Mad Money w/ Jim Cramer 3/2/26

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Hey, I'm Kramer. Welcome to Mab Money. Welcome to Kramerica. I'll be with my friends. I'm just trying to make a little bit of money here. My job is not just to entertain, but to explain how days like today can happen. So call me at 1-800-743-CBC or tweet me at Jim Crane. Maybe the war with Iran doesn't matter to the market as long as there's no real impact on our pocketbooks.

Maybe the Middle East just isn't as important as it used to be economically speaking, now that we're a net exporter of fossil fuels. Or maybe stocks did fine today because there's optimism for a quick definitive win and we can go back to normal investing. You know what, I think it's a bit of all three, which is how we got a much better day than anyone could have expected, with the Dow dipping 73 points, SB inching up 0.404%, but the Nasdaq ending up 0.36%.

Let's consider the setup. Last night the SB Futures opened week, trading down a little more than one percent. It looked like Setting up for, I don't know, a not great day. Instantly we read though that the front right side of the New York Times, the Dow Joe's industrial average was looking down 500. All right, that always sounds frightening, doesn't it?

But let's face it, down 500 at down 4900 is very different from down 500 at down 49,000 where we are right now. It was a minor decline, all things considered. Still as the night wore on. The SP futures kept sinking to the point where they were down two percent at 330M, which seems like the beginning of a truly nasty decline, doesn't it? Sell, sell, sell!

But by 6 a.m., they were only down 1%, back to where they were at 6 p.m. And when the market opened, we held right at that point. You know, we never breached it. The market simply didn't mind, and buyers were impoldened to do some buying because we didn't go lower than the opening price. Sellers then pulled their offers. Next thing you know, we rebounded substantially for those lows, but the NASDAQ really shining and the NASDAQ been a big problem in the month of February.

It's really worth asking why this happened, especially because many people were bracing themselves for the first really awful day of 2026. First again. While we have a great rearview mirror of the oil market of the past, the Middle East simply doesn't matter to the markets as much as it used to.

Back in the day we didn't produce enough oil, so we had to worry about being cut off by the key producers in the region. If Iran had blocked the Strait of Remote twenty or thirty years ago, it would have been a huge deal for us. Perhaps an instant prelude to a recession. Now that we produce so much oil domestically that there's really nothing they can do to cut us off, it's all change. That's huge, and I think not well understood.

When West Texas crude opened up nearly eight dollars this morning, the price couldn't hold. Same with the gigantic gap ups in Exxon and Chevron and the others. Without a panic. Those prices were doomed to pull back, taking the stocks with them, and that's exactly what happened. This is not the 80s or 70s where we had to be careful careful about being hot of these hostile regimes in the Middle East. It's 2026.

These days we can bomb Iran, take out their leadership, and Wall Street doesn't care. At least so far. On top of that, we know that when Cutter, an American ally that produces twenty percent of the world's liquefied natural gas, went offline after drones struck the facilities, prices around the world spiked double digits.

But in our country, natural gas kind of traded unchanged. Why? Again, because we have more net gas than we know what to do with. We're not importing liquefied natural gas from cutter. We're exporting with them to exit we're competing. Everywhere around the globe with them. And I think we have a lower cost per

Of course high globe energy prices will ultimately impact us too. The world price matters. Interest rates also moved up dramatically, something that suggests oil could stay high. Gasoline's going up.

But there's a palpable sense of relief that the war seems to be going well. When you wipe out the Supreme Leader and many of his lieutenants, it's hard to believe that the war will last all that long. Although maybe we've been too effective because who are we even supposed to negotiate with at this point

So far we're not doing a ground invasion. Almost seems like we were trying to remove the leadership and dismantle as much of Iran's military infrastructure as possible without putting too many of our troops at risk. As long as there's no repeat of Iraq or Afghanistan, most Americans don't believe that a short term war less than five weeks can truly impact us. Bond prices have been going higher and rates going lower in anticipation of a war.

So maybe all that happened was a natural reversal today when we realized that Iranian defenses are almost non existent. That's right. Interest rates went up today. All we did was reverse the flight to quality though that we saw last week. So rates going back higher really didn't They didn't send us off the bullish track.

Oh, and you you didn't hear it much on the news, but let's face this, some Americans who own stock or could own stock believe that we are getting our way with the world, that we are ascendant because of this president. I know some of you may think this is crazy, but others see the United States projecting power as bullish in and of itself. If we get a quick win, that may be a good reason for many people to think I gotta buy a piece of America.

Now does it make sense all this? To me, this moment feels a bit like the first Gulf War. I know you gotta really go back in time, but there was a lot of negativity in the lead up. But once the United States got involved, we saw that much of the vaunted Iraqi Republican Guard was a paper tiger. So the price of oil collapsed instantly and the stock market roared. Bye, bye, bye!

