Mad Money 03/23/26 | Audio Only
Speakers
Jim Cramer -- Host, Mad Money
— CNBC host, Mad Money
Summary
- The market experienced extreme intraday volatility, with a major rally triggered by a social media post from President Trump suggesting promising talks with Iran to end the war.
- Asset class "votes" on the news were mixed: oil sold off sharply, equities rallied strongly, bonds were initially skeptical but later joined the rally, and gold was erratic.
- Cramer is skeptical of the rally's sustainability, framing it as driven by fear of missing out (FOMO) and short covering, and expects a "recount" unless Iran ceases hostilities.
- Defense spending and drone warfare are highlighted as mega-trends, illustrated by the analysis of drone software IPO Swarmer (SWMR), which is seen as a speculative "cool story" with unproven financials.
- The consumer, particularly in retail and beauty, remains resilient despite geopolitical and economic worries, with no visible trade-down behavior according to Ulta Beauty's CEO.
- Ulta Beauty (ULTA) is executing a turnaround, investing in growth (e.g., TikTok Shop) and expanding into wellness, with management committed to aligning SG&A growth with revenue growth.
- Jacobs Solutions (J) is deeply embedded in key secular trends (data center buildout, reshoring, life sciences) and is leveraging AI/digital twin technology, yet its stock is undervalued.
- The housing-related retail sector (e.g., Home Depot, RH) is stuck due to high interest rates freezing the housing market, with a catalyst only likely if rates fall.
- In the lightning round, Cramer expressed positive views on gold (via NEM) and VIAVI, and negative views on SoundHound, IEP, and Whirlpool.
Trade Ideas
Cramer states the negative narrative around Boeing is about reduced plane orders due to the war, but the actual order backlog is "stretched as far as the eye can see." The disconnect between a strong fundamental backlog and a negative war-related narrative creates a buying opportunity. The stock is a buy because the underlying business strength (backlog) is not reflected in the current negative market sentiment. Escalation or prolongation of the war further dampening the aerospace narrative.
Cramer says Rocket Companies' stock performance is a "vote" on the potential for a Fed rate cut, which was first seriously considered again on this trading day. Lower interest rates would stimulate mortgage origination activity, directly benefiting RKT's core business. At $14, the stock represents value for investors betting on a future rate cut cycle. The Fed is unable to cut rates due to persistent inflation or geopolitical pressures.
Cramer states that the Software-as-a-Service (SaaS) business model is "disliked intensely right now on Wall Street," creating sector-wide headwinds. Despite ServiceNow being a "great growth stock" with a cheap multiple, the intense negative sentiment toward its entire sector will override its individual quality. The stock is likely to face more "turbulence" and should be avoided until sector sentiment improves. A rapid shift in market sentiment favoring high-quality SaaS names.
Cramer says Swarmer has a "terrific" story at the center of the drone warfare mega-trend but has minimal revenue ($310k), large losses, a sky-high valuation (~16x optimistic sales), and faces major future dilution. The stock's hot IPO was driven by a compelling narrative and a tiny float, not fundamentals. For it to be investable, it needs to convert its contract pipeline into meaningful revenue and for dilution to occur. It is "extremely speculative" and not a buy yet; investors should watch for evidence of revenue execution and how the stock handles a larger share float. The company fails to grow revenue, dilution crushes shareholders, or the defense budget narrative shifts.
Cramer states Jacobs Solutions' stock price "makes no sense," calling it "very inexpensive" and "really cheap," despite the company being embedded in key growth trends (data centers, reshoring, life sciences) and reporting strong quarters. The company's fundamental performance and strategic positioning (including a new acquisition and AI-enabled operations) are not being recognized by the market, creating a valuation disconnect. The stock is a buy due to its attractive valuation relative to its strong secular growth drivers and execution. A broad economic slowdown that delays capital project spending across its end markets.
