Market Records and What's Inexpensive, Alaska Air's Big Boeing Jet Order, WBD Rejects Paramount Again 1/7/26

Summary

Squawk on the Street (1/7/26) - Detailed Episode Summary

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Main Theme & Purpose

This episode of CNBC’s "Squawk on the Street" (January 7, 2026) covers a celebratory market morning as the S&P 500 and Dow hit record highs. Hosts Carl Quintanilla, Jim Cramer, and David Faber unpack the factors driving the rally, discuss Boeing’s landmark jet order from Alaska Airlines, analyze the ongoing Warner Brothers Discovery/Paramount/Netflix merger saga, and break down hot and undervalued sectors as well as geopolitical energy news. Throughout, there are insights on AI in finance, potential market cycles, and notable interviews with influential CEOs.

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Key Discussion Points and Insights

1. Record Markets & Economic Backdrop

[01:00–01:37]

• The S&P 500 and Dow hit new highs, with the Dow nearing 50,000.
• Macro drivers: stable employment figures (ADP at 41k), 10-year Treasury down to 4.12%.
• Hosts stress "plenty to monitor today" in geopolitics (Venezuela, Greenland oil) and upcoming labor data.

Notable Quote (Jim Cramer, 01:11):
"Short supply and high demand equals higher price in this market. Some of these stocks have had parabolic moves…"

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2. Alaska Air’s $17 Billion Boeing Jet Order

[02:08–05:01]

• Alaska Airlines placed a landmark order: 105 Boeing 737 Max 10s and 5 Boeing 787 Dreamliners, worth about $17 billion (list price; typically not paid).
• This could mark the first year Boeing outsells Airbus since 2018.
• The deal is a remarkable turnaround: CEO Ben Minicucci was once publicly furious after the Boeing door plug blowout two years ago but now returns with a huge purchase.

Notable Quote (Phil LeBeau, 02:17):
"They’re going to be spending, at list price value, approximately $17 billion on another 110 Boeing airplanes… it’s almost two years to the day since Ben Minicucci was furious with Boeing."

[05:01–05:11]

• Boeing is the third-best Dow name YTD.
• Orders for large aircraft remain in tight supply into 2030.

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3. Tech Stock Dynamics & Semiconductor Cycle

[06:08–10:56]

• Discussion shifts to hot tech names like Nvidia, Western Digital, and Sandisk, with Cramer noting the semiconductor "supercycle" echoing the Micron-driven booms of the mid-90s.
• Concerns about "parabolic moves" and warnings for latecomers.
• Memory and lower-end chips are doing well; Nvidia is flat YTD.

Notable Quote (Jim Cramer, 09:09):
"It’s the best S&P name of the year… I owned 5% of Western Digital. The demand is so much stronger and pricing is so firm that you have to raise numbers, endlessly."

• Reminder of past "supercycles" (coal, fracking, sand): "Be very careful."

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4. What’s Still Inexpensive – Hunt for Value

[10:59–13:00]

• Cramer views non-data center industrials and select banks, health care, and retail as attractively valued with historically low multiples.
• Anticipates rate cuts with a new Fed chair and notes upgrades for names like Bridge Generale and Wayfair.
• Stresses looking for ignored/underappreciated stocks (e.g., Kraft Heinz, Colgate, Hershey, McDonald's), but worries about being late to momentum names.

Notable Quote (Cramer, 11:58):
"I’m looking for stuff that hasn’t moved... the non-GUI consumer packaged goods stocks are at historic lows. They’re very intriguing to me."

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5. Warner Brothers Discovery Rejects Paramount’s Offer (Media Merger Saga)

[16:23–23:37]

• WBD’s board rejected Paramount’s latest $30/share all-cash buyout, spurning even Larry Ellison’s personal $40.4 billion equity guarantee.
• WBD prefers its Netflix merger agreement, citing concerns about Paramount’s high leverage and the risk to WBD’s business during the complex 15-18 month closing period.
• WBD chair Sam Depiaza (18:30) insists "there are paths" but demands certainty Paramount can close, especially as media businesses face stress.
• Paramount may ramp up activism or even litigation; large hedge funds (Pentwater) will continue to push for Paramount.
• Proxy advisors and the influence of index funds discussed—could AI change merger analysis?

Notable Quote (Sam Depiaza, WBD Chair, 18:48):
"We have a compelling offer from Netflix... but the question they [Paramount] have to deal with is how can they give us certainty that they will close?"

Faber (21:00):
"It does raise a lot of questions... they do seem to be saying that they want Larry Ellison to step up and guarantee the entire thing, not just the equity financing but the debt as well..."

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6. AI and Finance: Hype and Reality

[06:27–07:59] and [23:10–24:17]

• Gemini, ChatGPT, Grok, and perplexity: Cramer shares cautionary tales about AI giving faulty information live on air.
• “Still not strong enough to be used on Squawk," says Cramer (07:19).
• Speculation on how J.P. Morgan’s proxy analysis AI would rule on the Paramount/WBD/Netflix mergers—but skepticism remains on AI’s real utility.

Notable Quote (Cramer, 07:19):
"I don't like that it still can't be used on our show. It's too dicey. It isn't strong enough to be used on Squawk."

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7. Energy: U.S.–Venezuela Oil Deal & Geopolitics

[37:45–44:57, esp. 39:42–43:35]

• U.S. agrees to buy 30–50 million barrels (possibly more, indefinitely) of Venezuelan oil as part of relaxed sanctions—a way to influence both oil flows and geopolitics.
• Logistics involve rerouting Venezuelan sanctioned oil tankers to U.S. refineries.
• This is only a fraction of U.S. daily needs, and refining heavy Venezuelan oil is costly.
• Benefits for select refiners (e.g., Valero), but Cramer urges caution—structural issues in Venezuela’s industry limit upside.

Notable Quote (Brian Sullivan, 39:42):
"We will send [Venezuelan crude] to, say, a Valero or Phillips 66... sell that back into the marketplace. The money [will be] kept across U.S. banks, then at some point in the future be sent back to Venezuela..."

Cramer (43:52):
"If you think we're going to get a lot of oil out of Venezuela, they don't have any refining capacity. It's going to cost a fortune. And it's all upstream and they're not going to be able to... they don't know how to do it anymore."

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8. Momentum vs. Value: Market Cautions & Opportunities

[25:50–30:18]

• Cramer returns repeatedly to the idea of finding value—what’s "hate" and "inexpensive" (e.g., Lennar, PepsiCo, Kraft-Heinz, Comcast).
• Warns against chasing parabolic moves or market "hot stocks" late in the cycle.
• IPO pipeline: surge in large-cap IPOs (SpaceX, Databricks, OpenAI, Anthropic) could flood the market with supply, making investors reallocate and causing volatility.

Notable Quote (Cramer, 27:53): "I think the re-ups are going to do better. I feel better about a Costco... but in the end I come back and I say, some parts of this market are so hot, and I don’t want to come in on day four and start buying them, and some of the others are so cold."

