Mad Money w/ Jim Cramer 02/04/25
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Man Money starts now.

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I'll do my friends. I'm just trying to make you a little money. My job is not to entertain, but to educate, to teach you. So call me at 1-800-743-7268. Tweet me at Jim Kramer. Look, people on Wall Street, you better start taking the president of the United States more seriously, or else you're going to keep losing money.

Look, you don't have to like him, but I'm begging you, listen to his words. Yep, on a day where we now gain 130 points, has been climbing 0.72%, now it's actually up 1.35%. We need to think about what's happened already in this week. Now, on Friday, after the close, the president announced substantive tariffs on Canada and Mexico, 25%. But he set in China to just 10%. Fear struck the hearts.

of many on this famous boulevard, that's because nothing this man does seems to be idle. He wanted to deal with Mexico that helped him make good on a campaign promise to stop illegal immigration, illegal fentanyl imports. He got it.

Mexico's president, Claudia Scheinbaum, must now scramble to appease Trump. Maybe something that allows us to work more closely with Mexico, maybe even in Mexico, to stop the illegal immigration, or maybe just a flat tariff that's lower than 25%. In the end, Scheinbaum's playing ball, so we'll probably get some kind of deal.

Canada. All right, we still can't figure out about what that thing's about other than hitting them up for money. They sell us 4 million barrels of oil per day, and they got no other market for their crude. Now, sometimes you just get hat. The Canadians just got hat. This is basically a mugging. I hope they can come up with something that amounts to a better deal than they're getting on their oil in the next month, but who knows? China. Okay, China.

When I say that Wall Street better start taking the president more seriously, I meant that he gave China a terrific deal, a much lower tariff than our friends in Canada. I heard all day that the Chinese are going tit for tat, but that is complete nonsense and lunacy and idiocy. They put PVH on something called the unreliable entity list, perhaps because PVH made the president's ties when he was selling the Macy's.

Aluminum made the list. No sweat. The Chinese have dropped off the face of the earth when it comes to buying our fancy medical equipment. Deer tractors. Having tried to buy a deer tractor overseas, I can tell you they're very expensive. And a taffridge is making it more expensive. Coal. Plenty of markets for coal. Liquefied natural gas. People are begging for that. Some minerals that it already has a tight leash on. Who cares?

Now, if Wall Street took Trump seriously, they'd know that China played softball with its retaliation, just like Trump played softball with that 10% tariff. I point out all this stuff because we had pure hysteria on Sunday night, and today we had glee as it is daunting on people that the president's negotiating. Sure, there are hardliners in the White House who want to hammer the Chinese, but they lost.

The president wants to make a deal that generated some money for the treasury and offers our businesses a chance to do well in China. Now, that should have been self-evident to anyone who follows the Chinese stock market and the ones that trade here. They rallied furiously. Baidu, PDD, Alibaba, so many others.

That's a sure sign that at least in China they recognize that Trump wants to do business. That's more than we seem to know here. Trump says he's in no hurry to talk to China now. That means the Chinese better be in a hurry to talk to him. Chinese take him very seriously. I personally am a hardliner on this China issue. I think that the Chinese Communist Party is either unwilling or unable to stop intellectual property theft or stop appropriating our technology for their military. Even if their leadership wants to play ball, they've made a killing from these unfair trade practices, so why would they stop?

I know Palantir's talk was abused today on his conference call. A Palantir exec said that we are at war with China and we just don't know it. No kidding. Don't we all have to presume that our phones and computers are hacked? We have to presume that TikTok has brainwashed our kids. This is not a government that can be trusted. But perhaps President Trump recognizes that China is going to do all this stuff anyway, so our country might as well cash in on him. Maybe he finds a price they must pay for their intransigence. I get the sense that if they don't play ball, that tariff's going much higher. That's the leverage he got. He can use it.

Of course, it's not just tariffs. Yesterday, the president said we're going to have a sovereign wealth fund like the Saudis. I heard a lot of snickering about that, but a lot of disparagement, a lot of laughs. Yeah, come on. To which I say, what is Wall Street thinking here? I heard universal condemnation of a bunch of the president's candidates for this cabinet. Yet the Senate Republicans all caved. They're scared to death of the guy. There are all of these organizations suing to block things. Have they looked at the makeup of the Supreme Court, for heaven's sake?

Look, you don't have to like Trump, but you've got to recognize that Congress won't stop him. And aside from some explicitly unconstitutional executive orders, of course it won't stop him either.

