Mad Money w/ Jim Cramer 4/1/25
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Hey, I'm Kramer. Welcome to MadMoney. Welcome to Kramerica. Like my friends, I'm just trying to make you a little extra money. My job is not just to entertain, but explain how days like today can happen. So call me, 1-800-743-CBC. If we beat Jim Kramer. People are getting tired. They're getting exhausted. At this point, they don't really care about President Trump's tariffs, except they know tariffs raise prices. And the last thing anybody wants is higher prices.

Americans are worn out. All we can think is how the heck did everything get so expensive in this country? It's worrying people to the point where every day we expect things to go up in price still, except for their stocks, of course. The president seems to be mandating higher prices in the supermarket and lower prices in the stock market. When people voted for Trump, I'm actually pretty sure that they were hoping to be the other way around.

And today we finally got a sense of how bad things can be, courtesy of The Washington Post. And they do not paint a pretty picture. That's one reason why we had another mixed session. Dow lost 12 points today, while the S&P gained 0.38 percent. The Nasdaq jumped 0.87 percent right ahead of Liberation Day. Now, as someone who's been a huge critic of unrestrained free trade,

I am very sympathetic to what President Trump is trying to accomplish with these tariffs. Every other country on earth tries to protect its own domestic industries except America, which has spent decades letting foreign competitors steamroll our guys in exchange for cheaper stuff.

President Trump is justifiably furious about this. He wants to do something about it. But solving the problem is going to hurt. We don't know how much our prices will go up for just about everything. But we do know those tariffs will be used as an excuse to raise prices across the board. It's been very hard to get a sense of the overall damage. Today, though, we caught a break.

The Washington Post says he's two dynamite reporters, Jeff Stein and David Lynch, who traced out the worst case scenario in a clued in scoop headline, quote, Trump aides draft tariff plans as some experts warn of economic damage, end quote. They explained that the president prepared to propose tariffs of about 20 percent on most imports. Yep. Almost everything. Holy cow.

Speaking of someone who's not a fan of free trade, I have to be honest here. A 20% across-the-board tariff on almost all imports, that would be horrendous for the economy. That's a 20% increase on everything we buy from overseas, and we import a huge amount of foreign goods in America. And those goods are cheap because that's the deal. There's plenty of competition from these companies, but with the exception of the auto industry and those that contribute to it, mainly steel, it doesn't matter anymore.

The truth is the jobs that are meant to be protected by tariffs were automated out of existence a long time ago. You're simply not going to bring back those fancy, gorgeous rolls of gift wrap paper that my father used to sell because China wiped out all the American plants that he worked for years ago. In fairness, he loved doing business with the Chinese, always said they were more accommodating than the Americans. But China subsidized those companies so they could wipe out our companies. And our government let it happen.

Our country has idle paper mills in so many of the small towns that President Trump worried about. It's painful to ask, what was in that big empty building? Because it's invariably someone my father worked for.

Now, Trump wants to reverse that, but we don't have the capacity to make this stuff anymore. And if you want to buy American to avoid the tariffs, you're going to have to pay through the nose to do it. There are five problems with this whole discussion that we've been hurting the stock market. First, the tariffs aren't protecting us from anything because we barely make anything anymore. The horses left the barn ages ago. Ford and GM will be able to make more money by raising prices. But who does that help besides their shareholders and union members? What's good for General Motors is not necessarily good for America anymore.

All people know is that cars will be more expensive. They don't care about who makes them. We're a service economy these days, and services are untouched. The factory towns where the president stumped them one day barely exist anymore. Conceivably, some foreign company may move a plant there, but it's more than likely that there's full employment in those towns because most working-age people moved away a long time ago. They don't have enough people to handle all the new jobs that might be coming. Number two, second problem. Let's call it history.

One of the unfortunate aspects of history is it can be Googled. For example, unless you're currently taking American history in high school, you might not remember Smoot-Hawley and what a debacle that was. The worst set of tariffs in American history, approximately caused the Great Depression. But when I mention it, I know you can Google it. And it sounds a lot like what President Trump's rolling out tomorrow. If these non-reciprocal meat-axe tariffs that The Washington Post talks about get enacted,

The blanket universal tariff is a disaster for the consumer. We know that. Google it. But we've been adjusting to it. That's what we need to see, I guess. I don't know. We're all so exhausted and unliberated. There's a sense to, let's say, sense of relief to simply know how bad it could be ahead of time. That's one of the reasons why I thought the market could rally today.

