Mad Money w/ Jim Cramer 4/22/26

What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women changing the game. One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just got to think big to accomplish big things. Julia Borsten hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts. My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a low market somewhere, and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer. I'm just trying to make you some money. My job is not just to entertain, but to do some explaining, educate you. Call me at 1-800-743-CBC. Tweet me at Jim Cramer. I missed him. Sorry. I missed it. Next. Tonight, we are going full-scale self-remonstration, 100% flagellation, a bonfire of second-guessing. The cultural revolution as brought to you by Jim Cramer. As the market once again exploded higher. The Dow getting 341 points, just be jumping 1.05% to a new record high. And the Nasdaq poll voting 1.64%, also to a record high. House of pleasure. It's time to trash myself and talk about the ones that got away. Since part of my job here, I run this travel trust for the CBC Investing Club. Don't hesitate to join, get the free book all signed and everything. I do it to demonstrate how a professional manages money. And I do so with an open hand. When I started this educational product more than 20 years ago, lots of people chided me, saying I'd be embarrassed by my mistakes. And then I'd give it up quickly. They didn't know that I am my own worst critic. There was even an article in one of the New York dailies that was taking odds about how long I could hold out, given that most money managers never like to show people what they're really doing, lest they look like true jamos. Oh, well, here I am two decades later, having been embarrassed many times, except when it comes to the four hundred million dollars for four million dollars. I've given away the charity. I wish it were four million. Wouldn't that be some didn't do that? I recognize that showing you how I reason, how I execute helps you understand how to think or not to think, too. The CBC Investing Club isn't based on all my mistakes. That's not true. Tonight, though, I want to walk you through something that is driving me crazy. It's these animal-spirited stocks, the ones that are just making me nuts because my truth, my trust doesn't own them. They know nothing! Me, the ones that got away. I love the fish. These are the tarpon you hooked, you reeled up, but then you failed to get them to the boat, the boat being the charitable trust. Now, you and I both see these stocks every day. They rally step by step, inch by inch. They can't stop. They can't be stopped. Fitting for this market, almost all of them are related to the data center and the artificial intelligence revolution. That was easy. I have 16 I'm going to talk about, 16 that I was unable to land, couldn't bring them in. When I see them go by on the crawl, that thing underneath me, I'm driven to distraction. I guess you could say I hate them, except I really like what they do and the people run them. It's just that when I see them flying, I can't stop kicking because I missed. Ow! I want to buy them. But they are so far away from where I first wanted to buy them that I just have to say, I'm late. Forget about it. Except that time after time, it would have worked if I hadn't forgotten about it. If I had just bought them today or yesterday or the day before, a week before, a month before. Whatever. Which are the tantalizing stocks that have just driven me to ruin? Let's start with memory and storage. Yeah. The devices that hold the data. Ready? You can write them down, but they're so hot, they'll burn the paper. Seagate, Sanchez, Western Digital and Micron. I liked all these. You know, including Western Digital, one point I owned 4.9 percent of that one when I was a hedge fund manager. Would have made me two billion dollars, even more than the 400 million I claimed I gave when I only gave 400 million. Four million. Listen to me. Listen to me. these stocks are being driven up by desperate buyers with persistent orders that take them higher every day. And now I'm going to tell you how it works. Let's say you want some SanDisk. OK, so many so many other people with the stock at say nine hundred fifty seven dollars. You go in and you place an order like this. Nine fifty seven. Right. SanDisk. Buy me one hundred thousand with a thousand dollar top. A half dozen buyers are actually putting in that same order at the same time you are literally. And that's why the stock could rally at 8.4 percent, say up 75 bucks. They order these orders are often put in before the market opens like a train and they don't want to miss it. These orders and people don't have any quit. And that's how a stock goes up dramatically. Multiple buyers with high tops just buying and buying. Why do these memory stocks work? Simple shortages. AI needs a huge amount of memory. Nobody in this industry was ready for that level demand. and it'll take them years to build out enough production capacity to meet the demand. Next up, central processing units, CPUs, needed to power agentic AI. These AI agents, the next wave of the fourth industrial revolution, can do amazing things, replacing many humans at dull, dirty, and dangerous jobs. But they need the right semiconductors. The bottleneck here is not GPUs from NVIDIA. They need better CPUs. NVIDIA doesn't make them. Who does? Because you know that the agents need them. Well, that's