Mad Money w/ Jim Cramer 4/9/26

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There's always a one-market summer and I promise to help you find it. May Have Money starts now. Hey, I'm Kramer. Welcome to May Have Money. Welcome to Kramer. I'll do my friends. I'm just trying to make a little money here. My job is not just to entertain but to teach you. So call me at 1-800-743-CNC. Tweet me at Jim Kramer. Today's action should have been centered on stocks that have been impacted by the war in Iran. We have a fragile truth. We don't know if the Strait of Ramuse will be open for traffic or if Israel will keep bombing Beirut. Oil's rallying interest rates were steady. President May at any moment decide that Iran's not playing ball. These are incredibly consequential issues that the market just doesn't seem to have any time for. The averages tell you that. Today the Dow gained 276 points. S&P advanced 0.62%. NASDAQ climbed 0.83%. That's the seventh straight up day for the S&P. It seemed to reflect that the truth will hold. No more bombing, just acceptance by both sides. But somehow the Gulf's not the narrative of this market. Instead, the averages tell us an alternative tale. Nothing to do with the war at all. They tell a story of an empire torn asunder ripped to pieces by a handful of companies. I'm talking about the enterprise software empire that's being toppled by hardware stocks and AI. This war in tech, more than the actual Iran, has captivated Wall Street. But it's not talked enough or explained about enough on TV or frankly even just set out for you on Main Street. So let me do that. Let me set the stage. Once upon a time there was no such thing as the software industry. Sure we had hardware and there were some junior code companies, but they didn't matter. We traded tech sentiments, motor oil, Intel, Semizol. We had a bunch of other iconic tech names we called them BUNCH. Short for Burroughs, Univac, NCR, Control Data, I own 4% of that one with Honeywell. Oh and let's not forget the big one IBM which had a vast storage space with plenty of software. We didn't really call it software. In 1986 the world changed. That's when Microsoft came public with the help of Goldman Sachs. I let it know in my previous life I helped bring the company into Goldman, but I didn't get any credit for it because I poached. The state of Washington wasn't in my territory. They wouldn't even pay for my airfare or my medical care as I blew out my eardrum flying with a cold. Our research department had a cracker jack analyst in the case and the small group got a real lift along with Microsoft, which instantly became one of the greatest stocks ever minted. Everyone owned it. Even better, no one really understood it. That was a big thing about Microsoft not understanding it. We had an inkling of what they did. We knew that they were inside the personal computer and the bigger companies too. We were excited about the growth potential, but many of the people who owned it only knew one thing. The stock went up. Very important. Remember this was the 80s. PCs were still clunky, not really a consumer product yet. Microsoft never quit though. Others joined the fray. They were all embraced and like Microsoft they tended to rally about 30% on the first day and then they kept right on golly. There was an endless appetite for these software stocks. It was like an operative 10 where we just kept saying bravo and asking for more. Sure enough, over the years they gave us plenty and we tried our best to understand each one, but we couldn't. We owned what we call the buy side. Clients had to hire people who could figure these things out and separate the wheat from the jaff. The research houses had to do the same thing. Software seemed so ethereal, so difficult. But who cared? It went up. Next thing you know, the internet took off and the software companies dominated that too. Now at the same time, software strode the world like a colossus. We had hardware companies that collected and stored disks, we used to store music on records. We had Intel that made the hardware guts for the PC along with a big cohort of component makers. We had Dell, we had HP, we had a little teeny AMD. But all the money was made in software. Frankly, software ate hardware for lunch. Over time, software became so valuable that the elite companies were able to charge not just by the client, but by the person. It was a bonanza of riches for the software as the service companies were sassed and you felt like a damn fool if you didn't go to Stanford and study computer science. I turned down Stanford, which is why I'm standing up here at 6pm and talking to you about those who cashed in. While those software companies were being minted, another group of companies, run by a new generation of entrepreneurs, developed hybrid models. A little bit of hardware, some software, some social, some retail. We called them Facebook, Amazon, Netflix and Google, FAANGs 13 years ago. We then added Apple, throwback stayed the game. We never got around to adding Nvidia though, and as the keeper of FAANG I could have, it's just that the F became the M and the G changed the alphabet so we lost the acronym potential. These companies were thought to be a little bit of everything. And when Nvidia, a semiconductor company, came along with a machine that was fast enough to do the things we could only dream about, well, Nvidia passed Microsoft and became the biggest company on earth practically overnight. Nvidia's machines were so powerful that a whole new class of companies was born. These AI companies, we called them, figured out how to create new products and did things with all that electric speed that Nvidia gave you. It's a little how Microsoft took over the world using Intel's hardware in the 80s and 90s, get the illusion. Maybe we should have realized that these new machines could trounce the old