Tom Kramer. Welcome to Mab Money. Welcome to Kramerica. Other people want to make friends. I just want to make you money. My job is not just to entertain, but to educate and teach you. So call me at 1-800-743-CBC. You can tweet me at Jim Kramer. 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 Avergners masked some of the pain with the Dow gaining 260 points. SP 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.
Transports, 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. By miracle.
We have companies that were supposed to have their earnings hurt by the GLP dash ones, companies like Campbell's or Pepsi or Smucker, or even Kraft Heinz and could benefit from AI. Their stocks are going much higher as if the GLP somehow stopped working and we all got hungry for junk food.
But then we have the chief maker of the GOP-1s, Eli Lillard, 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. Louis got a joint venture with NVIDIA where they're going to treat hard to treat going after hard to treat diseases. Hey, com come on, with that kind of firepower, they'll develop a new line of forever people.
Lily's gain is also arch rival Novo Nordis pain. It's not enough that President Trump wants to annex Greenland. Even Lily's constantly taking share from Danish Novo Nordis pain. 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.
But he'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 overtone. The banks are crushing.
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 Thompson Reuters, which has a similar product, but apparently not as good and much more expensive.
The revolutionary anthropol 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 Gardner, 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 SP five hundred, which is how you evaluate these.
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 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 twenty-thirty science projects. Flying cars? Hey Boeing's got a flying car if you want it.
Just go on Boeing, will ya? Have they anything to do with batteries? No, don't thank 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 Tempen village, Gemini it, of nuclear shells that won't be ready until 2032 with the earliest, probably later than that. You want to wait in Okl? Be my guess. I'd rather wait in Oreo, which is of course made by Mondelez. And they had a not so hot quarter. Oreos are safer.
Can we spare I uh Iran, 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. Well how about all those crypto derivatives that people fall over, the immersive bitcoins, the strategies Uh aka Micro Strategies there, poor 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 supposed they were so envious of, they are about to have a hard time. For the first time in thirty 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 one hundred seventy five to one hundred eighty five billion on capital goods. Well she was only looking for one hundred billion.
That's a big chunk of money. By the way, a lot of that could be headed to Google Favorite Broadcom. Uh but it's a four trillion dollar company. I'm not sweating the program. Gemini's winning the AI race, at least on the consumer side. So I think it's worth every penny to spend. Remember uh Google spent to defeat Bing and all other comers. I think it's doing it again. It works.
Oh, and how about buying the hottest of the hot? If you bought Sandisk or Seagate or Western Digital or 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 this one.
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 X's of their brethren. When they're done cooling off, the these are gonna come back. However Their future rallies will be driven by higher earnings, not higher price earnings multiples or higher price 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 gonna go away. The phantasmagorical electric Kool-Aid Acid Tars, 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 code name for getting the bejesus kicked out of you. and you stay undiversified, then you're gonna get smashed by a Bitcoin durator of one that guarantees you the full faith and credit of an analyst or a hedge fund who
a manager who spouts their virtue in 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.
I'm looking at a three hundred dollar stock that's now fifty five dollars. I've been buying on the way down and crying. Since November it's moving sideways. I wanna know do I put the moron position on or has my circle flatlined? Um circle internet. Yeah. Um no I I don't really want to own that. But look maybe it bounces and then you can say goodbye, but that one that one flew way too close to the sun. Uh you don't want to be the first man on the sun. I know what that's like.
Stay diverse five while this rotation plays out. When they're not going to be able to do that. buy the dip in the shares of Novo Nordisk. I'm sitting down with the company's top ref, see we're one of the leaders in the That's one space. Banco Santander has been on fire over the past couple of years, and I'm learning more about the company's monster move higher with the CEO. And a beat and raised quarter wasn't enough to send shares.
But is now the time for investors to take a closer look at a video game developer? I'm sitting down with the company's top brass to find out. With Kramer. Question? Tweet Kramer. Send Jim an email to MadMoney at CNBC. Um or Call at 1-800-743-760. What went wrong at Novo Nordis? Yesterday the Danish drug baker behind Ozempik reported and the stock plunged nearly 15%. We're sinking another 6% today. While the quarter was fine, the guidance, let's just say it was brutal.