Third problem, we have no idea how anything's going to be collected. Nothing knows. We don't know. It's catch as catch can. Look, it's got people worried, too. Traditionally, Immigration and Customs Enforcement collects tariffs, but right now the agency's fully focused on the immigration side. We got this Fosforo, Mexico, Mescal waiting at the border. Let me know what to do with it, please. I wish the White House were more serious about making the tariffs work. Our country's been crushed by foreign imports that are typically made by cheap labor, often subsidized so they destroy our jobs.

but the jobs are gone. We had almost a million seamstresses in this country four decades ago. Now we have almost none. They aren't bringing back those jobs. Sure, some companies thought they'd be buying immunity by building new factories, but there's nothing on paper that suggests that the president will spare them. Is there really no sanctuary? Fourth, I've got real beef with many of our trading partners, but what on earth did the Canadians do wrong?

They weren't part of that fentanyl trade. Everyone knows that, but they're all afraid to say it. Their currency is so low, it's a fabulous place to do business. North America's energy independent in part because Canada's crude oil mixed in with our own. Until a few months ago, everybody liked Canada. Let's hope they don't retaliate with lumber or else housing prices will go up as much as auto prices. Ryan Reynolds is a great guy.

Finally, five, most Americans are worried about inflation, not tariffs. That's what got Trump elected, for heaven's sake. As much as I rail against the devil's bargain that gave the country the cheap stuff at the cost of domestic jobs, cheap stuff is what America wanted. I didn't want it. They wanted it. I wanted my job. Dad had a good job. Sure, voters also wanted an angry president, but they wanted him to direct that anger at retailers and their suppliers who refused to roll back prices while turning on the charm toward those who gave us lower prices because we liked them.

It's a real shame that the president read the room wrong. People have spent the last five years hating anyone who raised prices on us. And now the White House wants to mandate a 20% price increase on all our stuff, our imports?

Here's the bottom line. When the book is written on this moment, I think we'll question what we were liberated from on Liberation Day. Again, I think Trump is totally justified in cracking down on our trading partners. But that doesn't mean it will be good for the economy. Just look up the last president who pushed through a big round of tariffs. His name was Herbert Hoover. Google it. Lori in New Jersey. Lori.

Booyah, Jim. My question is, my question is, American Express, do I hold and buy more now? Yes, you do, because Steve Squeri is incredible. I think it's one of the great franchises of all time. And I've studied it 150 years. I think these guys, this is one of America's great companies. Michael in Tennessee, Michael.

Jim, happy Liberation Day. Well, let's hope we get liberated. I like being liberated. I've been liberated a bunch of things in my life. Not bad. Let's go with Trump, baby. Yeah, Jim, with the potential economic slowdown and the new tariffs on the horizon, how do you see these factors impacting this company and the overall growth strategy?

The company is Amazon. Okay, here's my thinking. I think that the ones who can survive are the strongest and the biggest, and that's what it's coming to. This is Amazon. It's from 242 down to 192. What can I say other than John in my home state of New Jersey? John!

Hey, Jim. Long time fan of the show here. Thank you. I was just wondering, I just had a question about Google. You know, I'm curious, why isn't Google a buy considering, you know, one of the most important companies? Okay, that's a good question. And I'm, I, I,

I've left Google. Now, I didn't leave it at the right price. I know that. But I left it because I don't use Google other than for like the most simple historical because there's other ones that, you know, I wouldn't go to, I won't go to Grok to find out whether Hoover was president. I'll still use Google for that. But I just find myself using so many other things that I know I can't be alone. And that's what I worry about. I know YouTube's doing well, though.

Look, when the book is written on this moment in time, I think we might question what exactly we were liberated from on Liberation Day.

So stay with Kramer.

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At this point, I think it's worth looking over the stocks that have come down hard in the past couple of months. Take GoDaddy. That's the Internet domain registry and web hosting company that's become a major small business facilitator. Stock had a surprise breakout last year, rallying more than 85 percent after years of sideways trading. That's important because they have this terrific new AI-powered offering that we've got to talk about. It helps small enterprises supercharge the process of setting up and scaling a small business. They can never do it without GoDaddy.

Now, this stock's pulled back hard since mid-February, hardly alone. And today they were in New York at the New York Stock Exchange to celebrate the 10th anniversary of their IPO. If you're watching Squawk on the Street this morning, you might have noticed my old friend, GoDaddy spokesman, Walt McGoggins, joining the show. He came right up on our stage. I know he's having a breakout moment, but for me, he'll always be...

