Mad Money w/ Jim Cramer 11/2/26

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1:17Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Up in the way, friends. I'm just trying to save a little money. My job is not just to teach, but to also entertain. Call me 1-800-743-CNBC. Tweet me at Jim Cramer. Never forget what this market's really about. Oil, inflation, interest rates. Sure, there's some stocks that rallied that had nothing to do with that combination. But I've got to tell you, without any other quality, those are the ones that move things. The main story today was that oil plummeted overnight on hopes for a peaceful ending of the war, which sent interest rates lower and then caused a host of stocks to soar, at least initially in some cases.

2:01By the end of the day, we saw a fresh wave of tech selling. Sell, sell, sell. So the Dow finished up 214 points. Remember, there's not a lot of tech in the Dow. The S &P fell 0.51%. It's 1%, but the Nasdaq slid 1.07 % lower. It's getting exhausting, isn't it? Well, I like to tell the story of when I worked at Goldman Sachs, where I was often on the road. I wanted to know what the market was doing, so I called in. I used to ask for prices of a whole bunch of stocks. Oh, man, I was a real pain in the butt. But my colleagues over time wore me down by saying, look, the only thing you need is what the long bond was doing.

2:36The long bond meaning the 30-year treasury. And then I didn't really need any more information. They were dismissive of me. OK, I can deal with that. If the long bond was up in price and down in yield, then it was likely that stocks that I liked were asking about were higher that day. If it was down in price and up in yield, then the stocks I asked were probably lower. My colleagues, you know what? As dismissive as they were, they were right. Bonds lead stocks, not the other way around. Unfortunately, because of the negative nature of analysts and journalists, it's never as big a story when rates go lower as it is when rates go higher.

3:08The 30-year heading back toward 5 % after sojourn year 6 has never played up as much as the opposite story, which is the run from 5 to 6. But today, with long rates coming down hard for most of the day, we saw a whole bunch of stocks that rallied as they probably should have when they first reported, but may have been overlooked because rates were rallying when they reported. In other words, interest rates were going higher when they reported, and people didn't look at the stocks or sold them. Take Amazon. We were out of it last week when we told club members not to fret. Despite the negative response Friday, Amazon's quarter was actually a very good one.

3:41Sure, the company's still spending money on data centers in an aggressive way, but it had a massive beat with its operating income result, which just didn't flow through to the earnings per share number, because the latter was distorted by investments in different companies that Amazon had made. Now, I know many people are loathe to asterisk EPS to claim that the bottom line somehow doesn't matter, but this one actually resonated with me, and we urged people to buy, not sell. Sure enough, with a better rate backdrop today, we saw Amazon return to where it was in late September. OK, maybe it's a one-off.

4:09Most of tech didn't do that, but it's important to point out. Or how about you? You might have sold this one. We had WM on the old waste management. We had CEO Jim Fish just last week. Results were superb. One more great quarter. This one was, by the way, the final one before he retires the end of the year. That great quarter was met with a muted response. The whole darn thing was quite quizzical. But rates have gone up, and the market rendered a negative judgment. Today, with rates back under control, WM gained four points. That is the interest rates talking and the stock echoing that talk. If you can find a growth stock that's not a tech stock right now, you can really clean up.

4:46Right now, this market has crazy eyes for medical devices. That seems like a tech, but it's not traditional tech. Medtronic is worse. So GE healthcare. Boy, that thing was a... And don't forget, intuitive surgical. Abbott Labs played catch-up. The latter is so far behind the market, that could have some gas in the tank. Idex Labs put out a great set of results this morning. And the veterinary lab company led the S &P 500 with a magnificent gain of nearly 22 percent. That's my kind of tech. It's most pronounced, though, when you have a financial. Last week was a brutal week for Capital One, the credit card company, and a double whammy.

5:20Investors were worried about high oil prices at the pump, as well as credit delinquencies as rates went higher. But with rates going down, the whole thing reverses, and Capital One roars nearly 3 percent. Hey, wasn't a market's expenses quarter supposed to be weak? Well, you sure couldn't tell that from today's action, where it soared nearly nine points. J.P. Morgan's quarter was not appreciated until now, with the stock pushing up more than a percent today. The staples have been rallying endlessly, and they had still one more day of strength. But this time they went a little downscale. Papsico, previously the market had shunned this one because GOP-1s and the shading, I always wanted to use that word, S-E-T-I-N-G, shading of potato chips.

6:00There's been a lot of positive commentary, believe it or not, about liquor from the industry of late. Yes, the numbers actually have gotten better, particularly for beer. So once again, Constellation Brands, The Beer, Wine, and Spirits Company, gained another 4 % in an exaggerated move fueled by, again, rates. The growth retailers, oh man, do they do well when rates go lower? Walmart, Costco, whoa, why not? Rates lower, gasoline lower means more to spend inside their stores. The stocks of Dollar General and Dollar Tree roared two. Both travel stocks powered higher, led by Marriott, which had a tremendous set of numbers this morning.

