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to help you make money. I'm here to level the playing field for all investors. There is always a bull market somewhere, and I promise to help you find it. Mad Money starts now. Welcome to Mad Money. Welcome to Kramer. I must say, I'm not here for friendship. I'm just trying to make a little to teach a little, to entertain a little Call me at 1-800-743-7262 or tweet at @JimCramer. Today, bulls got a nice reprieve thanks to a softer-than- expected labor market report-only 29,000 new jobs in September. When the Federal Reserve tightens policy, we actually have to cheer for weaker economic data, as it could prevent or at least delay an At the same time, our government and
the rest of the G7 countries have agreed to release 100 million barrels of emergency stocks of oil and diesel fuel from strategic reserves over the next 4 months. This led to a slight decline in oil prices, which allowed the stock market to rise. The Dow rose 250 points, the S&P added 0.73%, and the Nasdaq jumped 1.19%. Although the market was much stronger earlier in the day when interest rates fell sharply on weak employment data. Over time, the situation turned around, rates increased slightly, which slowed the rise. Okay, with that in mind, what do we have for next week?
Let's take a look at the action plan. So, first of all, when we go out on Monday, what do we always pay attention to? We are watching oil, and the reason may be that the European Union is releasing diesel and oil from strategic storage. The world is short of diesel. This is indeed a very difficult situation for truck drivers. We need oil around $80 to see a change in market psychology. Until then, rallies like this morning's will be accompanied by sell-offs. Remember this. Tuesday will begin at 9:05 with a speech by John Williams, President of the Federal Reserve Bank of New York, who will undoubtedly comment on the slowdown in growth and
weakening wage inflation that we learned from today's numbers. Last Tuesday, Williams halted the massive sell-off in stocks and bonds, saying that, and I quote, " there is no need to rush" the next rate hike. I would like him to repeat that, because I am a " bull". Remember, rising rates are bad for shareholders, at least in the short term. So, his comments sparked a brief rally. Will he do it again after a week of unexpected nonfarm payrolls? It wouldn't surprise me. We are seeing a sharp drop in the share of investors who now expect rates to rise in the near future. What else? Tuesday could be one of the most important days for semiconductors. Why? Because Matt Murphy, CEO of the very popular Marvell Technology company, is holding a meeting with analysts. Such
events are impressive. I expect Murphy to present a long-term plan, demonstrating how important his company has become to the development of data centers. He built a real powerful company at Marvell, and he's now, you know, he's a young man. He is a recognized authority in the industry. I bet his speech will be very convincing and will have a significant resonance in the world of hyperscalers. After the close of trading on Tuesday, we will receive results from Constellation Brands. This is a completely different situation. STZ is a beer, wine, and spirits company, best known for its Corona and Modelo brands. But I must emphasize that things in this group are simply terrible.
We are witnessing amazing things in this country. This is not talked about enough. A real reduction in the consumption of certain spirits and a sharp slowdown in beer sales. Even the popular Mexican import Constellation. The company's shares have fallen 19% since the beginning of the year. What's worse is that 2 years ago they cost $255. And now it's just under 113. What's behind this drop? Weight loss pills are only part of the equation, but so are the habits of the younger generation, who simply have n't become as avid beer drinkers as their parents.
I think it's a matter of the belief that any alcohol is harmful to health. I'm a proponent of moderation in everything, but my generation simply drinks more than the youth. And you know what the thing is? I believe that alcohol is gradually becoming a thing of the past in this country. On Wednesday night, we'll hear reports from Levi Strauss, the great denim company. Their shares have fallen from $25 in July to less than $20 today. This drop is typical for such a difficult market: due to high gasoline prices and rates, people expect a significant reduction in consumer spending. They are no longer going to buy new jeans.
I don't have a clear answer to this situation, except that Levi's consistently and tirelessly performs at a high level. Speaking of difficulties, we're in for one of the most problematic earnings reports of all time on Thursday morning- from Pepsico. For years, this company has been ahead of its main competitor Coca-Cola thanks to its success in the snack business, not carbonated drinks. This year, everything is going uphill. Coca-Cola shares rose 22.5%, leading the packaged food industry, while Pepsico shares fell 12%. What explains this discrepancy? Everything is simple. You live on junk food- you die from junk food. Pepsico
crushed Coca-Cola back in the days when Frito-Lay's snack business was much stronger than soda or sugary drinks. But now Frito-Lay has found itself under the spotlight of dieters and young, health-conscious consumers. Of course, Pepsico offers a yield of 4.7%, which is impressive. But when 10- year Treasury bonds yield 5.28%, you realize that the risk-free competition looks much better. I really want to tell you that this could be the quarter Pepsico turns things around, but even if I believe it, you'll only get a short-term rebound. So the risk-reward ratio is simply not attractive. Is this too harsh? I do n't think so. Campbell's recently had to cut its dividend.
