Mad Money w/ Jim Cramer 3/12/25
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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I do it with my friends. I'm just trying to make a little money. My job is not just to entertain, but to educate, put it in context. Call me, 1-800-743-CNBC. Tweet me at Jim Kramer. Today, I'm going to try out a new thing. When everything finally has got tariffs on it, I think the market will be up a great deal. Because the last few of our trading partners buy anything from us anyway, so they can't really retaliate.

Yep, I'm thinking it may be starting to dawn on people that President Trump is trying to do the right thing on trade. It's just that he's approaching the issue with such rancor and flippancy that it's gotten too nasty for the average American to understand. Now, though, as we adjust, bargains are being revealed, being created by a trade war that few understand, which is how I think we had a decent day. Dow dipped 83 points, but the S&P advanced 0.49%, and the Nasdaq gained 1.22%.

The perception right now is that Trump's tariffs will drive us in recession because our trading partners will shut down American exports, club the entire industries that we have, causing widespread layoffs.

The reality, sadly, is that we don't export enough stuff to truly be hurt by the reciprocal tariffs. It used to be a big deal when the Europeans slapped the tariff on Jack Dale's, which, even though it's made in Tennessee, is owned by Brown Foreman, which is based in Kentucky. That was a big deal because when Kentucky's own senator was a powerful majority leader, it meant something. Now it's a pathetic gambit because sales are going down for brown liquors anyway, and the Senate majority leader is from South Dakota.

Look, I've never been a true believer in the gospel of free trade. You know that. Our trading partners are always trying to get over on us, so I got zero objections to get one over on them.

But the president's rolled out this policy in an ill-advised way, creating a ridiculous amount of angst among our own people. Now, there's this old-fashioned notion that we could have new industrial smokestack plants coming here, or your goods are overly prohibitively taxed. All this could have been done, I think, in a quiet way, like it was done with Mexico, where the president actually got what he wanted. And Mexico's tricky because they actually buy stuff from us.

So the question is, can the market truly rally now that we've gotten used to these tariff-induced nervous breakdowns? Can we ignore them yet, since we aren't going to get anyone to open their markets to our goods anyway, and we are indeed largely a service economy? I don't think it's going to be all that easy, but I will say this. If the president were to patiently explain to the American people that other countries abuse us, dump their goods on us, and then show, again dispassionately, how shabbily we're treated, I do think the whole policy would be a lot more popular.

Sadly, that doesn't seem to be the Trump way. So somehow this whole fight turns into building some aluminum plants here, even though they're bad for the environment, expensive to run, while our trading partners try to crush Brown Forman stock and are doing a good job of it. Yes, I'm minimizing the actual tariff concerns here, but for decades, our government sold out American people, American jobs, so that we could get our hands on cheap stuff made overseas. That was the bargain. And to be fair, Americans love cheap stuff.

Trump wants to reverse this dynamic, but he never explains it that way. Instead, he makes it all personal and handles it in the most peculiar way. Hey, 25 this, 50 that. And it's driving people crazy, causing regular hardworking Americans to pull in their spending and worry about their jobs. And believe me, they are pulling in their spending rather quickly because the White House says it's needlessly frightened. Today, though, we saw what happens when the president speaks a little soft for Carrie's big stick rather than screaming loudly and clubbing the Canadians, who are generally pretty nice. Come think of it.

Most Americans can't figure out what Canada did wrong. Now, we thought the 51st Street, the 51st State thing line, that was kind of funny initially.

And nobody likes it anymore. Not a laugh line. Time to drop that. So let's go back to the stock market for a second. We had a lot of things go right today. First, the consumer price index came in softer than expected. Most of the components that were overheated are actually going down, by the way. That means the Federal Reserve has room to cut interest rates. Second, the Fed may have to cut. Because of all this hand-wringing geopolitical stuff about trade, people aren't spending as much as they used to, which means most retailers are going to miss their earnings estimates or give a weak forecast. Bad for them. But more rate cuts will be good for the market.

Third, it turns out the reason why we like tech is because we dominate in tech. And unlike everything else we make, the rest of the world can't do much about it, although Europeans try to tax our companies constantly. Trump's trying to stop that, too, but everyone ignored it when it was announced. Now, because of the smokescreen of Canada's electricity surcharge, we forgot what we like. Companies that actually do dominate the world are tech companies, and we started buying them again. What?

Fourth, we're most likely not going to get into a serious recession because the Fed can take action to prevent that. And even if the Fed does nothing, the market can recover once all this tariff stuff is behind us. And it will be behind us at some point.

So it looks like all the buying of those recession-proof stocks that's been going on, the J&Js, the Proctors, the Cloroxes, seems to have run its course. When those stocks ran, the industrials all got clocked. We see today that the inverse is true, too. Money's falling right back into the stocks and can do well in a decent economy. Now, I know the president said, I quote, what I have done, I'm sorry, quote, what I have to do is build a strong country. You can't really watch the stock market, end quote. Today's positive action implied that Wall Street may be thinking maybe we don't have to watch the White House.

