Mad Money w/ Jim Cramer 2/4/26

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. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. other people want to make friends? I just want to make you money. My job is not to entertain, but to educate and teach you. So call me at 1-800-743-CBC. You can tweet me at Jim Cramer. There is a reason I always hesitate to recommend the hottest stocks in the market. The ones with the parabolic moves, the monstrous one-day gains. Why? Because days like today, that's why. Days where you can lose so much money in the high flyers, more than you made when they were going up, that it just takes your breath away. Sure, once again, the averages mask some of the pain, with the Dow gaining 260 points, S&P shed 0.51%. NASDAQ did tumble 1.51%, though. We have plenty of winners today, mainly the stocks of companies that can improve their businesses, presumably by using artificial intelligence. Transport, industrials, retailers, restaurants, healthcare. On every single conference call, they talk about how AI is saving them money or making them money or certainly making them more productive, even if in reality it's marginal or even fanciful or worse, yes, chimerical. We have companies that were supposed to have their earnings hurt by the GOP-1s, companies like Campbell's or PepsiCo or Smucker or even Kraft Heinz that could benefit from AI. Their stocks are going much higher as if the GOP somehow stopped working and we all got hungry for junk food. But then we have the chief maker of the GOP-1s, Eli Lilly, soaring more than 10%, as it rolls out trial after trial to see what these drugs can do beyond weight loss and diabetes. Things like alcohol and tobacco addiction, they can make the ATF obsolete. Lilly's got a joint venture with NVIDIA where they're going to treat hard to treat, going after hard to treat diseases. Hey, come on, with that kind of firepower, they'll develop a new line of forever people. Lilly's gain is also arch rival Novo Nordic's pain. It's not enough that President Trump wants to annex Greenland. Eli Lilly's constantly taking share from Danish Novo Nordisk. We've got Novo on tonight, and you may actually want to sample some or at least consider the GLP-1 pill form that they have, where you have a momentary edge over Eli Lilly. Still use an injector there. Lilly's not alone. The irrepressible Johnson & Johnson along with the effervescent Merck and Amgen, they simply refuse to quit. Why not? Even after the runs they've had this year alone, their stocks are not expensive versus the rest of the market. These are old-fashioned solid earners without the Tony Soprano overtones. The banks are crushing it. When they say they're using artificial intelligence, guess what? They really are. They're probably sampling the new Anthropic product that can help their general counsels to keep some legal work in-house rather than paying through the nose for outside counsel, much to the chagrin of, say, Thomson Reuters, which has a similar product but apparently not as good and much more expensive. The revolutionary Anthropic can also write code for you if you ask it to measure your software systems versus, say, what the program says is the best. It's basically a knockoff version of Gartner, which is why that stock's down a cool 37% since the beginning of the year. And the industrials, the old-fashioned non-data center industrials, are looking like huge winners from AI, even if we don't know yet whether they deserve it. These stocks are doing so well, Honeywell, Dover, Emerson, wows it, can they run. But in reality, all they're really doing is catching up with the rest of the market. They are not expensive historically versus the S&P 500, which is how you evaluate these things. These winners are why you should be invested in individual stocks. Think of what they've done. They have earnings. They have dividends. They have they're not that expensive, at least versus tech. They are delights with buybacks. They don't overpay the people with stock options. Plus, during earnings season, they can give you huge upside surprises and their stocks are being rewarded this year. It's how the stock market was meant to work. It's how stocks worked before tech took over and made itself the only investable part of the market. That's over, too. I don't know if there's still a huge amount of hope for tech. There's some, obviously. Tech's a good part of the market. It's just that many of these stocks suddenly aren't worth as much as we thought. Some of that's because the whole enterprise software cohort has gone out of style, thanks to AI. More on that later. On the other hand, we have lots of companies that don't make any money and got infected by speculation. These were the year of magical thinking stocks I told you to avoid, the ones I warned you off back in October. We don't want to own quantum stocks anymore because they're 20, 30 science projects, flying cars. Hey, Boeing's got a flying car if you want it. Just go on Boeing, will you? Have anything to do with batteries? No, thank you. Don't you know the president likes fossil fuels? Get with the program and sell those bad boys. Oh, and it gets worse. Nuclear power? Sure, the president wants it. I don't blame him. Long-term, nuclear is the best way to generate clean energy and keep all these data centers running. But let's face facts. We're building up the