Jim, is that the more you keep fragmenting the value chain, the harder it becomes for people to make sense. Now you're asking enterprise customers to become sophisticated identity managers because there are three part solution by part. A, from one, do a handoff to B, do a handoff to C. That makes no sense. I want to follow the life cycle of a user. I logged into my company network. My company knows everything I did. It's all logged, it's all tracked. And if God forbid something bad happens in a heartbeat, AI can figure out who did it, how it happens. So we can go plug the hole. If I got to go figure out and say, well, Jim was in here but I don't know where he went. Oh look, he came, showed up here. It takes a long time to stitch this data together and figure out where the identity issues are. So I think it's time for an identity platform. I think in 18 to 24 months from now that is where the industry will go. And our job has been to anticipate the inflection point, do something in that space and go build towards it. So we built Xia when we needed to. We build a sassy solution. I think it is next.

[Jim Cramer]

Now he's a chairman of. He came in and I'm talking about someone I've done for for 20 years and he was the first guy to tell me, you know what the bad guys look to see who is left. Even in the C suite, they imitate that person and if he didn't have us, they would go through. Is it still the case?

[Nick Caserior]

Look, it's this, you know, this industry was created that 15 to 20 years ago, the identity industry, kind of roughly when cybersecurity started. At that point in time there was a very simple model. There are 15, 20, 100 people who have keys to the crown jewels and everybody else is just a regular employee. Unfortunately, all of have access to our crown jewels. I have access to my earnings script before you do. If somebody can get into my email and figure out the earnings before there is economic opportunity for them. I'm not a privileged user. So the point is everybody in the company has some amount of privilege and proprietary information. Everybody needs to be protected equally.

[Jim Cramer]

But if we have to route all the traffic, everything's going to slow down.

[Nick Caserior]

Well, that's why we don't have to. That's what SAO bearc has done so successfully is they figured out a way with the lowest intrusion, lowest friction, lowest latency way possible to figure out a way to manage the crown jewels and manage the access for a lot of users. I think we just need to take that. They today cover 5% of enterprise price. Let's get them to 100% and hopefully solve the 90% breach problem.

[Jim Cramer]

Well, one of the things that he always told me I used to say nobody listen what happens when people leave your company. They could go do anything nefarious against you, he said, because they don't want leaves and there's no way. But if they did, I don't think it works very well for them. They don't have anything to get it.

[Nick Caserior]

Well, the way privileged access management works is the day you're gone, all your access controls are reconfigured, you're out, you're no longer able to access. To be fair, that's true of any identity system. Today you leave the company, it's connected to the HR system and your privileges go away. I think the bigger opportunity is to take the fragmentation of four or five identity products in a company and put them onto one platform and that's what we're going to do.

[Jim Cramer]

I know they want me to end, but there is something that. You are the first person to talk about that since I've seen it, Harvey. Now this is something that is going to revolutionize. These law firms are way, way far behind. How quickly do you think these things are being rolled out where finally we're getting some magentics that actually are heavyweight and reason?

[Nick Caserior]

I think I'm very, very optimistic about aig. Look, there is a consumer AI revolution. You can see that happening in the model space and all the consumer activities going on. There's the application space which is beginning to emerge. Things like Harvey, things like Cursor and there's a whole bunch of about 1300 applications which are in early stage stages to middle stages trying to get adopted. And these are generic applications like SaaS came about. This is AI as a service. So you'll see people putting wrappers and making IT work. So AI as a service will either be independent of SaaS and some SaaS providers will find a way of merging that with their capability and having a much better SaaS product. I think enterprise applications are still a little further away and that's what we're going to see more in the future.

[Jim Cramer]

Okay, that helps us too for awesome to also understand the Salesforce conundrum. So thank you so much. Palo Alto Networks panw Chairman and CEO Nick Casheror. Huge position for our Chapel Trust. I just wish it were bigger. May have bunnies. Back into the break.

[Mad Money Announcer]

Still to come, the new health care kit on the block joins Kramer to discuss AI Solutions, financials and more. Don't miss Kramer's exclusive with Hinge Health next.

