Mad Money w/ Jim Cramer 12/9/24
Mad Money w/ Jim Cramer
Deep Dive
Why has the $100 billion market capitalization mark become less significant in today's market?
The buoyant market conditions, despite occasional dips, have made the $100 billion mark less exclusive, with 18 companies reaching this level in 2024.
What role did NVIDIA play in the surge of companies reaching the $100 billion market cap?
NVIDIA's 180% year-to-date growth provided a benchmark for other companies, allowing investors to justify higher valuations for stocks that performed well in 2024.
What significant gain did Applovin achieve, and why did its stock drop despite this?
Applovin saw a 907% increase in value, reaching $121 billion, but dropped 15% after not being added to the S&P 500 as expected by traders.
Why did Spotify's stock rise significantly in 2024?
Spotify's 165% year-to-date growth was driven by the market's preference for subscription models, similar to successful companies like Netflix and Amazon.
What structural change in the airline industry contributed to the surge in airline stocks?
The industry's decision to curb domestic capacity growth, especially in the second half of 2024, provided airlines with more pricing power and improved profitability.
What warning signs is Jim Cramer seeing in the current market?
Low levels of the VIX (fear gauge) and low junk bond spreads, indicating excessive complacency among investors, which could lead to a sharp market correction if risks materialize.
How did Chewy and Petco perform in their recent earnings reports, and what does it say about the pet industry?
Chewy reported strong sales but saw a sell-off due to soft guidance, while Petco beat expectations but also faced guidance concerns. Both reports suggest the humanization of pets thesis remains intact, though investors are cautious.
Why might the proposed merger between Omnicon and Interpublic Group face regulatory scrutiny?
The merger could reduce the number of major ad agencies from four to three, potentially stifling competition and innovation in the advertising industry.
- 18 companies joined the 100 billion club in 2024.
- NVIDIA's influence on market valuations.
- AppLovin's 907% windfall.
- Palantir's success in government contracts.
- Spotify's growth fueled by subscription model.
- Success of private equity firms like Apollo Global and KKR.
- Arm Holding's partnership with NVIDIA.
- Strong performance in the insurance sector (Progressive, Chubb, Marsh McLennan).
- Citigroup's unexpected entry into the club.
- Cybersecurity company Palo Alto Networks's growth.
Shownotes Transcript