Mad Money w/ Jim Cramer 2/25/25
43:27 Share

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The rebellion against the data center continues. That's the dominant theme of this month. Don't let anyone tell you otherwise. The data center has been the single biggest investment story for months on end. Even if it's not always obvious from the average, let's say with the Dow advanced 160 points, it has to be declined 0.47%, and the Nasdaq, yes, tumbled 1.35%. This sea change, one that we are undergoing in real time, with the data center theme suddenly going from positive to negative,

It's buried within the broader indices, but it's like a living, breathing, seething animal. A snorting bull turned into a grizzly, scratching and clawing back the gains in your portfolio. How do I know this?

Aren't there more cross-currents than that? Oh, of course there are. I mean, there's the endless tariff trumpete, one that's driven stocks lower en masse. Incredibly, aside from the Dow, there is no index, not the S&P 500, not the Nasdaq, not the transports, not the Russell 2000, that's up since Inauguration Day. And some of them, like the small-cap Russell, getting killed.

It feels like we get a new tariff every day, doesn't it? Today we've got a defense of our large cap tech companies, which have been endlessly targeted by our European allies. These countries, they've used our tech companies, Amazons, Alphabets, Apples, like honeypots. Now, when it happens, our government will retaliate for a similar amount of money. No more plunder. I know these tariffs have people on edge. Consumer confidence indicators, they've just plummeted. Interest rates are sinking for fear of an economy gone soft.

The key 10-year Treasury yield is back to where it was in mid-December, when many thought we were looking at many more rate cuts than we've gotten. We have had to put rate cuts talk on hold. Now it's right back because there's a newfound paralysis. Too many things happening at once, scaring people, few of them good. I know President Trump is deeply committed to tariffs as a way to bring back money and protect the American industry, but Trump also judges his performance in part by looking at the averages. If this decline keeps gathering steam, we

We may have a presidential put because I think he'll feel compelled to do something, anything to turn the market around, but not yet. He's not going to come to the aid of a specific theme like the wonderful rise and now hideous fall of the data center.

First, some history. A little-known graphics company and gaming chip maker called NVIDIA invents a semiconductor that both enables accelerated computing and generative artificial intelligence, the kind of AI that knows when you buy a book about the Battle of Khe Sanh in Vietnam, it shows you four other books you might want to buy about that terrible war. Or when you ask Alexa for Tchaikovsky's second violin concerto like I did last night. Oh.

No, it actually put on a Procufio Symphony instead. All right, no, bots are perfect. The semiconductor becomes the backbone of electric vehicles, of robots, and most important, of the data centers themselves. Consider them barns with brains, huge warehouses full of servers. No large tech company worth its salt can afford to do without these data centers. So they spend billions upon billions upon billions of dollars, and they are stocked to the rafters with NVIDIA chips.

And then out of nowhere, some Chinese outfit finds a way to do much more with fewer expensive chips, and the whole data center world is turned asunder. Some data center builders plant seeds of doubt about the need for all this hardware capacity from NVIDIA.

Suddenly, the data center feels fragile. The tech types Amazon, Alphabet, Meta, Oracle, Microsoft, throwing Tesla have been dependent on this data center in the spin. A whole swath of industrials like Cummins for motors, Backup Constellation Energy, Vistra for nuclear power, Verde for the guts of the data center. They've all been trading together. They're linked and they're hanging in the balance. We know that what's happening is going. We know what's happening. Why? Because every member of the Magnificent Seven, save one, Apple.

are drooping because they may have spent too much money on data centers. The fact that Apple hangs in there has actually proved positive that the data center is what's on the line because Apple's the only one that hasn't spent fortunes paying NVIDIA for the white blood of the AI platform. They always figured they could just license the technology from somebody else, give them their massive user base. Yes, Apple didn't have to spend tens of billions of dollars on these warehouses full of servers, so its stock hangs in, irrespective of potential tariffs from Chinese components, which seem...

kind of, at least Taiwanese components, too. It seems like if the punitive government of China also goes after them, well, anyway, President Trump has so far been okay. He has not hurt them. But then again, they did commit to a lot of money, didn't they? But let's go back to what's in balance. Or I should say, in the crosshairs, it's not really Apple or Microsoft or Amazon or Alphabet or Meta or Tesla. It's the odd man out of the Magnificent Seven. It's NVIDIA, the most important stock in this entire stock market. NVIDIA.