[Jim Cramer]

We've had a lot of phenomenal IPOs this year, stocks that have exploded higher, Stocks like Hinge Health, which is a digital physical therapy platform, you get it through your phone rather than in person. Not long ago, after this one came public in May, I told you it was worth buying. At the time the stock was trading at 40. Now it's at 50 and change in large part because Hinge reporter stellar first quarter right out of the gate a little over a month ago. Can it keep running? Let's take a closer look with Daniel Perez. He's the co founder and CEO of Hinge health. The find out. Mr. Welcome to Manning.

[Daniel Perez]

Thank you for having me, Jim.

[Jim Cramer]

I said we were just quite fine, as you know of your IPO. We also like IPOs that people can get in rather than these rocket ships. But I want you to tell people in your own words what Hinge Health is doing that makes it so you've got a moat. You're separate from everybody else and you scale well.

[Daniel Perez]

Thank you. Look, ultimately our vision at Hinge is to use technology to automate and scale the delivery of health care. If you think about health care overall, you know, technology goes into most other aspects of our economy and it makes things better and a little bit cheaper. You know, the features you have in a car today would have been considered luxury 20 years ago. And a percentage of income, it's probably the same amount lower. It's upside down, that equation in health care. A bunch of technology comes into health care and yet prices don't go up. The member experience, patient experiences to get better. So at Hinge, we are using technology to automate care itself because that's been a challenge with health care. And the key most that we have in the business is our technology moat and our channel partners. We've really focused on building things that are three to four years ahead of what we think anybody else in our sector is working on. And that's meant 50 plus health insurance companies, pharmacy benefit managers have chosen us as their preferred digital PT solution and that gives us preferential access to customers. That means a customer could buy us without having to worry about it. Security, procurement, contracting, we're not just the best product on the market or the or the most validated. We're easy to buy for enterprise.

[Jim Cramer]

It also seems to me a great way to analyze you is retention. And the retention you have tells me you're going to do well.

[Daniel Perez]

Our logo retention in 2024 is, was 98%. You know, when customers buy Hinge, they typically stay with hinge. And we're really grateful for that. And because we deliver really good enterprise ROI 2.4x ROI.

[Jim Cramer]

Okay, so how are you reinventing pizza?

[Daniel Perez]

So you know, we're starting with pt. Ultimately our aim is to use tech.

[Jim Cramer]

Absolutely. And I want that.

[Daniel Perez]

But keep automating care. We started with interesting. It's like it's only 1 point to 1.3% of total health care is spent, but it's still $60 billion market. And so we're using technology to scale and automate three key components of rehab. One is your exercises. You know, when you got knee, arthritis, hip arthritis, chronic low back pain pain, we got to take you through stretching and strengthening. We use computer vision that is using the front facing camera on your phone to track 100 unique landmarks on your body. So we could guide you through your exercise therapy right from the comfort of your own home. But Jim, you might be in too much pain to do exercises. So we've also developed a pain management device called Enzo that you could use delivers electrical nerve stimulation and it gives people a technology alternative to pain medication. And lastly, we have a generative AI tool that allows us to scale and automate and increase the throughput of our care team. So as we, you know, automate the reading and the summary of a patient charge on what's the next best action. So we could increase the throughput of our physical therapists.

[Jim Cramer]

I want to go back to something you just said. If this musculoskeletal conditions, we are gripped by a terrible, terrible oxycodone, fentanyl, whatever you want to call it, just often it just starts when you come out of the hospital because they give you eight pills. I mean, I said listen, I'll drink the bag of peas because I'm so scared. Right. But we get eight pills and we get 15 pills. What you heard, what you said was this is an alternative to that. Yeah.

[Daniel Perez]

So we've developed our Enzo device. We have now about 15 patents on our electro nerve stimulation device. It's one of the most delightful aspects of our program. We give people a non surgical, non opiate alternative, non addictive alternative to pain medicine management. Actually, I have it with me right here. It's about the size of A half dollar. We use a gel pad. You can put it anywhere on your body and it delivers electrical nerve stimulation to help you relieve your pain. We've published a paper actually with Memorial Sloan kettering showing over 50% reduction in pain with using just Enzo in isolation. That's a great alternative to opiates. And you're right, sometimes people have a knee replacement or a knee surgery, they go home with 90 pills or 30 pills. And if the person who had surgery only uses three or four, it stays in their medicine cabinet for their spouse or their teenage son to maybe come.

[Jim Cramer]

And I just, they usually, they throw them away. Now tell me about something called Hinge Select.

