Mad Money w/ Jim Cramer 9/29/26

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1:22A few of my friends, I'm just trying to make you some money. My job is not just to entertain, but do some teaching here. So call me at 1-800-743-CBC. Tweet me at Jim Cramer. Wall Street is losing the battle of the narrative, and all sorts of stocks might end up getting hurt. Heaven knows this market has enough problems with this seemingly endless increase in long-term bond yields. Today, a real surprise, given that oil actually fell. Things got real ugly in the stock market before plunging oil helped us rebound from our lows, Dow finishing off on 32 points, S &P falling 0.17%, Nasdaq only dipping 0.09%.

2:00The rate on the 30-year Treasury is the highest in 24 years, quite a competitor to stocks, although bond prices did rally from their midday lows. As buyers, I think, are starting to think, we've got a lot of weaker data coming in. We might be due for a quick move down in rates. Stocks needed. Do you know that more than 50 % of the stocks in the S &P 500 are trading below their 200-day moving average? The worst market best since March? More stocks, the S &P 500, have hit 52-week lows than highs for nine days in a row. Only 1 % of the index is at its 52-week high. 204 stocks are down 20 % from their 52-week highs.

2:37In other words, over 40 % of stocks in the S &P are in a bear market. Then there's the extraordinary story of the pulling of the Aura IPO, that popular health ring that was four times oversubscribed, not good enough for management, which would rather wait for a better moment. They're blaming market conditions. But the Nasdaq 100 is only 1.3 percent down from its all time high. Could there be better market conditions? OK, we have some slowing in the oddest of places. I like to read these Federal Reserve notes on certain key geographies. Today, the Dallas Fed put out a note entitled, quote, growth in Texas service sector activity stalls, end quote.

3:12It goes on to say, quote, the revenue index, a key measure of state service sector conditions, fell eight points to negative 0.9, with the near zero reading indicating no change in activity from the prior month. End quote. If it's weak in Texas, you can only guess how bad it might be in the other 49 states. Consumer confidence numbers out today. Worse than a dozen years. Yet rates keep rising. Now, I think that could change if oil stays lower or goes much lower. But I recognize that people have been saying that incorrectly ever since the bond sell off began. When I say we're losing the war for the narrative, though, I mean something's changed with the AI contingent and the data center, the greatest growth story of our era.

3:53The market's been carried by these themes for, like, seems like ages. But now as I look at the seating chart of today's launch for the president with Jensen Wang from the world's largest company, Elon Musk, the world's richest person, Jeff Bezos, founder of Amazon, among so many other wealthy people, I think, oh, no. I mean, who's going to come out and say, what a bunch of fat cats feasting off the newly AI unemployed? Or the oligarchs, they'd kill us for higher earnings per share. A year ago, I would have thought that here are the people who represent the best we have. Now the critics, not me, but the critics are saying, quote, here's the people who want to sacrifice your jobs on the cross of higher profits.

4:30End quote. 18 months ago, people might have said these execs are putting tens of thousands of people to work building data centers. Now we think how much have they raised our electricity prices? How much water did they despoil? How many talents just got had? Oh, and of course, there's the worst possible change in narrative. The two most exciting companies in America, Anthropic and OpenAI, are now openly admitting that their products aren't safe for society. We're hearing you at the document Anthropic's putting out about this potential IPO is filled with grisly caveats like Anthropic might cause mass death or human extinction.

5:01The company might present, quote, existential threats or fundamental destabilization of global systems, end quote. Wow, I can't wait to get some stock in that deal. 80 pages of the 261-page document are devoted to risks.

5:16Meanwhile, OpenAI wants to raise$30 billion in a$1.4 trillion valuation, about$600 billion higher in the last round, despite the fact that it's holding back its new iteration, ChatGPT 6.1, because of the risks that it presents, yes, to society. How is this possible? Simple. The culture has turned against these people. these products, and the proponents have been caught flat-footed. They don't know what to say. Even though there's no empirical evidence whatsoever that I think the jobs are lost because of AI, they haven't demonstrated the productivity gains. We know that there are plenty of execs now saying that stopping the existential threat is a feat that can be done by engineering.

5:54Extremely smart people like Jensen Wong, George Kirsch from CrowdStrike, Nikesh Arora from Palo Alto Networks is with the president today. Tom McKinnon from Okta. They have all offered serious solutions that are drummed out by the AI doomers. It doesn't matter. Because when the CEO of the most richly valued private company, Anthropic, makes it clear that his business could potentially wipe us all out, hard to salvage. Look, I'm not a doomer. You know I'm constructive on AI. But the companies have to start telling better stories. Tonight, we have Dina Powell-McCormick. She's the president of META.