General Mills and Conagra missed their quarterly results. And yesterday we got a very troubling report from former growth benchmark McCormick, the spice company. I can't recommend something that comes from a packaged food environment if it will only provide a temporary boost. I'm not.We're not traders in this program. On Friday, we'll get data from one of the top airlines-Delta. CEO Ed Bastian made news for choosing Amazon Wi-Fi over Starlink. Elon Musk, who runs Starlink through SpaceX, said Bastian could lose his job for choosing Amazon over Starlink. I wouldn't go that far, but I know that SpaceX stock has gone up. CNBC
Investment Club members know that I really like SpaceX, even if I consider it too speculative for a portfolio. It has enormous computing power thanks to its agglomeration of Nvidia chips. Buy, buy, buy. By the way, they finally broke their all-time high, but then rolled back, so the chart will probably any case, Nvidia can make a lot of profit, given that there is a real shortage of computing power. So if you bought their chips, like Musk did, he makes a ton of money from SpaceX by renting them out, essentially selling computing power. Also on Friday, we will learn the University of Michigan's consumer sentiment index. Normally I wouldn't worry about it, but you know, we're getting closer
to the election. It is obvious that people have become very negative about the economy because of inflation, and this does not bode well for the incumbent party. In fact, midterm elections are almost always bad news for the party in power. On the other hand, we are told that the market produces the best returns when there is political deadlock in Washington. I advise you to follow the news. So, we're in for a quiet week, but don't get used to it. We are on the cusp of a flurry of earnings reports, and this time I don't think we will see the strong numbers we are used to, due to rate hikes by the Federal Reserve, which is determined to curb inflation. We are facing a much more challenging backdrop for the
reporting season. I'm not saying that it's impossible to make money in stocks under these circumstances, but it's certainly much more difficult than it used to be. How about starting with Roger from Florida? Roger. Hello, Jim. How are you? I love your show. Thank you. Roger. Thank you. Thank you for what you do. I would like to know your thoughts on Applied Materials for the next 12 months or so. I am significantly in the plus. I just want to know if I should hold or take profit or you know. This is Gary Dickerson. Um, the earnings look like the P /E ratio is too high. That's because they're likely to exceed all expectations. I want you to stay with Applied Materials. By the way, today Micron has
grown significantly since its time. To get out of the shortage situation we're in, you need a lot of equipment from Applied Materials, as much as from Micron as from anyone else. I want to move on to Michael from West Virginia. Michael. Yes. Jim, this is my first time calling, but I remember seeing you on the Kudlow and Cramer show and then on your first Mad Money many years ago. Oh, I was thinking about that myself today. I saw Carl Banks, he was on that program. But go on, what do you have? Good. I have a very small position that I have held for a long time. I got 149% profit on it. I held her for so long. But it rolled back, and I
never bought any more shares. I am thinking about increasing my stake in Simon Property Group. I would like to hear your thoughts. That's right, Roger. I want you to increase your stake in Simon Property Group. You know, I was in Italy, I went into an incredible outlet mall and I said, "This place is just amazing." I can't believe my wife and I bought things there. It was a Simon Property outlet. And I know the late David Simon told me I had to visit this place someday. Here it is. What a great man he was, he built an incredible company, and you should buy its shares. Let's move on to Ann from Indiana. Ann.
Hi Jim, I'm a member of the club, thanks for your help in starting this bidding cycle. Thank you. I'm looking at my finances, yes, thank you. Just looking at my financial stocks. I just started to increase my stake in Goldman Sachs a little. What do you think? I believe this is the right approach. They're selling now at 13 times earnings, it's the leading franchise in the industry, and only 13 times earnings. This.this is wrong. Many graphs look the same. People think all these stocks are falling. You should pick up a few stocks during the
dip. No one knows for sure where the bottom will be. I think you're doing everything right. Okay, look, next week is going to be quiet, which means you should be more careful and do your homework. If you want to make money in this market, it will be much more difficult. Today on Mad Money: How is SLB using its energy expertise to help build data centers? Who was involved. Don't miss my meeting with the company's management. Then you called about an agricultural company that is currently in the process of being split up. I see the wheat being separated from the chaff, and I will share my vision with you, it is quite exciting. Of course, sentiment around artificial intelligence and data centers changes daily. As I understand it,
what America really thinks about the AI movement is data from consumer firm 100 X. So stay with Cramer. Don't miss a second of "Mad Money." Follow @JimCramer on X. Have questions? Write to Kramer with the hashtag #MadMentions. Email Jim at mad***@c**c.com or call us at 1-800-743-CNBC. Did you miss something? Go to madmoney.cnbc.com not just traditional technology companies that are benefiting from the boom in AI data centers. Various classic cyclical companies have entered this chain, such as Caterpillar, Cummins for electric generators, Ford for batteries.