6:36The cruise lines followed suit. They're always led by Royal Caribbean. Can you believe it? Yes. Almost every single one of these stocks, with the exception of Marriott and IDEX Labs, had no news at all associated with their stocks. Investors simply can value them higher with interest rates off the boil. Now, I know you at home probably think this is a completely ridiculous concept. How can these stocks be worth more or less just because oil went down and took rates down with it? The answer lies with the beating heart of trading. Frankly, I find it ridiculous, too. I'm like you. These exaggerated moves have nothing to do with.

7:11Here's what they are. They're just money sloshing around. A huge amount of money piling into smaller stocks at the same time. They aren't sustainable moves. But in a market where money keeps pouring out of tech, yet wants to stay in the market, The growth of these companies may be more substantial than anything coming out of tech. I will tell you that Procter & Gamble is staying power. I also think that Colgate has staying power. Now, these stocks are just proxies for growth as tech stocks continue to lose their luster. This morning, Marvell Technology decided to merge with Lumentum in a$115 billion deal that will put together a custom semiconductor business and a laser company and create one of the top suppliers to the data center.

7:51You know what? I think the deal's actually a good one. I'm not kidding. I thought it really made sense. It was intellectually rigorous. And I'm going to praise it later in the show. Right now, the market just despises this deal. I mean, like, holy cow. It hates Marvell, which is one of the great compound annual growth companies in this year. This stock has been down more than 10 percent for each of the last three trading days. That is abysmal. The betrackle of Oracle, a serial capital raiser, came out last week and told people that it would limit capital raises to just$20 billion for the next three and a half years.

8:24Wow, yes! But after Oracle's stock rallied on those comments, they came right back today and they filed to raise$20 billion, half from stocks, half from bonds. I call that poor form. Well, they said they had to do it. But clearly, investors didn't realize that it was going to be done right away. What's Oracle scared of? Do they expect lower prices for their stock and they want to beat the sellers to the punch? Great. And Intel went down again. People fret that tomorrow we will learn that they aren't just a victim of a weak PC market, but instead are getting their butt kicked in PCs by AMD. Now, after the close tonight, Apple reported they delivered its first quarter with new CEO John Ternus at the helm.

9:03They gave us the same consistent result we've come to expect from what is now once again the world's largest company. Apple delivered a record September quarter to cap off a record year, with a top and bottom line beat driven by strong iPhone and Mac sales. And by the way, you got it from me. Excellent sales performance in China. But you know what? There's still some things that people don't want. Remember, I told you this stock came in real hot. Investors were watching closely to see if there'd be a degradation in the company's gross margins, thanks to skyrocketing memory prices. Now, luckily, there was not.

9:33Gross margins came in well above expectations, though tariff refunds helped on that front. Now, Apple usually gives us some color on the outlook on its earnings call. So far, it looks like it's not that positive, but we'll see what the market has to say about it tomorrow. We're eager for some positive commentary about strong demand for the iPhone duo, but not too strong demand. I'm sure we'll get it and hope that there's no landmines for commentary on memory. But this was another great quarter for when it's easily the best performing large cap tech stock of 2026. Remember, though, what matters is not the previous quarter.

10:02It is the future. It is the guidance. And that is not, I've been telling club members, going to be as good as Apple shareholders want it to be. I have said over and over again, short term, I expect the stock to go down. Here's the bottom line. It seems that almost any growth stock can rally with interest rates plummeting because of lower oil prices. But growth stocks, well, away from tech, they're pretty darn good. And tech, they remain in purgatory. And if you stick with us, you will hear what can break the pattern of endless selling in what was once everyone's favorite sector. Let's go to Dimitri in California, please.

10:35Dimitri. Good afternoon, Jim. What's up? I have Bloom Energy. It was booming and booming and booming. It had a great quarter, and then it just tanked. What is your prediction on Bloom Energy? Okay, I'm going to divide this into two things. Bloom Energy, I think, is the future. It creates this tremendous energy without combustion. But the stock went up huge because of that, and now it is repealing a lot of that move. I did a big piece this weekend for club members about the repealing of the great quarters. I think that Bloom Energy is part of that great repeal. Let's go to Carl in Indiana. Carl.

11:19Good evening, Mr. Kramer. At 83 years old, I'm concerned that my stock has reached the proverbial plateau, and the only weight is down. My stock is Caterpillar. OK, Caterpillar did not raise estimates that people thought would be raised. And consequently, the stock has been going down. I think you should sell half tomorrow and then watch it. I am concerned like you are. And I think when you have someone, when I hear someone who says, look, all you can do is go down, I want you to cut some of it out. Does your age matter? You sound like a young guy. I don't care about that. I care about the fact that it's time to take something off the table and let the rest be run.

