Deep Dive
Shownotes Transcript
Your best restaurant location gets five-star reviews. How do you make every location like your best location? Your best paper mill has been operating at peak productivity. How do you make every mill like your best mill? Your best data center has optimized every drop of water. How do you make every data center like your best data center? The answer is Ecolab. Better performance, better outcomes, better impact. Ecolab. Now every location is your best location.
As America's leading business lender, Bank of America is on your corner and in your corner. With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper. What would you like the power to do? Learn more at bankofamerica.com slash localbusiness. Bank of America, official bank of FIFA Club World Cup 2025. Copyright 2025 Bank of America Corporation. All rights reserved. ♪
Hey, I'm Kramer. Welcome to Have Money. Welcome to Kramerica. I'll be your only friend. I'm just trying to make you money. My job is not just to entertain you, but to educate, to teach you about how days like today can happen. Call me 1-800-743-CBC. Tweet me, Jim Kramer. You can't blame anyone for being confused here. A little more than a month ago, the president declared Liberation Day, putting forward a tariff regime that was far more punitive than anyone could have imagined. Ha, ha, ha.
President Trump's Liberation Day tariffs were much higher than the disastrous Smoot-Hawley tariffs that helped contribute to the Great Depression.
It crushed the market. Trillions were lost. Bulls were turned into bears. Bears were turned into meat-eating grizzlies. And money poured out of stocks. Six weeks later, it's like the whole thing never happened. Stocks have been bouncing back ever since, including today, where the Dow dipped 270 points, but the S&P gained 0.72%, and the Nasdaq jumped 1.61%. The S&P, at one point down almost 17%, at one point this year, is now positive for the year.
It is an astounding comeback. All day I heard that the market went higher because we had a cooler than expected consumer price to the next number. Okay, it's true. Inflation only increased by 2.3%, less than expected. That's right where the Fed should be willing to cut rates if the economy softens from here.
But long-term interest rates actually went up today, not down. So clearly nobody's betting on rate cuts. Stocks that thrive when rates go higher, the defense stocks, well, they got bruised today, all right? I mean, the drug stocks took it on the chin. It was the exact opposite of what you would expect. So the CPI, it had nothing to do with this move. No, what happened today, what happened yesterday, and what's happened for the last few weeks is nothing other than a gigantic offsides call in football.
The big money, the hedge funds and the fast traders have been caught on the other side of the line of scrimmage. And it is costing them. Now they've had to try to get back on sides before the ball snapped. And because they have so much money bet the wrong way, they just can't do it in time. They need sellers, natural sellers to surface so they can avoid the penalties they're facing.
But the sellers aren't showing up. Why should they? The game's now going their way. A president who had been perhaps unwittingly on the side of the Bears has switched teams and become their worst enemy. How did this happen?
Honestly, it's not really clear. Was it the executives who met with Trump and told him that his tariff plans would cause a huge amount of inflation and empty shelves in stores, making people absolutely miserable? Was he upset that his base would be hurt by rising prices? Did he fear that he'd cause a wave of inflation like we had under President Biden?
Biden, which President Trump knows helped him retake the White House. Did he recognize that there was another way to extract wealth from other countries, like the wealth that he's extracting from the Saudis? Or did Trump simply realize that he wasn't going to accomplish what he wanted to do, so he switched sides? Because, well, why not?
Why be wedded to a strategy that might hurt the country and not help it? I mean, that's not his style. In other words, why not be arbitrary? Why not be mercurial? Because you don't like what you're hearing from business people whom you trust. One thing's for certain, the market simply wasn't big enough for those who were betting against stocks to be able to bring in their short positions and simultaneously do some buying to participate in this rally. Or to put it in a way that we all understand, Trump, too, the man who cared more about tariffs than...
had taken a backseat that Trump won. He still wants tariffs, but maybe getting more for companies by threatening a hard line than by actually executing on the hard line and throwing us into recession. I think there was a practical element to Trump's change of mind. He wasn't going to get lower interest rates to combat the slowdown the tariffs had caused because the tariffs would also produce inflation.
But I think he didn't realize how so many hedge funds decided that he was willing to burn down the village in order to save it, so to speak, which is why they sided with arsonists. Then the arsonists disappeared and they had nothing to save them. How could this happen so quickly? First, as those who shorted the market now realize the president's pivot was wildly bullish for the very companies that had previously been hit the hardest. Take a video.
On the one hand, Trump effectively forced NVIDIA to take a $5.5 billion charge for chips it could no longer sell to China. On the other hand, he's now out there helping NVIDIA sell chips to some of the biggest clients in the world, the Gulf monarchies. NVIDIA stock has made a historic comeback.
