Mad Money w/ Jim Cramer 11/3/26

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1:18Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people are my friends. I'm just trying to make a little bit of money here. My job is not just to entertain, but to put it all in context. So call me at 1-800-743-CNBC or tweet me at Jim Cramer. Tech is trying to make a stand here. It's just not the tech that's led us for the last few years. We've been conditioned to think that tech will be led by an Alphabet or an Amazon, an NVIDIA, a Meta, a Microsoft. But those have almost been millstones around investors' neck. I keep hearing about Megacat Meltdown. Kind of true. Today, though, we saw a lot of second-tier tech stocks make moves, make stands, that while still connected to the data center, were not the same old, same old, that have not been able to maintain rallies and have stopped giving investors good performance.

2:07The averages reflect the shift with the Dow down 197 points, that's beginning 0.36%, but the Nasdaq jumping 0.83%. It was a day that made you feel that if you just stick with tech, you can ride it all the way back to higher ground. That's all well and good, except it's been that way every time since most of these stocks peaked five or six months ago. Those of us who still like tech and I know, dwindling number, took heart that both AMD and Arista Networks reported very strong quarters after the session tonight. Lisa Su, the CEO of AMD, will be on a walk on the street tomorrow. Oh, I bet she has a terrific story to tell.

2:43Jayshree Yolales, the CEO of Arista Networks, said terrific things about the data center networking on tonight's call. I want to think that these are not one-offs and that just because they aren't mega caps, they do still matter. I want to believe that the non-magnificent tech can lead us. But I also know that there are concerns we must be aware of before we get too cocky about one session set of positives. First, we know that there are exit polls taken all over the country. And a lot of hedge funds know how these exit polls go. So someone said the top of this tech market occurred when we started to realize that data center builders had managed to alienate most of the voters around the country.

3:23I think that what some exit polls must be saying this evening is that the data center neutral politicians are ahead. And therefore, it may not be the shutdown that so many think. Oh, that would be used to the bedraggled data center story. I think and have thought that data centers are fungible. If you don't want them in your state or your county, they'll go to another state or another county where they can be used as a honeypot. There will be canceled projects for sure. And even though these stocks have come down a great deal, over 50 percent in some cases, I still don't think that the stocks of neoclouds like Iren or Nebius reflect that yet.

3:59Although it is front and center when it comes to the trajectory of the bellwether core week. The old data center builders looking for subsidies came in cavalierly and became bad corporate citizens. in some cases raising electricity, and in some cases spoiling local water. These days, data center builders come to town early, not to get subsidies, but instead to give gifts to the local community. They find out what towns need, and they help take care of the local interests that make a town click. All data centers now can be closed loops so they don't impact the water. Their owners can subsidize electric bills, bringing them down for other ratepayers.

4:33They bring jobs to places that haven't had new jobs in years. There are lots of towns that actually need those subsidies. I am not saying this isn't an issue. I am saying that enough towns need the subsidies that there'll be plenty of siting still. I just don't know what will happen to the ones that are already cited, but are in states that will now want to ban them starting tomorrow. Now, that won't hurt Amazon because Amazon can buy its way into new towns without a problem. But it will hurt Iran or Nebius or Corleone without anything to fall back on. And they'll be scrambling something that's not reflected in the stocks of at least the first two.

5:07I do think that no matter what, to have an election behind us is terrific news for a group that collectively has been a The House of Pay for months now. Other than the data center, the election may not be all that important to the vast majority of companies. Gridlock's been good for the market, and it looks like that's exactly what's going to occur. If the Justice Department individually tries to block winning Democrats from taking their seats, I'm sorry to say that the market really won't care. Whatever ties up the government is good for stocks. Then there was the war. Our market was indecisively open today because we had learned of a limited U.S.

5:41strike against an Iranian island facility near the Strait of Ramoos. We also learned this was one of many limited strikes recently, which made me think, and I don't know about you, that are multiple strikes still limited? The market is saying today that you can take the war off the table. That's been a wrong judgment for ages, hasn't it? But the market frequently misjudges President Trump's musings about the war and routinely gets the next actions of the Iranians wrong, too. But when the president said that the U.S. would cut off aid to Israel by the end of the year, that was perceived as a sign that the war may be over sooner than you think.

6:15Call it a mixed judgment. The negative reaction to Apple's earnings weighed on the market, more on that later. And there were bears mauling Palantir as well. But tech buyers were buoyed by how well a$10 billion block of Oracle shares replaced. Oracle, which had promised that this is the last fundraise for three and a half years, sold nearly two-thirds of the shares to 10 large shareholders, and the deal priced at$116. Then, today, the stock flew to 126, up 6%, as these fund managers believed Oracle's word. I think the Oracle block trade gave lots of investors hope that we have found a level where investors at last can come in to buy at least tech without as much risk as a few weeks or months ago.

