Mad Money w/ Jim Cramer 6/10/25
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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I've been with my friends. I'm just trying to make a little money. My job is not just to entertain, but to put it in context. So call me at 1-800-743-CNBC. Tweet me at Jim Kramer. If you have analysts covering your company, those analysts have expectations. And if you miss those expectations, your stock goes down.

But if you have no analyst covering your company, then there are no estimates. You don't have to worry about the fundamentals. So your stock can fly up on gossamer wings with no analyst any insight.

And maybe that's why we've got such a fractured two-track market. We see it every day, especially these kind of mildly positive days with the Alabama 105 points, S&P gained 0.55%. Now it's that climb, 0.63%. Not bad. Now this morning I was talking to my colleagues, Carl Kempthorne and David Faber, about providing value to our viewers so that you have to watch us.

If we don't, one day we'll find ourselves out of a job watching fresh-faced anchor simulations, reading the news about the stocks I am about to go over. Because it's what you want. I mentioned that our younger viewers and older viewers tend to focus on very different things, so we need to recognize the two-track market, but we've got to embrace it. You can't reject it. My colleagues were clearly amused by the idea, but then we pivoted to interviewing Bob Iger, CEO of Disney.

who traced out his plans now that the company owns all of Hulu. The stock was around $115 when Iger started talking, and by the end of the interview, at least apparently by the day, it was at $118 and change. That's a tour de force performance. The kind of value added this network proudly provides. I felt great about it.

But I could feel the contempt that many younger investors have for what I think is a very strong kind of journalism, where we flesh out what really matters to an iconic big capitalization stock that has everything to do with linear television, ESPN, exciting movies, cruise ships, theme parks. Now, it's Disney for them to say, who doesn't want to know about that? Well, how about the people who just stopped going to Disney World with their parents and it's the last place they would ever be caught dead at?

What do they want? Honestly, I don't know if young viewers necessarily want anything from us at all. We are people who shine light on things. And sometimes they don't want light shine. I think they prefer the obscurity their stocks dwell in. A lot of younger people tend to get excited about, well, stocks that aren't even covered by analysts or the mainstream media. Instead, you know where they're covered by? Reddit.

And then it's done in the most cursory, cheerleading way, which is unfortunately what many of these people want to see and I know I can't do. For me, Reddit's very important as a resource for what people care about. But the younger cohort seems to take what they say as gospel. So let's go over what they like, what maybe you're fascinated by, what so many of you are wanting to, let's say, buy, buy, buy before they take off. First, the important groups, the ones I'm asked about all the time in the lightning round.

One is anything crypto, right? Further, they love Mr. That's what we used to call it, M-S-T-R, now MicroStrategy, now Strategy. It fascinates this cohort because it's a vehicle that buys crypto endlessly, often with more money. Now, a lot of people wish they were MicroStrategy, doing the same thing. Same with Coinbase, some of the newer brokers that I'm profiling later tonight, so stay tuned. But the new one, the Circle Internet Group, is loved because it's a pure play on digital assets. It's talking about digital currencies, blockchains, the works. Oh, every buzzword imaginable.

But what they're really interested in are stocks that don't get coverage, even as they trade millions and millions of shares every day. Look at the volumes of these things. We all ought to be talking about them constantly. Stocks like Hut 8, Riot Platforms, CleanSpark, Cypher Mining, and Galaxy Digital Horrors.

Now, let me just say that these are all fascinating but unknown companies to me, except for Galaxy Digital, which is run by Mike Novogratz. Here's a company that specializes in all the stuff that young investors can't get enough of. Digital assets, cryptocurrencies, blockchain. Michael pops up on Squawk Box. He's incredibly articulate, as you'd expect from a former partner of both Goldman Sachs and Fortress Investment. He's basically a good guy.

When I think of this cohort, I wonder why we don't devote hours to this stuff, because there's a hunger for it like no other I've ever seen. Any stock that trades 10 million shares a day is worth covering. But there's no analysts covering them, and nobody knows anything about them. Wall Street ignores them entirely. Now that the IPO window's open again, I believe we'll see dozens of these companies come public, and they'll continue to go uncovered because they have no pedigree and no sponsorship. It's amazing how irrelevant they are to the older folks, even as younger investors can't get enough of HUD-AID.

Then there's the nuclear cohort. Sure, we know Vista. We know Constellation Energy, the big nuclear utilities. But every day we see that Oklo and that Cameco, that PWXT, someone asked about that, listen, PWXT Technologies, Centris, Talent Energy, NextGen. These are the ones that have people excited. They can't, they can't put them down. That's because the data centers use so much electricity that nuclear power is coming back. In reality, though, there will be no nuclear reactors for at least five years.

