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Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. I'll be my friends. I'm just trying to make you a little money. My job is not just to entertain, but to teach you. So call me at 1-800-743-CBC. Tweet me at Jim Cramer. You can always find something wrong if you really want to. It's so easy that you can gin up mistakes on a daily basis. Funny thing though. What went wrong goes right. Nobody acknowledged it. The hurdle was overcome. That's the worst, worst case. Never happened, never acknowledged. And that's how you can end up with days like today where The Dow gained 114 points, S&P advanced.21%, Nasdaq jumped.4 or 5%. Despite an overwhelming chatter of negativity at the opening from both analysts and the media front and center. Let's talk about the bond market for a moment. I always like to remind you that bonds are more important than stocks. Their determinants are much bigger than but they're much bigger than stocks. They're Supposed to tell you what happens next. But lately bonds have been consistently they haven't helped you at all to make money in stocks. Instead they keep encouraging you to trade the wrong way. We see. We came in every, every day, every day and saw that the 10 year treasury yield kept climbing ever higher. Each tick drove stocks lower. We seemed doomed. Yet in the last few days yields have plummeted and today we hit a level that we haven't seen since April 7th when we thought we were going into a tariff induced recession after Liberation Day. That's right. The Yield on the 10 year is back to where it was when we thought we were facing Armageddon. This time it's thanks to a weaker set of employment numbers. Much less dangerous and certainly reversible. Something that was horrible morphed into something fabulous but it wasn't even noticed. And the people who were saying, well, they're gone now. I've had the tape rewound for things that I've said wrong and I own them. I try to get more right than wrong, okay? However, I expect to be called out when I make a mistake. No one called out the boys who cried wolves about the bonds though. Yet I'm sure many of you sold things because you heard that interest rates were rising, unheard of levels. Hey, by the way, it didn't matter that we actually had heard of them. It's just that they were heard 30 years ago. Now I traded through that period so I know that 10 year ago into 5% wasn't the end of the world. In fact, it was actually a halcyon time to make money. For weeks we were told that rates were skyrocketing and honestly, some of the media reported that way in order, I think. I'm not kidding to scare you. Evidence. Well, let me give an analogy, a little personal history. Way back in the day, I covered homicide when I lived in my car in Los Angeles. Sometimes I cover, unfortunately a string of homicides, all separate. My editor said, hey, how do you know they aren't all being done by one killer? I told them what the police told me. Different mo, different, Everything different. My editor said why should we believe the police? Next thing you know I was writing about a serial killer because you know why serial killers sell newspapers. I hated myself and I really hated my editor. But the paper was doing badly. So the truth was sacrifice. I don't forget things like that. That's why I don't do it. Back to bonds. There were plenty of people on air and in print that wanted to tell a scary Story I know seems ludicrous, but believe me, everyone wants to write an interesting story. And scary is interesting. Things are asymmetrical. Those who talked and wrote and screamed about skyrocketing interest rates had no price to pay. It wasn't as egregious as making up a serial killer, but it did hurt a lot of pocketbook and wallets. Maybe yours. I never heard a soul say it was time to buy bonds. All right, not just bonds. Let's go to the Mag 7. Go back to the spring and recall where Alphabet was trading. Can't recall. I can tell you it was at 140 and change. What were we hearing? That it was monopolist? That it will be punished by the judiciary? That it was. That the breakup will make no more money. No sum of the parts, just a breakup that was punitive. So the stock had to be sold. Just an expensive stock that was going, about to be hobbled by the government. Sell, sell, sell, sell, sell, sell, sell, sell. The house of pain. In retrospect, Alphabet still isn't even up here. $234. I know it's almost inconceivable that the judge who ruled that outfit was a bad actor monopolist, then turned around, said the events had overrun the status, so it was no longer a bad actor monopolist. But here we are a few weeks later and always seem to be taking for granted the stocks in the 200s. We don't say, wow, that's scary. That move occurred without a moment of remorse from those who said it couldn't happen, or the stock was dangerous in the 1 40s, 150s, 1 60s, 1 70s. Now, I made a negative call for output for the CNBC investing club, but at least I publicly beat myself up for getting it wrong. So what? Periodically, you know what? You have to hate yourself. That makes you better, makes more honest. Now we got another one, Amazon. A few weeks ago, this stock was plummeting. Why? Because we heard that Amazon Web Services was falling behind Microsoft's Azure. Something that actually we picked up loud and clear on this show from Snowflake's explosive conference call. It didn't help when a Morgan Stanley analyst asked Amazon CEO Andy Jassy if he was worried about falling behind. And. And he didn't say, quote, we are spending and getting a great return on our spending, whether it's on our trading chips or in video chips. He didn't say that the street was quick to hammer the stock because he didn't say that. Here we are, a couple of Weeks later and Amazon stocks at 235 and change is knocking on the door of 242. Its all time high. What changed? Nothing. Nothing at all. The market simply moved on from the bear narrative because there's so much good that's happening at Amazon. So much