Of course, there were some stupid things that happened today. The momentum meme stocks, the Palantirs, the Apple ovens. And yes, sadly, the NVIDIA's all went hard, as did so many stocks and companies that make no money whatsoever. The ones that are just about nuclear energy or space or time travel. I don't know. Boy, it was great to see the air come out of some of those for the last couple of days. But they're back.

The retail stocks, which are hostage to rancorous talk about aluminum and rebar, are still cascading lower, though. And there's a sense of manufactured unease here that's incredible versus, say, France, Germany, Spain, Sweden, Switzerland. Their stock markets are so far ahead of us that I'm getting embarrassed. The Europeans are running circles around us for the first time in 15 years. We should be ashamed of ourselves. Maybe we're too focused on rebar and aluminum cans.

Oh, and can we please stop talking about William McKinley? I mean, put him on a new $200 bill. Forget about him, OK? Or talk about the guy in the 10. He was a first pro-tariff leader. Does Trump really want to be the second coming of Alexander Hamlin? Kind of a cool guy, but, you know, didn't work out. Listen, I know we're not out of the tariff woods. The president won't let that happen, even though he could make a lot more progress by going about things quietly, like he did with the great success that was Mexico.

But I do know that nearly everyone on Wall Street thought Trump would be a champion of American business. Now I feel that only Elon Musk, the richest man in the world, is having any fun. Everyone else is just scared not spending. Bottom line, in the end, we'll probably need Fed Chief Jay Powell to save us, even if that's probably the last thing he wants to do.

Hey, let's go to Forrest in North Carolina. He's Forrest. Yes. Hi, Jim. Forrest, what's going on? Everything's going well, man. Just got off the golf course, and it's a beautiful day here in North Carolina. I'll tell you that. Hey, Dom, she was doing some great golf stuff today. A lot of people like golf. I've got to get more into it. You know, Ben Stoto is our chief scientist and research director. He's like the number one golfer in the whole world.

Ah, yeah. I just recently retired. Just recently retired. Oh, lucky man. I get to play a lot. Yeah, yeah. So, I've been listening to you, watching you on TV since Kudlow and Kramer back in the 90s, man. I lived in California. Holy cow! Which one of us went to work for the president? It's a quiz.

So I was going to ask you about ExxonMobil. What do you think? I like Chevron better. I like Chevron better. You got Mike Worth doing stuff. The stock hasn't moved nearly as much as ExxonMobil. And it's Chevron's time because of that 4.4% yield. Hey, why don't we go out? Thank you for those comments. Let's go to Andy in Indiana. Andy. Booyah, Jim. How are we doing? Booyah. Booyah, Andy.

Hey, long-time listener, first-time caller, buddy. Oh, fantastic. Thanks for taking my call. Oh, no problem. No problem.

I have stock in Amazon, which I've had it since I've had it. It's been up. Let me tell you, give you a preview of tomorrow's show. I'm doing my 12 o'clock show for club members. And I'm saying the Amazon is my favorite stock of what used to be the mag seven before they broke up that gang. This is the equivalent of Yul Brynner from the movie. I don't know if people remember Yul. He was so cool. It's incredible. Only Steve McQueen was cool. OK, let's go to Chuck in North Carolina. Chuck.

Booyah, Jim. Booyah, Chuck. Thanks for taking my call. Calling from Durham, North Carolina. Nice 80-plus degree weather today, my friend. So beautiful, Durham. I like Windsor-Salem, too. Rose City. I know that stuff. What's up? There you go. Hey, I'm looking for a growth dividend play. I have a small position in Verizon. I wonder what your views are. I want you to keep that position small because it's terrible.

Sorry. It's true. I took a picture of a Verizon store last night and posted it on X. Verizon is not the stock. It's not the stock it used to be. AT&T is the stock it used to be, but Verizon's not. Verizon switched with AT&T. It was like a man with two brains and now there's one brain, and the brain you want is AT&T, not Verizon. All right. I think eventually, I don't want this to happen, but Jay may have to, FedChief Pal may have to swoop in and save us. Even though I know that's not what he wants to hear, it's just that

Too many people got scared. We're mad money tight. Travel's been triumphant, but after pulling back this year, I'm sharing the stocks that I think could keep sailing and the names that might not be clear for takeoff. Then I'm seeing if the sell-off in sports betting stocks could be worth gambling on. And Cloudflitter, symbol NET, rang the closing bell today on the heels of its investor day, opting into one of the greatest stocks that we've come across. So stay with Kramer.

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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After weeks of carnage, we finally get a decent session. That's largely a cooler than expected consumer price index reading. But this is still an insanely volatile market, as you know, as President Trump keeps ramping up the trade wars. Still, at this point, so many high-quality stocks have come down so much, they were bound to find some great buying opportunities.