machines. They could eat the software that ate the hardware. But other than Ben writes this over at Milius Research, you don't really hear the illusion very much. It's almost taboo, especially when it comes to, ironically, Microsoft. But today, a day when everyone should have been focused on the straight of their moves, oil and bay root, we saw the hardware stocks put the wood right to software, all software, even the ones that are doing fine. At one point it was so ugly I couldn't even look. Had to take the glass. Thank you. If you look at the IGV, this is this giant software ETF, you see exactly what's going on underneath. Consider the 10 largest components of this ETF. Are you ready? Palo Alto Network's down 4%. Microsoft down to 30%. What's down much more at one point. Oracle down 3.7%. Salesforce down nearly 3%. Palo Alto Network's down 4%. CrowdStrike down 7%. Apple oven down 3%. Intuit down almost 7%, even though it's tax season. Adobe down nearly 4%. Microsoft down nearly 8%. And again, all those were much worse in the middle of the day. The ETF is primarily the way that big institutions bet on or bet against software. It's also how they hedge their tech positions. It's incredible because some of these companies aren't even traditional software players. Palo Alto and CrowdStrike, they're cybersecurity. Intuit those taxes and financial services, something you often need a human for. They shouldn't even be in the index. They're being dragged down by this index though everybody knows it. No one knows what to do about it. And now hardware of all things is triumphant. Intel run by the redoubtable Lip Boutan's back. AMD's Killian, Seagate, Sandus, Micron, Western Digital, they're back from the day. NVIDIA's came. The companies that make the machines to manufacture more chips, applied materials, Lamrasearch, KLA, ASML, they're Killian. So is Quarweb, Barbell Tech, Corning, Lumentum, Cunity, Vertib, and a small group of other winners every day. Now there are plenty of fellow travelers in each camp. In the software camp, you're being treated as if you're ready for the embalmer. If you're in a hardware and AI camp, you're headed for the Pantheon of Greatness soon to be joined, of course, by those two kings of Cretias, open AI and Anthropoc, along with hardware users, Amazon, Meta, Alphabet, and Google. Here's the bottom line. Maybe tomorrow we'll return to the worldwide narrative, whether it's war or peace, but in the Middle East, but for now it's just another day when hardware slew software, like Cane's slewable, and all I can do is say get used to it. You may think these stocks don't deserve it, but as Clint explains to Gene in that unbelievable scene, Unforgiven, deserves got nothing to do with it. I want to start the calls with Betsy in California. Betsy. Hey, Kramer, this is your tapestry gal, but I'm calling on a different one. I'm calling on a retailer. I'm calling on a retailer with a gross margin of 63.3%. And that means only 36.66% go to suppliers. Number two, they're ahead in A1 adoption. Number three, as if they couldn't be bizarre enough, they have a multi-year partnership that they just inked with the Dallas Cowboys. They have Gigi Perez giving her little concerts and everything. And I don't think anybody wants to bet against Fran Horowitz, Jim. Betsy, I'm listening to you. I'm listening to you. Betsy, you're smarter than I am. You know it well. I think the bounce back was real, but after listening to you, I think the bounce back is very for real. I think go with your gut on this one. You know it well. You've done the homework. Buy it. Okay, I want to go to Bob also in California. Bob. Hi, Jim. Really good to be on with you. Thanks for taking my call. Bob, I'm glad you're on. Thank you. Thank you so much. How can I help you? Well, I'm a club member and I called you a long time ago. This is the first time in a long time. And I'm calling about Reddit because I've been holding it. I have a big loss in it on paper. And I know what you said about it in the past, that it doesn't really deserve how the market's treating it. What do you think now, though? I'm glad you asked me. I was talking about it today. It's down 40%. We use it for my wife's mezcal because it's just got a good mezcal affinity group. I think a lot of people use it. They don't charge enough. I shouldn't say that now. We're going to raise our prices. But I think that they should be making more money off their different groups. But the company is really suffering right here. I'm sorry. The stock is suffering. The company's not. Big dispute over the Google feed and whether Google's good at treating them right. All nonsense. Reddit's a good company. Today was just another day where hardware beat up on software. Although at one point it was so ugly, I can't believe it. At this point all I can say is you've got to get used to this. I don't know where the bottom is. Anybody tonight could Levi's become the next winner of the competitive apparel space? I'm digging in to Denim, Mickers' latest quarter to find out. I don't know. Betsy from California seems to know a lot more about me. More about this stuff than I do. Then shares of Vita Coco have been going nuts over the past year. So does this one have one room to run? I'm sure where I come down in this exciting story. And private player Aru is aiming to revolutionize the way companies conduct research through AI. Very different. Very different way to do it. I'm going to sit down with the company's co-founders, learning about what they're up to. So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag MadMensions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. At Tui, we give you more. More outfit choices with 20 kilograms of luggage allowance as standard. More hotels built around what you love like that swim-up suite. More race you to the bottom, water parks on site. More, ooh, that looks good. Food options from poolside snacks to ala cart dining. Book on app, in-store or online. You book it, Tui sort it. At all and up to protected, keys and C's apply, selected hotels only. See website for details. 