6:55So then the big question is going to be tomorrow. have the tech stocks come down enough that somehow they are okay to be bought? I heard that all day. But I've also heard it every day for the last three months. It is a bit mind-numbing. Perhaps the market is simply shifting in. Maybe buyers will be okay if they're not buying tech stocks that are issuing huge amounts of debt or equity. Has there been enough pain, though? That's what you have to ask yourself before you know we've got a real bottom. I thought Friday's session caused a huge amount of despair. Sell, sell, sell! But the one thing really lacking is what I call a crescendo.

7:32What's a crescendo? It's something that the late, great Mark Haynes, terrific anchor here, and I used to talk about all the time. We noticed a pattern time and again where the market or some powerful group in the market will be going down, down, down for weeks to an end, with occasional hopeful sessions interspersed, maybe like today. Those optimistic days will be followed by days like last Friday, where there's just such a revolting session from start to finish that it just makes you heart sick. What would cause that pattern to end? Well, usually it's not a whimper, but a bang, where the stock market gets crushed in the morning and pulverized midday before then rallying on big volume to finish higher at the end.

8:09A down opening and an up close on big volume signified that the sellers were at last done and the bottom would be put in. Perhaps this time there will be no crescendo. Maybe yesterday, when the NASDAQ 100 finished in correction territory for the first time, that signaled bottom protect. Maybe we can rally on the backs of the non-megas like AMD and Arista and just leave behind those big cap techs that need to raise more and more money just to stay in the data center race. Here's the bottom line. I like that the election will soon be behind us. That's a positive. I think that's going to end up being good for the data center stocks no matter who wins.

8:45I would like to wait for the crescendo before I commit too much money back to tech because so many other areas are working, including an area that I'm going to talk about later in the show. But did tech really bottom? The trust owns plenty of stocks that will profit from the very rare crescent of this bottom if we don't get a true move up. One thing's for certain. It sure would be a breath of fresh air if we could just rally without that magnificent seven for once. Rewarding companies with great balance sheets and terrific earnings is a heck of a lot better than betting on companies that are bleeding with red ink and companies that forgot how important it is to make more money than you spend.

9:20Let's go to Evan in New Jersey. Evan. Hi, Jim. I was hoping to hear your thoughts on Roblox after the earnings report. Too disappointing. You know, we've got so many companies that reported really good numbers and stocks are down gigantically. Let's focus on those. Those are the ones that I feel have a little more immunity when things go bad and go up when things go good. And that's what we're looking for right now. History says a crescendo in tech is worth waiting for. so it would be okay to wait. On May Money Tonight, as investors are rotating out of tech, I'm digging into why the life sciences sector could benefit.

9:58Don't miss my analysis. Then I'm sitting down with the CEO of CrowdStrike to discuss how the company is combating cybersecurity threats on a global scale. Plus, with full and full swing, I'm getting the latest on outdoor apparel with the CEO of Columbia Sportswear to see if their brands can climb to new heights. So stick with Crane.

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11:07Seriously, make work less work with Gemini on Google Cloud. Check response, subscription required. It's the holiday season at House of Burl, which means that it's the perfect moment to review some key rules. Rule number five, more style means more celebration. Number four, buy gifts, but remember to treat yourself too. Number three, there is no dress code, but always leave them talking. Number two, show off different outfits. No party remains unattended. And rule number one, have it all without spending it all. Happy holidays from House of Burl, Burlington. Still waiting in line? Again? That's time you'll never get back.

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12:22The tech sector and the AI infrastructure trade, well, they're decidedly out of favor right now. NASDAQ 100 entering correction territory yesterday. But as investors have rotated out of tech, they seem very eager to buy almost any other type of stock that can offer outsized growth. All right, today we had one of those sessions that actually was pro-tech, but those have mostly been one or two day wonders since the peak in June earlier this year. So investors have been looking for growth in other haunts. One group that's been the beneficiary of this rotation out of tech is a small number of companies that we call the arms dealers to the life sciences industry.

12:57These are suppliers to biotech and pharmaceutical companies, as well as research laboratories, other companies doing life science research. They sell everything from high priced, extremely complex equipment used in the drug development process to consumables, like test tubes and types of basic chemicals used in everyday lab procedures. Now, we love to see this as we've long admired these particular companies, but many of them had what we'll call a few lost years in the wake of the COVID-19 pandemic. Now, that was due in part to inventory gluts. It took a long time to get through, as well as a few lean years for the IPO market, which matters, matters because that's where many biotechs get their funding, IPOs, funding that later gets spent on these suppliers.