12:08And let's see where it goes. All right. It seems like any growth stock can rally if interest rates fall. Any growth stock except for a tech stock, that is. I'll make money tonight. What will it take for us to finally get a bottom in tech? I'm going to lay out the top four targets I'm watching. Then I keep saying you need to be finding positions outside of tech right now. I'm highlighting one sector that's been on the upswing lately and the names you could profit from it. And, hey, speaking of tech that's not, that's health care and not semis, Hinge Health reported a terrific quarter tonight. I'm going to get the latest with the CEO.

12:43So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

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14:45Tech stocks have been selling off hard for three straight weeks now. The Nasdaq 100 fell again today, and it's now nearly 11 % off its early October highs. Big question is, is the worst of the tech sell-off behind us, or is it safe to start shopping for deals at this point? Or look out below. And that's why tonight I want to return to a rubric that I put forward two weeks ago, reviewing our progress against the four tangible hurdles that I gave you that I'd like to see cleared before I can feel better about tech. The first thing that I said was that we wanted to see an improvement in the technical.

15:20That's the charts. They got to get better. And that simply hasn't happened at all. If you're looking at the charts of the broader indices, the Nasdaq Composite, Nasdaq 100, even key tech indices, subsector indices like the Philadelphia Semiconductor Index, the SOX, you see the same thing. An ugly double top. And you know what? A double top almost always leads to lower prices. Worse, we're starting to see even more negative signs in charts of some individual stocks. Specifically, we've seen a number of important stocks where the 50-day moving average has crossed below the 200-day moving average, and an event that's dramatically known as the death cross.

15:57Now, I have never told you to sell a stock just because you've seen this chart, but I do want to bring it out that we're seeing it in a Broadcom, G, Vinova, Alphabet. And this is very telling, okay? Very telling because there are a lot of people who live and die by the charts. Also, when it comes to tech novels for the market as a whole, the last thing that I'll note is that the market is not in the aggregate oversold, even as some tech stocks have been slaughtered. The indicator that I use, the S &P8 short-range oscillator from AlphaCold Market Edge, showed a reading of 1.1 % in Friday's close.

16:30That's basically neutral. Actually, a little more overbought than oversold. This is because this hasn't been a true market-wide sell-off. Instead, it's been more of a rotation, with the pain more or less isolated to tech stocks, As we saw once again today, as I told you at the top of the show, a lot of other stocks are reacting sensibly in relation to the bond market. Next, the second thing I said we needed to see was the hyperscaler earnings reports. I want to see how they're doing. So I said I wanted to see no degradation in the hyperscalers' huge tech spending plans. Now, we have indeed gotten most hyperscalers' earnings reports at this point, but for the most part, they've gone the wrong way.

17:04That is, if you're bullish with tech. The good news is that most of the large hyperscalers are not dialing back to capital spending agendas. That gives us some hope that the AI infrastructure theme is not, in fact, dead.

17:18In fact, as we explained on Friday night, the bad news is that the only hyperscalers that did dial back its CapEx plans, Microsoft, saw the best reaction from the market for doing so. It didn't go up, of course, but it went down the least, and I'll take that in this lousy market. Just today, we saw shares of Oracle get crushed. Oh, my God, this was horrible. Another obliteration, down 9%. or a brown 9 % if the company launched a new$20 billion fundraising effort,$10 billion in equity and$10 billion in bonds to help pay for its data center spending, which seems endless. Oracle indicated last week that this could be coming sometime in the next three and a half years, but the market clearly didn't expect it to come in the next three days.

18:00They know nothing! Clearly the market has taken a new stance that's skeptical of major capital spending plans, especially if a company has to issue stock or new debt to pay for them. And that is something that we'll need to overcome somehow if we want to text tech stocks to rally. Oracle was really horrible today. It really just caught a lot of people by surprise. The stock was up big on Friday. The third thing that I was looking for was simply a resolution to the midterm elections that we should get by Wednesday. While the consensus seems to be that a major success for the Democrats is a negative development for tech and the data center trade, I'm not sure it's as simple as that.

18:35First, the chance of Democrats making gains in Congress has already likely been factored in at this point because the polls and prediction markets have been indicating this outcome for several weeks now. Frankly, I think it's just getting past this election. I think that's going to be the positive, a positive development even for tech stocks, because politicians who are opposed to data center will at least start quieting down about the issue. Could we see one more leg lower with a big blue wave outcome? Maybe. And we could also see more pain if the midterms are followed by an escalator. escalation of the war in Iran, as many suspect, although it wasn't clear for the news today.