6:27I wanted to demonstrate the positive side. And I found it a total breath of fresh air. Maybe you will. Meta's committed to lowering electricity rates where it puts data centers. It works with small businesses to help them grow. It offers bonuses to teachers, big ones. It's got video supporting its claims. It challenges every other hyperscaler to do the same. But are they? Meta's Muse may be the best new tool for scaling a small business that I've heard of in years. We'll put a farmer on who talks about how his business is growing because of the Meta's Muse product. Will anyone listen? How about the existential endgame crisis, the one where we're all going to die if we find Anthropic to the fullest and its agents go rogue?

7:05I recognize that there are risks here, but why not some moderation? Why not say, okay, look, heck, quote the Lincoln Tunnel scene from Stephen King's The Stand, but also say that they're slowing things down to ensure the product can't backfire, and there are real cybersecurity solutions that could have stopped the big hugging face solution, the hugging face event, the one that Jensen Wong talked about, where I think he said it won't happen. It wouldn't have happened if he owned it. Right now, we have a president who says, damn, the guardrails full speed ahead. He believes self-policing is enough, even as the record of private industry self-policing isn't all that great.

7:40So take tobacco, opioids, autos, fossil fuels. The president's big contribution today. He rebranded artificial intelligence as super intelligence. A.I. goes to a side morally binding. Somehow, I don't think the doomers will now get on board. Can you imagine what happens after the midterms in November, which are looking strong for the Democrats? If the Democrats take the House, you better get used to hearing that the time for the SI oligarchs has come and gone. We actually can see congressional witch hunts that may start with today's guest list for lunch. Look, we've done it before in this country.

8:13We could always do it again. Can the narrative still be saved? You can be the judge when you listen to Medes Dina Powell-McCormick and wonder what would happen if the rest of the industry would follow her lead. If we lose the narrative, if the war continues, October could be a mighty tough month. And the Democratic sweep won't make the AI, excuse me, SI narrative any better. Here's the bottom line. It didn't have to be this way. It didn't need to become a nightmare of the ultra wealthy extracting their bond. But that's the new narrative. And it's going to be hard to break, even if rates are done going higher, because the new economic data is at last slowing down.

8:50Grant in New Mexico, Grant. Good afternoon, Mr. Kramer. This is Grant from New Mexico, and I'm 65 years old, and I live comfortable with my military retirement, and I have a goal of making money to pass on to my kids, and I have some cash right now that I want to put to work. I started a position with Capital One earlier this year, and I'm considering either adding to that position now or possibly starting a new position in Bank of New Mellon. I also own Goldman Sachs, and I'm looking to add to that position as it drops down in the mid-800s. Thank you. Well, first of all, thank you for serving.

9:38And I think you're doing the exactly right thing. 65, leave money for kids, that makes a lot of sense. I like all of your ideas. The one that I think is the most down that I think could turn if we get this bond rally, that didn't mean anything could happen, is Goldman Sachs. It's come down greatly, and I think it's doing incredibly well. I think David Solomon, he's got 4x gains there for use total return, which is what I like to use. All right, people, AI companies need to come, they've got to come clean and narrow. They've got to get better. Otherwise, I think we could be looking for a tough October if interest rates keep going higher.

10:11Oh, man, money tonight. AI disrupted the software stocks, but could the consumer stocks be next? I'm explaining my thesis for how the technology could impact the sector, and there's already been some damage. And Meta's muse is taking the world by storm, as you know. And I got an inside look at the real impact of this personal AI agent. Don't miss my sit down with Meta's top press. And nuclear energy player BWX Technologies just laid out a new long-term strategy. Is it enough to give the stock a boost? Because it's been just crushed. I'm finding out with the CEO. So stay with Kramer.

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12:25How disruptive, really, are these personal AI agents? Like Meta's newly launched Muse, which of course is now the number one free app on Apple Store. I keep hearing that this could be a game changer because of an idea called consumer inertia. Basically, once people pick a product or a service, they tend to stick with it. Often out of pure laziness, I'm a victim of it. But what happens when you take the humans out of the equation? Meta's Muse can review all your subscriptions and cancel the ones you don't use enough. It can do your comparison shopping for you. This might just be the first real AI product that can actually help consumers save money.

13:01Ever since Muse launched three weeks ago, the gym stocks have all been hit. That's the GYM kind. And those memberships often go unused. Planet Fitness is down more than 18%. Same goes for all sorts of subscription-based media outfits. And a few agents can do comparison shopping on their own. Do we really need the online travel agencies booking holdings in Expedia down 10 % and 3 % respectively since Muse launched? Heck, maybe all the aggregators are in trouble. I mean, you can include DoorDash, Uber, Lyft. at least judging by the way they're trading. And look, in theory, the death of consumer inertia could apply to almost anything.