The stocks that people want are not stocks that I find investable. I prefer GE Vrnova because they're the ones that will build the reactors. And it's what I call a real company. But this crowd is repelled by the truth. They refuse to believe in and simply think I'm trying to keep people out of fantastic stocks, little stocks. I'm not. I just think that GE Vrnova builds new plants and that's a good way to play nuclear power building.

I mean, it's probably my trust. Finally, we've got the ones that I find is most controversial, quantum computer placement. These stocks are insanely popular among young people trading tens of millions of shares today. IONQ, D-Wave Quantum, Rigetti Computing, Quantum Computing. They're incredibly popular. IONQ traded 30 million shares today.

D-Wave Quantum traded 60 million shares today. Rigetti, 61 million shares. Quantum Computing, 65 million shares. That is insane. Not the volume, but the fact that there's so much demand for these stocks, yet most of the media and the financial industry pretends they don't exist. I don't want to do that anymore.

Of course, there's very little known about them and little analyst coverage. You have to do an immense amount of homework to figure them out. And after all that work, you might just discover it's meaningless because quantum computing, like nuclear power, is years away. But you know what? It's worth the effort. It's worth my effort. There are so many of these companies and so much opportunity for the one or two that actually make it. Let's look at it the other way. Let's talk about what old folks were interested in.

There's a company called J.M. Smucker. It makes coffee and jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms. We're getting no firms. 15 different firms. It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age,

And we went nuts for the weight loss shots. J.M. Smucker didn't seem to notice. They ran into the fire. They bought Hostess. That's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho-Hos may not turn very well. That's to say.

They're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smuckers talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business. All major firms. Now, do you think any analyst on Wall Street cares about Riot?

Are HUD 8? Or Quantum this, Quantum that? But you know what? No one, if they report a number, no one's going to be disappointed. I mean, there's 15 analysts who spoke who are disappointed. How many analysts are in D-Wave, Quantum, BWXT? These companies can say and do whatever the heck they want, and they aren't going to disappoint anyone because there's nobody on Wall Street who is watching.

You could decry it as the Wild West. You could dismiss these companies as nothing but hype. You could take, or how about this? You take a company that trades 50 million shares a day, and maybe you just try to shed some light on it. That's what I'm going to do. Here's the bottom line. I think relevance...

dictates that we cover the companies that are treated as irrelevant or even pariahs by the graybeards around here. It isn't true that no one cares. I fear everyone cares except those of us on Wall Street. We have to do better about nuke, about quantum and crypto because our younger viewers deserve better or we risk just plain old irrelevance. Covering smuckers, avoiding the rigettis, not my style going forward. Bill of Massachusetts bills.

Jim, I need your opinion on Honeywell. Do you think I should pick some up before the sweat?

The split's not going to happen for a long time, sir. And the stock just had a run. It had a very nice run off at 218 to 226. I prefer to see this stock, you buy the stock between two, I'd say 220 and 215. Because I think that a lot of the industrials right now, they've gotten a little too hot. But I do like the stock very much. But the split's really in, it's in split-fill purgatory. Let's go to Jerry in Massachusetts. Jerry. Booyah, Kramer. Booyah, Jerry. I'm...

Long time, long time ahead. I have a question on the stock Corweave. I bought in a position, a full position for me at just over 40 a share, and I'm not quite sure what to do with it. I am. I am. You sell half of it tomorrow morning and then you play with the house's money from now on. You never have to worry about Corweave again. And that is the way you do it. And that is the way I was brought up. And I ain't deviating from it.

Sell half, house's money rests. Congratulations, you have made a ton. Look, I think that relevance dictates that we shed some light on companies that Wall Street analysts don't want to cover.

just because you want it, younger people want it, and you deserve it if you want it. On Mad Money Tonight, Cisco is hosting its annual live event. I'm speaking exclusively with Chuck Robbins, the CEO, to hear about the exciting updates. This could be the old Cisco again, which went up and up and up. But first, here's Rob and I.

But now we have three similar publicly traded brokerage firms. It's time to dig in, tell the names, say what they're doing. Again, more stocks that you might want to own. And what a run we've seen from Casey's General Store. Sorting after earnings. Should investors take the plight after this thing out of such a big run? You know what? Let's sit down with the CEO. Why don't we let you figure out what to do? Stay with Crayon.

Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. 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.