So I think the sovereign wealth fund passes muster. The president can issue $500 billion in 50-year bonds. All right, I sell them as MagBees, make America great bonds, and start to buy things. If he wants to buy TikTok, he'll get control of TikTok. Today, I asked Dr. Albert Borla, CEO of Pfizer, whether he'd sell the COVID vaccine to the sovereign wealth fund. Now, you're going to see his answer later in the show. But let's just say I fully expect this fund will buy things that we can't even dream could be purchased. Maybe Trump forces the Panama Canal to sell back and sell the canal. You know, Panama here, it's just...

Here's your deal. Maybe they make them a deal you can't refuse. Greenland. Greenland. Maybe we buy Greenland with this thing. Here's one. Taiwan Semi. You buy a stake in Taiwan Semi, and then the Chinese know that they can't go against Taiwan Semi. Because if they do, they go against us. It'll be a kitty. And we should expect it to be a staple of this administration. Now, I know that the president said on Friday that he doesn't care what the stock market says about his tariffs.

But that's not because he's oblivious to the market like his predecessor was. It's because the sellers don't get the plan. They are the oblivious ones. They don't get that he's trying to do something that will ultimately end up being really good for the stock market. And that's how the stock market could rally today. That's how it could recover yesterday. Now, there's another wild card out there that can't be discounted. Last night, a terrific company reported, Palantir. I'll talk about that later in the show. Elon Musk's Doge is the catalyst to identify wasteful government spending.

Palantir, working closely with Musk, will attack that waste first in defense and then I'm betting in Medicare. I am also betting that Palantir will take it upon itself to make broad changes. And it's not going to have to answer to anyone save Trump, including the legal system. The Pentagon will holler and protest, do a lot of crying, be real angry. But who are they going to appeal to? No one. They can't certainly they can't go to their frightening former allies in Congress and Medicare. Lord knows what Palantir is going to find there. Now, let me be clear about this.

I actually prefer a system of checks and balances. I like the Constitution. The founding fathers, they hit it out of the ballpark with that one. But the bottom line, I saw Hamill on Brobo, saw Jefferson on the nickel. But right now I see Trump everywhere. He's got Congress. He's got the Supreme Court. He doesn't need to worry about checks and balances, at least for another couple of years. I'm going to Richard, New York. Richard! Mr. Kramer, love your show and all that you do for us. Thank you, partner. What's up?

I've been a fan, a frequent listener for Overdecorate. So I've done very well. Thank you kindly. Oh, you're great, man. You're great. Thank you.

Thank you. Thank you very much. Anyway, I'm calling today about a stock that I carried through the last year. I carried for a couple of years and I sold it just before earnings. And then I have a balance that's not going nowhere this year. And the end of last year, it's FedEx. I don't know if I should buy more. The problem with FedEx is if you're going to be involved in the trade war, FedEx is going to be caught up in that trade war. Uh,

And I like it a lot more than UPS, and I think it's incredibly well run. But I'm just telling you that you don't buy the transports in a trade war. You've got to wait for FedEx to come down a little. Now, it is selling at 13 times earnings. If it gets 11, 12, you just have to pull the trigger. I want to go to Gary in Nevada. Gary! Hello, Jim Cramer. This is Gary Crawford from the special effects that likes your special effects soundboard. Thank you, Mr. Crawford. Thank you.

So my question is in reference to Boeing. I've been following your advice and taking a little bit off the top every time I make a little profit, and it's really helped me get advances every day. Right.

So in the process, Boeing was up yesterday and I was able to sell one share, which doesn't sound like a lot. No, it doesn't. It is a lot. It is a lot, sir. If I could get everybody to buy one share of a really good stock, I've won. I have won.

I have one, but I will tell you this. I would not be a seller of Boeing anymore. I think they'd really gotten together, and if it dipped, I'd buy that one share back and never, ever say that that's not a lot of stock. In 1984, I was told to buy one share of Berkshire Hathaway. Did I do it? No. It would have made $200,000 from $2,000. So one share amounts a great deal. I'm going to Pete, New York. Pete. Pete. Hey, how about Pete, New York? Petey. Petey!

That's a reference to a movie. Pete. Well, I'm kind of out there, man. I'm out there on the Pete issue. You know what? We're going to have to wrap it up. And, like, Petey, I mean, I'll just save that one for the movie. Look, I think it's time everyone starts taking Trump a little more seriously, at least when it comes to the stock market, because I think you're starting to miss out on a lot of money. Well, man, by the time I got Petey, I've got a triple header of post earnings exclusives. First, how can the latest tariffs affect the price of your chips and guac? Wow. Chips and guac. And I'm not talking Pepsi.