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9. Notable Stock and Sector Commentary

• Amazon: Still a juggernaut, Amazon Web Services expected to accelerate; Bank of America calls it a top idea for 2026 ([35:38]).
• Apple: Tough act to follow post-iPhone 17. Down ~4% while Amazon up 5% ([34:28]).
• Sandisk & Western Digital: Sandisk, the "new chip darling," but Cramer views it as less sophisticated than next-gen semi names ([36:34–37:18]).
• CrowdStrike: Cramer’s "stop trading" pick for growth and resilience against cyberattacks ([46:46–48:07]).

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Notable Quotes & Memorable Moments (with Timestamps)

• Jim Cramer (on Boeing/Alaska Air), [02:08]:
  • "They're going to be spending list price value approximately $17 billion on another 110 Boeing airplanes. Don’t want to miss that interview guys."
• Jim Cramer (on AI reality), [07:19]:
  • "I found an error that was so bad that it apologized profusely. I don't like that it still can't be used on our show. It's too dicey."
• Phil LeBeau (on Alaska Air order), [02:20]:
  • "It's for expanding internationally... this is crucial to their future."
• David Faber (on WBD/Paramount drama), [19:41]:
  • "It is a... interesting defense and it does raise a lot of questions. Guys. They do seem to be saying that they want Larry Ellison to step up and guarantee the entire thing, not just the equity financing, but the debt as well..."
• Brian Sullivan (on Venezuela deal), [39:42]:
  • "The US government is going to take 30 to 50 million barrels of oil to start, then add more down the road... send that to a Valero or Phillips 66... then sell that back into the marketplace."
• Jim Cramer (on valuation opportunities), [11:58]:
  • "I'm looking for stuff that hasn't moved... the non-GUI consumer packaged good stocks are at historic lows. They're very intriguing to me."
• Jim Cramer (on market risk), [17:17]:
  • "I became much more Jeffersonian and Gandhi. I try to be a little more level headed."

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Important Timestamps by Segment

• Markets & Macro Trends: Start – [01:37]
• Alaska Airlines/Boeing Mega-Order: [02:08–05:11]
• Tech & Chip Cycle (Nvidia, Sandisk, WDC, AI): [06:08–10:56], [36:34–37:18]
• Discussion of Value Sectors (Banks, Health Care, Retail, Industrials, CPG): [10:59–13:00], [25:50–30:18]
• WBD/Paramount/Netflix Media Deal Talks: [16:23–23:37]
• AI in Markets/Proxy Voting: [07:19], [23:10–24:17]
• Geopolitics, Venezuela Oil Deal: [37:45–44:57]
• Stock Highlights (Amazon, Apple, CrowdStrike): [34:28–37:18], [46:46–48:07]

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Conclusion

The January 7, 2026 episode is rich with real-time analysis on market exuberance, major industry moves, and the hunt for underappreciated opportunity as seasoned investors weigh hype against fundamentals. The show features in-depth discussion around value investing, the mechanics of mega-mergers (WBD–Paramount–Netflix), and acute skepticism toward AI’s current application in markets. Jim Cramer and co-hosts deliver both caution and targeted optimism for the year ahead.

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For those who missed the episode, this summary distills the key themes, debates, and actionable insights—while capturing the hosts’ characteristic wit and candor.

Transcript

[Jennifer]

Oh, could this vintage store be any cuter? Right.

[Jim Cramer]

And the best part?

[Julia Boorstin]

They accept Discover.

[Jennifer]

Except Discover in a little place like this? I don't think so. Jennifer.

[Julia Boorstin]

Oh yeah. Huh? Discover's accepted where I like to shop.

[Jim Cramer]

Come on, baby, get with the times.

[Jennifer]

Right. So we shouldn't get the parachute pants.

[Jim Cramer]

These are making a comeback, I think.

[David Faber]

Discover is accepted at 99% of places that take credit cards nationwide, based on the February 2025 Nielsen report.

[Fidelity App/Capella University Announcer]

Not every sale happens at the register before AT&T business Wireless checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people will say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sale or two. Sometimes I do miss the bonding time. Sometimes.

[David Faber]

AT&T business Wireless connecting changes everything.

[Carl Quintanilla]

Market moving insight and analysis Join Jim Cramer, David Faber and me, Carl Quinceanillo on the opening bell hour of cnbc. Squawk on the Street Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quincean here with Jim Cramer, David Faber at post nine of the New York Stock Exchange. Coming off the S and P first record high of the year. There is plenty to monitor today between geopolitics, Venezuela, Greenland oil and the employment picture starting to fill in. ADP mostly in line at 41k ahead of the jobs number on Friday. We do have the 10 year down to 412. Our roadmap begins with this recent rally. S and P and Dow at record highs. Dow getting closer to that 50k mark.

[David Faber]

President Trump is saying Venezuela will give up to 50 million barrels of oil to the US and we have new reporting that oil sales from Venezuela will continue indefinitely and U.S. sanctions will be reduced. And Warner Brothers Discovery once again rejecting Paramount's latest offer to buy the company continuing to prefer the merger agreement has a play it has in place with Netflix.

[Carl Quintanilla]

Let's begin with some breaking news this morning. For that we're going to get to Phil Lebeau in Seattle. Morning Phil.

[Phil LeBeau]

Take a look at shares of Alaska Airlines. Why are we showing you Alaska? Alaska placing a huge and I mean huge order with Boeing for 120 new airplanes. The order breaks down like this. 105737 Max dash 10s. That's the stretch version of the 737 Max that is expected to be certified this year. First deliveries likely in 2027. They're also ordering five Boeing 787 Dreamliners as they continue to expand their international route network. When you look at Alaska's order now, airlines never pay list price for a new aircraft, but if you look at the list prices for these 110 aircraft plus another 35 options comes out to approximately $17 billion. Not a bad order if you are Kelly Ortberg, CEO of Boeing. By the way, Boeing ended 25 with more orders than Airbus. That is the expectation when the final numbers are announced within the next couple of days. That would be the first time in several years that Boeing outpaced Airbus in terms of orders. Ben Minicucci, CEO of Alaska Airlines, will be joining us exclusively coming up later on this morning on Money Movers. We'll talk with BE about this order, guys. And what's most interesting is that it's almost two years, almost two years to the day from when Ben Minicucci was giving interviews after the door plug blowout. He was furious. He was fed up with Boeing. He was close to saying, you know what? We're not going to take your planes. If you can't improve two years later, they're going to be spending list price value approximately $17 billion on another 110 Boeing airplanes. Don't want to miss that interview, guys. Send it back.

[Jim Cramer]

Okay? Okay, that's, that's fantastic news. Fill in full disclosure much helps us. A big session, Boeing. I had John Holmes last night from Air Corp. They do a lot of servicing for aerospace. And he was saying, listen, Jim, don't get, don't get ahead of yourself. There really aren't any planes available till 2030. But when I listen to this order, I think that the 787 are available.

[David Faber]

Right?

[Jim Cramer]

It's not just, it's not 737 maybe in tight supply, but Boeing may actually see some of these earnings this year.