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Indeed.com slash mad money. Terms and conditions apply. Hiring? Indeed is all you need. At this point, we have a pretty clear idea of who's who in the AI food chain. Nvidia for the core GPU chips that make technology possible. Ah, look, Broadcom. Got to appreciate it for custom accelerators. CoreWeave. Outsourced computing power. We like them a lot. OpenAI. Perplexity. Best chatbots, I think. But there's still plenty of market share up for grabs in the networking space. Think the equipment that connects all

the powerful servers at the heart of these AI data centers. These are huge clusters of machines who need heavy duty networking equipment. That's why I was watching when Cisco, the networking powerhouse, announced a bunch of new products for data servers to help them deliver, quote, secure, scalable AI infrastructure to drive growth and enable new use cases.

For those of you who remember our coverage from the NVIDIA's GTC event in March, these are the type of solutions that I was talking about when I sat down with Cisco's CEO, Chuck Robbins, and NVIDIA CEO, Jensen Wong, for a joint interview. So now that Cisco's revealed some of its latest and greatest products, let's take a closer look with Chuck Robbins, the chairman and CEO of Cisco. Mr. Robbins, welcome back to Bad Money. Thank you, Jim. It's great to be here. It's good to see you. And thanks for the kind words. Okay. Chuck, I've got to tell you.

There is, and I don't mean to compare this wrong, okay, because people are going to say I'm saying it point blank, but there was excitement in the 90s because we knew that there was one company that was going to dominate all of,

of internet networking. It was Cisco. And it always did. And frankly, it always has. It was the network that became boring, not Cisco. Now it seems like it's happening again, except for this time the customers have much more money. It's real. It's not going away. And you don't need to look any further than what happened to you in the Gulf. I think you should tell us what happened in the Gulf because it wasn't just about Jensen.

Well, thank you, Jim. We talked a lot today at Cisco Live here in San Diego about the fact that networking appears to be cool again. And the networking requirement in both the hyperscale, the cloud infrastructure that we're building out, but

especially in the enterprise. And we'll talk a little bit about that with these agentic workflows that we're seeing enterprises begin to deploy. But what happened in the Gulf is we signed several deals, one with G42 to just work more on their core infrastructure in the Emirates, in Abu Dhabi. Second piece of that was we were announced as a strategic technology partner as part of Stargate UAE,

with obviously NVIDIA, Oracle, OpenAI, and then also in Saudi,

They stood up an entity called Humane that is going to be responsible for building the AI data centers in Saudi Arabia. And we're spending a lot of time with them and are going to be a key infrastructure player for them as well. So it was a it was a very successful trip for us. Oh, I think it sure was. I want to talk about something you just mentioned. The chatbots intelligently answering questions means you can't have got to have speed. OK, you got to have security. You got a big infrastructure. That's Cisco these days, isn't it?

Well, if you think about where we were a year ago, Jim, we really were about chatbots and we were about efficiency and information queries. And now we're moving into a genetic where tasks get performed on your behalf.

And these agents will actually communicate with each other. And in order to do so, they need an incredibly robust network infrastructure. They need security. They need low latency. And that's where we come in. We do all these things. And this is where robotics is going to come in ultimately. And it's going to require an incredibly, incredibly high performance network infrastructure. And as you said earlier, we made probably the largest payload of innovation announcements ever.

at one event today than we have as far back as I can remember. Chuck, the event today and what you introduced, will we get to the point where if someone says, you know what, a bank, a huge bank, says, I want to get, I got to get everything brand new. I'm going to Cisco.

That's the stop. You know, you and I love Michael Dell, okay? We love HP, the terrific guys. We always think, I don't know the guys from Supermicro, but they seem like nice people. But we used to go to Cisco in the 1990s and the early 2000s to figure out what to do. Is it where you're getting the phone call now and just saying, Chuck, help me out?

Well, the case we made today was that as you get into this agent-to-agent communication in the infrastructure and the enterprise, you're going to need to be able to do security real-time in the network. You cannot introduce latency by sending them to some appliance. And so what we talked about was deep fusion of security into the network. And as I pointed out to our customers today,

We're the only company that has both networking and security. And I said, none of our networking friends have security and none of our security friends have networking. So if you buy into the thesis that you have to have security fused into the network, then we're really the only player who can actually deliver that. Did you know when you bought Splunk this was going to happen? Of course I did, Jim. How perfect is Splunk for this time? How perfect was that? The brilliant guys that were at Splunk who were really looking to team up with somebody.