But this goes beyond the industry. Take SLB, an oilfield services company that is as boring as Schlumberger. A few years ago, they started creating modular infrastructure solutions for data centers. I guess if you can build oil wells in the middle of nowhere, then helping to build these server warehouses isn't that much of an effort. This business is growing quite rapidly and will soon become even bigger, as SLB announced a thermal process management company. Don't worry, we'll explain it. It provides cooling for data centers. You've got me interested. So let's take a closer look at this with Amy Chu. She is the Senior Vice President of Data Centers at SLB, and we'll find out more. Ms. Chu, welcome to Mad Money.
Congratulations, Jim. How are you? Thank you for inviting me. Of course. I'm so glad you're on our show. First of all, maybe you could tell us a little bit about the background of SLB's data center business, specifically how you started with modular infrastructure, so that people can understand how you got here in the first place Of course. This business is quite new to us. We started in 2024. That's when we made the first delivery. And, to be honest, it wasn't that big of a transition. There was a lot in common in terms of our capabilities, wasn't there? You know, we celebrated 100 years of innovation in the
oil and gas industry. But along with that, we also have vast experience in manufacturing and Design is very important, an opportunity to leverage what we do for our clients in key markets: working in challenging environments and helping solve complex problems. We were able to take all this potential, involve our engineers, our platforms, to actively participate in supporting the construction of data centers. Okay, Amy, you just made a purchase. Kelvion, which we mentioned. This means that by 2028 you will become a company with revenue of $37 billion. So, by 2028, can this really help you make a significant difference in your large company's performance?
Yes, we believe in that. We get quite a lot of feedback from our customers. They love it, and I would like to share the story with you. I think it's just incredible. I was at a hyperscale customer a few months ago, and he told me that he did n't need SLB to be just another data center infrastructure provider. He wants us to build on our 100 years of experience in the oil and gas industry. For example, how to implement our practices and solutions to make everything simpler, safer, and faster in our modular design, how we can reduce lead times and really improve construction efficiency for their multi-gigawatt growth. Truth? Truth. So for us, Kelvin is an extension of what we can provide in terms of a comprehensive solution. You know, GPUs do two things, right? Chips
do two things. They issue tokens, but they also emit heat. And there's a huge amount of heat being generated as AI loads increase, right? This heat has to go somewhere. This is where Kelvin comes in. They have the ability, through their solutions and technologies, to take this heat and move it outside the server room, where it doesn't belong, right? So we think we now have a great opportunity to combine these capabilities with our work in modular infrastructure, enabling system design and really impacting the efficiency of data centers. Okay, this week we had Meta. You are working on a project with the Meta data center in Alberta, Canada. Can you describe what this opportunity is?
. This is the first time Meta has built in Canada. And that's why we are very happy that we were chosen as an implementation partner. This is a case where we will be responsible for the design, engineering of their projects, creating off- site nodes, installing on campus, and then commissioning, right? So it's a complete package and we control the entire. I think this is a huge value for Meta because we will focus on every part of this chain, ensuring that the interconnections, the correct interfaces, and that the execution and management of the project are as smooth as possible. I knew you had a long-standing relationship with Nvidia. That's right. This has been going on for a decade, actually since we first became Nvidia customers, and my CEO
Olivier has talked about this before. So maybe I'll talk more about what we're doing now in terms of expanding our partnership with Nvidia. You know, we are a partner in developing modular infrastructure for the DSX reference project. This means working with them on requirements specifications and trying to really set standards for the industry so other developers can work faster. It all depends on the time to receive the token, and any clarity in definitions helps to reach ready-made solutions faster, right?