good. Who knows how much more revenue Amazon can bring in From prime starting October 1st now that you can share your. You can't share your password with relatives. Did you know? I think it could be like Netflix. We had this huge surge of subscribers belong Amazon. What really was wrong with Amazon? Again, I can't remember. Or how about this one? Back in August we heard that Apple had run out of growth and had nothing in the hopper. That was like a continuous loop of negativity every time you raise your head. If you were an Apple shareholder, a sharpshooter who wanted to sell a lot of paper shots down, here we are more than 30 points later and we know that Apple can receive a check from Alphabet to preload Google into their 2 billion devices. Something everyone thought would be scrapped by the judge who found out Alphabet a monopolist. That's more than $20 billion. What profit margin that is? Nope, in the craziest of torture circular thinking the judge ruled that out, but would have even would have enough money to be even more of monopolist if it didn't pay Apple. God, what a terrible reasoning that is. Those noisy souls who believed in trading Apple, not own it. They were never skewed though. Skewered, they sold a lot of papers. Hopefully they didn't catch the 30 points the believers captured. Which brings me of course to Nvidia. Here's a stock that's going straight down for four straight weeks despite a very good quarter. In the middle of that skid today Citi lowered its price target from 210 to 200. Broke ranks, but much less bullish than everybody else. It got picked up. This down, this price target cut got picked up by everyone. All I heard about today was that Broadcom is now a factor taking share from video, maybe big share. Apparently it is a horse race. Okay, let me tell you something. Broadcom is the biggest position for my channel trust. Oh, we love it for the club. It's a fantastic story of private label chips. However, I got real bad news for those who are trading not owning a video. The price performance of video is so much better than any other company including the one is our larger position that we say we don't care. I got another idea. Why not own both? Today was the city analyst day to shine. Oh, yeah. After four weeks down for Nvidia, he really nailed it. Did I mention that he lowered his price target and then the stock actually finished up on the day? But he did break ranks the bottom line. I bet we'll look back on that city price target cut and realize it was a mistake just like the others. But boy, oh, boy, again, like the others. Did it ever sell a lot of papers? Steve in Florida. Steve.
Caller/Guest
Hi, Jim. How are you doing?
Jim Cramer
I'm doing well, Steve. How about you?
Caller/Guest
Good, good. I've been following a stock which has increased sales 30% in each of the last six quarters. They have also increased their largest customers, those having annual recurring revenue of greater than $100,000 to 2770 customers with an average amount of 350,000 in sales each.
Jim Cramer
Okay.
Caller/Guest
The stock is Samsara.
Jim Cramer
Man, that's that. That company had a great quarter and I saw the CEO and he did a fantastic job. I salute him and I salute the company. All right. So if you look hard enough, you can always find something that's wrong. I don't want to shake you out of a market where people are ginning up negative stories. It's a surefire to lose out on opportunities in this market. And I know you've lost out on many of them. But I can hear your complaints right here, like in my molar. All right. On Man Money Tonight. It's gearing up to be a huge week for the IPO market. I'm giving you everything you need to know to be prepared for these big debuts. And they are something. And The S&P 500 is gaining three new members. I'm going to go through the latest stocks to join the exclusive club, see what you think. I'm going to give you my take. And as Kava continues its expansion, how are the different parts of this country reacting to this Mediterranean style, fast casual option? I'm talking to the CEO to get the latest, so stay with Kramer.
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Jim Cramer
This is going to be a big, big week for the IPO market. Originally, Wall street assumed that we get a ton of new deals this year with a new business, friendly administration and space, expectations for lower interest rates. But then President Trump's Liberation Day tariff announcements. They freaked out the entire market and the deal stopped coming. It froze things. By late May, though, the IPO market unfroze, and the companies that did have the courage to come public, they were richly rewarded. This led to many, many more deals over the summer, before the typical late summer lull in August. But now Labor Day has come and gone, destination weddings in Colorado and elsewhere have been concluded and it's time to get back to work with a bunch of new IPOs coming up. As Bill Smith, the CEO of Renaissance Capital, the go to guy about IPOs, put it in his weekly newsletter, the IPO drought is over and the IPO wave is here. The highlight of the week by far is Klarna Buy Now, Pay later lending platform. It's going to be flirting with going public for years. Frankly, its deals should price Tuesday night. Right now Klarna is on track to raise between 1.2 and $1.3 billion. More on this one later in the week. I want to revisit it after Action goes public. Aside from Karna, there's this figure Technology Solutions. That's a home equity line of credit lending platform with a blockchain technology angle that's founded by the former CEO of SoFi Technology, Mike Cagney. He's been on the show figures looking to raise roughly 500 million and it should begin trading on Thursday. Then on Friday there are four $100 million plus IPOs that are expected to begin trading. A Blackstone backed heating, ventilation, air conditioning company called Legion Stone. Don't laugh. H Vac is hot because a lot of us do with the data center. This one's a transit technology company