Now it's true that we didn't have a wave of negativity going to the conflict with Iran, but oil had been creeping up last week in Fuhrer Warum when the leadership of Iran got taken out. It did feel like a replay of 1991 with the Gulf in Iraq. Maybe much better because far fewer service people are in harm's way.

If you were to ask me if the market was too bullish today, I'd say it certainly feels like we've forgotten a lot of the problems that dogged us last week, but the problems are still there. We didn't seem to care at all about the pay in the software group, even as last week we thought these stocks were finished, brought down by AI platforms that can write cheaper code uh than than humans and they do it in abundance.

We didn't seem to worry about the big declines in the private equity firms like KKR, Blackstone, and Apollo Wall, which stocks went higher. We worried about Freddie, we uh Freddie about Blue Al, a private credit firm that last week looked to be the epicenter of a mini meltdown. The stock actually rallied 13 cents. Hey, at least it didn't go down.

The problems of private equity spread to the big banks last Friday, but but both were much timer tame today. Oh, and the supposedly disappointing tech companies from last week, led by NVIDIA? We saw press reports this week in that Nvidia's about to announce a new chip that can compete with pesky offerings from competitors. Several companies, including longstanding NVIDIA customers, have been bragging about how they make a particular kind of AI semiconductor. One's it for inference.

And uh NVIDIA, well it looks like they may have something against that that could be better and that's why it stock rallied nearly three percent. When the stock of the largest company on Earth goes higher, it changes the coloration of the entire market. Yes, it's that important to the averages and to the psyche of the average investor.

Still we're in a fluid situation. Could we wake up tomorrow with the futures down 2% because something happened in the Strait of Remo's that actually produces higher oil prices even if they are short term? Maybe you learn something that makes us think that the fight will drag on longer than we think. Right now at least, that maybe we have to be more deeply involved.

These could change the market's mood. But the bottom line, right now, what matters is that our country's own resources are much more bountiful than they used to be any time in the last 50 years or longer. So even when the Middle East is a big political story, it's not necessarily a big economic story.

Take away the importance of oil and the politics of Iran just don't seem to matter much to the average investor. They were thankful, though, for the decline to get in at much better prices. Let's go to Dustin in Colorado, please. Dustin.

Oh yeah, Jimbo, how you doing today, sir? I am doing well, Dustin. How about you? I'm doing fantastic. It's great to talk to you again. I'm just coming off an amazing vacation and the entire time I've gone throughout this vacation I've been looking for these all over the country.

It's my new obsession and uh I wanna ask you about this. I know your favorite drink is the Annihilator, but I'm obsessed with the sugar free option they have on the caramelizer. That stock's going up twenty nine percent year over year. What are your thoughts on Dutch Bros right now? All right, now this is really important. Rushbros has taken a hit.

But I saw no substantive reason for the hit. None whatsoever. And I think Christine Baron is doing a fantastic job, and the stock is ultimately a buy-bye-bye. Let's go to Jim in North Carolina. Jim. All right, Jim. I'm hoping to get your thoughts on the prospects for Netflix now that they've withdrawn their bid for Warner Brothers. Okay, I think it's very simple. Netflix stock was not up to enough It was it it was it's moved ten.

But you know what? This stock was up dramatically higher before that bid and when they walked away I thought it was a terrific thing for their balance sheet. I'm glad they didn't pay up and I would be a buyer of Netflix right here. Shelley and West Virginia Shelley. Hey Jim, we love you here in West Virginia. Oh thank you, Shelley. Thank you very much. I have I have two questions for you. Okay first, what are your thoughts concerning Microsoft's CapEx spending on AI infrastructure?

And my second quick question is, is Microsoft a hole right now? Because it doesn't seem to be very worried. I'm very worried about Microsoft Shelley, very worried. My trust owns it. Uh I gave a big talk on Friday. I really wish we would join the club and listen to it, where I explain why I am very concerned about owning Microsoft. I should sell some, if not all. Huge change for me. And I want you to hear the reasoning from the call. truncated version right here.

Right, these days the Middle East is a big political story. It's not necessarily a big economic story. Point the importance of oil. Politics of Iran just don't matter very much to the average investor. Well obviously came in and bought the opening. On Man Money tonight, with energy related stocks front and center today, I'm sitting down with diesel and natural gas engine manufacturer Cummins to get a read on what they're seeing in the space.

Then February was a tough month for stocks, so what's on the horizon in March? I'm conducting review of the With a clear head and research portfolio. And in times of global uncertainty, investors turn to gold and Bitcoin. What's in the cards for the latter? We don't talk about it enough. I'm taking a closer look at the cryptocurrency that so many of you care about more than anything else. With crank. Question? Tweet Kramer. Send Jim an email. Or give up. Call at 1-800-743-CNBC. Dot CNBC

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Trail Blazing 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 thing. hosts CNBC Changemakers and PowerPlayers. every Tuesday wherever you get your podcasts.