Well, you know what's amazing is we announced this product today that has a generative user interface that actually gets established as you submit queries. And it actually begins to bring the vision of why we acquired Splunk to life because we believe we can actually provide more insights to our customers based on what's happening across their technology infrastructure. And so we released a generative interface.

user interface today where you can make queries and actually build real-time dashboards. And they're querying Splunk. They're querying the traditional network technology. And the whole vision was that we could bring all that to life in an easy way for our customers. And we launched a major part of that today at Cisco Live. So is it observable inside for the customer? Can the CEO do it? That's exactly what it is. It's observable, right? That's what happens. Yeah.

It's dynamic observability is what it really is. Well, I've got to tell you, I think that sometimes because you're not part of the semiconductor group and because you're not part of the CrowdStrike Palo Alto group, it's just like what you said. Some guys don't have the security. You're kind of caught between. And yet I think that's about to change, Chuck. I think that what's going to happen is there's going to be a company that knows how to do both. And then there's other companies.

and you've had to bring them in separately. I think, Chuck, that it's just such an advantage to have one company to be able to do everything now.

Well, the other thing, there's two other big things we announced today, Jim. We announced an entire refresh of our enterprise networking portfolio today, an entire refresh, switching, routing, wireless access point. And they're all going to have integrated CPUs in the switching platforms so that you can actually do this security in line with the network. So think about we haven't had a full networking refresh since 2017. So that's the first piece. The second piece we also announced were the last two.

few firewalls that we fully refresh. So we now have an entire firewall portfolio that's completely refreshed. We announced today that firewall logs coming out of Cisco Firewalls can be ingested into Splunk at no cost.

So there's just a lot of stuff that we announced today that we think will lead customers to embrace a lot of these new solutions. Now, I know where we are in the quarter. It may not be quotient to talk about all this stuff, but I have to believe that you're traveling all over the place. The ton of business is much better versus the gloom, like when you're at the business roundtable, you're at the council, and what happens is everyone's talking about gloom. In the meantime, they're doing a ton of business, right? Well, there's an element of this with AI that...

you know CEOs and customers realize that this is moving at a pace like nothing we've ever seen you reference back to the bill on the Internet in the nineties this is obviously move at a much faster pace is changing more rapidly it's evolving every in a few weeks

And so, to be honest, there's a desire to make sure that you keep up with what's going on and that you're investing into these waves. But there's also an element of if I stop investing and stop doing the things that I'm doing, I have risk because if my competitors continue to invest, then they can create competitive differentiation through this technology. And most companies don't want to allow that to happen. So it's an area where we see investment continuing rapidly.

it has to be the very last thing anyone would ever consider cutting right now, given the importance of this technology. Well, look, congratulations to the new products. We haven't had that refresh in a long time. That is very good news for long-term shareholders because it's going to pay off in multiple years of sales. Chuck Robbins, chair and CEO of Cisco. Chuck, thank you for coming on the show. Thank you, Jim. I'm going to be back after the break.

Coming up, a different kind of retail craze? Kramer's diving into trading platforms Robinhood, eToro, and Webull, seeing if it's time to buy in amid volatility in the space. Next.

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Serious allergic reactions and severe eczema-like skin reactions may occur. Learn more at 1-844-COSENTIX or cosentix.com. Ask your dermatologist about Cosentix. Given the insane level of enthusiasm for the IPO of this Circle Internet Group, that's a stable coin issue we just covered. I think it's time to take a closer look at some of the recent trading platforms that have quietly come public over the past couple of months because they're so darn exciting.

On April 10th, as everyone was focused on the Liberation Day fallout, Webull came public via SPAC murder. The weird thing about this one was that the company didn't even put out a press release until six days later. Like most SPAC plays, this one started at $10, but Webull shot up to just under $80 on its second day of trading, but closed that day at $62 and changed, finished that week at $26. Oh, it's been drifting down ever since. It's now at $10 and change. Well, we've seen that pattern before. Remember the beginning of this decade?

All right, about a month later, on May 14th, another really popular trading platform, this one's called eToro, debuted on the NASDAQ with a traditional IPO, and the market lapped it up. eToro was originally looking to sell 10 million shares at 46 to 50. In the end, they sold 11.9 million shares at 52, like $2 above the top end of the range.

And the stock did well, very well. It opened at $69.69 on its first day. Nice. Hit a high of $74 and then closed to $67. All right, well, it cooled off a bit at the end of the month. It started running again in June, climbing to the mid-70s before getting clobbered today, falling back to just under $67. Wild trader. Suddenly, if you include Robinhood Markets, we have three publicly traded trading platforms.

that are incredibly popular with younger people. So I think it's time we have to take a closer look. Just like I said at the top of the show, we've got to start doing this. After all, the younger generations are set to inherit something like $100 trillion over the next 20 odd years. And I think many of them will put that money to work on these platforms, not the ones that I grew up with. Let's focus on the ones that are now.