[Daniel Perez]

So look, Hinge select is our in person care network. We are using technology to automate care, but the fact is, most care still cannot yet be automated. Jim.

[Jim Cramer]

Right.

[Daniel Perez]

You know, you still have to go for in person care. You know, you might need an injection, you might need an mri, you might need a surgery. Surgeries could be magical for certain people in terms of their outcomes, or you actually might need to see an in person pt. So we're creating an in person care network such that no matter what might be ailing you, no matter what you need, as far as this care episode, you could stay within our ecosystem. We're selecting providers who are the, the top quality providers. We're negotiating rates that are, you know, up to 50% below private insurance rates. So we could waive cost share for people if they want to go to in person pt and they can still, you know, merge it with their digital care program as well, waive cost share if they need an mri. And we've got thousands of clinics already in our network and we're aiming to, to have thousands more before the end of the year.

[Jim Cramer]

One last thing, unlike a lot of the IPOs we've seen coming, you actually, you made some money.

[Daniel Perez]

We were trying to build a sustainable business in Q2. We had, you know, 23% non GAAP free cash flow margin. And you know, I tell a lot of start, we're based in Silicon Valley and free cash flow is a little bit rare in Silicon Valley. And so we, I try to tell entrepreneurs ultimately that is what what matters is. Are you bringing in a little bit more money than what you're spending and that allows you to put it back into the product, put it back into your customer experience, put it back into.

[Jim Cramer]

Your team and just keep growing, which is what our viewers want very much. I want to thank Daniel Press. He's the co founder and CEO of Hinge Health, its new company. We liked it immediately. Before we ever met Daniel, we did a piece because we think it's so good. I think maybe we were. We undersold it. That's how good it sounds to me. Mad money's back in for the break.

[Mad Money Announcer]

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round.

[Jim Cramer]

Next football is back. My Philadelphia Eagles are taking on the Dallas Cowboys tonight beginning at 7pm on NBC. And Peacock. So tonight we're having a special fly Eagles fly edition of the lightning round. And that is where I take the falls classic fire name the science and above myself, you plan it south and then the lightning round is over. Are you ready? Steve? Dagger lightning round comes to another episode with Tom in New York. Tom, who are Jim? Tom, what's up with Palantirs pulling back? Is it a buy? Oh, yeah. I mean Alex Carpe is a scholar and a gentleman. A sweet guy. I just like him. I want to put him on my fantasy team. That's as much I like him. Yes, Mark did win some business from Mark Benioff. But you know what? Palantir, I still think it's going to $200. Let's go to Connor in Louisiana. Connor. Hey, how's it going? Jim Connor, Louisiana. All right. Doing well. Jim, I want to get your thoughts on Rich Tech Robotics. They recently just signed. Okay. Here's what you do with a stock like that. You buy it but you recognize it. It's your spec. You're allowed to have one real spot. When you say you do a six or five stock portfolio, that's your stack spec and accept the fact that you could lose everything. Let's go to Bill in Massachusetts. Bill. Booyah. Jim, first time caller, long time viewer. I like that. I like first timers. It appears weight loss drugs are here to stay. I'd like to hear your thoughts on Viking Therapeutics. No, no, no. We have Eli Lilly. Why do we have to settle? Let's don't go for the raggedy rest. Let's go for the best. I need to speak to Josh. Maybe it's my friend Josh. Brad, because Josh in Colorado. Josh. Josh in Colorado. Bubba, Papua. Jim, curious as to your thoughts on conmed cnmt. All right, I have to do work on this because the stock is too cheap. So I must. There must be something I am missing. I can't recommend something that I don't understand. Now we're gonna go to Bill in Florida. Bill. Oh ya. Jim. Bill here in Florida.

[Daniel Perez]

Been watching since high school.

[Jim Cramer]

Econ recently introduced my fiance to your show and she's hooked. Wow. Wow. All right. How can I make you money? Try calling about Ticker IP Gartner. Okay. I have always loved this stock. But you know what? That last quarter leaves a lot to be desired. And it has made me feel that you have to wait for one. You have to wait to see the next one because you just worry about the cockroach through here. Could there really just be one bad quarter? That was a nasty one. So I'm gonna have to say, let's wait and see. Chris in New York. Chris. Booyah.

[Arvind Krishna]

Mr. Kramer, I'm in this stock at 185.

