Nov 7, 2026 · 45 min
Cramer questions data-center stocks as SpaceX weighs promise against risk
Mad Money w/ Jim Cramer 11/6/26
The episode tests whether investors should keep backing AI infrastructure and speculative growth while market weakness, political risk, and financing pressures mount.
- 1Cramer sees continued pressure in data-center and technology shares, urging diversification toward established companies with stronger earnings.
- 2SpaceX offers compelling growth across Starlink, space, and AI computing, but capital needs, debt, politics, and locked-up shares delay his entry.
- 3Papa John's CEO Todd Penninger outlines a turnaround centered on execution, technology, franchisee support, and lessons from the United Kingdom.
Don't miss
Cramer lays out why SpaceX could become a major growth company, then explains why capital intensity, debt, politics, and locked-up shares keep him waiting.
The brief
Cramer opens after a brutal week for stocks, arguing that weakness in data-center and technology shares may persist despite a brief rebound.
The week ahead brings earnings and economic data tied to power demand, debt, inflation, AI infrastructure, and consumer businesses, sharpening the market’s fault lines.
SpaceX makes the strongest bull-case segment: accelerating revenue, profitability, Starlink growth, expanding compute capacity, and ambitious wireless and AI plans.
Yet Cramer is waiting, citing enormous capital expenditures, debt financing, political uncertainty, a possible Tesla merger, and a large supply of locked-up shares.
Papa John’s CEO Todd Penninger describes an Unbox Better turnaround built on food and restaurant execution, technology, franchisee support, and local marketing.
The closing message is defensive but selective: reduce exposure to vulnerable data-center investments while favoring established companies with clearer earnings and growth.
What was said on this episode
51 statements · 26 positive · 24 negative · 1 neutral
Market volatility will continue
“we are not done with the volatility”
Listen at 1:14
The market rebound was temporary
“I felt like it was a dead cat bounce”
Listen at 1:53
Data-center stocks face substantial latent selling pressure
“there are plenty of sellers lurking just waiting for the bedraggled data center stocks to make a bigger recovery so they can. Get out now.”
Listen at 2:04
Strong payrolls indicate a robust economy
“The nonfarm payroll support this morning was very strong, which leaves no doubt the economy's humming.”
Listen at 2:14
Constellation slowing power-station plans could trigger data-center stock selling
“If they say that, the data center stocks could see a fresh wave of selling.”
Listen at 2:59
Investors should avoid the athletic-footwear category
“I'm going to take a pass on this one.”
Listen at 3:24
Lower inflation is necessary to avoid further rate hikes
“inflation must come down if we don't want more rate hikes”
Listen at 3:30
A dramatically lower CPI reading is unlikely
“I don't think that's likely.”
Listen at 3:48
CoreWeave's debt costs are excessively high
“The cost of their debt is now sky high, too high.”
Listen at 4:02
CoreWeave public bonds carry mid-teens interest rates
“the mid-teens interest rates for their public bonds”
Listen at 4:14
Nebius is potentially the most important neocloud report
“this one might be the most important”
Listen at 5:06
Delayed or over-budget Nebius sites would be unfavorable
“what I don't want to hear is that the sites they're building are coming in late and over budget”
Listen at 5:22
Cisco shares are currently oversold
“I think Cisco has gotten oversold.”
Listen at 5:53
Chuck Robbins will deliver strong Cisco results
“I think Chuck Robbins is going to deliver.”
Listen at 5:55
Cisco stock is undervalued
“I think the stock's actually cheap.”
Listen at 5:57
Investors might buy Cisco shares
“it might be worth buying some”
Listen at 5:58
Applied Materials should not be bought without stellar earnings
“Not if the earnings aren't stellar”
Listen at 6:38
Kraft Heinz CEO Steve Kaelin can create shareholder value
“I think this man is a moneymaker. I think he has a plan to bring out value.”
Listen at 7:03
Persistent inflation could keep the Fed restrictive
“We don't want to give the Fed chief any ammo to stay tight.”
Listen at 7:29
Starbucks has been a successful investment
“that's why I went to Starbucks, which has been a big winner.”
Listen at 8:51
Investors should avoid AT&T because newer competitors threaten it
“I think that Elon Musk is a vicious competitor. I think ATT represents old and he represents new. So I am going to say you should not own ATT.”
