Mad Money 05/27/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer emphasizes not letting a stock's past price prevent buying if it has upside, using examples like Corning, ARM, and Dell. He interviews Salesforce and Snowflake CEOs after their earnings, reviews retail earnings calling out TJX and Ralph Lauren as buys, and warns that Microsoft is a value trap. He also cautions against buying Micron at current highs.
- Cramer's key lesson: focus on where a stock is going, not where it has been.
- Salesforce reported strong earnings, but stock was flat; Cramer calls it too inexpensive.
- Snowflake blew out earnings with 33% revenue growth and raised guidance, driven by AI.
- Retail earnings show K-shaped recovery: TJX and Ralph Lauren are winners; Walmart and Target are mixed.
- TJX and Ralph Lauren are Cramer's preferred retail buys, expecting further upside.
- Microsoft is labeled a value trap, underperforming while other tech surges.
- Micron has rallied to a trillion-dollar market cap, but Cramer says it's too risky at current levels.
- Lightning Round: Mattel and Realty Income get buy signals; Pool is avoided.
Trade Ideas
Microsoft is a value trap.
Microsoft is a value trap; it has done nothing while other tech stocks exploded higher. The opportunity cost of holding it is horrendous, and it is vulnerable from multiple directions including non-voice AI, gaming, and Windows. Investors should avoid or sell.
Salesforce too cheap, buy here.
Salesforce is too inexpensive at current levels; the large buyback and strong earnings growth signal management's confidence. The stock should be bought at these prices because sellers are wrong.
Snowflake has the AI edge.
Snowflake is a standout software company benefiting from AI, with a blowout quarter showing 33% revenue growth, strong guidance, and a unique consumption model. The stock is flying and represents where software companies are going.
Walmart pullback is buying opportunity.
Walmart's post-earnings pullback is a buying opportunity; the stock matched expectations and the decline was excessive. In the long run, Walmart is fine despite near-term consumer pressure and a relatively high valuation.
Target is a buy here.
Target is a turnaround story with healthy top and bottom line beat, 32% earnings growth, same-store sales up 5.6%, and raised revenue outlook. It trades at just 15 times earnings with a 3.6% dividend yield. The quarter was a home run and the stock is a buy.
TJX will keep going higher.
TJX is a top retailer due to strong execution in off-price retail, benefiting from consumer nervousness about the economy, with a robust beat on earnings and same-store sales, raised full-year forecast, and expanded buyback. The stock still has room to run higher from current levels.
Ralph Lauren will keep rallying.
Ralph Lauren delivered a blowout quarter with 17% revenue growth, 25% earnings beat, and 17% direct-to-consumer comparable growth. The brand is on fire with excellent merchandising and strong DTC business, and management gave a robust full-year forecast. The stock is poised to continue rising.
Mattel bottoming, should be bought.
Mattel is bottoming at current levels; the stock is down 25% and sells at 11 times earnings. Management is doing a good job, and the stock should be bought here despite a tough toy business environment.
Realty Income dividend, stock higher.
Realty Income offers a nice dividend and the stock is going higher. It is a solid income play.
Micron too risky at current price.
Micron is not worth the risk at current elevated levels (around $928) because new memory production capacity will eventually come online, crashing the boom-and-bust cycle. While the stock could rally further on the shortage, the downside risk from eventual capacity additions is too high. Better to wait for a pullback.
