transcript

Speaker 1:
[00:00] What made you confident that you could do something that hadn't been done before? I have no fear of failure.

Speaker 2:
[00:06] Trailblazing women changing the game.

Speaker 3:
[00:09] One of my favorite pieces of advice, think about what your boss's boss needs.

Speaker 4:
[00:14] Leadership can look in many, many different forms.

Speaker 5:
[00:16] It really does come down to just trusting yourself.

Speaker 2:
[00:18] Life is short and you just gotta think big to accomplish big things. Julia Borsten hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts.

Speaker 6:
[00:31] My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a boom working somewhere and I promise to help you find it. Mad Money starts now.

Speaker 7:
[00:47] Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramer. All the people I make friends, just trying to save a little money over here. My job, entertain, explain. Call me 1-800-743-CNBC.

Speaker 6:
[00:58] Tweet me at Jim Cramer. Some like it cold.

Speaker 7:
[01:03] That's a little twist on a famous movie, some like it hot, but it's also a formula for investing that's gone way out of style. I think it could return soon, maybe sooner than you might expect. See, the average has got hit today, Dow dipping 180 points, S&P sliding 0.4%, and NASDAQ losing 0.89%. But we know that certain parts of this market are as hot as a just fired pistol. Tonight, though, I want to praise the other parts of the market, the parts that have been marked down already, which makes them less vulnerable to surprises. And I'm talking about Healthcare, a group that used to represent safety, always has some growth, but is now considered poison. These are now, unbelievably, Healthcare is a value stock right now, and I like value, especially when it's attached to a growth industry like Healthcare. We need growth because it seems like, well, it's slowing in some very unlikely places, at least historically. See, it's causing me to rethink some kinds of growth and gravitate towards others. Why? All right, let me explain. Especially, if you watch the show, you know what I'm talking about. Last night, we had Bill McDermott, CEO of ServiceNow on the show, who supported a perfectly good quarter. One that passed the August rule of 50. Revenue growth rate plus profit margin equals more than 50. Very good sign for a cloud software play. There were huge signups. Many clients embraced their AI controller model, letting them automate their workforce and more. But here's the problem. In an era where artificial intelligence can mimic very good software businesses, it's hard for ServiceNow stock to get a decent valuation. Too many on Wall Street are terrified that this kind of company has no future. Hence, today's staggering 17% decline for this stock. ServiceNow, this stock, is now down a ghastly 44% for the year. 44%? Plus, even though ServiceNow stock has already been pummeled, that doesn't even necessarily mean it's gotten cheap. As Ben Rice just said, Milius tells us lots of their employees get stock in its compensation. If you were to treat that as real cash compensation, as you and I might, then even after today's dramatic fall, 103 to 84, and change, stock sells at 37 times earnings, much more expensive than most of the S&P. Now, I've gone over everything that McDermott told us about half a dozen times. Here's my conclusion. ServiceNow is doing exactly what it's done for years, but it's no longer going to be given that same price during these multiple, because artificial intelligence is cheaper, and even if it doesn't wipe them out, it could put pressure on pricing, and you don't get a premium multiple if your company's pricing is under pressure. The markets changed, the buyers turned into sellers. Doesn't mean ServiceNow isn't a great company, it is, but institutional money managers who determine the prices that you see won't pay up as much for that, for that kind of greatness, when it's an enterprise software vulnerable to the great disruptors we talk about all the time. The starting decline in the stock rocked the software index, making almost every one of these down, as holders believe that their software stock could be the next victim of anthropic or open AI. Probably an exaggeration. Some groups like cybersecurity have a lot less AI displacement risk. Private equity groups got crushed too, as they own the debt of many cloud software companies that have gone private in the past. That debt's now under suspicion for the same reason ServiceNow got rocked. It could be unfair, but no one's going to let you get your money back from these things. These aren't vacuum cleaners, people. There's no warranty. And certainly no returns. How about this for a stock? Caveat Emptor. At the same time, we got hit by the big layoffs and Ed Meda today. That came midday. But I think Mark Zuckerberg is being efficient. When the market heard Meda's firing 10% of its workforce, it read that it is meaning that the business must be faltering. That's completely untrue. That's his style. But the pin action hurt a lot of stocks. They didn't all recover. He's efficient. He's efficient. I just like that. All right. Microsoft also offered buyouts. All right. That stock got hit too. We can't presume anything anymore. But we do know that the software stocks got walloped, not just by service now, but by Microsoft's beliefs. We're not used to seeing the sector get hurt like this. This sector's been charmed since 1985. And if these stocks didn't have any fluff in them, then it wouldn't be so hard. Now, some of this market's just plain naked. Look, Tesla reported, all right, I liked everything they said. I'm not, you know, it's not like I hang out with Elon Musk, but I will tell you that what he's going to do with robots is revolutionary. You want to sell that stock, you're selling robots, you're selling full self-driving cars, you're selling the future, but go ahead and sell the future. I'm not a seller of the future, I'm a buyer of the future. Now, apparently, apparently, that's no longer good enough. It may be after that, like the super future. Let's hope that Intel, with magnificent surprise, top and bottom line, tonight can turn things around. What an amazing quarter from Lip Booth Tan, has been there for one year and one month. It's almost a miracle. It is a miracle. It's a miracle. It's a miracle. I'm looking at my staff as hell and it's a miracle. They're talking about a miracle too over there. All right, now, it can't cover the stench of enterprise software though. I don't think anything can cover the stench of enterprise software. Even like the absolute best kind of cologne or perfume, like Chanel, uh-uh. I think Chanel's still good, right? I mean, what else people use these days? All right, anyway, so how do you chants? My wife likes chants. So how do you protect your portfolio from these kinds of brutal declines? I got an idea. Why don't I own some stocks that have already been pulverized, already been gaffed, already been flayed, even as they represent very good companies? Why don't I own some health care? Let me give you some examples. Let's start with a solid company with a stock that sells at 11 times earnings. CVS. I'm all buying it for the Chappell Trust, but we held off because we have too many positions. CVS owns Aetna, which I think is a pretty good, not, well, it's not as maybe as good as United Health, but pretty darn good company. Reported a tremendous quarter earlier this week, but United Health is certainly in the ballpark. I think Aetna is good. CVS owns 8,932 drugstores. Not that long ago, there were three big drugstore change, Rite Aid, Walgreens and CVS. Rite Aid, buy. Walgreens got taken private. It's now pulling back from a huge number of stores. They may not even be a factor at this pace a few years from now, because they're private, though. We don't really know what it is. But I know something. CVS CEO David Joyner gave you a terrific quarter last time. I think it's only going to get better as the competition disappears. I prefer CVS to service now. Okay, I'm out there. Next time, a huge believer in Cardinal Health with a stock that's just been annihilated here. Is that any reason? I think a vicious rotation out of healthcare. Cardinal is down from 233 to 204, speed in the quarterly estimates repeatedly, shifts its model from being a pure middleman to being a drug and drug wholesaler to being a manager of services to its clients offer. Given the complexity of large independent medical organizations, Cardinal is filling a gap in management for some specialty chains that really don't know how to run their own business. I think there's maybe many more to come. High growth that now trades at less than 20 times earnings, to be Cardinal is a steal, although we've been buying for the travel trust and admittedly, I started early, some would say wrong. Okay, or how about a stock they talked about earlier in the week that's doing nothing, J&J, Johnson & Johnson, AAA balance sheet, one of only two, the other being Microsoft. J&J is the best pipeline of potential blockbusters of any pharmaceutical company, yet it sells at a little less than 20 times earnings. These are discounts. Finally, we're going to get to the one that you're going to buy tomorrow. United Health Group. Here's a company that just reported its first solid beaten race quarter in a very long time. Returning CEO Steve Hemsley, who turned UNH into a juggernaut before he retired in 2017, is back. And he's doing the same thing he did for years. The last time he was CEO, produced the best earnings and biggest upside surprises in the real. They're not time miracle. They're not made up. They're none of that jack stuff. Yet after all of that, after putting up the best managed care earnings I've seen in ages, stocks still sells for just 19 times earnings. Boy, this group is hated. The man is just getting started. The stock deserves to be much higher. Okay, here's a little clue. UNH, we'll do a little cinema verite here. I like the cinema verite. UNH is at 354. This stock was at $600 last April, April of 2025. You know why I like these stocks so much? Because if they come down further, you can just keep buying them hand over fist. Because you know what? When they go down, they actually get cheaper. You cannot say the same thing about the vast majority of the tech stocks, particularly software. Bottom line, I think these quality healthcare names help to balance out your portfolio right now. Given you something that they can't be savage by AI displacement that I can tell, good balance, something tells me you're going to need it. And the stench of software, I have to ask my executive Bruce, you got anything? Like a perfume? No, no perfume. All right. I tried. I tried to help the group. Don't have it. No perfume.