[Phil LeBeau]

And they're ramping up production. Jim, I don't know the exact cadence on the deliveries of the Alaska787 Dreamliners, but this is an important part of this order. Yes, the 110 aircraft will get the headlines, but these five 787 Dreamliners a little bit later on today, we're going to be seeing what they plan to do with these aircraft. It's for expanding internationally. And I know a lot of people who watch us in the United States on the eastern half of the US they're not familiar with Alaska and they think, well, that's a nice little airline out there on the west side on the West Coast. They're growing, they're growing. And Ben Minicucci is adamant that this is crucial to their future. We'll talk with him at 11.

[Carl Quintanilla]

Phil, appreciate that. Big news to start the morning on the aviation front. That's a field of boy a little bit. Boeing is the third best Dow name of the year so far, Jim, behind Kat and Goldman.

[Jim Cramer]

Well look, I think the shorts supply that's been the theme by the way. Whatever it is. Micron, short supply, sandisk, short supply, short supply and high demand equals higher price in this market. Some of these stocks have had parabolic moves. I don't trust the SANDISK anymore. It's too strong. Western Digital, the Boeing I think is really just recovering from a real mistake in sale at the end of last year. Kelly Ortberg has always taught you free cash flow. Free cash flow, free cash flow. The stock, they had great free cash flow and the stock still went down very big. That was just a mistake. And the stock has bounced all the way back. The market is being done. Its equal wave is. Listen to Frank Holland this morning is excellent. So 5. It's the S& P equal weight which I love because that means this thing is not being done by David's non favorite in video which you have killed by saying to me every day, Jim, if it's so good, why is it doing nothing?

[David Faber]

Oh, it's my fault.

[Jim Cramer]

Kind of the only person.

[David Faber]

By the way, it did do something. Look, it's up. It's up 1.48% in the last three months.

[Jim Cramer]

Well, don't make fun of me.

[David Faber]

That was not making fun of me.

[Jim Cramer]

I'll make fun of your interview with Warner Brothers Discovery.

[David Faber]

You will?

[Jim Cramer]

No, I thought it was really good.

[David Faber]

Thank you.

[Jim Cramer]

I was trying to find things to say that we're not good about it.

[David Faber]

We'll talk about that later. But you want to talk about Nvidia now.

[Jim Cramer]

I think you have to talk about what's going on. The lower end chips are doing very well. The high intellectual property or not. Fabulous article by the way, about Google this morning in the Journal about how like Code Red. Talk about Code Red.

[Phil LeBeau]

They.

[Jim Cramer]

They heard the call. I thought that was terrific.

[David Faber]

It was an interesting blow by blow in terms of how a year over the last year Google really turned it around, so to speak, in terms of taking the lead potentially, some would say.

[Jim Cramer]

Right.

[David Faber]

Well, I want to come to the chat box.

[Jim Cramer]

Don't point out that Jensen is Adam Jensen Huang, CEO of Nvidia did say, Listen, 90% of these guys are good, 10% bad. We all seem to have stories. I was on Gemini yesterday. I'VE been praising Gemini David. I had found an error that was so bad that it apologized profusely. I don't like that it still can't be used on our show. It's too dicey. It isn't strong enough to be used on Squawk with.

[Carl Quintanilla]

And you saw the comments from the Dell executive at CES saying that maybe some of these AI features are driving people away on PC purchases.

[Jim Cramer]

Look, what they're doing is they're just. They're taking all. They compile. That's Genesis where they compile. And they tend to compile for some really sketchy sources. We would never. I don't want to single out any particular source that they get wrong with, but they're wrong so often that it's just simply. Sure, maybe you can use it to be able to evaluate proxy forms if you're JP Morgan, but it's not good enough to use on the show. It's embarrassing.

[David Faber]

And we won't.

[Jim Cramer]

You shouldn't. Yesterday I was asking how W.K. kellogg is doing is doing fine. It's really terrific.

[Carl Quintanilla]

And then you said, are you sure?

[Jim Cramer]

Well, deal, deal.

[David Faber]

Close.

[Jim Cramer]

It got bought was completely wrong.

[David Faber]

But everyone has those separate company that was bought by Ferreira.

[Jim Cramer]

Exactly, exactly. So I just point out that we can't use it. It's just not. It's just not acceptable.

[David Faber]

My own AI right there.

[Carl Quintanilla]

That's all you need.

[Jim Cramer]

You had AI this morning when you drilled down on Warner Brothers Discovery. Yeah. I say 34. Nothing. I know. We're all over the place. David hates that. A linear stuff.

[David Faber]

We're going to come back to it. We have a whole block devoted.

[Jim Cramer]

I've got the RSU trying to figure.

[David Faber]

Out how much devoted.

[Jim Cramer]

I think Waldron's up because the wall. That was yesterday. Oh, that was yesterday.

[Carl Quintanilla]

To your point, though, Jim, NDX is up almost 2%. A lot of it is semi cap and memory. To your earlier point, Nvidia's red or flat year to date. Apple, Tesla, Applovin, Core Weave. Does this thing get broader on approach cyclical trade or the trade.

[Jim Cramer]

I think that. I think that everything is extended. That has got lower. That has lower historical. Lower price journeys multiple in that chart. Lamb, though. Lamb is really good and they have a lot of orders. But, you know, Western Digital short squeeze.

[Carl Quintanilla]

It's the best S and P name of the year.

[Jim Cramer]

It's a short squeeze. I own those moves. I own 5% of Western Digital. I own 5%. At one point when. When I thought that it was going to do this and it did And a lot of people want to bet against these companies because the moment you get that one extra drive or one extra nan this flash is doing very well sandisk then it's just over. And a lot of hedge funds came in and said you know what? This can't last. The problem is the demand is so much stronger and pricing is so firm that you have to raise numbers. Raise numbers, raise numbers endlessly. We're back into the 9495 micron cycle which was just one of these incredible cycles and but I did hear yester day someone used the term supercycle. We've had three supercycles the last 15 years coal fracking sand and this be very careful.

[Carl Quintanilla]

Yeah Goldman yesterday desk note said it felt feels to them like January of 99 I like that analysis did go they went hot.

[Jim Cramer]

I like that too early if you.

[Carl Quintanilla]

Wanted to top it out was a great year.

[Jim Cramer]

It was. It was an unstoppable year. That was the Qualcomm 1000 remember was.

[David Faber]

GE hitting all time highs market cap all time highs.

[Jim Cramer]

Well until I just don't. I don't want people to get hurt. Those stocks have had a monster move and at this point you have to wonder do you really want to come in Micron's got some good stuff happening. Okay there's definitely but when you look at the lower quality multiples historically SanDisk Western Digital and you're paying as if this shortage is going to last forever and they never last forever one day LAM research will produce the additional one widget and you will see equilibrium and that's the end. So I want people to be very careful that those A lot of people made their year in the first three days made their year hedge funds and.

[Carl Quintanilla]

They'Re going to go and move to.

[Jim Cramer]

Okay I think that the companies that are very reasonable are the non data center industrials those are terrific I was going to say the banks but they had another big move yesterday health care ahead of the J.P. morgan conference where there's still money to be made yet a double upgrade today a bridge general I mean that thing's been just okay. I see those stocks as having historically lower multiples and I want to look at retail which has been stalled and I think that there was a recommendation of lows today ahead of what's going to be I think a fed is.

