Mad Money w/ Jim Cramer 1/8/25
Mad Money w/ Jim Cramer
Deep Dive
Why did Jim Cramer express concern about froth in the market, particularly in quantum computing stocks?
Jim Cramer highlighted the negative correlation between the hype around 'flavor of the month' stocks and their actual financial performance. He warned that quantum computing stocks, in particular, were overhyped and lacked substantial earnings or sales to justify their valuations. He cited Jensen Wong's comments, which pushed the timeline for useful quantum computing to 20 years, leading to a significant sell-off in these stocks.
What is Jim Cramer's stance on NVIDIA and its role in the AI revolution?
Jim Cramer is a strong advocate for NVIDIA, calling it the vanguard of the new industrial revolution. He believes NVIDIA's accelerated computing and AI technologies will transform industries like autonomous vehicles, healthcare, and digital factories. He emphasizes that NVIDIA's sales and earnings are real and spectacular, making it a long-term investment rather than a trading stock.
What impact did Jensen Wong's comments have on quantum computing stocks?
Jensen Wong's statement that useful quantum computing is likely 20 years away caused a significant sell-off in quantum computing stocks. Stocks like IONQ, D-Wave Quantum, and Rigetti Computing plummeted by 39%, 36%, and 43%, respectively. Wong also questioned the practical use cases for quantum computing, further undermining investor confidence.
Why does Jim Cramer believe the food and beverage industry needs to reset expectations?
Cramer argues that the food and beverage industry is in denial about the impact of GLP-1 drugs, which reduce cravings for unhealthy foods. He suggests that companies must acknowledge declining demand, cut prices, and merge to reduce costs. He also criticizes the industry for failing to adapt to changing consumer preferences and the rising popularity of healthier, value-driven options.
What is the potential impact of a TikTok ban on the stock market?
A TikTok ban could benefit other social media platforms like Meta, as advertisers would shift their budgets elsewhere. However, service providers to TikTok, such as Oracle, might suffer. The ban's outcome hinges on a Supreme Court decision, with arguments centered on First Amendment rights and national security concerns. The uncertainty has left investors cautious about the platform's future.
What is Jim Cramer's view on the recent surge in mergers and acquisitions (M&A)?
Cramer sees the recent wave of M&A activity as a positive sign, driven by expectations of a more business-friendly regulatory environment under the Trump administration. He highlights deals like Disney's acquisition of Fubo and Stryker's purchase of Inari Medical as examples of strategic moves that make business sense. He also notes that Goldman Sachs, with its strong M&A advisory business, stands to benefit from this trend.
Why does Jim Cramer recommend selling speculative stocks like Rigetti Computing?
Cramer advises selling speculative stocks like Rigetti Computing because they lack solid financial fundamentals, such as revenue and profitability. He points out that Rigetti's stock surged from $1 to $21 in a short period due to hype, only to crash after Jensen Wong's comments. He warns that such stocks are highly vulnerable to market corrections and should be treated as trades, not long-term investments.
What is the significance of the J.P. Morgan Healthcare Conference according to Jim Cramer?
Cramer considers the J.P. Morgan Healthcare Conference the most important healthcare event of the year, offering unparalleled access to industry leaders. He expects significant M&A activity and discussions on deregulation, financing, and Medicare Advantage. He also highlights the potential for innovation in areas like GLP-1 drugs and the importance of drug distributors in the healthcare system.
- Negative correlation between love for red-hot stocks and earnings
- Overheated markets driven by concepts, not earnings
- Quantum computing stocks got crushed due to overvaluation
Shownotes Transcript