13:35Do you really love your property and casualty insurance plans, or are you just too lazy to comparison shop for new policies every year? Even the banks have been getting hit, hard hit, because Muse can search around for the ones that pay the best interest rates and then move your money around. So how seriously should we take this threat? Like with every AI displacement fear we have dealt with over, I don't know, years now, I think you need to use common sense. which is in short supply when we think about the consumer rapidly adopting anything as boring as cash sweeps or lightly as websites. For example, the gym stocks have indeed been savage over the past few weeks, but not all gym stocks are created equal.

14:11Lifetime Fit is an expensive, upscale gym with a very engaged membership base. People pay a lot and they go a lot. Those memberships aren't getting canceled. On the other hand, Planet Fitness, well, let's just say membership base is less dedicated, which is why the stock's been hit much harder and is a cheaper alternative. As for the subscription-based media businesses, again, it depends on the property. I don't see people using Muse to cancel their New York Times subscription. Hey, but maybe some of the streaming services will run into some turbulence. Online travel stocks. Listen, those names have sold off periodically since the launch of ChatGPT, based on the same general idea that the bots can easily replace them.

14:48So far, it hasn't happened. And I'm not sure if Muse changes that. In fact, Expedia is already partnering with Muse to help you plan your vacation. At the same time, I think Airbnb is mostly insulated from AI competition or even super, super AI or super SI. And that's not Sports Illustrated. It's easier for an agent to book hotels online than it is for them to comb through rental homes and book directly from the owner. Plus, Airbnb sold off dramatically in the last month to the point where I think the stock's a steal. It may be my absolute fave of the news casualties. How about the food delivery services?

15:22Look, this isn't the first time DoorDash has gotten hit on AI displacement worries. Seven months ago, an out-of-the-call Citrini Research published a doomsday fiction piece about how AI agents would make this business obsolete. The stock got crushed at the time, but then mounted a fabulous comeback. The 150 went to 240. As for the banks and brokerages, I find it hard to believe that consumers would be happy to let AI move their money around bank-to-bank night-by-night just to get a few extra basis points of yield on their savings. I just don't think people want to give their bank information to these agents.

15:52There could be some friction here, too. It doesn't seem safe to me. So I'm skeptical about dumping entire groups based on this idea that agentic AI means the death of consumer inertia and companies that benefit from it. Remember when AI was supposed to be an existential threat to enterprise software? OK, those stocks have been flying for the piss a bunch. They did get hurt, but they bounced. That said, there will absolutely be real victims here. because plenty of companies do benefit from people being too lazy to cancel subscriptions or comparison shop, and Metis Muse is a threat to their business.

16:22You won't hear me make a passionate case for SiriusXM. A company's been in secular decline for years and has further fallen since the launch of Muse. I'm just asking you to think critically about where these companies stand. Right now, it feels like some proverbial babies are indeed being thrown out with the bathwater, and that often makes for good buying opportunities, especially given that the consumer is not as focused as being more productive than, say, the small business owner. Here's the bottom line. Consumer inertia has been a powerful force, at least for my entire life. But agentic AI platforms like Metasmuse can push back against our inherent laziness.

16:57I don't think it'll destroy entire industries, but there are plenty of companies that could be vulnerable here. Just don't try to paint with too broad a brush. And remember, think about Airbnb. That sell-off, I think, is the best of the buying opportunities. Let's go to Adam in Arizona. Adam. Booyah, Professor Kramer. Booyah. What's going on? Hey, I'm calling in regarding Amex. I know at the end of their last earnings report in July, you were in favor of a buy position on them. And since then, I know I've taken about a 10 percent haircut on it. And I was wondering what your position would be on it now.

17:33Are you in favor of a buy? American Express is run by Steve Square. He has done a remarkable job. periodically has these sell-offs. People worry about credit issues they haven't had to surface. People worry about growth. The growth has been excellent. I think AmeriExpress is a great long-term play, but you have to think long-term because right now we do not have a good situation with any company that's involved in credit. I don't think personal AI agents like Muse will destroy entire industries. There are plenty of companies that look more vulnerable now and some opportunities. Much more mad money ahead, including my exclusive with the president of Meta.

18:07Then how is BWX technology's shifting strategy amid a volatile moment for energy and defense? I'm finding out with the CO. And, of course, all your calls rapid fire tonight. So stay with Kramer. Hey, this is Will Arnett, host of Smartless. Smartless is a podcast with myself and Sean Hayes and Jason Bateman, where each week one of us reveals a mystery guest of the other two. We dive deep with guests that you love, like Bill Hader, Selena Gomez, Jennifer Aniston, David Beckham, Kristen Stewart, and tons more. So join us for a genuinely improvised and authentic conversation filled with laughter and newfound knowledge to feed the smartless mind.