Another thing we are working on with Nvidia is to become a more active and engaged partner in their partner network. Nvidia does a good job of building such a partner network and ecosystem that provides great support. We are a big part of it, and for example, let's take Invest Texas-it's a developer that has land and energy, but doesn't necessarily have all the components to build a data center and generate tokens. So it's about bringing together all the elements of this value chain and moving forward faster together. Okay, let me ask you. Your CEO knows that I am a huge supporter of your company, and always have been. I even applied to your company. I know I got rejected 4 years ago. It's nothing. But I want to ask: do you receive
clients from companies, for example, in the Permian Basin? Everyone trusts SLB. Do they say, " Listen, I heard about your division, and we're trying to quickly build a data center to accelerate tokenization, all that stuff." "Can you help us?" Is this already starting to happen? Yes, we get calls often. We have a lot of conversations with customers. I want to take a moment and explain what we do differently. You know, one of the biggest constraints in construction is not the demand for AI, right? This is access to computing power and tokens. And between the power grid and the chip, there's everything from power supply to structures, substations, and the construction of the entire campus, right? So what we propose as a difference is the idea of modularity. This is not a
traditional phased construction. When you build a data center, you build it according to the traditional scheme. Most people, or let's say some, still use the practice of taking a traditional building, maybe encircling it with four blocks, and saying, "I'm going to take this off- site." Yes? So, there is a version of understanding modularity that is exactly like this. You pre- fabricate everything off- site. What we offer our clients is a preliminary conversation about design principles regarding ease of construction, transportability, and configurability, you know? And this allows us to provide speed for our customers. This word " speed" is a term that another hyperscale client uses with me. How to actually work faster? And it's not just about
speed, it's about reliability, about quality, so that when these little treasures arrive on site, we can install them faster, without any problems, and with higher reliability. So you don't waste time fixing mistakes because the parts don't fit together, right? Okay, that makes a lot of sense, and I'm glad.look, I think SLB is a great company in itself. I really like what you do. We saw it with Cap, we saw it with Cummins, we see it with Eaton. These are just great American companies that have reinvented themselves, and you are in that niche. This is Amy Chua, Senior Vice President of Thank you, Amy. I'm glad you came.
Thank you for inviting me. OK. Mad Money returns after a break. Next: Should you pick up Vylor shares after the company spun off from Corteva? Kramer understands. Further. On Monday, Ken from Texas called to ask about Corteva and its new subsidiary Vylor, v-y-l-o-r. I promised to answer him. Remember, Corteva was one of three companies created as a result of that massive separation after the Dow DuPont merger. They got agribusiness. We know that Corteva performed very well after the collapse of Dow DuPont. It has more than tripled since separation.
Going back to the two companies, I remember when she was the outsider among the three. The new companies are Dow, the new DuPont, and, of course, Corteva. But now they are trying to repeat that success by spinning off their seed business as Vylor. This happened yesterday. It was surprising because Corteva stock seemed to have lost quite a few points. It happened because of this. The remaining Corteva is now focused solely on plant protection. Vylor deals with genetically modified seeds and its patents. They have many common clients, but the economics of the business are very, very different. In particular, genetically modified seeds are a high-tech business with high margins. Plant protection is more of a consumer product. That's why Frank Mitch, my
favorite chemical analyst at Fermium, says Vylor is the cream of the crop and Corteva now has to prove its worth, even with great management. That's a good reason for division, isn't it? Because Vylor will be able to achieve a much higher valuation as a stand-alone asset. Buy, buy, buy. Morgan Stanley made some interesting points in its report, setting a price target for Violor at $85. Keep in mind, this is a stock worth $67. There's nothing special about a chemical company like Corteva, which makes pesticides and herbicides, but a highly specialized genetically modified seed company-something we have n't had since Monsanto sold to Bayer 8 years ago. Now it is buried inside a
larger conglomerate. In other words, Violor has value because of its rarity. Buy, buy, buy. Natalia, this is the option that excites me the most. Violor produces incredibly stable seeds with high prices. Even during difficult periods for farmers, like from 2015 to 2020, these prices held up. These guys get 71% of their sales from corn and 18% from soybeans. The vast majority of business is conducted in the Western Hemisphere. And when it comes to the best seeds- corn and soybeans-it's a duopoly. The market is dominated by Violor and Bayer.
It takes an insane amount of genetic research and regulatory approvals to even get into this industry, so I'm not worried about competitors using AI to code new crops. And because these companies never stop innovating, they don't worry too much about patent expiration. By the time the old varieties become widely available, the new ones are so much better that farmers have no choice but to continue paying more. Violor now also has a large research business, where they develop seed properties and then license the genes to other growers in exchange for royalties. According to Mitch and Fermium, their licensing business is growing like wildfire.