Temkin Village, Gemini, of nuclear shells that won't be ready until 2032 at the earliest, probably later than that. You want to wait in Ocklow? Be my guest. I'd rather wait an Oreo, which is, of course, made by Mondelez, and they had a not-so-hot quarter. Oreos are safer. Can we spare IREN? That's I-R-E-N. Can we not own Nebius? I mean, those could be halved and then halved again and still be outrageously expensive. What about all those crypto derivatives that people fall over? The immersive bitcoins, the strategies, a.k.a. micro-strategies, they report tomorrow. I'm saving the best for last, the overvalued companies that are made up of really smart coders when we don't need coders that much anymore. AI is getting so powerful that this entire profession ain't what it used to be. All the coders turned out by Stanford these last couple decades they were so envious of, they are about to have a hard time. For the first time in 30 years, I can admit that Stanford was my safety school when I applied to Harvard. Didn't need it. We know some tech companies can transcend the morass. Alphabet, the parent company of Google, reported a stunning quarter this evening with their Gemini 3 platform already racking up an astounding 750 million monthly average users. But any gains could be a little muted there because they are spending about $175 to $185 billion on capital goods. Wall Street was only looking for $115 billion. That's a big chunk of money. By the way, a lot of it could be headed to Google favorite Broadcom. But it's a $4 trillion company. I'm not sweating the program. Gemini is winning the AI race, at least on the consumer side. So I think it's worth every penny to spend. Remember, Google spent to defeat Bing and all other comers. I think it's doing it again. It worked. Oh, and how about buying the hottest of the hot? If you want Sandisk or Seagate or Western Digital, even Micron, you know what it's like to fly too close to the sun. In fact, does anyone here remember the legendary Richard Pryor? He knew what it was like to own Sandisk. It is like being the first man on the sun. I had to do it. Never fear, though. There are solid tech companies that make a lot of money, do big buybacks and even offer dividends. They can still go higher, but they're paying penance right now for the stock exes of their brethren. When they're done cooling off, these are going to come back. However, their future rallies will be driven by higher earnings, not higher priced earnings multiples or higher priced sales multiples. They have to start making a lot of money. Now, there's something good going on here. The speculators, the Bitcoiners and all their somewhat bogus derivatives, which were supposed to be used as currency, but probably never will. The blockchainers, the quantum computers, they are supposed to. Yeah, they're going to go away. The phantasmagorical electric Kool-Aid acid test cars. They're all shrinking. I don't want their owners to go with them. If you own these, it's still not too late. But if you're not willing to diversify into a Kimberly-Clark, if you can't take owning a Vartis or a Generon, if Federal Express is too much of a drag, it may be too late for you. If so, the bottom line, let me give it to you. If you despise diversification, I got some real bad news for you. If this volatility keeps up, volatility being a codename for getting the bejesus kicked out of you, and you stay undiversified, then you're going to get smashed by a Bitcoin derivative, one that guarantees you the full faith and credit of an analyst or a hedge fund manager who spouts their virtue on every media outlet. I say these things should never have been born for lots of these incredibly. It's still not too late to sell. Sell, sell, sell. I want to go to Joe in New York. Joe. Mr. Jim, thank you for your insight. Much appreciated. Thank you, Joe. What's up? I'm looking at a $300 stock that's now $55. I've been buying on the way down and crying. Since November, it's moving sideways. I want to know, do I put the moron position on or has my circle flatlined? Circle Internet. Yeah. No, I don't really want to own that. Look, maybe it bounces and then you can say goodbye. But that one flew way too close to the sun. You don't want to be the first man on the sun. I know what that's like. Okay, look, you have to stay diversified while this rotation plays out. It might be painful to see tech go down, but we'll pick among the good ones when they're done. May I have money tonight? Is now the time to buy the dip in the shares of Novo Nordisk? I'm sitting down with the company's top rest to see where one of the leaders in the GOP-1 space can go from here. Then Banco Santander has been on fire over the past couple of years, and I'm learning more about the company's monster move hire with the CEO. And a beaten race quarter wasn't enough to send shares to take to Interactive hire today. but is now the time for investors to take a closer look at your video game developer? I'm sitting down with a company stop brass to find out. So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. 