I'm speaking with the CEO of Chipotle. Then Pfizer finished the day lower following before the Bell report. I'm going to, you know what? I'm hearing how RFK Jr. could affect the pharma stock if he joins Trump's cabinet. Later, is Mattel poised position for growth in its 80th anniversary? What are they doing with the tariff? Hey, maybe they're going to raise the price of Barbie. Stay with Kramer. Kramer.

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What are we supposed to make of these numbers from Chipotle? This longtime Kramer fave turned an okay set of results after the close. They only beat earnings expectations by a penny, though, and their same-store sales were up 5.4%. Some are looking for 5.7%. So we got to ask, is this a blip? Does it really matter? Are they starting to struggle, or are things really terrific? It's such a strange moment that

But we know this. They have a great track record of generating positive transaction growth without having to cut prices because it's regarded as being such a good store. So let's take a closer look with Scott Boatwright. He's the new CEO of Chipotle, although not that new anymore, Mr. Boatwright. Welcome back to Mad Money.

Hi, Jim. Thanks for having us on this afternoon. Eager to talk about the quarter. More importantly, talk about what an incredible year we had here at Chipotle. Well, I think that we all are expecting greatness and then we get greatness. And sometimes it's difficult for you. An A student who continues to get A's is not as interesting as a D student who's getting B pluses. Why don't you tell me about the A report card you just you just had?

Yeah, thanks, Jim. You know, the year we put together, you know, what is 7.4% comp driven heavily by transaction growth of about 5.3%. What this team accomplished this past year is nothing short of remarkable. A lot of credit goes out to the 130,000 team members out in our restaurants, but really the backbone of this great organization and this leadership team really diving into the strategies that were critical to the success of the outcome of the year.

The quarter shaped up nicely at 5.4 percent. Feeling good about our performance there. Again, heavily driven by transaction growth and feel really good about the plans we have set for 2025. Well, why don't we talk about what the pace of opening is? Because you've given us a runway of a huge number of stores and you also give us a plan of average unifying of four million, which would be about the best I've ever seen. So what's going to be the roadmap?

Yeah, Jim, so we opened up 304 restaurants this past year, which is a record number for our brand. This year we'll open up between 315 and 345 new restaurants across North America.

which is an aggressive growth number, but this team has demonstrated year after year, we're able to support the additional growth year after year. And we do it in a really meaningful way with our restaurants opening up, performing at an extraordinarily high level. And you know the returns have just been incredible. New restaurants in the 60, 70% range,

Year two ROI is pretty impressive. Now, do you have enough people to man all these new stores? Do you have the great real estate they need, including Chipotle's? And do you have the workers to be able to build these stores? Yeah, it's a great question, Jim. I'll start with the construction component. Our real estate team continues to find extraordinary sites, whether that's in densely populated urban areas or some of the small town strategies that we employed a couple of years ago and came to pay huge dividends.

As you know, site selection is critical to the growth strategy for the brand. We lean into what we call site development requests, and we leverage those to understand how many restaurants are possible for the upcoming year. And we continue to outpace the goal there every year as well, Jim. As it relates to on the people side, we leaned into an AI hiring assistant opportunity.

by paradox about six months ago that has put us on better footing from a staffing perspective than we've been in the eight years I've been in the organization, pushing past numbers we thought were all-time highs just last year. And that AI assistant, what it does for us, Jim, is it allows us

to bring in new team members and onboard them in about 75 percent less time than the old traditional format, which is leading us to better quality hires and getting high quality, great people in the organization much quicker. I was going to ask you about this point two percent, whether it should matter. But I am fascinated by what you just said. Did you build this? I mean, who's what's it based on? Because this is the kind of thing that I've been waiting for some company to say to me.

Yeah, so we leveraged a partnership through Paradox. We brought them in. We talked about creating a bespoke experience for the Chipotle system. We worked in partnership when we launched a product that I'm really proud of. Now, we have dubbed our AI assistant Ava Kato, and she engages with applicants immediately when they apply for our digital systems.

And she walks them through the necessary questions and then schedules the interview for the general manager. The GM shows up at a set time per week with scheduled interviews ready to go of candidates that are goal-oriented, values-oriented, and aligned with our purpose of cultivating a better world. And away we go.

There's avocado, then there's actual avocado. And we're watching what's going on in Mexico very closely. There's just such a limited number of places to get avocado. How are you feeling about the tariffs? And is there another source that I'm not thinking of besides Mexico?