It should achieve $500 million in revenue per year and reach $750 million by 2030. At the same time, Vylor has an excellent development portfolio. Management plans to launch.Yes, it looks like a pharmaceutical company. Management plans to launch 12 technology platforms over the next decade: seven for corn, four for soybeans, and one for wheat. They use gene editing to increase disease resistance. Hybrid wheat could eventually become a third major crop, with an initial launch next year. I like it. In the long term, management is very optimistic about this business. They are also considering buying back about $1 billion in shares annually from
2027 to 2029, excluding large acquisitions, along with a modest dividend. Mitch expects Vylor to announce a 3-year share repurchase authorization sometime in the fourth quarter. Regular viewers know that I love buybacks, and I can't lie. So how much do we pay for this? Frank Mitch began his analysis of Vylor with a buy rating and a $75 price target, using an earnings before interest, taxes, depreciation, and amortization multiple of around 17. Morgan Stanley's Vincent Andrews is more optimistic: he set a price target of $85, assuming the stock should trade at an EBITDA multiple of 18. This is exactly the profit I just mentioned. This is the same type of indicator. This represents a
growth potential of approximately 26% from current levels. I think that sounds pretty good. However, if valued solely on earnings, the shares are not cheap: they are selling at a price that exceeds earnings forecasts for this year by more than 30 times, and for next year by more than 25 times. I like this business, but it's not showing super-fast growth. So I would say its value already has a relative premium. I think he deserves this award. However, this means they have less market power. Okay, what about Corteva, which is left in crop protection? It's trading at 21 times next year's, but there's a reason for that. Corteva is a stagnant part of the business. Management is talking about 3% annual sales growth from this year to 2029 and 6%
EBITDA growth over the same period. The challenge is to achieve these figures while Corteva faces a large number of generics, especially from China. The company is currently working hard to transition to differentiated products with less competition. It now accounts for 65% of their sales, and they have been getting rid of lower- margin products for years. But even with that, Corteva is moving towards low single-digit revenue growth rates as the rest of their business is under a lot of pressure. Old products face price cuts, loss of registrations, and replacement with new offerings.
Management claims it can execute its plan without a favorable price cycle. I would like to see some evidence of this in numbers. That's why Mitch calls Corteva "a story to prove," and I think he's right. Corteva needs innovation and efficiency to overcome the competitive environment compared to older chemicals. As for Vilar, they need to continue to innovate to fend off competition from Bayer, but it's a much easier situation since they have a de facto duopoly. Ultimately, Vilar is a business with proprietary technology, valuable customer relationships, and an attractive path to increased profitability through licensing and better seeds. I would feel confident opening a position at this company. I would
do it gradually, but I'm sure Wall Street will continue to overpay for Vilar's lack of value. Just remember that it's not that cheap. As for Corteva, I'll wait on the sidelines for now. Management has a smart plan, but I want to see evidence that new products and cost savings will overcome the onslaught of generics. Here is the main conclusion. I really want to thank our viewer for drawing our attention to the Corteva-Vilar spin-off. This is exactly the type of company separation that I like. In this case, I think it's worth owning Vilar. Corteva needs to
prove itself before I'm ready to invest in crop protection products. But I like Vilar already now. I'll talk to Dean from Ohio. Dine. Hello, Jim. I am an honorary member of the Investment Club, thank you for everything you do. Oh, thank you. And don't forget, you get a book if you sign up. Okay, let's get started. What do you have there? Yes. Texas Pacific Land Corporation had a solid 2025 and is doing well this year. Is this a buy, sell or should I hold?
You know, when it comes to oil, I'm very cautious. I say we should choose Chevron because Chevron owns Venezuela. Chevron has the Gulf of Mexico. He calls it the American Gulf, meaning Mike Werth. And there are great assets in Asia and incredible properties in the Permian Basin. So we will focus on this option. I don't want to have too many positions. Let's move on to Stafford from California. Stafford. Hello, Jim. How are you? I'm doing great, Stafford. How are you? I'm fine. Hey, I wanted to get your opinion on John Deere.
I know the price of corn has increased by about 20%, but I remember that corn prices have been low for the last couple of years. So I want to know if you think the commodity market has bottomed out, or what your opinion is. Thank you. I think Deere is a sensation. Not just good, I think it's sensational. They don't do loud advertising. They don't appear on TV, but they are an incredible company. I first started buying it during the 1987 crash, and it's one of the best assets. And of course, anyone who has a John Deere-I mean, I have two of them. Incredible cars. Let's move on to Bill from Massachusetts. Bill.