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. What went wrong at Novo Nordisk? Yesterday, the Danish drug baker behind Ozempic reported, and the stock plunged nearly 15 percent, forsinking another 6 percent today, while the quarter was fine. The guidance, let's just say it was brutal. They talking about a 5 to 13 sales hit this year Thanks to pricing pressures amid fierce competition for the GOP business It seems Eli Lilly eating their lunch even if it is a lunch that has no taste the inevitable result of all GOPs. So how bad is it exactly? Earlier today, we sat down with Mike Dustart. He's the president and CEO of NovoNorz. You got to look at this. Mike, welcome back to Mad Money. Thank you very much for having me, Jim. OK, so I have to admit I was surprised at what you're forecasting. And the reason I say that is because you have a very competitive set of medicines versus Eli Lilly. You are obviously first, geez, first mover in the pill, which is going to be very big. Your numbers are great for the pill already. And yet you did not guide to a number that I would have expected, given your edge over Eli Lilly. Can you explain what happened? Of course. So the pill has had a phenomenal optic, Jim. It has been probably one of the best, if not the best, pharma launches, albeit on a short period of one month. We have now on a weekly basis, 50,000 prescriptions coming in. And that actually translates to 170,000 Americans are on the pill in four weeks time. So this is better. And just to put it in perspective, Jim, this is two times better than when our competitors launched ZepBound or 15 times better than when we had our Vigovie injectable. So that is good. But of course, the pill is a new business. What has happened is on our existing business, on semaglutide injectable, Ozempic and Vigovie, we have been quite transparent that we have reduced the price in order for the volume uptake to happen in a much faster way than in the past. And of course, when in a large base, you reduce the price, you see the impact of that immediately in a given year, while the volume uptakes comes much more gradually throughout this year and of course much more into the following years. Well, but Mike, I've got to tell you, Eli Lilly has not had a similar response. They are actually being able to make it up in price. I know typically as a business person, it doesn't work like that, but it is working for Eli Lilly. So now I'm concerned that perhaps competitively you're losing some edge because they have taken share. Given your similar price structure, I'm trying to figure out how they could take share. So there's actually three things here that we need to separate them. There is the pill. Clearly, we have the most efficacious weight reduction pill that there is. And I'm very optimistic and bullish on when they come with their pill and we have to battle this out. Then there's the injectable. On the injectable front, Jim, last time we spoke about, we did touch upon the fact that the world right now believes trisepatide, Lily's product, is the more efficacious drug out there at 20, 21% weight loss. And semaglutide is at 15. So the preference share, there is no secret, is on Lillie's side. But I also mentioned to you that we have a plan for that. Medicine is dosed differently. And the higher the dose, the higher the efficacious elements of the medicines. Pretty much all medications, when you higher the dose, you get more effectiveness coming out of it. We have done a trial called Step Up with semaglutide at 7.2 milligram that shows actually weight loss efficacy on par with trisepatide. So my job, of course, is now to bring that product into the market, the Vigovie high dose, as soon as possible. And basically explain to the world out there that now you have basically similar efficacy on the two fronts, both for us and Lily. In addition, semaglutide gives you cardio protection, liver protection, kidney protection, and then allow the world actually to pick whichever medicine they want. And I do have hope that many more patients this year will get attracted now that the weight loss profile goes higher up with that introduction than they did last year. Excellent. That could really cut in your favor. I want to go back to the pill. Eli Lilly tells me, and yes, they're later, it could be as late as April, that the pill can be taken any time in the morning. My understanding is there has to be a goodly time between when you take the pill and when you can eat for breakfast your pill. Do you think that people will rebel against that? What happens if you take the pill with breakfast? So 170,000 people this month took the pill and we did not hear a single complaint. So while I 100% understand that our competition has to find their niche and their speaking points, and I respect that, my job is to listen to the patients and not listen to what my competition says about my pill. The patients out there have spoken and they've spoken loud that they don't mind when it comes to higher efficacy. They will take basically the higher effective product. And to make it even more robust for you, Jim, we have the same pill for diabetic patients called Rebelsis. And we've had it in the market for a number of years and we have one and a half million people on it. And the last thing I would hear from these million and a half patients is that the dosing regimen is an issue. So I'm very, very optimistic that that is going to be a non-issue. All right, then I've got to circle back, Mike. I listen to what you say about the pill. I listen to what you say about the injection. I listen to what you say about what the patients are saying. And I come to a conclusion