They're talking about a 5% to 13% sales hit this year. Thanks to pricing pressures amid fierce competition for the GLP dash one business. It seems Eli Lily's eating their lunch. Even if it is a lunch that has no taste, the inevitable result of all GLPs. So how bad is it exactly? Earlier today we sat down with Mike Deustar. He's the president and CEO of Novo Nours. You gotta look at this. Mike, welcome back to Mad Money.
Thank you very much for having me, Jim. Okay, so I have to admit, uh, I was surprised uh and what you're forecasting. And the reason I say that is because you have a very competitive set of of uh medicines versus Eli Lilly. You are obviously first Uh geeze first mover in the pill which is gonna 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 is has had a phenomenal uptake, Jim. It has been probably one of the best if not the best to pharma launches, albeit on a short period of one month. We have now On a weekly basis, fifty thousand prescriptions coming in, and that actually translates to a hundred and seventy thousand Americans are on the pill.
In four weeks time. So so this is better. And just to put it in perspective, Jim, this is two times better than when our competitors launched Zebbound or 15 times better than when we had our Vigovi injectable. So that is good. But of course. The pill is a new business. What has happened is on our existing business on semaglotide injectable or Zempig and Vigovi, 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, you know, this year and of course much more into the following year.
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 Hapsc competitively you're losing some edge because they have taken share. Uh 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. dri 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, uh Jim, last time we spoke about
We did touch upon the fact that the world right now believes trosepatite, Lily's product, is the more efficacious drug out there at twenty-twenty-one percent weight loss and semaglutide is at fifteen. So The preference share, there is no secret, is on Lily's side. But I also mentioned to you that we have a plan for that.
Medicine is those differently and the higher the dose the higher the efficacious part you know 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 semaglotite at seven point two milligram. That shows actually weight loss efficacy on par with tricepatide. So my job, of course, is now to bring that product into the market, the Vigovi 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, cymaglotide 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 medic 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 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
a goodly time between when you uh take the pill and when you can eat for breakfast your pill. Uh 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 t hundred percent understand that our competition has to find their niche and their, you know, 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. that will take basically the higher effect 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 NGI.
I w 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 gonna 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 Nordest is a good company. My my job my job um um is to really make sure I steer Novo Nordest. 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 two 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 GLP1 was sold not long ago, two 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 and just to complete the thought. Uh 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 Lily 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 gotta buy Novo Nordisk.
We have we have been saying that we are ready with the appeal. From day one, we feel very confident from a supply point of view, which is unfortunately the issue we ra 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 Liddy. 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 snack. And that's why it's able to give the same efficacy as its injectable sister Vigovi 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 Tuestar. He's the president CEO of Novo Nordis. Thank you, Mike, for coming on the show. Thanks very much, Jim Poi Hyber. Coming up after a strong earnings report.
And air is continuing its surge. Now Kramer speaking with the CEO about the Spanish bank's growing plans for its U.S. football. This morning we got excellent four-year results from Banco Santander. The Spanish banking powerhouse with a stock that's charged 142% over the past 12 months, a bank. We also learned that they're by 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% return on tangible equity by 2028. Wow. But don't take it from me. Earlier today we got a chance to speak with Anna Boutine. She's the executive chair of Bango Santander. Take a look. Mr. Team, welcome back to Mad Money.
Hi Jim, how are you? Well I 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 at three and four when uh 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 in every country that you're in.
Absolutely. Um 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 a strategy that I think is a little holistic. A lot of people in America, the b big banks, they just want rich people. They do. That's how they they claim that's 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 um 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 twenty twenty five, Jim, we grew eight million customers and we're now at one hundred and eighty million customers. We grew revenues, we had lower costs and we delivered seventeen percent earnings per share in twenty five. And we grew capital to thirteen and a half. So a very successful year. And yes, we care about growing customers and we believe having a, you know, large number of customers is what ultimately
reflect on a on a good business. That's why, you know, we grow because our customers come and join us. Uh one of the things that'll make you grow rather a little more quickly is this acquisition of Webster in a very wealthy area. uh of well th the customers are 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 uh 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 a fundamental criteria for us. Second, they have a very uh complementary business to us where 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 eight percent market share. But very importantly, combined we'll get to eighteen percent eighteen percent return on tangible equity by twenty eight. That will make us one of the most profitable banks in the United States. So tell me uh Uh there's something else that you're doing that I think is very exciting. I'm not sure it's gonna extend to Webster but
When you speak to young people, they're very much drawn by the fact that you can get four point two percent. Now you uh you introduced that program on our show. It is uh the from what I can tell the highest rate that you can get. Uh 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 uh part of the bank. That's that's Open Bank, it's a national digital bank that will continue, that's uh autofinance 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 so you 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 the national rate. Now I wanna talk about auto.