Speaker 8:
[09:45] All right.

Speaker 7:
[09:46] Let's go to Nick in Connecticut. Nick.

Speaker 8:
[09:49] Hey Jim, it's Nick from Connecticut. How are you doing?

Speaker 7:
[09:52] I'm doing well. How about you, Nick?

Speaker 8:
[09:54] A beautiful spring day here in Connecticut. I'm a long time listener and club member, and I picked your brain about Home Depot. I bought it a few months ago.

Speaker 7:
[10:03] Okay, so we understand. Home Depot is, when I did the Home Depot work for the trust, Home Depot is a template. Okay? It's an example. It's an analog. Home Depot is what you buy when you get rate cuts. It is time-honored. I have studied since 2007. Actually, I studied since it came to Elmont, Long Island in 1987. Go check me on that. This is the stock you own during when you get rate cuts. You don't buy Intel when you get rate cuts, although you should buy Intel. I can't believe I've been saying good things about Intel. I never told people to just buy Intel. All right, look, you got some balance in your portfolio for days like today. You don't want to get burned endlessly by software, enterprise or SaaS. All right, we got an action pack line up. I just want to always say that action pack, because all the other anchors say that. Action pack, action pack, it's very full show. What does that mean? This powerhouse chemical producer, Dow, is going to be on critical role in supply change around the world. I'm learning more about the road ahead for the company's outgoing CEO. He shares the Thermo Fisher. He tanked today at the top and bottom. I beat what's next going on. I'm going to go straight to the company's top risk. PG&E is trying to power up its growth outlook. I'm going to get an update right from the bankable CEO, Chock Full Show. I mean like huge. I mean, I can't believe it. Dynamic, Gigantic Show. Stay with Cramer.