that there's just no way you're going to have this shortfall, that there's just no way that this was a correct guide, that you are far too negative, that anyone who is selling the stock right now is making a very big mistake because you may have a superior three months. So can you tell me what I'm missing when I say all these good things about the company that is Novo Nordisk? Well, first, I appreciate you recognizing that Novo Nordisk is a good company. My job is to really make sure I steer Novo Nordisk over a longer period of time. Internally, Jim, I say this is a marathon and not a sprint. Even though every single day we got a sprint on our daily activities, the war and the battles are won in a marathon passion and not in a sprint. My job is to really make sure that when I stand in front of you and say, this is an area that 2 billion people are suffering from, and I feel responsible to addressing their unmet need, that I actually find a price point that they can afford it. You and I know very well at the prices that GLP-1 was sold not long ago, 2 billion people cannot find that affordability. We have seen when we price our products right, as we did with the pill, how fast the volume uptake is. So my message to you, investors, myself, is be a bit patient. Better days are ahead of us because volume uptake will come on the back of lower prices. Well, I do want to just to complete the thought. When I think about the pill and what you just said, that there are no complaints, I had thought that there might be. I think your first mover advantage in the pill is going to be far greater than your first mover advantage that was with the injection because of the changing of how much better Lilly did. That this could be a major game change, because if you are ready with the pill, and that's what I want to know. Are you ready with the pill? Because you may be able to take a huge amount of share in this business and not lose any, which would make me think I got to buy Novo Nordisk. we have we have been saying that we are ready with the pill from day one we feel very confident from a supply point of view which is unfortunately the issue we ran into with the injection we are very comfortable with the pill and and the supply level of it but i also once again remind you there is right now one new pill going to come out soon from lydia there's going to be a number of other pills are going to come out all of these pills jim and you understand the science quite well. All of these pills are small molecule chemical entities. The pill that I'm selling is a large peptide protein encapsulated in a special technology called SNAC. And that's why it's able to give the same efficacy as this injectable sister Vigov injectable. So it's really, really important that we actually recognize this is a different pill than all others. Absolutely, which is once again why I think that your guidance is very conservative. How about that, sir? It's Mike Dustart. He's the president and CEO of Novo Nordisk. Thank you, Mike, for coming on the show. Thanks very much, Jim, for having me. Yeah, Mike's back here. Coming up, after a strong earnings report, Banco Santander is continuing its surge. Now Kramer's speaking with the CEO about the Spanish bank's growing plans for its U.S. footprint. Next. 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 Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts. This morning, we got excellent full-year results from Banco Santander, the Spanish banking powerhouse with a stock that surged 142% over the past 12 months. A bank! We also learned that they're buying Webster Financial. It's a community bank based in Connecticut, a real good one. It's all part of their plan to dominate the northeastern United States. I think this one's on track to become one of the most profitable banks in the world, marching steadily towards their goal of 20 percent return on tangible equity by 2028. Wow. Don't take it from me. Earlier today, we got a chance to speak with Ana Boutin. She's the executive chair of Banco Santander. Take a look. Ms. Boutin, welcome back to Mad Money. Hi, Tim. How are you? Well, I'm good because once again, you delivered for the people who are in your stock. And by the way, a lot of them got in because it was a three and four when you started coming on. And now, of course, you have a triple or more. And one of the reasons why you have that, I am so impressed. You go for profitability. That's been your mantra. And it's working at every country that you're in. Absolutely. Profitability, being the most profitable bank in each one of our businesses and geographies, is our big goal. And obviously, we also want to grow. So yes, profitability and growth. There also is a strategy that I think is a little holistic. A lot of people in America, the big banks, they just want rich people. They do. That how they claim That how they make the big money You go for scale In any other business if we were doing technology we know that scale is win Your scale has propelled you to be the largest bank in Europe but possibly soon the largest bank in the world. So I like to say that we are one of the largest banks in the world by what matters, which is the number of customers. In 2025, Jim, we grew 8 million customers, and we're now at 180 million customers. We grew revenues. We had lower cost and we delivered 17 percent earnings per share in 