Mad Money 06/04/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer analyzes a market rally that shrugged off earnings misses and a large Alphabet offering, sees a buying opportunity in CrowdStrike, highlights Timken's industrial growth story, warns that the dollar-store trade is broken, and fields lightning-round calls on several stocks.
- Market rallied despite disappointing earnings from Broadcom and a large Alphabet equity offering.
- CrowdStrike's strong quarter was met with a sell-off; Cramer calls it a buying opportunity.
- Quantinuum IPO saw strong demand but Cramer warns it is too speculative to recommend.
- Timken CEO discusses growth from reshoring, data centers, and advanced motion systems.
- Dollar stores (Dollar Tree, Dollar General, Five Below) are suffering as lower-income consumers are squeezed by inflation and gas prices.
- Lightning round includes recommendations for Woodward and MannKind, and a penalty box for Photronics.
- Cramer notes that Uber is a buy after its decline.
- The overall market has a huge appetite for new stock supply, a positive sign for upcoming IPOs.
Trade Ideas
Buy Uber after decline.
Uber is a buy after its decline; the stock has settled down and is still doing well, and the market has a huge appetite for new supply, which supports further upside.
Buy CrowdStrike after sell-off.
CrowdStrike is a buying opportunity after the sell-off because the quarter was excellent (record ARR, accelerating revenue, record cash flow, raised guidance) and the market overreacted to a smaller-than-usual beat.
Avoid Quantinuum speculation.
Quantinuum is too speculative to recommend as an investment; it has minimal revenue, huge losses, and an uncertain timeline for commercial viability. Only use money you can afford to lose.
Timken has upside ahead.
Timken has more room to run based on management's guidance of 55% earnings growth through 2028, benefiting from reshoring, data center buildout, and a shift to advanced motion systems.
Avoid Photronics until next quarter.
Photronics is in the penalty box after a bad earnings miss; wait for the next quarter before considering it again.
Buy Woodward for industrial exposure.
Woodward is a high-quality engineered products company with exposure to industrial engines that is working well under the current administration, and it is recommended despite its high P/E.
Speculative buy on MannKind.
MannKind is a 100% speculative stock, only suitable for a small speculative position; it is not an earnings-oriented holding.
Avoid dollar store stocks.
The traditional trade of buying dollar stores during a weak economy is broken. Lower-income consumers are squeezed by inflation, tariffs, and high gas prices, so they are not trading down to dollar stores. The sector no longer offers bargains and should be avoided.