Second, we have almost no new supply in this market. No whatsoever, but we have some of the most voracious buybacks I've ever seen. I know it seems absurd, but without new supply from the IPOs and secondary offerings, if anything good happens, those caught offsides would have no choice but to pay up and up.
up to get all the stock they needed. There just isn't enough supply for them to quickly turn bullish, and that's happening right now. Third, without huge tariffs, the possibility of runaway inflation is taking a backseat. That makes it much easier for the Fed ultimately to cut rates, creating a far more positive backdrop in the future. Fourth, the earnings simply failed to fall apart.
We just went through a very good earnings season. There's no fundamental reason to sell. In short, our arbitrary and capricious president fooled the smartest people in the world, while the retail investor, the home gamer, you didn't sell. Like it or not, President Trump 2 morphed into President Trump 1, and those who banked on him wrecking the stock market, well, they made a huge mistake.
In retrospect, on April 9th, when Trump posted on True Social, quote, this is a great time to buy, end quote, he nailed the bottom because, alas, he created the bottom. He created it by hiking the ball at the worst possible time for the Bears. April 9th ended up being the largest one-day point gain in Dow Jones history, just under 3,000 points. You just had to listen to him. Very few Bears did. And you made a fortune if you listened to Trump because he decided to stop fighting the stock market and started embracing it.
The bottom line, the bears are paying the price while the individual investors who held on are basking in the glory. One of the greatest rallies ever as the president ultimately made the extremely rational decision to not destroy the entire stock market. Maybe more of us should have seen that coming, especially when he told us it was a great time to buy. And indeed it was. What a call. Hey, why don't we go to Mike in Colorado? Mike.
Hey, Jim, Mike from Colorado Springs. Mike, what's happening? Oh, we went to Colorado Springs. We loved it, Mike. Hugely fun place. Hey, first I want to say thank you for all the help you've given us over the years, especially when the market is going crazy and you are the voice of reason. Oh, thank you. We did not want to punt and leave this stock market. We had a feeling that things could get better. Thank you for recognizing that. How can I help you?
Jim, I'm 68 years old and retired. I bought UPS three months ago at $114 for a 6% dividend after listening to the CEO at their last conference call. She explained their plan for profitability post-Amazon.
The stock is now 100. Should I buy more, hold on, or find a better dividend? I think that FedEx is going to clean their clock, frankly. I think that Raj Subramanian is a better operator, and you're on the wrong horse. I'm sorry. I thank you for the kind words, but you are on the wrong horse. Don't buy. Don't buy. How about we go to Dylan in Pennsylvania? Dylan! Hey, Jim. Hey, Dylan. Booyah to you. Thanks for taking my call so much. I'm a long-time listener. Of course.
Thanks for all the education and experience that you've shared with us small guys out here. So I really appreciate it. Thanks, buddy. Thank you. Fantastic. How can I help?
So I was calling you today about a telecom company. AT&T is firing on all cylinders. And after the WarnerMedia spinoff and years of stalling out around the $30 mark, the stock is up nearly 69% over the past 12 months and within striking distance of recent highs.
With their enterprise partnerships and driving a wave of IoT devices and connected vehicle activations, which scales well on top of their core wireless and fiber network, I was wondering, Jim, do you think that they're going to be able to break above that $30 mark?
I will tell you this. I will tell you this. I think it is going in the right direction. And I would be a buyer of AT&T. All right. Listen to me. Like it or not, Trump 2.0 morphed back into Trump 1.0. And those who stayed the course through the tower of turmoil can now bask in the glory. The other guys, they're off sides. Could Disney stock head to infinity and beyond after last week's post earnings pop?
Don't miss my C-Suite exclusive straight from the company's upfront. Then, what natural gas stocks could see some energy ahead? I'm revealing my list after the course recent rally. And later, I'm bringing you my exclusive with Shoemaker on hold after today's remarkable run-up. Stay with Kramer.
Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
The $150 billion pet industry is booming as people absolutely love their dogs. If you're looking for a solid investment, Dogtopia is the name to know. With 300 locations across North America, it's the largest, leading, and fastest-growing pet franchise offering a recurring revenue membership model. Dogtopia offers safe, open-play dog daycare, boarding, and spa services. Want a recession-resistant franchise? Check out Dogtopia because every dog and dog parent deserve it. Go to Dogtopia.com to learn more.
Every day, thousands of Comcast engineers and technologists create connectivity solutions that change the way we work, live, and play. Like Kunle, a Comcast engineer who is focused on revolutionizing the in-home Wi-Fi experience today and for the next generation.