13:36Now, just as that was starting to end, the industry had a new challenge from the arrival of the Trump administration, which many thought would be a negative development for the new drug approval process. That turned out not to be the case. The administration seems very pro-new drug. And investors seem to have gotten past the negativity of that and are eagerly buying these companies. So let's tick down a few of our favorite names in this space so you have them. To start, we're going to highlight Agilent Technologies. That's letter A, which provides a full range of instruments, software, services, and expertise to customers of life sciences, diagnostics, and even some other commercial markets.

14:08Adiline's shares have been absolutely on fire. Just incredible. Up 50 % over the past six months, including 29 % gains since we last spoke to the company's fantastic CEO, Poreg McDonald, late May. During that conversation, McDonald told us that the company was seeing a great benefit from the reshoring of manufacturing to the U.S., especially for drug manufacturing. as well as building strength in the biotech and pharmaceutical industries. Now, here's a good example, GLP-1, diabetes and weight loss drugs, where Agilent helps with both the production and the testing of these medications. And while it's perhaps not why investors are buying the stock right now, we should also note that Agilent has exposure to the AI build-out too, as they do a lot of testing for semiconductor manufacturing as well.

14:48What we care most about is that Agilent has had excellent numbers recently. They're on track to deliver 8 % revenue growth, 11 % earnings per share growth in 2026, both of which represent an acceleration from their 2025 results. Agile reports later this month, but we have no reason to expect anything other than strong numbers from this quiet powerhouse in the life sciences space. Next, the life sciences arms dealer that we feel best about right now is Thermo Fisher Scientific, TMO, who's the largest player in the space, more than$250 billion market cap. This company is one of the best partners to the life sciences industry, selling everything from big ticket equipment to consumables, diagnostic services.

15:26It offers the type of product that drug developers need for some of the most advanced types of medicine, like cell and gene therapies, mRNA medicines. Additionally, after the acquisition of a company called PPD about five years ago, Thermo Fisher has an in-house clinical research organization, a CRO, which drug companies can use to run their clinical trials for development stage treatments. All right, TMO shares are up roughly 49 % for the past six months. Remember, all the tech money is going to these. And we know that business is strong because we just spoke with CEO Mark Casper last week about Thermo Fisher had delivered an excellent set of third quarter numbers, a beat and raise report accelerating organic growth in the reporting quarter.

16:04We hope that you saw that interview because we thought it was profoundly important. It's one of the reasons why I wanted to highlight the strength of this group tonight. Aside from discussing just how well this company is doing, Casper confirmed in that conversation that there's something big happening in the life sciences industry. The FDA seems to have gotten more interested in both encouraging innovation for new medicines and probably most important, speeding up the new approval process. The other thing that we're seeing is a real desire to learn about how can we do things more quickly. Right.

16:36Right. Because patients are out there waiting for medicines and the FDA is saying we're not going to compromise safety, which is a great thing. But if there are better ways to develop a medicine, we want to understand it as a regulator. And where it's appropriate, they want to adapt to the technologies that exist today. That's huge. Not only does it directly rebut the prevailing thesis from last year that the FDA is supposed to be opposed to innovative drug development. It also gives us hope for much more drug development, which, of course, means more business for these arms dealers. Now, two more quick ones, both of which reported just this morning.

17:11First, Waters Corporation has always been a strong, underappreciated company in the space. They made an aggressive move to become an even bigger player last year when they combined with Becton Dickinson's biosciences and diagnostic solutions business in what's known as a reverse Morris Trust transaction. That deal is working out phenomenally well for Waters, whose shares are up nearly 50 percent over the past six months, including a nearly 5 percent gain today after a very strong third quarter report with even better guidance for the fourth quarter, including an outlook for 79 percent organic growth.

17:40Finally, let's take a look at a company called Revity, which is the relatively new name for the company formerly known as Perkin Elmer. About three years ago, in the midst of the post-COVID morass for this industry, Perkin Elmer broke itself up, selling its applied sciences, food, and enterprise services business to a private equity buyer, then rebranding the remaining diagnostic and life science business as Revity. Candidly, it took the investors a few years to fall back in love with Revity, but they sure seem to have done so. The stock is now up roughly 69 % year-to-date, including an 8 % gain today.

18:10after a beat and raised result of its own. Here's the bottom line. All right, so we know that tech can be out of favor, but if you can only offer growth away from tech, then investors will eagerly buy the stock. That's why we look at these arms dealers to the life sciences industry, Agilent, Thermo Fisher, Scientific, Waters, and Revenue. All right, they're not household names, but they're exactly what's working right now. They are the new techs, the ones that seem to be replacing the data center as the theme. If that's the case, then I know they have a lot more room to run. Let's go to Anthony in my home state of New Jersey.