NVIDIA holds the key to countless tech companies, not just those majors, but to Arista Networks, Marvell Technology, Cadence, Synopsys, so many others. Plus, NVIDIA now might be hurt by the president of the United States who wants to tighten Chinese export controls further. The most exposed group might be semiconductors, semiconductor capital equipment players, with NVIDIA being the most visible potential casualty.

Some are going so far as to say that NVIDIA holds the key to the fortress of big momentum stocks like Palantir, like Apple, and it serves now. And even Bitcoin. Can you imagine? And tomorrow evening, NVIDIA reports. So right now, I think we have two markets.

There's the market that's dependent on NVIDIA and its fellow tech titans. And then there's everything else, the drug makers, retailers, consumer products companies, even the one-scorned food stocks and the bedraggled home builders. Now, you might want to take a page from Lincoln and say that a house divided cannot stand.

That's why the selling in the NVIDIA world is so vicious. To the sellers, it can be only one victor, and they think it's not going to be the data centers. Not only that, but these sellers have equal scoring for the frothy momentum stocks. All of these ancillary data plays, like the fanciful nuclear companies that were supposed to win because the data centers are putting too much pressure on the power grid, or the quantum computing plays that are all about finding the post-NVIDIA computing play, even if it takes 20 or 30 years, not a great investing timeline.

In the end, though, I don't think things are nearly as binary as it seems.

The house is not divided against itself. 24 hours from now, we'll know if NVIDIA is selling a lot of product or if it can't because it doesn't, you can't make it fast enough. We'll know if it's possible that there's more large customers than just the tech titans. So we can stop counting those dollars. We'll know if it can avoid making chips for China entirely so that that's not a concern. We take it off the table. We'll know these things to be self-evident, including all the orders. And then after we know that, life will go on.

Consider Nvidia's earnings to be what I call a clearing event. All of the Sturm and Drang will already be done and the damage will be complete. Only then can we start thinking about tech and many of the industrials. Only then will the food stocks return to their lowly status and will. And the drug stocks be rocked with profit taking. We'll be wondering why we paid so much not for Amazon but for Procter & Gamble. So here's the bottom line.

There's no denying NVIDIA's importance. Right now, it's paramount. But I absolutely deny that it can take down the rest of the tech edifice. Frankly, it's already happened. And I bet it won't happen twice. But if it does, let me tell you what to do. Mark in Pennsylvania. Mark. Yes, Jim. Mark, what's up? How are you? I'm doing okay. How about you, buddy? I need your help. I need your help. I'm right there for you. Let's talk Ford Automotive. Should I buy, sell, or hold?

Because should I sell it all and buy Revion or Tesla? No, no, no. My Tesla actually like down here because it's a tech company. Rivian, it needs capital. Ford, no, you don't want to own Ford. I feel terrible saying that. I have a Ford, but it's it's not where you want to be. You got to be in a place where I feel confident that the earnings are going to go up or the sales are going up. And I don't feel that way with Ford. I'm sorry. I need to go to Bill and Matthews' bill.

Did he?

Monday because I knew it was a false positive. So I sold 15% of my NVIDIA, sold about 20% of my Vertiv because I felt something coming on here. I was burned out. I wrote that piece. I got up at 5 a.m. on Sunday to write Saturday, too. I was burned out. But I'm never going to let the club down. So I wrote the piece and then I rewrote the piece. And I said, man, maybe I'm too negative. No. And then I just hit the button. I hit the button and there it was.

Anyway, that's the way that's how it works. So go ahead. Jim, you're incredible. That really, that set me off thinking, and I love it because this is my fourth year as a club member and I'm loving it. Well, thank you. What I'd like to ask you about is Uber. Do you think I should pick up a position in Uber?

I like Uber very much. Now, I was there when they reported, and it was incredible. The stock went down, and I called out the people who were selling it as morons. Now, look, I think it can—look, I mean, it's a 74. Could it go back to 68? Absolutely. So, Bill, here's what we're going to do. We'll buy a little bit tomorrow, and then if it goes to 68, we'll buy a little bit more, okay? That's the game plan. Thank you for saying that about the Sunday night piece. I pour my heart out there. I'm always thinking, has anybody read it besides my daughter?

No. Regina Gilgan has said, no, the only person who reads it is Bill and CeCe. Oh, and Regina reads it. Oh, you can't beat that. I got three readers. Look, there's no denying NVIDIA's importance to the market, but I find it hard to believe it can take down the rest of the tech because, like, tech's already been taken down a lot, and I am not betting on that happening again, but if it does, we'll make money tonight. Robinhood fell alongside the market last week's sell-off despite ending 2024 as one of the tape's best performers.