What do we do with the stock of Cummins, the maker of truck engines and power generators? With this, it's up 47% in the past six months, nearly 14% year to date. Right now the story here is the power systems and distribution business because Cummins is seeing incredible demand for diesel backup generators from all these new data centers.

Stocks spent the past month trading sideways and drifting lower, but could it be ready for another leg up? And isn't there much more to this than the rest of the story, so to speak? Let's take a close look with Jennifer Rumsey. She's the chair and CEO of Commons to find out.

Thanks Jim. Great to be with you today. Thank you. Now Jeffrey before we get To the data center, I think it's very important to point out that you are the premier truck engine company, I think, in the world, and that is the most important business and you are predicting good things for the second half of the year.

Yeah, absolutely, Jim. You know, our uh over a hundred year history got its start back in providing diesel engines for trucks. That continues to be an important part of our business and we're anticipating that part of our business here in the US to be Flat to up ten percent, so feeling cautiously optimistic about what's gonna hap with happen with trucks this year. And can you tell me what do you think is it?

Legislation? Is it just something you see from some of the transport companies you deal with that makes you optimistic when others that I find tend to think, oh, I don't know about this year. Yeah, well you know with the truck market is a cyclical market. We're coming off of a couple of years of being in the down part of that cycle. Last year we saw an even deeper drop and that was really uh amplified I'd say by uncertainty around regulation as well as tariff policy.

As we're starting to get some more stability there and some signs of uh improved uh market conditions for those customers. We're optimistic and hopeful that in the second half of this year we're going to see an increase in uh build rates and and demand in that part of our market. Now I like many people are I don't want to say I'm addicted to the data centers, but I have to spend a lot of time thinking about them.

And the data center revenue, first of all, I don't think people understand the full scope of what you have. So why don't you tell our viewers what the what the real strengths are that you have, particularly versus say some of the others who are doing yours like Caterpillar and Genrax trying to get in there. What's the secret source for confidence? Yeah, so if you look at Cummins we've actually been providing power backup power.

for mission critical applications for almost forty years. So really our sweet spot and the the the place that we're benefiting in data centers today is backup power. We r we provide not only the Gen Set but we also design and man manufacture key components like the engine, the after treatment, the alternator.

the radiator and we have a service channel. So we can provide the right product for our customers for backup power as well as service and support globally wherever they are in the world. Um and that's really provided tremendous growth for us as you see increased demand. uh from data center customers on the back of growing need for uh cloud computing and AI.

Well, I don't want to get ahead of myself because y some could argue that it's really only about ten percent of your business, but the growth of is so extraordinary that if you take the vector, it's entirely possible that this time next year We should be spending even more time about the data center. Do you think it can continue like that? Yeah, I mean you're right, Jim. We've seen uh tremendous growth there. And while last year that part of our business was just over ten percent of Cummins.

global revenue of about thirty four billion dollars. We saw an increase from twenty four to twenty five of thirty five percent. Uh we're forecasting that part of our market to be up. another ten to twenty percent. That's for power generation and a lot of that is is the data center part of our power generation business. So up again this year, we are capacity constrained. We're taking orders out into twenty twenty eight. Uh and continuing to look at how do we optimise Cummins

Position in that part of our market and really take advantage of what I think will continue to be a growth trend. Well I know that when I was reading uh uh Mr. Wiltrout, Vice President of Corporate Strategy, in a conference that he that he presented on February eighteenth, he talked about the idea that you're not really sure yet um whether you should be building out whether whether you should expand. I mean who knows what is gonna happen.

What do you think is gonna uh uh what where are you leaning toward or do we have to wait for the May investing cost? Yeah, well we are always focused on disciplined, profitable growth for the company. So we evaluate our strategy, we look at the opportunities, the products that we have, the capacity that we have, and so we're being very thoughtful about what additional capacity investment makes sense.