Uh some of my friends who are in that business are starting to worry about subprime, uh starting to worry about uh the consumer being stretched. Are you doing okay when it comes to uh s keeping originations high and not having credit woes? So we see the US consumer very resilient, yes, uh you know
things have gotten a bit more difficult at the at the lower end, but still we're getting very high recoveries. So people might take a bit longer but they end up, you know, paying and and and being whole. So I would say the US consumer is overall still doing fine. All right. Now you like to shuffle your portfolio. At least on the other side. Okay. Yeah. On the o on the auto side. Right. On the that's what I care about. Now you uh you do uh shuffle things. Uh Poland was
a country country that's good, but you kinda double down on the UK and you remove yourself from southern Poland. How do you decide where you wanna make your big bets? So, you know, twenty five was a very uh very good year for Santander. We met all our targets, we took our ROT at the group level to over sixteen percent.
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 two point two times book value. We have reinvested that in the UK with TSP. where shareholders are getting, you know, twenty percent return on invested capital and in the US.
with Webster where we have also a fifteen percent return on invested capital. But very importantly, the US has very strong network effects with Latin America. You know Jim very well that we're in Mexico, we're in Brazil. And there is 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 a hundred and eighty million customers and you're in so many different countries? What is the what is your when people go to Davos say, well they kind of have a view and 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?
The Santander world, which is Europe and the Americas, overall looks better in twenty six than it did in twenty five. I 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 US 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. Uh 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, th I wanna leave it on that because I think it's a terrific note to do so. That's Ana Bouteen, she's the Bancos Handera executive chair and what a stock, much better than any of the performers of any Coming up are investors underrating. Active, Kramer's connecting with the company. To find out if the stock is about to level
Alright, 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 full-year forecast terrific. And they got Grand Theft Auto ships coming out in November. But the stock still lost more than five percent today, and that's some type of 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 claw house. 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 it with Strauss Zelda. He's the chairman and CEO of Take Two Interactions, by the way, who has never led us astray. That is very difficult in a 21-year existence.
Mr. Zodek, welcome back to Bait Button. Great to be here, Jim. Okay, so Strauss, uh first, I want to just tackle something hit-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. But how much money would I make? Look, there are examples of independent developers doing really well. And um 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 twenty video game companies that are left, th the You're the only independent la-
Where the well assuming the EA deal closes will be the largest public uh name, pure play. 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.
And the marketing dollars that we can put behind a product and the risk that we can take. Okay. I just wanted 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 but you can't c confuse tools with entertainment properties. They're different things.
Now I know that uh you know who explained that to me first time? Jensen Wong when he talked about ray tracing. I said, Who's using it? He said, Well the only people who really know how to use it take two. And because he's a gamer and he knows. You're asking about it very early on. Yes. Now he's a gamer. Now I do want to talk about things that do matter. Okay. For instance, before we get to G C A launch, uh mobile strength.
Really incredible. Yeah, we're up nineteen percent year over year, and it's really across the board. It's our legacy games. Uh like Tombblast up forty-three percent year over year. Empires and Puzzles eleven percent, Words with Friends six percent, and then new hits. Match Factory and Color Block Jam and 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 a creative transaction for us. But 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 two K uh do they?
If you keep doing great stuff. The work has to get better and better. Visual Concepts, which is the label that makes MBA two K inside the two K label. just sets the bar higher and higher every year. And we're up thirty percent year over year. We've sold in eight million units and it is of course
the biggest selling sports game in North America. Now before we get to to GTA, tell us what else is uh has uh part of the library that you actually you know have kind of paid for that is still s making you a lot of money.
Well our our catalog alone generates I don't know thirty five percent of our net bookings year in year out. That's the gift that keeps on giving. Right. But the titles at two K include Borderlands, Borderlands Four just came out, Civilization Seven came out, the Bioshock franchise. and many others in addition to WWE 2K, the PGA Tour title, and of course uh NBA 2K. I I mentioned some of our mobile hits, uh and there are many more to come. We also have top 11, a lot of other great titles. And
Even at uh the Rockstar labels not just about GTA. Red Dead continues to be a Red Dead. 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's let's talk about the greatest entertainment vehicle of all time.