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 Borsden hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts. A couple of nights ago, we got another terrific quarter from Levi Strauss and company, the Denim Kingpin and its stock sword. Bye, bye, bye. This has been a pretty tough time for the apparel category. It's been really tough, but there are still some individual winners out there like Ralph Lauren Tapestry, parent company of coach, and now maybe Levi seems ready to join the club. The company has put together a string of excellent quarters under the leadership of Michelle Goss, who took over as CEO at the beginning of 2024. The stock's now up more than 52% over the last 12 months, but a huge chunk of that game came yesterday when Levi's deservedly sought out more than 10% in response to his latest results. Even here, by the way, it's a couple points away from his 52-week high setback in early October. Maybe that presents a good opportunity because Levi truly seems to be on the right track here. Now, keep in mind, this company was struggling before Goss took over. 2023 was brutal for them, with flat sales and earnings per share plunging 27% year over year. Once Goss came in at the beginning of 2024, though, she immediately got to work jettisoning, some underperforming businesses. In her first month as CEO, Levi's directly shut down the underperforming dentist brand. A couple months later, they closed a small footwear business in Europe, and last year, the company announced a sale of dockers to an authentic brand's group for $311 million, in a deal that closed just over a month ago. Meanwhile, Goss has been playing offense now, targeting denim subcategories like women's tops and premium, as well as sources of growth. Women's is big for them now. On the premium side, the company made a series of partnerships with iconic brands like Nike, and the luxury Japanese fashion brand called Sukai. So far, these efforts have gone very well. Over time, the new strategy has been paying off. In 2024, Levi's put up 3% revenue growth, nearly 14% earnings growth. 2025, they delivered 7% organic revenue growth, 8% earnings growth, which is more impressive when you remember that this company was caught in the crosshairs of those early Trump tariffs. Now, I've had the chance to speak with Michelle Goss several times over the past year, and every time it feels like I'm asking her how she keeps putting up such robust numbers. A lot of it comes down to solid execution and growth from new ventures I just mentioned. Of course, the numbers aren't always perfect. A few months ago, Levi's reported a modest top and bottom line beat, mixed full-year forecast, especially in the earnings front. Stock interest sold off, but I told her to stick with it because the problems seemed mostly one-off, and they were. Which brings me to the core of Levi's report on Tuesday night. Once again, the results look very good. Revenue was about 14% year-over-year, up 9% organically. When Wall Street was only looking for 4.5% organic growth, the strength was broad base, with the largest Americans reaching up 9% or 7% on an organic basis, and every other region and segment up double digits. Levi's direct-to-consumer sales jumped 16%, taxing the large part to its digital business, with e-commerce up 21%, both wholesale, solid too, up 12%. Now, Levi's margins came down a bit year-over-year, but again, that's the tariffs. We're about to annualize those, plus the gross margin operating margin both came in better than expected. That translated into a 5% earnings beat over a 37% basis, up more than 10% year-over-year. Now, unlike three months ago when the company reported a robust quarter with guidance that was more of a mixed bag, this time, Levi's gave us a solid quarter for the current quarter, and it also raised their four-year forecast across the board. That's what we want to see. For the current quarter, Levi's expects inline organic revenue growth and inline earnings. For four years, though, they bumped up their organic revenue growth target to 4.5% to 5.5% range, and raised their earnings forecast by two cents. Now, crucially, these numbers are too low, and that's not my opinion. That's something management stated explicitly. See, in Levi's original forecast, the company assumed it would be hit with a 30% tariff on goods from China, 20% tariff on goods from everywhere else. Those tariff assumptions are still baked into the numbers, even though the Supreme Court recently struck down most of Trump's tariffs. Now they're looking at a 10% import duty. If you use that number, the real number, Levi's gets a 7-cent earnings boost this year. Beyond the numbers, I like the story of the quarter, frankly. Levi's has bet heavily on the direct-to-consumer channel, especially the online business, and that bet is paying off, and that is a great bet. On the conference call, Goss made it clear that the company's efforts to build the Levi's brand are working, especially Super Bowl ad a couple months ago. It's partnerships, including the one with Nike, continue to do well, and Levi's is enjoying success all across its range of products, in men's and women's tops and bottoms, and even with these new, you've seen them on the street, the baggy styles, and I'm told kids love them, even if I really don't understand why. The hardest part of living through the 90s as an adult was keeping a straight face when you saw young people wearing those comically baggy jeans, but now then, people love them. Still, everything may seem to be clicking for Levi's, which is finally why the company got credit for a good quarter for the first time in what feels like ages. After taking a couple years