Yeah, that question is top of mind for a lot of people, as you can imagine, Jim. Here's what I'll tell you is our supply chain team has done a remarkable job over the past couple of years with vendor diversification across all ingredients, specifically avocado. We've moved into other countries of origin like Peru, Dominican Republic, as well as Colombia. And today, only about 50% of our avocados are sourced from Mexico.

Oh, OK. That's very important. I don't think most people know that. That is a terrific fact. Now, let me also understand. You do say something in your your notes about generous portions. And you talk about how primarily that because of higher uses of ingredients, we focus on ensuring consistent, generous portions, that that has maybe kind of hurt your SG&A a little bit.

But it does make the point that anyone who thinks that you're not doing big portions should just go. I mean, it's obviously, as we all know, because we all eat there. But you really solved that problem. Remember, that was like some sort of weird thing that went on in social media. You put that to rest, correct?

We did, Jim. It was a real challenge for us back at the front part of last year. And so we put a core emphasis on it because we really understand fully that's a core equity of our brand. And we think about value at Chipotle as benefit over price. And we fully understand that value for the consumer at Chipotle is grounded in high quality ingredients, in abundance, variety and speed at a price point that's still heavily discounted compared to our peer groups.

within the segment. And so portioning is a critical moment for us, and we'll continue to lean into it and give the consumer adequate portions, whether in the digital system or in restaurants. Benefit over price. That's what I've been searching for the right terms. I've been saying premium at a good price, but it's really benefit. That's terrific. And that's how you guys decided, right? I mean, it really is just a question of you offer a value at a price, but it has been miraculous that

And you think it continues with your limited time offerings and the things that you have planned for this year? We do. We have a couple of LTOs teed up on the calendar. The marketing calendar this year is just extraordinary. We have some year-over-year incremental spend, as you can imagine, going into next year's plan. I'm sorry, this year's plan. I feel really good about the marketing strategy. The LTOs, I know you've heard about.

Chipotle Honey Chicken, which will be on menus here in the near future. We're super excited about this product. It is one of the highest performing LTOs and tasks to date that we've seen at Chipotle as it relates to consumer incidents and consumer perception. When will we see that nationwide?

You know, Jim, I can't tell you the specific date. I can just nod and wink and tell you it'll be on menu soon. Well, I think you're going to nod and wink and give me a much better same store sales when that comes out because we're all waiting for it. I want to thank Scott Bortright, Chipotle CEO, CMG. Hey, Scott, thank you. And thank you for explaining that avocado issue. I think that really was a very big issue for many people. And now it's not. So great that you told us. Thank you, Jim. Excellent. We'll be back after the break.

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Why can't Pfizer get any love?

I mean, this morning, the big pharma colossus put a lot. I thought it was a pretty darn good quarter. Vox was limited to substantial sales and earnings speed. Management also reiterating their full year 2025 forecast, which originally issued in December. But after opening higher this morning, which I thought was right, the stock reversed and finished the day down over 1%. Positive because they've got a big vaccine business. It's looked like the famous vaccine skeptic, RFK Jr., will get approved as Health and Human Services Secretary. And you know what? Look, it didn't help that Merck offered 2%.

terrible guidance this morning, dragging down the entire large cap pharma cohort, even though it shouldn't have hurt Pfizer. Pfizer reported great numbers. We can't lose sight of that. Earlier today, I got a chance to sit down with Dr. Albert Borla, the chairman and CEO of Pfizer. Take a look at this.

Dr. Boylan, welcome back to Mad Money. Thank you very much. Very good to see you again. I've got to tell you, you were incredibly forthcoming when I heard you speak at the JPMorgan Health Care Conference. You started out by saying that you were dissatisfied and disappointed in how the company had done, but now you seem like that you're in much more optimistic mood. So why are you more optimistic than what you talked about for 2023?

Because in 2023, we made a mistake with the COVID forecast and that we paid dearly. But you know, the difference when you fall is not how many times you fall, it is if you can rise again. And I think this is what we try to do. We developed a plan and executed this plan meticulously well. And the Q1, we beat earnings and revenues. Q2, we beat earnings and revenues and raised. They raised the expectations. Q3, we beat and raised.

Q4, we beat and raised. So I'm very, very happy with what we were able to achieve. I also see that you have seven pivotal study starts and eight key phase three readouts that all could be significant for shareholders. Absolutely. And they are some of the very, very big products. Some are coming from Cigen. There are two I will mention. One, it is for lung cancer that already started in phase three.

in phase three studies in second line. Now we started yesterday also with breast cancer in the first line. The C-gen ADC, it is in first line cancer as well. And we have many other that we are trying to bring very quickly to pivotal studies. And yesterday, Brath Tovey, this is a first line metastatic colorectal cancer. Is that obviously a very big breakthrough that Pfizer just had?