Shane in the shield. I think it's a great opportunity to check back at GoDaddy, try to figure out whether we shouldn't just be diving right into the stock. And let's go to Oman Bhutani. And Oman's the CEO of GoDaddy. Get better read. Mr. Bhutani, welcome back. Congratulations.

Congratulations on your 10. I'm so excited to be here. Thank you for having me. I don't know if people realize, we were playing with it, that you have a way to be able to make it so that it's artificial intelligence as just part of being part of the GoDaddy family. Yeah, I think, you know, what we want is our customers to start with a domain name and that arrow, our AI, you know, tool does a ton of stuff for them automatically. Like, why should a

You know, a customer who wants to sell jewelry have to figure out all these things, like how to build a logo, how to build a website, how to send social posts. Aero does that for them. You know, within minutes, it's done all of that. It even creates a pay link so they can take payments within 60 seconds. Now, otherwise, let's say you're someone who has a great idea for business, but they don't know how to do that. Why?

What would have happened to that business? Maybe never get off the ground? Yeah, you'd be surprised how many of our customers, they need us to tell them that they can do it. You know, small micro businesses. I use you only, and I've started so many businesses. I told my daughter the other day, she said, what do I do? I said, I don't know anybody but Godad.

Yeah. You, you know, they need the reinforcement. They need the tool set. And if they have to create that content, if they have to do every step themselves, that's tough. They're going to delay. It's not going to happen. Failure rate is going to be higher and we're in the business of making them successful. Okay. Now we started out, uh,

Walton Goggins is a very old friend of mine, a great actor. White Lotus, you may know him now, but he's been fantastic for a while. He's got another, he's got a satellite and you can go to his site and that's powered by you. That's right. GogginsGoggles.com and he's got a great business. It's a fantastic idea. You know, he wanted goggles that he could sort of wear on the ski slope and just wear having a drink after.

and so he created this concept and we're happy to partner with him and support him and he's using aero for everything for his social posts for his logo for his website and that's it's just fantastic to see somebody that culturally really matches with us you know he's he's got that energy that authentic spirit and that's our company that's our culture we we love him oh yeah i think he's a great spokesperson now

I mentioned earlier that the stock had come down. I noticed that you guys are pretty darn active at repurchasing stock in 10 years. Well, you know, just since January 2022, you bought back 23 percent of the company. That's right. You know, we're committed to GoDaddy. We believe in the company. We have over 20 million customers. We know that we have so much more to do. And

And we have done a ton of share repurchases. Like you said, we bought back 23 of the company in the last five years. I've been here for five and a half years. The company is moving at a faster rate than ever before. We're innovating. We're building new products. And our customers continue to love us just like they've loved us all this time. Well, OK. So let me ask you one question.

A lot of people are worried about business, and there's a little downbeat thing going on. But then there's another whole group of people who just can't wait to be able to get into their own business. They recognize they've kind of got one foot out the door. They're ready, and they're taking action. They're not frozen. No, not at all. Yeah, I think – look –

The lifeblood of our economy is people starting their own businesses. It's small businesses. And the ideas are there, and now technology can help them do it, right? It used to be that even if you've got an idea, it's too hard to get started. It's too hard to stay in business. But with tools like GoDaddy Arrow, you can do it. We tell them all the time. The customers call us, and one of the things they want to hear from us is, it's okay. You can do this. Others have done it. Don't worry about the bad days. Let's focus on the good days. We can get this done.

Now, one of the things I also like, you used to discount really heavily, which made me think, geez, maybe you're not doing that well. But it was actually just optics. But you have, after the customer account dropped, you have, what, 20.5 million people? Yeah, we have 20.5 million customers. And we have, you know, divested a few businesses, so there's a little headwind on our customer base. But we've continued to focus on higher value customer. What that means is that we actually don't do that deep distance.

accounting that we used to do. We're looking for high intent customers because, you know, we're not just selling domains. We have a whole suite of products. We do logos, we do websites, we do email, we do social posting, marketing tools. So we want customers who want to use those products. And that's a little bit different customer than just the customer who wants domain name.