Speaker 9:
[11:29] Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Cramer, hashtag Mad Mentions. Send Jim an e-mail to madmoneyatcnbc.com, or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

Speaker 1:
[11:52] What made you confident that you could do something that hadn't been done before? I have no fear of failure.

Speaker 2:
[11:58] Trailblazing women changing the game.

Speaker 3:
[12:01] One of my favorite pieces of advice, think about what your boss' boss needs.

Speaker 4:
[12:06] Leadership can look in many, many different forms.

Speaker 8:
[12:08] It really does come down to just trusting yourself.

Speaker 2:
[12:11] Life is short and you just got to think big to accomplish big things. Julia Borsten hosts CNBC Changemakers and Power Players. New episodes every Tuesday wherever you get your podcasts.

Speaker 7:
[12:28] When Iran shut down this trade of Hormuz, that was terrible for the global economy. We all know that, right? But it's also great for the price of oil and the price of petrol chemicals, for that matter. This has been tremendous for American chemical companies to get all the supplies they need domestically. And that's why Dow, the big chemical company, has gone from being the six worst performers in the SP 500 last year, to one of the top 20 this year, up nearly 65% for 2026. What have you done for me lately? How about go up? Now this morning, Dow reported a solid quarter, healthy revenue beat, a year with a smaller than expected loss, even though this company doesn't get formal guidance management. Congress called a commentary, I thought it was very upbeat. Unfortunately, maybe for today, it wasn't enough. The stock slipped 0.7% because I think when you're up nearly 65% for the year, that means expectations went skyward. So let's check in with Jim Fitterleaf, the chairman and outgoing CEO of Dow. We'll talk about that in a second. To get a better sense of the quarter, Mr. Fitterleaf, welcome back to Mad Money.

Speaker 10:
[13:22] Hey Jim, great to see you.

Speaker 7:
[13:24] So Jim, I think that...

Speaker 10:
[13:25] We had a great quarter.

Speaker 7:
[13:27] But tell people first about what the Middle East does to treat your chemicals, and then about how that impacted your quarter.

Speaker 10:
[13:38] Yeah, well, when the Strait of Hormuz shut down, 20% of global oil capacity was shut in. But about 50% of global ethylene and polyethylene production was impacted. And I say that because 40% of the naphtha that is used to run crackers in Asia and in Europe comes through the Straits of Hormuz. So that put a real tight supply and a high price on naphtha. That drove the Asian prices up. That created a pretty widespread to the US Gulf Coast gas prices and our gas prices in Canada and Argentina. And that really lifted margins quite a lot. So we saw 10 cent per pound increase in March. And we've got another 20 cents, 30 cents a pound in April and another 20 cents out there in May. So when you look at it, we haven't seen this kind of an uplift in prices for well more than a decade. This may be record territory for uplift in prices.

Speaker 7:
[14:41] Well, at the last time we've seen these prices down was at $60. Could we expect that to happen again?

Speaker 10:
[14:49] Yeah, I think the thing that people are looking at is what is the duration of the closure of the Straits. And everybody is tending to err on the side this is going to be over sooner rather than longer. But some scenario planning that we did said that even if the Straits were to reopen today, just to clear the logistics logjam, you get the crude carriers moving, the LNG carriers, the petrochemical ships moving again, is going to take 275 days, maybe more now because there have been more attacks and more damage in the Middle East since that scenario was put together. And so I think that leads us through 2026 and into 2027. And we said today, you know, our guide for second quarter is 12 billion of revenue and 2 billion of EBITDA with more upside than downside in that number. And that really puts us on a trajectory for something like a $6 billion year, which is well above anything anybody's got in the projections.

Speaker 7:
[15:51] Well, Jim, I think people have to understand world prices versus domestic. We know that natural gas price is set domestically and it's pretty darn low, lowest in the world. How does that impact these different grades of chemicals that you're talking about?

Speaker 10:
[16:10] Yeah, well, natural gas price is a global price. And obviously, our ability to move gas out of the United States is limited by LNG export capability. But as we produce more oil, which we can readily move into this market, we produce associated gas. And the US has the richest amount of natural gas liquids in that associated gas. And what that means is there's more ethane and propane available here. And the only alternative use for the ethane is for petrochemicals. So while oil prices have gone up, and that has really driven petrochemical price up, our ethane prices have essentially stayed flat. They've moved to maybe a penny. And you've seen that natural gas has also been relatively stable here. Now, that's going to move around the world because other destinations were very dependent on the straits. Japan was getting 90% of their LNG through the straits of Hormuz. So they're going to see a very different picture on LNG prices. All of this has a ripple effect. And I said today on the call, the last very large crude carriers that left the straits landed at refineries today. So when you think about that, that's two months. And so you've got to get empty ships back. We've got to clean out the straits and the Arabian Gulf. We've got to get empty ships back in. We've got to get product offloaded so that we can restart assets. And this is not going to be in a month or two. This is going to be several quarters before you're going to see things return to normal.