Hello, Jim. Thank you for taking my call. Of course, Bill. What's new? Listen, I've been analyzing the situation a little bit with this blockade of the Strait of Hormuz, do you think it could be beneficial for NTR because of fertilizers? ? You know what? I think that moment has already passed. I think people are really excited about it. They made a little money and then left. It's not an expensive promotion, but I don't like this type of "cats." These are too hard to catch. This is too confusing for me to support, but thanks, Bill. Thank you. In the Corteva spin-off, I like Bylor, B-Y-L-O-R. I really believe that a separate company is something worth having. And now-there's still a
lot of money ahead. How is your company responding to the weakening trust in AI in America? I analyze the numbers with 100X. And Nike is at a 14- year low after another terrible quarter. Can anything be saved in this shoe company? I focus on one bright moment. And, of course, all your calls will be considered in today's lightning round " episode. So stay with Kramer. Every now and then I like to do a check with 100X. It is a private consumer insights company that collects data based on purchasing intent, not past behavior. It turns out that simply asking people what they want to buy is a very effective way to spot big trends before they become popular. And that's exactly what we
need in the stock market, right? 100X donates money to nonprofits and other causes in exchange for user participation. And they recently crossed the $40 million mark in total donations. Congratulations. Okay, today I want to dedicate an entire segment to what 100X is seeing in the AI space, both in terms of individual platforms and overall sentiment in the industry. So let's dig deeper with Rob Pace, founder and Mr. Pace, welcome back to "Mad Money." Thank you. OK. You know, it's fascinating, because I don't know anyone who has this kind of data except you. And I'm going to ask you a question that I think we're all pondering right now. Do people find AI useful at all at this point?
Oh, he's incredibly helpful. But the caveat is that our AI reviews combine the best reviews we've ever seen with the worst reviews we've ever seen, all in one product. Extremes. These are real extremes. Okay, so are there people who intend to use AI? Oh, yes. I mean a couple of statistics. First, people say they will it's industry number one out of 101, really? which we track. Of course. And Claude is the number one brand among 6,000 others. And they say it helps them with research, with questions, with productivity, uh, task management, automation. This is an amazing technology with huge application possibilities and colossal value Okay, but our
friend Sarah Fryer from ChatGPT won't like the fact that Copilot is leading here right now. Well, Copilot really made a splash, Jim, but I will say that all these results are great. Okay. So, the average for about 100 models is about 4%. They are all leaders in this field. Oh, that's good to know, because I'm very bullish on Microsoft stock seeing this, but I have to understand that the results are actually very close. Yes, they are very good. Okay, now let's take a look. Here is Claude's leadership in productivity. I saw this and said, " Does this mean Claude is losing his edge?" Or is it still, you know, a very, very large discrepancy between It's a large
discrepancy, but I would call it a "plateau." Really? Yes, in terms of current users saying they will use it even more, the situation has stabilized. Okay, now there's another aspect of AI that worries me-I don't use it, I'd rather check this, this, and that before saying anything in this program, because of the reliability issue. I'm not the only one, right? No, this is the Achilles heel of this industry, which has serious consequences. So now one in five users, and these are the same people who are very positive, call reliability a problem. By the way, Jim, that's more than one of the six before. And
consider the hundreds of billions of dollars invested in this area, so the growing concern about reliability is truly alarming. Okay, and the industry should be very worried about this, in short. They really should worry about this together. Now, when we see someone using it just traditionally, they add "SH here, SH there." I think people have had enough of it. Your data confirms that I'm not alone, right? No, this does not affect the so-called application layer. So, does this change your banking experience?
Does this change your experience of going to a restaurant? No. Almost nine times out of 10 people simply ignore it when we ask, and when they do mention it, as you can see, it's more often called a negative factor than a positive one. And that level of applications is huge because it means that the total market size, until they figure this out, will be here, not here. But can I ask you a question? I think people don't want to become like that. I want to be more productive. But a small business owner needs to use AI and believes that AI can be useful for his customers. Oh, that's just wonderful. In fact, almost all small businesses will use it more often. What it is not yet is a comprehensive solution that can simply be
released into the public domain. We don't want them. Essentially, we want it to be a person, right? Well, it turns out, this is a diagram of how people feel about AI-powered car service. And you see that they are much more likely to perceive this, at least with the current capabilities of the models, as something negative rather than positive. And here's why. AI doesn't understand nuances well. He doesn't handle changes in orders well. So it's great in the lab, but when you take it out into the real world, there's still a lot of work to do. And so I think the takeaway, which is pretty important, is that it's not going to change the. It will not change consulting. He's not going to.