called then it's one of transit technology called Via Transportation. That's the the Beagle Boss twins cryptocurrency exchange Gemini is coming and a coffee chain called BlackRock Coffee, which should be the first meaningful restaurant IPO since tonight's guest Kava came public in the summer of 2023. Scarcity value rather than going into detail on each one, tonight I want to talk about what this full slate of deals means, both the IPO market and the broader stock market in general. First, let's talk about the IPO market. So far this year, there have been almost 150 IPOs, which is up more than 100. I'm sorry, up more than 55% from this point last year. Wow. Though total proceeds are down slightly. That's good though. Although these numbers have been boosted by a return of SPAC deals, we've seen several dozen of those. Still, when you factor out out the SPACs, the 68 members of the IPO class of 2025 are up almost 25% on average from where they came public. And when you only look at the larger deals, the ones that raised more than $100 million, they are up an average of 32%. House of Pleasure of course, we've seen plenty of instances where the enthusiasm for quality IPO news has gotten out of control. For example, I was one of the few people who was positive on Core Weave when the data center play came public in late March at just $40 per share before falling to the low 30s within a month of the deal. But then the stock got hot in a hurry and in time for just in time, two months. In two months time it soared to a high of $187 by late June. At those levels, it was simply setting itself up for failure. I've had the chance to speak with Corby CEO Michael and Trader a couple of times on the show now. I like the fundamental business very much, but the stock has no no business being as high as it was in June. Now that the lockup on insider selling though, has expired, coast back down to the low 90s that we speak in later this week. It still has a huge success since coming public top more than 130% from its offer price. But you bought the stock in the triple digits. You definitely don't feel like a winner. Coin is also a powerful reminder to what happens to these small, what I call sliver deals once the lock up on insider selling expires. And keep in mind, nearly every deal these days is a sliver deal where the company offers just a tiny chunk of stock with the rest of the shares locked up to the sidelines, usually for the next six months. That often amounts of a gigantic unwarranted pop as many clamor just a handful of shares. Corey reported a great quarter early last month, but then the lockup expired. We got a huge wave of insider selling, the stocks now down 37% from its mid August highs. Wow. You know, no matter how strong your numbers are, it just doesn't matter. In the face of these big lockup expirations, there will always be insiders who want to ring the register and if the stock runs too much they're selling will overwhelm you. Of course, if the IPO market began picking up steam in June, it took less time for some stocks to get overheated. Let's talk one that I was really flagging to you as I didn't want you. It's called Figma. That's the design software company that came public at the end of July. Figures a great company. But when I covered this story just a couple of days ahead of the ipo, I told you I was worried that the deal might be too hot. Sure enough, Figma soared from an offer price of $33 to an absurd high of $142 and change on just its second day of trading. I was so upset when I that was the night that I tore apart a pack of Fig Newtons on air, which was unfair because those Fig Newtons never did anything to anyone. Darn tootin. Since then, Figma stock has been eviscerated, falling more than 60% from its highs to the low 50s. Today, when they reported their first quarter as a publicly traded company. Last week, the numbers were actually pretty good. But the stock plunged 20% the next day. It never should have been that high in the first place with a cryptocurrency exchange, Gemini. On this week's IPO docket, you should be aware that we've seen similar dynamics with some of this year's crypto linked deals. In June, stablecoin issuer Circle Internet Group soared from an IPO price of $31 to a high of just under $300 within three weeks of the deal now circles back down to 114% from its initial high less than a month ago. Another crypto exchange, Bullish, came public at $37 and reached a high of 118 on its first day of trading. Now it's almost at $50, down almost 60% from its digital. I see the pattern. So keep those examples in mind when Gemini comes public this week. It's going to go like this and this could go like that lesson here. You could be bullish, but don't be too bullish or you're going to have a long wait until your stock works its way all the way back to those inflated highs. May not be worth it. Finally, on Thursday, we have this Legends see Legends IPO leg. This is a H Vac company backed Blackstone. Unfortunately, private equity backed IPOs haven't done too well this year according to Bill Smith from Renaissance Capital. I mentioned earlier, quote, most of this year's LBO listings are underwater, end quote. Sailpoint, a cybersecurity company that was taken private by Thoma Bravo 3 years ago for returning to public markets in February. It's currently trading about 3% below its offer price. And IQ Global Intelligence, Consumer intelligence business that was taken private in 2022 currently trading about 5 15% below where it came public. So please be careful with legends. But here's the bottom line this week the IPO market roars back to life in terms of the number of large deals. It's the biggest week in roughly four years. That's exciting. But you got to be, let's say you got to curb your enthusiasm with some of these deals, especially hottest ones. And these real rocket ships, don't forget to take some profits. That money is back after the break.
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This is the story breaking right now.