why everyone keeps buying Intel and AMD. Silly, I shouldn't have missed those. I like them both so much. I should be wearing post-its with their names on my forehead. Can you get up some of those? I'll put them right on. Thank you. Next, data centers are filled with networking software and hardware. Remember, the data center is stuffed with a huge number of chips from NVIDIA or AMD or Google or Amazon. More than murder. Here you have, are you ready? Because these ones really drive you crazy. Marvell Tech. Oh, man, it doubled. Credo, Estera Labs, Sienna. They're all on fire. En fuego. Then we have the data center hardware. Dell. How did I miss Dell? Cooling infrastructure. Verde. Verde's on tonight for heaven's sake. Core weave. That in-trainer. I speak to him all the time with the T-shirt, whatever he wears underneath that shirt. Doesn't dress up. Doesn't matter. He's like a billionaire. Anyway, there are companies that use photonics to move signals. Coherent. Lomentum. This is Lomentum. I mean, they were both on the show. How did I miss that? Finally, there's power. and the incredible bull market in boom energy, which eludes me and, of course, drives me crazy. OK, let's let's that's the list. Now let's talk about cross purposes. I've been buying and selling stocks for 44 years and every single year there's always been this winning cohort, a sector that I've missed. That means I knew the stocks were good and the company were amazing, but I didn't pull the trigger. Why didn't I? OK, first, I'm a cheapskate. I like to buy stocks that are running. Almost all of these stocks run every day because the buyers are insatiable. Unlike me, there's no place they won't pay. I don't like to be too doctrinaire here. In 1992, one of my best years, my then trader went rogue on me and decided to violate the discipline on a handful of high flyers like the 16 stocks I just mentioned, just like them. She would come in each morning, identify which would be the hottest stocks, the most momentum, looking at the charts. She would famously or infamously buy the stocks with outrageous tops. They could only be described as rookie behavior, except she was a pro. Case in point, let's go to Bloom. OK, this is exciting energy play, can turn abundant hydrogen into electricity. Stock's up 164 percent year to date, including a nearly nine dollar move today. Two hundred twenty nine dollars, two hundred twenty nine dollars. Remember that with a stock like that, I would have waited for a pullback, maybe two eighteen, maybe two hundred. She would insist that my discipline in this market is really going to cost me with my attitude, my restrictions. I would never bring in Bloom Energy. So she would pick up the phone and she would want two hundred two hundred thousand shares. Right. She'd tell the broker broker this. She'd say, sweep the stock, sweep the stock to 235. But you get me in those 200000 shares or else that way she got it. Didn't matter what price. That's what you're seeing right now. That's what you're seeing. A lot of these trading houses. That's why these stocks do this. They're doing that kind of order. They believe in these stocks. They think we're at the very beginning of the run. They don't mind overpaying because they believe these stocks will keep climbing, climbing. And they've been right. Me, I'm never that certain. I wish I could be, but I've always maintained that discipline trumps conviction. And my discipline means refusing to chase. But let me leave you with one other thought that maybe can justify it or at least put it at ease with your mind. My trader would rebel at the idea that she was undisciplined. She said I was undisciplined because I wouldn't pay for the stocks that I knew were right. In a hot market, she thought you needed to have the discipline to pay up for great stocks to avoid missing them. That was the discipline. So here's what she would do. She would perform a mental exercise. She would divide high-priced stocks by 10 to show me that it's not so outlandish. Bloom Energy, Jim? All right, it's at 230. Divide it by 10. You got a $23 stock. Would it really kill you? Would it kill you to pay $24 for a $23 stock? No, of course not. That was genius. We had an amazing year in 1992 because I divided a lot of stocks by 10. You know what? I said, she's right. I'm wrong. Throw out the old rules. Him with the new. It worked. In my heart, I could never really do it without her. Still can't. But here's the bottom line. If you want to buy these so-called red-hot stocks, don't be hesitant about it. As long as the bond market stays stable and you stay diversified, I think the red-hots can keep making money. But you've got to do this. You've got to divide by 10. And maybe then it will make a lot more sense. Hey, how about David in Louisiana? David. Hey, welcome from New Orleans and Jazz Fest. I've got a question for you on an oldie but goodie, a stock that used to really high fly. and it looks like to me it's coming back, my friend, from the dead. It's got a partnership with NVIDIA, and its operating system is being utilized in all of these self-driving automobiles. I'll tell you, I looked at it, and it's BlackBerry, and I wanted your opinion on that. We're going to have to look at that, too, because I know they've got vampires in New Orleans. I've been there. I've seen them, and this stock is a vampire. It is back to five from being down to two. You deserve, Dave from Louisiana, he deserves more than just kind of a brush off. We'll take