You know Robinhood. That's our returning champion. It's best known and best vetted, given that it came public way back in 2021. They disrupted the retail stock brokerage industry with their commission-free trading model, which everyone else eventually moved to. Look, we introduced them first, to be honest, because I love their app. We saw them when we were out in San Francisco. Today, Robinhood offers stock, crypto options, futures trading, as well as many other financial services to U.S. customers, while also offering stock trading in the U.K., crypto trading in Europe, and

By the way, they have a great IRA program. Their stock's been an incredible role over the past 18 months. And on a more subjective note, I think management's really matured. When we spoke with CEO Vlad Tenev earlier this year, I was struck by how big he's thinking. I wish more people in this industry thought as big as Vlad did. Next, Webull is the youngest of these three brokerage firms. It's founded in 2016 with U.S. operations starting in 2018. Though the company's technically now headquartered in St. Petersburg, Florida. This

This was originally a Chinese outfit and it's still facing some scrutiny for its ties in China, including scrutiny from Congress. Weibo now operates in 14 markets across North America, Asia Pacific, Europe and Latin America, offering trading in global stocks, options and futures.

They ditched crypto trading in 2023 as part of the preparation for the SPAC merger that allowed them to come public. But the company seems to be creeping back into crypto now that the deal's closed, including with a new partnership with an alpha called Kalshi. That's a prediction market firm announced earlier today. People are very excited about prediction markets. To me, they seem like draft kings. What do I know? As for eToro, this is an Israeli company founded back in 2007 by two brothers, including current CEO Yoni Astia. They have operations in 75 countries.

offering a assortment of stock, crypto, options, and futures trading. eToro also has something unique. It's called CopyTrader.

People love this thing, but let me give you, it lets you passively match the moves of other traders. In other words, it lets you piggyback on somebody else if you don't feel like thinking yourself. So how do these three brokerages, the platforms stack up against each other? First, let's take scale because scale is often what dictates what's going to win in a brokerage area. At the end of the first quarter, Robinhood had 25.8 million funded customer accounts.

180 billion in assets under custody. Webull had 24.1 million registered accounts.

But it only had 4.7 million funded accounts. Keep that in mind with 12.6 billion in customer assets. eToro had just 3.58 million funded accounts with 14.8 billion in assets under administration. Robinhood obviously is much bigger than the other two platforms. Webull and eToro are roughly the same size. One thing to note here, there's a huge disparity between the total number of Webull accounts and the much smaller number of accounts that have any money in them.

Now, what about the financials? We just want to look at revenue growth and some measures of profitability. But comparing the three companies, apples to apples, is surprisingly challenging because they all use different key metrics. For Robinhood, we're going to use the company's total net revenues.

result. And for Webull, we use total revenue result. But for eToro, we have to use the company's net contribution, which is similar to the net revenue numbers from the other two. First thing you notice, Robinhood is head and shoulders above the rest in terms of both revenue growth and profitability. eToro has slower growth, but much better profitability than Webull, although Webull has been improving rapidly.

For Robinhood, we see really impressive numbers across the board. I mean, they're doing so well. For Webull, we see the impact of the company dishing crypto in late 2023 ahead of the deal to come public. Revenue growth disappeared in 2024, and the company's already modest profits all but disappeared. In the first quarter of this year, however, the numbers improved as they got past a tough comparison period. Revenue grew 32%, not bad. Adjusted operating margin jumps significantly. Very good.

And for eToro, what we see is a big improvement in the financial results last year, especially in the profitability front, which makes sense as the company has said outright that it's changed its strategy after its failed deal to come public a few years ago. In the first quarter of this year, though, revenue growth slowed significantly and the company's profitability even regressed significantly.