Okay, so I'm Walton. I've got an idea. What do I do? How do I do it? I go to the site. Tell me the process of getting up to speed. The best way to start is to go to GoDaddy.com and let Arrow help you find a domain name because your domain name becomes part of your branding. Let Arrow find your domain name. Yes. You don't need to know that you want to name it Goggins Glasses or Walter Goggins Goggle Glasses. You type in and say, this is the type of business I want to start. You just describe it in English language.

and Aero finds 10, 15 great names. Are you backed by NVIDIA? I mean, who do you have there? Yeah, we actually work with all of the AI partners. You do? Yes, we work with all the big companies and we optimize their models to produce the best domain names. And actually, we...

being the world's largest domain registrar, we have the best model for domain names. Our internal models are fantastic. Do you think that you've helped create more businesses than anybody else in the world? Well, even if I don't know that for certain, I absolutely think it.

There's no doubt about it. That's an amazing honor. You know that, sir. I think we have 20 million customers, but we have been around 27, 28 years. So can you imagine the hundreds of millions of folks that we have helped since being founded as a company? Well, I can tell you as someone who never was but then became a serial entrepreneur, I don't know whether I would have been as fortunate if it weren't for you because I didn't have that skill set. I had other skill sets, but I didn't have that.

And because of you, I was able to find someone who said, listen, just put this in. I've got to have this thing going. And that's done. I've done it five times. Just put this in. I've got to get it going. But I didn't know how sophisticated you really are. Yeah, well, I'm really happy to hear that. And our goal continues to be bring the best tools, make them really simple, and combine it with the human expertise. You can still call GoDaddy and get the best service on the planet. Well, I know. And anybody who's had a problem, the customer service here.

is extraordinary. Aman Bhutani is the CEO of GoDaddy and very proud that you're on the show. Congratulations on ringing the bell. Thank you for having me. Thank you so much. Terrific. Everybody's back after the break. Coming up, can software companies turn things around? Kramer's breaking down why some of the biggest names in tech are seeing major declines and which ones to stick with in the long run. Next.

Under Biden, Americans' cost of living skyrocketed. Food, housing, auto insurance. Lawsuit abuse is a big reason everything's more expensive today. Frivolous lawsuits cost working Americans over $4,000 a year in hidden taxes. President Trump understands the problem. That's why he supports loser pays legislation to stop lawsuit abuse and put thousands back in the pockets of hardworking Americans.

It's time to make America affordable again. It's time to support the President's plan.

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EY, shape the future with confidence. You know what this market's real problem is? Among other things, it lacks good leadership. Last year, we were led by the Magnificent Seven, all sorts of red hot tech stocks. But this year, well, we've lost those groups one by one by one. And so far, we really don't have much to replace them. Let me take enterprise software. That was the hot area for many years. Last night, I mentioned this cohort has just simply fallen apart. You know, but that's not enough. I want to dig down into what's happened here.

Now, the damage here is just immense. Adobe, what a great company. Its stock is down almost 35% from its high set last year. Oracle and Salesforce peaked back in December. They're now off almost 30% from their highs. ServiceNow, that's down 32% from its peak in January. I can never remember that kind of decline. Those are higher quality operators.

Of course, some of the pain, the house of pain, is because the whole market's down and tech's been particularly hard hit. But even compared to the rest of the NASDAQ, these enterprise software plays, they've turned real ugly. Now, it doesn't help that these stocks tend to have high valuations to begin with, meaning they're the first ones to get hit in a fear-driven market-wide sell-off.

At the same time, enterprise software has some cyclicality to it. The business is hostage to the broader economy. And lately, you know that investors have gotten very worried about the impact of tariffs and consumer spending slowdown. It's easy to imagine that eventually translating into business, cutting their information technology budgets, or at least, let's say, slowing some of their tech spending. That's what I think is behind a lot of the worries about NVIDIA.

But there's more to it than that. For starters, fourth quarter earnings season didn't really go exactly as I was hoping for the enterprise software cohort. Most managed reports, solid numbers. But in many cases, given these really high multiples, well, the results were paired with cautious guidance. That's not good.

And that was what happened to my fave in the group, Salesforce, which reported a very solid quarter, but then gave not good, some say grim, guidance for both the current quarter and the full year. The stock fell over 4% response. You know what? It hasn't recovered since then, much to my chagrin.

Now, late last year, a lot of us were excited that many of these enterprise software outfits had rolled out new generative AI tools. They were so excited. For Salesforce, they launched this thing called AgentForce. I know you've probably seen the Matthew McConaughey ads. It's a platform, and it helps their customers create autonomous AI agents to help with sales and customer service. They've even racked up some big contract wins for this thing. But it's still very early, and it's not yet large enough to really move the needle.

While I'm on the subject of AI, there's another more amorphous concern that the software industry is facing, the possibility of new AI-powered competition.