Speaker 7:
[17:48] People should readjust their numbers. That's amazing. I did not know that it was going to be that long. I'm one of those people who are rather uninformed. I just didn't know. I know there's a lot of damage. I didn't know it was that bad. Now, there's also some really big news here that we spoke last week about, and I'm a little surprised, but that's because I think I'm now going through the full tenure, people. Maybe it's a surprise that I'm still here. I don't know. But Jim, you've decided to retire. Now, is that to go see a lot of Royals games? I mean, what are you doing?

Speaker 10:
[18:19] Well, on July 1st, Karen Carter will step into the CEO role, and she's been the Chief Operating Officer for some time now. She's a 30-year Dow veteran, and she really has both hands on the wheel and running day-to-day activities. I'll move into the Executive Chair role, and I'll still chair the board, and I'll look after some strategic projects that I've been working on, like restructuring the Sadara arrangement to get that into a better structure with the Saudis, and give her some room to get herself in the CEO seat. Over the last six months, we've done a lot of succession planning, so we've actually moved all of Karen's team into their roles. And so when she starts on July 1, her team's all in place and ready to go. So Dow's always been long on leadership development, and trying to promote from within. It's a complex global industry. It takes a lot of knowledge to be able to adapt and be agile in these situations. And it really helps if you understand the company very deeply when you're at the top.

Speaker 7:
[19:30] Well, Jim, I remember the day you got the job, and you promised that you would try to leave the earth a better place. I thought that Path to Zero was one of the most clever things that I've ever seen in my life, and it can make the environment good. Are you satisfied that you made a dent on things?

Speaker 10:
[19:49] Yes, I am. I think we've got a shot to get a Plastics Treaty through still. It's not as got as much momentum as it had before. The Alberta Project, Path to Zero Project is still on track. It's going to start up in 2029, which is a little bit later, but that was moved out to line up more with the mid-cycle and allow us to adjust through this three-year down cycle that we've been through. But I would say Alberta is going to be a low-cost footprint. If we had Alberta running right now, it would be printing money. It'll do that when we started up in 2029. It'll be an asset just like in the Gulf Coast when we built Texas Nine Project. It'll be an asset that provides annuities every year to shareholders and they'll be glad that we did it.

Speaker 7:
[20:42] All right. Well, look, I will miss you. I look forward to seeing Karen and congratulations all you've accomplished. And Jim Fitterling, Chair and CEO of Dow. Great to see you, sir.

Speaker 10:
[20:54] Great to see you, Jim. Thanks for everything.

Speaker 7:
[20:56] Thank you. Mad Money is back.

Speaker 9:
[20:58] Get to the point. Coming up, Thermo Fisher's shares have been moving in the wrong direction after their report. And now Cramer is investigating what's happening with the CEO next.

Speaker 1:
[21:12] What made you confident that you could do something that hadn't been done before? I have no fear of failure.

Speaker 2:
[21:18] Trailblazing women changing the game.

Speaker 3:
[21:21] One of my favorite pieces of advice, think about what your boss's boss needs.

Speaker 4:
[21:26] Leadership can look in many, many different forms.

Speaker 5:
[21:28] It really does come down to just trusting yourself.

Speaker 2:
[21:30] Life is short and you just got to think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and Powerplayers. New episodes every Tuesday wherever you get your podcasts.

Speaker 7:
[21:49] All right, what just happened to the stock of Thermo Fisher Scientific, the arms dealer to the life sciences industry that I've liked for so long? This morning, Thermo Fisher reported what looked like a very solid set of numbers of modest revenue beat, paired with a healthy 19 cent earning speed off a $5.25 basis. Mad Money also raised their full year forecast substantially, but their guidance for the current quarter came in light. In response, the stock got obliterated today, plunging $47.28 or 9.2%, to the point where the stock's now down nearly 20%. So you get any buying opportunity, or is there something generally wrong with the quarter? We gotta find this out. Let's go straight to the source, Mark Casper, the straight shooting chairman, CEO of Thermo Fisher Scientific. Mr. Casper, welcome back to Mad Money.

Speaker 11:
[22:32] Jim, thanks so much for having me today. It's a pleasure to be with you.

Speaker 7:
[22:34] Well, I'm glad you're here, Mark. Look, we gotta get to the bottom of what happened today. I know that obviously some people didn't like the quarter, but I'm not gonna pretend it was a terrible quarter. It was at a top and bottom line B. Maybe organic growth, a little bit light, but not that bad. You raised it for your outlook. Several times in the actual conference school, you said, look, it's pretty much what everybody expected, but a little bit better. I don't understand what happened.