Do not miss my exclusive to hear more about the stocks road ahead. And speaking of fintech, can PayPal re-battle after this post-earnings pullback? I'm going to check in with the CEO fresh off this company's investor day. And later, the only resource stock we own for the Chappell Trust, Cotera, following yesterday's earnings beat. So stay with Kramer.

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What the heck just happened to the stock of Robinhood Markets? Retail-friendly brokerage platform that I like so much. It's one of the hottest stocks in the market. It bought a great quarter two weeks ago, sending shares to a more than three-year high. But over the past week and a half, it's lost nearly 30% of its value, including another 8% decline today. Now, some of that's because momentum stocks have gone out of style. But a lot of it's because Robinhood makes a killing on crypto trading, and crypto's been rolling over. Still, you've got to be impressed about these guys.

if not stunned, about where this company has come from and where I think it can go to. I think it's got a long-term approach and understands the younger generations that stand to inherit between $84 and $86 trillion over time. So let's take a look at Vlad Tannen. He's the co-founder and chairman and CEO of Robinhood Markets. Mr. Tannen, welcome back to Mad Money. It's always glad. I'm glad to be back here. All right. Well, first, I want to congratulate you. There have been tough times. You went right through them.

You have created a beloved institution. And I know you're even speaking to regular Robin investors because that's what you do. But just tell us about the journey because it wasn't all done in fair weather. Yeah, it's been hard, you know, and I feel like we've gone through the cycle multiple times. You know, you talked to me and Beju when we were getting started before we had...

a million customers. And then I remember we came on your show when we had 10 million customers. Back then, everyone was kind of rooting for us. And then we went through a period where we had the inevitable sort of like...

negative attention. We did some things that we learned from and then things have become more positive. But now I feel like a grizzled veteran. You know, I got my beard. You should feel that way. Being public for a while. Robinhood's more than 10 years old. So I have the perspective and hopefully the wisdom of someone that's gone through ups and downs. So, you know, I wish the stock would go up every day. I'm sure we all do. But I think with

Over the long term, we've done very well, and we're just at the beginning. You sure have. Now, Vlad, one thing I have to tell you, when I meet young investors, and I speak to a great number of them, I am always saying, why are you always with Robinhood? And they always say, because it's easy. Now, easy actually means that you're designed in a way that is intuitive. You have a terrific site. You have multiple sites. You seem to have an engineer's approach to this.

And it works. Yeah, I agree with that. I mean, I'm a former engineer, mathematician. We got into this business through algorithmic trading, which is interesting. Now we're in the NICI, right? And algorithmic trading disrupted institutional. And really what Robinhood did was we brought that technology to retail in the form of zero commissions and great technology. And I think that's still what's the ethos of the company, using technology and engineering to apply technology

Apply that to financial services and people have stuck with you. Yes. Sure. There was the turmoil in the GameStop, whatever. But you've now got a new you've got a people people have been with you for some time. And you're even getting to the point where you're doing terrific deals on IRA, RIAs and IRAs. You bought an outfit trade PMR. That would be something that 10 years ago I never would have thought you would done.

Yeah, I mean, the long-term goal is for us to be the place where any customer globally can buy, sell, or hold any financial asset or conduct any financial transaction. So we started with trading, but you mentioned there's 84 to 86 trillion being handed down to younger generations. We think we can be the place where that wealth goes. And I don't think anyone's actually seriously tackling this problem with technology. No, just you.

Just you. And I've seen your site. Obviously, everyone wants to show me the site, what you're doing. I mean, just for futures, which are so hard to actually visualize. You found a way to visualize trading in futures. Yeah, I think that futures just launched a couple of months ago. It's already, you know, a business that

is growing quite nicely. Index options as well launched. That's at, you know, 15 million, north of 15 million. Your dashboard is a legend. It's incredible because, again, it's intuitive. And is that you just have engineers who know how to visualize what people want? They come to you like you met with individuals today. What do they want? I think I think it's a combination of having a few different types of people.

people that are industry experts like Steve Quirk, JB McKenzie, who really understand the active trader.

large part because they're active traders themselves. So they really, really care about these products and are passionate about it themselves. And amazing product managers, engineers, folks on the legal and compliance side, product designers. I think we have really the best at every position. Now, speaking of legal compliance, well, SEC investigation closed. Move on, right?