Learn more at comcastcorporation.com slash wifi.
How will you shape the future of banking with confidence? Industry consolidation, crypto, the rise of fintechs, all create a complex landscape for banks to innovate and grow. EY provides domain-led insights to navigate today's fragmented banking sector. So whether you're tackling regulatory complexities, integrating digital assets, or seizing M&A opportunities, EY sees your business from every angle, working together to deliver outcomes that create strategic value.
EY, shape the future with confidence.
Disney stock has now rallied for an astounding six straight sessions, up more than 20%, with most of that gain coming last Wednesday after the company reported a blowout quarter. As someone who owns the stock for the Chapel Trust, I love to see this kind of move. But can it keep running? Earlier today, we got the chance to speak with Dana Wald. She is the co-chairman of Disney Entertainment at the company's upfronts event for advertisers here in New York City. Take a look.
People should know, I feel like I'm in the presence of greatness, but I want everyone to know who Dana is. There's not a better person to tell me who Dana is than you. Oh, well, thank you so much, Jim, for being here, and I'm
I'm very excited to tell you who I am. I am the co-chairman of Disney Entertainment, and I oversee our global television business as well as Disney Plus and Hulu, which I oversee together with my partner, Alan Bergman, who oversees the film side. Additionally, we oversee ad sales, technology, and platform distribution. Well, people should also know that one of the reasons I'm so excited to meet you with that resume is that you were also the reason why the
cord was so damaged.
Oh, well, thank you very much. You were the Delta. I appreciate it. But can I tell you, I think we had a great quarter across the board. Every segment delivered. I'm very proud of my colleagues. I feel like we're in great shape. You have an amazing breadth and you have fabulous IP. But again, I won't pressure on this beyond this. But the fact was you were in a business that was losing a billion a quarter. And we all hated Disney because of that business. And now it's the reason why we love Disney and why the stock won't quit. So how did you turn it?
Well, our strategy is it's really working. And ultimately, we're looking at a few different elements that make a huge difference for us, starting with amazing stories and a unique type of story that you can only find at Disney, which is obviously our iconic IP, our branded series.
Our studio was number one at the box office this year and eight of the past 10 years. It is so reliable. The films are amazing. Many of them are billion-dollar-plus performers at the box office. And then they go on to Disney+, where they stimulate subscriber acquisition, they drive engagement. And then when you put that together with our general entertainment, which I
Not to brag, but last year we won 60 Primetime Emmy Awards, more than any other company. And then very exciting news this morning about ESPN and the ESPN app. And very soon you'll be able to bundle those three services together. Very simple interface.
All of that content will be available through one app, which is Disney+. So our bundling strategy is really paying off. I think also what's paying off is that you have brought an attitude. People want to work with you. Stars want to work with you. Stars are still the key, correct, to get the viewers? It's true. It's stars. It's our creative partners. It's the filmmakers. It's the writers. And...
You know, Disney is so special in this entertainment environment. It really serves as a magnet for the very best creators. And we try to put them in a position where they can win, where their work is going to be celebrated, where it doesn't feel like it's just thrown onto a platform. You know, we take the time in many cases, you know, whether it's from our linear channels, it's windowed in theatrical, that content is windowed onto Disney+ and Hulu.
We love storytelling. It's the core of our business, and we take care of those stories. You have the right people to do the storytelling. You introduced me to Martin Short. I was like, standing next to Martin Short. These are people who are, they're lightning in a bottle, okay? And he's telling me about how much he loves working with you. Yeah.
Yeah, he's a great partner. But again, partnerships matter. They matter for today. We're obviously we're at our upfront presentation for advertisers and those partnerships are key. And we have an incredible ad sales team.
And they nurture those relationships over decades. They're dependable, reliable. We deliver for our partners and we deliver for our creative partners. And only murders in the building. We're about to release the fifth season with an all star cast. And Martin's been amazing. Now, talk to me about why people think linear is dead and how it is anything but dead for you.
Well, certainly it's not dead for sports. It's growing for sports and ESPN on ABC is growing and grew ratings and is delivering for those partners that are in our sports programming. But you know, we have a very interesting strategy with Linear, which is it's been embedded in our streaming strategy for the past six years.
We look at our linear channels, our core linear channels, FX, Disney Channel, Nat Geo, and ABC, and we look at it as an opportunity to program for audiences that are still watching on linear, and then that same content is windowed onto streaming, where it's on demand and available for subscribers whenever they want it, and that enables us to speak to a very broad audience.