Speaker 11:
[22:59] Yeah, so Jim, when I think about the quarter and the outlook, actually our team, and I'm very grateful for our colleagues, for their intensity in the quarter and delivered a strong quarter. We did what we said we were gonna do, and it allowed us to be able to raise our outlook for the full year, both in terms of our revenue growth as well as our earnings growth. And, of course, we'd like to have had a different reaction to the stock, but it's our job to just make sure we deliver a great Q2. And with continued execution, I'm confident that the market will recognize that over time.

Speaker 7:
[23:34] Okay, I know that your organic growth was a little bit below what I'm used to from seeing from Thermo, just 1%. I mean, that's the lowest result in four quarters, but you've got a lot of things cooking that made me think that you're going to have higher organic growth as the year progresses.

Speaker 11:
[23:53] Yeah, I agree, Jim. So if I think about our end markets, Pharma and Biotech, which is our largest end market, about 60% of our revenue, actually perform very nicely, mid-single-digit growth and actually strengthening. Orders were meaningfully stronger than that, so that bodes well for the acceleration as the year progresses. We know that we have some headwinds in academic and government and some of the China-related headwinds. These are not new topics. They didn't get worse in the quarter and they played out actually as we thought, but the combination of that and then the simply we had less selling days in this particular quarter explains the phasing of the year. We actually have high conviction in our ability to deliver three to four percent organic growth for the year and the six to eight percent total revenue growth. So, you know, we're looking forward to Q2.

Speaker 7:
[24:37] For my perch at the Stock Exchange, I would say that if you had to have one plurality of a type of company that has rung the opening bell, it's going to be Biotech. But until they get that money, do they have enough money to buy a lot of equipment from Thermo Fisher?

Speaker 11:
[24:54] So one of the interesting things is as you know, there had been a period of time where funding to Biotech was weak and there was a period of time when even M&A activity of acquiring companies was weak. And that really, the sentiment changed about the midpoint of 2025. We heard it verbally, we started to see it in the numbers and now we're actually seeing in our results. If I actually look at the activity with Biotech customers, we're seeing funding flow, we're winning new authorizations in our clinical research work, which is very important to Biotech because that effectively is determining the efficacy of a medicine that they're trying to develop. And so it's really trending in a good direction. When I think about this year, we would anticipate that Biotech continues to strengthen based on the performance that we delivered in the last couple of quarters and the orders that we have won as well.

Speaker 7:
[25:42] How much does the FDA's attitude and also the head of the department matter? Because I think that the doctors I know and the companies I know that do work in drugs are a little gun shy. They feel like that perhaps the FDA does not want to approve very small set drugs and therefore some of the highest equipment that you would offer may not be needed.

Speaker 11:
[26:09] Yeah, so when I think about what we're seeing globally in pipelines, first of all, the understanding of biology, it's never been better and you've heard me say in the past that we live in the golden age of biology. It's really quite spectacular whether it's in cell therapies, whether it's in some of the work around peptides, and the different areas on oncology. It really is an exciting time. When I think about the environment, you're seeing lots of innovation in China in terms of medicines showing to be efficacious in people. And I know from my own interactions with the FDA that they have a real passion about making the environment better so that more drugs can get to patients more quickly. And we're going through that process. Not everything is perfectly smooth, but I'm very confident that we're moving in the right direction from a regulatory standpoint.

Speaker 7:
[26:55] I did not sense a level of confidence about government spending in China. 7.5% of your business, I would have thought by this point, China would be spending a lot of money on health care. But they're building a lot of power plants, they're spending a lot of money on AI and on cars that are self-driving. It just doesn't seem like they ever went back to spending a lot of money on health.

Speaker 11:
[27:18] So when you think about what's going on in China, I had the opportunity to spend a week there later in March. Saw a number of customers. I actually came away for the first time in a few years, much more positive about what the future is, not so much about the next quarter, because the pharma and biotech customers see the value of working with Western suppliers like us. Because they actually are competing for funding from the large pharma companies and they know if they work with a trusted partner like us, it puts them in a better position. So we're actually seeing pharma and biotech in China really picking up. And in the macro, the government has actually been very tight on spending in health care and diagnostics. So that really is the headwind, if you will, in China. And we'll navigate that to the best of our ability.

Speaker 7:
[28:03] I noticed you doing some work with NVIDIA. I think that when I was out there, Jensen Mom was telling me about the work with Eli Lilly. I keep thinking that if anyone's going to have a big breakthrough, it's going to be you with NVIDIA because it's not going to be big pharma, as much as I love big pharma. It has to come down to something revolutionary. Are you looking at some revolutionary areas that we had given up on because there just wasn't be able to comprehend all the data that's necessary?

Speaker 11:
[28:33] Yeah, so we're incredibly excited about the collaboration with NVIDIA. The way that I would think about it, we're the largest provider of the high-end cutting-edge instruments to unlock biological discovery, whether it's a mass spectrometer, whether it's an electron microscope, and making these more AI-enabled really accelerates the ability to generate and understand data. We're actually getting to the point, you're seeing autonomous labs, meaning that what that really means is that AI is driving which is the next experiment, and you're seeing new demand for actually instrumentation and reagents simply to run experiments to build biological models, so that our pharma customers ultimately have a better understanding of which medicines they should be pursuing and which molecules are likely to be successful. So really quite early, but very encouraging in terms of that collaboration from an AI perspective.