Yeah, I think that it's nice to not have to play as much defense. I mean, frankly, in the last administration, we're playing a lot of defense. There was an all out assault on not just crypto, but individual retail trading in general with market structure proposals, predictive data analytics, which is basically an assault on AI and financial services. So now, you know, we're fortunate to have...

you know, an administration that wants the U.S. to be number one in A.I. and financial services and crypto. How far can you stretch it, though, Vlad? I mean, prediction markets, elections, sports gambling, there's great synergy. OK. And I, by the way, since they've legalized gambling, I like to talk about DFS, Daily Fantasy, because it's portfolio management. But how far can you really go before the government says, wait, now that's too far?

Yeah, I think that's a good question. We're a markets company. Robinhood Markets, it's in our name.

I believe in prediction markets. I think prediction markets are the future of trading. They're also the future of information. So I think there's certain differences between doing that even in sports and like traditional sports books. For example, there's no line being set by the platform. Buyers and sellers are meeting. So there's price discovery. And that is actually what gives you a signal into what the actual probabilities of these events occurring are. So I think that

prediction markets are going to be a bigger and bigger thing across all events. And, you know, of course, there's lots of market participants. There's people that speculate. There's folks that are using it to hedge like any market. And I think Robinhood can conserve all of them. You know, I was concerned and told you that while so many people do options and so much do crypto, I'm afraid that there isn't staying power. But that was wrong. There is tremendous staying power. And there's big institutions now that use some of your option products.

Yeah, I mean, when you look at and we've made a lot of advances on options, we rolled out index options, which, as you probably know, has been one of the fastest growing sectors. If you want to, you know, make a if you want to make a trade and and take advantage of movements across an entire market or sector, index options and futures allow you to do that.

And I think our take on it is customers, we wanna be number one at the active trader market. Customers wanna trade these products, institutions obviously use them. And we think by and large, any assets that's available to institutions should have a path for retail to use it as well. But again, not everyone is a speculator and not everyone wants to actively trade options.

Those that do, we should have a path to allow them to do it. But of course, we have suitability checks, all sorts of requirements that you have to go through to become an office trader. Everybody wants to be percent match on their IRA. Yeah. I mean, if you think about what we're incentivizing as a platform, what's the thing that we're incentivizing to come over? It's the retirement accounts. And that's been a very successful product. So we'll actually give you a 3% match on contributions on retirement and gold accounts. And

And, you know, we've done several matches, including one where if you bring over a whole account, you get 2% on your retirement. So you're telling me if I have, let's say, a lot of stocks and money in an IRA somewhere else, and I bring it over to you, I can actually get 2% return on that money? You're doing nothing other than opening an account with it. If you have, you know, $10 million, yeah, that's $200,000 in match. You can afford that?

Well, yeah, what we've seen is we measure, obviously, this part of being an engineering company, we measure the ROI of these matches. And we've ran lots of them over time. Some of them work out for us. Some of them don't. But the ones that don't, we've stopped doing. And the ones that do, we keep doing over and over again. You have a card, the Robin Hood, the gold card. Yeah. It has many advantages. Tell us about it.

Yeah, so two things, best rewards on the market, 3% cash back on all categories and the best user experience. And I've showed it to you, you've seen it. You can create virtual cards, which allow you to, I mean, it's great for security if you don't want to share your card number,

Also, if you want to have a different card for a restaurant reservation for free trials, it gives you the power to do that. And it's our first product built for the whole family. I think that's going to be a bigger thing for us going forward. Like products that become better, the more family members you put on it. Like, why is it?

worse for you when you have your family on using the same brokerage. It's certainly not better, but I think that's a big part of this multi-generational opportunity. If Robinhood can become better for you, if your kids are on it, your spouse is on it, your parents, then, you know, when there is an inheritance event,

it's the natural choice. - Absolutely. - Right now, 70% of people fired their parents' advisor and move on to a new platform. So I think there's a huge opportunity. I think a lot of the incumbents have been sleeping on it, frankly. - Well, I have to tell you, I am so proud of you. I mean, I know that, I remember when you started and it was something that I said, "Geez, maybe this is gonna get a lot of people in and democratize." And you know what? You've succeeded more than anyone else I have met in my life in democratizing stocks. Thank you.

Well, thank you. You started it all in popularizing this. And, you know, I think we've got a long way to go. We've got to do it all over the world. And, of course, Robinhood itself is going to expand from retail to business and institutional. Not worried. I think you'll do it. Not worried at all. That's slide 10 of co-founder, chairman, CEO of Robinhood. Glad to be with him the whole darn way. Mad Money's back after the break. Every

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All right, what do we do with the stock of PayPal? Now it's got new leadership, solid game plan, might have some real staying power. Yet PayPal had been a very tough stock for us. One of my bigger mistakes from my travel trust in the old days, really painful. But now it's being resurrected. And today the company held an investor day meeting here in New York City with some big announcements. Earlier this afternoon, we got a chance to speak with Alex Chris. He's the new president and CEO of PayPal. Take a look.