I've been highlighting my favorites all week, and I've got a few more. I'm going to start with the once beloved Travel Space, a group of quickly going out of style in the Wall Street fashion show. Like that, this was a true bull market. Now, for those who haven't paid attention, earlier this week, Delta Airlines slashed its first quarter earnings out of exciting, quote, the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, end quote, which they say drove, quote, softness in domestic demand, end quote.

in recent weeks. Now, for a long time, Delta was the best of the airlines, so you really don't want to hear that kind of commentary from them. Now, these guys cut their guidance ahead of an appearance at the JPMorgan Industrials Conference on Tuesday, and several other airlines immediately followed suit. American slashed its revenue outlook for the first quarter and guided for a much larger-than-expected loss. Southwest cut its revenue per available seat mile forecast. United said it's expecting its numbers to come in at the lower end of its guidance.

As a result, the airline stocks were eviscerated on Tuesday. But honestly, these names have already come down dramatically over the past few weeks. This makes them very interesting to me. After this week's bloodbath, you got a lot of them are down 35, 40 percent. So given all the newfound negativity, why on earth would I stick my neck out and recommend some cheap travel plays?

Look, as tough as these airlines, the updates were, the collective news, frankly, it wasn't that horrible, at least not if you listen closely. Let's start with Delta, which kicked things off with this guidance cut. Monday night, Delta CEO Ed Bastian spoke with CNBC's Philip Bowe on closing bail by night and explained that the domestic, corporate, and consumer spending, quote, started to stall, end quote, in February, mostly due to lower consumer confidence. But he also said he believes this week this is transitory. Plus, a weaker economy isn't all bad for the airlines. I mean, you have

I don't know, here's a silver lining. You can save a fortune on fuel costs when oil prices come down. And Bastion is pretty confident we're not headed for a real recession. Delta cut the revenue growth forecast from 8% to 4%, but it's not great. But in a recession, they'd be down double digits. Bastion also noted that some of the weakness came after a couple of high-profile air safety insists, like that tragic American Airlines crash in Washington, D.C. in January and Delta's own crash landing in Toronto last month, which thankfully had no fatality.

Unsurprisingly, it was American and Delta that had the worst of the guidance cuts this week. No wonder. Now, look at the others. United stock was only down 2% yesterday after they said they were going to hit the lower end of the guidance. And Southwest actually rallied after giving soft revenue per available seat mile forecast. Though that was likely due to some other announcements, including an end of the blanket bags forecast.

Fly free policy. These guys have gotten real religious trying to make money. JetBlue also rallied about 4% Tuesday after the low cost airline reaffirmed its first quarter outlook. That was surprising. So I don't think these airline updates were all that fatal for the industry. With their stocks now down 30 to 40% or more from their highs, I smell opportunity here. But let's be limited. I like United, which I think is planet Delta's the best running airline out there.

United CEO Scott Kirby still sounded very confident in the company's outlook at the JP Morgan conference yesterday. He said he continued strength in many parts of the business away from the weaker low-end domestic leisure market and government travel. The United Airlines brass also confirmed that many of the structural tailwinds, like much less industry capacity this year, they remain in place.

They also spent plenty of time explaining how they pulled away from the industry in many respects when it comes to efficiency. With the stock down almost 38 percent from its January highs, now trading at less than six times this year's earnings estimates, give me some amazing buying opportunity. What else in travel is worth taking a look at? Another one we're focused on. We've seen some big drawdowns for the cruise line stocks. The four majors are down 25 to 35 percent from the recent highs. I totally get why this is happening.

In addition to the broader consumer spending concerns, new Commerce Secretary Howard Ludnick recently threatened the cruise lines with higher taxes. Well, they don't pay any American taxes because they're domiciled overseas. So it's tough for me to square the heinous action with what we just heard from Jason Liberty, the CEO of Royal Caribbean, when he came on the show last week. First, Liberty confirmed that consumers perceive Royal Caribbean cruises as a better value than a land-based vacation, reinforcing my view that cruise lines can still do fine

fine even in a softer economy. Second, he signed his own bookings and on-ship spending data from recent voyages, saying, matter of factly, quote, that cash register continues to ring and be consistent, end quote. Finally, looking at longer-term, Liberty noted that this is so important. Understand this. Major, major ratio. The new supply, meaning new cruise ships, should continue to be limited for the next few years, which is positive for the entire industry's pricing power. At one point, you see the pricing power go down when they have a lot of ships coming. Plus, all together, I

I feel really OK about the cruise lines, the Royal Caribbean in particular. This had a 25 percent pullback from its recent high. Stock now sells for a very undermaning 14 times earnings. I like that. Hey, finally, one more quick one that I've been behind since it came public. Airbnb, the disruptor in this lodging industry. This stock gapped up from 140 to a new nine month high of 163 last month.