to get the right portfolio, invest in new areas, and generally focus Levi's on its best opportunities, Michelle Goss has put this company in a great place, people, and that's why the stock's worry. I'm not saying Levi's wants to be turned into another standard, parallel category stock like Ralph Lauren or Tapestry, but I will say this, both of those stocks trade at price-dirty multiples in the low to mid-20s. Levi sells for just over 15 times the midpoint of this year's fairly conservative earnings forecast, while also giving you a 2.5% yield for good measure. If you don't understand what that multiple means and why a cheaper one and a lower one is better, that's one of the reasons why I wrote the book. It's really important that you understand price-dury's multiples. So the bottom line, if Levi's can keep putting up strong numbers, which I think he can, then this stock could have lots of upside ahead of it, even after it rallied more than 10% yesterday and tacked on another 4% today. Man money's back after the break. 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 Borsden hosts CNBC Changemakers and Power Players, new episodes every Tuesday wherever you get your podcasts. Everyone's smile come across the stocks rallying so hard. I feel compelled to take a closer look at it and figure out what the heck's going on. Take the Vita Coco Company. It's a beverage play with a health and wellness angle. It's been steadily chugging higher since it came public less than five years ago. The timing of that IPO is the reason why I missed this one. Vita Coco debuted in October of 2021, right as the flood of COVID-19 eared deals was coming to an end. Back then we were seeing dozens of new listings a month, and nearly all of them came tumbling down in 2022. Vita Coco itself didn't do much for the first year, so this stock came public in 15. It hit $18 early on, but by late 2022, it had fallen to $7 in change. Seemed like one more piece of IPO flotsam. Since bottoming at $7 in change in November of 2022, though, this stock has rallied roughly 560% in a little over three years. That's after it pulled back a dozen points over the past few weeks. I think it's going to be a nice buy-carp to you. Honestly, what do you hear what I have to say about this? I don't want to get ahead of ourselves. I want to walk you through the story to explain why this stock has become such an expensive winner, but you know what, this is the kind of thing. This is how you build wealth, people. You own the index fund, and you own a couple of stocks like this. This is not exactly a new company. Vita Coco was founded back in 2003 when two founders, Mike Curbin and Ira Learon, struck up a conversation with a pair of Brazilian women in New York City who told them they missed coconut water from their home country. After digging into it, they set out to make coconut water mainstream in the United States. Hey, nice backstory. Vita Coco has grown significantly in the two decades since then, fueled by the rising interest in health and wellness products. Candidly, some of our younger team members here at ManMoney told me that Vita Coco was only a drink that you bought when you had a hangover. But then again, a hangover cures a pretty good pitch. In fact, a company CEO recently said that's how many college-aged consumers first found the product. For the record, I was more of a hair-to-dog fellow. It always worked. Vita Coco has always been, has also been a marketing as a workout drink lately. It's a smoothie component and a mixer for cocktails. Today, the product portfolio includes the original product, Vita Coco branded coconut water, as well as a sustainable enhanced water product called Ever and Ever, as well as a protein-infused water called Power Lift or PWR Lift. The main brand Vita Coco has a dominant position in coconut water space in most places where it operates. And the category itself is growing incredibly rapidly. In the US, where they launched in 2004, Vita Coco has a 42% market share. Category is growing at a 22% clip. In the UK, where Vita Coco launched in 2013, there's an 80% market share, and the category is growing by 32%. In Germany, where Vita Coco launched in 2022, they have 39% market share, and the category is growing at a 125% clip. Just as important, younger people seem to love this stuff. What a great set of figures. There are some other angles to this story that, while commendable are not what I'd be focused on as a stock-picker, sustainable, environmental-friendly, supports lots of family farms, nothing more than that makes for both good marketing and good business. But what matters are the numbers, and the numbers have been downright fantastic. From 2021, when Vita Coco came public, to last year, net sales have risen at a compound annual growth rate of 13%. Adjusted earnings for interest, taxes, depreciation, and amortization have been growing at a 28% compound annual clip, 28%. Vita Coco has also been profitable since coming public, which is nice to see, isn't it? And its earnings per share have grown at a 25% pace from 48 cents per share to $1.19. On top of that, Vita Coco has a pristine balance sheet with nearly $200 million of cash and zero debt as of the end of last year. This is the kind of stock I look for all my life. When the company I supported, mid-February, it technically had a mixed result, with better than expected net sales and adjusted EBITDA, and also with 3 cent earnings per share, missed off a 12-cent basis. But the quarter was still a positive catalyst, thanks to Vita Coco's impressive full-year forecast. They're talking 12- to 15% revenue growth and 24- to 30% EBITDA growth, both better than expected. And guess what? Now you're getting that terrific full-year forecast completely for free. Vita Coco's stock was trading around $56 when it reported it got as high as $61 in change in March, but it's since fallen back