All right, Alex, you just had your investing day. Big, big, big for you. But I want to ask you, I thought PayPal was dead. Why did you go to PayPal? You know, I have loved delivering for consumers and small businesses my whole career.

I started a small business earlier in my career, and I understood how difficult it was to be a small business owner, how hard it is when you're trying to make payroll and you're just desperately looking for help. And PayPal has merchants at a scale that I have never seen.

And so the opportunity to deliver for consumers, put more money in their pocket, and help small businesses be as successful as possible is a huge opportunity. And that is for your background. I mean, it's absolutely true. But this is a small business before. Because you're Intuit, you really had to specialize in that. So this is a passion for you. This really is. I've dedicated the last 20 years of my career to...

helping small businesses be as successful as possible. Okay, but PayPal, I also think is a consumer because we're not the small business side. Does the consumer remember the heyday or did he never forget it? Because I am looking for accelerated revenue growth from you after what happened today. And is the consumer going to be part as it takes two to tango? You know, what PayPal has that nobody else has is two sides of an ecosystem. Hundreds of millions, 400 million plus consumers and 40 million small businesses.

What's amazing is you put those two things together and you have to deliver for consumers. I think it's one of the things that a network effect requires is a consumer ecosystem that is passionate. We have very passionate consumers, not only for PayPal, but Venmo as well. - Well, if you have the consumers and the scale you're talking about, then you have the data. If you have the data, then you win. Are you in a position to be able to use artificial intelligence to mine that data and tell people what they should and shouldn't be doing?

We now have 80 million consumer shopper profiles, consumers that have put their data into our trust. It's their data, but they are giving us the opportunity to personalize the experience for them. Again, with two sides of the ecosystem, we can now go to a merchant and say, hey, do you want to personalize the shopping experience for these consumers that are coming in? That is a game changer. All right. So I'm a consumer. Let's say I want to take a camping trip and I don't want to call a travel agent, but I don't know enough.

What can PayPal do for me? - So we take your shopping profile and we're able to, without sharing personal details about you, give it to a merchant and allow them to personalize the experience for you. So your ability to come in, they may know now your shoe size, they may know your favorite color, they may know that you need a sleeping bag. So now when you go to their website, they can give you a merchant discount, they can make sure that you've got the right shoes and the right size already customized to your exact needs.

That is an incredible experience for you as the consumer to have a personalized experience and the merchant

is thinking about that as acquisition costs. So the discounts that they're able to give you is actually the way to convert a new user to their merchant. Well, that's blow away. And I get some things like when I use Market Express, I get points. I mean, how do I figure out what I can win with with PayPal? Well, this is all about loyalty. We want to connect merchants to consumers. And so merchants right now are putting huge amounts of dollars into merchants

customer acquisition costs, the ability to just actually put those dollars into your pocket as a loyalty, as a reward to bring you into their ecosystem connected with our shopper profile is a game changer. Okay. A lot of people feel that, wait a second, this is a domestic thing. Your kids go on it. Maybe they stay on it. Maybe they don't. This is also the great bank for the unbanked worldwide. How is that going?

You know what? We are an incredible ecosystem for peer-to-peer payments. We are an ecosystem where if you need to move money, whether it's dollars, whether it's stablecoin with our PYUSD, whether it's crypto, we can now move it across our network of hundreds of millions of users.

We actually rolled out again today the ability for you to be able to pay for your everyday purchases with your crypto. So really taking crypto and making it cryptocurrency. Buy with Bitcoin, buy with Ethereum, buy with PYUSD. Okay, so in the crypto, you say best way to do crypto, 25% crypto sellers use their balance for checkout within seven days. What does that mean?

That means if money is coming in and they're using it, whether it's Bitcoin or PYUSD, they can actually use it to check out now in tens of millions of merchants around the world. Does anyone else do that? Because if you're in a foreign country, they like Bitcoin more than they like their currency.

We this is the advantage of our two sided ecosystem. OK, now I saw that Venmo, we know doesn't make much, but you did have a line in your presentation. You intend to monetize it within a couple of years. Venmo is an incredible asset. This is used and loved by over 60 million consumers in the U.S.,

a very affluent, young demographic and one that it's just on us to be able to monetize. They have this $18 billion coming into the ecosystem every month. We need to give them the ability to use their debit card and pay with Venmo so they can shop online. But the scrum, there's a scrum. We've got Amex. We've got Apple Cash. The people who run Square or Block, whatever they're in there too. I mean, how do you win against them?