Take Adobe, which has come up with a few AI tools of its own, headlined by Adobe Firefly, which I've been on and it's a Lamborghini. Wow. Family of generative AI models that allow users to create photos and videos with simple text prompts. It's really impressive technology. Problem is, open AI can also do these things, too. So is Adobe being hurt or helped?

By AI. It's really hard to say. Plus, don't forget the generative AI models have proven they can do a handful of things well. And one of these things is writing software. For now, that means these companies can basically get away with hiring fewer software engineers to produce the same amount of code.

But it also means that maybe someday companies could just use AI to whip up entire software applications on their own. Software comparable to what they previously would have paid a lot of money to the heavy hitters in the industry. To be fair, I haven't heard many enterprise software executives worry about this yet, but it could be a long term existential threat for the industry. Finally, a new worry has popped up in the last two months, and that's President Trump's assumed office concerns.

lucrative federal government contracts that might be canceled or downsized by Elon Musk and the Doge boys. Now, this started to emerge as a threat to the early days of Trump's second term because one of the first forms of waste that the Doge team started uncovering was software contracts for certain agencies that included many more seats than were actually being used. We saw a tangible example of this concern on Friday when the Department of Defense said it would cancel

an Oracle contract to modernize the Pentagon's HR system. There's some hope that Oracle could recover the contract, but that could be roughly $100 million in annual recurring revenue down the drain. Wow, big contract. Now, sure, that's a rounding error for Oracle, a company that's expected to bring in more than $57 billion in revenue this year. But it's a warning sign for the industry. As KeyBank software analyst Jackson Ader put it in a note on Friday, quote, while we see this particular contract as noise in the financials to Oracle,

We see some signal for the broader sector. Incumbent software vendors who may be viewing themselves as beneficiaries of government efficiency, less humans, more software, are likely in for a bumpier ride than they had expected.

End quote. Makes sense to me. Wall Street's certainly taking this issue much more seriously these days. Last week, analysts at Wells Fargo took a stab of estimating which of the enterprise software players had the most federal revenue exposure. ServiceNow stood out. ServiceNow with 13 percent of revenue coming from federal government business. That's almost double the amount of the next largest UiPath and GitLab's, both at roughly 7 percent of revenue.

So what should we do about all this, especially like something like ServiceNow? Is that much government stuff? But it's already down a lot. First, I want to flag a note that we saw on Friday from influential Morgan Stanley software analyst Keith Weiss, who said that, quote, an uptick in macro uncertainty has investors searching for a new playbook in software, end quote. For what it's worth, he said his preference is for margin expansion stories like Intuit. Remember, we had them on. I think that's a great story. Autodesk, Workday.

as well as cybersecurity names like Palo Alto Networks, that's a travel trust name, and Fortinet, which he views as, quote, relatively more insulated from weakness, end quote. He also said he's nervous about companies with, quote, large deal exposure, end quote, like ServiceNow, Salesforce, and companies with consumption-based models. That's Snowflake. That's Datadog. That's MongoDB. As for my view, listen, I'm worried, too.

I certainly haven't liked seeing Salesforce come down 100 bucks from its high. That's been devastating for my charitable trust. But I also, you know, look, think a lot of the action here has become emotional and not thoughtful. I do, though, think it's fair to say that you should be getting more selective in this space.

While I am happy to stick with Salesforce, which I have been liking since 2008, one of the leaders when it comes to using AI to its advantage, I'm not sure that I'd stick my neck out for Adobe with its gen of AI threats, and I'm not sticking my neck out for ServiceNow with its sizable exposure to the federal government. So stick with your best ideas. Think secular growth stories like cybersecurity or clear winners who passed the Rule of 40 test after the government worked. But here's the bottom line. While software has been a total house of pain for the past few months,

in part because of the broader market sell-off and worries about the economy. I also think you're getting some incredible values now that these stocks have come down hard. You hardly ever get values in this group, but you've got to be very selective in the ones that you pick. All right, John in North Carolina. John. Hi, Jim. John, what's up? This company missed on revenue for the first time in 33 quarters recently and really got hammered. Do you think Trade Desk is worth a shot?

You know, I got to tell you, you are exactly like I am. I kept thinking that Jeff Green is going to make a comeback. He's got a new system and he's pushing in. And I'm going to say this. All right. I'm going to go there. I think at fifty seven dollars, I'm going to go all in that Jeff Green's got these problems fixed. I am out there. I want Jeff to come on the show. But I am saying at this level, I am with Jeff Green. I am with Trade Desk. Let's go to David in New York. David.