After the company surprised us with a much better than expected quarter, which prompted several analysts to upgrade the darn thing. Since then, though, Airbnb has given up all those gains and then some, falling back to 126 and changing after a few weeks of nasty trading. Oh, I like this one, too. So you're getting Airbnb's last quarter, which was fantastic, for free. And that's actually putting it lightly, given the scale of the decline.

Of course, I don't just like this one because it's cheap. I like it because it is a true disruptor in the industry and a long-term secular winner, given that Airbnbs become the preferred way for younger people to travel. And by the way, the brick-and-mortar rooms are so expensive. That's why I think the stock's worth buying in a week. Especially now that it's only up about $15 from its 52-week low.

I like Airbnb. Here's the bottom line. Even with all of this trade war turmoil, I'm not ready to give up on the beaten down travel space, which have been so good for so long. That's why I like United Airlines, Royal Caribbean and Airbnb. I think all are worth buying right here because it's kind of an amazing bout of weakness after a real big run. That money's back in right now.

Coming up, Kramer's giving you his take on sports betting names DraftKings and Flutter, and whether now is the time to score some shares. Next.

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Take the online sports betting space. Flutter Entertainment, the owner of FanDuel, a bunch of other overseas equivalents, has plunged from just under $300 to $234 in less than a month. Was it deserving? Listen, just last week, Flutter reported what I thought was a really good quarter. And we had CEO Peter Jackson on the show. He told I thought a great story. Even though Flutter's full year forecast came in a tad light, Jackson has some very good things to say about the beginning of the year. But the stock's been crushed. Look,

largely because anything connected to the consumer is suddenly hated. Now the consumer confidence is coming down because of geopolitics. I think this one's worth buying on weakness because the online sports betting industry looks very different than it did just a few years ago.

Back then, you had a bunch of different companies spending like crazy in order to take over newly legalized businesses. Now the smoke is clear. Flutter's the biggest winner. These guys have 43% market share in the U.S. That's incredible. Other than DraftKings, nobody else comes close. They're the winners.

Flutter was able to grow revenue in the U.S. by 32 percent last quarter. I love anything over 30. It's just fantastic. Keeping its sales and marketing expenses flat. As a result, they've been able to take a more disciplined approach to winning customers, leading to a lower average cost of acquisition while maintaining their market share. From what we heard last week, Flutter's payback period on customer acquisition is now below 18 months in this country. And that is gold.

See, it's great news because the United States is a promising market for sports betting. Not only do my fellow Americans seem to have a fondness for Gaelic, but some of our friends in other states aren't even allowed to participate yet. California, Texas, and Florida are three biggest states collectively holding nearly 100 million people.

They haven't legalized it there yet. Assuming these regulations are eventually relaxed, and I think they will be, because this is a great way for states to raise revenue, that creates an enormous growth opportunity for the largest operators. Now, when it comes to consumer sentiment, I'm not totally convinced that everything's falling apart. You know that from the top of the show. Even if consumers start to rein in their wallets a little bit, this industry might not be impacted all that much. CEO Peter Jackson was asked as much on the earnings call, noting, quote, our experience is that the business is actually very defensive, end quote. I found that surprising.

But he convinced me the implications of that are kind of terrifying. It tells me we got a lot of gambling addicts in this country. But, hey, that's one more reason to pick up Flutter on Weakness. There's another angle to the sport. Sports gambling is basically an incredibly cheap form of entertainment.

Today's consumer price index showed a 7.2% month-over-month increase in admission to sporting events. It just won't go down. It's one of the worst things that keeps going higher and higher. So maybe you're not willing to drop more than $100 on tickets for the Big East final at Madison Square Garden this Saturday, even if you might have a couple of weeks ago. But you can still watch the game for free. So why not throw $5, $10, $20, even $50 on the game and make it a little more interesting? We're going to lose your saving money, at least compared to going person to the games.

Now, I can't emphasize enough just how much this entertainment spending for some people is fantastic. A random afternoon game for the Phillies over the summer might not impact their World Series chance as much. But if I'm watching with a few friends and bet five smackers on a Bryce State home run, it's probably the most important thing in my life. Plus, we need to differentiate companies like Flutter from traditional casinos like Wynn or Las Vegas Sands, which are more reliant on the health of the consumer because they need people who are willing to pay up their pay for travel.

Keep in mind, before everyone started freaking out about tariffs, Flutter was doing great. These guys put up some record numbers for the finale of the NFL season. For those of you who aren't caught up yet, spoiler alert, Eagles won. Now, it didn't hurt, by the way, either, that the Saquon touchdown prop bet, you know, anytime touchdown, Saquon, so many battle now.