all the way to $48 in change. I didn't see anything wrong with Coco specifically that might have caused that kind of pullback, and I looked for it. In fact, the only major development over the past couple of weeks was a positive one. Vita Coco was just added to the S&P Small Cap 600 late last month. But still, with this retreat, you know what? The stock's down over 20% from its high, and even down 8% year-to-date, I also like that kind of stock. I look for these. Really, what the pullback reflects is the simple fact that the stock is a relatively high price to earnings multiple. I talk to you about those a lot. It's trading at just under 32 times this year's earnings estimate. I won't deny it. That's pretty rich for beverage companies. But here's what I will say. First, throughout the entire time that Vita Coco has been public, it shares are traded mostly in the 25 to 40 times earnings range. And if you let that valuation keep you out of the stock, you know what you would have missed. Second, the companies expect to put up 30% earnings growth this year, and there's nothing wrong with paying 32 times earnings for a company that can grow at a 30% clip. Growth-oriented money managers will typically be willing to pay a price to earnings multiple that's one to two times the growth rate. So 32 times earnings is much closer to the floor than the ceiling for this stock. Plus, when you look at next year, Vita Coco should earn $1.80 per share. It sells for more than...it sells for about 27 times next year's numbers. That's perfectly reasonable given it's an incredibly high growth rate. Putting all together, I like what I see from Vita Coco after finally taking the chance to get into it. I'm sorry I didn't do it earlier. This is a uniquely strong story within the troubled food and beverage space, when it's very much on trend with younger consumers, which is why this company is taking share all over the world. Here's the bottom line. You rarely get a chance to buy a powerful long-term winner after a quick 20% pullback, especially when that pullback appears to have very little to nothing to do with the fundamentals. But that's exactly what's happened to Vita Coco. When a terrific company like this comes around, I think you should take it. Let's take some calls. Let's start with Dave in Massachusetts. Dave. Hey Jim, thanks for taking my call. I've been watching your show for years and I've got a lot of great trades from it. Dave, you know that's terrific. It's been a tough couple days for me and when I hear that, I'm so glad. So thank you very much. Let me go to work for you. Oh yeah, 20 years ago you said to back up the truck on MasterCard and I did. And I changed my life. It's such a great company. Really? It's such a great company. It still is. Michael, meet you back soon. I know those stocks have fallen out of favor, but I really like it. But go ahead. I'm sorry. I know that wasn't the one you wanted to talk about. Yeah, no, I'm calling you about KMB, Kimberly Clark tonight. I'm into it. I probably bought too much, too quick. I'm into it the whole lot for about $103 and it seems to be stuck in the mud. Well Dave, remember, I just had that fire, a six alarm fire at its largest distributor distribution center of toilet paper. Yeah, Mike's shoe did not necessarily set out for that to happen. Five and a quarter percent, let's go over this, five and a quarter percent yield. Buying Kenview is going to be added to the situation. I am going to stick my neck out and say, even though it's a 13 times earnings, I think you should buy more, Dave. I really do. I think you should average down. I know people don't like to hear that, but I have great faith in Mike's shoe. And I think at five and a quarter yield, I want to own Kimberly Clark. Okay. This bite of cocoa, it's a recent pullback. It gives you a great opportunity to get into this company at a cheaper level, I think, than you really should normally have. Now, there's much more made money ahead. A Rue was only founded a couple of years ago, but it's already been valued at over $1 billion thanks to its AI product. So could this company represent the next wave of AI disruptors and can it help us make money with the research? I've got the co-founders on the next to find out. Then shares of Amazon haven't been able to get any traction this year at all, but could Andy Jassy's shareholder letter provide us more for the stock? I'm sharing where I come down, but you see where the stock came down today. And of course, all your calls rapid fire tonight's edition of The White Ramp. So stay with Craig. Tonight, I want to remind you why artificial intelligence is truly exciting, not just a way for business to cut costs. Consider the case of a Rue. This is a startup founded a couple years ago by a group of teenagers that already has a billion dollar plus valuation. Now, the pitch is simple, but ambitious. A Rue wants to be the most accurate in the world at simulating human behavior, not through consumer surveys. That's really important. Not through focus groups. That's even more important, or polls. But through behavioral science, data analysis, and agentics, they basically create thousands of AI agents to break how people will behave. And they already have big contracts with major firms that you and I all know, like the big companies in the center, like McDonald's, EY. Right now, we're seeing heavy disruption across a host of industries. And this startup can help the companies in question figure out what people really want with a fresh outlook. So let's take a closer look with Cameron Fink, a Rue's co-founder and CEO, and Ned Ko. He's the co-founder and president to learn more. Gentlemen, welcome to May Money, and thank you for coming. Thank you so much for having us. Excellent. All right. Now, we've got to do a Rue 101, because this is your first time on May Money. I'm very excited about what you