50% of our audience watches on linear, of linear programming. And 50% watch it on streaming. And it's a type of content that is foundational to streaming. Shows with deep...
deep libraries, 30-plus seasons like The Simpsons. Every time we have a new season, it activates the entire library. So we've made good sense of these two forms of distribution. So why is there a misperception? For instance, I was reading today, well,
some companies know how to take advantage of YouTube, and you're not mentioned. And yet, you're the company that's probably taking the most advantage of YouTube, trying to pick the people that, you've got the algorithm, you know what people watch, you've been able to select them, but you're not in the article.
It's true. I can't really explain that one, Jim. I can only say they've been a great partner, YouTube, and we actually partner with them on a variety of different fronts. We have a number of YouTube channels. We produce, you know, several different forms of special content for them, whether it's trailers or short episodes. And all of the work that we do for them ultimately converts
viewership back to our own platforms across Hulu and Disney Plus. Why do people think that if you have edgy programming, you don't get advertisers and yet you have edgy program? And as we know from the upfronts, you have plenty of advertisers. Yeah.
Yeah. We have premium programming. So high quality programming is really a hallmark. It's a staple of what Disney does. And advertisers are not rigid. They want to be with trusted partners in programming that is premium, that feels like it is worth their investment and where they get reliable ROI on their investment. Right. So comparisons are odious except on Wall Street. I
I want to know what Dana thinks about why there's such a disparity between the value of Netflix and the value of Disney, given the fact that there's this one division, your division, that is going to be putting out what Netflix is doing now in the future.
Well, I think it's worth remembering that Disney+ is now five years old. It's still a very young service and we're so pleased with the direction we're moving. We're growing in all of the important metrics. We grew, and you just heard last week on our earnings call, we grew subscribers, ARPU, revenue, profits. We're moving in exactly the right direction and
We're really not looking at the competition. We have a unique ecosystem. And you think about Disney+, it is the portal for Disney fandom around the world. And those iconic stories and characters are activated in our parks, on our cruise ships, in consumer products.
There are so many ways that we're able to optimize and monetize that content that other companies are not able to do. And yet instantly I heard from Wall Street critics, well, it was all one-off. It was just a one-off turn. It can't be anything. It's got true momentum, doesn't it?
Absolutely. Yes, we're very pleased with the direction we're moving, as I said, and we do have momentum and we are moving towards those double digit margins. And this is a growth business for our company. OK, I want to know what I'm going to be blown away by, what the advertisers are telling you they're blown away by right now at Upfronts. Well, clearly they are loving the sports and they're going to see our incredible partners. You just spent some time with Jason Kelsey.
Which was a great experience for you because I know you're a fan. Look, he was in my box at the Eagles. And of course, I was like a Thursday night. So he answers the phone and I'm like, Jason, you can't even speak to him because he's such a titan. You got to get choked up by him. He's he's an amazing person.
He really is, but I love Alien Earth. What we looked at at the very end of the presentation, it is a series based on the film franchise, which again will have an interesting dynamic. When we release the show on streaming, it's going to lift that entire library. People are going to go back and watch those six films. It's going to create engagement across the entire franchise.
It's so well executed. Noah Hawley, who also did Fargo, is the creator. And I think people are going to love it. But I want to circle back to ESPN just because today is the big news. And you've got a portfolio, but you're a cooperative person, obviously. This could be big. I've noticed you even have Daily Fantasy is going to be involved. You know, and I know Bob recognizes this.
that fantasy is important and that they watch all four quarters. The fourth quarter matters, even if the game is not a blowout. You've got the right people. Eli Manning is a big star for you. It just seems like that what you're doing with ESPN is something that no one could imagine you'll be able to do. Particularly when I remember 100 million and then it was just nothing. It's really gone like this.
That's right, I have so much respect for Jimmy Pataro and his team at the SPN they're doing a great job. He has a real vision for this product it is pretty dazzling in the way it does incorporate as you just mentioned the SPN bat fantasy the personalization of the studio programming of Sports Center knowing who the fan is that's watching I think it is going to blow people away it's going to be
No pun intended, a game changer. - It will be, no, I gotta tell you, it's gonna be a game, but I always think about Bob Iger in this, and I know that Bob has got the bench. It's just finally been exposed for what it is. Some incredible Titan people like you. Bob's got a pretty good crew, doesn't he? - Well, Bob's pretty great. He deserves a good crew, and we've all had the benefit of learning from him.