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19:51Earlier this month, meta platforms rolled out Muse, their personal AI agent. So I've been number one on Apple's App Store since September 18th. Today, they're expanding it with Muse for Small Business. Same concept, except it helps business owners automate things on the much more lucrative enterprise side. I think this could be huge for customers and for Meta shareholders. How's it work? Earlier, I got a chance to speak with Dina Powell-McCormick. She's Meta's president and vice chairman. Take a look. Dina McCormick, welcome back to Mad Money. Thank you so much, Jim. I'm so delighted to be with you.

20:26Well, I'm very excited that you're here, particularly because the number one app for days now has been Muse. Tell me about it and tell me about your involvement. Sure. Well, we are so excited about Muse. It is really taking off. As you said, it's the number one downloaded app on the App Store. Millions of people have downloaded it. And frankly, it is so different than any other AI product people have used. Usually you're asking the models a question. In this case, Muse is working for you. We like to say Muse is hustling every day and working for the people that are behind it. And we are seeing so many use cases.

21:00People are having fun with Muse. People are planning their kids' birthday parties, booking their travel. It's really just been exciting to see. Well, I've always looked at you, maybe because I worked at Goldman, as the person responsible, perhaps the most success of the toughest category in America, the one that fails nine times out of ten small business. How can Muse be taken advantage of by a small business person? Sure. Well, I had the honor of working on a great team at Goldman Sachs that launched 10 ,000 small businesses. Couldn't be more proud of where it continues to be today. And I'm really proud to exclusively on Mad Money launch Muse for Small Business.

21:40It is the next iteration of Muse. It's basically allowing small business owners to take the most precious thing they have, their time, and to use it on building their business for the future, not worrying about the back office work. So it is starting customer conversations. It manages cash flow and inventory for small business owners. We're seeing small business owners have it design its website and actually communicate directly with its customers. And so we're just thrilled. And for us, Jim, we have 200 million small business owners on our platform at Meta. 200 million. And that really means we have connectivity with so many of these small business owners that are now going from using our products to operate them, to advertise their goods on them, on the platform, but now to actually have Muse for Small Business hustle and work for them every day.

22:33Well, look, I have to ask you because that has been an incredibly large position for my travel trust since it came public. What I need to know is how Muse makes money for Meta. Sure. Well, take a step back. I mean, we are very proud and hope that people see that Meta is a great long-term investment. When you think about what we bring to the table, 3.6 billion, with a B, people are on our platform every single day. 200 million small business owners, as I mentioned. And we have a core business that, as you know, is really growing, and we're very proud of that. And these artificial intelligence products coming out of our MSL lab are only making the core business stronger.

23:13And so we're really thrilled. Now you're seeing us grow into these products like Muse. And of course, we're thinking about monetization. Muse right now helps a lot of people save money. And so we're thinking through, as Mark described last week, a potential of taking a fee when we help you save money. And we're already seeing people that have downloaded Muse are so excited to use it even more. So the more you use it, we may have opportunities, obviously, for subscriptions as well. OK, so you mentioned AI and I've talked with you back and forth about what we think should be done by data centers when they move into town.

23:48And you've got a plan that if everybody did it, we'd mean a lot more jobs, a lot more growth for the country. And I just want you to explain it to people because nobody else in your business has it. Well, I would say that we have to start again here with the fact that not every community wants a data center. We have found partnerships across the country in states where we really partner with the local leadership. And we have a compact everywhere we go. Not only do we promise to pay for our own electricity, we actually drive electricity costs down. In Richland Parish in Louisiana, a town of 20 ,000 people, our investment grew the tax surplus revenue so much that every teacher in Richland Parish got a$50 ,000 bonus.

24:32The superintendent, Sheldon Jones, actually recently told me he used to have a hard time attracting teachers to come to Richland Parish. Now every teacher in the state wants to move there. He's going to end up with the best school district in all of Louisiana and small businesses. It's remarkable when you go into a town with this much of an investment and economic development, you see small businesses doubling their revenue and their employee base. OK, so let's say everyone had news in Richland Paris. How would they grow their business? What do you think? How would they save time? So we're seeing a lot of small businesses do a unique set of things.

25:08I mentioned designing their websites, but they're actually you're you are able to tell your news to go talk to your customers, bring you back the feedback of what they want and implement some of the feedback. Obviously, we are partnering with Shopify, with Slack. And so we're actually bringing those products on the Muse platform right now. And so small business owners are managing all of their inventory. It alerts them when something is down. And then you can actually have Muse go buy what you need to keep your inventory up. So we're just so excited about Muse for small business. I want to be sure of something because it's a little confusing to me.