First of all, Venmo is the verb. It is the system that users are using. Second of all, we just have to make it easier. This is really more self-inflicted wounds from us. Money's coming in. We never gave them the opportunity. With Pay with Venmo and with our debit card now, we're seeing the growth. We will monetize this product.

Now, I think you raised a point because you raised it. I'm going to go there. You didn't use certain things. I mean, there were things that lay fallow. There were things that were just there. There were also things that you shouldn't have been doing that were costing you, hurting your gross margins. What's changed? What's what switches have you flipped? Well, first of all, I am incredibly proud that we've turned this company, this company into a profitable growth company again. So let's start there. Second of all, there were a number of things, especially in our go to market where we were just working in silos.

Venmo is a great example. Our Venmo team that was working very hard to try to get Pay with Venmo to work was working in a completely different organization than our PayPal team. How's that possible? We've brought it all together now. We brought it all into one go-to-market ecosystem so we can take advantage of the scale that we have.

Well, I've got to tell you that there are a lot of things about your company that I didn't know. Eighty four percent branded checkout. I didn't know that. Four hundred and thirty million active consumers. And yet I never thought of you as that company. So something is it's it's not working, I guess. Maybe it was I felt it was foul. I had no idea these numbers. Yeah.

Yeah, I think we haven't done a great job of bringing together both sides of our ecosystem. We will do that now. Okay, so what's PayPal look like three, four years from now? Look, three, four years from now, we put out some pretty ambitious goals. That's why I asked, because the targets were very aggressive. So there's a few- I'm going to hold you to those targets. And we wouldn't have put them out if we didn't have confidence. There's a number of things that I've tried to be very clear on. One, we have a brand new team.

The team is very excited and a very powerful team. Two, I've committed to transparency. Our say-do ratio, what we say and our ability to deliver is important. And third, transformation. So three years from now, we are not a payments company. We are a commerce platform that is managing the world's commerce. And when it comes to the stock, what will people be saying?

what do you think they'll be saying? Because you know you got hit in that last quarter. Yeah, look, if we deliver over 10% transaction margin growth and 20% plus non-GAAP EPS growth as we look out into the future, I think we'll be in a good place. Okay, Alex, well, look, we are going to hold it. I like the story very much. That's Alex Crisp, President and CEO of PayPal Holdings.

Last night, Kotara reported a pretty good quarter. Impressive. Strong oil and gas production, lower than expected cost. That's what really matters to this company. They have a lot of natural gas exposure, and the last few months have been fabulous for natural gas. Still, the stock actually went down today. God dang it. I think that's a big mistake. We own this one for the Chapel Trust. I like it very much. But don't take it from me. Let's check in with Tom Jordan. He's the chairman, president, and CEO of Kotara Energy. You get a better sense of the quarter. Mr. Jordan, welcome back to Mad Money.

Good afternoon, Jim. So I think that this, Tom, this market verifies your strategy. We see natural gas diverging from oil and we don't have to sit there and say, Dom, we're in the wrong stock. This is your kind of market, isn't it? Well, it's exactly why we formed Corterra, Jim, and we're very pleased at our positioning. We think we laid out a really solid 25 plan today that gives us flexibility regardless of where the puck is. And, you know, we're we're

strong that the marketplace is coming to our way, quite frankly. Now, I think that there are people, look, I'm not going to fault any group of people. They're analysts in company and they're all good people and they work really hard. But there's a moment in your call that I've been waiting for someone to say, and you said it, and I'm just going to quote you because it is so brilliant. You say, we don't give ourselves medals for the number of sticks.

We can reduce the number of wells you drill and generate higher returns, spending lower and generate the same value. That's the game. You understand that. Could you please tell our viewers why you don't count? You don't get the medals for the sticks.

Well, Jim, if that's brilliance, that may be a fairly low bar, but I'll take it. I'd like to know. Yeah, the point simply being that counting number of drilling locations is the absolute wrong metric. It's how efficiently can you extract the resource. And that's what we focus on. If we could get our entire asset base out of the ground with one well, that would be the optimum well count.

So, you know, it just counts, you know, sticks being locations. It's the wrong thing to count. At the same time, this is when your different areas in the Marcellus shine. I always forget how widespread the old Cabot was in terms of the great areas in Pennsylvania.

well pennsylvania is a wonderful place well positioned and we're really pleased to have that gas asset in our portfolio you know we got a lot we got asked a lot about that today because uh you know others have said that gas doesn't compete with oil in their portfolio um

I think today, as we look forward, we're very, very pleased to have that natural gas and we'll be delivering it to market. And there's a great chart in your fantastic deck because you are so transparent that talks about LNG, talks about export. It's right in your ballpark. Well, we're trying to maintain broad price exposure. We take some of it on long-term contract. We love to have foreign exposure through LNG. We like to have power contracts, power-based price contracts.