a hard look at it. Ben, Ben Stoto, reminds me of the photo. He'll look at it. Let's go to Tony in Florida. Tony. Hey, Jim. I want to let you know that I thank you for taking my call. I've been a club member since day one. And you always helped me out when I gave you a call to see what I have to do. And I got another big one for you today. All right. I'm sweating. Go ahead. It's a health care stock. I know you said in the past it's been a good call, but with this one, I'm down a little bit in the red. Should I stay with MekTronic? I'm not MekTronic, sorry. Should I stay with MRK or should I go to another company? OK I got to tell you this rotation out of health care is one of the most breathtaking rotations We could be talking about a half dozen drug stocks and they would all be the same I think that Merck is at 13 times earnings I think Merck is terrific I don think that matters at all I think the stock could drop another five So you want to buy some and then leave. I like to say leave room. Hey, maybe divide by 10. It's an $11 stock. Maybe it goes to 10 and a half. All right. There you go. Now, if you want to buy some red hot stocks, I say go for it. I think that you can still make money as long as you stay diversified. But understand you're chasing and don't go put an outrageous cop on it, all right? On Mad Money Tonight, ServiceNow, report after the bell. I'm going to run through the nose with the top brass. And have you seen the recent resurgence in the housing stocks? What is that all about? I'll take a look at D.R. Horton, the big daddy, and share where I come down on the stock. And I'm sitting down with a CEO of Vertiv to get a sense about where we stand on the AI infrastructure buildup. Divide that one by 10 and stay with Primer. Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. What made you confident that you could do something that hadn't been done before. I have no fear of failure. Trailblazing women changing the game. One of my favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just gotta think big to accomplish big things. Julia Borsten hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts. After the close, we got results from ServiceNow, the cloud software, a company that helps its customers automate all sorts of back office jobs, including IT jobs. Now, this stock's been crushed by A.I. displacement worries, falling from just under $240 at its peak last year, down to $103 as of today's close. And tonight, ServiceNow is getting slammed again after the company delivered a set of results and guidance updates that, frankly, just weren't good enough to get investors excited again, even as the company's adamant that business is business as usual, with most benchmarks better than expected. Now, earlier tonight, I had a chance to speak with Bill McDermott, the chairman and CEO of ServiceNow, about what's now becoming, I guess, a quizzical story. Take a look. Mr. McDermott, welcome back to Mad Money. Jim, it's great to be back with you. How you been? I have been fine, thank you. How about you? I've been great. Another beat and raised quarter, man. We're on fire here. OK, so, but we got to figure this out. You bought a lot of stock. You bought stock personally, which was not easy because you had to cancel the program. You came in very aggressively. You are now beneath where you bought that stock. And my question is, what are people missing about ServiceNow that they used to know about ServiceNow? That's a really good question, Jim. You know, we're a 600 billion TAM company. So the total addressable market is massive. The RPO growth of the company, meaning the revenue and the obligations remaining with the company, are growing at 23.5%. It's amazing. And we're over $28 billion now in RPO. And our AI business, which is what it's really all about, I'm having to now put a new guide out there on the AI for this year. We're blowing past the billion. We're going to up at a billion and a half. And that probably won't be enough. The bottom line is this. Jim. The more AI that happens, whether it's a hyperscaler, these fantastic language model companies, or even the systems of record that are even getting the AI memo, everything runs through ServiceNow. So ServiceNow is the rules and the rails of every major corporation in the world. And so as AI takes off, it's a tailwind for ServiceNow. And the capital markets have been talking about terminal value in terms of not knowing where that exists for software as a service companies, which, first of all, is ridiculous for scale ones like us. But I think we're answering that question decisively. Our business is doing great. And it's all about AI. And we agree. And we're not scared. The language models are actually great for us. I don't want building thermos scared. That would worry me myself. Now, I'm thinking maybe it's the The problem is the operating margin guidance of 31.5 below the 32 percent and lowered from the previous guidance. Could that be it? Could that be what people looking at is saying that AI is good? But you know what? It does lower their their margin performance. No, actually, Jim, it's good news because we closed MoveWorks, VEZA and now Armis. So the half a point on headwind on the margin is only because we just took Armus into the company. It was actually supposed to be a point. The efficiency already took it to a half a point. And then the next three or four months, that'll be right back on track with the acceleration of our operating margins and