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Jim Cramer
Last Friday, S and P Dow Jones Indices announced the latest round of changes to the S&P 500, with three new stocks joining the index. And there's nothing more positive for your stock than joining the number one large cap benchmark. So many index funds exist to mirror the S&P 500, meaning they'll all be forced to buy the new additions. You get an instant, sometimes gigantic pop. The additions. This time it's App Lovin, the advertising technology platform, Robinhood, the iconic retail trading platform and M Core, which is a lower profile play on construction and energy infrastructure. Now they're taking the spots currently held by Market Access holdings, also an electronic trading platform, Caesar's Entertainment, the casino company and Enphase, the solar power play that it's been one of the worst performers in the S and P this year. Out with the weak, in with the strong. That's hardly a passive index, right? No matter. So many people have swallowed the S&P 500 index Kool Aid that getting at is often a use thing for a company because so much money has to go into that index index. And that's why Applovin and Robinhood shot up 12 and 16% respectively today, even though MKOR is relatively flat. While the changes are technically effective about two weeks from now prior to the open on September 22, buyers tend to front run that event as soon as they hear the announcement. They don't wait till September 21st. 22. So tonight I want to go over these three newcomers. There's this. Applovin and Robinhood are both part of the Park PRC cohort. That's our key acronym, along with Palantir and Coinbase, meaning that some of the hottest stocks in this market, well, M Core needs more of an introduction. I had to look it up. I put it through all the different chat services because I didn't know well enough to come out here first. Applovin started out as a platform to help mobile video game developers partner with advertisers. But over time it's become a larger player in digital advertising. Applovin came public in the spring of 2021 at $80 per share. Listen to this arc the stock made it to the low triple digits by late 2021, around the COVID era peak. Then it pulled back more than 90% from its highs, eventually bottoming at $9 and change to the end of 2022. Who said this market doesn't create bargains? Since then, Applovin steadily been working its way back, climbing to a seemingly insane level. Before the S and P announcement, it was at $490. Now it's already in the mid-500s. A year ago this stock was still in the double digits. So I love it's a bit of a wild trader and certainly not for the faint of heart. But even though the action the stock's crazy. I've never been able to fully turn against this company because it does have some of the best growth I have ever seen. Apple Oven's revenue has nearly doubled over the past three years, while its earnings have gone from just a dollar under a dollar per share in 2023 to 450 per share in 2024. Get this, the analyst expected to earn more than $9 per share this year and then $13 and change next year. That is just. Wow, that's neck breaking. Of course, the stocks had a much run, so it's trading at about 60 times this year's earnings estimates and 41 times next year's numbers. Given Applovin's turbocharged growth rate, though, the valuation may turn out to be cheap. It's not cheap now. It could be justifiable though. The thing is, Bulls and Applovin have been betting on the stock getting out of the S&P 500 for a while now. It's it's finally happened. I expect some selling going forward as people ring the register. If you want to buy this one, you should pay for that weakness to give you a better entry point. I would not go in tomorrow by it. Frankly, I don't know enough about advertising technology to explain why Applovin so darn good. But it's already jumped from mobile game ads to e commerce ads, a much larger market. So I think management's earned the benefit of the doubt here. Some people think it's a mini Alphabet. The company doesn't report again until until November. Between now and then, I'm betting you'll get a better opportunity to buy this one as long as you're patient. But it's a buy. Next up, Robinhood Now I'm going to use even less of an introduction. This is the company that reinvented the retail stock brokerage business, and it's a stock. It's been a juggernaut for over the past few years. I am constantly impressed by their ability to expand into new categories, moving to simple stock options and crypto trading and the new offerings like retirement accounts with the best deal around, credit cards. Robin has always planned to become a full financial services platform for the younger generation. So far, it's pulling off in spectacular fashion. I bet everybody's jealous all over Wall street about this one. Now, last Friday we checked in with that outfit 100x, my favorite alternative data platform, and they've heard very positive things about Robinhood from their consumer surveys, especially in crypto trading. These guys are miles ahead of the competition. Young people love that. In the end, what keeps me bullish on Robinhood despite this remarkable run, is that we're witnessing a gradual transfer of wealth. Wealth from my baby boom generation to our kids and grandkids. By some estimates, over $100 trillion will be transferred over the next couple of decades, and I figure Robinhood's a major winner. This is a point that I made before this edition in my next book that's coming out at the end of the month, how to Make Money Anymore. Maybe if you're my age, you use Fidelity or Swap. Your kids are probably more likely to trust Robinhood. Izzy, it just came out of nowhere and it's killing it again. Like loving, you have to have some expectations there'll be profit taking in the near future once the stocks added the S and P. Especially since Robinhood now sells for over 70 times next year's earnings. That's expensive. But I view any weakness as a rare buying opportunity. Do you know I was going to actually push it really hard right here? I said it's probably going to break it because it had a bad head and shoulders pattern. But the pattern meant nothing. It just took right off. Good for them. Finally, let's talk about the one that I think is most attractive here. It's called Amcor Group. That's all. All caps, EMC award. And of course, an engineering construction contractor, especially for industrial and energy infrastructure. They plan, install, operate, maintain and protect facility systems. Think electrical, mechanical, lighting, air conditioning, heating, security, fire protection and power generation. Now, if you're still awake after those sentences, what I'll tell you is that when I looked at MKOR's business, I saw a company as perfect. Perfectly on theme for the current moment. The company's part engineering construction firms like at Jacobs, like an AECOM because it's involved in the design process. But it also sells and services zone equipment like Cummins, Dover or Eaton. The last two are part of the charitable trust. All which have been doing very well thanks to the wave of data center construction. Same goes for Amcor stock that's really tripled since the end of 2023. Will you look at this from some outfit that you probably never heard of. Money. While the overall non residential construction market's been choppy thanks to higher interest rates in recent years and of course continue to put up strong growth thanks in large part to exposure to the data center. The best growth story out there. And the analysts expect them core to keep putting up excellent numbers. Some of that's the data center. Some of it's from the reshoring of semiconductor fabs and pharmaceutical plants driven by the President's tariffs. Basically. If you expect a lot of factories to be built in the United States, well then I tell you should be buying Amcor stock currently sells for a meager 23 times next year. Certain estimates. So I'm not concerned about a way of a profit taking here like Apple and Robin. People are clamoring those two to join the S and P, but no one care about Amcor. This was just an addition. They came completely out of nowhere. You got my permission to buy it right here. It's a very good stock. M Corp, E M, the bottom line of the three newest members of the SB 500. Applobin and Robinhood are both red hot stocks that have gotten even hotter. I expect them to move higher over time, but they might pull back now that they've gotten a boost. But Amcor, this one's got a lot less hype. And I got to tell you, it's got a very attractive story which makes it a buy right now. I think we should take some calls. And that's why I want to start with Robert in New York. Robert?