That didn't work. Better to have done Devonta. But either way, the game was a success from a customer engagement standpoint. Sixty point sixty point six million people. Sixty point six place bets on FanDuel up 19 percent from last year. I thought that was staggering.

While customer-friendly sports outcomes in the NFL have been a drag on all the online sportsbooks this season, favors kept winning, okay? But that's just part of the business. And I thought it was really fascinating. I don't know if you remember, the CEO, Peter Jackson, told us earlier this month, if we knew what was going to happen, it wouldn't be that exciting to bet on, would it? Nobody bothers to bet on the Harlem Globetrotters against the Washington Generals.

Even if the favorites keep winning at a record pace, statistically very unlikely, these companies can just, well, they can adjust the odds. Yeah, there's a reason that the House always wins, isn't it? But short-term losses are just part of the business, especially in a season as short as the NFL. Jackson also explained how the diversity of Flutter's business opportunities helped stamp in the NFL volatility. I

I bet a lot of people worried about those NFL numbers were surprised to hear Peter tell us that they've been making a killing on the collapse of Man City, the Premier League, this year. That's the British football equivalent of the Chiefs missing the playoffs entirely. But what do I know? Will Frost hellos in London, for heaven's sake.

Flutter's overseas exposure also helps us insulate the company in case there's really a huge drop off in U.S. consumer spending. Now, how about the number one competitor of these guys, the number two player, DraftKings? Now, I don't want to spend too much time on this one, even though I like the company very much, because we did a piece earlier this year about a potential short-term trade for the stock as we got closer to the Super Bowl. For those of you who follow the advice, well, you're welcome. The stock ran up AFL.

at almost 18% from when we aired the piece to when it closed on February 13th, right before DraftKings reported. And if you decide to hold, you got a nice 15% pop the next day. As for the company, they stand to benefit from the same tailwinds as Flutter. And while they have less market share than Flutter, you can think of them as a

1B option as the industry's consolidation into what turned out to be a fantastic duopoly. Why not buy both? The way we can take advantage of any potential market share loss from Flutter and DraftKings may be to buy both, but that's not being very diversified. We spoke with CEO Jason Robbins on several occasions. While I like Flutter, we have zero interest in betting against Jason because he's a gamer. Here's the bottom line. Now that Flutter and DraftKings have pulled back hard from their highs, you've got my blessing to go do some buying.

I am still a huge believer in the sports betting business. Just remember to play responsibly. See, I almost did this, but I don't want people to gamble excessively because it is bad. Let's go to Dana in California. Dana. Oh, my God, Jim. I'm so excited. Why? Jack Russell, Winnie Liu, and I watch you all the time, and you're the bomb.

Oh, thank you. I'm the bomb. I thought Doug Geerly from Toll Brothers was the bomb. I'm the bomb. No, you're the bomb. And I got to tell you, I looked at those pictures of you and when you were young. And I'll tell you, if I went to school with you, I'd be saying, hey, boy, you want to go out on a date? Well, get in line.

Thank you. I know you have to make this quick. So my question is, I feel like you can take all the time you want to that compliment. Go ahead. I'm sorry. Go ahead. Go ahead. My question to you is, I think I screwed up right after right before Carvana's earnings. I bought like 20 shares. And oh, my God, it's down. I know it's down so much.

Look, I believe in Ernie Garcia. I think the used car market is going to be very good because of the tariffs that are coming on the new cars. That's going to drive people to the used cars. I think you should stay with Carvana, if not actually buy more. I'm a believer in Ernie Garcia. He's done a lot of things right. We've liked him since the stock was about five. So anyway, thank you for the comment. The client comments. Wish my mom were alive. She would have loved that. Will in Florida. Will.

Mr. Kramer, thank you so much for taking my call this evening. No problem. What's up? So, Jim, with the recent downturn in the market and the fear of tariffs, this particular stock has fallen about 30%. Do I have to?

blessing in starting a position in the Shake Shack. You know, I looked at Shake Shack on this downturn and I said, you know what? Quality food, really good manager in Rob Lynch. What the heck is he doing at 87? I am going to tell you not only what I buy, but I actually make a substantial investment in this thing. If I had to buy 100 shares, you don't like to buy things all at once. I

I might even buy, I usually like to buy 25, then wait. I would buy 50 to 75 because that's how strongly I feel about Rob Lynch and that brand, which is fantastic. Great that you brought that attention to it. I should do some work on it. All right, now that, but I love Rob.

It's great. Now that the flutter and draft gains have come down from their highs, you got my blessing to use this volatility as a chance to buy these betting stocks. I'm surprised how quickly they fell, but consumer confidence has been crumbled by geopolitical events. Much more made money. What's it going to take for Cloudflare to get its groove back? I'm seeing if today's investor day could be a catalyst when I sit down with the CEO. Man, it was much higher. It was much lower, too. Then Tesla's had a turbulent week, but as it's rebounding for its lows, could the stock be primed to keep cruising higher?