Well, and that last thing I do want to talk about, when I look at what where you are, I want people to understand that a lot of things were going like this. But in this quarter, which has driven the stock up beyond where anyone felt, and I think it still put a couple of multiple points on. It was yours that went like this. You had to be proud.
Enormously proud and so can folks proud proud my parents are proud. I think Bob's proud of our company which makes us all great all feel great. Yeah, thank you so much Jim for for recognizing that Dana Walsh co-chair Disney entertainment. Yeah, I that's what thank you so much. Coming up the natural gas complex is rallying with the rest of the market could a play in the space via natural investment Kramer is drilling down next.
Impact confirmed. The Slayer has been activated. Demonic threat level increasing. All the light! All the power of hell. Coloring of all one. It's software presents Doom The Dark Ages. Available May 15th on Xbox Series X and S, PlayStation 5 and PC. Pre-order now. Rated M for Mature.
You just realized your business needed to hire someone yesterday. How can you find amazing candidates fast? Easy. Just use Indeed. When it comes to hiring, Indeed is all you need. Stop struggling to get your job posts seen on other job sites. Indeed's sponsored jobs help you stand out and hire fast. With sponsored jobs, your post jumps to the top of the page for your relevant candidates, so you can reach the people you want faster.
According to Indeed data, sponsored jobs posted directly on Indeed have 45% more applications than non-sponsored jobs. There's no need to wait any longer. Speed up your hiring right now with Indeed. And listeners of this show will get a $75 sponsored job credit to get your jobs more visibility at Indeed.com slash madmoney. Just go to Indeed.com slash madmoney right now and support our show by saying you heard about Indeed on this podcast.
Indeed.com slash mad money. Terms and conditions apply. Hiring Indeed is all you need. All right. Lately, we've seen this really major rebound in the price of natural gas. It's up roughly 27 percent from its lows in under three weeks. It's now basically back to where it was in early January before everyone freaked out over the president's now mostly rolled back tariff agenda. I got to say.
This is pretty much what I was expecting when Trump won the election. Unlike oil, where the drill, maybe drill, translates into more production and thus lower prices, natural gas is uniquely captive to the federal government. The rest of the world is desperate to get its hands on our natural gas, but we can't export it without liquefied natural gas terminals. And those can only get built with permission from the regulators.
The Biden administration was pretty hostile to fossil fuels, but Trump's happy to greenlight new pipelines and new LNG export terminals. So now that we're no longer terrified that high tariffs will slow the economy into recession, how do we play this relentless rebound in natural gas? Well, first,
That's probably the most obvious, frankly, if you watch the show. I like EQT. That's the Pittsburgh, Pennsylvania-based operation that's the only large-scale integrated natural gas producer in the United States. So far, this stock's up an astounding almost 22% for the year. It's trouncing the rest of the group. About three weeks ago, on the exact day that natural gas prices set their low for the year, we spoke to the company's CEO, Toby Rice, and he explained that EQT's secret sauce is their ability to generate consistent cash flow growth, even when the commodity's going in the wrong direction.
thanks to the low cost structure since then this stock's up a quick 15 as natural gas started moving the right direction i'd also love some natural gas pipeline exposure here in part because most of these pipeline stocks feature generous dividends how about one oh yeah one that's zero one o n e o k it looks like one and okay all right it's one of my favorites this is a major player in nat gas gathering processing
storage and transportation with a big nat gas liquid system. Now, One Oak's still down almost 14% for the year, primarily because it got obliterated in the wake of the Liberation Day tariff announcement with only a modest recovery since then. The most recent quarter was also less than ideal, revenue beat paired with an earnings miss and light cash flow numbers. Still, One Oak offers a unique value proposition if you believe in a major natural gas comeback.
Plus, even with the softer first quarter results, management reaffirmed its full year forecast. That's a real sign of confidence to me. Down here, the stock sells for less than 16 times this year's earnings estimates. It's got a 4.8% yield backed by tons of cash flow. One oak, it's a built buy.
What else? You know I'm a big fan of Enbridge, the Canadian pipeline colossus, although their network also has lots of crude oil exposure. Still, I think Enbridge belongs on any short list of natural gas places because they operate the continent's largest natural gas utility by volume. These guys were always big in Canada. They run in the main gas utility in Toronto. But last year, they bought three American utilities in Utah, Ontario,
Ohio and North Carolina, respectively, from Dominion Energy. And that's created North America's largest natural gas utility. Now, despite a solid 5 percent gain so far this year and a nearly 18 percent gain over the past 12 months, the stock's pretty cheap. Trading just over 20 times this year's earnings estimates get this to support a juicy 6 percent yield. What is not to like about Enbridge?