25. And we grew capital to 13 and a half. So a very successful year. And yes, we care about growing customers. And we believe having a large number of customers is what ultimately reflects on a good business. That's why we grow because our customers come and join us. One of the things that will make you grow rather a little more quickly is this acquisition of Webster in a very wealthy area of the customers are in New York and Connecticut. What made you choose that area? And are there great synergies already so that you can start making even more money once you close that deal? So the first thing I would say is that it's hard to buy a good bank and Webster is a very good bank. So that is a fundamental criteria for us. Second, they have a very complementary business to us. We're in consumer banking. They're in commercial. So together, Webster and Santander will become the fifth largest bank in its footprint, which is the Northeast, and we'll have an 8 percent market share. But very importantly, combined, we'll get to 18 percent, 18 percent return on tangible equity by 28. That will make us one of the most profitable banks in the United States. So tell me, are there something else that you're doing that I think is very exciting? I'm not sure it's going to extend to Webster. But when you speak to young people, they're very much drawn by the fact that you can get 4.2 percent. Now, you introduced that program on our show. It is, from what I can tell, the highest rate that you can get. Will you be able to open a lot of new accounts in Webster when they see if you do extend that rate, the Santander rate? Would you take it there? So that is a different part of the bank. That's Open Bank. It's a national digital bank that will continue. That's the auto finance and Open Bank is across the United States. Webster and Santander Retail Bank is in the northeast, and that covers the area, you know, that you know very well, which is an area as big as the United Kingdom. So they will have different strategies. Open Bank, eventually, you know, the services will be extended to all our customers. But think of the retail commercial bank of Santander Bank and Webster in the Northeast and Open Bank National across the whole United States together with our auto business. Well, people do like the national the national rate. Now, I want to talk about auto. Some of my friends who are in that business are starting to worry about subprime, starting to worry about the consumer being stretched. Are you doing OK when it comes to keeping originations high and not having credit woes? So we see the U.S. consumer very resilient. Yes, you know, things have gotten a bit more difficult at the lower end, but still we're getting very high recovery. So people might take a bit longer, but they end up, you know, paying and being whole. So I would say the U.S. consumer is overall still doing fine. All right. Now, you like to shuffle your point. At least on the other side. OK. Yeah, on the other side. Right, on the other side. That's what I care about. Now, you do shuffle things. Poland was a country that's good, but you kind of doubled down on the U.K. and you removed yourself from Poland. How do you decide where you want to make your big bets? So, you know, 25 was a very, very good year for Santander. We met all our targets. We took our ROT at the group level to over 16%. What matters to us is that in the markets where we have a presence, that we have strong network effects, not just within the country, but with the other Santander countries. And Poland didn't have network effects with the rest of the Santander footprint. You know, we got a good offer at 2.2 times book value. We have reinvested that in the UK with TSP, where our shareholders are getting, you know, 20 percent return on invested capital. And in the U.S. with Webster, where we have also a 15 percent return on invested capital. But very importantly, the U.S. has very strong network effect with Latin America. You know, Jim, very well that we're in Mexico, we're in Brazil, and there's more and more connectivity between the United States and our Latin American banks. And that makes a huge difference. And, you know, that is why we were the best possible buyer for Webster, together with a global scale of our platforms. Well, let me ask you, what does it look like worldwide now, given the fact that you have 180 million customers and you're in so many different countries? What is the what is you when people go to Davos say, well, they kind of have a view, but it's all very anecdotal. You have an empirical view. What is the view from where you sit about how the world is doing? So the Santander world, which is Europe and the Americas overall looks better in 26 than it did in 25. There is a lot of uncertainty, obviously, valuations, markets, all the things we know. But if you look at where we expect in a base case growth, unemployment, inflation, the U.S. looks better. Spain looks at least as good, more or less, as last year. Those are two big markets for us. Brazil will slow down a bit, Latin America, but still with growth. So, you know, I'd say solid growth, not great, but solid growth. inflation either stable or coming down and unemployment holding at quite high levels. Those are the things that we in the banks, you know, and I think most people would look at. And they look pretty good. Well, I want to