Caller/Guest
Jim. Jim. We haven't spoken in a while because you made me.
Jim Cramer
Yeah, what is that?
Caller/Guest
Well, you know, your other girl had left. The other woman in the office had left. There's another guy. They real great guy. But here's one of the main reasons why I haven't called in. You've made me so much money since this. These last couple months. On this next one it was over a hundred thousand dollars. You made me on this stock since April. Okay, you can go to the video tape. Okay, so you are a genius. That's all I gotta say.
Jim Cramer
No I'm not a genius. I'm, you know, like my wife and my late ma would say, well, you just stop. But yeah, thank you. I've been a little down, so I need this a little. Dad, it was. It was fantasy related. Was fantasy related, not reality related. So go ahead, help me.
Caller/Guest
I'm sorry, Jimbo, but Jim, listen. Back in April you told me to buy this stock. It was in the 30s. Now this baby has almost tripled for me. Over the past year, this company shares have risen over 120%. Especially when the Fed cuts, this company will definitely benefit greatly. You may disagree with me. I think this is a huge winner and I think it's going higher. Levchin farm.
Jim Cramer
You'Re wrong. It's going much higher. And as much as I appreciate your enthusiasm for the stock, Robert, I think that you aren't enthusiastic enough because Max Levchin has it going. People keep underestimate, underestimating this man. How about $100 by the next time we talk, Robert? That's what I think is going to happen. And I like Robert's enthusiasm. More importantly, he's a gracious man. I thank him. Of the three newest S&P 500 members, I think App love it and Robinhood of the most hype. But don't forget about this M Corp. What? That could be a rocket ship. What's more, man, moneyhead. Including my exclusive with the CEO of Kava Group. That's a Mediterranean Alpha. Then there's a lot of hand ringing when it comes to AI and layout. But just how big of an issue will this really be? I'm going to give you my take and it's going to surprise you. And of course oil calls rapid fire and tonight's just the lighting round. So stay with Kramer. All right. What the heck happened to the stock? Acava Group, the popular Mediterranean restaurant chain now look a little about. Less than a month ago, Kava reported a weaker than expected quarter stock at the milestone, falling almost 17% the next day and another 7% since then. Suddenly Wall Street's very concerned that the consumer simply not willing to pay up for premium price food options. Even though Kava is now adding chicken shawarma to their list. This is the brand new menu comes out today. That may not be enough to get the stock moving again. So what could we do?
Caller/Guest
What?
Jim Cramer
What's going to change this thing? Today I got a chance to speak with Brett Schulman. He's the co founder and CEO of Kava Group. So take a look, Brett. It's always a privilege to have you here, especially on the day of a new dish.
Brett Schulman
Jim, thanks for having me again. Yes, we're very excited about our new chicken shawarma launch.
Jim Cramer
This does matter, doesn't it? I mean, people could say, why are you starting with that? But the answer is, is that people like newness. They like innovation, and if you don't have it, they don't want to check it out.
Brett Schulman
Yeah, we want to strike that balance, to bring our guests new, new, innovative, culinary, because we know they love when we bring them new items like steak last year and then balance that with operational integrity. So typically, we'll bring three to four new pulses a year, and this is our fall pulse with chicken shawarma.
Jim Cramer
All right, well, I didn't mean to go immediately to steak, but you did have what I regard as a honeymoon period. I listened to you in that last year. You had steak and then you comp. So to speak. Same store, a little weaker than expected. But maybe we forgot about what you had introduced last year at this time.
Brett Schulman
Yeah. So steak was our biggest new main or new protein launch that we had in a number of years, and it was incredibly successful. We didn't have a beef item on our menu, and our.
Jim Cramer
Our.