That is an amazing data set that we have seen. We haven't disclosed the details because we are expecting to disclose them in a scientific conference. But it is stunning the improvement that we have seen in colorectal cancer, which is very difficult.

Now, I know that you are being very prudent in your de-levering. I want that. Obviously, what's CGN? You don't want to have a lot of debt. But given where your stock is, isn't it time just to say, you know what, we're going to one time just walk away from paying down debt, which we're in good shape and just go in and buy a ton of stock because the stock seems too cheap to me, Dr. Borlaug.

The stock is very cheap and it is a bargain with a dividend and there is a lot of upside for appreciation of the equity. We have delivered very well right now. Our cash positions have improved dramatically in 2024 and we were able to have also cash conversion rates way more accelerated. We achieved way higher of our expectations cash positions.

And right now we have paid almost eight billions of debt while investing 20 billions in 11 billions in R&D while returning nine and a half to shareholders through dividend. Right now we can do both. We can do BD and we can do serves by back if we want. Right now we are focusing probably on going back to business development.

where we can create, I think, higher stakeholder value. But we can do both. Fair enough. Now, you know, one that's near to me, did not have to take it today, Neurotech. It looks like it's finally developing into the blockbuster that I always hoped it could be. This is from Migrate.

And it is doing extremely well. And it is what we had said that we'll do and is exceeding our expectations and the streets expectations as the season acquisition also is exceeding expectations. So we are we are very happy with the performance of these assets. OK, well, then I come back and say, obviously, I am perturbed about where the stock is. There were two questions about the potential of Robert F. Kennedy Jr. It looks like it's going to happen becoming a

HHS. And one of the questions was a very tough one, which said that what happens if he removes liability protection? And you've got some incredible vaccines. If he removes liability protection for these, I don't know how you can afford to keep making them.

Look, RFK had said several things in the past, and he tempered his positions, I think, during the Senate hearing. And it's not a surprise to me that he's elected. I met with him several times, actually the first time President Trump introduced us, and we had these discussions. I don't think he intends to do any of these things.

And the most important it is because on liabilities, this is something that the Senate is a legislation. You cannot change it with just the decision of the administration. You need the Senate to vote a new law. But I don't think that...

issues over there. Okay, well, I mean, doctor, he did say he did at one point have a financial interest in litigation against Merck for Gardasil. That's a very, let's say, opportunistic position for something that I think you and I would say is a pretty darn good vaccine. It is pretty good damn vaccine. I agree. Okay. Now, do you see any possibility that I'm going to just throw it out there. You always you made a great COVID drug.

the president's developing a sovereign wealth fund this covid drug was remarkable everybody benefited from it would you ever say to the president you know what maybe you should buy our our covet vaccine i don't think that i want to sell it i think it is a great asset i think it is uh

related with our legacy. And by the way, the president is very proud for the development of this vaccine because it was developed during his term and it was developed during the operational wars.

Well, I got to tell you, I am mystified. I think it was an excellent quarter. I think you're doing everything you promised and more. And that's why you buy a stock. So I want to thank Dr. Albert Bourla, who's chairman and CEO of Pfizer. Sir, I'm glad to have you on post the disappointing period that you yourself admitted. Thank you very much. Great to see you.

After trading sideways for a while, can Mattel finally get its stock moving again? After a close, the big toy maker reported a terrific quarter. This was a small revenue beat paired with a monumental 15-cent earnings beat off a 20-cent basis fueled by strength in toy cars, action figures, games.

On top of that, management gave an optimistic outlook for 2025, something I find very compelling, because they just delivered their best annual earnings per share results since 2013. Mattel has slowly been improving itself over the years, paying down debt, buying a big slug of stock this quarter, growing its cash flow, and at last, I think they're going to get some credit for it.

I think it's insane that this stock sells for just over 10 times the midpoint of a 2025 earnings forecast. That makes no sense to me. But don't take it from me. Let's talk to Enon Kreis. He's the chairman and CEO of Mattel. Get a better view of the quarter. What comes next? Mr. Kreis, dynamite quarter. How's he doing?

Hi, Jim. Yeah, great to see you again. 2024 was a year of strong operational excellence with top-line growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow. And we did exactly that, achieving all three objectives well ahead of expectations.