It's, you know, just part of portfolio management to have broad exposure to different price points. And to go back to that notion of not having to drill all over the place, but be able to drill centrally, these two acquisitions for $3.9 billion, I was concerned because that's a huge amount of money for you and you're conservative and I know you like every dollar to be spent perfectly. How are these working out?

Very well. Now, of course, we're just now integrating them, but it gives us the opportunity, Jim, in a concentrated area to really get good. I want to talk just a second, if I may, on capital efficiency. Maximum resource from minimum investment. The way you achieve capital efficiency is multifold. One, you engineer low cost. Two, you execute really well. You have low cost structure in your vendor network and your supply chain.

But it's that execution that's so key. And if you do something over and over and over and you give a great team that to do over and over, they get really good at it. And I will say, you know, if you were having open heart surgery, I would recommend maybe there's the best cardiologist in the world in some community hospital. But I'd recommend you go somewhere where they do hundreds of them a year. And that's what that acquisition does for us. It lets us put a team together.

at work and do hundreds of them a year. And we'll get really good at it. I'm very excited about it because I wanted to be a little bit more balanced. The oily part is now great. The not gas part is great. One last question. You have a chart, page 27, emission reduction efforts, flared emissions, greenhouse gas. Well, we have a president that doesn't really care about methane emissions, but you're still doing these things.

Well, we are, and look, we're a technical outfit, as you know, Jim, and our commitment to reducing emissions was never about federal or state regulations. It's a commitment to excellence.

A great operation doesn't have a lot of waste emissions. And so we found by focusing on emissions, we get better across the board in ways we didn't anticipate. So we're going to continue to drive that home with our team, and they're all in. Well, I think people have to recognize, and one of the reasons why I like the oil and gas business is people like you. You're not waiting for the government to tell you what to do. You're well ahead of that.

And it's also good business. Can't beat that. I want to thank Tom Jordan, chairman, president, CEO of Kotara Energy, my biggest resource position for my travel trust. Thank you, Tom. Great to see you. Thank you, Jim. Everybody's back in for the break. It is time. And then the lightning round is over. Are you ready? I'm going to start with Ryan in Virginia. Ryan. Jim, how's it going? First off,

I want to wish Clara, who's turning nine years old this Thursday, a happy birthday. Second, I want to hear your thoughts on Wendy's. First, Clara, happy birthday, right? Wendy's, no. You're going to sell Wendy's tomorrow and you're going to buy Texas Roadhouse because that's the one. We had them on Friday. They are monster good. We bought it for the travel trust. You're buying TXRH tomorrow. Let's go to Mark in Wisconsin. Mark.

Dr. Kramer, thank you for taking my call. Last time I talked to you about this stock, you said double down on it. The insiders are buying. Bollinger Bands are tightening up. Ticker symbol EPD, Enterprise Products. Double down on it. Let's go to Curt in Illinois. Curt. Booyah, Dr. Kramer. Oh, thank you. That same guy called me doctor. Maybe I'm like Dr. Marty or something. Okay, go ahead.

Thank you for all the things you do for us, beginning investors. Okay. And I just want to know what you think about WeRide. Oh, my God. WeRide. Oh, geez. You cut me to the quick. I don't want to. Look, I like Alibaba. That was the only Chinese stock I like, and it's been absolutely terrific. Thank you, David Tepper, for your kind words about Alibaba. You're a sweet man and a kind man and a good man. Let's go to Frank in New York. Frank. Frank.

Hey, Jim, how are you today? All right. Hey, Frank, how you been? What's going on? All right. Well, you know, I own this versus which I love. I mean, I listen to all of the data centers that are going to be built in the next two or three years. It's unbelievable. And they're sitting in the catbird seat to supply them with their technology. But Frank, we're all worried about

I'm worried about NVIDIA. If tomorrow NVIDIA pulls the rug and says things aren't that good, the vertigo goes down 10%, that's when we buy it. Let's wait until they give us the all clear or not. Either way, it's a clearing event. That's our plan. I need to go to Larry in Illinois. Larry! Mr. Kramer, thanks for taking our call. My son Cole has a question for you. It's his birthday and he's 13 years old. All right, I get that. Come on, Cole, get on here. We have Claire's 9, Cole's 13. This is a nice assemblager. What's going on?