25:43For Muse, my plan was I would go to Amazon and ask it a question about, show me the best raincoat that has got the highest rating, whatever. But that would be in the world of Amazon. Would it be better to do Muse to maybe even if it separates me from the Amazon world? I'm not being obtuse about this. I mean, I have fun with Amazon. It's always worked for me. Well, Muse does a lot of what our product partners, by the way, we're so thrilled to be partnering with Walmart. I mentioned Shopify and others. And frankly, you can use Muse for a lot of those tasks. I used it this weekend. I'm trying to buy my mom a car.

26:18And I put in exactly what kind of car she wants. I tested the safety. I asked it to go scan every website that sells cars about an hour in her radius in Plano, Texas. It brought me back three of the exact models that I was looking for and found me the cheapest price. So you can use it for so many different things. But what's different, and this is important, Jim, is it's not just giving you back research or feedback. It's going to go buy that car for my mom. It's actually acting on behalf of what I'm saying. You don't have to go to the dealership. Well, she has to go to the dealership. She asked, but the idea is that it's a little complex process.

26:53I could do that full transaction. And how about entertainment? Oh, well, actually, this is an interesting thing. Dave and I have six daughters between us. Every time we want to watch a movie together. Dave is Senator McCormick of Pennsylvania. Yes, yes. And we often argue about what movie we're going to watch. And so I used Muse over the weekend as another example to pull up what are the top 100 movies that we should watch and kind of got a vote going. Now, I know that there's some people who think that it surveils you, but it doesn't do anything you don't give it. Well, first of all, safety has been paramount, both in this product and everything that our AI lab has developed.

27:30Mark has made that extremely clear, that you can't have a product that isn't safe and secure. He even talked about that last week when he said that we delayed the launch by 30 days because we wanted to ensure it was absolutely as bug free as possible, extremely safe, of course, encrypted. And so we're very proud of how safe it is today. So I'm trying to figure out whether there's a what time is worth. For instance, the calendar is you. Right. I am my calendar. And if it can organize my calendar in a way that tells me, say, what the weather is going to be. I came back from Italy. I wanted to know everything.

28:05I want to know what the what the best route home. I was just guessing. Yeah. Right. It ends the guesswork. Now you can use your muse, Jim. You can say, tell me what my calendar is. I need you to cancel these three meetings and get other times that work for the people I needed to meet with. Tell me what the weather is so that I can know what to wear. But again, it's acting for you. And if you give it permission, it's going to be able to communicate with your team, reschedule meetings, bring you the deck that you need for every single meeting. It really is kind of your friendly assistant. Well, I think speaking of a friendly assistant, I want to bring in someone who is real life, real life.

28:41Well, before Henry comes in, can I give you a little surprise? Why not? Okay, here we go. These are meta glasses, custom meta glasses for you. Fly, Eagles, fly. And you know what? I can't thank you enough. Last time I saw Senator McCormick, it wasn't an Eagles game. But it's not whether he's a Pittsburgh fan or anything. Well, I'm going to no comment on that. He loves all Pennsylvania teams. He did grow up as a Steelers fan. Yes, he did. But we love all Pennsylvania teams. Yes, we're so excited to give you those custom glasses. Oh, that's sensational. Well, I'm good, and I will wear them. I was also hoping you would give me, but I'm going to buy the ones, one six.

29:20Mark was correct. One out of six people have a hearing problem. I blew up my ear a long time ago, and I need to have glasses to be able to do it, and I know you've got that. We will get you another pair. No, I mean, I want to get them fitted. Oh, yes, yes. People are embarrassed. I'm not embarrassed. I have it. I wear it. I blew up my ear drum years ago. And I'm just sick and tired of being embarrassed. Sure. Well, why should you be? One in six Americans have hearing loss. But it is nice to have glasses sometimes if you don't want to wear a hearing aid and you're able to be in the world. Well, why don't you introduce me to your friend and tell me?

29:52Henry. So excited. Henry actually has been working with us for years in our small business working group to kind of give us advice on products and how to make them better. and we're so delighted that he is one of the first people in the country that used Muse. Maybe tell Jim and everyone about your business, Henry. This is Henry Bennett, who is from Delaware, a couple hours below Philadelphia, and has got a thriving, what, sixth-generation peach business. Yes, thank you, Jim, for having me. Thank you, Dina, for having me here. I'm Henry. I'm with Bennett Orchards. I'm a sixth-generation farmer, and we sustainably grow peaches, blueberries, and nectarines in Frankfort, Delaware, which is about seven miles from the coast.