Brett Schulman
Our fans loved it, and it drove even greater comps. And so on a three year basis, last quarter, we drove 20% traffic.
Jim Cramer
And you did also indicate that things have been getting a little bit stronger. I don't know how August fared, but I know that it looks like that what you were concerned about in terms of traffic may have been less of a problem.
Brett Schulman
Well, coming out of the quarter, we noted that we did see sequential improvement in the trends. And again, we are hurtling very high cost. When you think about just in the last three years, we grew from 200 to 400 restaurants. And during that same period of time, our average unit volumes went from 2.3 to $3 million. And our new restaurants are opening above $3 million a share year. So very excited about the strength and receptivity for our Mediterranean.
Jim Cramer
What people to know that that's a monumental figure that only a few restaurants have been able to reach. Now, let's talk the weather. You and your CFO used the term fog. Now, I have not appropriated that term yet. I like it. Tell me about fog and the consumer.
Brett Schulman
Yeah, look, the consumer has a lot of headwinds that are increasing, and they've been challenged with. And so we've been trying to drive a great everyday value proposition. And that's reflective of. In the recent years, we've underpriced CPI by 900 basis points. And we've raised prices since 2019 less than 20%, where many of our peers have raised upwards of 40%. So we're just trying to drive every year an improved relative value proposition, make our Mediterranean cuisine more accessible when we know that every dollar matters for consumers as they're facing increased, increasing pressures around them.
Jim Cramer
Okay, now, a lot of people say to me, wait a second, they raised it, But I bet you their costs of their food didn't go up. That's actually untrue. The costs have been bad.
Brett Schulman
Well, it's another example of how we're trying to invest in our guests. You know, we've had increases from. Related to some of the tariff changes this year in policy, and we've absorbed those on behalf of our guests. And we haven't raised prices since January, where we only raised 1.7%, which was less than inflation this year. And we have no plans to take price further this year. So, again, trying to work on behalf of our guests and not pass along some of those cost pressures we may.
Jim Cramer
Be seeing, and that's a stake went up dramatically. I mean, this cattle, it's kind of got no lid on it. And yet you're still okay in holding price.
Brett Schulman
Yeah, we're trying to be efficient operators and again, pass those savings along from our operational efficiency when we see increases in costs on the cog side, whether it's tariff related or as you noted in beef, as there has been shrinking herds in the US that have driven up beef prices in the open market.
Jim Cramer
Okay. When I first met you and thank you through Ron Shaikh from Panera fame, what I learned was that you had the concept that I think is the regional national concept. Now, since we've seen each other, you've moved into new states. Is there any state that is not receptive?
Brett Schulman
No, that's a. That's the beauty of it, Jim. We've seen this increasing proven portability where, whether we're. We just opened in Detroit, Michigan, or Pittsburgh, Pennsylvania, or down in South Florida in a couple of locations, we see equal receptivity, no matter the region, whether it's in the city or the suburbs, in every market in the country. So we're just excited to continue to grow our footprint and bring Mediterranean cuisine to more communities across.
Jim Cramer
Now, we've been talking about the doordash factor. Doordash stock has been incredible. We wonder whether they get too much in the sense that if I order at home, it really changes the price and it reflects on the restaurant not on some reason, not on delivery. How do you deal with that perception?
Brett Schulman
Well, we have an opportunity, I think, to drive greater clarity around our value perception in many markets in the country. Our base Chicken bowl is 1065. And in that bowl you can get greens, grains, you can get dips and spreads, grilled chicken, and as many toppings as you like topped off with a sauce or dressing. So it's an abundant bowl, it's an abundant meal, and we need to communicate that value message. But we want to be channel agnostic. And what I mean by that is we want to kind of put the remote control in your hands when you can get carbon. Your terms, if you want a premium convenience occasion, we are accessible through delivery. Or if you want to get that 1065 chicken bowl, you can order on our app, come in and pick it up, or come down the line and interact with one of our team members and share a meal in one of our dining rooms, which we're investing in with project sold because we think guests still want to come in, share a meal and have a great ambiance to experience that in and experience our Mediterranean hospital.
Jim Cramer
I should tell you, I have a new book coming out of which you're featured. And I know I was trying to explain the fact that the price to earnings multiple is not necessarily indicative of the, of the company in the sense that you had a wildly inflated one. And the reason why was because people loved it and you tried it and then you bought the stock. It has now come down to the point where it's, it's no longer expensive and yet you're doing things to make things again and again that could be cheaper. The connected kitchen, you're still bringing prices down.
Brett Schulman
Yeah, that's our job as operators, to invest in our team and invest in our guests and be smarter, more efficient operators. We can pass those savings along to our guests and have that, that savings to invest in our team and that ultimately delivers a great piano.
Jim Cramer
Now, I can't avoid it. I like cinnamon and I like Peter. How did that. How's that work it out?
Brett Schulman
Yeah. So, you know, pita chips have always been a cult favorite.
Jim Cramer
National Pita Day. Is that true?