Jim, booyah. Booyah. First-time caller, long-time viewer. Excellent. My question is on Palantir. With big cuts coming in the federal government and Palantir substantial revenue coming from federal contracts, I have an average cost basis of $60 a share.

What do you say? Do I buy, sell, or hold? You buy. You buy. I'll tell you why. I think they're actually the paragon and paradigm of what the Doge boys want to see. I think that they are fantastic at what they do. I know that Alex Karp and I, we've never really played pickleball together, but I will say this. He runs a good company, and he's from Philly. There's two million of us, and isn't that something? The software sector has had a rough couple of months, but as long as you've

As long as you're selected within the group, I think you're getting a great buying opportunity in some of these names. Much more made money at Cleaner Mike's with sports technology company Sport Radar. Then is it a tale of two core weaves? I'm breaking down the stock, what I thought and what everybody else did. And of course, the rapid fire calls lightning round. So stay with Kramer.

Okay, we're proud that we got this one. Regular viewers know that I'm a big believer in the online sports betting place. Things like DraftKings, remember we had Flood on recently? They've been hammered lately, but don't worry about it. I think there's a lot of money to be made in this business. So when someone called in to ask me about Sport Radar, a company that supplies sports book operators with the data they need to make the odds...

Well, I got right back to them and gave the stock my blessing. Now, you know what? That was the end of October. And since then, this is amazing. Sport Radar rallied from $12 to just shy of $22 today. Now, earlier today, these guys hosted an investor day where they rolled out some encouraging long-term, really good financial growth targets. So let's take a closer look with Carson and Carl. Carson is the founder and CEO of Sport Radar. Mr. Carl, welcome to Mad Money.

Thanks for having me. Well, this is very exciting because we when I got the call, what we did at Ben Stone, I use research director. We said, oh, my God, how did we not know this company? This is the company behind so many of the companies that we do know. You really are the engine of sports betting.

We are. We are. Look, and what we collected now over the last 20 years is a breadth and depth of data which nobody can match. We have more than one million matches every year live. We cover this. We have all the historical database. And we are working with the three big leagues. Only the NFL is missing. Right. That's true. Who knows what will happen there? But I thought one of the most interesting thing is you are –

You cover the three most wagered sports. Now, I asked everybody which one, and people didn't know it. But it's-- well, I'll let you tell people, because it's really exciting. Look, it's tennis. Tennis is something which is very fast moving. So from a batting perspective, tennis is the best sport. Soccer worldwide is the biggest sport. So of course we have that. And basketball. So these are our three key sports.

Baseball is very, very good. Hockey is very, very good from a U.S. perspective. But those three sports collect the biggest. We were thinking that it seems like when we started thinking about tennis, you had something every week, right? There's a big tennis match every week around the world. There is not only every week. It's every day around the globe. Oh, my God. Well, that is so exciting. Now, tell me about the expanded baseball partnership. Well, we worked hard on that partnership. It took us a time, but...

Finally, we are super happy that we could extend it. Now we have baseball as the last one in our portfolio. And all the rights which we have are more than six years with the major leagues. And baseball is now this extension. And baseball is global. And the interesting one in baseball is Taiwan is a big market for us. Korea is a big market for us.

Japan is a market where we believe there are nice chances and they are mad about baseball. Mexico is mad about baseball and here too. Yes, it fits perfectly to the portfolio. Well, speaking about international, I saw you seated next to one of my idols, one of the most brilliant people in sports business, Adam Silver. And he gets a kick out of you guys, doesn't he?

I had two commissioners on stage for the investor day. I was a little bit nervous what they were doing. So it was Gary Batman and Adam Silver, both together. And they are great partners. And what we told today to the market is what we really live. We live a partnership. We try to understand sport, try to understand how can we help. It's not only sports betting monetization. Those boys want to go to the digital sport thing. They want to create value there and footprint.

Now, I was confused initially, and then I started reading into it. This IMG Arena deal is a tremendous deal for you. Isn't that interesting? Yeah. We get money paid. And it's something where the structure of the deal is it's fitting perfectly from a portfolio for us. And we had to repair a couple of deals which they did, which commercially are not that favorable.