18:39Anthony. Hi, Jim. Thanks for taking my call. I joined the investment club in September, and I really love being a part of the community that you're building. Thank you. And that's exactly what it is. A community of people want to learn, and we do teaching. Thank you. Absolutely. My question is about Eli Lilly. I took my first small position last month, and it's up about 11 percent. When you start a new position, sometimes it's at elevated prices simply because of the timing of when you first invest in the stock. So do you think new investors like me should add Lilly at these levels or should we wait for a drop?

19:23What you do is you take a position. Let's say you want to buy 100 shares. Buy 25 straight out. And then you wait for a decline. If you don't get the decline, you're fine. You got a nice short-term gain. But I don't like to buy all at once because if it does drop down because of rotation or something wrong, then what happens is next thing you know, you've got a terrible basis. And if you have a terrible basis, you're more than likely going to kick out the story rather than buy more. So small buy at the beginning and then buy in a pyramid on the way down. That's the way I've done it all my life, and it's worked very well for me.

19:54All right. Tech may be out of favor now, but these arms dealers, the life sciences industry, are exactly what is working. Much more mad money ahead. CrowdStrike just unveiled a new kill switch designed to stop AI agents in their traps. I'm getting the details straight from the CEO. Then can Columbia Sportswear just beat Ernie's expectations? They did it, but with the consumer uncertainty still looming, can it weather the storm ahead? I'm checking with the CEO. And Apple delivered an Ernie's beat last night. But the stock got hammered anyway. What gives? I'll tell you why I'm not sweating. Sell off.

20:23Stay with Craig.

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20:58weren't agents supposed to take things off your plate building another to handle the others is a bit much don't make more work out of work gemini is the one agent that knows all parts of your business and actually gets stuff done you give it a project close your laptop and when you come back the job's finished no matter your industry or role your agent has the skills to help every team stay in their flow. Seriously, make work less work with Gemini on Google Cloud. Check response, subscription required. Still waiting in line? Again? That's time you'll never get back. Save time and money with Stamps.com.

21:35Over 4 million businesses have skipped the line with Stamps.com. Join them to save up to 90 % off carrier rates from your computer or phone right now. Print postage for certified mail, registered mail, and packages in seconds. Then schedule a pickup right from your home or office. For a limited time, go to stamps.com and use code podcast for a free welcome gift. Taxes and fees apply.

22:04We just had CrowdStrike on last week, but in the world of cybersecurity, it feels like a year ago. TisN, for example, Binance disclosed a$6.3 billion cryptocurrency theft that the FBI has attributed to North Korea. Today at the company's Falcon European Conference in Barcelona, CrowdStrike debuted a new technology they're calling the AI Killswitch. It sounds like a major breakthrough, and earlier today I had a chance to check back with CrowdStrike founder and CEO George Kurtz about the news. Take a look. George, everyone's told me there's no such thing as a Killswitch, that we can't shut things down with agents, that they are on their own and they're faster than we are and smarter than we are.

22:46Is today the day where we say that's no longer the case because it's something that CrowdStrike has? That's correct, Jim. If you think about it, everyone is building AI agents, but they never had the off button and now they do. And this has been something we've been working on since we launched our Guardian product, which has been a smash hit at our Falcon in USA at the end of the summer. Now we're in Europe at Falcon Europe. But the biggest thing that customers were asking for is we need a kill switch. This is what we've built. And we're so excited to be announcing it today. And it's going to be an incredibly important part of making sure that AI agents run and operate safely.

23:27George, I don't want to overstate this. Again, I mean, when you talk to the people behind Anthropic and OpenAI, they say, listen, you know, accept the fact that we don't have it, accept the fact that they can run wild. I wish they couldn't. What you're saying is that if I, what I'm saying, here's what I hear. If I hire CrowdStrike and I have agents and I think the agents are doing something wrong, I can stop it and I can stop them cold. And this idea that they are in charge or they're faster than we are, smarter than we are, is off the table if I hire CrowdStrike. Well, that's right, Jim. With our Falcon technology, as I talked to you many times in the past, we are at the epicenter of where AI agents are running.

24:08We see when the agent is created. We see what identity it has. We see what tools it's calling. And we have the ability to stop the agents in its track, both on the endpoint as well as integration with network devices, including one of our own AI gateways that we launched at this event today. So it's the combination of the platform that we've built, having visibility where AI actually runs, as well as being able to kill these connections across the network. So you put the two together and it's a very potent package. All right. Now, I want to understand. Again, I'm a little obtuse with this because I've told that none of this can happen.