our free cash flow. So you're talking about a company here, ServiceNow, that is going to be operating at the rule of 60 very soon between our revenue growth and our free cash flow margin. And what I think is most important for your viewers and great investors, because you attract the best, Jim. Thank you. is that this is one of the few stories in the entire world where you could have a company talking about operating at the rule of 60, a growth like this, which is unbelievable, and a total AI leader, and one that all the other AIs have to run through, including the language models. All the great AI in the world, and it is great, it thinks, but workflow acts, And that's where we come in. So we are going to price our platform based on an expanding user base. But half of our revenues already is based on the consumption of all of this AI innovation. And one of the new developments, Jim, that you should know is the language models are great. And the elastic pricing is also the way they price. And there's no safe zone for that. So all this Wall Street talk about seat-based is going away and so forth, we hope it does, because there's so much more money to be made on the consumption or the value derived from AI. You absolutely pivoted correctly. I got an idea. I was thinking that when you talked about it. You said rule of 50. Is it possible that they're no longer considering the importance of rule of 50? You and I know how important it is. I've always added the gross margin and the growth, but I've come up with a great idea about how to analyze stocks. As my great idea come out of fashion is my great idea says, you know what, it's going to lead you wrong because I felt in the last quarter you did that and it moved the stock up and I was wrong. The stock moved down. I'm wondering whether the rule of 50, 60, 70, 80 has gone out of fashion, Bill, and we're looking at the other side of history. You know, Jim, there's some things that will never go out of fashion and it's called revenue minus expense equals profit. and the more business that you do and the more money you make, the better it is for shareholders. You know, Warren Buffett used to say that in the short run, the market is like a voting machine, but in the long run, it's like a weighing machine. And we're totally ready to be weighed against any brand in the world. We take on all comers and our company's only getting stronger and stronger. You know, an investor called me this morning and wished me luck on the earnings call today, which will happen soon. And he said, you know, the best place for the Trump accounts for babies that are born in the United States would be to invest in service now. And it's comments like that just make us so strong, so powerful and so full of life. And remember, every language model company, OpenAI, Anthropic, et cetera, Gemini, great Gemini announcement today. They're all going through ServiceNow. We are the ERP of IT for every digital transformation across the world. All these companies need to work with us. We like working with them, too, because the customer is the benefactor. I had a great CIO in my board meeting yesterday, and she said, you know, Bill, it's actually de minimis the fraction that I pay to ServiceNow of my IT budget, and everything in my company goes through ServiceNow. And we actually analyzed if I could possibly replace it with a language model, a la Jim, taking on the terminal value issue. But it would actually be more than 10 times the price with actually no certainty because everything there is based on the elasticity of tokens. I root for those companies. But I think if you want the rules, the rails and the platform that's going to transform your company, you're going to need service now. Okay. Now, of course, the Trump accounts have to be invested in the S&P 500. We can't pick individual stocks. Again, just to focus on what people might be missing. Are there people who will say, you know what, I'm used to really huge beats, different lines. I'm used to huge subscription revenue guides, huge beat in operating margin, huge beat in free cash. They're not giving me those huge beats that they used to. Is that because of AI? No, actually, the AI is what is the tailwind behind our growth trajectory and the bright future that we have. And I believe strongly when we took on MoveWorks, we merged it with our employee experience business. It did 5x the revenue that it ever did before, and it did it in the first quarter. That's very impressive. We just got VESA. Now, you're talking about identity management. where we're managing human and non-human identity. These agents are not humans. They work really hard, 24 by 7, but somebody's got to manage them. And we give you the visibility, the rules, the regulations by which these agents have to run in a major corporation. And now Armus, Jim, this is big. Armus is in nine out of the ten biggest companies in the world managing operating technology. Think IoT, networks, devices, shadow IT. So this is new revenue coming into the stream for the shareholders. The acquisitions are great. At the same time, I just got a last question I got to say. 75 basis point headwind from delayed closings in the Middle East. How many have been closed since the end of the quarter? What are you talking about? Deals in the Middle East? You said, yeah, caused a problem. I wonder, look, since this was the quarter ended, I know you, you're a closer. Have we gotten closer to closing these? Everything is fine. The