Definitely. I think that's true, yes. Right? There's nothing that comes near it. When the I got the uh 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 perfect. November nineteenth. Now how do you know? How do you know it's gonna be ready then?
Well because we actually obviously track the progress daily of everything that we do. And we also announce that we have marketing beats coming the summer and 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 word of mouth products in history?
We do. I I think there 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 it's bigger than ever before. But in our business you do have to tell people what's coming and Uh our consumers want to know that this is going to be great and they want to see what the visuals look like. Um it is a challenge because we want the product to be uh authentically um
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 uh hamburgers. We're selling this unique art form. Now one last question and it's right along those lines. Uh 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 six on the 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. Uh but no the the the technology is in market, right? 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 gonna be upgrade cycle that's much better than, say, the co pilot upgrade cycle.
There's a lot of energy around this property. Well I gotta tell you it's great to have you back, Strauss. You just you you you just have built an amazing company. I know you'll credit many people. Talent in the business, the best executive talent in the business. Okay, that's Strauss Selnik. He's the chairman CEO of Take to Interactive. And yes, I do think that's a good thing. Getting a chance to buy it. Coming up. Takes your calls. The sky's the limit. Lightning round, next.
It is time to talk about Raph on course names talk sound about the vice also just you know soccer my step first play where you plan it sound. And then the lightning round is over. Are you ready, Ski Dad? Come on, light round, Chris, what's up? We're starting with Michael in watching it, Michael. Michael! Hey it's Kramer, what do you got my friend? Yeah it's Kramer, what's happening?
GM, 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 cost I own lots of Nico Eagle, the premier firm, and I'm now looking at Newmont, which last year. than that and I think you'll be fine. I need to go to Peter New York, Peter.
Booya, Jim. Booyah. How are you? I'm not the 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 six over six dollars today. Their annual revenue is about six hundred Yeah. Net loss of about nine million. Is the current price a discount on its rare disease? No, no, just stay away from that. I mean honestly that
It has 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 and Bootyod, Jim from Anchorage, Alaska, my friend, you need to get up here and do some fishing. I completely agree with that. I did a I did combat fishing up there once. It was fantastic. It was very, very relaxing. Oh yeah. No, get off some combat. Hey, making this really quick.
Um, so I've got a position and I'm looking to increase. Just wanna know your opinion on uh continue to hold or buy NXT, next power, formerly next tracker. All right, that's Sug Dan Sugar Dan Sugar. We actually Owing it for the trust. We sold it too 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.
I would value your opinions on Sky West Incorporated. I by United and I by FedEx, and you get them both, okay? Let's go to Kevin. Oh, I'm not done. I am so not done. I am so fired. Let's stop that right now. Let's go to Kevin of Massachusetts. Hey Jim, booya. I really enjoy the show. One I wanna know your take on synchrony financial picker S Y A. I don't want to own Synchrony, I want to own Capital One, C O F the Travel Trust. Uh it's pulled back nicely from two fifty nine to two. Twenty five.
Now we're gonna go to Kenny in New York. Kenny! Hey, Mr. Kramer. Thank you so much for taking my question. You better. So all right, so I purchased EOS. energy enterprises last year and was happy with it until now. What going on with that stuff. 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, Addison was born. It just happens to be a great coincidence.
And that Legend Jumpers' conclusion of the Lightning Round. The Lightning Round is sponsored. Coming up for years, companies Could their era be coming to win? Kramer's revealing why he thinks. Time to pull the 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 great.
You could go into equities, trading, security sales, fixed income, the bond market communities, MA, 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 thirty years ago the big money move gravitated to private equity.
At KKR, Blackstone, Carlisle, 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 four. 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 for them.
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, uh 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.
Uh 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 bananas do come to an end, and the enterprise software bananas seems to have run in 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 should have realized that someone was getting displaced the first time Nvidious 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 alpha called Anthropic released a number of new AI tools to help professionals in various industries. They are going to save businesses forge 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 swell fair stocks are coming back to Earth. When you look at the iShare's 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 born.
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. They 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 markets so I promise I'll find it just for you. I hear my money. I'm Chuck Kramer.
All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNPC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another media.
You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable. But neither CNBC nor its affiliates andor 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 madmoney disclaimer.