So we could manage this together. And now the deal is subject to antitrust. But in six months, we believe we can close it. They pay us $225 million. And the deal is margin accretive from the first moment onwards. We are very excited. That's perfect. Now, one of the things that you guys do that is a great service is you detect suspicious matches and specific—

and suspicious gambling, you're in some ways the SEC for gambling. Well, the SEC or the FBI or the CIA. Well, we don't want that. But also, you also, it sounds like you can, can you lay off, like, let's say, Jason was, Jason Ramos, they kept, the favorite kept winning. Yeah. And he said he didn't want to lay off because then maybe something would change. But if I was,

If I wanted to lay off my odds, you could do it for me. Look, we are monitoring the movements of the odds. And the movements of the odds, they are going with the liquidity in the background. Right. So we are running our own model and we are monitoring the market. If we see there is an inconsistency, we have a good evidence for this. Then we begin to dig into it. We are sitting on the deep data with sport performance. We are matching the performance on the pitch to what we see in the market. And then we create evidence. What we did last year is

We had been helpful on 104 cases which had been leading to prosecution in sport. It was all over the place. 104 matches for one million is not much, but it's too much. And this is where we helped sport.

Yes, and we joked before about it, but it's about law enforcement agencies trying to help them to educate them, trying to help sports to make this happen. And you know what? No sports betting if the integrity of the game is in danger. So it can't happen. So that is for us essential. Well, and I don't want to bury the lead. I mean, you've got EBITDA, the Composite.

A compound annual growth of 27%. I mean, you're a juggernaut. We spent a lot of time talking about the soft stuff, but the numbers here are really pretty great. Well, we are happy. So the year in which we closed is a 26% top line growth, a 33% growth in the EBITDA. Now we gave a guidance of saying in the next three years, we see an average minimum 15% growth.

over every year, we see 700 basis points in the next three years where we improve the margin. And the margin is one thing, and you know that the cash matters. So that's the same. So 700 basis points also from a cash conversion. So we're feeling pretty strong. We're sitting now on 350 million cash. In three years, we are sitting on a billion.

And that's a good starting point for the next expansion step. - And you are the steadier of the ones. I mean, I recommend all of them because I think they have great sites and I like the parlays and stuff, but you're the consistent one. You're kind of, you're the real house.

Well, look, people are comparing it with the picks and shuffles. That's a great way to view it. That's exactly the great way to do it. And I've always favored those when it came to gold. Maybe I should favor those when it comes to gambling. That's Karsten Kohl. He's the founder and CEO of Sport Radar. And I want to thank our viewer that came to us with this because, holy cow, this one's a gem. Mad Money's back after the break.

Coming up, Kramer takes your calls. And the sky's the limit. It's a fast-fire lightning round. Next. It is time. It's time for the lightning round. We're going to start with Sandy in Texas. Sandy.

I don't understand why. It never goes anywhere. I mean, I thought this guy would come in. I thought it would be well run. It's not happening. I'm going to say I don't like it. I think you should go own the stock of Home Depot. That's the one to buy right here, right now. Let's go to Benji in Texas. Benji.

Booyah! I'm old school, Jim. I ran the Benjamin Graham number on this puppy. The intrinsic value looks good, but I don't know how risky this Chinese company is. What do you know about Ben V? Look, the Chinese market's in a bull market mode. The only one that I've supported the whole way is Alibaba, but I give you my blessing on this because right now it is the place to be, and that is the right sector. Let's go to Phil in Colorado. Phil.

I like that. I like the enthusiasm you're bringing to the table. Jimmy Chill likes your enthusiasm.

Let's go.

Right. Okay. Chill wants to hear. Chill wants to hear the name.

All right. Rio Tito, baby. R-T-Z? That's what they call it. The people included it and they called it R-T-Z because we are so much cooler than everybody else. I like your call. Let's go to Rob in Kentucky. Rob. Jimmy Chill. Go, Shakin'. The sovereign grandmaster of gray America.

Greetings from Potosi, D'Army City 151. My primary investment objective at 77 years old is capital preservation and income in my self-directed IRA.

I have a substantial position in Aries Capital, which I know you're familiar with. And I'm considering opening a position in a similar company named Fidus, ticker F-D-U-S. Okay, I have to tell you, I am going to be against you on this. Why? Because I have no idea what this business development company owns. And if we get into a nasty situation,

tariff, let's say incited downturn, then I think FIDUS is going to be hurt. So I cannot give you my blessing on that. I'm very sorry. Can I go to Chuck in North Carolina, please, Chuck? Booyah, Jim. Booyah. Booyah. Calling you tonight from Durham, North Carolina, home of the Duke Blue Devils. Oh, my. What can I say? Always, always great. What can I say? Hey, if you came to school, you're getting number one school in the country now. It's ridiculous. Go ahead.