19:10I think we're near the end of the midterm election overhang. I say by Thursday. By Thursday, it should look clearer. Finally, I say that we need to see a successful Anthropic IPO. And while that's also unresolved, there's been some nice progress on this front. This is the best one of the four. Last Monday, the company released the S-1 filing, which contained the IPO perspectives. Then today, Anthropic released the updated S-1 with even more detail, including third quarter financial results. Those new numbers showed that revenue growth is still very strong, but slowing. Anthropics quarter over quarter revenue growth seems to have peaked in the second quarter at 144%, and it fell to 47 % in the third quarter.

19:45On the other hand, the company's profitability, at least on an adjusted basis, has been improving throughout this year. We did not, as I was hoping for, get any details on October numbers. There'll be plenty of time to cover more specifics from the Anthropics perspective. Don't worry, we're going to cover it wall to wall. For now, what you need to know is that the deal is on track. If all goes unless planned, roadshows should begin next week, and the IPO should price and begin trading in the third week of November. And really, we don't care how well or poorly Anthropic shares do after they price.

20:17We just want to see that there's enough demand for the IPO to happen. In less consequential news, we learned this weekend that Anthropic rival OpenAI is lowering its ambitions for a new private fundraising round after previously seeking to raise$30 billion at a$1.4 trillion valuation. It's now looking to find$20 billion, and it's cut its target valuation to$1.25 trillion. Still pretty great. Some people feel it's a bad sign when it comes to investors' demand for AI labs at this point, but Anthropic is the much more important test for this market. Here's the bottom line. A couple weeks ago, I put forward four things I'd like to see happen before I could feel more positive about tech stocks.

20:53None have gone our way thus far. So it's not surprising to me that the sector has remained under pressure. But if you're a tech optimist, the good news is we're approaching some potential turning points, and the Anthropic IPO keeps marching along. That's good. We need that deal to happen if we want tech to get back on track. Without it, expect many more days like the last few, where the most important tech stocks just cannot hold their gains. MedBunny is back after the break. Coming up, Kramer's walking the catwalk and revealing his favorite stocks in the fashion sector. Next.

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23:26Our Mad Money family is still missing Cliff Mason, my nephew, show's head writer for the past few decades, who left us far too early last month. Kind of miss everything about him, including the Cliffisms that he used to regularly work into the show's scripts that you probably heard and didn't know they were his. These were go-to phrases which helped give this show kind of a signature sound, which was unlike anything else in the otherwise anodymed financial media. One of his favorites was he used to talk about the Wall Street fashion show, which Cliff used to describe the fickle nature of investors.

24:03Who could be obsessed with one theme or some stock one day, then hate it the next day? It was a call from metaphor that regular viewers have likely heard me say probably hundreds of times. So tonight, we're going to pay some homage to Cliff and use one of his favorite phrases by bringing back the idea of the Wall Street fashion show, at least for an evening. But instead of talking about some specific theme that's in or out of favor, like the semiconductors, I'm going to use it for an actual fashion show. See, over the past few months, I've highlighted several fashion companies that I really like right now for various reasons.

24:35Many non-tech areas of the market are continuing to do well, including a lot of consumer stocks. Meanwhile, there are some other things happening, like a major pullback in interest rates that are quite helpful for consumer agents, as I talked about at the top of the show. As we approach the holiday gifting season, these seem like good opportunities. So let's run through my favorite stories in the group, the Wall Street fashion show style. First, for the past couple of years, Ralph Lauren has been my favorite stock in the apparel sector. Under CEO Patrice LeVay, who's really pretty amazing, the company has pulled away from the pack, specifically outperformed its peers, with its sales growing at a 13 % compound annual growth rate over the past five full fiscal years.

25:15Very hard to do. And it's adjusted earnings per share growing at a 57 % CAGR, C-A-G-E-R, compound annual growth rate, during that period. Since bottoming in late 2022, Ralph Lauren's shares have rallied an astonishing 380 % for the low, compared to roughly a 110 % gain for the S &P 500 during this period. Maybe it's not a Wall Street fashion show. Maybe it's just something that's ingrained in our society. Ralph Lauren's performance has been driven by consistent strength in the core North American market, but the company has seen excellent growth overseas as well, particularly in Asia. Always strong in men's fashion, the classic American brand has also found success in new-end markets recently, accessories, outerwear, or women's apparel.

25:54The company has focused on its DTC channels and cutting out brand dilutive wholesaler channels, which have really helped improve the gross margins. I think they've helped the brand, too. Ralph Lauren had a great quarter in early August, But after spiking in response to the quarter, stocks had a big pullback in late August and September, as all consumer names fell due to rising oil prices. It's since recovered, but you're basically getting that last quarter, which is really so good for free. Ralph Lauren reports again on Thursday morning. I'm hoping we get yet another strong result. I think we will.