[Jim Cramer]

So my question is, should I take my profit on Madison Square Gardens? It's not one of my favorites. It doesn't have the kind of growth you have. Nice gains. I don't know. Why don't you take half and then see what happens? And that, ladies and gentlemen, is the conclusion of the lightning round.

[Mad Money Announcer]

The lightning round is sponsored by Charles Schwab. Coming up, the latest guidance from Salesforce had investors head spinning. Kramer's breaking down his take on the company's earnings and what he looks for in a strong quarter.

[Jim Cramer]

Next. Sometimes my job just gets the better of me and I miss the proverbial forest for the trees. Take last night during my interview with Salesforce CEO Marc Benioff. I view Salesforce's price with tremendous success. It's a great platform to convert prospects into paying customers. Right now, the company's reinventing itself. Creating AI agents for its clients. Can handle all sorts of time wasting work while routing customers to the right places. They call it agent force and I've seen how it works. It is sensational. It's been less than a year since this platform was rolled out and it's already having real success. The darn thing is taken off. But during last night's interview, there was a breakdown in how I like to do things. Things to me, there are four main components that I look for when a company reports. Did it beat sales and earnings projections for the quarter and did it then raise sales and earnings projections for the future quarter? Salesforce handily beat the projections made about this just reported quarter. So far, so good. But their cash flow came in a little weaker than Wall street expected. While their guidance for the current quarter was solid, there were individual lines in that guidance that were again softer than what the analysts anticipated. I figured Wall street would maybe look past those negatives given the huge number Salesforce is putting up overall. But that's not what happened. Instead, we were inundated with stories about how Salesforce gave weak performance and if you ready, I mean it's pretty obvious that set up for a real bad day and Salesforce's stock closed at $244. That's down $12.44 or 4.85% fair. Keep in mind most companies are not using AI in any way yet that's visibly making any money. But Salesforce is serving up customers who are thrilled about Agent Force and how well it's worked for them. I think we'll hear a bunch of them when we go out to Dreamforce, the big Salesforce convention next month. I better be impactful. Those points did not matter one width though to the sellers. Instead, the stock got hammered during the interview and then after mocking my analysis of how well Salesforce is doing. So I On the fly as the stock was getting there While I was interviewing CEO Mark Benioff, I of rapidly trying to figure out which particular guidance numbers the owners of the stock were unhappy about. I asked about a disappointing cash flow number in the reported quarter versus what the analysts were looking for. I went through some other numbers about margins and how they improved at the second lowest year over year rate in a few years. Mark was buying that. Then I tried to figure out if people are concerned about contracts. I was so perturbed and flustered that I got the contract number wrong myself. Then I realized that I'm looking at this story all wrong right now. Many analysts believe that a company like Salesforce, which charges clients per individual user, may be running into a bigger problem that's simply not captured by any of the stuff that I was just talking about. Here's the problems they see. Because of the power of AI, Salesforce's customers may not need as many people using Salesforce software. If clients don't need as many users of Mark's product, then Salesforce won't be able to charge them as much as they used to. Some of the reasons real bears believe that Salesforce could be so efficient that its clients will slim down themselves using some of their own AI to and then let go of some of the Salesforce using workers. I think the analysis is incorrect. The bears seem to forget that Agent Force uses a different business model, a consumption model, not a per user model and the company can make a ton of money. The bears don't care though, they say because Salesforce didn't raise its forecast about what the above where the analysts were looking for then Agent Force isn't working their minds are made up and they think that software as a service charged by the seat model that Salesforce has used is broken. They believe that the more successful agent forces, the worse long term will be for Salesforce's old core business. And you can't convert them from the View, even though it doesn't seem to be true. What would change their minds? If Salesforce were to report huge earnings and then guide up well above what Wall Street's looking for, that would change the narrative. But that hasn't happened yet, will it? That's the $230 billion question. With two and $30 billion being Salesforce's current market capitalization. Ultimately this company will either start crushing the numbers or its stock will be crushed. Why? Because like it or not, that's how Wall street works, Alex said, as always, more markets over. I promise just for here made money, I'm See you tomorrow.

[Mad Money 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 Will the job.

[Mad Money Announcer]

Market bounce back from the recent weakness? Will the White House challenge the accuracy of the data, numbers and analysis of the critical August jobs report squawk box tomorrow 8:30am Eastern streaming on CNBC.