Putting it all together, Robinhood remains the clear best of breed. What can I say? Now, this eToro, the obvious number two, profitability is nearly as good as Robinhood's, even if the growth is slower. Weeble, frankly, I'm putting that one on the do not touch list, OK? Even if it could get over this congressional interest in their ties to China, I still can't get past the fact that Weeble has 24.1 million registered users.

but just 4.7 million funded accounts. What is that about? That tells me that people are treating their Webull account like their DraftKings account, depositing some money occasionally, placing a bet, then moving on. Hmm, good comparison. So Robinhood and eToro are the only two I'd even consider. Robinhood's a better business, but eToro has a much cheaper stock. So for 27 times this year's earnings estimates, basically half of Robinhood's valuation is 55 times earnings. The truth is, as much as I like the overall Robinhood story, and you know I do,

I guess I get a little nervous about a stock that's just run 192% and another 95% gain year to date. I mean, hold on. That's too much. On the other hand, eToro got pulverized today after reporting what I thought was a good quarter, in part because the stock had already run up dramatically from where it came public. These stocks, they just run up. You know what I mean? So that run up came down. Look, I'm...

You know, I'm too tough on Robin. I think Robinhood is terrific. It's just that it's the stock price. It just doesn't stop. And that gets me worried. But, man, the company's good for the bottom line for the long term. I think Robinhood is the safest way to play it, even as I prefer to wait for a pullback before pulling the trigger. Hey, why don't we go to Ian in Florida? Ian. Hey, Jim, how you doing? I'm doing well. How about you? I'm doing great. Thank you, Jim.

Jim, I'm down here in Florida, and I'm an Investor Club member, third-time caller. I want to thank you for everything you do. Oh, thank you. Jim, I wanted to ask you about a company that's kind of similar to CoreWeave. They rent out GPUs, and it's been a big mover lately. It's called NBIS. What do you think about it here? Okay, I went to their booth when I was out at the—

the NVIDIA GTC conference. I was very impressed. I think they do good things. I wasn't prepared to be impressed, frankly, because I like CoreWeave. But let me just tell you how I feel about this. This stock has kind of like what I talked about at the top of the show. It has an allure. People like it so much. It doesn't have a lot of people writing about it. It's very hard for it to disappoint. I'm actually going to say that I think Nebius is going higher. There we go. And thank you for being a member of the club. And thank you for calling me. That's the third time.

I think Robinhood is the best way to play the rise of retail investment, but I'd rather see you wait for a pullback before you pull the trigger to buy it. Maybe in the 60s? Much more money ahead. Putting my post-earnings exclusive with a company that I cannot believe is on our set.

Casey's General Stores. Could a delicious breakfast pizza help make your portfolio some dough? I'm checking in with the CEO of the convenience store chain. And close viewers know how much I love the AI chatbots. But I found an area that they still can't seem to master, and I'm going to reveal it. And of course, all your calls, rapid fire, tonight's edition of The Lighting Round. So stay with Kramer. ♪

Sometimes I get so excited about stories. It's hard for me to contain myself. I want you to be thinking about the circle Casey's general. Okay. It's Casey general store, the Midwestern convenience store chain. That's beloved for its pizza, especially. I had some today in the afternoon, of course, breakfast pizza, imagine a bacon, egg and cheese sandwich, except that it's pie form. And it is delicious. Now I first covered this one positively back in September of 2023, since then the stock's given us more than a 75% gain. It's crushing the SP. Uh,

And Casey shot up another 12% today. It was something to behold. After reporting a terrific quarter last night, including a monster earnings beat, strongly expect the same for sales, even a dividend boost. But do not take it from me. Let's check in with Darren Rebellus. And Darren is the president and CEO of Casey General Stores. Get a better read on this thing, Darren.

It is an honor to have you in the shop. Thank you so much for having me, Jim. I'm really excited to be here. All right. Well, I before I get into the particulars, I have to tell you, I'm just going to put it out there. I had the pizza when I was on the road from Houston and Dallas, and I had some again today. The team had some. Just tell people that you make the best pizza in the country. We do make the best pizza in the country, Jim. And it's not an accident either. It's fantastic.

First of all, it's because of our great team. We have 49,000 team members in our 2,900 stores. We're working hard every day to deliver that great pizza. But we do it from scratch. And that's something that a lot of people don't realize. We have kitchens in every one of our stores. We make the dough from scratch. We use high-quality ingredients. It's made to order. And when you do it the right way, it's just delicious.

You know, it's kind of we got a cult following because of that. Well, you know, it's something in your rural areas. But when I read about who's coming, it's a cult, maybe a cult following. But it doesn't matter what what your wealth is, whether you're rich, poor, immediate. A hundred thousand dollars. People come into your place all the time. Yeah, absolutely. In fact, you

You know, we get stronger ratings on value from our higher income consumers because they're just gravitating towards the quality. They really see that value proposition there. And so they're choosing us because of the quality. Well, I mean, just empirical evidence. I thought that you were like Costco. Sure enough, in your deck that you put together of the companies of one year, five year and 10 year EBITDA growth of 8 percent. There it is, Ali's, which I love. I'm a member of the army. Costco and you. That's it.