Are there any additional product investments that we want to make? As you noted, we have an analyst day coming up in May. We plan to talk more about that part of our business. and how we see that evolving over time. as Cummins has done throughout our history, really

being disciplined in how we look at those investments to make sure that we're getting good payback and making the right capital investments across our business is how we're approaching. Excellent. Now how about uh defense work? Where do you stand? Anyone who has defense work is really getting a lot of business right Yeah, I mean like uh like power generation, we have been providing uh engine solutions for defense applications.

for many years. It's a s relatively small part of our business, but as you said, demand there is is pretty good. So not at not at the size and scale as power generation for us, but certainly an important part of our business. So what do you think of is the real truth about hydrogen and uh and how what it can power and what it can't

Some companies are doing great with it, but I think it is very expensive. You know it's expensive, but it some people still think it's the power power solution of the future. Yeah. Look our our fundamental strategy for our commercial and industrial markets is we want to invest in solutions that will meet our customers' evolving needs. And Cummins has always grown by innovating to meet our customers' needs. Um and using that to grow our business. And

You know, we see uh over the long term hydrogen may still play an important role in decarbonization. We made some tough decisions last year as we stepped back and looked at the electrolyzer part of our business, which was really focused on green hydrogen production. Um and with the

reduction in incentives available to help that really nascent industry begin to grow and the the reduced adoption rate, we've stopped new commercial activity in that part of our business. That was an adjacent growth opportunity for Cummins. Hydrogen's going is going slow. We continue to think about it as a

as a fuel of the future um and pace investments in the in those technologies so that we're ready when and as our customers. I know because I saw the acceler write down and I'm so hopeful that it's like you I'm hopeful that it's such a clean fuel but I see that it's just not economic. Uh the last thing I I would talk about is that you know some some um actually literally hedge fund managers are buying a lot of caterpillar engines

And then they're saying, listen, if we string string a thousand of them together, we can power data centers. Is someone anyone trying to buy thousands of Cummins engines and actually power data centers? So as I said before, really our space in data centers is backup power. A data center needs uh nearly a hundred percent power reliability. They can't afford any power outages. The diesel gen set maybe as a you know, short term solution may make sense, but as a

as a true replacement for the grid is probably not not the same. I had this because everybody's trying to be so darn creative about these things. I thought someone might be trying to do backup generator sti uh uh Together, but I think the people are getting a little more common sense school. That's not a way to go. I want to thank Jennifer Rumsey, Cummins Chair and CEO, on the great performance you've had. Terrific to see you. Thank you, Jim. Thank you. And Mike's back, everybody.

February But there were still more than a few individual Kramer's ranking the Nyaa Big Arch såmäktig med 226 gram saftigt kött. 100% nötkött och den perfekta syrig av Big Arch-såsen. Nya Big Arch för riktig McDonald's-runger. 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 trying to be able to do it. Life is short and you just gotta think big to accomplish big things. Hosts CNBC Changemaker. Every Tuesday wherever you get your podcasts.

After an eventful weekend, it seems pretty clear that March is gonna be very different from the month of February. But before we can focus on the new world where we're exchanging rockets with Iran, I want to go over where we were coming from because February was a rough month for the market. While the Dow Jones industrial average rallied slightly up 0.2%, the SP dropped 0.9% and the Nasdaq plunged 3.4%. Now the averages don't always tell the whole story.

That's why tonight I want to paint you a picture using the ten best and worst performers in the SP from last month. February's best performer, a name that you might have heard from our when we went over it a couple times last year, Texas Pacific Land Corporation. It's up 50.5%. Now this is a company that owns a ton of land in Texas. and leases that land to energy producers while also selling them water for hydraulic fracturing or fracking.

So when the price of crude rises rapidly like it's been doing, going from the mid fifties at the end of last year to sixty seven dollars on Friday, for spiking of course to seventy two dollars today, that's very good news for Texas Pacific. All this was in anticipation of some kind of conflict with Iran, and now that the Iranians have reportedly shut down this trade of Remuse and keep shooting rockets at the oil rich Gulf monarchies, anything connected to oil could keep winning.

Of course, if peace breaks out, crude's gonna come right back down. At the same time, Texas Pacific has also floated the idea of building data centers on top of the land it owns. Although I think it would take a pretty long time for that story to play out, assuming it ever happened. It does have a certain synergy though. Uh when you consider that data center engines can be powered by natural gas or diesel, at least for batteries.

February's second best performer in February is one it uh is one of the ones that I am most excited about, and that is Corning. It's a stock we own for the Child Trust that was up 45.7% last year. Now, this company's a glass specialist has been printing money as it makes fiber optic equipment for the AI data center build-out.

And that's how the stock could quadruple in less than a year. Now I had my aha moment with Corning at revisiting the company's Harrisburg, Kentucky glass plant last September. That trip was mainly about their business supplying glass for the iPhone, but I left Kentucky feeling more excited about the fiber optic uh opportunity than anything else and quickly built a sizable position in this one for the Travel Trust. Since then, it's been less than five months.

And the trust has a ninety-six percent gain in the situation. Corney's gradual ascent turned into a furious rally in late January when the company announced a six billion dollar deals to supply fiber for Meta platforms data centers. And then the next day reported a great set of numbers and even better guidance for the current quarter. The stock hasn't looked back since.