24:46If I hire you and I'm worried about my agents, they can be stopped. How about on the defense and also on the offense? In other words, let's say I'm a company that has really smart agents, but they figure out how to infiltrate somebody else. I can shut them down. If I am a client and I am worried about someone getting into my system, I can shut those bad actors, too. I can do it on both sides. Correct. And let's talk about that for a minute, Jim, because for the last 30 years I've been in security, which is keep the bad guys out. It's always about the outside. Keep them out. Keep them out. And now, really, for the first time, security has moved from security, keep them out, to safety.

25:27How do you actually allow agents to work within an organization? And enabling agents to work safely is a massive market opportunity for CrowdStrike. So we have AI capabilities to prevent these breaches from happening on the outside. And we also have the capabilities to make sure that agents are basically doing what they are instructed to do. If they go outside of those guardrails at runtime, we can kill those agents. And that's very important because when you think about the model and the lab creators, they're building it in a lab. They're training it a certain way. But when it hits the real world, it doesn't always operate that way.

26:06This is the reason why cars have airbags. If there's an accident, you're going to protect the occupant. And I think the kill switch is going to be mandatory for companies going forward. You have to have the ability to kill these agents if they go off the reservation. Right. Yeah. Will it be possible to get insurance if you don't have the kill switch? I imagine insurance says, look, we're not going to do it. You've got to get a kill switch or else we're not going to give you protection. Well, I think there's going to be a lot of guidelines and focus on making sure that companies have that. They're going to have to go to their auditors.

26:40They're going to have to prove that the agents can be stopped if there is an issue. And this is going to be just table stakes. You see a lot of governments, a lot of states talking about the kill switch, talking about regulations and legislation around this. And we're going to be there for our customers to make sure that they have the ability to operate their agents in a safe manner, that they can understand what these agents are doing, why they're doing it. And then if something goes wrong, you have the ability to stop those agents in their tracks. All right, George, let me challenge you. your Binance, your higher CrowdStrike, the government of North Korea is dedicated to stealing your customers' crypto.

27:18Are you telling me that if I hire CrowdStrike, the government of North Korea will not be able to get my stuff? Well, Jim, what I'm telling you is that we routinely see North Korea activity and we routinely stop it. If you look at what they're doing in this particular trader, trader group, this is something that we've seen reported on and stopped many times. But it's important to remember that the epicenter of these sort of attacks is on the endpoints, on the workloads. And if you can have a laptop that's compromised, if you can have identity that's compromised, bad things will happen. This is why we've built this technology, and we've deployed it at many of the largest enterprises around the globe for these particular threat actors.

27:58In fact, we actually worked with the FBI, and you may have seen that a few weeks back, where we identified a complete laptop farm, multiple ones, by the North Koreans. They're very good at what they do. And in this particular group, they're focused on stealing money, as well as many of the other parts of North Korean government, stealing identities of users and then being able to monetize that. In February this year, you came on our show three times. And you said that when you hear that these big the hyperscalers, modelers, in this case, yes, of course, when you have what you have Anthropik saying, listen, we can protect you.

28:36We will have cybersecurity. And you said that's kind of ridiculous that you can't just have cybersecurity and be the company that is trying to be protected because no one will offer you insurance. You're just it's just not going to happen. They kept insisting that you didn't need CrowdStrike, insisting. And they were completely wrong. The stock was cut in half over and over again. You said they were wrong and they were wrong. Is this another one where they're going to keep insisting? No, that guy don't pay no attention to the man behind the curtain. Are they going to continue that stuff, that nonsense that we all had to deal with?

29:10Jim, I don't think so, because one of the things that we actually announced today is the collaboration with Anthropic on being able to protect Co-Work. Co-Work actually runs in a container. And I can tell you how it happened, because our customers went to Anthropic and said, we need CrowdStrike before we can deploy AI. We have to have CrowdStrike in these containers instrumenting what they're doing. And we work with them. We're the first to market with this, and we're proud of the collaboration. But I think the market, customers, labs, everyone realizes that security plays an incredibly valuable role in making sure that you can actually use AI.

29:47It's not going to be all solved by one company or by the labs. It's a collaboration with companies like CrowdStrike, working together with our customers who are demanding CrowdStrike and the labs and putting it together and leveraging the trust that we've built for many, many years. So that's part of what an ecosystem looks like. I think, you know, people have figured that out. We're working collaboratively with the labs. And, you know, our goal is to make sure that our customers are protected. But I think it says volumes that customers would not roll out AI without CrowdStrike. Last question.

30:23Why have you been able to do this when everyone says you can't do it? I mean, are you smarter? Is your team better? I dealt with the Palantir guys. They'll just tell you, listen, we're smarter and better. I've never heard George Kurtz come out and say the reason why this works is because we're smarter and better. What do you have that the other guys don't have? Well, I think we we spend a lot of time with customers listening to them, Jim. You know, at the end of the day, if you do the basics better than anyone else, you're going to be a world champion. And this is what we're focused on. We're listening to what our customers are asking for.