[Carl Quintanilla]

Another easing cycle Barclays ups to overweight.

[Jim Cramer]

Ups Wayfair overweight Excellent calls. I can get behind those because we're going to have rate cuts and how do I know that because we have a new Fed chair coming. And I don't think any of those fed chairs are all. I mean everyone's independent of everyone except for when it comes to cutting rates.

[David Faber]

So we get a rate cut. Yeah, we get with the new Fed chair. It's all good.

[Jim Cramer]

He asked me which ones you would buy.

[David Faber]

No, true. I heard the answer.

[Jim Cramer]

It's good, right?

[David Faber]

I liked it.

[Jim Cramer]

And I just think that I'm looking for stuff that hasn't moved. Mean, what do I want to buy Target with the new CEO? I don't know. I'll give you another group that if they're creative. The reason I looked up debate Kellogg was I wanted to see what the new CEO Kraft Heinz calling. I mean he has Kelly. He brought a huge, huge value. Could he do it again? Kraft Heinz conceivably. But I think this group led by Colgate, the non GOP dash one consumer packaged good stocks are at historic lows. They're very intriguing to me.

[Carl Quintanilla]

Well, to your point on that. Got an upgrade of Hershey today over Piper. Got an upgrade of McDonald's. Not the only one looking for things that have been ignored.

[Jim Cramer]

The McDonald's piece is very good piece again. Unfortunately cattle's up again beginning of the year. Cattle. And that's so people are going to say listen, beef is going to make it. So you can't pay 360 for McDonald's. And that's true. And you can't as much as Shake Shack, I love it is up 6 or so. That's late. I don't want to be in something that I'm late to the move because.

[David Faber]

How late are you to the move? I mean maybe we're in a momentum market right now and you just want to, you know, keep going on the banks.

[Jim Cramer]

You're right. You know what? Everything I said I want to take back because I think was fatuous and I don't believe it. What do you want me to say?

[David Faber]

So focused on here.

[Jim Cramer]

What do you want me to say?

[David Faber]

You used to be. You used to be from the church of what's working now. What happened? Well, now you're about the church of what's going to work.

[Jim Cramer]

I became much more Jeffersonian and Gandhi. I try to be a little more level headed. Believe it. No, I was asking stocks that haven't moved. Yes, a Costco versus Western Digital.

[David Faber]

All right.

[Jim Cramer]

Do you know what Western Digital does? You think it's a company? It's a west coast company. Does digital work?

[David Faber]

Do a general idea of what they do.

[Jim Cramer]

Sandisk is like A sandbox.

[David Faber]

What? Are you going to say that?

[Jim Cramer]

What are you saying? What are you saying to me?

[David Faber]

Saying that move is what?

[Jim Cramer]

You bought a place in Delray, in the Seagate. It's very good. It's one block off the beach. Younger people there.

[Julia Boorstin]

Seagate.

[David Faber]

I get it. It's in Jersey, isn't it? Yeah.

[Jim Cramer]

No, it's in Delray, Florida.

[David Faber]

I thought it's in Southern. Oh, yeah, all right.

[Jim Cramer]

I thought Seagate. They'll put you in Seagate. That's a Sunrise Senior Living place. I'll put you in Seagate. It'll be very nice for you. Good burger.

[David Faber]

I'm headed there. I'm sure you and I are going to be playing.

[Jim Cramer]

Not me.

[David Faber]

Partner shuffled.

[Jim Cramer]

Not me.

[David Faber]

Part of something. Not you.

[Jim Cramer]

Never listen to him. I'm going to be launched by SpaceX, go to Mars, turn into a 30 year old.

[David Faber]

Oh, you're going to be on the thing. On the starship with Musk and all his descendants on the second.

[Jim Cramer]

Second. I'm going to take some of his trillions.

[Carl Quintanilla]

Jim Cramer.

[Jim Cramer]

Turn back my age. Because that's what it does, right? When you're a trillionaire. Don't you get to turn back your age? You do.

[David Faber]

You could just have to go faster than the speed of light and suddenly you're younger.

[Jim Cramer]

Yeah, $34 there. That's everything you need to know about your Warner Brothers discovery.

[Carl Quintanilla]

We'll get to Warner. We'll get to Warner. In the news that David brought us earlier today, we'll get to a bunch of other names gme Albertson's JPM strategy when we come right back.

[Jim Cramer]

Hey, Fidelity. How can I remember to invest every month?

[Fidelity App/Capella University Announcer]

With the Fidelity app, you can choose a schedule and set up recurring investments in stocks and ETFs.

[Jim Cramer]

Oh, that sounds easier than I thought.

[Fidelity App/Capella University Announcer]

You got this?

[Jim Cramer]

Yeah, I do.

[David Faber]

Now, where did I put my keys?

[Fidelity App/Capella University Announcer]

You will find them where you left them.

[Carl Quintanilla]

Investing involves risk, including risk of loss.

[David Faber]

Fidelity Brokerage Services, llc.

[Carl Quintanilla]

Member nyse, SIPC.

[Julia Boorstin]

Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals, like business management, strategic planning, and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella. Edu.

[Jim Cramer]

What made you confident that you could.

[Julia Boorstin]

Do something that hadn't been done before?

[David Faber]

I have no fear of failure.

[Jennifer]

Trailblazing women, changing the game.

[Fidelity App/Capella University Announcer]

One of my favorite pieces of advice, think about what your boss's boss needs.

[Jennifer]

Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things. Julia Media Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts.

[David Faber]

Welcome back. Keeping an eye on shares of Warner Brothers Discovery. This morning, as expected, the company's board of directors has rejected the latest iteration of Paramount's offer to acquire the company. $30, all cash. But remember, they now added that guarantee, personal guarantee of Larry ellison for the 40.4 billion in equity as a part of the the transaction. Not enough to sway the Warner Brothers board, which in its 14D9 filing, which details in voluminous fashion many of its concerns. And then in a shareholder letter it goes on as well to sort of really focus on a few, some new in fact, and one in particular that I would focus on here because there is that question as to whether it makes it almost seem as though no matter what Paramount might try to do, there's nothing it can do. Because in its shareholder letter on 14D9, the company raises the idea of simply the leverage at Paramount when it would acquire Warner Brothers Discovery and the decline in the overall business of Warner Brothers Discovery's global networks. Perhaps the onerous conditions associated with a Paramount deal bringing that business to a level in which you might even be able to declare a material adverse change. It's a number of different areas here, but that one got my attention perhaps the most, saying the operating restrictions between signing and closing imposed on Warner Brothers by the offer could damage our business, allowing it to abandon the offer owner's covenant, onerous covenants restricting Warner Brothers ability to modify, renew, terminate affiliation agreements. And they go on to say, as I said, enabling Peace Guy and its financing partners to terminate the transaction or renegotiate the terms of the transaction. That's a key question here. And what I put to Sam Depiaza, the company's chairman, basically asking, well, it would seem to imply that no matter what Paramount does, it's not going to be enough. So aren't you kind of saying you've got no chance here?