Listen at 9:30
Investors should limit data-center exposure because another decline may occur
“you cannot be what we call overweight these companies that are involved with the data center because we could have another downdraft.”
Listen at 10:26
Google pays SpaceX $920 million monthly for GPU access
“Google is paying $920 million per month for access to SpaceX's NVIDIA GPUs.”
Listen at 17:19
Anthropic's SpaceX compute payments will reach $3.1 billion monthly
“It's going to reach $3.1 billion per month by December.”
Listen at 17:35
SpaceX stock is cheap relative to 2028 earnings
“this stock is actually very cheap, trading it over 16 times the consensus 2028 EPS estimate”
Listen at 19:43
SpaceX revenue guidance exceeded expectations
“SpaceX's revenue guidance was far higher than expected”
Listen at 21:09
A potential SpaceX-Tesla merger would combine two very large companies
“a merger between the $1.8 trillion SpaceX and the $1.4 trillion Tesla”
Listen at 22:27
A SpaceX-Tesla merger would complicate the investment story
“would still be extremely complicated and introduce a lot of noise to the story”
Listen at 22:34
New SpaceX share supply could overwhelm near-term demand
“that supply short term could overwhelm demand”
Listen at 24:02
Additional SpaceX share supply may create a better buying price
“I'll be able to get a better price for SpaceX as all that supply hits the market.”
Listen at 24:56
Cramer is not yet ready to buy SpaceX
“I'm not ready yet to take the plunge and buy the stock.”
Listen at 27:24
Papa John's restaurant technology rollout will continue through 2027
“that work is rolling out through the course of 2026 and into 2027.”
Listen at 30:54
Papa John's markets with co-ops outperform by several hundred basis points
“we're seeing a couple hundred basis points of margin and sales outperformance from the markets that don't have the co-ops.”
Listen at 33:46
Papa John's UK business grew 7% quarterly and 16% over two years
“we were plus 7% last quarter and plus 16 on a two-year”
Listen at 34:44
Papa John's can replicate its UK turnaround in the United States
“the recipe and the turnaround that happened in the UK over the last two and a half years. is a big part of the recipe for success that we can replicate here in the US.”
Listen at 34:50
Papa John's turnaround plan is working well in the UK
“I like that plan. They did it in the UK. It's working well.”
Listen at 35:22
VF Corp stock could rise six or seven points
“I think he can be up six, seven points.”
Listen at 36:40
Investors should avoid Trinity Capital because its holdings are unclear and yield is high
“when I see a yield of 11 and a half, I get nervous. Second, I don't know what they own, so I can't opine on it. I'm going to have to say take a pass”
Listen at 37:11
JPMorgan Chase shares could generate substantial returns
“I think if you wanted to own it right now, I think you'd make a lot of money.”
Listen at 37:56
Ameriprise Financial is a buy
“I like your call. Let's do some buy.”
Listen at 38:28
Cardinal Health is expected to present a strong story at the conference
“I think he's going to tell a great story at the J.P. Morgan January Health Day Conference.”
Listen at 38:58
Investors should retain most Cardinal Health shares
“Got to keep most of it. Cardinal else a winner.”
Listen at 39:01
Cramer does not recommend buying Netflix
“I'm not a buyer.”
Listen at 40:00
Ross Stores is currently the strongest off-price retailer
“Ross is the best in the street right now.”
Listen at 40:23
Chevron is the top oil company and a buy
“Chevron's the number one oil company in the world. That's the one to buy.”
Listen at 40:44
Investors should aggressively buy Nvidia if Musk is right
“you should be buying the stock of NVIDIA hand over fist.”
Listen at 41:42
Political opposition will slow and reduce new data-center construction
“I think it's going to be a slog to get new data center sites cited and that we won't be building as many of these as we thought.”
Listen at 41:54
“I think it's feasible to believe that the old rate could be reinstituted.”
Listen at 42:24
Restoring the old tax rate would raise taxes 67% and cut after-tax profits 18%
“that would be a 67% increase in the corporate tax rate. It would reduce after-tax profits by 18%.”
Listen at 42:29
Semiconductor stocks may face future price-target and estimate cuts
“Price target and estimate cuts for semiconductor stocks that haven't yet happened.”
Listen at 43:10
Investors should reduce vulnerable data-center stocks and diversify
“it's reckless not to cut back on these stocks and diversify into other growth areas”
Listen at 43:39
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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