I think the big lesson from Corning is that company supplying components or services for the data center continue to be some of the best stocks in the entire market, even after they've moved a great deal. Now we got a bunch of other examples just looking at the top 10 performers, the SP 500 last month. In fourth place, there's this key site technologies. A lot of people buzzing about key site, who's not more than 42%.

Now, these guys offer electronic design automation software along with test and measurement hardware that customers use to optimize networks and accelerate product design. K site's found a big business with AI data centers, helping them run as efficiently as possible. Last month, the company reported a blowout quarter with Great Guy.

In fifth place, we've got Sienna up 38.5% last month. Now this is an old school networking play that's seen its growth accelerate dramatically thanks to demand for fiber optic equipment from the data center. On top of that, last month Sienna benefited from the news that they'd be returning to the SP five hundred after seventeen years. They're taking the spot the uh spot by the way of day force going properly.

In sixth place was one we talk about a lot. It's Generac, up thirty-four percent in February. This maker of backup generators and other energy equipment, like home solar and battery storage solutions, actually turned in a weak fourth quarter early last month, courtesy of a light hurricane season in the fall. But it also offered a strong outlook for 2026. That's because GenREX got a fast-growing business selling industrial-scale generators as backup power for the data center.

But the stock's also been helped by the severe winter weather we had held throughout m we had much through the country. It was pretty much everywhere. Many areas have more ice and snow than and saw prolonged power allergies, likely motivating a lot of people consume to to say, listen, you know what? We're gonna pull the trigger on home generators, generax bread and butter.

In seventh and eighth places, we've got two semiconductor related uh names, pterodyne up 32.8%, and cutity electronics up 31.8%. Teradine is a semiconductor test and measurement play, while Cunity Electronics is a recent two pond spin off, another big tribal trust holding, makes materials that are used to produce semiconductors. including some of the most advanced chips out there. While many areas of tech are suffering, the seminar complex has been doing

In fact, Cunity has become one of my favorite news stocks. Longbury within DuPont and Underappreciated. This business is finally getting the attention it deserves as an independent entity that's in the materials business. Last week the cover reporter blow a quarter. It's been an incredibly successful breakup for Cunity. Also has been for for DuPont, which has been performing very well since the spinoff. That's legacy DuPont.

Next up, the SP's 10th best performer was another data center play with a fantastic bang up quarter just this week. Dell technology Up twenty nine point four percent. Now this stock had been steadily sinking lower throughout the last fall and into the new year, as Wall Street thought they'd be crushed by skyrocketing memory and data storage costs.

But last week Dell shocked Wall Street with a huge fourth quarter beat, driven by strong AI product sales and far better than expected, margins because they were able to pass on their own cost increases to their customer base. Dell's got a huge backlog and they have a very bullish outlook for the full year is great conference school, which is why the stock sort nearly 22% on Friday alone. Very confident.

Now there were a couple non-data data center stories too. Uh the third best form of the SP last month was Davida. It's a medical technology company best known for its kidney dialysis machine.

It had a terrible year in 2025, down 24%. But they reported a terrific quarter last month, and the stock caught fire, which is how it finished February up forty-three percent. Haven't seen that stock do that well in this long. As was the case with Dell, I think this was a situation where the analysts and the investors simply got too too too negative about the story. So when it turned out that things weren't as bad as they thought the stock soared.

Finally in tenth place there's Halmet Aerospace again, or as I call it, How I Met Your Mother. This stock's outperformance is nothing new. I've loved Halmet for ages and is now up more than 800% over the past five years. That includes a twenty-six point two percent gain last month. This thing has no quit in it. Nothing surprising here, the aerospace bull market remains fully in place.

Really the whole aerospace and defense complex looks terrific right now. Here's the bottom line. When you look at the SP's top ten biggest winners from last month, you find a lot of data center suppliers, some energy stocks, a little aerospace, and one med tech play. Stick around after the break and I'll paint you a picture of what's not working with the ten biggest losers. Okay, let's go to Stafford in California. Stafford Hey Jim, how you doing? I'm doing well, Stanford. How are you?

I'm okay, thanks. Uh I want to get your thoughts on Lockheed Martin. Okay, we know we have a d a difficult world. We know that they are a big supplier to the Defense Department. We know that the Defense Department doesn't have enough weapons. So the answer is Lockheed Martin is still a winner even up here. Let's go to Susie in California, Susie. Adrian, thank you for a variety of information you share with us. We feel blessed. Thank you. Oh thank you.

Today I wanna talk about a financial stock that you highly recommended. I noticed that Barron reported as of last week that bank brokerage and wealth management stocks are slumping obviously. As investors are worried about disruption from AI and the potential ramifications of resurgent infl infl inflammation. Inflation, sorry. Easier.