Finally, we want some exposure to the companies leading the way in the liquefied natural gas export space. But many of the LNG exporters have proven to be very tricky stocks. One of the biggest up-and-comers, for instance, in the space venture Global came public in January. It's become a comedy of ours. Even after stabilizing and recovering a bit over the past month or so, the stock sits at $10 and change.
That's down at least 60, 60 percent from its 25 percent IPO price. Sempra, a diversified energy company that we used to like very much for its LNG business, has also become a bit of a disappointment. The LNG business is fine, but the regulated gas utilities in California are struggling.
So let's keep it simple and let's stick with the LNG OG, and that's Chenier Energy, which became the first legitimate LNG exporter nearly a decade ago. We've been with it the whole way and remains the largest exporter of liquefied natural gas in America. The stock's up more than 8% year to date after fully recouping all of its post-liberation day losses. Chenier has many growth projects, and I think it can keep building on its lead in this space, which is why I like the stock.
So here's the bottom line, this exciting sector.
With the natural gas trade coming alive again, I like EQT for production, One Oak and Enbridge for pipelines and distribution, and the OG Chenier Energy as a pure play on liquefied natural gas exports. I think they very much work here with a fossil-friendly White House, and now I just have to grok what OG means, and I'm in fantastic shape. Let's go to Cliff in Missouri. Cliff!
How are you doing, Jim? I'm telling you, Cliff, this is a great day. Thank you. Great day. What's going on? Great. I just want to check on Boeing. I continue to pound the table on Boeing ever since Kelly Ortberg got in and they raised the capital. It's going to be up again tomorrow. The month that we I just listened to Philip Bo talk about the monthly deliveries. They're fantastic. You must stay long. Boeing.
That's it? Okay. Anyway, now that the natural gas trade is back in fashion, I like names like EQT, One Oak, Enbridge, and Chenier. And they should all work in this environment as natural gas ain't going down. Now, what's with my money? I include my post earnings as a piece of footwear player on holding. Then how is Trump shaping the tech giants?
I'm telling you where I stand at the president's overseas appearances today. And Euter calls Robin Farnes tonight's edition of the lightning round. So stay with Kramer.
This morning, we got an incredible quarter from On Holding, the running shoe company that's the biggest thing to come out of Switzerland since the cuckoo clock. The numbers were so strong that the stock set up nearly 12 percent today. Can it keep climbing? Earlier today, we spoke with Martin Hoffman. He's the co-CEO and CFO of On Holding. To get a better sense of what's driving this momentum, take a look.
Martin, you just delivered another great quarter and I'd like to know how you're capable of continuing to beat the sales estimates. James, thanks for having us. It really all started in summer last year where we started to really elevate our brand awareness globally. First by the Olympics, by having 70 athletes there on the biggest stage of sport.
With our partnership with Zendaya, we brought ourselves in front of many younger customers. And then just this February, we had an amazing Super Bowl commercial with Roger Federer and Elmo discussing what the ON logo stands for.
Then our team has done a really good job in elevating our operational capabilities. We remember the beginning of last year, we had disruptions in our supply chain. Now we have the right product at the right time at the right place. And then we created a lot of exciting products that came to market just this quarter. We launched a new Cloud 6, our biggest franchise.
the new Cloud Surfer 2, which is amongst our top three franchises in the running category, and then a new, totally new franchise, the Cloud Zone, which is also here on the table, which had a really strong start. So with that, we achieved a record quarter, 40% growth on a constant currency basis, and it also brought us in a position to elevate and increase our outlook for the full year to 28% growth, constant currency.
So one of the things that happens with your new iterations is that those of us who love your shoes feel compelled to buy all three. I mean, I've never seen a brand loyalty. At one time, Nike had something like it. Do you expect that each one of these will be picked up by people who already have your shoes?
Yeah, you always need one more. I think this is important. Now, at the same time, we want to stand for performance. So for us, it's important that people who move are moving in our products, not just in the shoes, but also in our apparel.
And if a runner only needs a new pair every 400 kilometers, then this is also fine for us. But I think it's what the brand stands for. It's for performance, design, sustainability. And I think this creates a very unique value proposition. But how is it possible that your performance shoes are so loved by people in their 30s, 40s, 50s, 60s, 70s, who just want to wear them to places that you would not expect people want to wear a sneaker to?
Yeah, it's about the engineering of the product, really the unique technology in the outsole, which makes the fast runner faster and makes the one who walks in our product more comfortable, more pleasant, really enjoying the time being out there on the walk.