30:31Okay, so my first reaction when I heard a farmer, I said, oh, come on, a farmer? I mean, I understand I was a restaurateur. I could have used this thing before we had to sell our restaurants. But how's a farmer use it? Well, when I first started beta testing this product, I asked it to revise our website. Here's our website. I'd like to give it a refresh. It did that within a matter of minutes. I then went on to give it a more complex task. As we've seen along the East Coast this spring, drastic temperatures during the spring have wiped out entire crops. So I input thousands of Excel logs, and it was actually able to compile graphs of frost mitigation methods that I was able to share with industry colleagues and stakeholders across the Mid-Atlantic, allowing us to see which type of frost mitigation technologies to incorporate moving forward to prevent these types of issues.

31:20So grow the business, save more money, hire more people. Well, where does it take you? Well, first and foremost, I'm a farmer. My job is to grow food that we distribute within our community. My job is not to do back-of-the-house office work, and it seems like there's a lot more paperwork that comes along with my job every year. Muse handles things in a matter of minutes that used to take me weeks to do so that I can get back out in the field, do what I love, which is growing more and more food for our community. More time that I'm spending in the field, less time I'm spending in the office is more fruit that's grown for our nation.

31:54And how much time have you gained to do actual work because of Muse? Every day I find something that I can delegate to Muse, so I'm gaining hours back every day. It's hard to quantify at this point because I've only been using it about a month, but at least two to four hours a week, and that's just the beginning. Dean, I know you as someone who I believe, and I've said this to Lloyd Blankfein and Goldman, you've created more jobs than anybody else in America. No, I believe that. That's one of the reasons I've always respected you. Now, I really wish my girls were watching this. Well, they ought to.

32:25When you're listening to what Henry's saying, how in common is that with the thousands of small businesses you've helped? Honestly, we keep hearing that it's just saving me. Even if you save me an hour a day, that helps my business grow so much. And this idea that Henry is not in the back office, he's literally in the field on the farm, is transforming his business because he's really able to grow products better, to deal with customers. And we are hearing that from business after business, that they're gaining one, two, three hours back every single day. And time is money and time is value. That is very hard to even imagine how much it's going to help them.

33:04Okay, so I listen to you, and we watched the rest of the past, and we listened to what Henry's saying. You asked the average American reader about AI. I think they're thinking, mm-mm, not good for our country, not good for people. getting laid off, whatever. I mean, what? Where's this weird disconnect between the things that you guys say? And when I mention people, I like AI, and they look at me like, oh, yeah, well, sure, some rich joker says that they like AI. Yeah. You know, I think with any new technology of this scale and scope, there is going to be a level of concern. I mean, this is the most transformative technology of humankind, basically, and it's going very fast.

33:41And so I understand that. Even my own daughters, you know, are anxious about what this will mean for their future. And I think we do need to do a better job, Jim, honestly, about talking about the fact that super intelligence for human beings is going to transform their lives. So many people will be able to reach their potential in a way that we've never seen before. If we democratize super intelligence and everyone has access to these products, to these models. I mean, I know you're going to become a Ph.D. in English literature using Muse. But seriously, the access to education, health care, medical advances, I believe, as Mark Zuckerberg has said many times over, the future is for everyone.

34:19But the future will only be for everyone if we really share this technology. I want to leave it at that because it's a positive, constructive, constructive moment that's really important for your company, your company, our franchise, and yes, the nation. That's Deanna Powell-McCormick, President and Vice Chairman of Meta Technologies, and Henry Bennett of Bennett Orchards. Thank you so much. Thank you, Jim. Thank you. Coming up, is BWX Technologies the stock to own in our energy-hungry world? Kramer's asking the top brass next.

35:01Here's a bit of a puzzle. Well, what the heck happened to the stock of BWX Technologies? Defense contractor, nuclear energy play, makes the reactors powering our submarines and aircraft carriers. After a huge multi-year run, the stock's been clobbered. It's down 27 % over the past few months, part because the latest quarter came in somewhat weaker than expected when they reported on August 3rd, although I could say it's really one or two lines. All the rest were good. Today, though, the company held a very good analyst meeting, laid out some really bullish long-term targets for 2030. We've got to discuss that.

35:29Can the stock get its groove back? Let's check in with Rex Jeveden. He's the president and CEO of BWX Technologies. Right now, guys, welcome back to the show. Thank you. Glad to be back. I'm glad you're here in person because I want you to lay out what you said in the investor day from now to 2030 because I want people to think longer than the next three months. Yeah, sure. So one of the things that we talked about, Jim, is that we're going through a super cycle in demand for nuclear power. We believe that we're in the beginnings of that. What feels like a drip right now, I think it'll eventually be a flood for commercial power.