Brett Schulman
They are very addictive, yes. And so we've now introduced pita chips as a flavor platform. So we start with our garlic ranch. Right now we have hot harissa pita chips and, and soon to launch, cinnamon and sugar pita chips with a side of honey for dipping. So they're great for a snack or even a dessert.
Jim Cramer
What can I say? Bring Those by every afternoon and I begin a real lift. That's Fred Shulman. He's the co founder and CEO of a stock we have like a company we have liked from the beginning which is Kava. Thank you.
Caller/Guest
Thanks Kim.
Jim Cramer
It is time for some of the Ram king of rappers. Are you Seamus? Dr. Bob. I also join you the column play and then the lightning round is over. Are you ready, Ski? That's alight. Let's start with Julie in California. Julie. Hi Jim. I bought the cyber stock Fortinet symbol ftn. No, that's actually the weakest of the cyber security. So I'm giving you two. You can either be in cyber, you can be looked at. You could be the company just bought Cyberark Palo Alto Networks or you could be in CrowdStrike. Those are the only two that I am sanctioning owning right now. Let's go to James in Washington. James. Hi Jim, how you doing? I got a question about Woodside Energy. Woodside Energy, find that one. Okay. Woodside Energy is actually. I have always felt it's a terrific company but I happen to like the petroleum at exploration business. But I will tell you, as oil sinks it might go to the 50s and I'm afraid it is gone. I'm nervous of it. Let's put it this way, you had a big run. Let's go to Bill in Texas.
Caller/Guest
Bill, Jim, thank you for taking my call. Of course, club member, first time caller, long time listener, long time listener since.
Jim Cramer
The days of Kudlow and Kramer. And I thank you for all your sound guidance. My, you're the man. You are the man. I wanted to ask you if you might be warming up just toward starting a position in Super Micro Computer. No, I can't because it's still got those accounting issues and I think accounting regulations equal sell. I know the CFO of Dell left and I think that even though the stock is obviously being punished because of that, I would be a buyer of Dell, not Super Micro. I think tomorrow is the day to buy Dell. Let's go to Rick and Varna. Rick. Yes, Jim, the long time viewer.
Caller/Guest
Back to the cut low days.
Jim Cramer
Oh wow. Man, that show was something good. Yeah, My stock is Obsidian Energies. Oh boy. Another smaller cap energy company again. They've had such big runs but oil is going down so I. So I can't recommend them. Let's go to Jeffrey in South Carolina. Jeffrey.
Caller/Guest
Blue yard. JC.
Jim Cramer
All right buddy, what's up?
Caller/Guest
JP here as a 25 year Southern transfer of Eagle Nation. Just got to say fly Eagle, fly baby.
Jim Cramer
You Betcha man. Fly Eagles, fly. Kansas City. Look out. Okay. Yes, sir. Big, big shout out to Sean to.
Caller/Guest
Get work me in the show. But been adding to a position last two earning calls from disappointing stock reactions for a manager and a company that continues to provide solid performance. But as they say, old Jim Carvel with a little twist.
Jim Cramer
It's all about the guidance.
Caller/Guest
Stupid cursed terms like lumpy and nonlinear growth trajectory.
Jim Cramer
And the stock is not oh, food. You know what I mean? Oh, food. Yeah, yeah. What's the stock promise?
Caller/Guest
And under deliver. He's not an over promising under deliver.
Jim Cramer
Okay, what's the stock guy? So what?
Caller/Guest
What's your gut feeling on staying with Marvell Technology?
Jim Cramer
Marvel. Okay. Marvell did not. You're absolutely right. The guidance was not what I wanted. I believe in Matt Murphy, but I'm gonna say now I'd rather have you own Nvidia. And that. Ladies and gentlemen, conclusion of the Lightning Round.
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The Lightning Round is sponsored by Charles Schwab.