Middle East is opening up in talks again. We are actually back to doing business. People are out and they're going to their office buildings again. It'll be fine. All right. So the point the point on the Middle East was you have to remember you dealing with sovereign clouds in the Middle East So when they do business it recognized not ratably but up front So when there a delay in the Middle East it has an immediate impact That was the talk of that. All right. Don't worry about the Middle East and our business there. We're just fine. All right. Well, look, we got it out. I want to see what happens. I will say, Bill, I do worry that things that we did trust for so long are no longer as relevant. But I'm going to be the judge. I'm going to let you be the judge because the stock's down more than 30 percent. I think they become relevant again when your stock's as cheap. Let's leave it at that. That's Bill McDermott. He's the chairman and CEO of ServiceNow, N-O-W, one of the greatest performers of all time. Thank you, Bill. Thank you so much, Jim. All right. Mad Bunny's back after the break. Coming up was D.R. Horton's report. What the market has been waiting to hear from the home builders? Kramer's slicing into the numbers to find out next. The Borsten hosts, CNBC changemakers and power players. New episodes every Tuesday, wherever you get your podcasts. Let's talk about the recent resurgence in housing after a long period where this whole industry was a black eye on the face of the stock market. Yesterday morning, we got results from G.R. Horton. Now, that's the largest home builder in America by volume. And there was a lot of interesting stuff going on in the quarter. On the surface, I get it. Horton reported a mixed set of numbers. But the stock still surged nearly 6% yesterday in response because there were some real positives underneath. And if we can get another rate cut from the incoming Fed chief, this entire industry could get a real boost. It almost always does when you get a rate cut. Remember, all the home building stocks spent most of last spring and summer climbing, climbing higher in anticipation of rate cuts. But just as those rate cuts finally arrived in September, the group topped out and these stocks have been drifting lower ever since. Along the way, the homeowners have occasionally tried to make a comeback. At the beginning of this year, for instance, they bounced on the expectation we see lower rates. But then the war against Iran started. Oil price spiked and those future rate hikes started looking a lot less likely. In response, the homeowners fell to the lowest levels since last spring. As for TR Horton, it plunged nearly 29% from its September high to its late March low. However, it also bottomed with the rest of the market when long-term interest rates peaked at the end of March, which is really the beginning of this amazing rally. In fact, from its lows going into the close Monday night, this stock jumped from 131 to 153. Then we got the latest quarter on Tuesday morning, which sent the Horton stock up to 162. Wait a second. Why did that happen? Like I said before, D.R. Horton actually delivered a real mixed bag of a quarter. First, the company missed the consensus estimates for deliveries by nearly 500 homes. That's a lot of homes to miss by. Consolidated revenue was slightly ahead of expectations. Even though it was down 2.3% year over year. But home building revenue came in at $7.06 billion. That was more than $100 billion below expectations and down 1.9% year over year. Their total revenue got a boost from stronger land sales in rental revenues, not from home sales. And while DeR Horton's profit lines like pre-tax income and diluted earnings per share were better than expected, their pre-tax income still fell nearly 19%, with their pre-tax margin down 230 basis points, and their earnings per share shrinking by 13%. Definitely not a good quarter in absolute terms, even if parts of it were better than Wall Street expectations. So how about the guidance? DeR Horton trimmed the high end of its deliveries forecast and reduce the high end of its revenue outlook by $500 million. But wait a second. That said, expectations were so low heading into the quarter yesterday that even this trim guidance was higher than Wall Street was anticipating. And there you go. Low expectations really do matter in earnings season. High bar expectations are a steeplechase that can't be beaten if you post long, lukewarm numbers. Low bar and... Still, if you're wondering why these results sent the stock up 6% yesterday, I still don't blame you. I mean, the truth is very simple. Horton's forward-looking metrics were encouraging. Whether you're talking in terms of units or dollars, Horton had much better than expected numbers across the board. Net sale orders, OK, future, were up 11% and beat expectations by nearly 1,500 units. In dollar terms, it was up 10%, also much better than anticipated. Horton's backlog, future, grew by 19% year-over-year in unit terms or 17% in dollar terms. That's 1,900 more homes than expected. Wow, that's good. These are excellent numbers. Significant management saw some real sales momentum in the period, despite the fact that to the extent that there was any relief on interest rates in the quarter, it was short-lived. Those net sales and backlog numbers speak for themselves. But management really hammered home the fact that they're seeing much better demand on the conference. It was quite an upbeat