Mad Money 02/06/26 | Audio Only
Watch on YouTube ↗  |  February 07, 2026 at 00:44 UTC  |  44:17  |  CNBC
Speakers
Jim Cramer — Host, Mad Money
Tom Jorden — Chairman & CEO, Coterra Energy (merging with Devon Energy)

Summary

  • Market Milestone: The Dow Jones Industrial Average crossed 50,000 for the first time, driven by data center construction stocks.
  • Macro Focus: The key event next week is Wednesday's Non-Farm Payroll report. Cramer argues the market needs a "weak" labor report to give the Federal Reserve wiggle room to cut rates later this year, which would aid housing, autos, and construction.
  • The "Mag 7" is Dead: Cramer insists the "Magnificent Seven" should no longer be treated as a monolith. The group has fractured into winners (Nvidia, Apple, Meta) and laggards (Tesla), requiring individual analysis rather than basket buying.
  • Software Capitulation: A massive sell-off in enterprise software (due to fears that AI will replace them) has created a buying opportunity in high-quality, profitable companies that were "thrown out with the bathwater."
  • Gold vs. Crypto: Cramer explicitly favors Gold over Bitcoin as a store of value, citing Bitcoin's correlation with the dollar and recent volatility.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Jim Cramer
Host, Mad Money
A caller asked about "Kroner" (likely Klarna or similar), but Cramer pivoted to Affirm. Affirm is the superior operator in the Buy Now, Pay Later space with better numbers.
LONG Tom Jorden
Chairman & CEO, Coterra Energy
Coterra and Devon Energy are merging to create a top-tier energy producer. * Data Center Demand: Natural Gas is the "top of the stack" for powering AI data centers because it is reliable and dispatchable (unlike wind/solar). * Scale: The combined company will have the balance sheet to be an "investment grade" supplier that tech giants require. Credit rating agencies have placed them on positive watch. 26:55
LONG Jim Cramer
Host, Mad Money
Reviewing the "Mag 7" earnings, these two stand out as buys on the dip. * Alphabet (GOOGL): The best performer of the group last year; the recent pullback is just a "breather." They dominate search, cloud, and consumer AI. * Meta (META): The stock erased its post-earnings gains despite a great quarter. Zuckerberg proved AI spending is improving core ad profitability. The drop is a "gift." Meta delivered a huge top/bottom line beat. 11:45
AVOID Jim Cramer
Host, Mad Money
Crypto-linked stocks are too volatile and tied to Bitcoin's questionable status as a store of value. If you want exposure to crypto, just buy Bitcoin itself. Do not buy the proxies like Coinbase or Robinhood, which are becoming "toxic" due to their correlation with a falling asset. 5:07
WATCH Jim Cramer
Host, Mad Money
Amazon announced $200B in Capex, shocking the market. The transition from a solid growth company to a heavy-investment/debt cycle is difficult for investors to stomach. While Cramer trusts CEO Andy Jassy, he admits it is "too hard" to pound the table for new buyers right now. 15:05
LONG Jim Cramer
Host, Mad Money
These are the two "Mag 7" stocks that should be held through volatility, not traded. * Apple (AAPL): Strong iPhone sales and a rebound in China. They avoided massive Capex spending by partnering with Google on AI. * Nvidia (NVDA): The primary beneficiary of the hundreds of billions of dollars in Capex spending announced by Amazon, Microsoft, and Meta. 14:21
MCK /CAH /CVS
LONG Jim Cramer
Host, Mad Money
Medical distributors and managed care are performing well. * McKesson (MCK) & Cardinal Health (CAH): "Classic drug middlemen." They are consistent winners; buy them anytime they dip. * CVS Health (CVS): The only health insurer to own. It is now the last real national drugstore chain (with Walgreens private and Rite Aid closed) and is undervalued as a managed care play. 2:27
LONG Jim Cramer
Host, Mad Money
Enterprise software stocks have been decimated (down 30-70%) due to fears that Generative AI will allow companies to write their own code and replace SaaS providers. The sell-off is overdone for profitable companies with strong growth. * Intuit (INTU): AI is not a threat to the consumer TurboTax business or SMBs who cannot afford to build internal software. * Salesforce (CRM): Trading at its lowest P/E multiple in history (14x), cheaper than during the 2008 recession. * ServiceNow (NOW): Strong growth (19%) and a massive buyback program ($2B). * Box (BOX): Cheap (16x earnings) with consistent execution. * Atlassian (TEAM): Down 70% from highs but growing earnings at 30%. * Workday (WDAY): Trading at less than 15x earnings despite 18% expected growth. A proprietary screen identified these specific names as having >25% drawdowns but above-market earnings growth and profitability. The market may continue to punish software stocks irrationaly in the short term if AI fears persist. 21:35
SHORT Jim Cramer
Host, Mad Money
A caller asked about holding Oracle after a drop. Cramer dislikes what they are doing to their balance sheet. He prefers companies with pristine financials. If the stock bounces, use it as an exit liquidity event. 25:49
AVOID Jim Cramer
Host, Mad Money
Toast (Restaurant POS software). "Great device, bad stock." A good product does not automatically make a good investment, and the stock has been a "house of pain." 36:21
AVOID Jim Cramer
Host, Mad Money
UiPath (Robotic Process Automation). The stock is too expensive, and the thesis that bots will replace mundane tasks is not compelling enough to justify the valuation. 35:48
AEM
LONG Jim Cramer
Host, Mad Money
With Bitcoin losing its luster as a hedge against inflation/currency devaluation, money is flowing back to gold. Agnico Eagle is the second-largest gold miner and the "shiniest" stock in the sector. It is a superior safe haven compared to crypto. Bitcoin failed to rally on a weakening dollar, breaking the "store of value" narrative.
LONG Jim Cramer
Host, Mad Money
Cybersecurity stocks have been dragged down with the general software slump, but this is a mistake. AI does not replace cybersecurity; it makes it *more* critical. Bad actors will use AI to launch more sophisticated attacks, requiring the advanced defense tools provided by these consolidators. AI models (like Anthropic) cannot replicate the entrenched security infrastructure of Palo Alto or CrowdStrike. CrowdStrike and Palo Alto are top consolidators. Okta is essential for securing AI agents within enterprises. High valuations compared to the broader market.
VRT
LONG Jim Cramer
Host, Mad Money
Vertiv makes power and cooling equipment for data centers. It is a direct infrastructure play on the data center boom. Cramer prefers this over "Comfort Technology" (likely Comfort Systems or Skechers) due to the AI tailwind.