30:56One of the number one features was kill switch. And because of the architecture we built, I've talked about it for how many years on your show. We started with the right architecture. We understand where these agents run and what they do. And as Jensen said, it's an engineering problem. We've engineered how to create a kill switch, how to turn these agents off, and how to leverage them effectively and safely. And we've got great people. We've got smart people. We've got great customers who tell us what they want. And then we engineer that into the platform that was built for this agentic moment.

31:30Wow. Well, George, I have to tell you, I think it's what we've all been waiting for. I'm not saying rip up the S1 warning signs on Anthropic. I am saying people would be crazy not to hire you. How about that? Well, Jim, as we always say, we're here to stop breaches. That's our mission. We don't have a mission statement. We want to make sure we keep our customers safe. Excellent. George Curtis, CrowdStrike CEO. George, thanks for coming on the show. Thank you, John. I'm going to be back after the break. Coming up, can shares of Columbia keep your portfolio warm this season? Kramer's asking the CEO next.

32:19Last Thursday, Columbia Sportswear, the outdoor apparel and footwear company behind Columbia, Sorrel, Mountain Hardware, and Prana delivered a really strong quarter. Gave this stock's comeback another push. After years of kind of struggling to gain much ground, shares are now up more than 25 % this year, nearly 10 % since the report. Columbia reported a 38-cent earnings beat off a$1.28 basis, better than expected sales and gross margins. Magic also raised the low end of its full-year sales and earnings forecast, although some of us were looking for more than a fourth-quarter profit outlook. We'll get into that in a second.

32:50The big question is whether Columbia could turn that progress into sustained growth here at home, where sales were still down slightly year-over-year. So let's check in with Tim Boyle, Columbia Sportswear's chairman and CEO, to find out. Mr. Boyle, welcome back to Mad Money. Hey, Jim. Thanks for including me on the show today. Oh, absolutely. Now, Tim, overseas, really extraordinary. China, Europe, really good. How do we get U.S. going? Because I think that the stock has really had a nice move here. And if you get U.S. going a couple percent, I think the stock can go to 100. Well, listen, from your words to God's ears, but I'm hoping that we will have that.

33:30You know, I think there's some reluctance because of our reliance on Q4. and we had a little bit of a hiccup in our delivery. So actually Q3 in the U.S. would have been better had we had more timely deliveries. But I think we're in good shape and we're in a position to produce for fourth quarter. And we're very excited about our opportunities there. All right, let's talk about, okay, let me just tell you, because I did a lot of work ahead of the interview. I'm seeing more color and more personality into products. And I am thinking that maybe you're going, you know, Some of your best technical stuff is now looking a little bit fashion forward and it's working.

34:09You know, it's we've talked a lot about the fact that the company needs to continue to improve itself. And most importantly, start talking about the important products that we have. And that's what we're going to what we've been doing. A bigger investment in mid funnel, a bigger investment in some of these sort of wacky activations that we call them and an opportunity for us to get noticed. and in a different way. And that's going to be our approach and how we're going to bring back our USA business. Well, I know, I'm going to give you two examples that I think you have, just examples of where, of how much a greenfield there is in front of you.

34:44OmniWik. Okay, if you're in a climate that's high, you recognize that we have a terrible ozone layer problem. And if you are worried about skin cancer, you have to wear yours because sun tan lotion doesn't work. or when you're fishing and you're in, like I did, I went to Trinidad to go after tarpon with monster fishing. And everyone had performance fishing group. But the younger people, they don't look at it because it's not cool enough. Are you able to take OmniWick? Are you able to take PFG and just make them a little bit cooler for young people? Yeah, you know, our Spring 27 product is going to be hitting the shelves, I want to say, in the next, call it, month.

35:27and there's going to be a vast difference in terms of how young people will approach that. We've got a younger team working on the product. It was a very successful product for us for many, many years, but we weren't young enough and we needed to have more fitted product. We needed to have product which was stylish, the right colors, and kind of the right vibe around the product. And so that's what we're doing. And I think it's going to be working quite well, especially here in the U.S. Oh, that is just great news because I really think that you look, everyone knows your stuff's the best. Everybody in any outdoor stuff that I do, and I do a lot of what I regard as almost professional fishing.