do at May Spends some time with you, because you're not just the usual intent to purchase, which we like very much. You're really predicting in a way that so far I have found to be astoundingly accurate. So I don't know how maybe you start, and then you give it up to, I know Cameron, I have full disclosure, Cameron Fink's father, who is right from Constellation Brands. But Cameron, maybe you should start and give us a little bit, and then we'll go from there. Yeah, definitely. Well, first off, thank you so much for having us on, and excited to tell you a bit more about how we predict human behavior. The core difference with us, we're training thousands of models that understand human behavior from the ground up. So as you mentioned, we're not looking at polls, surveys, focus groups. Instead, we're training our model on top of real behavioral outcomes, things like skew-level sales results, product purchase history. We're looking at campaign click-through rates and music streams and podcast listens, something where you have to make a decision, and we can measure that outcome in order to be more accurate than anyone else on the globe. Yeah, so now tell me, is this data that you are, how are you getting this data? Is it only from clients or you have other ways to be able to pick things up? No, I mean, I promise you right, our business is two years and ten days old to the day today, so, you know, happy birthday. I'm very proud. People know that I like young, hard-n-ear photographers more than anything else I do on the show. No, we appreciate that. And, you know, like, given that time frame, if we had to take in data from customers, right, we do a lot of work in very regulated industries. Healthcare, financial services, right, down to levels where there's incredible restrictions on the data that you can't access. If we had to take data from customers every single time we deployed, it would be incredibly, incredibly difficult, right? Right. Part of what we've been able to do that advantages us so much at ARU is, sure, some of this information is public, right? If you're going to model a population, you need to know things as basic as, you know, do they have running water, right? You might be able to get that publicly. You need to know things as localized as what are the things that they've bought, maybe credit card purchase data that you'll buy, satellite data, things that you can extract from. But, yeah, in rare cases do companies ever actually need to give us data to train into our model to predict behavior, which is part of the most unique aspect. Okay, well, let's deal with something that I have that very great frustration with. I've tried to get CEOs to say what is the impact of the GOP-1s. Invariably, their answer is there is none. Now, we know that if so many people are taking them, there is none is not an acceptable answer. So, why don't you tell me, Kim, could you just kind of put the lie to the people, say, look, it doesn't have anything to do with anything, because it's obviously something that is a game changer. 100%. I mean, the very first thing is that we're actually able to reach that GOP-1 user audience in a way that no one else is. I mean, you look at the research that exists out there for GOP-1 users today, but every business is making decisions off of its clinical research, right? There's no real research that people have into the behavior impact of GOP-1s. And so, when we simulate GOP-1s, we're looking at the general population, we're looking at prescription GOP-1 users, and we're actually looking at gray market GOP-1 users, too, kind of that next generation of GOP-1s. What you're seeing... Would that be pill? That would be pill or, you know, in this case, really next generation drugs. Thinks her zephytide, reddutrutide. Gotcha. Things that aren't always prescribed, which is really important as well, right? When you talk about some of these emergent behaviors, people are getting access to these medicines that may not, as you've seen, as traditionally needing it from a medical perspective. Okay. And what you see is GOP-1 users are breaking away from the general population in some very consistent ways. Think things like caring more about protein content, of course. They're caring about adding healthier options. But what you're also seeing is that the shift between that current generation, the first and second wave of GOP-1 users, right? I mean, first we had people who had medically necessary GOP-1s. Then we had people for whom GOP-1s were an aesthetic choice, right? Think about, you know, kind of urban, wealthier populations. And now what you're seeing is the third wave. You have already fit people who are starting to take GOP-1s so that they can lean out and build muscle and get more into this post-GOP-1 health craze. Well, could those people... That population is going to have totally different behavior. Could those people say want to be a little more on the wild side, maybe a chipotle, or maybe drink? Maybe drink a little more. Well, definitely. I mean, those populations are already eating chipotle, right? They're already going to drink. And so what you're going to see with those populations, especially on the gray market, they are going to continue to exercise a lot of those behaviors they have before. Okay, so Ned, could someone... Let's say you look at that and you say, well, wait a second. The McDonald's, there are a client here. Maybe they should be changing up, or maybe people will say, you know what, guys, you shouldn't be attempting to think that you could... You're attempting to think that you can be good for me. Look, it's a great question, and it's a question that these executives, like QSRs and fast casual businesses, are asking themselves every single day, right? And they're going to make decisions around it. Do we need to launch different products? Do we need to change our prices? Do we