Yeah, absolutely. I'd like to get your opinion on Altria M.O.,

Okay, Altria is troublesome for me because I've lost relatives to smoking. At the same time, look, there's no denying it. They're one of the best-run companies in the world. And they have actually made more money than almost any company in the world when they did the split with Altria and Philip Morris and Kraft Heinz. So you have a good one. I just don't want to recommend it myself. And thank you. Oh, no. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab.

Coming up, just days after going public, Kramer's digging into CoreWeave after today's big gains and seeing whether or not the company can power higher. Next. Tomorrow, kick off the trading day with Squawk on the Street. Live from Post 9 at the NYSE. Maybe we do a streaming. A streaming special? Yeah, a streaming special. Sure. Whatever you say, boss. Like when you used to do Squawk on weekends. Yes. I love that.

Oh, my God. We did do that, didn't we? Of course. All the things I've done. I just walk with that aim. I just look at the mirror. I talk about, well, you know, there goes Pfizer now. It all starts at 9 a.m. Eastern. There are two core weaves. There's the pathetic hang dog that came public last week by the hair bits chinny chin chin and got blasted down to thirty seven dollars before rallying in the clothes.

where the deal came. And then there's the turbocharged Corweave that blasted off today, rallying $15. The Corweave that rules the exploding data center world by dent of the CEO's street smarts and the tech prowess of its number two. Yep, last week in the midst of the data center as funeral crypt trade...

Corweave was laid to rest in a brutal Friday deal. Memo to underwriters, please don't ever do another Friday deal. Nobody wanted to go home at this point if they couldn't hold the deal price. And that's how you get an incredibly lackluster IPO. With all the talk over the weekend about the busted deal, Corweave shares fell yesterday $3 or almost 7%. Sell, sell, sell. But then, today the stock catches fire and soars almost 42% to $52. $52.

And change. Because suddenly people believe in AI infrastructure again. Corey, this is the star of the AI infrastructure firm event.

I mentioned CoreWave to show you just how very much, how bad this market really is. It's driven by emotion entirely. The same CoreWave that needed NVIDIA to backstop its deal at the $40 offer price was just Friday, just a couple days later, could have been so hot that NVIDIA might be able to sell all the shares that it owned at a monster profit if it wanted to. Here's the truth about CoreWave. I talked to so many people about these guys when I was at GTC, the NVIDIA Trade Fest, and at the San Francisco Bureau for CNBC.

And everybody loved them. Everybody. I come out skeptical, having had dinner with the two principals. I thought they were terrific, but I didn't trust myself. Sometimes you just get smitten. You don't want to fall head over heels over anyone in this business. But the more I probed, the more I asked, the more questions I was putting to people, more than a dozen companies, big, small, public, private, the better it sounded. I even met with mutual fund managers who owned the stock ahead of the deal. They raved and raved about CoreWeave.

I went to one of their CoreWeave data centers. Nevertheless, when the IPO actually came, we were finishing one of the worst weeks for TechImaginal. We even had a firm talking about how CoreWeave was the next Enron. I mean, arguing that the company took money from NVIDIA because NVIDIA was secretly propping them up in order to sell more chips and keep the whole AI charade going. All this was appalling, unfair, libelous even.

CoreWeave has a lot of debt because it wanted to buy huge numbers of NVIDIA chips. After all, if you wanted a lot of computing power, you needed NVIDIA. Remember that? NVIDIA was a good company. It's not all about one big joke on the investing public. There wasn't anything untoward about any of it. The Enron comparison, absurd, mean, vicious, awful.

But when these things happen in an ugly market, everyone's helpless. The company's never done an IPO before. They had no idea what to do. Neither did Morgan Stanley, judging by how it worked. Anyone in the data center world understood that Corby was the best at what it does. But that meant nothing as Wall Street decided that the whole data center complex was worthless. Now, here we are less than a week later, and we're looking at a stock that's now a back of

above 50, right around where it was supposed to be when it first was going to come public. Nothing's changed, nothing at all, except the price and far fewer shares public than we thought. The owner yesterdays looked like chumps. Today, they look like champs.

Everyone needs to remember what happened here. The same stock they couldn't give away last week is now roaring higher on absolutely no new news. Which view is right? I'll back the view of every single person I met in the data center business, including random people at GTC booths who know this thing is real. And I'll forget those who had no idea what CoreWeave does, but still hated the stock because the whole group was falling apart. Sometimes a clinical view derived by homework is the best way to go.

I like to say there's always a bull market somewhere. I promise to try to 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.

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