36:04And it's just PFJ. That's all anybody knows of my age and maybe 50s up. The younger people are trying to do different things. They go into Amazon. They find something that's not nearly your quality. It lasts for a couple of fishing trips. They throw it away. Got to get away from that. In the meantime, you do have some incredibly funny different contests, a fax contest. It's cool. Don't panic. Let's talk about that. Where did you come up with that one? That sounds fantastic. Fantastic promotion. Well, you know, we've had some great results and great creativity from an ad agency we're using in London.

36:38And they're really talking about, you know, the importance of being in a cultural moment. And we have the tech bros who all built themselves these bunkers. And we said, you know, why not do it for everybody? So we put together this don't panic room. We put some time and effort into making it really interesting. And it allows us to be quite different because other outdoor companies really can't approach it in the way we have. So this is about making fun of people who probably ought to be making fun of and being different. And that's really the key. I think it's fantastic. Now, Europe is not doing the the continent's not doing that.

37:18Well, your numbers are terrific. What's selling over in Europe? Well, you know, we've had a really good approach with the kind of products that have been successful for us here in the U.S. They're slightly elevated. Our margins are better in Europe. And there's an approach that we have, which I believe is quite inclusive. It's not exclusive. It's more inclusive. and it utilizes the same sense of humor that we have here in the U.S. And that's what's really allowing us to be different. And again, we're a small player in Europe, so we can grow rapidly and do well when others are maybe hitting against the top number.

37:54Meanwhile, direct sales improving, what's selling the best there? I would say it's a little bit of everything, but frankly, the method we're using to promote ourselves, The mid-funnel execution against our products, which are best products, footwear is actually much bigger in Europe than it is here in the U.S. as a percentage of our sales. And those kinds of products require a good, healthy dose of funnel expense where it can really turn the needle. Is that the up high 30 % European distributor situation? Because that's, I mean, unbelievable numbers. That's across the board in Europe. And some of that was due to earlier delivery.

38:40So we put stuff in the market faster and it's been successful and working well. And then people need to know robust growth, even though international, but a little bit more than 30, about 35 percent. But China, up low 20 percent, up low teens, pretty terrific there. You know, we have a really terrific team in China, and the team there is focused on digitally making sure that the product's visible and quite available, even though we're still a small player in China. But there's real opportunities for us there. Well, Tim, this is I think the most excited that both of us have been about what's going on.

39:18I think that a little bit more fashionable than OmniWic, a little more fashionable performance group, a little more fashionable. I mean, I love that. Look, I wear your shoes when I when I fish. But younger people say, geez, Jim, what do you wear with those shoes? You know, the answer is they're the best. I always say they're the best. But if they start looking a little more younger, I think that even younger people realize that it matters, that it's the best. I want to thank Tim Boyle, chairman and CEO of Columbia Sportswear. What a move the stock has had. Tim, so so great to have you on the show.

39:47Thanks, Jim. Everybody's back in for the break. Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast-fire lightning round. Next.

40:07This is time. It's time for the Lightroom. I'm going to go to the next episode. I'm going to go to the next episode. My staff prepare for something. I can play this sound. And then the lightning round is over. Are you ready? Ski. Thanks. I'm Lloyd. I'm Chris. Let's start with Joe. I'm Lloyd. Joe. I'm going to show you all. Rob the show and thanks for all you do. Thank you. I watched the show a while back and you know who I believe is the CEO of Rep. He was so adamant that his cancer drug was going to be a winner that I jumped on. I'm just 981%. What are your thoughts on the continued growth? Tell me what to do, Jimmy.

40:48in which stock?

40:57Oh, Replimid. Okay. All right, well, look, this is anti-cancer, and it's all spec. It's all experimental, and so far it's going their way. I think it can be your spec. I would just take one of these. If you have any other specs, you've got to sell them. Let it be that stock. Let's go to Raj in California. Raj. Yes, sir. How are you doing? I'm doing well. How are you? I'm doing okay, sir. So far, thanks. Question is, are you on truck? No, we're going to be, we want to go with Tesla. If we're going to be self-driving, we'll go with Tesla. We go with market winners, we go with leaders. Let's go to Leslie in California.

41:33Leslie. Jim, I'm down 15 % in FedEx freight. And Morgan Stanley has a neutral on the stock. So I'm wondering, buy, sell, or hold? Oh, you want to buy it. We like it for the club. It's had a very nice move off the bottom. It came out, it came public as a kind of like a spinoff by FedEx. And the stock did not hold well because there's a big block of stock out there that's for sale that's owned by FedEx. They just have to bring it to the market. If they did, then it'd be a clearing event. And I think the stock would go right up to$150. I want you to own FedEx at a really good quarter. FedEx Freight, that is.