need to position our marketing? And some of those decisions are going to go well, and some of them aren't. What we do know, right, there's a lot of unknowns on that side, but what we do know, and what we've seen in our simulations, is that there are certainly brands that are better positioned for this than others, right? We like to call this around the office as a joke we have. It's what's called protein pandering. Okay, so we have protein... Yeah, protein pandering, right? You have these CPG businesses, small companies who have started to really harp on this as a main fixation of a value proposition. Protein, protein, protein. And now you have some companies that are seeing that get picked up in the market at the larger scale, right? You know, I mentioned one that we've seen recently, even ourselves walking down the street on the way to get here, Starbucks. You can get 30 grams of protein in your morning coffee, right? I think that it may be doings. I mean, remember, I have to take your information and try to make stock. Absolutely. That's not your job, but I think... Yeah, that'll lead that to you. But I felt when I read your work, I said, jeez, you know, is Starbucks phony or is it real? Is McDonald's, you know, is it really protein or is it real? Or is the Chipotle's really making a major effort to be protein? It's an example that's really interesting because those brands, there are some of them that are innately positioned to take advantage of it. Protein is a core offering to Chipotle today, right? Right. Not to Starbucks. So what we've been seeing with our simulations and how we're working with companies on this is helping them focus on what really resonates with their consumers and not just might be a little bit of a fad because it works for other businesses. Absolutely. Now, last thing, Cameron, I know I can't spend much time, but I just enjoyed talking to you guys so much. It seems in On Wall Street that the software companies are all you just being dead. But you have done work which says that maybe a legacy company like Salesforce actually has more going for it. Maybe we should be more open-minded. I think this is one of the most interesting topics we've simulated in the last few months. We were taking a look at general portfolio managers, right? So think investor and the core investor audience. And then also simulating procurement individuals inside of enterprises. Think you're enterprise buyer. And what we were seeing is that enterprise buyers had two times more confidence in traditional software businesses, your Cloudflare, your Salesforce, over the traditional AI businesses that are coming in. And it's not to say that there isn't going to be room for AI to come in. I just think it's going to be a question of these enterprise buyers are starting off on a strong foot with traditional SaaS. It's going to be a question, can Anthropic move fast enough in order to take it on? So I have to tell you, the way I would use that, just so people know, is I'd say keep an open mind. Salesforce goes down consistently. Maybe it's an interesting idea. We always have to stay open minded. You gentlemen have brought a lot of different contrary views that I already know in one case, alcohol is dead right. I want to make that point. But I want to thank Cameron Fink, who's co-founder and Nick Co, co-founder and president for ARU. And I tell you, I just want to stay in touch with you guys because I think you have a lot of good stuff to say. Thank you very much. Thank you so much for having me. I appreciate it. May have money's back if you break it. Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round. Next. It is time to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. I'm going to talk to the light on. Are you ready, skeet? Direct talk to the light on. Okay, what's up with Sam? And that's what I mean, Sam. Jim, got an interesting one for you. So the company hit my attention when the headline, I thought the headline was about a 400 million dollar deal from Apple. It's a community electronics. It was a spin-off of DuPont. And the stock's trading at 27 billion. So, curious what you think of community, especially with this news of the Apple manufacturing. Well, you know, I'm glad you mentioned, look, this quiddity is just really an incredible stock. And it was a spin-off. We got a lot of it for our travel trust. We've held on to it. I think people should really look at it. It's probably the most undervalued of the data center stocks right now. Let's go to John in New York. John. Jim, this media stock has no debt. Two set of lawsuits. A $20 price target. What do you think of Newsmax? The 2020... They're losing money. And I have found that buying companies that are losing money right now has been a losing bet. Let's go to Zoe in Maryland. Zoe. Hi, Jim. I was wondering what you think about the future of AI and quantum stocks. Do you see companies like D-Wave as well positioned to rebound and go out to the future? Well, I think it's more of a science project, which I don't mean... Look, it is. I mean, what can I say? Maybe the science project works out, but it is more of a science project. Let's go to Amelia in New York. Amelia. Hi, Jim. How are you? I am great. Thank you for taking my call. Same. I'm glad you're on. I've been listening to you over the years, and now I'm retired. I get to see you in the morning and at night. And thanks for all your advice. Thank you. There's a stock that I bought years ago. I made some money. I sold it. It kind of went down and tanked in, and the earnings weren't good over the years. But I have a new interest in it. I've been watching it, and I noticed I bought some made money. Okay. I bought so half of it, and I want your opinion on plug. Plug, yes. Plug power. I don't care for it. It should have made money by now. It's been way too long. It should have been making money. Let's go to Terry