leave it on that because I think it's a terrific note to do so. That's Ana Boutin. She's the Bank of Sandero executive chair. And what a stock, much better than any of the performance of any of our banks. Thank you so much, Anne. Thank you, Jim. Never even back it. Coming up, are investors underrating Take-Two Interactive? Kramer's connecting with the company's CEO to find out if the stock is about to level up. Next. All right, here we have an old friend and a great stock, too. Last time we got results from Take-Two Interactive software. That's the big video game publisher. Well, the actual quarter was solid. The four-year forecast was terrific. And they got Grand Theft Auto 6 coming out in November. But the stock still lost more than 5% today, and that's on top of a brutal decline earlier this week. Unfortunately, Take-Two reported just as everybody's freaking out about Google's Project Genie, an AI platform that seems like you can create video games out of whole cloth. You know what? I think this may be the last great buying opportunity before... Okay, let's save that for a second. Let's check in with Strauss Zelnick. He's the chairman and CEO of Take-Two Interactive, by the way, who has never led us astray. That is very difficult in a 21-year existence. Mr. Zeldek, welcome back to Band Money. Great to be here, Jim. Okay, so Strauss, first, I want to just tackle something head on. Let's say that I were to develop a really terrific video game, and I did it on Google, and I did Genie, and I put it in YouTube. How much money would I make? Look, there are examples of independent developers doing really well, and that's great, because creator content sits aside professional content. It's a small business, but it's a business now and then, but very selectively. Okay. The truth is it's really hard to do and really hard to market, of course. And those are what matter. And tell me, of the 20 video game companies that are left, you're the only independent left. Well, assuming the EA deal closes, we'll be the largest public name, PurePlay. I look at it like this. If I were using that and I had a really great one, I'd be knocking down your door in order to be able to get your distribution system. And the marketing dollars that we can put behind a product and the risk that we can take. OK, I just want to put that out there because business people who heard that would say, you know what, this is really not the end of Take-Two. And if anything, Take-Two actually could be a beneficiary. I mean, that's the key point. The key point is that our business has availed itself of machine learning and artificial intelligence since the beginning. We make our games in computers. New technology is great for us. We have hundreds of AI projects going on now at Take-Two and our subsidiaries. This is a good thing. We're already driving efficiencies, and it's already helping us with creativity. But you can't confuse tools with entertainment properties. They're different things. Now, I know that, you know who explained that to me first time? Jensen Wong. When he talked about ray tracing, I said, who's using it? I said, well, the only people who really know how to use is Take-Two. And because he's a gamer, and he knows that. You were asking about it very early on. Yes. Now, he's a gamer. Now, I do want to talk about things that do matter. OK, for instance, before we get to GTA launch, mobile strength. Really incredible. Yeah, we're up 19 percent year over year. And it's really across the board. It's our legacy games like Tomb Blast up 43 percent year over year. Empires and Puzzles, 11 percent. Words with friends, 6 percent. And then new hits, Match Factory and Color Block Jam. It's really hard to create new hits in mobile. Our teams have been able to do that over and over again. It's been a great accretive transaction for us. And there was a time when you were kicking yourself. You didn't have anything in the category, and you told me you knew the category was big. Right, and it is the fastest-growing part of the interactive entertainment business. Okay, now, NBA 2K, some things just don't run out, do they? If you keep doing great stuff. The work has to get better and better. Visual Concepts, which is the label that makes NBA 2K inside the 2K label, just sets the bar higher and higher every year. We're up 30% year over year. We've sold in 8 million units, and it is, of course, the biggest-selling sports game in North America. Now, before we get to GTA, tell us what else has part of the library that you actually have kind of paid for that is still making a lot of money. Well, our catalog alone generates, I don't know, 35 percent of our net bookings year in, year out. That's the gift that keeps on giving. Right. But the titles at 2K include Borderlands, Borderlands 4 just came out, Civilization 7 came out, the Bioshock franchise and many others. in addition to WWE 2K, the PGA Tour title, and, of course, NBA 2K. I mentioned some of our mobile hits, and there are many more to come. We also have Top 11, a lot of other great titles. And even at the Rockstar label, it's not just about GTA. Red Dead continues to be a huge contributor to our earnings. So we have frontline new intellectual property, frontline properties that are sequels, a lot of those. And then we have a big catalog and then of course live services All right Now let talk about the greatest