36:02because of all the demand that we see on the electrical grid. And we've talked about this before, but it starts with the decarbonization of the grid. Nuclear is the solution for clean baseload power, electrification of everything, transportation, industrial processes. But then, of course, AI brings this new signal to electricity demand, and we feel like nuclear is going to be the solution for that. So long multi-year run we see ahead. Well, do you think it's possible that your company, which is a solid company, it's been around for a long time, got caught up in some sort of like almost a mania about nuclear power and it's deflating, but it doesn't make your business any worse?

36:42I thought that the stuff that you laid out, all the goals you had and the quarter were very strong. No, thank you. You know, I don't think our stock price reflects any issues around company performance. We've been operating really well. We've been driving up margins this year. Our growth has been spectacular. It's 19 percent year over year. Our three year growth CAGR that we that we that we targeted at the last investor day, which mid mid single digit revenue growth, we delivered 15 percent, as it turns out, of which eight and a half percent is organic. So the growth has been the growth has been spectacular.

37:17Margins have been good. And our backlog, our backlog, notably, has gone from four billion from our last investor day 32 months ago to eight point four billion today. So we're seeing demand in all parts of the business, converting that into backlog. And that sets us up for a really good growth trajectory all the way out to 2030. So we're very, very confident about the performance of the business and very proud of the performance of the business. OK, so what percentage of that is Navy? What percentage government? What is percent of of what I think most people want to see, which is what the president was talking about?

37:48I can call it super intelligence. I can call it data center. But I know that is the inflection. Right. So if you break down our business by segment, it's about still about 70 percent national security. And that's very important because that's going up. I don't want people to think that. Well, I mean, your Navy sometimes be thought, but I mean, the general sec is still secular growth from the government. Oh, it's pretty incredible the way that growth is expressing in so many different dimensions. I mean, it starts with the naval nuclear propulsion, recapitalization of the nuclear triad. But we've got a great franchise and special nuclear materials that's unique for us because of our Category 1 licenses.

38:26And so we've got decades of growth ahead there on the government side of the business. 30 percent of the business is commercial, but that's the fastest growing business. You look at that mix five years ago, it was 80-20. And in fact, when we spun as a public company 11 years ago, that was about one hundred and fifteen million dollar business. It's a billion one today. So we're seeing growth all over the place. So let me ask you, I periodically hear new commitments to nuclear. And yet I've yet to see someone finish a nuclear power plant in time. And people say, you know what, that's darn good. And let's put up some more.

39:05Well, so we haven't built nuclear plants in a long time in the U.S., obviously. We lost the technology. I mean, some of these guys still know how to do it, right? I think so. I mean, but the nuclear industry, of course, kind of hit the pause button for about 30 years. Now, the exception to that is BWXT because we delivered so far 425 of these exquisite small modular reactors for the nuclear navy. So we kind of never went away. Our supply chain was still there. We were delivering reactors, two or three reactors a year to the nuclear navy. And so we carried on with that. Now, we're starting to see new nuclear builds in North America.

39:42There was the small modular reactor project up at the Darlington side in southern Ontario that Ontario Power Generation is doing. TerraPower is working on a plant in Wyoming. Obviously, TVA is preparing at Clinch River. In fact, they got their construction permit today. So we're seeing the green shoots of growth. Now, what I would say about it is there's a lot of capital that chases nuclear technology, but I think you hit the nail on the head. What we need to do is get delivery right because capital costs and cost of capital really drive the nuclear investment decision. So we've got to deliver those those reactors more quickly, more economically and make the business case better.

40:18And we're seeing innovation in the delivery side of it right now. Well, that's why I wanted people to think about 2030, because no one ever said this technology is a flick of switch. But no one's ever said it isn't the cleanest technology out there. The people that have decommissioned, every country regrets it. And I think that we're going to be doing, we'll be, other than China, the leader. It'll be your company that's doing most of it. I hope so. I mean, we're facing the market as a merchant supplier, so we're involved with every type of reactor technology at grid scale. And we have our own technologies for micro-reactors.

40:51We participate across the full value chain from the from the fuel cycle on the front end to disposal and and management of complex nuclear waste streams on the back end. So I've often said that we're betting on the race here, not on the horse. Very good. And so so we like where this where this market is and we expect it to grow. And and we hope investors come along with us. OK, now, when everyone look at the deck, it's very comprehensive. There's a lot of great charts. You'll understand what parts Navy, what parts government and what parts commercial, where the excitement is, where the steadiness is, and it's quite impressive.

41:23That's Rex Jeveden. He's the president and CEO of BWX Technologies, which is the only nuclear power stock that I endorse mid-money spec.