26:25Also reporting on Thursday morning is Tapestry. That's the parent company of the red hot Coach brand, as well as the smaller Kate Spade brand, which management is attempting to revitalize so far, not going all that well. Now, I spoke with Tapestry CEO Joanne Cravoisera a couple of times this year. I really like the court story. I really do. Coach. Tapestry's found a niche in the accessible luxury lane with the brand's affordable handbags, particularly well-liked by younger female consumer recently. That said, Tapestry's last quarter in August was a major negative catalyst. TPR shares are down more than 20 % since that report.

26:58Quote didn't seem that bad. It was the guidance. It was just in line, just in line. And for a stock that had roughly quadrupled over the past two years, that wasn't good enough. I hope this Thursday's report can represent the start of a comeback for tapestry. Speaking of comebacks, have you seen the shares of Levi Strauss these past few weeks? When Levi's reported earnings in early October, the quarter was flawed. Mixed result with light sales, especially in the important DTC channel, with a bottom line beat because of mostly tariff refunds. The guide for the next quarter was viewed as disappointing.

27:31Levi's shares, which had already been declining throughout August and September, fell below$20 in the wake of that report. But Levi's CEO, Michelle Goss, came on Monday the night of that report and took ownership of some mistakes the company had made. What a great honest interview that was. Basically, they didn't have enough product available for the most desired styles, like low-rise women's bottoms, which are making a big comeback. But Levi's adjusted quickly, she said, and was in a good place going forward. That post-quarter dip turned out to be a tremendous buying opportunity, as Levi's shares have rallied over 20 % from their lows over the past three weeks to$23 now.

28:07You know what? The stock's still cheaper, around 14 times earnings, 2.8 % yield, significant buyback in place. I think this is a good option to play the broader strength in denim that we keep hearing about. Then there's two other comeback stories I really like in the fashion space. and I've been speaking about them, but not enough. First is VF Corp, and then a second one is Contour Brands. VF Corp is the parent company of the North Face, Vans, Timberland, among other brands, and has been struggling for a few years as the Vans brands languished. But we're seeing signs that Vans are starting to gain momentum again, including a strong showing in the recent Piper Sandler teen survey.

28:40VF Corp shares are up a quick 8 % since I recommended the stock about two weeks ago, thanks in large part to a strong quarter last Wednesday. Now, the Contour brand story is more about portfolio transformation. Currently, Contour owns the Wrangler and Leed Denim brands, as well as Helly Hansen Outdoor brand that it acquired last year. But it has announced a deal to sell the Leed brand for up to$1 billion, which should close shortly, and will be followed by a large accelerated buyback plan. Going forward, I like this combination of Wrangler to play the strength in denim and Helly Hansen, which is an unappreciated brand that should thrive as part of a larger company in Contour.

29:15KTB shares are still relatively cheap, about 15 times earnings, nearly 3 % yield sweetener. I think Kelly Hansen, by the way, I think their goods will propel the stock higher alone. Finally, how about a spec name in women's fashion that people keep talking about to me when you're going to talk about it? We keep talking about it. No one seems to listen. It's called Reformation, REF. I covered this recent IPO name at the end of September. It hadn't done well out of the gate, but I checked it out after one of our calls asked us to look at it. I like what I saw. Reformation has great growth. It's profitable and has a differentiated shopping experience with a technology kicker.

29:47Most importantly, some of the younger members of the Mad Money team assure me that the brand is cool. Ha! So I said I liked it, and as it turns out, I might have bottom-ticked the stock. It's gained over 31 % in October. Maybe it's better to be lucky than good. So there it is! That's our Wall Street fashion show. Ralph Lauren, Capistry, Levi's, VF Corp, Contra Brands, and Reformation are some of the fashion stocks that I think look best right now. Cliff certainly would have written this segment better. He would have written everything better. But we hope he would have liked this one. Let's take some calls.

30:19Let's go to Rick in Wisconsin. Rick. Hi, Jim. Thanks for taking my call. Absolutely, Rick. What's going on? I need your advice on a stock that's gone down for the past five years, over 70%. Although I just bought it two years ago, and I bought more on the way down, It seems to have turned the corner lately. It's been up for about the last month. So what do I do now with a stock in this situation? The stock I'm talking about is Nike. I think the stock does act better. I know that it's washed out. That's what I would say. It's down 40%. Most of the analysts have turned in already. I don't know how much risk there's left in it.

30:59Maybe for it to go back to 34, 35 on a miss, maybe it goes up to 45 on a make, does yield 4%. I think, you know what? At this point, washed out. I'm not going to bet against it. I'd rather unbelievably bet with it. Let's go to Mark in my home state of New Jersey. Mark. Booyah, Jim. I go back to the old Kramer Kudlow days. And you have been a great mentor and teacher to me. I have all your books. Oh, thank you, buddy. Club member. You've come along. You've helped my retirement tremendously. Oh, that's so nice. It really is. That's very nice. Thank you. Thank you so much. I've got a question for you on Disney.