Highly unusual. That's right. End of the show. No huddle with the legendary technician Larry Williams. He's giving me some data on Tesla that is going to blow you away. That's tonight's edition. And we don't forget tonight's edition of The Lightning. We've got a big show. Thank you.

During the market-wide meltdown over the past few weeks, the enterprise software stocks have been really hard hit, including some formerly red-hot groups like some in the cybersecurity space. Take Cloudflare, which soared from $66 in its lows last summer to 177 at its highs in February after the company reported a magnificent quarter. Since then, it's come down hard, pulling back to $119 as of today, even if it's now bounced a few bucks from its lows.

chance to buy what I think is a premium company that also has fantastic cybersecurity space. Well, I don't know. I say you take it not from me, but from Matthew Prince. He's the co-founder, co-chair, and CEO of Cloudflare. Just came off a very successful investor day meeting right here at the New York Stock Exchange. Mr. Prince, welcome back to MidMoney. Jim, thanks for having me. So tell me about how the day went, because you've got a great team, and I think you've got a very exciting company.

It's been an amazing day to meet with our investors, to get our team together, to be able to come back and ring the closing bell. The New York Stock Exchange, always such a really an honor for us to be in this hallowed space. And the real theme for today was accelerating change, accelerating growth. And that's what we're seeing. We're seeing such an amazing opportunity for Cloudflare, more and more large enterprises adopting our products and using the full suite of what we can do. Well, that's terrific. And I want to say for people at home,

Matthew came on October 2nd of last year with a level of confidence that was extraordinary. And I commented, I said, wow, you are very gung-ho. You said we were having a great fourth quarter and the stock was at 79. And then you moved on 100 points. So congratulations. The end of the, you had a very strong end to last quarter too. Yeah, I think that what we saw was just continuing demand for cybersecurity services and for network services across the board.

Cloudflare is a very unique network, one of the only ones that can deliver true network security and performance around the globe. And that is just continuing to resonate with the largest customers out there. What should people recognize? I mean, who really needs this kind of security? Well, how about Uber does? A DoorDash does? A Shopify? An Etsy? A Walmart? A Best Buy?

These can't afford to go down. They can't afford to have anybody come in and do a denial of service. That's exactly right. And you just listed a bunch of what are some of our real customers that it's been amazing to be able to get to know them, to be able to help them, to make sure that they are online, that their data is secure, that they have a great experience wherever they're expanding their business, anywhere around the world. And that's what we're delivering at Cloudflare. I think that's sensational. Now, I want to hear about this killer app for workers.

Because you guys, I've not talked to you about AI much. And this is your chance to do it because it sounds very exciting. So, you know, what we realized was that at Cloudflare, we had this unique network. And there are different parts of AI. One part is training, building the models. And we hear about open AI. We hear about Anthropic. They're doing amazing things. But the other piece is actually running the inference using those models. And our theory is that

Half of those use cases are going to happen on your device, on your phone, in your smart driverless car, wherever that is. But some models are going to be too big. They're going to cost too much. They're going to burn too much battery. And those then need to run, where's the next best place? And we think the next best place isn't going back to Ashburn, Virginia, or some big hyperscaler data center. It's actually running it in the network as close as possible. And so because of the fact that

Cloudflare's in more than 300 cities worldwide. We're within 50 milliseconds of basically every internet user on earth. We have become one of the default places to run those AI models. And today, over 1,500 AI companies are relying on Cloudflare and Cloudflare workers in order to build the future. Well, that's extraordinary because I didn't think there were that. I mean, two years ago, I don't think it was like that.

Now, another thing that people have to recognize, the number of HTTP and the number of, I just say, of episodes of terror, basically, that you stop per second. Yeah.

Yeah, it's remarkable. You know, we just in the last few days had a large organization that came under an attack. This organization literally does billions of requests per second through their network. We were able to onboard them in less than a few hours, get them on, have no hiccups on our network.

protect them from that attack. There really aren't any other networks that can do that as quickly, as efficiently, and without it causing a hiccup across the entire internet. And I'm so proud of our team for what we've built and how we can help customers every day. Now, how about helping customers who are afraid that their stuff is being stolen?

Because I look at a lot of sites and just say, you can appropriate anything. So therefore, the intellectual property just is dismissed. So you need to protect it. Yeah, I think one of the things that's really interesting about us is that what we're hearing from original content creators is that they're worried that the content they're creating, someone like you is creating original content every day.