Reports of uh regarding private credit exposure, which by the way I'm hearing a lot about on CNBC. So currently sixteen analysts have as a buy, and as of January, even though the stocks at one ninety five, true. Securities Barclays and B G G P T I G have it at two seventy seven.

Fortunately it's at one ninety five. I realise you can't predict how the stocks will do, but you like this stock and to me the most important is what you think it will do, when it will recover and why it will recover on top of that capital one. Capital One. Okay, so here's the problem, Capital One. It was flying, then the president decided listen we ought to cap uh interest rates. Now I don't think that's gonna happen. Ten percent cap, that would be bad for Capital One.

Then this that shot the stock down. Uh and then this piece last week that we read about how um you know, look uh credit cards aren't gonna do well. in the new world with that with a lot of AI, that made no sense to me. Capital One is Richard Fairbank. He's gonna integrate Discover and that's what matters. It's the internal aspect of Capital One that I like. I think credit's much We thought at this point last year.

I don't see there's anything wrong with this stock other than it is really one wild trader. With it. We bought some back that we sold much higher last week. That's the right trade. The winners in February were largely data center related and energy related. We'll see if that trend continues in March. Now, much more map money ahead. I'm digging into the 10 worst performing stocks in February and analyze. Then could Bitcoin finally be poised for a com-

I'm going off the chart to find out. And all your calls are rapid fire tonight's edition of the lightning round. So stay with me.

Before the break, I went over the best performing stocks SP 500 last month, but February was a pretty bad month for stocks overall, so let's talk about the ten biggest losers. I think they tell an important story. Well, two stories. First, the enterprise software and professional services stocks have just been crushed by AI displacement worries. S let's say somewhat reasonable? I don't know. It's too early.

Second, the private credit space seems to be under severe pressure, in large part because these firms were way too keen on lending money to slop fur companies. But at this point, private credit has metasticized into its own separate problem, and that I am more concerned about. With that in mind, let's talk loose. The SP's worst performer for February was EPAM, EPA EPAM systems, down 32.4%. Now this one's right in the AI blast radius because it's an outsourced software developer.

Companies come to EPAM to help them build software that they can't or don't want to create in-house. Unfortunately, these generative AI platforms can do more or less the same job for a lot less money. Beyond being wrong thematically, things got worse for EPAM, specifically when the company reported mid-February. The actual quarterly results were pretty good, but management gave us light sales guidance for both the current quarter and the full year.

The forecast seemed to confirm the market's broader fears about AI displacement. Setting the stock down 70% in a single session. And it never recovers. Now that's an example of a company that I am very concerned about. The second's biggest loser in February was another victim of AI that I am very concerned about. It's called CoStar Group. And that was down 27.4%.

CoStar offers online marketplace services, data and analytics for the commercial real estate market. It's it's sort of like a Zillow for commercial properties. Their stuff is proprietary, but maybe it becomes a lot less valuable when AI can easily write code to gather the same data? That seems reasonable to me. A real fear. Just like EPAM, Co-Star reported a strong fourth-quarter report in February, but paired that with a disappointing forecast.

So many of these stocks have been crushed by AI worries, and the ones that got hit hardest are like CoStar, where these worries have actually started to hit the numbers instead of just being a possibility down the road. Rather than going in descending order, do you mind if I cover all the AI victims at once? Another professional services firm, Gartner, was the fourth worst S P five hundred stock in February.

It was down an astounding 25%. This has been a steady eddy stock. Gardner is an IT consultant. Customers come to Gardner for help when figuring out what technology they need and how to set it up. But in a world where AI platforms are ubiquitous, Wall Street figures their specific expertise is less valuable. Shrinkage of the multiple.

Just like EPAM and Co-Star, Gardner didn't help its case when it reported a good quarter early last month, but once again, it offered a light full-year forecast. And that is what's really getting people worried. The fifth worst performer in February was Workday, an old favorite, but not anymore. It was down 23.8%. This one's an actual enterprise software company focused on platforms for human resources and finance.

Workday was dragged down along with broader enterprise software cohort in January. Then it got hit again February 9th when we learned that CEO Carl Eschenbach would be stepping down. He's gonna be replaced by predecessor co-founder co-founder Neil Bush, who I know well and I think is terrific. But it doesn't h happen you don't make that change when things are going real well. But don't forget Bush's a steady hand.

Last week work they reported and though its results were fine, the company also lowered its full year sales growth forecast. They only issued that previous forecast three months ago. After initially falling further in response to the quarter though, the stock found its footing and was able to rebound. Do you know it's now up almost fourteen percent from its intraday low last Wednesday?