31:38I didn't bail on it when you advised me to a few months ago, and I should have. You see any glimmer of hope with that stock? I do. I think this Josh DeMauro is doing very well. I think that the cruise line business could be good. I think a lot of people, if you've got gasoline down, I think you'd see some better numbers at the club. I like DeMauro. I think he's steady. I think he's good. I think he's doing a great job, and I think you're going to make money with the stock of the Walt Disney Company. All right, if you're looking for opportunities outside of tech, I think consumer and retail stocks are a good place to go right now.

32:11Watch what I made my head, including my exclusive with Hinge Health. Then it was another big day for deals in this market. I'm thinking deeper into what's at stake in today's merger analysis. Why the market seems less than infused with one of them, to say the least. And the order calls rapid fire in tonight's edition of The Lightning Round. So stay with Kramer.

32:36After the bell, we got a strong beat and raise from Hinge Health. That's a digital health platform that's using technology to help people get physical therapy, manage pain. Members receive personalized exercises, movement feedback, access to clinicians through an app with an in-person network called Hinge Select when face-to-face treatment is needed. Now, this talk has already had an extraordinary run, more than tripling from its IPO price, which we liked very much last year, gained more than 150 % over the past six months. Today's results, solid. Revenue in the third quarter jumped 52 % to$235 million, beating expectations.

33:08Earnings came in 13 cents ahead of estimates. Management also delivered better-than-expected fourth-quarter guidance and raises for your sales and profit forecasts. So can the stock keep running with those fantastic numbers? Let's check in with Daniel Perez, Hinge Health's co-founder and CEO, to learn more about the quarter. Mr. Perez, welcome back to May of Money. Thanks for having me, Jim. Okay, so let's talk about what I thought is really incredible, which is something I usually don't start with gross margins, but it's very rare that I see so many more people come into a system, and yet gross margins went up very big.

33:40How can management get a better experience at lower costs? Well, look, we've had this past quarter insatiable demand from our clients, insatiable demand from members to sign up for our program, and we've been able to keep costs down. But we've closed more clients this year than all of last year combined. And we've also had more clients switch to us from competitors this year than probably every year combined in our history. So it's just been a phenomenal sales season. We're also having more people enrolled than ever before. And because technology delivers such a big portion of our care, as our client base has grown and our member base has grown, our costs have not grown anywhere near as large.

34:21Now, you did a fantastic study since I've seen you last, which is a study of over 200 ,000 participants, nearly 1 ,000 employers, where you get a return on investment for the employers and a savings for individuals that I find extraordinary. Maybe you can flush them out for us. Yes. Look, we give people better access in our core product of physical therapy, guiding people through their exercises right from the comfort of their own home. They could speak to a physical therapist whenever they want, so we could escalate them to a physical therapist, even to doctors when needed. and refer them for in-person care.

34:53And when we make access to conservative management care for back joint and muscle pain more convenient, more accessible, lower costs, and more effective, downstream healthcare costs go down. And so we're able to demonstrate a very strong ROI that is a reduction in downstream healthcare spend, predominantly driven by lower utilization of elective surgeries, fewer imaging such as MRIs, fewer joint injections, and that's driving really strong outcomes for our members, but also lower costs for our customers. You made an acquisition, the cylinder acquisition, which takes you beyond muscles and joints to digestive health, again, using some of modern technology, including your iPhone, to do things I never thought possible.

35:38Look, our overall vision at Hinch Health is to use technology to scale and automate care delivery. Healthcare costs continue to go up. It's like every year, Jim, it's like Groundhog Day. hey, guess what? Healthcare costs are going up again. Hey, guess what? It's going up twice the rate of inflation or going up twice as fast as salaries are going up. And we've just accepted as sure as the sun will come up in the morning, healthcare costs will go up. And we're going to lower healthcare costs. It's going to require technology-driven automation. And that's what we're doing at Hinch Health. We started in physical therapy and we've demonstrated we could automate about 95 % of human clinician hours associated with aspects of outpatient physical therapy.

36:17we've since expanded into migraine and we've had a phenomenal uptake from our client base for migraine and now we're moving into gastrointestinal care as well and we want to continue to apply technology both software and connected hardware to automate care delivery so we could deliver great outcomes a great patient experience and reduce costs all three aspects of the triple aim and that's what will ensure that we're successful long term you did but we don't automate care we won't lower costs i agree now you did mention migraine that is my area i used to be the spokesperson from the American Migraine Foundation.

36:47I checked in with what you're offering, including the ENSO, the wearable pain relief technology, and didn't see a lot of, let's say, didn't see a lot of clinician, didn't see a lot of peer papers on it. Not sure how you know that it necessarily does a good job for patients. Great question. We actually just received FDA clearance for a migraine, ENSO for migraine product in April. ENSOs are electrical nerve stimulation device that helps quiet down the nerves that are overactive in migraine. We just launched it in late spring, early summer, and we've had a phenomenal uptake from enterprise customers.