Speaker 7:
[29:26] I'm encouraged by talking with you. I think that the market has this wrong. I usually don't say that. I usually say that I'm sorry, but the market's right. I just did not think the reaction to your report today had anything to do with what your company is doing. It may have something to do with some big holders who are just tired or something, but made no sense. Anyway, I'm glad you came on and you gave them straight story and people should listen. This is a great American company. I want to thank Mark Casper, Chairman of Thermo Fisher Scientific for coming on. It was a hard day for the stock, but not for the company. Thank you, Mark.

Speaker 11:
[29:57] Thank you, Jim. Look forward to speaking soon.

Speaker 7:
[29:58] I hope so. Deadline is back after the break.

Speaker 9:
[30:03] Coming up, has PG&E got the juice to succeed in the current market? Cramer is going straight to the source to find out from the CEO next.

Speaker 7:
[30:22] It is a great time to be an electric utility, thanks to surging power demand from all these new data centers. But some of the utilities are not getting the respect that some of these great growth utilities are around the country. We gotta figure this thing out. Take PG&E, which is based in northern and central California. This morning, the company reported a sizable top and bottom line B, while reaffirming its full year forecast and also reiterating its long term earnings growth tariffs, 9% annual growth from 2027 to 2030. At the same time, they've been laying down lots of infrastructure to keep residential electric rates under control and be safe. I think PG&E is a great growth story, but the stock market doesn't seem to agree with me, as the stock actually got dinged today on these numbers. What is going on? Let's take a closer look at Patty Poppe, the CEO of PG&E Corp, to find out what's happening here. Ms. Poppe, welcome back to Mad Money.

Speaker 12:
[31:09] Hey Jim, great to be with you.

Speaker 7:
[31:10] Well, thank you, Patty. I'm trying to figure out there's a lot of misperceptions about your company. The first one is, in the deck, there's a radical page which talks about percent change in residential electricity prices by region. Middle Atlantic up 18, Eastern Atlantic up 14, South Atlantic 10. Oh, look at this, PG&E residential bundle minus 23? How are you able to do that?

Speaker 12:
[31:34] 23%.

Speaker 7:
[31:35] How are you able to do that?

Speaker 12:
[31:36] Yeah, we have reduced the rates for our most vulnerable cus... 23% in the last two years, 13% for everybody else. Jim, I don't know anybody else who's lowering prices in California, but PG&E is. And we're doing that by transforming our business and reducing operating costs, improving our financing, and growing demand. So it's a winning combination for customers in California. We're proud to serve.

Speaker 7:
[32:02] At the same time you're playing offense, I know that you're still making a lot of... A lot of your lines harden, so to speak, so that one day we will not be talking about wildfires. This will be the same as the rest of the country, right?

Speaker 12:
[32:15] That's correct. We've got over 1200 miles buried. And later this year, we'll be filing a plan for about another 5,000 miles. And combined with overhead hardening, that will over the next 10-year period reduce the risk on 76% of our high-risk lines. But more importantly, today on our call, I talked about our continuous monitoring, the use of technology to monitor our system and take monitoring and managing the grid from a defensive posture and a responsive posture to a preventive posture, preventing both ignitions but also outages. We've increased our reliability by 19% in the last year. We've increased our wildfire safety. We've reduced our rates. The transformation is on track at PG&E.

Speaker 7:
[33:01] Sometimes I think that maybe I just got to get the story up better. Because I see American electric power going up like it's a growth stock. Maybe it is a little semper a little bit. So these Texas utilities, but you offer the same kind of thing. You would offer good power to data centers. Of course, all the companies that are really in the data center business are within 100 miles of you.

Speaker 12:
[33:21] Yeah, we serve Silicon Valley proudly. Look, we announced today that we've increased into our final engineering, an additional 4.5 gigawatts of new demand. We have over 10 gigawatts, just pre-application phase. Word has gotten out. We do have power in California. Some people thought that we were out of power. I'm here to report. We added 33 gigawatts of capacity in California over the last five years. We've got 22 gigawatts more coming online in the next four years. There's an extraordinary availability of power in California and people are coming. And so that load growth we show every gigawatt we add will reduce rates by 1% or more. So we're going to be able to continue our load increase rate reducing strategy. Look, there's a single issue here in California and that's a wildfire liability reform. That issue is being taken up by our legislature this year. This is a single issue stock. We've got an incredible growth story to your point. Fifth year on track for our fifth year of double digit earnings growth and lowering rates, look, we have a winning combination. When we get this legislative liability issue resolved this year, we're going to be in great shape to really ride the increase.

Speaker 7:
[34:37] I think you're talking to the Amazon Web Services and you're talking to the Google Cloud partners and you got to be talking to Microsoft. Are they ready? How many are in there already and how many are just that you're laying the groundwork once this legislation is done?