in Washington, please. Terry. Hello, Jim. Thank you very much for taking my call. It's truly an honor to be talking to you today. Thank you, Terry. I'm a long-time listener and a current reader of your latest book on how to make money in any market. Thank you. Thank you. Thank you very much for your insight and your teachings and the great work that your staff does in helping us. Thank you. Staff is great. Small investors to make a great, great strides. Thank you very much. I'm currently with the shows about. Thank you. Yeah, great. I am looking at a pharmaceutical stock right now that has a forward PE of 18 to 19, a paid ratio of about 1.6 rising earnings, excellent product pipeline. Since establishing my position in this, I've seen some concerning oscillatory behavior with some big downsides followed by some subsequent upsides. And I'm wondering what your thoughts are on Regeneron, pharmaceuticals. I think Regeneron, I think Len Schleiber is doing an unbelievable job. I think the stock's breaking out here. I really do. I looked at it for the travel trust. Added an AMGEN. We bought another stock, but those are the two I really like. I have to sneeze just a second. Okay. Yeah, you listen, people on TV don't sneeze. I sneeze. I mean, look, I mean, there's nothing I can do about it. And that, ladies and gentlemen, concludes it of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, could some positive AI news out of Amazon finally give this stock a boost? Kramer's taking a closer look. Next. Booyah Jim, your integrity makes you the Booyah saint of Wall Street. Booyah Jimmy Chills. Booyah Jimmy Chills. Booyah Jim. Quite truthful. That's a lot of Booyahs. When you're in a position that seems like it's just kind of marking time. Especially when it's a large position. You need to be sure that something hasn't gone wrong with either with the company or maybe with your analysis. That's how I've been feeling about Amazon, which we own for the travel trust. Look, here's a great company. We all know that, right? We all love. But for the past five months, it's been a lackluster stock. So we need to make sure that maybe, I don't know, maybe it's lost its mojo. Sure enough, the annual Amazon letter came out today written by a CEO, Andy Jassy. And it reminds you of just how stupendous this company really is. I believe this must read letter is why the stock rallied a quick 5.6% today. Jassy comes out of the web services business and starts his note talking about how AWS was a bit of an afterthought until it started taking on startup clients, DoorDash, Pinterest, Slack, and then only the CIA, Netflix, General Electric. Amazon web services should do $161 billion in sales and jewelry. It's incredible. Now, I've been concerned that Amazon was spending too much on satellites and drones. This letter tells me that I am raw. The $4 billion they've committed will lead to as many as maybe $1 billion more packages per year. The low-Earth orbit satellite business will span the globe. It's going to offer Wi-Fi to Delta while providing service for ATT, Vodify, NASA, among many other enterprises and governments. Same-day delivery is on the rise, which will help the grocery front. Again, I've been skeptical of grocery. I've watched the rise of Walmart's delivery business, and I thought it was at the expense of Amazon. I'm more comfortable now, even as I am continually amazed by Walmart's ability to adapt. But back to Amazon. The thing they reassured the most about this stock was their tremendous commitment to artificial intelligence. Jassy put my mind at ease in incredible fashion. Listen to what Jassy's words here. I thought they were amazing. Quote, I've followed the public debate on whether this technology is over-hyped, whether in a bubble, and if the margins in return on investment capital will be appealing. He goes on to say, quote, My strong conviction, at least for Amazon, is that the answers are no, no, yes. How does he justify saying yes to the Schumann-Gespen? Here's how Jassy puts it, quote, We're not investing approximately $200 billion in Catpex 7, 2026 on a hunch. Then he adds, Of the AWS Catpex, we expect to spend 2026, much of which we monetize in 2027 and 2028. We already have customer commitments for a substantial portion of it. Yes! All I can say is he wishes he had more compute. He wishes he could spend even more. Suddenly, you hear from so many of NVIDIA's customers, many of which NVIDIA's Amazon's built so much of his own NVIDIA, and they are made a close partner. But the letter also says they developed their own chips, which are in high demand, scorching demand, I should say. Here's how Jassy puts that, quote, Our chips business is on fire, changes the economics for AWS, and will be much larger than most thick. And there it is, exactly what I needed. A roadmap toward making a huge amount of money in a relatively shorter time than I thought investing in AI. And it's a lot more than just a smarter, Alexa or more exciting Rufus. Several years ago, I asked NVIDIA CEO, Jensen Wong, how buying his expensive chips would pay off. There's been a lot of gripe at the time about the cost. He said you can get a 4-1 return on these chips. I don't know whether Amazon can get that kind of return on its chips, but from the sound of things, I think it sure seems likely, maybe even more. So do I keep Amazon for the trust? You have to read the letter? Honestly, even though we have an extremely low cost basis and we own more than enough of the stock, it was such a good sound. It sounded so good, I'm tempted to buy more on the next dip. I don't know what else I can say other than, thank you, Andy. Great letter. I like to say there's always one more consumer products with just for you or your man, money. I'm Drew Cramer. See you tomorrow. 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. 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.