[Sam Depiaza]

No, no, there are paths. But let's start with we have a compelling offer from Netflix that is a $400 billion investment grade company and with a clear record setting termination fee.

[David Faber]

Now I get all that, but what are these paths that you're discussing then? If you continue to say, well, leveraged buyouts are risky in their nature there.

[Sam Depiaza]

I'm not going to do their deal for them. And in fact we have a deal with Netflix. But the questions that they have to deal with is how can they give us certainty that they will close?

[David Faber]

They haven't done that with a personal guarantee from Larry Ellison that gets the.

[Sam Depiaza]

Equity to the table. But the entire sector is under stress. And remember, we're 18 months, 15 to 18 months and closing. Financial markets can change. The market conditions generally can change and the media business, particularly the linear business, is under stress. So what happens if at that point they decide, you know, we're just not going to close?

[David Faber]

It's a interesting defense and it does raise a lot of questions. Guys. They do seem to be saying that they want Larry Ellison and they didn't say it's been specifically. But I think you can read between the lines to step up and guarantee the entire thing, not just the equity financing, but the debt as well, to conceivably be there. I mean, it is a. It's also interesting to hear a company comment on the state of its own business in terms of it being somehow dislocated even more as a result of signing this deal in that 15 to 18 months. And what it would mean for Global Networks, which by the way, right now on the Versant multiple Global networks is worth probably 20 cents a share.

[Jim Cramer]

That's on EBITDA.

[David Faber]

3.8 times is reverse is trading right now. Now they will argue that Global Networks is a different business. A lot more free to air sports in Europe, CNN itself worth so much more. But if you do it on a pure multiple basis, enterprise value over EBITDA 3.8, you get basically no value. Given the debt load at Global Networks. I do think it's interesting to hear them talk about the debt loaded to combine Paramount, Warner Brothers, meanwhile, they've got an incredibly highly levered entity as well. Not as highly levered to be fair, as Paramount would be. But why is that an issue for shareholders of Warner Brothers once they get the cash matter?

[Jim Cramer]

Okay, so let's. Let me ask you. I listened to that, it was a great interview. And I come back, I say, why didn't he say for $34?

[Carl Quintanilla]

He said, I'm not, we're not going to do their deal for them.

[Jim Cramer]

I know.

[David Faber]

And he did say, and they didn't raise their price. He mentioned that earlier.

[Jim Cramer]

Right. But I did find it, I thought it was very cogent. And I did say to myself, look, is David going to ask whether they have an animus against.

[David Faber]

And he claimed.

[Jim Cramer]

And your question was the most important question.

[David Faber]

And he says they don't. They continue to seemingly have these concerns, though. And I raised these concerns because they are different than the ones we'd heard some of the ones we'd heard previously. Now, there's plenty of math we can do here around what they feel is a liability they would inherit should a Paramount deal not happen. The 2.8 billion break fee. They don't Netflix the one and a half billion dollars associated with having to refinance their bridge loan that they wouldn't be able to do. So those add up and that's important. And it is unclear as to why Paramount hasn't just made it clear.

[Jim Cramer]

Right.

[David Faber]

What it's willing to do about that.

[Jim Cramer]

What was great about the interview when you beat the book all the time was. Okay, listen, are you. Are you watching Ellison? Here's the deal. This is what you have to do. There is a path that they laid out, David. There is.

[David Faber]

But I do wonder with this objection to the overall. Just saying. Listen, we're going to. You're going to. It's the large leverage buyout of all time. And sometimes your lenders can get a little squishy on you.

[Jim Cramer]

Yeah.

[David Faber]

I don't see how you. I don't see how you cure for that.

[Jim Cramer]

No.

[David Faber]

And by going up you're only increasing the concern.

[Carl Quintanilla]

Which is why Andrew asked you whether or not there was the possibility. They say, you know what? This is worth the trouble.

[David Faber]

I don't think they're going to.

[Carl Quintanilla]

You said no.

[David Faber]

Carl, I fully believe that Paramount will continue to fight this and in all sorts of ways. They're almost undertaking now more of an activist campaign. It wouldn't shock me if they were to sue them in some way at some point and try and take some things to the courts. They're going to use shareholders and in fact we're going to have one of the largest shareholders in Warner Brothers. Join us in the next hour. Squawk on the Street. Matt, how about from Pentwater who believes the Paramount deal is the better deal? They're going to try and pressure that way and then we will see what happens when we get closer to our shareholder vote. Which guys is months and months away.

[Jim Cramer]

Let me conflate a topical issue and I would love to hear you opine on it. This is a deal that you might have had say and ISS or Glass Steagall.

[David Faber]

Yes.

[Jim Cramer]

If you put these through the rigor of the new J.P. morgan method of A I which deal would be superior?

[David Faber]

I don't know how the AI is going to rule here.

[Jim Cramer]

Isn't it interesting to see whether. I'd love to know what the asset managers at JP Morgan are going to.

[David Faber]

Be relying on when you're raising a good point. The proxy advisory firms and their power continuing to potentially be curtailed. The influence they have over index funds, which prove very important in potential votes like the one we're discussing.

[Jim Cramer]

Mario's. How would you do it?

[Carl Quintanilla]

Depends on which model you use, I guess.

[Jim Cramer]

I just hope they don't use.

[David Faber]

Should we do it now? Gemini and Chat and Grok do it.

[Jim Cramer]

I'm going to do a perplexity. Don't forget.

[David Faber]

Put it in there.

[Jim Cramer]

Got lots of people who are undressed that I don't get.

[David Faber]

Let's do that.

[Carl Quintanilla]

I think we know what Grok would say. Is that.

[Jim Cramer]

Yeah. What would Grog say?

[Carl Quintanilla]

He'd say Paramount.

[Jim Cramer]

Yeah. Right. Anything goes.

[Carl Quintanilla]

Yeah.

[Jim Cramer]

They used to say, I want to buy cnn.

[Carl Quintanilla]

Yes.

[David Faber]

You imagine Elon Musk owning cnn.

[Jim Cramer]

I just think it's a very interesting thing what they're doing.

[Carl Quintanilla]

Save a lot of money, but it's accurate earnings coming. Tuesday. We'll get Cramer's mad dash in the opening bell in five minutes.

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[David Faber]

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[Jim Cramer]

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[Jim Cramer]

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[David Faber]

Oh, man. I'm just picking the phone up during breaks. Getting yelled at. What do you got? What do you got for the mad dash? I know. Thank you.

[Jim Cramer]

All right, I'm going back to the point that we raised AT the top of the show which is what's still inexpensive and it's what's hated. And that's the problem this morning. Citizens downgrades Lenore. Now if you take nor Lenore happened to be as high as 140. Right now it's at 106. Do you want to buy Lenor? Well, the fact is Lenore's got too much inventory. Remember the days when homebuilders used up too much inventory and prices are going to come down now Lenore must be great. This is Stuart Miller. He's one of the greatest home home builders in the country. So he's not. There's nothing here that's like he's wayward. But do you want to buy a quality home company builder ahead of a couple of rate cuts but you also have to deal with maybe a strong employment number. And the answer is it's too hard.

[David Faber]

It's too hard.

[Jim Cramer]

It's seven times.