37:24We now have over 800 enterprise customers who are making it available to their employees and the members of their plan. About 10 million U.S. adults will have access to our migraine care program from one-one, and we have really, really strong initial results, demonstrated about a 23 % reduction in monthly migraine days. And for those who do have migraine using our product. We're reducing the length of a given migraine attack by about 28%. We're actually going to be submitting for publication this quarter, and we're aiming to have our published results out in 2027. So we're really excited about that.

37:56I think that would be terrific to see. I also wanted to know, let's say someone is interested in taking NERTEK, which is a pill that gets rid of my migraines after migraine about 7, 8, 10 minutes, or Amovic, a shot that I take once a month that also precludes migraine. Can you If you're in the program, the migraine program, and you know about these, can you be referred to get these products? Absolutely. And so there are really good drugs out there for migraine. They don't come without side effects. They can be also very, very expensive. Our aim is to give people another tool in their arsenal such that they have another non-pharmacological option for their migraine relief.

38:33But it's not in lieu of any sort of pharmacy option that they might have. But we hope to give people an option that doesn't come with the side effects of a lot of these pharmaceutical drugs. And it's but it's certainly certainly something that could complement it. And, yes, our care team is able to help people manage their drugs. And we're actually going to be adding additional neurologists to our care team as well in the coming months so that we could even prescribe drugs to Novo and help people manage their medications, potentially even switching to lower. Last thing. Has Dr. Oz checked in with you?

39:04I mean, you could say the system so much more. You're doing it the right way by going to corporations, by going to individuals. But I keep thinking that if they knew your method, we would finally get some health care costs under control. You know, we are very active with employer-sponsored health plans for both self-insured employers, fully insured employers, Medicare Advantage. We haven't been as active with original Medicare just yet. I know there's a lot going on in Washington. We've been very busy on the private sector, and I don't make many trips to Washington, D.C. I think the private sector is the edge in D.C., but that's just me personally.

39:41That's Daniel Perez, the co-founder and CEO of Hinchel with another unbelievable quarter. We've liked your stock since 30, and it was a sleeper. Sometimes that's the best way to do it. Thank you so much, Daniel. Good to see you. Thank you, Jim. We have money. It's back here for the break. Coming up, he's the fastest mind on Wall Street, so we're putting him to the test with your help. Bring on the lightning round next.

40:12It is time. It's over the lightning round.

40:25Let's start with Randy in Texas. Randy. Hey, Jim. I've watched you for years, and we really appreciate all you do and all your body. Oh, thank you, Andy. Hey, my family and I have both worked and invested in Johnson & Johnson for about 30 years, and always been happy with the company. How do you perceive that company doing in the next day, next year or two, as compared to some of the other? I think this walking duotto is a fantastic CEO. I see many more good things on the horizon, including when they get rid of the commodity-based synthetic joints. stuff that I don't want to own because I think it's too low multiple.

41:05Orthopedics, goodbye. J &J, hello. Own the stock. Robbie in California. Robbie. Jimbo, thanks for taking my call. Let's make it quick and simple. I got a needle cloud here down 40%. It's the best in the class. They just secured a$3.5 billion loan with Citibank. Average analyst targets 243. Let's talk about Nibius. I think the analysts are wrong. I think that that's the kind of company that if you see NVIDIA going down like this, I can only tell you what, that Nebius should be going down twice as fast. We have high-quality tech stocks that go down every single day. And Nebius is not high-quality.

41:47Sorry, not everything can be high-quality. Not everything. Let's go to Sam in Massachusetts. Sam. Jim, listen, KLA Corp has got a 10-year tagger of 30%. The stock's recently been down, but what's interesting is that it specializes in optical wafer equipment, which is, you know, everyone knows there's a bull market going on in optical, and I think that should continue to fuel growth for KLA. Yeah, but you know what? What we had was we didn't get the big guide-ups from these companies. Now, my favorite is Lammer Surge. That's a 23 times earnings. I'm not going to stick my head in that lion's den.

42:20These stocks are in free fall. We don't buy free fall. We don't. Do we look like butcher blocks? Do I look like a butcher block? I don't see myself as a butcher block. The stocks will tell us. They will tell us when they're going to stop going down, and I will tell you. It's something that I've done for 45 years, and the stocks have not bottomed yet. Let's go to Jack in Ohio. Jack. Hi, Jim. Big boo out of you and your staff for all you do. Thank you. The stock I'm calling about today, I've had for a while. I've got a significant position. I've taken a big hit, but now it's on the rebound. My question is, and by the way, I'm on the house's money.