Speaker 12:
[34:51] Yeah, look, we serve them today. We serve all of those customers today and they all have growth plans in the Bay Area and now extending into the Central Valley. So we've got, as I said, 4.5 gigawatts. Let me just give you some perspective on that. The city of San Jose today, which is our largest city that we serve, is a one gigawatt city. We've got four and a half gigawatts of capacity in final engineering to add to the grid. We have additional 10 gigawatts in the pre-application phase. So there's no doubt that we're adding significant, significant, we have significant opportunity to add to our denominator in the cents per kilowatt. You grow the kilowatts sold, you can reduce the rates. So we've been lowering rates and we can now add that new load. The grid is ready in California.

Speaker 7:
[35:42] I hope people listen to you because the math that you just run through somehow is not getting through to some different areas of our country. But those people are wrong. You know how to do math. Now Germany until March 2011 obtained one quarter of its electricity from nuclear energy using 17 reactors. They've closed them all. How come you didn't close Diablo Canyon?

Speaker 12:
[36:06] Well, a nod to Governor Gavin Newsom. He and the legislature here in California a couple years ago decided to extend the life of the Diablo Canyon nuclear plant. It was scheduled to be closed and it is now extended through 2030. And the NRC just gave us our 20-year license extension that would take us to 2045. So now it's up to the legislature again to determine if they'll take advantage of that 20-year license.

Speaker 7:
[36:31] Do you think that an outfit like a GE Vernova, which is doing the TVA, might come in and just say, you know what, if you want us, we'll build a nuke again here, now that everyone knows that nukes are the cleanest and safest?

Speaker 12:
[36:43] Yeah, I think a lot would have to change in California before we announce the building of a new nuclear plant. But the extension of an existing one feels like a good bet. And MIT just published a study showing that it'd save almost a billion dollars for customers to keep the plant open. So our team is so proud to serve. We love operating that plant. It's one of the safest operated nuclear plants in the world. And we are proud to be at service for California. So if the legislature so decides, we will be ready to go.

Speaker 7:
[37:12] Well, look, you're going to keep us posted on the legislature and what we need to hear about wildfires so that we can have you on so people realize this is a $25 stock, not a $17 stock. I totally agree. It's a single issue. You've got that right, but you know more than I do, and of course you do. That's Patty Poppins. She's the CEO of PG&A, Simple's PCG. Be patient, people. Thank you, Patty. Thank you, Jim Cramer. All right. Mad Money's back here for the break.

Speaker 9:
[37:38] Coming up, you've got questions, Cramer's got the answers. Get charged up for a fast fire lightning round next.

Speaker 7:
[38:03] We're playing the sound. And then the Lighting Round is over. Are you ready? Let's start with Jonas in Tennessee. Jonas.

Speaker 4:
[38:12] Hey Jim, I'd love to hear your take on this rare earth stock tied to Greenland that's showing great mining test results and will reduce our dependence on China. The stock is critical metals.

Speaker 7:
[38:25] No, look, it's a spec and I get that. But if you really want to be in the industry, you have to buy MP materials. They're for real. Let's go to Tom in Florida. Tom.

Speaker 13:
[38:34] Booyah, Jim. You got a lot of fans here at the Elks Lodge in Englewood, Florida and we want to know your thoughts on SoundHound AI.

Speaker 7:
[38:44] Let me tell you, I'll let you know a secret. The Iscambia Bay Elks Lodge is maybe the best in the country and Summit's number two. Wait, what was the stop? I'm sorry, I got a little... SoundHound. No, no, no. We don't want to be in SoundHound. We Elks cannot be in SoundHound. We're better than that and we like to get the charity, you and me, so we won't... That'll cut our amount of charity that we can get. Let's go to Quasi in Minnesota. Quasi.

Speaker 13:
[39:10] Hey Jim, this is Quasi from Minnesota.

Speaker 5:
[39:12] All right.

Speaker 13:
[39:12] How's it going?

Speaker 7:
[39:14] Not bad. How about you?

Speaker 5:
[39:16] Good.

Speaker 13:
[39:17] I'm calling about Dave, D-A-V.

Speaker 6:
[39:20] I've been holding the phone for a while.

Speaker 7:
[39:21] I like Dave the bar. I like Dave that is really packed to energy bars. More than I like Dave this kind of pseudo FinTech. We're going to sell FinTech and we're going to have some Dave bars when we get home after work. Let's go to Dwan in Connecticut. What is that accent?

Speaker 5:
[39:36] Dwan.

Speaker 7:
[39:37] How did I get that accent? Where did that come from? Dwan. Hey, what's up?

Speaker 5:
[39:44] Reading from Dwan in Connecticut.

Speaker 7:
[39:46] Okay.

Speaker 5:
[39:49] My stock is riving and I was wondering if you're warming up to it.

Speaker 7:
[39:53] That last quarter was good. That last quarter was good. I was surprised. My wife is thinking about buying a rivet. I don't know, but it looks like they're going to make it. And if they're going to make it, then the stock goes higher. By the way, I'm giving you a twofer. I like Tesla today. Those who don't like Tesla, they can come see me. And they're probably short Intel. Those same people are probably short Intel. Let's go to Isabel in Florida. Isabel.