Hi, Mr. Kramer. Thank you so much for helping us. Absolutely, buddy. What's happening? I asked my dad to join the DMV team basketball club for my birthday. We became members. Oh, man. You got to have you in the city. What's going on?

We're in the house of pain with Uranium Energy Corporation. Do you think we should buy or sell? No, I think that uranium, we all felt that there was so much business from the data centers. But you know what? You're in the one that is for long-term good. That's the one you're okay in, Cole. So I'm not going to tell you to sell it down here. Can't tell you to buy it, though. And that, but thank you for watching. And that is the conclusion of the lightning round.

Truly great companies can figure things out no matter what. They know what to do, and they don't just stand there and take a darn punch. And that's my takeaway from Home Depot's genuinely fabulous quarter this morning and the concomitant $10 rally.

First, let me say that Home Depot's story played out exactly as I thought it would. The earnings report came out at 6 a.m. today. I was furiously trying to read the release and measure it against my expectations. As I got two-thirds of the way through it, though, I realized that it was better than expected. But I also recognized that the stock might go down first because we're dealing with the early morning clowns who don't know what they're doing. Sure enough, before I could finish the release, sellers came in and they just blitzed the darn thing, taking the stock down a couple of bumps.

Once I finished the release, they were still hammering the darn stock. What the heck? If you were watching the trading like so many do, you would have thought that Home Depot screwed up, which is only natural given that we've got high mortgage rates and low housing turnover. Bad environment. But if you learn anything from this no huddle beyond the fact that Home Depot is a tremendous company, I hope you realize that we have to stop trusting the pre-market trading morons who come thundering in practically every day. I've studied Home Depot for 40 years, yet I still thought you had

at least finish the reading, reading the research, reading the report, the release. I mean, I can tell you that the sellers didn't even finish the release. And that's why they went wrong. They didn't read. They didn't know. And then they tried to make themselves right. No way. Now, how about Home Depot?

I've often said that what people get wrong about fantastic companies is the simple fact that their CEOs are not statues. They don't just stand there and take a beating. They make changes. They pivot. They all prove. They all bend. And that's what happened in this quarter. When it comes to home improvement, Home Depot has always tried to dominate the professional market. As opposed to Lowe's, which reports tomorrow, they're more of a do-it-yourself outfit.

Last June, the despot paid a pretty penny for a company called SRS Distribution, which works with contractors to help do the big jobs on pools, roofs, landscaping. Home Depot had similar services, but not concentrated ones. And professional contractors have a tremendous affinity for SRS.

When I saw the price of the tag, $18.25 billion, I blanced. Sure, it had some heft, 760 stores, to be kept separate, by the way, from Home Depot. But it was a aggressive move. I wanted them to buy back stock like they did when business fell apart during the Great Recession. They scooped up billions of dollars worth of shares back then. They knew their stock was dramatically undervalued. I was wrong.

The SRS acquisition has already boosted the numbers, driving over $1 billion in incremental sales on an annualized basis in 17 markets. Home Depot has built an even deeper moat for its professional business, protecting themselves from a resurgent lows. Plus, if those Bozo sellers had waited for the conference call, done some research, they would have heard that the actual cadence of the quarter was quite good. The all-important same-store sales growth clocked in at negative 1.7 for November,

Then positive 6.6% in December. Negative 2.0 in January. But again, December, not so good. December, great. But January, we've had bad weather. And I think it suppressed things, as I think February's weather might, too.

Now, more important, CEO Ted Decker called the bottom in housing turnover as it's at a 40-year low. He goes on to say that he's not expecting a big rebound nor significant increases in new housing starts, but the bottom of no transactions in. Now, let's put all this together. First, the company's in fabulous shape despite high mortgage rates and low housing turnover. Key metrics for Home Depot's professional sales. Anything that's just going to get better. Second, the stock.

It's been down for six straight days before today and heavily shorted. That's plain dumb. We call that a coiled spring. When you see a situation like this one, you don't worry about the stock suddenly plummeting because it's been plummeting. Home Depot is now a great situation because everything that could go wrong has gone wrong. Yet the company is still ticking while its stock set up nearly 3% today. That's the best kind of long-term situation. And now it is ready to run.

I like to say there's always a bull market somewhere. I promise I'll find it just for you right here on MadMoney. I'm Jim Cramer. 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.

You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers 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 Mad Money Disclaimer, please visit cnbc.com forward slash madmoneydisclaimer. This is the sound of my husband loving me.

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