We have habits, right, Rob? We have habits. This is true. OK. Now let's look at some things that really, really bother me. I believe the AI industry has lost control of the narrative in this country. I've written about this several times this week. These are bad numbers. Yes, these are really bad numbers. So, to give you a little bit of a Wait a minute. Less than one. Less than one? This is the only one. Where is the nuclear waste? Are they higher than this figure? Well, we don't track nuclear waste. But if they had been tracking, there might have been a draw But that's enough for you. This is terrible.
These are terrible numbers, and they are falling rapidly. As you said, they lost the narrative around brand values, trust, social standing, and sustainability. And that will be a big obstacle to their ability to truly have maximum impact. This looks like a midterm election, right now. Yes. Now let me ask, has anyone jumped out ahead and has a higher ranking than some of the other hyperscalers? Yes, and this happened very recently. So, Meta, whose artificial intelligence for a long time according to our data was not very effective, thanks to Dina Powell McCormick and others was able to demonstrate its impact on society and its achievements in the
field of sustainable development, and now their indicators are 30% higher than others. This proves that changing the narrative is possible, but it needs to be talked about in human language. How does this affect the average person, what are the consequences, etc., rather than operating in, you know, theoretical terms. Well, I have to say, after listening to this segment, if I was in this industry and I was just listening to you, first of all, I would call you up and say I need your help, and second of all, I would say, you know what? Let's become better. Let's listen to Dina Powell McCormick, who's coming to our show. She has a code of conduct that she wants everyone to adopt. What's so complicated about this? These companies make
billions of dollars. They should listen to you. This could be a huge step for the industry. We see that there are leaders who start with the product and move on. You should start with the outcome for the client and work backwards And they will be the winners. OK. Well, I want to thank Rob Pace, founder and He is here again. Thanks everyone, as always, Bob. Thank you. Next: You have questions, Cramer has answers. Get ready for a quick blitz round. Further. round thanks to the blitz" question team: the star sector Bob and Susan, and the eternal " call hunters", my staff, who are happy to turn on this sound. And then the blitz round ends. Are you ready, Ski Daddy?
So, blitz round, we go to Dave from Illinois. Dave! Greetings, Dr. Kramer Jim, this $100 billion company provides infrastructure solutions for energy generation. Six months ago you said this stock was worth having. Quanta Services fell 15% from its 52- week high. Is it worth buying PWR? I still think it's worth it, Dave. I think there is still Because of the elections, it seems like things are not going well.
I think when this is over you will see more construction. I like PWR. Moving on to Mike from Wyckoff, New Jersey. Mike. Hello, Jim. This is my first time calling from your home state of New Jersey. Perfectly. What is happening? I'm calling about shares in a company founded by NASA scientists. They use low-orbit satellites to map the entire Earth in real time. They have a billion-dollar order book, no profit, but no real competitors either. They were postponing problems for the next volunteer. Alphabet has over 10% of its shares outstanding and a value of approximately $600 million. My stock is Planet Labs.
Oh, it's Will Marshall. I like Will. I met him through Mark Penn. Listen, I think this is a company that can triple in size. Stocks soared, then, as expected, a " bubble" formed, and then they fell back. Today was a good day. I think you should buy them. I think the fall is over. Wow, I'm just being straightforward. Sorry, Will. Your stock has started to fall, but I have nothing to do with it Let's move on to Ned in Ohio. Ned.
Hello, Professor Kramer. Nice to talk to you again, sir. How are you? I'm fine. Thank you for asking. How are you? I am very well, sir. I wanted to ask you about a friend. My operator just sneezed. Be healthy. Continue. I.my mother always said, "Be healthy." It's just an old habit. Continue. Sorry. I.go on. I got distracted. It's okay. No. OK. Well, I.thank you for that. I wanted to ask you about the utility today, and I was reading your book, which I found very instructive. You talked a little bit about investing in utilities, and today I wanted to ask you about a company that is one
of the largest energy holding companies in the country. It has been paying good dividends for years. It currently pays about 3.8%. Its share price has What is your opinion on Duke Energy? I think it's already at the level where it can be bought. I would like to get a 4% yield, it's a little lower now, because I think the best paper right now is the five-year Treasury bond, which yields 5 %. This will pose serious competition for Duke, which is why their stock price is falling. And now we will not communicate with anyone, because, ladies and gentlemen, this is the end of the "blitz round."