[David Faber]

But China, you're trying to sort of think about rotating to safer stuff in a way but.

[Jim Cramer]

Well, but it's hard to do $7 14. Yeah, it is. I mean last night I had this. I looted this one. I was talking to Phil. I had this company Air A R okay. And their numbers are explosive and they had an amazing quarter. And so do I want to come on today and say it is time to buy air when it's at full time high and it's got a big valuation now. And the answer is that if you come in now you better have a darn good reason ahead. Not before air all already reported. Sandisk has already raised prices. We already know what's going on at Seagate. You have to have something that nobody has.

[Carl Quintanilla]

Let's get the opening bell on the CNBC real time exchange with the big board. It's Coastal south bank shares celebrating a recent IPO at the nasdaq. Lyra health provider of mental health services. We did keep a close eye on the XLV yesterday, Jim and health care in general.

[Jim Cramer]

Well, look, I think you have to. I mean we had a double upgrade for generation showing that there may be new life got Leah. We have obviously Eli Lilly about to do a deal that I think somehow seems to have leaked. I thought that deal was going to come next week. This is a deal very small deal, $1 billion. But I thought it would be announced then takes it's Ty X a lot of buy inside a lot of buying ahead of that. By the way. Just want to point that out. Not, not like Poly Market Venezuela. That was a decay Trade or the.

[David Faber]

$400,000 that was made by somebody who was betting on Maduro's capture.

[Jim Cramer]

Yeah, I was spent. I spent a lot of time on a recent trip talking to some really high level bankers who said the biggest problem they're going to have with the the poly markets and the calcium is okay. Is a overthrow considered to be just Maduro is an overthrow.

[Carl Quintanilla]

Who's the arbiter of all that stuff? Who makes the book?

[Jim Cramer]

It's kind of like at the, at that moment in Apocalypse now when you're going up the river and Martin Sheen says who's in charge?

[Carl Quintanilla]

And the guy says you are the horror.

[David Faber]

Great movie.

[Jim Cramer]

Yeah. But I do think that we are, we're searching. I think we're all looking do a get into this issue. I was looking at PepsiCo yesterday.

[David Faber]

Really?

[Jim Cramer]

Yes, because it's got an activist. It's got the possibility of we can go back and do maybe a catalog to it. Split it up. It's at 4%. It sells at 17 times earnings. Historically you got a 23 multiple. But then I come back and I say okay, you are always going to.

[Carl Quintanilla]

Say leads you right into a discussion about GLP1.

[Jim Cramer]

I just don't see a way around it.

[David Faber]

You don't.

[Jim Cramer]

Is Mars going to buy. I mean Mars bought Pringles. I mean maybe you combine that with Frito Lay. I don't know. Look, I'm just saying it's fraud I guess are fraught. I mean Costco not fraud. They're going to do the numbers. I think the re ups are going to do better. I feel better about a Costco. I'm looking at the stocks that are very low. I see some of the industrials that could actually go up that are non data centered. But in the end I come back and I say it's some parts of this market car are so hot and I don't want to come in on day four and start buying them. And some of the others are so cold. I know they're just too cold.

[David Faber]

Too cold. I mean choosing something just because it's trading in an incredibly low multiple to its free cash flow or ebitda. Oh stop it would not necessarily be.

[Jim Cramer]

The right move choosing something that has a 4% yield.

[David Faber]

What about Comcast for example?

[Jim Cramer]

I'm doing the numbers right now. You cut me off.

[David Faber]

I thought you were.

[Jim Cramer]

I was one of the cheapest stocks in the s and P500. What that means is what what is cheap has tended to hear from the.

[David Faber]

Company'S co president this morning on squawks Mike Cavanaugh.

[Jim Cramer]

Yeah.

[David Faber]

Excuse me, co CEO.

[Carl Quintanilla]

Yeah, sorry.

[Jim Cramer]

Well look, I mean I look, we own. Obviously I own Comcast owners. I feel like that at this point all you can do is rely on the numbers and you've got a 13 to 27% decline decline in free cash flow forecast 20% payout already it comes to $220 million. This is the versatile numbers. But these have nothing to do with reality because right now would yield about 4% 5% at 30. Okay. And the problem with all of this is because there's some 40% of the company is owned by index funds. And what you have to do if you have to get out in order not to have a tracking error. So what happens is you had the big funds, the hedge funds short the stock right here. The big brokerage is short the stock knowing that the at the end there'll be a big close the end of the day of the index funds blowing out of it because they're going to underperform if they keep it. And that's what's going on with the stock, not the yield and not sure like people doing free free cash flow analysis. Like I, I mean I didn't waste my time. I did it. No, it's with Jeff. I wasn't even.

[David Faber]

I wasn't. Yes.

[Jim Cramer]

No, no. I'm just saying that what's happening is how do you get out of this thing before you hurt your performance versus the S and P if you're one of these S and P funds. And the answer is as fast as.

[Carl Quintanilla]

Possible to your larger point about short interest B of A today actually Goldman our short interest in the s and P88 percentile since 95 highest in about a decade which a lot of chatter about a short squeeze.

[Jim Cramer]

Well there's people who just say well wait a second, we have a very high multiple so we should short it. That doesn't make sense because the market and pulls forward. Look, if you really are short, you have to bet that we have every one of these almost trillion dollar IPOs which would then create a huge amount of supply. David, if we all brought. If Space X were to come public and databricks comes public and by the way, of course if Open Air comes public will have such a deluge of equity that it will be hard to find the cash and you'll have to sell stocks to buy it.

[David Faber]

Yeah, you, you make the that point during periods of high IPO activity levels.

[Jim Cramer]

You've made it before 2014 being class.

[David Faber]

We haven't had that many Periods Obviously last year was a far better year than the year previous. 25 over 24. But yeah, if we get anywhere near what might come just Space X alone. The magnitude of that company you have to sell still not completely clear to me given I believe it's free cash flow positive why they even need to come public and whether it would even be used as a capital raising opportunity.

[Jim Cramer]

But you know that would be a great piece of paper, right? Boeing's now down very easily after the Alaska. It'd be a great piece of paper to own Space X but what would you sell in order to take it down? That's what's going to happen.

[David Faber]

It could.

[Jim Cramer]

And will they be out of the.

[David Faber]

S and P immediately come to prospect at some point? Probably not 26 but who knows of open air or anthropic or I mean.

[Jim Cramer]

Anthropic is going to be I think immensely profitable. That's business to business. All hitting the others are business to consumer, which is questionable. Yep, when I say that I mean business. Business is very steady business to consumers, very fickle. Allah, that Google article this morning which talks about leapfrogging who's hot. I don't want to invest on who's hot. That's a sucker's game that you've never.

[Carl Quintanilla]

You'Ve never been about the, the horse race, the, the sort of flip flopping.

[Jim Cramer]

It's a terrible position. I mean what happened to Alphabet, Google that changed everything was when the judge reverses position and said they're not a monopolist and they can even pay Apple 20 billion in order to make Apple strong so it could compete. The fatuous reasoning of that. I would if I were a first year law student of which I was at one point but I was busy reading the journal in the back row. I would take that, I would say listen and Phil arena who was my antitrust professor, that guy said what would you think of this? And he would say Jim, I really want to quote Oliver Wendell Holmes. Stupid.