And, you know, Jim, and that's something that's really underappreciated about our company and our stock in particular is that we've been able to sustain these results over many, many, many years. And I really attribute that to the fact that our plan is pretty simple. We focus on our food. We focus on store growth. We focus on running our business efficiently, all underpinned by our great team. And it's all in our control. I loved how simple it was.

accelerate the food business, grow the number of units, enhance the operational efficiency. Clear as day, your plan. Clear as day. And everyone can buy in because it's so clear. That's right. And I'm a big believer in just keeping it simple. And if our team can understand what the goal is, what the objective is, and we can get everybody pointing in the right direction, we can execute that. And I think they've demonstrated that over a number of years. I think other than Kirkland brand of Costco, you're

well, they used to call them house brand, private label, Casey's, must be beating the regular guys. Well, we certainly think so. And we really have set a high bar for quality on our products. They have to be better than the national brand equivalent. And if we can't get it done, then we don't get it in the assortment. And one of the interesting things is because we have such a legacy with our prepared food and our pizza, that

people automatically assume anything we put our name on is going to be high quality. So we take that responsibility seriously. We have to deliver on that quality, and I think we have with our products. Okay, so let's talk about America for a second. Did we discover value somehow? We didn't used to care about value. I think people say, if it doesn't have value, I'm not going.

Yeah. You know, I think that's just a reflection of the last several years of what's gone on in the world. You know, coming out of COVID when we had some supply chain challenges and inflation took off, I think that was a shock to the system. And then you compound that with interest rates going up. Right. It really shook people loose. And so now even if you have money, people are questioning why they're paying for something that they don't think the value is quite there. And

And so that's why we lean into quality. And we've been able to keep that value proposition and our guests keep rewarding us with more visits. OK, so you're in a lot of towns, but there's a lot of rural space left, right? I mean, there could be with this formula thousands, thousands. And I'll just give you one anecdote. So in the state of Iowa, where we're based.

Population of 3 million people. We have 550 stores in the state of Iowa. So now we just expanded into Texas with an acquisition. Which was a good acquisition. You didn't pay that much and everyone seemed to be working from day one. It's been a great transaction for us. Must have been nice people. Very nice people.

Jim, the population of Texas is 30 million people and we have 170 stores there. We have white space for days in Texas. I don't know anyone who has a roadmap like you, sir.

When we fell in love with you, we did fall in love hard. And I didn't expect it was going to have this good a quarter today. But you've got something special going on. And you see it very rarely in American business. You've got people who are fired up. You've got a clear vision. You've got a lot of white space. You've got good leadership. And I want to congratulate you for doing a great job. Well, thank you. I really appreciate that. That's Dan Rebellas. He's the president and CEO of Casey General. The symbol is C-A-S-Y. Do not be put off by the size of the jump today. It's not too late. In fact,

It's early. And then Mike'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. And then the lightning round is over. Are you ready? Let's start with Ron in Pennsylvania. Ron.

Hi, Jim. Ron, what's shaking? First time. Yeah. First time, long time. I like first time, long time. Let me help you. Yeah. Yeah, I'm doing just a little bit better than amazing. All right. Okay. All right. I'm calling about a company that's doing business with Toyota, U.S. Air Force, Sky Force in Dubai, Delta, FAA certified Part 141. You probably know what I'm talking about.

Joby. Yep. You know what? Remember a couple weeks ago I said I was done with the knocking and the ones that don't make money. Joby's real. I think Arch is real. I think Bowen's working on the same thing. But Joby is good. And I'm going with it. And I am with you. And thank you for your first time call. Joby's okay. I'm even playing some Joby music. Let's go to Don in New Jersey. Don. Booyah, Mr. Grammar. Booyah. What's up, Don?

I need some expert advice. Well, you can't be the expert. They call me the X. Okay, I've built a nice size position and arm holdings.

Well, you're in good shape. That's Rene Haas. The only thing Rene's doing wrong is he is a Las Vegas Raider fan, which I know there's no accounting for taste when it comes to football. But his stock is doing very well. Why? He is a partner of NVIDIA. And don't forget it. Rene Haas used to work at NVIDIA. They are very tight together. I'm going to Kumar, New Jersey. Kumar.

Hi, Jim. How are you? I'm having a good day. How about you? I'm doing good. You know, you found us a lot of companies and I think I invested in Celgene with your recommendation a long time back. So I have another company here, Pura Oncology. Pura Oncology.