41:38It is time for the Lightroom Coach Retro. About how cost the statement stocks said about by buy, sell, sell, just because I don't know the course. Stock questions at that time? My staff prepares the clamps on the fly. When you wait on this, hear the sound. And then the lightning round is over. Are you ready? Keep that. All right. We're going to start with John. John. Hey, love the show, Jim. Oh, thank you, John. Yeah. What do you think of the stock from a FRMI? I wish it. I wish it. It should never have come public, frankly. It's the kind of thing that got caught up in the mania. It came public, lost people out of money.

42:12Don't let it lose any more money. Let's go to Ken in Florida. Ken. Hi, Jim. This is Ken in Miami. I want to thank you for all you've done for us home gamers over the decades. Thank you. That's the goal. This$36 billion market cap South Florida company always has had consistent high growth and a strong balance sheet to justify its high PE multiple. Since its high of 377 on August 6th, the stock has fallen 16 percent. Any thoughts about Heiko? Well, I like Heiko, but do I ever hate the aerospace sector? I mean, I am suffering with the Boeing for my travel trust. I don't want to put anybody anywhere near anything aerospace right now.

42:57We have to have oil down. Let's go to Stephanie in New Jersey. Stephanie. Thank you, Jim, for taking my call. Of course, Stephanie. I want to first tell you I read your book and I loved it. I joined the Investing Club. Yes. And you inspired me to open an account and to start investing. and I am beating the S &P 500. So thank you. All right. All right. That's great. Remember, we want to do both. We're not purists. We want index funding. We want individual stocks. The index people don't want you in any individual stocks because they don't think that you know what you're doing. You obviously do. Let's go to work.

43:30Yeah. So I have a stock, one stock that's down 40 % this year, and I don't know if I should buy, sell, or hold. QXO Inc. Frat Jacobs. You know, Frat Jacobs. But I am very surprised this thing. Look, it's a housing play. It's a roofing play. I can't go against Brad. He's been too successful. But, man, it has been. What can I say? Let's go to John in New York. John. Jimmy Chiu, how are you? Long time caller and listener, buddy. Glad to have you on. What's going on? Thank you much. Looking at a market cap of just about$13 billion. daily volume over$770 million. What do you think about the company, Graham?

44:18Man, I don't know what to turn that thing around. A$3 stock, stocks do stop at zero. That's one of the best things I know about common stocks. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab.

44:44Sometimes it just hits you as you're talking, as you're asking questions, that the real story is different from what you thought. And that's how I feel after speaking with Meta's Dina Powell McCormick and Henry Bennett, that Delaware peach farmer. For years, the strength of Meta was the popularity of Facebook, Instagram, and Reels with regular people, which brings in endless revenue. There's just one problem. Main Street may love Meta's product, but Wall Street has a distaste for anything that relies on the consumer, especially advertising. Because that's known as a very cyclical business, and that is or has been met as bread and butter.

45:15Instead, Wall Street loves the enterprise. That's why I got so excited about this MetaMuse for small business platform. They can tap a giant universe of 200 million small businesses that will be heavy users who will pay for Muse. That's because we heard earlier, Muse makes you more productive, could save you nine weeks worth of work, allows you to hire more, allows the company to scale, and of course, make more money. Consumers may love it, but they may not pay much for it. We know from looking at Apple App Store numbers that Muse has already hit with the consumer, but from Wall Street's perspective, small business is where the money is.

45:46Enterprise customers keep coming back. That makes me think that Meta is changing right in front of our eyes. It's going from a cyclical company based on ads to a partially secular grower with more exposure to enhancing small business. Meta is now joining the colleagues in Magnificent Seven that have both enterprise and consumer sides. So as it scales, its price range multiple, what I call the secret sauce in how to make money in any market, the multiple will grow with it. Wall Street's always willing to pay a higher multiple for enterprise business, and they will do so with Meta. A long time ago, I learned that small business is the engine of the economy.

46:22Now, most small businesses fail. I think Muse will lower the failure rate. Wait, most small business people don't know how to scale their operations. Muse can change that. Most small business people don't have time to learn the rules. The government, any government can wipe you out overnight if you don't know the lay of the land. I learned that pretty much every month painfully. In the decade, my wife owned Bar San Miguel in Brooklyn. Of course, she had to give it up to own a liquor company, Fosforo. We didn't have Muse back then. It would have saved us so much more money at the bar. Now management uses Fosforo uses it every day.

46:54Sticky, repeat business, scale, the enterprise. In other words, keep buying the stock of Meta. With this small business kicker, I think you can go a lot higher, even as it has already had a remarkable run. I like to say, as always, a bull market summer. I promise you, I find it just for your radio mid-money. I'm Jim Cramer. I'll see you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

47:25You 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 Mad Money Disclaimer. Real talent is defined by what people can do, not where they learn to do it. So by stopping at the education section of a resume, you might throw away the perfect hire.

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