All our products look good because we really love design and it's a premium product which also shows that you care about how you show up. So let's talk about premium products and market share. We know that there's only one company that we used to think was premium. Now I've got a couple of others. Do you see yourself taking share both direct to consumer and in brick and mortar from Nike?
Yeah, we see it in the results of the first quarter. Our D2C channel has grown stronger than our wholesale channel. Both e-com and retail are very strong. So we have now 53 stores globally where the consumer can really experience the full press of the brand. Apparel is extremely strong in our retail stores and it's very strongly growing. The whole apparel category almost doubled in the first quarter.
Yeah, I think there are a lot of values in a premium brand that are super important for us. Quality, innovation, sustainability, the experience to our customers, social impact. That's what we are standing for.
All right. So I know you put some language in your quarter that talked about tariffs, talked about some uncertainty, but you really didn't cut your earnings that much. Is this because you see great momentum? You're not so worried about China. You've sourced in Vietnam. Maybe the currency that you're not in the dollar. I don't know. But even though you you certainly pointed it out, it doesn't seem like you really think it's going to stop your momentum.
I think the brand is in a really strong position. We have done a lot of work to earn the pricing power and we will make use of the pricing power also in the market. At the same time, all our products come from Vietnam and Indonesia, so we don't have China exposure.
There are a couple of other measures that we are taking to just navigate the situation. But again, it's about focusing on the core values that we have, and this is the premium position. So we want to invest into our product. We want to invest into the brand, into the customer experience. That's super important for us.
We had our strongest months ever in the history of the company in April, where there's a lot of talk about the uncertainty, but the on-brand is very, very strong. All right. Now I want to talk about United States. The Super Bowl ad was fantastic. You've got big presence in New York. Are you taking some of our biggest cities by storm?
It seems like, yeah, it's growing all over the continent and wherever we are, we see more people in the shoes. Our stores in Miami, in Aberdeen, in New York are growing very strongly, even on the same store base. But I think this is credit to all the work that we did by giving the brand the credibility, making it younger while also caring about all demographics.
So I think the US is the poster child for many regions. At the same time, Asia Pacific is extremely strong. Almost every country in Asia Pacific more than doubled the business in the first quarter. I've just been to China. You see more and more people in our product there. We opened
our biggest mall or our biggest flagship store in China so far in Chengdu. So the customers there can now experience the brand in a new way. So it's really the global momentum that we are having. In April, were they lining up for shoes in China? I imagine that you have shown the new style, the new look. The others have grown tired.
Yeah, we always say we are a Swiss brand with a Chinese heart. So I think this is important. The product really resonates strongly with the China customer. But also Japan, one of the biggest running markets, is seeing incredible momentum. Australia, we are about to open our first store in Singapore. So it's really the whole region.
I know April was really strong. I have come to think of your shoe as a must for the summer. You can't go to the club, play tennis, run, be seen without your shoe in the summer. You really have a huge seasonal burst, don't you?
I can only agree, yes. I think there are a lot of great products for any kind of activity. I feel in today's world movement is super important just to clean your mind from all the uncertainty and the stories that are out there. So that's what we want to provide, a unique experience to go out and move and ignite that human spirit.
But yeah, I think we have a lot of fresh colors, a lot of fresh products for summer in tennis and training and outdoor and running.
Yes. Well, I don't want to ruin your age demographic, but my wife will have bought every single thing that you put out because she has a closet that's just filled with On sneakers. I wish you'd join us someday. We would have a blast, a great time. I want to thank On Holding co-CEO, CFO Martin Hoffman. Martin, congratulations. Just great work. Thank you very much. We'll be back in a moment.
Coming up, Kramer takes your calls. And the sky's the limit. It's a fast-fire lightning round. Next. It is time! And then the lightning round is over. Are you ready? I'm starting with Khalid in Georgia. Khalid.
Yeah. Hey, Jim. Thanks for calling my call. Big fan of your show. Thanks for calling, buddy. What's going on? Hey, I'm calling about a company that has a record number of members, record revenue, deposit all-time high. The company is SoulFi. And I'm calling about a company that has a record number of members, record revenue, deposit all-time high.
Oh, I like so far. We've been back. Anthony knows we have been behind this thing the whole way. And you know what? It gets thrown back at this level. I am not concerned. I think it goes to new highs. I think it takes out 18. Now we're going to Larry in New Jersey. Larry! Hey, Chad. Big boy from Wayne, New Jersey. Hey, man. Hey, man. Oh, my God. Are you kidding me?