So you have to ask, is this a real bottom? Look, WorkSay is now selling at astoundingly low 13 times this year's earnings estimate, like some dusty old cyclical. You could argue that makes it too cheap to ignore, but the enterprise software stocks are so hated that I'm not sure Wall Street will care. I think it's probably too soon to start bottom fishing, maybe retest the old low, the price journey's multiple continues to shred.

How about the other group of big losers this month? Oh boy, the private equity firms with lots of private credit exposure. Aries management was the third worst performing the SP 500 for February, down 25.2%. KKR was the seventh worst, down 23.3%. And Apollo Global was the 10th worst. It was down 22.3%. Now these three private equity firms, all of which have a great reputation, reported very different results last month. IRI's had a sizable earnings miss.

KKR at a small miss, Apollo Post a nice beat, but their stocks traded in lockstep is like they were all the same because Wall Street's convinced that they have too much exposure mostly to software stocks, even though they actually really don't.

When all is said and done, I think these concerns might prove to be overblown. All three of these stocks were up big today. It's kind of like February's over, let's start buying'em. I also don't feel like trying to be a hero though when the private equity space is so hated.

Then there are the rest of the losers, and some are intriguing. Robert Hood Market, six worth performing the SB last month down twenty-four percent, nearly twenty-four, largely because it reported a miserable quarter in mid-February, and that was thanks to Soft Options and Crypto Trading. Stock fell 17%. Over the following two sessions, it's only partially recovered.

Now long term I'm a believer in Robinhood. I think they've made themselves the preferred trading destination for young people, which means they own the future. But in the present, Robinhood's become totally hostage to crypto and options trading. Don't believe it's hostage to equities in 401k.

They've made a big push in the predictions market too, and I'm not thrilled about the idea of Robinhood users having to decide whether to put ten dollars into NVIDIA or the Seahawks in the Super Bowl. If you want to bet on a tech-focused financial that appeals to young people, I prefer SoFi. But that said I am turning very bullish on crypto, as you will gear you're gonna hear that later in the show. And Robinhood stock did rally almost three bucks today, I think, because of a turn in crypto.

It may be bottoming. Others see it besides me. Next up, the eighth worst performing SP last month was Fox. Now, this is an anomaly. It's down 22.6%. Fox has been the best performing traditional media company for a while now and reported a stellar quarter in early February. Just a colossal earnings beat. But the stock sold off in response and it's been sinking lower ever since. I think the sellers might be worried about new competition.

I'm not one debating work for Warner Brothers Discovery. Whatever the reason, Fox now trades it just twelve times this year's earnings estimates, and I think that's pretty cheap. Too cheap. Finally the ninth worst performing stock the SP five hundred was ICUVIA down twenty-two point three percent. Now this is a CRO contract research organization. Pharmaceutical companies hire these guys to run their clinical trials. Oh, what a great business.

The CROs were all caught up in the AI displacement trade, unfairly in my opinion. I just don't see that happening at all. When IQV have reported in early February, though, the company reported a solid beat, but also gave a weaker than expected four-year forecast.

No, I know it doesn't help that RFK Jr.'s FDA is taking a skeptical approach toward new drugs, particularly orphan drugs, by the way. Overall, with expectations now reset, I am tempted to say that you're probably getting a nice buying opportunity here. But this is another company where any potential buyers will be swimming upstream. I like the business very much. I just don't know whether this is the right stock to play.

Here's the bottom line. When you look at the last month's biggest losers, you see a lot of worries about AI displacement, something we talk about a lot, something that's even spread to the private credit space.

Simply because many of these firms have a ton of exposure to the enterprise software cohort that we're all so worried about. Will the losers keep losing? I think March will be very different from February, unless peace breaks out with a RAM. But if you're hoping for a rebound from last month's hardest hit stocks, A little bit of bounce here and then don't hold. Money's back. Get charged up. Fast fire light But it's so much temperature to everything you can plan to sell.

Are you ready? Steve Dagton Lightback's over Steve and Missouri. Steve. Damn, I love the clock! Thank you very much. I really appreciate it. People who sign up, you know what? Hey, signed. Let's go. Let's go. Let's go. Hey uh one of the big banks you Fell almost 10% on Friday, and that was before the strike on Iran. It tried to come back a little bit today. What do you recommend on Goldman Sachs?

And I were both marveling about how ridiculous the stock was down. It's 15 times earnings. Uh my friend Lloyd Blankbrine in a very good book, Streetwise, talks about exactly why the company's valued as it is. I think it's way too cheap. Okay, let's go to Harrison and Maryland. Harrison Jimmy Chill, what's going on? Uh I don't know Harrison.

Me, what's happening? Alright, so Jim, I got a big winner. Started in the mid twenties and now it's in the mid to high fifties. It dipped a bit today, but they just delivered double digit adjusted EBITDA growth despite significant Tariff cost that could ease after this big run. Should I still be holding or even adding here on Vita Coco?

