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.

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.

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)

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)

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)

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.

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)

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)

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)

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 |

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.