Jim Cramer
From the very beginning, we knew it would be hard to figure out the actual impact of artificial intelligence on the workforce. We hear so many Executives talk about AIs being integral to their strategies that our eyes now glaze over in part because we can't seem to put any earnings per share to any of them. Perhaps it's because no CEO wants to crow about layoffs other than Marc Benioff from Salesforce who needs to demonstrate the benefits after firing 4,000 people at his own company because his agent force division saves you fortunes. I'm sure that many of them are just moved around, but it's really, really helped Salesforce. Almost everything else away from Mark on the artificial intelligence front seems to be based more on software than AI. But that's another issue that's in heavy denial. Why? First, let's deal with the search engines, which is what I'm calling the chat bots. Okay, because right now they really simply are lengthier versions of Google with some depth and maybe no ads. And a couple of smart alec remarks periodically that it makes at you. They give relevant answers, but they're often so wrong. I mean, often we're afraid to use them for anything serious. We were hoping they could at least summarize information, but they can't do it in a comprehensive way and they still make things up. And yes, they don't know how to be critical. Let's take the simple use case of proofreading or filling out documents to seen by road. Should be straightforward, right? But there are so many errors, you can't rely on them Then there are the sourcing issues. The engines are so second rate because they don't consult anything behind a paywall. No New York Times, often no Wall Street Journal. One reason people prefer ChatGPT is that they actually have a continent deal with Dow Jones that makes their platform more authoritative about business because it had behind the paywall stuff from the Wall Street Journal and no one else has it. Well, maybe some of them have it, but I can't find any. The New York Times is suing OpenAI Microsoft for copyright infringement. If you the Times wins, and I think it will because the instances of plagiarism are just overwhelming. I think Chat CBT will have to pay hundreds of millions of dollars over multiple periods to access the Times copy. But whoever does access that copy I think is going to be more reliable. Maybe these devices right now are just good for college papers, assuming professors don't try to chase down your citations. I think you lose your job because it is not because of layoffs, but because using the chat box can generate reckless answers. Still, I listen to CEO after CEO praise the concept of I just won some numbers. Please come on and say listen, we just saved $0.20. $0.20 per share. Of course, the strength of empirically probable use cases is causing havoc throughout the food chain all the way to the top in video, which has been going straight down for weeks on end since you reported that last quarter. Could it be because of a lack of tangible evidence for AI's accomplishments? Some are saying that I'm starting to feel look that way too. If it weren't for the ability of these machines to write code, the principle used, we'd be sorely disappointed. But here, once again, we can't pin a value on it. The good news for Nvidia is that right now there's no clear winner. Companies that don't spend as much on Nvidia chips as others are going to be perceived to be falling behind. I say perceived because a company like Amazon, which has tried to develop its own chips, is seen by Wall street as being too cheap to win. I think Amazon could dispute that fact. As long as there's no winner, everybody's got to pay up for Nvidia's hardware. But the moment someone like Apple Apple anoints a particular chat bot as the default right the preloaded, the rest of the players may scale back their investments. That's a fear. Is there a hope? Of course. It just most likely won't come from what we're expecting. Enterprise is doing much better specifically because of AI. The hope comes from Nvidia's next gen chips, which will allow genuine reasoning to occur. Prompts go to conversation, interrogation. That makes sense. Machines go from confusing, misleading us to arguing with us, helping to get the best possible answer. Once AI is reliable, we'll see real layoffs and the savings they will be enormous. Ultimately, the use cases will be far more remunerative robots, autonomous driving, replacing expensive workers with bots, and best of all, something we haven't even thought of yet. That's right. I don't know what it's going to be. I wish I could be more certain, but what we have now is too small a matter to all but a handful of companies. It would be refreshing if someone just admit it, but everyone's too busy claiming success to admit this doesn't seem to be going anywhere specific right now, at least for the moment. I said as always, more markets on my pounds find just for you right here. Mad Money. I'm Jim Cramer. See you tomorrow.
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Jim Cramer
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Jim Cramer guides listeners through a whirlwind session of market analysis, stock evaluations, and industry insights—arming investors with tools to navigate the emotional and factual volatility of Wall Street. In this highly topical episode, Cramer addresses the pitfalls of negative sentiment, highlights surprising market comebacks, unpacks the revived IPO market, offers stock picks, and welcomes Kava Group CEO Brett Schulman to discuss the dynamics of the fast-casual food industry.
Cramer cautions against chasing overheated IPOs with "sliver deals" and lockup expirations (e.g., CoreWeave, Figment, Circle, Bullish).
Quote: “The lesson here: You can be bullish, but don’t be too bullish, or you’re going to have a long wait until your stock works its way back to those inflated highs.” — Jim Cramer [19:40]
Kava’s approach: “Strike that balance... bring our guests new, innovative culinary, because we know they love when we bring them new items.” — Brett Schulman [33:09]
Expansion is strong: “We see equal receptivity, no matter the region... in every market in the country.” [36:36]
Value proposition: Underpricing CPI to stay consumer-friendly, absorbing tariff-related costs, and investing in operational efficiency rather than passing costs along. [34:50–36:04]
National expansion shows “proven portability” for the Mediterranean fast-casual concept.
Delivery channel, Doordash, and value communication: “We want to put the remote control in your hands... channel agnostic.” [37:16]
Menu developments: New chicken shawarma, cinnamon pita chips coming soon.
Memorable moment: Cramer admits he features Kava in his new book and vouches for the company's long-term quality and resilience, dismissing overreliance on price-to-earnings multiples in this case.
Highlights that, aside from coding, practical gains are murky; chatbot tech is error-prone, sources are limited, and earnings boosts are rare outside of isolated cases (e.g., Salesforce layoffs).
Warns that the next leap will come only with more reliable AI and the integration of generative reasoning.
Quote: “What we have now is too small a matter to all but a handful of companies. It would be refreshing if someone just admit it, but everyone’s too busy claiming success to admit this doesn’t seem to be going anywhere specific right now, at least for the moment.” — Jim Cramer [47:41]
This episode blends sharp skepticism about fear-driven market narratives with actionable optimism about resilient companies and sectors. Cramer urges listeners to focus on fundamentals, remain cautious in overheated IPO markets, and watch for real, not hyped, tech disruption. Notably, his conversation with Kava's Brett Schulman highlights how innovation and value-rooted business models can outlast even sharp market pullbacks.