[David Faber]

Speaking of Apple, it is one of the, of the Mag 7. The two A's are going in different directions. Amazon's up almost 5% yesterday about Amazon and Apple is down almost 4%.

[Jim Cramer]

Had a great quarter, went to 255 on the quarter then somehow went to 223 based on Apple. Nothing. So I went over with, with the CF with the top team there and we couldn't figure out what the heck went wrong.

[David Faber]

You couldn't, huh? You with the team couldn't figure it out?

[Jim Cramer]

No, I did it by myself.

[David Faber]

Part of the team or are you you know when you talk to the Amazon is it us team Just kind of curious when over with the team.

[Jim Cramer]

I thought as a journalist I had access to the top people and I use that you do that.

[David Faber]

I just thought it was.

[Jim Cramer]

I could easily just be like the analyst. It's kind of the numbers up there because I want to meet with the Ohio State Ohio. I make up numbers. You want me to do that?

[David Faber]

No, I want you to tell me what you and the team came up with.

[Jim Cramer]

You were just going over the growth rate of Amazon Web Services went over the real retail could be doing no inside information any of these. I just did the work and the work indicated that the 255 price after the quarter was more accurate than the 220 price.

[Carl Quintanilla]

Well it's coming off of a substandard by Amazon historical standards last year today B of a top idea for 26 that's getting a lot of attention.

[Jim Cramer]

Look, I think that the Amazon web service is going to continue to accelerate the club. You know the prime club is terrific. Do we have a case like Google where it could explode? I don't know. They do have a stake in you know anthropic. They there's a lot more optionality than people realize in Amazon. And you know Andy Jassy a lot of people feel like India came from Amazon Web Services. It hasn't done as well as as Bezos was there. I think this thing is a juggernaut. I really really like it Apple harder because the 17 is a hard act to follow. And take a look at. You know Apple's kind of like Nvidia. I mean Nvidia got this gigantic China order huge. And it was bytedance by the way and nobody cares. I thought that like when they were being shut down in China that's why we sold it and then because Barron's.

[Carl Quintanilla]

Rights today sandisk is the new chip darling.

[Jim Cramer]

Sandisk. Sandisk. Okay. That's like an erector set versus the World Financial Center.

[David Faber]

Yeah, that may be a poor comparison but it's true in terms of at least investor sentiment right now.

[Jim Cramer]

Easy to make those. It's hard you know like when they have a five core. Lisa sue yesterday said something like well you know we have 5 billion pieces of transistors and this. And I said oh well it could be 4.8.

[David Faber]

I think it was actually 340.

[Jim Cramer]

Well I'm just saying 48. So it's 500 billion on one thing, right? On one thing. And I just say that SanDisk is not just good company. But you're not going to have 500 billion transistors.

[David Faber]

No. They're not going to design Vera Rubin. They're not going to design Vera.

[Jim Cramer]

Okay, here's a quiz. Who's after. Let's see how much work he really does. Who's after Vera Rubin? Richard Feynman.

[Carl Quintanilla]

Oh, the Feynman. Right. We talked with Jensen about.

[Jim Cramer]

And that book. I know he has two books and I know they're supposed to be really funny. Maybe they're funny if you're like a.

[Carl Quintanilla]

Because we joked about. Surely you're joking, Mr. Wong.

[Jim Cramer]

Yeah, that was our. I read that. Surely you're joking. Oh my God. God.

[David Faber]

Guys, we haven't talked oil at all. I'm keeping an eye. Exxon, Chevron, there's apparently going to be a meeting in the Oval Office later in the week, I believe Friday, right. The Trump administration, the president meeting with the leaders of big oil would include Exxon and Chevron.

[Jim Cramer]

Mike Worsen to be able to go there.

[David Faber]

You are reporting more on Mike. The state of Mike Worse.

[Jim Cramer]

Catbird Shevron is the only winner that I have heard. Maybe you can save Lero. And by the way, we're talking about, you know, how little oil we're talking about with those figures.

[David Faber]

You mean the 50 million?

[Jim Cramer]

Like I said 130,000. I mean, you know, give me two.

[Carl Quintanilla]

To five days worth of U.S. production. Yeah.

[Jim Cramer]

You know, it's like, look, one day.

[David Faber]

Of like, what are you doing?

[Carl Quintanilla]

We do 13 production. 13 in a day.

[Jim Cramer]

Yeah. I just think remember this.

[David Faber]

But they're doing 900,000. So it's a lot of their production. So 15% of their overall annual production.

[Jim Cramer]

And it could hurt China. But I mean, it's amazing when you say China, immediately we start hearing about, about Taiwan, you know, and the boats that could have secret drones in them. I mean, look, it was a power play. We can talk about what happened. We can discuss the political sciences aspects or the legal aspects. But I would say that if you think we're going to get a lot of oil out of Venezuela, they don't have any refining capacity. It's going to cost a fortune. And it's all upstream and they're not going to be able to. They don't know how to do it anymore. You know, when Maduro put his own people actually in 2006, seven, they put their own people in and they weren't real oil people. And that was the beginning of the decline was the skill set. They let off 20,000 people in a strike who were actually good oil people.

[David Faber]

You got Rusty Brazil on tonight.

[Jim Cramer]

Yes, I do. And Rusty has been producing a lot of the data that is being used. And I think he, he would tell you, please don't get too far ahead on yourself on this. Then don't get too far ahead of your.

[Carl Quintanilla]

Well. The energy Secretary is presenting today at the Goldman Sachs conference talking about all of this, the spr. For more on that, let's get to our Brian Sullivan at the Goldman conference in Florida. Hey, Brian.

[Brian Sullivan]

Hey, Good morning, guys.

[Jim Cramer]

Yeah.

[Brian Sullivan]

As we broke the news earlier in squawk box, the United States, it's not just 30 to 50 million barrels a day or barrels in total we're going to acquire, it's indefinite. And that's the big breaking news from this conference that we had earlier today. 30 to 50 million is going to be sort of the first tranche. But keep in mind, to Jim's point, that's effectively a month and a half roughly of Venezuelan oil production. And we're also talking about only taking sanctioned oil. About one third of Venezuelan oil is sanctioned. So 30 to 50 million barrels under that really rough math, don't hold me to this, guys, would be about three months of sanctioned oil production. You are correct. This is heavy sour crude. It is expensive and difficult to refine. The idea and what we're talking about this morning is that the US government is going to take 30 to 50 million barrels of oil to start, then add more down the road. We will send that to say, a Valero or Phillips 66. Those names are not mentioned to me by the White House. I'm throwing them out as companies that have the ability to refine and market some of this heavier sour crude, then sell that back into the marketplace. The money from those sales would be kept across US Banks and then at some point in the future be sent back to Venezuela for their use. Guys. But not until Venezuela, effectively, for lack of a better term, cleans up its act. It's probably why you're seeing Valero up nearly 4% right now to Jim's point. Venezuelan oil, it's kind of like tar. Take maple syrup, make it thicker. It's expensive and difficult to refine, but it looks like for months to come or years to come. The United States is now the primary owner and marketer of Venezuelan oil. That's the big headline. Among others from this conference earlier today. By the way, Secretary Chris Wright, who we will speak exclusively on Power Lunch to live today, was on stage here at the Goldman conference and he and he addressed exactly what's going on with Venezuela. Here's what Chris Wright had to say.