conference. In the earnings release, there was still some boilerplate language talking about, quote, affordability, constraints, end quote, quote, cautious consumer sentiment, end quote, but it was boilerplate. And the company also conceded that it expects elevated incentives to continue, bad, depending on demand and other conditions. But Horton also said that it executed with discipline. And by utilizing those sales incentives, the company still expects to hit its original guidance for the full fiscal year, no estimate cuts. But in the conference call, management was more positive than that. When asked directly about demand, they said it was good with normal seasonality as the company expected and hoped. They also pointed out that Horton's cancellation rate has remained steady, which is a positive, and even said that halfway through April, they were pleased with sales results at this point. Frankly, that consistent kind of talk was all the bulls needed. The homebuilders had gotten rolling when long-term interest rates peaked in late March, and this better-than-expected commentary from D.R. Horton allowed investors to feel even more confident placing bets on the stock. This morning, by the way, we got fresh numbers from the Mortgage Bankers Association, which showed that mortgage applications for purchases increased 10.1% week over week last week. That's pretty good. Remember, we got a war on. It's the largest weekly gain since the week that ended on January 9th. Now, all that said, this comeback in G.R. Hoardin and the rest of the homebuilders is only sustainable if rates keep coming down. The group is hostage to the bond market and to a lesser extent the Federal Reserve. A flare up with Iran and a spike in interest rates could cause this move to fall apart rather quickly. On the other hand, if we do see President Trump's pick for Fed chairman, Kevin Warsh, confirmed in Tommy Manor, and he's able to sway enough open market committee members toward the lower rates camp, and I think he can with those who don't like him saying they abstain, then this could just be the beginning of a fabulous next leg for Horton and the homebuilders at the bottom line. The report yesterday morning from D.R. Horton, while far from perfect, had enough good news to keep us interested in the homebuilders here. The biggest surprise was the resiliency of demand in the quarter. We didn't get all that much relief on interest rates, but we still saw a surge of orders, and that bodes pretty well for Horton and its competitors in the future. Now we just need some more cooperation from the bomb market. Without that, I can't justify getting too bullish. But for the time being, I've got to say, these numbers left me feeling pleasantly surprised and justified the move. Let's go to Rodney in Texas. Rodney. hey jim how are you today rodney's a good day how are you doing i'm doing great i'm doing great i just want to thank you i've been a watcher of the show for uh several years now and i just want to thank you for all the valuable insight that you've given me and myself and many of the viewers out there so thank you again so much thank you it makes me feel like it was every bit worth it i'm just trying to figure out what i can do again tomorrow for you that's that's kind of the way a look at it. Give me the next one. How can I help you right now? Absolutely. Absolutely. So the stock that I have right now that I've been holding for some time is Airbnb. And the question I have is with all the challenges that we're facing at a gas pump and other things going on, I wonder what the economy and what many people are going to be doing in the travel and leisure industry. And the stock that I have is Airbnb. And I'm curious. Travel and leisure is being challenged. But I got to tell you, I read a Wells Fargo piece this morning that said we are finally at the inflection and the stock is about to turn up. I am going with Wells Fargo. I think it's at the right level. I think it is going to do incredibly well. And this is a buy. And I did say in How to Make Money in Any Market, I made the point that Brian Chesky's real. Okay. The guy, the CEO, he's real. He has some ups and downs like the rest of us. But holy cow, I think it's going to be good. Now, the report from Deer Horton had enough good news to keep us interested in the homebillers area and maybe do some buying. The numbers left me feeling pleasantly surprised. I hope they do to you if you read through it. Much more mad money than putting my Swiss with Furtive. After joining the S&P 500 in March, could the company continue to power higher? It's almost 90% high this year. I've got the CEO. Then today we've got a quarter for the ages. I'll reveal what it was and why this story is so darn important. And of course, all your calls rapid fire. It's tonight's edition of The Lighting Round. So stay with Kramer. This morning, we got a great quarter again from Vertiv Holdings, which makes crucial power and cooling equipment for the data center, of course. Yet the stock actually got dinged a little. Look, I think that was purely because it came in too hot. Even after this pullback, the stock's up 88% year to date. I hope you have some of these kinds of stocks. The quarter was phenomenal. Vertiv delivered a 17-cent earnings beat off a dollar basis. That's up 83% year-over-year. Revenue came in higher than expected. Their operating margin expanded by a staggering 430 base points. Even better, management raised their full-year