We also grew our cash balance to $1.4 billion after repurchasing $400 million of shares. And we just announced another $600 million of share repurchases, which we are targeting for this year. Looking into 2025, we plan to grow both top and bottom line. And this includes the tariffs that have just been announced. All right. So let's go over the tariffs for a second.

I had thought that given where you make things that this could really bang you, but I barely even saw, I mean, maybe tell me, but I barely even saw any difference even after the tariffs. How are you able to do that?

Well, our guidance includes the anticipated impact of the new U.S. tariffs on China, Mexico, and Canada based on what we know as of today. Right. As well as the mitigating actions we plan to take, including leveraging the strength of our supply chain and potential pricing. And, you know, we've done a really good job strengthening our supply chain over the course of the years since 2018.

creating a very well diversified and balanced supply chain, generating savings and diversified across seven different countries where we make our product. Okay, now I am curious. You've got, you had a couple good movies in this one. We had Wicked, we had Moana, but you've got Masters of the Universe coming up, Hot Wheels, who knows, but

It looks like you're going to have what you first told me you would have, which is that there's going to be something after something after something. There's not going to be just one and then nothing for a long time. Can you keep this up for a long time? Every every every other quarter, say, do something big.

Yeah, we have great momentum in our entertainment strategy. We currently have two movies in production, Masters of the Universe and Matchbox currently in production. And this is not including the 14 other movies we are developing right now with major studios that were already announced and more to come. How about Glendale? When are we going to be able to go to a theme park?

This is also progressing well. It's launching this year. It's slightly delayed because the project is now larger and more ambitious. But the goal is to continue to expand our entertainment offering in addition to the great progress we're making within the toy aisle. This is really about leveraging the strength of our brands across different categories, especially mobile games, which is another big thing.

an important ambition for us in 2025. Well, I'm discouraged about this because you haven't invited us.

Don't worry, Jim. You know you would be invited. That's what I want to hear. Now, I have in my hand something very exciting. A lot of people love Uno. I mean, Uno is incredible. I have Uno Elite, and I've got an Eagle, and I've got, well, I think I've got Hertz, and I've got Kelsey. How well is this selling? Because I see something like this, and it's just so cool. I'm holding it up, and I have to believe that this stuff is hard to keep in stores.

You know, Uno achieved its highest year on record and the best quarter ever. It's the number one in the games super category overall. And it's really driven by so much innovation. I know you love Uno, but it really is so. It speaks to culture. It resonates across the world with so many fans. And this is only growing and getting stronger. And expect more innovation and cultural relevance from Uno. Now, I...

There's an oddity to it. I mean, there actually are a lot of athletes who play UNO. I mean, when you're in a locker room or you're on a field, and I've been there, UNO seems to have captivated a lot of interest of actually professional athletes. Is that just me looking at it anecdotally or is it true?

No, you're absolutely right. There's a whole subculture of fans that love Uno and have their own iteration of the game. And this is what is so unique and special about this brand, because it speaks to culture. It's current. It's relevant. And this is what we do so well as a company in terms of infusing brand purpose and cultural relevance

And taking brands that are timeless and making them timely and connecting with fans at an emotional level all over the world. Well, I want people to understand that when you reported that last quarter, you thought it was really good. You told me you're going to start buying back a lot of stock. And you did just that. And you got more firepower. You said, listen, we're not going to get any sort of reaction or encouragement from the crowd. We'll just buy it ourselves. You bought a ton of stock, didn't you?

That's right, $400 million of share repurchase in 2024, another $600 million of share repurchase targeted in 2025. And with that, between these two years, we'll fully utilize a total of $1 billion of authorized share repurchases. Again, just inside two years. So, we believe the stock is undervalued. And we're putting our money where our mouth is in terms of buying our own stock.

at what we believe is an undervalued price. And of course, we will continue to grow the business, invest where we see organic opportunities, but given the amount of cash that we have, we're also using some of it to buy back shares. - All right, well look, I'm gonna see you in Glendale and congratulations on just doing everything that you said you would do and more. Inan Krajz is the chairman and CEO of Mattel. I'm so happy for you, it's really terrific.

Thank you. Absolutely. Everybody's back after the break. It is time for some of the Light Round. I just want to say, my staff prepares the equipment. Plan this out. And then the lightning round is over. Are you ready, Steve? Let's start with Ian in Florida. Ian. Hey, Booyah Jim. How you doing? I am doing well, Ian. How you doing?

I'm doing great, Jim. Thank you. I'm a third-time caller, investing club member, of course. Very happy. Thank you. Oh, man, that's great. Thank you. You guys do a great job. Thank you, Jeff, Mark, Zeb, FEMA. We got a good piece of Google coming up right in a moment. What's happening?