And that's getting slurped up by AI systems. It's getting slurped up in between. And Cleffler really sits between a huge number, a huge percentage of the AI companies and a huge percentage of the content that's there. And we think that there's going to be a new business model for the future of the web. If the last business model was search,

In the future, we've got to figure out something better to make sure that original content creators are actually getting compensated for their content going into this AI market. This is the frontier. Matthew, I've got to tell you, I just presume my stuff is being given away, work really hard to do it, to preserve it. But once it's out there, it seems like it's fair game, but it shouldn't be. It totally shouldn't be. In an ideal future in the world, humans should get content for free. They should be able to see you, but bots should pay a lot for it. And if you talk to the smartest AI companies, they understand that that's the case because robots,

What we're seeing in AI is there's actually not much of a barrier to entry. Yes, cost is high, but if you can raise capital, then you're just seeing model after model after model leapfrog. I think in the future where these AI companies are actually going to get an advantage is by being able to license original content from great creators like yourself and have that be the thing, which actually means that one model is going to be differentiated from another. Wouldn't that be great?

I mean, that's the fair way. Now, one last thing that I think is really important. Very rarely do I see, oh, my God, there's someone. I can't believe he's working with Matthew. Mark Anderson, the guy from OuterXBC. You are attracting incredibly. How do you do it? Incredibly important names in tech. You're attracting. It's been 2024 was really the year of us just building out an incredible.

incredible leadership team. And I'm honored that Mark Anderson, who had been the CEO of a public company-- MARK ANDERSON: He was so great. DAVID ROE: --came back to run our go-to-market organization. CJ Desai, who took service now from $1 billion to $10 billion in revenue, came back to run product and engineering. Stephanie Cohen, who was one of the leaders at Goldman Sachs,

came and said, I want to be in strategy there. What I think is differentiating Cloudflare is our mission. Our mission is to help build a better internet. And today, I can't imagine anything which is more important. And these leaders are coming to Cloudflare because they see the opportunity, they see the mission, they see the growth that we have ahead. And I think that's setting us up for the next 10 years. These are people who all could be CEOs of giant companies, and they're coming to work here because it's a meaningful mission.

and a great company. 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? It's time for the lightning round. It's time for Tom in New York. Tom.

Of course. Yeah.

But it seems to be sort of unknown. I very rarely hear it mentioned in the media. My question simply is, do you think Gallagher is still worth holding? Oh, my God, yes. That is just a solid company. We used to call it in the old days, we used to call it a blue chip. Great company. Should have been doing stuff like that. You know, sometimes stocks are just kind of just quietly going up, and that's one of them. Let's go to Isaac in Nevada. Isaac. Booyah, Jim. This is Isaac in Nevada. How are you? Me and my wife are big fans of you. All right.

What's going on? I was wanting to know what you think about new stock. All right. So I've got to tell you, I came out hot on this one. I really liked it. I've been wrong. I don't know why. I thought it was just a really cool idea. You know, I think maybe it's like digital banking. I thought it was the way to go. So far, I'm wrong. I'm not I can't I I'm not going to repeat my my bullishness. Let's go to Sean in Virginia. Sean.

James Chilax, my man. You are a gentleman and a scholar, and thank you for your knowledge. Thank you. And a huge shout-out to your team for keeping the wild man on the rail. Team's fabulous. I'm going to keep him. I'm going to keep him. I like the team. But a long-time proud member of the club. But I do have a question because I'm going to have to train. See you tomorrow at 12. Okay. All right. Just like the rest of us.

And everybody's got it. Everybody wants to get rid of it. And it's trash. And king of the trash is WM, waste management. You know, I sold that for the travel service after making a huge gain, and I left 100 points on the table. That company is fantastic. They got some golf thing I'm trying to get to. Two people tell me it's fantastic. All right. Hey, why don't we go to Patrick in Florida, please? Patrick.

Hey, Jim. Yo. At the start of 2024, I decided it was time to cancel all of these subscriptions that I had signed up for over the years. But there was one subscription that I found to be particularly sticky and I was unable to cancel due to the usefulness of the product. Whether I'm home or on the go, this is the software that I'm using daily to tune into your show.

Jim, what are your thoughts on ticker F-U-B-O? You flatter me with that tuning into my show, but I don't like stocks of companies that just do nothing but seem to lose money. And that is in that category. So I have to say Ixnay. Let's go to Jim in Illinois. Jim. Hello, Dr. Kramer. It's an honor.

I was wondering if you could please share your thoughts about the 38.5 tender offer and also the longer-term prospects for Alliance Bernstein, A.D. I never understood why Alliance Bernstein is so low. It's absolutely, you know, it was weird. I mean, it's just a great company. All systems go there. Okay, let's go to Larry in Texas. Larry. Larry? You're up, Larry. You're talking to Jim.

Tim, me and my wife are big fans, man. I want to give a shout out to her real quick. I have bought a stock, Q2 of 2023. It has not done well for the last two years. This is an oxy.

Ox is not a great company. I know like Warren Buffett owns it, and that's just great, but it doesn't matter. It's got a lot of debt, and it's just not that great. And, you know, the fact that he owns it doesn't make it great. And I'm sorry to be, I don't mean to be like a naysayer, but geez, get a better royal. Okay, let's go to Nate in California. Nate.