sales and earnings forecast. They're now talking about 29% to 31% organic revenue growth this year. Problem is, the stock had already made a monster move higher. But Vertiv keeps making smart acquisitions to expand its place in the data center. So can the stock keep climbing? Let's take a closer look with Gio Albertazzi, the CEO of Vertiv. Holies to find out, Mr. Albatarsi, welcome back to Mad Money. Well, thank you. Thank you very much. All right. So, Gio, another unbelievable quarter, kind of like when we saw you at GTC with NVIDIA. And I have to ask you, is there really anything that you can do if you're sold out to improve your earnings even more? Because it did seem like from your conference call that you are sold out for this year. Well, Jim, we, of course, continue to see a very positive and very strong year, as you have seen. We took our guidance up. But there is still book and ship in our number for this year. So the year is not over. The year is not over. So continue to be optimistic about the market the direction of travel and certainly very optimistic about our position in the market And I think the performance speaks for itself All right Well when the stocks are about 8 I tend to think OK what can go wrong Because it been so great Is there anyone who could come in Gio and just say look I know Vertiv guy they can get to you in a year I can offer, I can put together everything they can put together and give you a great price. Could that be happening? I think there are multiple dimensions to our competitive advantage. Certainly technology is very, very much to the center of it all. But our ability to scale, our ability to think the entire data center, not one piece at a time, is certainly a leading service portfolio, an ability to support our customers at the project stage and during the life cycle, and certainly very strong relationships in the industry, NVIDIA, but all the customers in general. This is very hard to replicate. OK, now. Now, of course, the industry is interesting. People like the industry, but I think our position is very, very strong. I think people have to know also that you're not constrained by the typical four walls of what you do. This collaboration with Caterpillar and the solar turbines, it is in the cornerstone of the bring your own power and cooling. This is the kind of thing I've come to expect from Vertiv. Can you tell people what you're doing there? Because it's quite frankly amazing. No, the data center industry, the way data centers are being built is changing. There is a lot of bring your own power so that data center can be grid interactive, can be power, self-sufficient. And of course, this is not just about having turbines or other power generation system. It's about making sure that the entire data center infrastructure is well aligned and ready to support that type of load with that type of power generation. generation. So the partnership you were mentioning with Cat and others, with Oklo and other partnerships that we have are exactly in the direction of enabling the industry to bring your own power and addressing the power challenges to another level to remove that constraint for the industry. So let's say I call you, Gio, and I say, look, I have got 2,000 Caterpillar engines that I have bought, and I am right next to the Marcellus Shale, or right next to the Utica, or right next to the Permian. Could I come to you with all these engines, hook them into the actual natural gas, and say, Gio, I want you to cool my thing, I want you to do it, and I want to be off the grid? Could I make that deal with you? There are a lot of off-degree data centers that are being designed and commissioning. So that's certainly something that is becoming mainstream in the industry. And we have a primary role in making that happen. Wow. OK, so I know your U.S. is strong. Europe's catching up, huh? Europe's starting to get with the program. Who's doing that? Is that our hyperscalers or is it they have enough activity over there that you've got good business? Well, definitely the world is pretty global. The market is pretty global, so a lot of the actors in the space, be them hyperscalers or co-locators that operate here in North America and the US, are also very active in Europe, in EMEA, and more broadly. But there is also quite a good, vital local market with local co-players. So it's a mixed bag. But across the spectrum, we see a lot of vitality, a vitality that that was not there in the past, especially earlier in 2025. We're pleased with the type of demand that we're seeing. One last question. This Vera Rubin is so powerful from NVIDIA. I mean, everyone knows it's incredible. Are things sometimes so powerful that even you can't cool them and they run too hot? No. The beauty of the relationship we have with NVIDIA is that we work together on long-term technology roadmaps so that when their technology comes available in the market, starts to be installed and commissioned, we have the technology most of the time already available and installed to take care of the power and the cooling that that infrastructure needs. We want to be ahead of the game. All right. That's excellent. Did need to know that. I want to thank you, Gio Albertazzi, the CEO of Verdom Holdings. Thank you, Gio. Good to see you. Thank you. Always a pleasure. Of course. Man Bunny's back after the break. Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast-fire lightning round next. And then the lightning round is over. Are you ready? Keep that. Larry! I'm going to start with Larry. Larry! Hey, Mr. Kramer. Hey, thank you for yourself and your team for all the wonderful advice you guys provide. Oh, thank you. In two weeks, Renee Haas is going to be releasing earnings for arm holdings. Buy, sell, and hold. We put this on the we put this on the Bible a couple days ago for the Channel Trust and the stock is up 21 today. I mean, this is the type of thing I'm talking about. You got to be in? Or what can I say? I think Rene's going to do a great job. He's got a lot of business. It's a CPU company that was up good game. Let's go to Bill in Massachusetts. Bill! Jimbo! I'm a proud club member having a great time. I finished my position in Alphabet at $275. It's up $60 this year. Should I take a little off? I love it. I don't want to. Bill, just like I feel unfortunately the Celtics are going to win, I think Alphabet's going to $400. I think you win on both. You win on Alphabet and you win on the Celtics. Last night was a fluke, but I enjoyed it. And that, ladies and gentlemen, the conclusion of the, I'm not kidding, Lightning Round! The Lightning Round is sponsored by Charles Schwab. Coming up, Kramer's ready to do the hula in celebration of the quarter one club holding just delivered. He's revealing who he's raising a glass to next. Usually you don't see me don't a Hawaiian shirt at the end of the show, do you? Tonight is not a usual night, though. That's because we had a one for the ages quarter from G.E. Vinova, the power plant portion of the old General Electric. Not that long ago, G. Vinova was the red-head stepchild of GE, the division that held up the long plan breakup because CEO Larry Culp wanted it to have an investment-grade credit rating first, and its balance sheet just couldn't cut it. And for today's incredible quarter, it's hard to believe this is the same business. Here's some irony. Break out the champagne, or at least the Mai Tais. G. Vinova's market cap just passed namesake GE itself, the aerospace company. $303 billion versus $289 billion. That's nothing short of unbelievable. How did GE Vranova get to such exalted heights? How about by being the venerable unique player providing power to the data centers and the utilities that are all struggling to meet demand from the data centers? With these results, GE Vranova said the company already had more data center orders in the first quarter than it had in the entirety of 2025, and it's got a backlog so full that it's almost impossible to get a new turbine, they pronounce it like that, for the next two years. Given the sequential cost savings, that you seem to find each quarter, I'm confident that you'll see much better and better margins ahead. When you see that GE Vranova has 100 gigawatts worth of gas power business, that's right, the equipment business, 100, you know what, that's enough to power 100 million homes. Then you can understand why I told viewers of our 1020 Investing Club video that this quarter was one for the ages. We rate stocks by the number for the club, with one meaning buy, two meaning hold, three meaning sell. We usually downgrade stocks after this kind of serious move. A 13.75% gain in a single session? 13%. But I said this morning that we can't take it from a 1 to a 2. It's just too darn good. CEO Scott Stracik has an unassuming error. I've tried to get him going about these incredible numbers. And why not? I mean, don the shirt, partner. I want him to be more effusive about the company's significant growth, not just in turbines, but also electrification. I thought he should talk more about how power was a dead-end business for years and years, a simple replacement of coal business with natural gas and some maintenance. Not anymore. Now it's all greenfield development. About 80 percent of their customers are traditional utilities, 20 percent of data centers. You know what? That actually could start flipping as these big hyperscalers. They don't want to be accused of jacking up consumer electric electricity prices. So I think we'll try to build their own power plants with G.E. Vinova. By the way, G.E. Vinova is the only serious nuclear energy builder, and it's putting up the first new plant in ages in Ontario. So far, so good. It's also going to start building nuclear reactors for the Tennessee Valley Authority, although Stracy says nukes are a 2032 business. Remember, the rest of them that you're trying to buy, they tend to be science projects. Now, G. Bonova has Wind 2, which used to be the fastest-growing business, but now is a drag on earnings. It can't interfere with the greatness here, though, and that's what you should be thinking about. How long can this last? I think it's just beginning. Don't forget, the legendary Jensen Wong from NVIDIA talks about the five-layer AI cake from bottoms up is energy, then chips, then infrastructure, models, and applications. When you think of power, you need to know that the plurality is made by GE Vinova's machinery. Yep, this GE Vinova quarter was indeed one for the ages. I like to say, as always, a bull market summer. I promise to find it just for you where you'll make money. I'm Jim Cramer. See you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money Disclaimer, please visit cnbc.com forward slash madmoneydisclaimer. What made you confident that you could do something that hadn't been done before? I have no fear of failure. Trailblazing women changing the game. 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