I'm not even old enough to remember that. Okay, what's up? All right, you know, there's been a bunch of people who don't like Roku. I'm not going to join that gaggle. I think the stock has some upside because they are doing some pretty terrific things in streaming, so I'm okay with it. Let's go to Jim in Connecticut. Jim.
Yeah.
on a 90-day suspension. Is GE Healthcare worth another look, even though the group's down to face? Now, you know, you're a club member, you know I saw it a lot in the high 80s and then gave up on the rest. The reason I did was because it's inconsistent and too controlled by China, not America. So I am not going to be a backer. I am going to say the fable. Don't fight, don't fight. Now we're going to go to Henry in Colorado. Henry! Mr. Kramer, how you doing, sir? I'm doing well. How about you?
I'm doing well as well. I wanted to get your opinion on Constellation Brands. Oh, I know it's trying to bottom, but you know what? The beer business is soft. The spirits business is not so good. And frankly, I expected more from the company. I think the company has been a very big disappointment. And I just have to say, I don't need to be in stocks that have been disappointing. I'm sorry. I wish it were doing better for certain. My wife's in that business itself, but I don't see it. And that, ladies and gentlemen,
Conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, President Trump is making a big push in the Middle East along with some familiar CEOs. Kramer breaks down what it means for your money next.
Booyah for the emperor of Kramerica. Honorable James J. Kramer. You got me jumping around my office right now. Thank you so much for all you do for us. I enjoy your show and it's very entertaining and informative. I watched your first ever episode of Mad Money back in 2005 and I've been watching every single episode ever since. Don't miss Mad Money every night at 6 p.m. Eastern. Plus, join the CNBC Investing Club and stick with Kramer around the clock.
Wow, there's Jensen Wong. Holy cow, there's Lisa Su. How about Larry Fink? Oh man, there's Alex Karp. Is that really Andy Jassy? And on and on and on. I'm talking about the footage of President Trump meeting with American business leaders whom he summoned to meet with major figures in Saudi Arabia, including Saudi Crown Prince Mohammed bin Salman, MBS for short. The president's been able to wrangle some of America's biggest executives, all a part of getting the Saudis to commit $1 trillion to invest in the United States. I find it's a great idea.
I find this whole exercise kind of otherworldly. On the one hand, you have China, anxious to give away money to mendicate countries that desperately need their support, and they're giving it. On the other hand, you have our president soliciting money to reindustrialize America,
And he's getting it. There's a virtuous circle going on here. The president brings along Jensen Wang, CEO of Nvidia, to help the company sell its best chips, creating a powerhouse customer for the ages. It's a big deal for the Saudis because they weren't on the arbitrary, capricious list of 18 friendly countries that President Biden approved to buy Nvidia's best technology. Now instead of 18 friends, we got a whole bunch of friends that can buy Nvidia's top chips.
I see many new mini hyperscale or sovereign AI countries developing. There are plenty of people who want to write off this whole thing as one big charade. But man, we've been defending the Saudis for decades in return for nothing. They wouldn't even help drive down the price of oil. Now President Trump's giving them a chance to pay us back. Call it extortion if you want. I don't care. The kingdom of Saudi Arabia hasn't come yet.
All this seems strange because it's never dawned on any of these executives that this kind of showcase could happen. To see this procession of executives being embraced by the president and shown off to the Saudis is a little hard to get your head around, especially when the previous administration treated CEOs like pariahs. It works in part because these executives seem genuinely thrilled to be a part of what amounts to a wholesale shift in the United States' foreign policy.
I myself am torn by the meetings. I love the impact of what's happening to the stocks of these companies. I'm happy to lure in foreign direct investment from our nominal allies. So why am I torn? Because a month and a half ago, the president seemed completely incapable of helping these companies as they pursued a tariff agenda that was going to crush profits and perhaps bring us to a recession. Under this president, many of the stocks that are now soaring collapsed because of tariffs.
It's almost too good to be true. Maybe we need to look at it like this. Whatever made the president change his mind, it's terrific for the market and projects a bizarre level of power that would make Henry Kissinger, not President McKinley, proud. As for the fact that the change came about in six weeks, I say don't look a gift horse in the mouth. I'd like to say, as always, I'm Mark Sommelier. I promise you I'll find it just for you right here on Mad Money. I'm Jim Cramer. I'll 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.
Hey everybody, Conan O'Brien here with an ad about my podcast, Conan O'Brien Needs a Friend. I've had so many fantastic conversations with people I truly admire, people like Michelle Obama, Bruce Springsteen, Maya Rudolph, Tom Hanks. New episodes are out every Monday and we have a really good time. So subscribe and listen wherever you get your podcasts.