You know, I like that stock. I liked it when it came public. But I think if you have a nice position, let's hold on to it because it is so close to what 50 should we cut. But it is a winner. Let's go to Oh man, you know what? I should have pulled the trigger for General when I sat down with him at the JP Morgan conference.

Cheropachel should have owned it, it would have been a much better b uh really much better drug stock than the others that we have, with the exception of Eli Low. Let's go to Sari in Illinois. Sari. Booya Jim. Booya. Thank you for taking my call. I'm a second time caller and love your show. I thought

There's a fortune power solution, Fortune Power Solutions, symbol FPS on its opening February fifth. This is another one of those incredible stocks. It's electrical distribution, its components, its data center. I gotta do a piece on Fortune. I gotta do a piece, a separate piece on that. That's how good that stock is. Thank you for bringing it on the show. I needed it front and center for me. Let's go to Debbie and Georgia. Debbie.

Hey Jim. First real quick, thank you for all you do and I don't want to take too much time with that'cause I know it's your lightning round. So I'll move on, but thank you. Okay, um okay, so I have owned this stock since twenty twenty. I have taken a ride down and a ride back up. And I rang the register

and I got back my initial investment. However, would you consider MV materials to be a spec at this point or does it have some long term growth potential? No, I think it does have long term growth uh life in part because the president has pretty much just said, you know what, we're not gonna let this one go away.

It's too important to the country. Let's not forget that. And that, ladies and gentlemen, is conclusion of the Coming up has been Sometimes you notice these oddities that can change your entire view on an asset class.

When we walked into the office this morning, we all marveled that Bitcoin, which had been in free fall until recently, seems to have found some sort of bottom. If you think about six months ago, Bitcoin was still waging. serious fight higher. It seemed to be fulfilling its role as a storeholder value. It had nearly doubled over the previous 12 months. Then last September something changed. Larry Williams, an old friend of the show and one of the great market historians

said beware of Bitcoin because of a major top that was developing. Sure enough, we came to October and Bitcoin peaked at$126,000 for plunging to the low sixty thousand last month. What a call Larry made. I bring this up because this very morning, Larry sent me an email saying, hey, you know what? It's time for Bitcoin to blast off. Just as it was overvalued when we called the top in September, he now thinks it's undervalued, particularly versus gold.

Which does matter tremendously. Okay. Uh Larry's always looking for patterns, cycles that seem to repeat themselves over and over again. And when you look at the weekly chart of the grayscale grayscale BTF. A Bitcoin Trust ETF. That's just kind of a mouthful here. Uh which is a proxy for Bitcoin because it has the longest history. The cycle predicts it has an eighty-five percent bias to rally from now until June. I like that. This is the same tool that Larry used to call the top in September.

Why might Bitcoin be poised a rallyer? Now we gotta take a look at another chart. This is a chart, a weekly chart of the Bitcoin futures with a couple of key tools at the bottom. The yellow line shows how Bitcoin's trading relative to gold. It got very overvalued last summer. And now it's pretty darn undervalued.

Now, I typically don't talk much about Bitcoin in this show, even though I've been a big believer in it for some time. For a while I thought it could serve as a digital gold, a sort uh uh yes, a storeholder value in a world where I expect our currency to be debased over time. But after the last couple of years, it's obvious that Bitcoin doesn't play that role. Gold is a much better insurance policy, even if the rally of the precious metal has gotten out of hand.

So if it's not inflation insurance, what role does Bitcoin play in your portfolio? When you look at the linkages, Bitcoin has a rather close relationship to only one thing: the animal spirits of risk. That's right. Bitcoin works, so to speak, when the crowd seems undisciplined and willing to buy the most fanciful equities. The ones that were part of the year of magical investing. The very same stocks that peaked last October, right when Bitcoin did.

So here's my thinking. I go back to what Amar El Jundy, he's the CEO of Agnico Eagle Mind, said on our show not that long ago. He said he thought that the run in gold was fueled by younger people who were abandoning Bitcoin because gold was rapidly rising. They wanted to be on the He said that Bitcoin had stopped working for them, they abandoned ship. That may be true. But I sense that the disparity between gold and bitcoin has finally gotten too great.

Today's rally is the real deal. I'm with Larry Williams. The sellers look exhausted. The bottom fishers are back, and the bounce could last. For those of you who are inclined to bet on crypto, I think that it's time to do some buying. I like to say there's always more markets. Just for you right here, man, money. See you tomorrow.

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 C N B C nor its affiliates andor subsidiaries warrant its completeness or accuracy and it should not be relied upon as a To view the full Mad Money Disclaimer, please visit CNBC dot com forward slash Mad Money Disclaimer.

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