entertainment vehicle of all time Is that definitely I think that true Yeah right There nothing that comes near it When the I got the earnings the first thing I did was go and check the date because I know that you're not going to release something until it's perfect and I wanted to be sure that this November date is still right November 19th. Now how do you know How do you know it's going to be ready that day? Well, because we actually obviously track the progress daily of everything that we do. And we also announce that we have marketing beats coming this summer. We don't spend money on marketing until we're pretty close to release. Do you really need to spend money on marketing on what I think is one of the greatest word of mouth products in history? We do. I think there's a difference between awareness and energy, and we need to create the energy. We do have the awareness. The anticipation is huge. It's bigger than ever before. But in our business, you do have to tell people what's coming. And our consumers want to know that this is going to be great and they want to see what the visuals look like. It is a challenge because we want the product to be authentically owned by our consumers. And so the marketing has to be delicate. It has to feel like, you know, this is real. This is not we're not selling hamburgers. We're selling this unique art form. Now, one last question and it's right along those lines. Jensen told me that sometimes you need to upgrade your equipment in order to be able to deal with the greatest stuff that you're doing. Will there need to be an upgrade cycle just to be able to do GTA? Well, we're launching GTA 6 on the newest consoles. Those consoles have been in market for some time. So some people who don't have those consoles might have to buy them. And I think we'll probably energize console sales. But no, the technology is in market. I actually thought about telling people to buy Best Buy because of this. There's other problems with Best Buy. But, yes, I think there's going to be an upgrade cycle that's much better than, say, the co-pilot upgrade cycle. Again, I think there's a lot of energy around this property. Fingers crossed. Well, I've got to tell you, it's great to have you back, Strauss. You just have built an amazing company. I know you'll credit many people. I was going to say, I'm fortunate I have this amazing team. The best creative talent in the business, the best executive talent in the business. Okay, that's Strauss Zelnick. He's the chairman and CEO of Take2Interactive. And yes, I do think that you're getting a chance to buy it. It actually, I didn't think what a car, the money's back there. 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 round. Chris, we're going to wrap our course. Same in the stock center. Bye-bye. So, so, just, you know, so, so, so, so, so, so, so, so. My step first, please, we're going to plan a sound. And then the lightning round is over. Are you ready? Skid, dad, come on the lightning round. Chris, what's up? We're starting with Michael in Washington. Michael. Michael. Hello. Hey, it's Kramer. What do you got, my friend? Yeah, it's Kramer. What's happening? Jim, I believe the recent gold sell-off presents a rare buying opportunity in the miners, which report soon and should see unusually high margins, cash flows, and profits since gold prices are up sharply over the quarter, and costs are down due to cheap oil and AI productivity. I own lots of Agnico Eagle, the premier firm, and I'm now looking at Newmont, which last quarter rose. No, Dean, you own the best. You own the best. Own a bullion other than that, and I think you'll be fine. I need to go to Peter in New York. Peter. Booyah, Jim. Booyah. How are you? I'm not bad. Good. I'm waiting for the last new copy of your book from eBay. Oh, there you go. I love that. Thank you. Jim, this pharmaceutical company is trading at over $6 today. Their annual revenue is about $600 million and a recent net loss of about $9 million. Is the current price a discount on its rare disease pipeline, or has the market already factored in expectations for the future performance? Biocress Pharmaceuticals, BCRX. No, no, just stay away from that. I mean, honestly, it's just been a very bad stock dome for a very long time, and I don't think it's going to improve. I need to go to Pete now in Alaska. Pete. Booyah, Jim from Anchorage, Alaska, my friend. You need to get up here and do some fishing. I completely agree with that. I did combat fishing up there once. It was fantastic. It was very, very relaxing. Oh, yeah. What's going on? No, no, no, no. Get away from combat. Hey, making this really quick. So I've got a position, and I'm looking to increase. Just want to know your opinion on continue to hold or buy NXT, next power, formerly next tracker. All right, that's Shug, Dan Sugar. We actually owned it for the trust. We sold it to you soon. He is a moneymaker. Just go buy it. That's how good he is. Just go buy it. I love that guy. Let's go to John in New Jersey. John. Hello, Mr. Kramer. How are you doing, John? How are you doing, John? I would value your opinions on SkyWest Incorporated. I buy United and I buy FedEx and you get them both, okay? Let's go to Kevin. Oh, I'm not. I am so not done. I am so fired. Let's stop that right now. Let's go to Kevin in Massachusetts. Kevin. Hey, Jim. Booyah. I really enjoy the show. I wanted to know your take on Synchrony Financials, ticker S-Y-S. I don't want to own Synchrony. I want to own Capital One, C-O-F, the Travel Trust. So it's pulled back nicely from $259 to $225. Now we're going to go to Kenny in New York. Kenny. Hey, Mr. Kramer. Thank you so much for taking my question. You betcha. All right. So I purchased EOS Energy Enterprises last year and was happy with it until now. What's going on with that stock? I mean, it's just the kind of classic. That's a year of magical thinking, magical investing stock. We don't want to touch that one. But it is in Edison, New Jersey, which is where, by the way, Edison was born. It just happens to be a great coincidence. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, for years, companies of coders have dominated. But could their era be coming to an end? Kramer's revealing why he thinks it's time to pull the plug on them. Next. When I got out of school, the goal was pretty simple. Get a job at Goldman Sachs. I did it for the same reason that Willie Sutton robbed banks. That's where the money is. Goldman Sachs was a smorgasbord of greatness. You could go into equities, trading, security sales, fixed income, the bond market, munis, M&A, and then the Mac Daddy of all, corporate finance, with all those deals to be done. incredibly lucrative, big money without being flashy. Goldman Sachs is still an amazing firm, but about 30 years ago, the big money move gravitated to private equity. At KKR, Blackstone, Carlyle, you could take underperforming companies private, then fix them up, sell them back to the public in a fantastic markup. It wasn't easy to work at these private equity firms, but if you got the job, oh boy, you could make fortunes. Then around the turn of the century, the big money moved west. People could start their own companies if they knew how to code. And this was a business that regularly created billionaires. The smartest coders created companies that could help other businesses do everything better. Anyone who knew how to write code was an incredibly valuable commodity. The coders quickly learned to meet with venture capitalists who threw fortunes into them before eventually flipping them to the public for even bigger fortunes like McDonald's, billions and billions sold. The great thing about these enterprise software companies back during the heyday, they didn't have to make money. They just needed rapid revenue growth. Investors couldn't get enough of them, and the coders made vast fortunes. It was a bonanza. Stock-based conversation is a wonderful thing, unless you're a shareholder. But all bonanzas do come to an end, and the enterprise software bonanza seems to run its course. That's what's going on in the market today. Why? Because of artificial intelligence. With AI, you don't need programmers, because these platforms can write code better than humans. I sort of realized this moment was getting displaced the first time NVIDIA's Jensen Wong had me speak into a machine, and out came what I wanted, a Cezanne Seascape, Shakespeare's Globe Theater, Star Wars Stormtroopers. There were no secret coders behind the curtain. Suddenly, it seems like those coders with their expensive wares won't be needed anymore. No more Golconda for these guys. Late last week, an outfit called Anthropic released a number of new AI tools to help professionals in various industries. They're going to save businesses fortune, sales, finance, legal, HR, IT, marketing, all at the expense of third-party software vendors. It's still early days, but I think Anthropa can find all sorts of ways for businesses to save money by getting rid of expensive coders. It could be a coding apocalypse. And that's why all the enterprise software stocks are coming back to earth. When you look at the iShares Expanded Tech Software Sector ETF, The median price to earnings multiple for the profitable companies in this thing has shrunk from 28.4 times earnings at the end of 2024 to less than 21 times earnings today. That's a new land speed record for multiple compression. It's because investors think it's just a matter of time before an anthropic or an open AI crushes the entire industry that these prices are coming down. Now, I am simplifying here. There are plenty of software companies that are unique enough to avoid this fate. Many of them will benefit from using AI tools themselves, but the money will no longer be as bountiful. The IPOs, they could be still warm. The big money is moving on from enterprise software. Right now in the stock market, that cash has been flowing in part to companies that should now be able to save by not spending on expensive software and coding. Maybe they will use AI. And this revolution is happening right in front of your eyes. Be ready. The enterprise software stocks can bounce. It will bounce probably. But they may never be worth what they once were. because maybe they never should have been trading that high to begin with. I like to say there's always more market seller. I promise I'll find it just for you. I hear my 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 Cramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Cramer 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. 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 Boorstin hosts CNBC Changemakers and Power Players. New episodes every Tuesday, wherever you get your podcasts.