Next: Is there hope for a Nike revival? Cramer will conduct his own review of the company. Further. Sometimes in this business, you just want to root for a good person. I'm rooting for Elliott Hill, the president and CEO of Nike. Elliott started as an intern and rose to the position of President of Consumer and Market Affairs-an incredibly important position. He retired in 2020 after 32 years of service, but was reinstated as CEO about two years ago after his predecessor performed horribly. Nike's latest report was disappointing, and more importantly, the company gave you this signal. They have an analyst meeting in November that I thought could be a positive reset, but the problems now seem so deep and numerous that it's hard to
believe anything could reverse the stock's terrible trajectory in such a short time. Gill behaves quite decently, right from the start of the conference call. We know that Nike has three serious problems. The first is Greater China, where income fell by a staggering 26%. The second is sportswear, where revenue fell to the low double digits. And the third is the Jordan brand, which seems to be in trouble now. Here's how Gill explained it during the call. Quote: " Simply put, we oversaturated the market with our iconic retro models by demanding too much from them." End of quote. I hope the world hasn't gotten tired of Jordan and forgotten who he is. These seem like insoluble problems. And for Elliot's sake, I hope that's not the case. But in reality, it seems that
only the third of them is Elliot's mistake. And it's hard to blame him for relying too heavily on Nike's most famous franchise during tough times. I know it's easy to criticize Elliot today. I heard this all day as stocks fell to a 13- year low. But he didn't fall from the sky, he knows his stuff. He was an incredibly successful executive at Nike before he left in 2020, which, however, leads me to another, more difficult conclusion. I think Nike has changed, and changed for the worse in the four years of Gill's absence. Previous management shifted to a technology-based model moving away from Nike's previous sports-based model. The company was turning inside out to work directly with
the consumer, even though shoes are something people prefer to buy in stores. For example, like Foot Locker, which is now part of Dick's Sporting Goods. Previous management pushed away such chains, giving other brands like New Balance, On, Hoka, and Adidas a chance to catch up with the leader. This is not Elliott's fault at all, and he is trying to make things right. But you can't just flip a switch if your predecessor destroyed a trusted relationship. It's a disaster in China too. But is it really Hill's fault? Of course not. China once favored Nike. Now they seem to be supporting their own domestic companies. The era of Nike's special status in China seems to be over. This
applies not only to them. Most American brands are failing there. Sportswear. If you ask me what the most challenging category in the world is right now, I would say sportswear. Do you think Nike's situation is any different from Lululemon, another stock that has collapsed? Hill said there was a lack of energy" in the lifestyle segment. I will say that this is a no-growth zone where great companies are desperately fighting each other. Not for dollars, but for pennies. If not for the total damages. Excessive competition, too many new players. So, of course, even as Elliott makes strides in many areas, from women's basketball to running and world soccer, they can barely make up for the declines in these key categories. And Elliott didn't try to
hide it. This is to his advantage. The company's situation became so difficult that Dave Denton, the new CFO, was forced to defend the dividend, trying to rule out any possibility of its reduction or cancellation. Unfortunately, I will say that if this issue has arisen, it will not go away until you start Now you know all the reasons why I don't want to buy these stocks. I've been there, done that, and lost a lot of money for a charity. But when I bought them, I didn't know how deep Nike's problems were. Sometimes I wonder if Elliott himself knew about this. He holds his own on investor calls. I don't know how he manages to do this, especially after he lists a number of mistakes and miscalculations, most of which, again,
were laid by the previous leadership. That being said, he came from the world of sports, where a good coach doesn't have decades or even years to change a team's fortunes. He knows it. I'm just reminding people that Elliott Hill was dealt very tough cards, perhaps too tough to bring Nike back to its former glory. In a world that has changed radically since he last worked in Beaverton. He will keep trying, but the fight will be tough, and he remains in the role of the obvious underdog. I wish I could say this all the time, but the markets don't wait. I promise I'll find it especially for you here at Mad Money. I'm Jim Kramer. See you on
Monday. All opinions expressed by Jim Cramer in this podcast are solely those of Cramer and do not reflect the position of CNBC, its parent company or affiliates, and may have been previously published by Cramer on television, radio, online or other media. You should not consider any of Cramer's opinions as a call for specific investments or adherence to a particular strategy, but only as an expression of his personal opinion. Cramer's opinions are based on information he believes to be reliable, but neither CNBC nor its affiliates or subsidiaries guarantee its accuracy, and it should not be relied upon as such. To view Mad Money's full disclaimer, visit cnbc.com/madmoneydisclaimer.