42:58I've sold my cost basis out on there. Okay. We're talking about how I'm at aerospace. Oh, I like how my stats come down a great deal, and the numbers continue to be good. I think you have a good one. It's not technology stock. It just happens to be a little bit higher moldable, but I like it because it's just been eviscerated. Let's go to Ron in Maryland. Ron. Hi, Jim. This is Ron from Maryland. And first of all, me and my wife love you. I've done extensive research into Western Digital and bought a ton of it, and I mean a ton, and I plan to hold it for two to three years. First of all, how do you feel about Western Digital, and did I make the right move?

43:36Well, look, I've known Western Digital for many, many years. I think it's a good company, but I think Micron's a better company. Micron's got a lot more technology. I think that's the one I'd be in. But I hear you. Your stock is going from$799 to$338. I think it's already been cut in half. It can still fall a little. I like Micron more, though. And that, ladies and gentlemen, conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, a pair of mergers has Kramer cheering on this Monday. He's breaking them down next.

44:18The start of a fabulous new merger and the finish line of another great one. That's how I felt when I sat back this morning to ponder Marvell Technologies' monster$115 billion deal for Lumentum, as well as the long-awaited closing of Kimberly Clark's acquisition of Kenview, the former consumer health business of Johnson & Johnson. You might ask how I can celebrate a tech deal that produces hideous declines for the acquirement, and even worse, the target, as was the case with the Marvell Lumentum tie-up. But I would point out that Marvell CEO Matt Murphy has done five major takeovers since taking the helm at the company 10 years ago.

44:54You've made money with Marvell every time. Here's the merger magic, and I think this one, which combines two companies to be the connective tissue in the data center, makes so much sense, so logical, that it's only a matter of time before you see the gains. Oh, but this market is short on time, and this particular deal, potentially one of the 10 largest mergers in history, might take 18 months to complete, or even longer. So you could suffer from what we call merger purgatory. In that sense, if you can't stomach that idea, it may be a candidate to sell Marvell and then buy it back later. Now, look, I'm willing to recommend that.

45:24You know I don't believe in trading. But I do believe that a company that combines custom semiconductors with fiber optic lasers to move data around in a fast and cooler fashion than copper is a company that could be worth double Marvell's current value over the long haul. Hey, look, never forget that Tenson Wong, the CEO of NVIDIA, anointed Marvell as the next trillion dollar company, and Matt intends to fulfill that promise. Kimberly Clark, a heck of a lot easier to explain. And in many ways, it's better because it's so simple. You have a storied tissue and diaper company that stopped growing a long, long time ago.

45:56It's been more abundant. No one seemed to care. Then Michael Shue came in, became CEO in 2019, and began to fix things up for growth. But the portfolio simply wasn't special enough to give you long-term quality growth. So in 2025, he decided to purchase Kenview, which was left with a bit of a cat's and dog's portfolio after being spun out by J &J, which wanted to concentrate on high-growth pharmaceuticals. They have a higher PE multiple. Now, this can be a big price tag,$48.7 billion. But the brands, they're all slower growing household brands. But, you know, a Band-Aid, Tylenol, Neutrogena, Listerine, they can be quickly integrated into Kimberly's worldwide portfolio.

46:31The transaction should immediately catalyze growth, especially in the club and e-commerce channels where Kenview is particularly weak. There will also be a huge cost takeout. I think they got a real bargain, a steal. Because RFK Jr., the Secretary of Health and Human Services, had been making these claims about Tylenol during pregnancy, increasing the risk of autism. There's never been a causal link established about that. But the claim brought Kenview's stock down to where I think Kimberly got a momentary bargain, and it pounced. We own Kimberly Carr for the Travel Trust, which you can follow by joining the CBC Investing Club.

47:04It's got a bountiful 4.7 % yield. Mike told us this morning on Squawk on the Street that the dividend will be preserved, while the company can also quickly pay down debt that it incurred for the Kenview takeover. I like that. Look, obviously, the Marvell-Lumentum tie-up is a much bigger deal. You will have to wait a very long time to see the results play out. But I bet it will soar when the two come together and deal closes, because it represents the future of the data center, and they're not going away. I think the stocks went down because the market has no patience for all the months needed to close the transaction.

47:33And, of course, the market hates semiconductors. I get that. Nevertheless, there will come a time when this deal will look like all the other deals that Matt Murphy has done. And this$150 billion company will be well on its way to a trillion-dollar valuation. Yeah, the one that Jensen-Wong predicted. Not all that long ago. I like to say there's always a bull market somewhere. I promise you I'll find it just for you. I'm Drew Kramer. I'll see you tomorrow. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another medium.

48:07You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer'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 forward slash madmoneydisclaimer. at Jared Jewelers we know it's about more than fine jewelry it's the moment they open the box that smile they can't hide knowing you chose exactly right because the right gift can bring a lifetime of meaning a promise, a milestone, a memory in the making make every moment unforgettable find great gifts starting at$250 Jared, make the holiday last forever shop Jared Jewelers Thank you.