So, Jim, I got a little, I got what I'm looking at that I'm a little confused about. It's beaten down from its all-time highs of, I think, 509. So it's trading around 270 right now. Good earnings. Most analysts have it like around 300, 350. But their CFO is leaving now, too, which kind of threw a wrench into it as well. And what stock is this?

This is MongoDB. Oh, yeah. I remember when the CFI was on that conference call. It was a bummer. But I will say this, OK? You'll be catching it at the right time. I think the analysts are all starting to upgrade the enterprise software again. I think it's worth a stab. I really do. But it's a trade. It's not an investment. Let's go to Nick in Ohio. Nick.

Kramer, love the show. Thank you for taking my call. Oh, thank you, buddy. Thank you. Hey, I'd like to thank my friend, Air Non, for telling me about Mad Money. Jim, you're awesome.

Oh, man. The kid stays in the picture. What's up? I'm a novice investor starting a portfolio. I'm curious. What are your thoughts on TEM, Tempest, AI? Really want to start with Tempest? I would start with Striker. Let's go a little higher end. I think Striker is the better one. If you want AI, then you go with Medtronic. Both are better than the one you picked. No offense to yours, but I'd like mine more. Let's go to Will in Florida. Will.

Jim, good to hear your voice again. It's been a minute. How are you, sir? I am doing well. Thank you for asking. How about you? Not too bad. Obviously, crypto is the play. Digital or paper is obviously a tricky thing. Coinbase. Right.

Listen, sunshine, just go buy coins. Just go buy the Bitcoin. What do we do with the Coinbase? We don't want the Coinbase. We want the Bitcoin. Because that could be, by the way, we make that special petroleum reserve slash Bitcoin reserve. That'll do better than Coinbase. I need to go to Jim in for a gym. Give me chill. A big shiny Naples portaboo-ya to ya. And why not? I love Naples. I mean, it's kind of like Naples, you know? I mean, Naples, yeah, whatever. What's up?

First of all, I'd like to thank you and your staff for all the years of help you've given me. I can't tell you enough how much it's been. The staff is unbelievable. Everyone's been together for 47 years. It's really incredible. We're like a dynasty. What's going on? My question is on a pharmaceutical company that I got at the spin-off years ago. There's a spin-off of Abbott's.

And they made $20 billion in acquisitions in 2024. You always taught me with Bristol Myers, a dividend is important. This company, AbbVie, has been in my portfolio. Oh, AbbVie is just a gem. And they really started to do well when Botox from people who were taking GLP-GAS1s, they bought a company with something that failed and no one even cared when it had to do with brain work, AbbVie.

AbbVie is a winner. I can't believe the stock dropped so much. I think AbbVie is a buy. I'm watching some of my staff walk by right now. They're like catching my eye. I don't know how it's done. It's an amazing thing. Okay, let's go to Jake in New York. Jake.

Happy Tuesday, Jim. Booyah. Yeah, Tuesday's just a really fabulous day. Thank you for even reminding me. Yeah, thank you for that. Congrats on the bird, too. Congrats. Well, we got to go all the way. I was telling that to Howie Roseman today. We're not done. Howie says, we're not done. That's what he always tells me. We're not done. So we're not done. Okay.

That's right, too. And I know you're not a big 50 times sales kind of guy. No, it's not my thing. It's not my thing. So no SoundHound. But what about CRNC, Sarence? Now, Sarence actually has some game. They have that good partnership.

Let's go with Sars. You know why? I'll tell you why. Because it's down huge from 27 down to 12. I think you've got a real interesting level. Let's pull the trigger. I'm not done. I'm going to go to Erwin in New York. Erwin. Hey, hi, Jim. How are you? It's been a while. How are you feeling? Yeah, it's been too long, Erwin. What's going on? My son met you in a barbershop a while back. He said you're a very cool guy. Was I nice? You were wonderful. Because I went over there with Eddie. We love Eddie.

Eddie's terrific. Eddie should offer a shoeshine business, too. He crushed it. I should offer it. Anyway, go ahead. I've been watching this box for a while now. It's been going up, bucking the trends. It's continually going up for the last almost a year I've been watching it. Whoa, okay. Now they're going into those diet shots. They already have a strong customer base.