42:12Let's go to Steve in Florida. Steve. Jim Kramer, how are you doing, sir? I'm doing fine, Steve. How are you? Very good. I'm calling about Celestica. It's 45 % off its June highs, currently trades at 12 times next year's earnings. Last week, management guided 90 % revenue growth for 2027, which puts their peg ratio at 0.16. Thank you. Yes, this is the kind of stock that I was talking about at the top of the show. Has it come down enough? It is no longer expensive. It had a fantastic quarter. There was no hair on the quarter. I was quite surprised that it was greeted so negatively. Maybe this kind of company, which is really solid, doesn't need to borrow money, is in great shape, is the kind of company that can bounce first, not the kinds of companies that are issuing debt and issuing equity, which seem to be left behind right now.

43:01Let's go to Mike in Texas, please. Mike. Yeah, hey, Jim. Listen, I'm calling about Sterling infrastructure. It had a massive run earlier in the year and it's all the way back down even though earnings killed it. Is the story still true? Buy old or sell? Okay, this is one where I think it's going to be a clearing event. The election will be a clearing event. This is a total data center ratification story. If the whole election is against data centers, then this company stops. It's going to go down more. I think we'll get the election over with and Sterling can have a move back. And that, ladies and gentlemen, is the conclusion of the Lightning Round.

43:36The Lightning Round is sponsored by Charles Schwab. Coming up, the analysts may be taking a bite out of Apple stock, but Kramer's adamant the future remains bright. He's explaining why next.

44:09Look, maybe the market's reaction to all this stuff is wrong. That's how I approach earnings season. So many companies are reporting at once, with many presenting their numbers in a nuanced way. It's easy for investors to make a mistake and sell when they shouldn't be, or maybe they should be buying. Once the stock's trajectory is down, though, then the analysts aren't going to get in front of a speeding freight train. So instead, they find themselves agreeing with the freight train just to justify themselves with a decline. They got on board the down train. We saw this today with Apple, which reported an amazingly strong quarter last night.

44:42Offers you a glimpse of the future and seem very positive. But they had this ever so small decline in gross margins, at least when you strip away the tariff refunds, due to the higher price of memory and signaling that gross margins could be even lower in the current quarter. More important, the very lucrative services revenue stream, which was up 10 percent last quarter, might see its growth slow to only 8 to 9 percent this quarter. And near term, there may not be a way to turn that trajectory around. Oh, I heard all that. Took it in and said, given that so many tech companies are struggling with escalating costs, especially for compute, this disclosure is pretty darn positive.

45:13While everyone noted the light services revenue guide, no one seemed to mention that Apple's overall revenue outlook was much better than expected. It was a great quarter with conceding with another great quarter ahead of it. I'll take it. However, because the stock had run so much before the report, there was little chance for it to go higher today. There would almost certainly be something that would trigger a decline. That's what I told investing club members right into this earnings report. I said it was slated to go down, calling it an impossible situation in my regular Sunday column. But I said that I would own it, not trade it, because I didn't know when you could get back in.

45:46And you would want to get back in because the future could be terrific. A bunch of analysts rationalized this off, and some took price-cutting actions overnight. I guess maybe they wanted to call top? Me? I said two things were happening that could propel the stock much higher after it shrugged off the decline. First, the new iPhone Duo, the folding phone, is out. And it is extraordinary. I mean, amazing. Is it expensive? I believe phone companies are in such a dogfight

46:14that one of them will give you the bargain of a lifetime for the gem of a phone slash TV. That's what I call it. I asked CEO John Turner last night on a call I have with management about what the availability is like. And let's just say that I don't expect my five phones by Christmas. I was hoping to buy everyone and family a phone. If the duo sells as well as it seems to be selling, that could bring millions of people into the Apple ecosystem. That, in turn, will drive services revenue, so I am more sanguine than most about the concern from last night's guidance. The second thing that made me more reassured that you should own Apple, not trade it, the price of memory.

46:47We are also sure that the price of memory is going to go up so much that it's got to hurt their earnings. But wait a second. If we are so sure that memory is going to continue to go higher, then why are the memory stocks acting so awfully? They're screaming at the peak prices in. And even though Micron has take or pay contracts where you have to pay no matter whether you need them or not, there will be excess supply. I do not know what's right. The current bilge on forever higher prices or the notions they have topped out. But the longer term trajectory of a chart is worth a lot more than a momentary movement.

47:18And it says that Apple might be in better shape than you think when it comes to the price of memory. Short term, this doesn't matter. The stock could mark time, maybe turn lower. The lower term, I say the duo and peaking DRAM prices should make you want to own Apple, not trade it. My stance remains positive, the same one I have had for ages and ages and ages still. I like to say there's always a bull market. So I promise I'll find it just for you or your man money. I'm Jim Cramer. See you tomorrow.

47:55any 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 Mad Money Disclaimer. Come go with me. Let me take you on a holiday.

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