Hey, Jim, how are you, man? I'm all right. How about you?

It's a lovely day. I'm happy to be on here. Hey, Jim, I got a question for you. So I'm looking at this stock. I've been looking at it for a little while. It's been getting beat up. It's a United States stock. I've been seeing a lot of politicians have been buying it, and they just announced a $10 billion buyback. Solid income or earnings per share in Q1.

Applied Materials, EMAX. All right, Applied Materials is number three after I like Lamb Research and then I like KLA and then I like Applied Materials. They have a lot of China exposure that makes people very, very worried. I think Tim Archer from Lamb is a better one if you want to be in capital equipment. But I've got to tell you, capital equipment is so tied up with China that I can't just get by it anymore, even though I love these companies. We've got to straighten things out with China. We just have to. Let's go to Savita. Oh, no, we're done. And that, ladies and gentlemen, is the conclusion of the

Lightning Round! The Lightning Round is sponsored by Charles Schwab. Coming up, is Tesla gearing up for a turnaround? Kramer is taking a look at the charts and seeing if now is the time to invest in the EV maker or if the stock is on the chopping block. Next.

Can Tesla, the stock, keep rebounding now that they've enlisted President Trump as car salesman in chief? This stock roared after Trump won the election because CEO Elon Musk spent a fortune to help put him in office. And Wall Street figured that being tied with Trump, payoff, right? In the last couple of months, though, the stock's just been obliterated. Now, some of that's because Musk's playing a much bigger and more controversial role in the administration than most of us expected and not paying enough attention to business.

Controversy is not good for sales. We don't like controversy, especially overseas. Some would simply that Tesla's a high-flying growth name in a market that lost all appetite for high-flying growth names, although today it seemed like it was going to get it back.

Now, yesterday, the stock started rebounding, and today it tacked on another 7.6%. So you've got to ask, could this be the real deal? Now, listen, it's hard to predict the fundamentals here, in large part, because Tesla trades on the potential of its self-driving technology, something I very much believe in, but that could be years down the road. It's also hard to put a value on your CEO being the right-hand man of the president. No one's ever done that. It's definitely worth something, but how the heck do you put a number on that? What's the P multiple on that?

So rather than trying to game this one out, you know what? I'd rather go off the charts. And I never do this at the end of the show, but this is really important because we're going off the charts with Larry Williams. He's a legendary technician and market historian who's been the best in the business since before I learned how to draw it. He's written over a dozen books, created a ton of proprietary technical indicators, and most important, he's got a stunning track record, especially over the past five years. And I revere him. Always have.

Larry's the one who called the COVID bottom, for instance, in April 2020, back when just about everyone was terrified that we'd be stuck in a prolonged government-mandated recession. And you know what he's doing tonight? He's calling the bottom in Tesla.

First, I want you to take a look at the weekly chart of Tesla paired with Larry's proprietary valuation model. According to this model, Tesla has finally reached undervalued territory. And when the stocks come down to these levels in the past, it typically attracts real buyers. It leads to a big bounce. Speaking of buyers, check out this chart of Tesla's paired with Larry's measure of professional accumulation.

Even as the stocks come down, this picture shows very aggressive buying, not selling, but buying. That's typically an arbiter of higher prices. Professional money managers have begun adding to positions while individual investors have been throwing in the towel. That's what you've seen. And it usually means that you should be buying alongside of these investors.

I agree. But is this the right moment to pounce on Tesla or could it have another leg down the brutal stock market? Okay, I want you to take a look at this daily chart with Tesla's true seasonal pattern in blue, okay? Larry loves to look at how stocks tend to trade over the course of the year. He goes over the history, then finds the seasonal pattern that plays out time after time. The true seasonal pattern in blue shows that Tesla typically begins rallying at this time of year. Sure enough, the stock's already going up. So I've got to tell you,

I'm with that. Now, Ari also likes to hunt for cycles that seem to be repeating themselves beyond the annual seasonal cycle. Now, he'll identify a bunch of these, then combine them together into a wave that predicts where the stock is likely headed. So here's what Tesla looks like with his cycle forecast attached to it. The forecast is blue.

On the way up, gray on the way down. Right now, it suggests that Tesla should be ready to rally, maybe furiously, with a pullback creating another buying opportunity around mid-June. Larry notes that we've seen this wave in Tesla stock numerous times before historically. Stocks rallied 80% of the time during this time period. I think that's pretty good odds.

So if you believe Larry Williams, and he's earned a lot of credibility over the years, then this is a gentleman's start to your electric engines moment for Tesla. Assuming he's right, the stock's rebound over the past couple of days is just the beginning of a huge move. And I got to tell you, I'm with Larry. I like to say, as always, bull market summer. I promise I'll find just for you right here on Man Money. I'm Jim Graber. See you tomorrow.

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