[David Faber]

We're going to market the crude coming out of Venezuela.

[Jim Cramer]

First, this backed up stored oil, and.

[Phil LeBeau]

Then indefinitely going forward, we will sell.

[Brian Sullivan]

The production that comes out of Venezuela into the marketplace. So, as you guys know, backed up stored oil is a fancy term for basically oil that's an inventory sitting on ships. Either way, the United States now the primary part partner for, for lack of a better term for Venezuelan oil.

[David Faber]

Brian, do we know how it all works? I mean, is it. Who's on the ground there that we're. I just, you know, how does that actually get executed?

[Brian Sullivan]

Yeah, so that. That was my first question. To buy sources that are close to the White House. I will say this, I hate saying this. I'm not exactly sure because it's going to differ. For example, there will be times, as we saw today, where sanctioned oil tankers are boarded, taken control of and rerouted to the United States. We saw that with the Bella one, We've seen this with the skipper. The other I'm naming ships, by the way, that were boarded by US Authorities. In the future, oil will be just taken, not taken, but given to the United States directly from Venezuela. So if there is an oil tanker that is being filled up in Maracaibo, Venezuela, and was going to be sold as sanctioned oil to, say, China or maybe a Turkey, making those countries up, but they're the largest buyers of Venezuelan oil, that ship, David, will be then rerouted to Galveston, to Houston, to Louisiana. The oil offloaded, refined, and then, as you heard the secretary say, marketed, AKA sold back to Western countries.

[Carl Quintanilla]

Hence the action in Valero today. Brian, we'll appreciate that. We'll talk all morning. There's still the question, Jim, not just the constitutionality of all this, but what the Chinese will say about it. Carney goes to China next week. We got Russian naval activity, submarines, $50.

[Jim Cramer]

Billion that they owe the Chinese, and the only way they can pay it is the stuff that President Trump wants to take away. I don't think people realize that the oil infrastructure, the refining is done, can't be used. Everything just can't be used. So the reason why you're hearing about the barrels is because it can't be refined. Very difficult. You have to actually inject gasoline to be able to make it so it's refinable because it is so heavy, even heavier than Canadian crude. So I don't want to say that none of this matters. And it would be great if Folero could actually realize any of what we're talking about or marathon Pete. But I just think that it's a sideshow. The political aspects are big. The oil aspects not big because you're not going to really, other than Chevron be able to know what to do down there. Chevron State is. Remember you talked about how Chevron State they stayed and they can double their. They maybe can double their 100,000 but not much. I don't want people to get lost here. Chevron people paid up 9 on Monday and they've lost a lot of money. It's our duty to be able to say, listen, not a good trade and certainly not right.

[Carl Quintanilla]

We're dying to hear from them. But the other question would be whether or not this investment would get in the way of the capital returns that investors have gotten used to.

[Jim Cramer]

Oh, I know. And it's funny by the way, the more they do, the lower the price of oil is. It reminds me of when, when Trump first came in drill baby, drill. And it crushed the price and those were the worst stocks on the market. What are you doing?

[David Faber]

I'm just sitting here.

[Jim Cramer]

Cool. I mean why don't you give me a coffee then?

[David Faber]

Okay, I'm on.

[Carl Quintanilla]

It would be funny if he actually did Humper loafer.

[Jim Cramer]

What would you like him. No, that's okay. I. Yeah, absolutely. Because I don't really like. They don't have any skin. You can sit down.

[Carl Quintanilla]

When we come back we'll get a little bit more on the action here. All time highs at 69 55. Watch bonds get a little data today in the way of factory orders, services, ism jolts of course ADP we mentioned already. Stay with us. Gold's getting a little bit back of course after a banner year last year B of A today year end target 5K and a big piece I know Jim, you saw on Barron's. Now on track to surpass Treasuries as the biggest reserve assets of foreign.

[Jim Cramer]

Your note there this morning because I think that people are finally the governments are getting serious about deficits and realizing we only find them 1% of replacement.

[Phil LeBeau]

Of gold every year.

[Jim Cramer]

So that keeps the fact down.

[Carl Quintanilla]

Good news if you are a gold bug. Yes, and I am by the way programming note. Be sure to watch tonight's premiere of Leaders Playbook with our Julia Boorstin. It's an in depth series featuring exclusive candid interviews with America's top CEOs. Tonight, Netflix's Ted Sarandos and Shake Shack founder Danny meyer. It's a 10pm Eastern and Pacific only on CNBC we'll get stock trading with Jim next. Let's get to Jim and stop trading.

[Jim Cramer]

For stocks that are down substantially from their highs. They're doing incredibly well that are linked to technology. I come up with CrowdStrike. Here's a stock that's down 90 points from its high. I know it looks like a high multiple, but the cash flows locked in for multiple years. George, Kurt's doing a terrific job and featured at the Nvidia Kino as being the partner in cybersecurity that Jensen most respects is what I'm going to put it. And there, okay, it's a high multiple, but it's well off. And it's down from its high to the point where I think it represents.

[Carl Quintanilla]

Do you think the risk of cyber attacks is rising with these growing?

[Jim Cramer]

I mean, what you take on China when you do. When you do Venezuela, and the first thing they do is they try to get into our companies. I don't think. I mean, three times yesterday I was. I was called by a company that knew all of my medical records and knew what I needed from an operation that I had six years ago. And I tried and they said they were from the U.S. you know, U.S. entity. And it was all lies. It was something that they got from it. I'm sitting there, I'm just saying, okay, well, this is just a total fraud. Three different frauds in one day because they broke into everybody's records and people. I'm sure there are a lot of people who actually listen and buy. Endless the lies. Endless the scams. That's right.

[Carl Quintanilla]

Jim. We'll see you tonight. Look forward to Rusty Brazil.

[Jim Cramer]

Yeah, I, Rusty Brady. I was going to intel and Lip Blue, but he would say, jim, that's at the high. Why are you doing that? So I didn't.

[David Faber]

Okay. There's always more shows.

[Jim Cramer]

Yeah. And you know, to do it. Could you make it so it's a triple event.

[David Faber]

I will absolutely, happily get you some coffee.

[Jim Cramer]

Okay. But it's got to be.

[David Faber]

Apparently I may need some as well.

[Carl Quintanilla]

Well, Jim, we'll see you at 6. Mad Money, 6pm You've been listening to the Opening Bell on CNBC. Squawk on the Street.

[Jennifer]

All opinions expressed by Squawk on the street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Such opinions are based upon information Squawk on the street participants consider 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 Squawk on the street disclaimer, please visit cnbc.com squawkonthestreetdisclaimer Is.

[Julia Boorstin]

It time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals, like business management, strategic planning, and effective communication, and you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at Capella. Eduardo.