Kura, Kura. Nope, I'm going to just plan out, flat out admit, Kura I do not know. I don't know Kura from Kumbaya. I have to learn more, and then I have to come back. Because I'm not going to just say, hey, you know what, that Kura, love it, because I can't do that. Let's go to Ryan in Rhode Island. Ryan. Hi, Jim. Mega Booyahs from Rhode Island. I was just wondering about Papa John's.

You know, Papa John's, there's only six ingredients in a Papa John's pizza. I find that quite incredible. Todd Panagore runs it now. The previous CEO went on to Shake Shack. He's crushing at Shake Shack. I think it's a wait-and-see situation with Panagore and Papa John's. So I'm not going there yet. I'm not saying yes. And that, ladies and gentlemen, is the conclusion of the Lightning Round! The Lightning Round is sponsored by Charles Schwab.

Coming up, is AI technology really ready for prime time? Kramer's giving you his take on the state of the chatbots like Grok and ChatGPT, next.

People constantly ask me why I go on all these generative AI sites. There are a host of reasons, including time constraints, where I need summaries, general information that's more in-depth than you're going to get from a search engine. Summarization is where these AI platforms really shine. When I'm in a jam going on a squawk on the street or when I try to learn a half dozen news stories a day, the summaries of the conference calls and a simple prompt of how does Casey General make so much money is ideal.

But there are other things generative AI does terribly, and they don't warn you about that on the packaging. You can't ask them to calculate the returns of stocks that have been adjusted by splits and spinoffs. In fact, they're awful at anything that involves arithmetic. You might think this is common knowledge, but there should really be a warning right on the label. Let me give you just a perfect example.

The prompt is, if I invested $1,000 in the stock of GE on October 1st, 2018, what would it be worth on December 31st, 2024, including all the dividends and spinoffs? I picked the start date because that's the day Larry Culp started as CEO, and I wanted to include his great work in my forthcoming book, How to Make Money in Any Market. Not till September.

Now, it's actually a pretty tricky calculation. You see, GE had an eight for one reverse split. There's a dividend to consider, even if it's a small one. It's spun off GE Healthcare and GE Venova, its energy business. And you only got one share of GE HC for every three GE shares and one share of Venova for every four GE shares. Complicated. Still, you'd think artificial intelligence would be perfect for tracking dates and doing arithmetic. But no, they can't handle this stuff. It's too hard for them.

I put that prompt to Grok, Super Edition, Perplexity, Claude, Gemini, and ChatGPT, Advanced Edition. Let's start with the worst, Claude. Tied me up for six minutes checking 286 stories and then blew me off of the screen page and said, your idea is amplified. I'm not going to have them amplify my ideas anytime soon. Grok spent 40 minutes trying to figure it out, and I gave up on it. Then I came back a second time. I didn't think Grok was all that bad. He said, no time. Boom, $28,491. Prompt answer, simple.

Meta was exceptionally fast. No time wasted. Gave me an answer of 13,975. Not as high as Crocs, still a good return. Chat GPT, the advanced version, banged out 3,589. Still not bad versus the S&P, but not a home run. Finally, Perplexity said Colt's plan got you $3,210.25, lowest of the six. Now, we were uncomfortable using any of these numbers, so we decided to take the time and do it by hand.

The real number turned out to be $2,874.86. No wonder I like perplexity for Apple. It was only off by about $300. I mean, think about this. The S&P gave you $2,229 after that same period. So while the G collection turned out to be great, it wasn't all that much better than the broader market. Again, these generative AI models simply aren't built to calculate anything, but you'd never know it if you looked at their websites.

I wish they had put a warning label and said, for the love of God, please don't ask me about numbers, especially when you are as far off as Grok or even Meta. At the end of the day, if you can't trust them to make basic calculations, what can you trust them to do beyond basic summaries? You know, I'm working as a bank teller. I wish that the ultra high end ones could have just said, too bad, I can't do it. Sorry. That would have been much better than what happened here. They all sounded so correct and they were all wrong. Just embarrassing how mistaken these much valued systems really are.

even as each tells you that these kinds of return calculations are now their bread and butter. Were they using the wrong facts? Did I ask it wrong? Was it just not attainable by machines? In the end, these chatbots exist to spit out words, not calculations. Until the hyperscalers figure out how to make that possible, I beg you, spend 40 minutes doing your homework by hand and get it right. I like to say there's always a bookmark somewhere. I promise to find it just for you. I'm Jim Cramer. See you tomorrow.

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