Speaker 5:
[40:16] Hi, Jim. Thank you for taking the call.

Speaker 2:
[40:18] I love your show.

Speaker 7:
[40:19] Oh, thank you.

Speaker 5:
[40:20] I'm looking for some feedback on insulate.

Speaker 7:
[40:25] Insulate is the stock in the health care group. It's the most, it is the biggest decline of any stock in the health care group. And I looked at it today to see if I could recommend it. It's still too expensive because the GOP-1 threat. Existential. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

Speaker 9:
[40:45] The Lightning Round is sponsored by Charles Schwab. Coming up, a lot of stocks have gone parabolic this year, and if you own one, you better listen up. Kramer is giving you an important lesson. Next.

Speaker 13:
[41:03] Oh, yeah, Jim Cramer.

Speaker 4:
[41:04] I'm a first-time caller, a happy club member. I want to thank you for being the Peoples Champion of Investing. Thank you for helping me become a millionaire.

Speaker 7:
[41:28] You need to be able to recognize when you're flying too close to the sun. Today I looked at a list of stocks that have rallied more than 50% this month. Yes, just this month. And in almost every case, their charts had formed a parabola. What's a parabola? If you don't remember algebra class, this is when a stock goes practically straight up. No breaks. If you have a parabolic move on your hands in one of your stocks, you need to take profits. Because parabolas quite often lead to crashes. That's right, crashes, not sell-offs, crashes. I don't care if the underlying company is better than Intel or NVIDIA. When you have a stock that's up so much in such a short time, please at least sell enough to be able to recoup your cost basis so that you're playing with the house's money. Last night, I talked about 16 stocks that got away from me. Most of these are very good companies, which is why I keep kicking myself for missing the moves. But I can't say the same for some of the stocks that have more than doubled this month. Let's say, for example, you bought Megafortune Co., which is up over 2,000% this month. Yes, you heard me, 2,000% in April. Megafortune is a Hong Kong-based, internet of things solutions provider, whatever the heck that is. It's not a lottery ticket, even as it sure trades like one, or a slot machine, as there's actually one called Megafortune. Hey, give it a Gemini. Megafortune, a nearly $2 billion company, has $11 million in revenue. It's become a modern-day meme stock. It was at $6 and changed at the end of March. Now, it's at $140. Look, powerbomb moves like this are unsustainable. You simply have to take some profits or else. Next up, the other day, David Faber pointed out that Avis, the rental car company, has seen its stock soar from $100 to $700 in less than a month. Avis happened to be way overshorted at the lows, with many more shares sold short than actually existed. That's a recipe for the mother of all short squeezes, and we got it. But how about the longs? Did they do anything if they didn't sell Avis into strength? Well, they're fools. After peaking at about $800 a couple of days ago, the stock's now plunged to $229, and many who bought it in the parabola a few days ago have been wiped out. That's why you need to be disciplined and sell these things while they're still on fire. Don't buy the parabola. We get a lot of calls about stocks that have gone parabolic here. The other day, I got a call about LightWaveLogic. It develops polymers for networking equipment. Everybody does that these days. The stock's going from $4 to $13 in just over six weeks. This company has almost no revenues. It's up over 93% this month. Perfect candidate for selling half of your stock tomorrow morning. Then there's Poet, Navitas and Credo. These are all semiconductor networking stocks that have gone parabolic, each up around 100% this month. We profiled Poet earlier this week. Sounds interesting, but not 100% up. Interesting, it's also. If you're sitting on one of these thinking that you've made money, no, you haven't. You don't make money until you ring the register. These stocks are crying out to be sold. Will you listen to them? So promise me this. If you own a stock that's up more than 50% this month, do some selling tomorrow. Maybe take out your cost basis, maybe cut the position size in half. You don't know if Anthropo can come in and crush your stock like we saw today with ServiceNow. You don't know if Marvell Tech is about to move in or AMD, or maybe even applied optoelectronics or AsteroLabs, all now risk you value themselves. Maybe somewhere in the bowels of Google, there's someone who's working to take away your dinner. We do know this. One day, interest rates will go higher and the new year of Magical Investing, Magical Investing 2, which is where we are right now, will leave a lot of people crying. You don't want to be one of those people. Remember, bears make money, bulls make money, but hogs, they get slaughtered. I like to say there's always a bull market somewhere. I promise you I'll find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow.

Speaker 2:
[45:12] All opinions expressed by Jim Cramer on this podcast are only Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. You should not treat any opinion expressed by Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com/madmoneydisclaimer.

Speaker 1:
[45:44] What made you confident that you could do something that hadn't been done before? I have no fear of failure.

Speaker 2:
[45:51] Trailblazing women changing the game.

Speaker 3:
[45:53] One of my favorite pieces of advice, think about what your boss's boss needs.

Speaker 4:
[45:58] Leadership can look in many, many different forms.

Speaker 5:
[46:01] It really does come down to just trusting yourself.

Speaker 2:
[46:03] Life is short and you just got to think big to accomplish big things. Julia Boorstin hosts CNBC Changemakers and Powerplayers. New episodes every Tuesday wherever you get your podcasts.