Mad Money 04/01/26 | Audio Only
Speakers
Jim Cramer -- Host of Mad Money
— CNBC host, Mad Money
Summary
- Jim Cramer expresses skepticism about the current market rally, describing it as narrow and lacking broad leadership, led primarily by data center-related stocks and commodity plays.
- The rally's leaders include memory stocks (e.g., Western Digital, Sandisk, Micron) and fiber optics plays (e.g., Lumentum, Sienna), but Cramer notes these are benefiting from shortages rather than robust growth.
- Cramer voices deep concern about Microsoft, citing poor stock performance despite a captive audience, issues with co-pilot, and existential risks from AI competition; he admits the stock is "on borrowed time" in his trust.
- Top performers in the S&P 500 for Q1 include SanDisk (+167.7%), Lumentum (+90.7%), and Moderna (+72%), driven by AI data center demand and specific catalysts like FDA developments.
- Worst performers in the NASDAQ 100, such as Atlassian (-58%) and Adobe (-30%), are largely victims of AI displacement fears, though Cramer sees some oversold opportunities like Intuit and DoorDash.
- In an interview, Dylan Patel of Semi Analysis highlights misconceptions between Wall Street and actual tech trends, criticizing Microsoft's execution and noting the collapsing cost of software for companies like Adobe.
- During the lightning round, Cramer is bullish on Boeing for 2026, avoids Bentley Systems and Vizsla, and calls AECOM a great company but expensive.
- Eli Lilly's approval of a new GLP-1 weight loss pill and acquisition of Cincor Pharmaceuticals are praised as positive developments, with Cramer recommending the stock.
Trade Ideas
Cramer stated he is "worried" about Microsoft, that co-pilot needs to be redone, the stock has failed to rally despite a captive audience, and it is "on borrowed time" in his charitable trust portfolio. Poor execution and competition from AI tools are eroding Microsoft's dominance in enterprise software, with users opting for alternatives like Claude Code. AVOID because the stock is underperforming due to existential risks and lack of innovation, making it unattractive despite its smart management. Microsoft improves execution, co-pilot gains traction, or management addresses the concerns effectively.
Cramer said he is "willing to stick my neck out" for Intuit, noting it has a trusted brand and network of experts, and the stock is up 8% since the CEO spoke, hoping for a "larger comeback." Despite AI displacement fears, Intuit's brand loyalty and expert network provide durability, and recent stock performance suggests potential recovery. WATCH as the stock may be oversold due to AI concerns, but a comeback is plausible and worth monitoring. AI platforms fully replicate Intuit's software, eroding its competitive moat.
Cramer said, "I like it. I think the stock of Door Dash can be bought here," noting it is the cheapest it has ever been and that network effects protect it from AI displacement. DoorDash's strong marketplace network and affordability make it resilient against competition, with AI fears overblown. LONG because the stock is undervalued and has sustainable growth prospects in the online food delivery space. Economic downturn reducing consumer spending or increased competition from rivals.
Cramer said, "Yes, I think Boeing is going to be one of the big stocks of 2026" and that it is "refreshed and ready" during the lightning round. After prior struggles, Boeing is poised for recovery and growth, with Cramer expressing confidence in its turnaround. LONG because of expected stock appreciation driven by operational improvements and market recovery. Further production issues or safety concerns derailing the turnaround.
Cramer praised Eli Lilly's approval of a new GLP-1 weight loss pill (Fondeo) with advantages over competitors and its acquisition of Cincor Pharmaceuticals, stating "let's own the stock" and that it is held in his charitable trust. The pill is more convenient and cheaper than injections, likely driving blockbuster sales, and the acquisition expands Lily's pipeline into neurological treatments, funded by weight loss drug profits. LONG due to strong growth potential from the weight loss drug and strategic investments in high-impact healthcare areas. Increased competition from Novo Nordisk or regulatory setbacks.