And I'm hoping, I want your opinion on it. The name of the company is Hims and Hers. Okay, Hims and Hers. Listen to me and listen to me good. And your son should listen too. And he ought to get one and a half on his cut instead of that buzz cut he does. Here's what happens. This stock is a short squeeze. And as long as people are short it, it's going to go higher. And the moment it's not, it's going to go lower. That's too hard for me to call. So I'm going to go to Eddie right now and get myself a buzz cut and it's good to talk to you. And that, ladies and gentlemen, is the conclusion of the

the lightning round. This is real important. How much should you be willing to pay for a company rapidly accelerating revenue growth that's taking share, taking names? The answer, looking at the action in the stock of Palantir, you can pay any price you want because buyers are willing to take this thing to the stratosphere. That's certainly what the stocks say in today's stunning 24% gain. Now, Palantir was worth $37 billion a year ago. Now it's worth $236 billion.

I've never seen anything like this move. This stock was the best performing S&P 500 last year by a mile. What's happening here? Now, Palantir is using artificial intelligence like everybody else, but this time they're using it to change our companies to business. As soon as work begins, the savings start and they're unbelievably bountiful. That's how their U.S. commercial revenue grew an astounding 64% year over year, 20% length quarter. Palantir's revenue growth accelerated for the sixth quarter in a row. I know no other company in the world is capable of doing that.

As true believer, Wedbush analyst, Dan Ives said, Palantir quote is playing chess in an AI arms race while others are playing checkers end quote. They're doing it in different ways. A simply out ontology, not in the philosophical sense, but in how companies derive meaning from their data. In short, Palantir is ethereal in nature. We can't, sometimes we can't really figure out what it does. We just know it doesn't better than anyone else. Now Palantir is the brainchild of CEO, Alex Karp, outspoken genius, doesn't suffer fools. Clearly read the biography. Kind of interesting. In fact,

he trashes them whenever they block this company from what he sees as its messianic tasks. Karp's got a gift for showmanship. He starts his comments by saying, welcome to our pound-year revolution, otherwise known as our earnings call. Then Karp backs it up with, backs up that kind of bluster with real stuff. Real stuff about how could explain why this stock trades at incredible price, price earnings multiples.

nearly 200 times this year's earnings estimates. He says the best way to value the company is to judge it the same way we judge normal enterprise software companies. And that's by this thing called the rule of 40. That's where you add the revenue growth rate to the profit margin. You get a number north of 40. You're dealing with a good business. Palletier gets you to 81. Huh?

That's astonishing. As Karp says, quote, they may have to redo the rule because when you do twice the rule, maybe the rule isn't fair to other companies. End quote. Yes, Palantir does a ton of commercial business, but its most poignant work is with the Pentagon. They're trying to reinvent the entire procurement process. Listen to this, quote, we believe we are making America more lethal.

making our adversaries increasingly afraid of acting against the interests of America, especially Americans, end quote. He goes on to say, quote, and we are proud of our moral stance and we are very long on the U.S. and what's happening and what will happen in the future, end quote. Boy, that was fantastic. Everything about this call is meaningful. Shyam Sankar, another pound to accept.

one whom I really like and I think actually get along with, attacks China's supplier, Fendel. He calls their Belt and Road Initiative China's chief foreign policy. Nothing more than indentured servitude for other countries that agree to sign up for it. I say bravo.

Palantir's working closely with Doge, yes, Elon Musk, to find ways for the government to become more efficient. Sancar has railed against the concentration of arms merchants saying it's got to change. I think Palantir working closely with the Pentagon will change it. And I'd be very concerned if I worked in General Dynamics, Lockheed Martin, Northrop Grumman. Yes, Musk and Palantir can be that powerful.

How did stock break out from the universe of equities? A couple of reasons. First, car plays the retail crowd. Second, Wall Street can't figure out how to value it other than to say it's overvalued. There are numerous sales from research houses on the stock. I think that today had a lot to do with Morgan Stanley capitulating. They upgraded from a sell to a hold. New price target of 95 have been 60. Of course, the stock's at 103 and change. Finally, it's heavily shorted. The shorts are now frantically buying back the stock to close out the position and stop the bleeding. I call this one GameStop with a brain.

I believe in this company. I think Palantir is the first company to truly figure out artificial intelligence and how to make our nation and its companies stronger, our warfighters stronger. My highest compliment? Even after I predicted a double when the stock was 50, I think you can go higher, maybe even much higher. Yes, Palantir is that special. It is that outstanding. And as long as Wall Street's trying to fight it, I think the stock's like you got a lot more upside. Like I said, there's always a bull market somewhere. Prime Time is just for you right here on MidMoney. I'm Duke Kramer. See you tomorrow.

All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

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