Feb 3, 2026 · 44 min
Cramer says market leadership is rotating beyond the mega-cap trade
Mad Money w/ Jim Cramer 2/2/26
January’s market action suggests investors are reassessing smaller companies, sector leadership, and whether AI threatens established software businesses.
- 1The Russell 2000 led January’s market, signaling a shift in leadership beyond the largest U.S. companies.
- 2Cramer links enterprise software weakness to growing investor fears that artificial intelligence could disrupt established business models.
- 3He argues the Magnificent Seven label obscures sharply diverging businesses, performance, and prospects among its members.
Don't miss
Cramer uses his experience writing obituaries to declare the Magnificent Seven label over and explain why the group no longer fits.
The brief
Cramer opens by warning viewers not to let misleading headlines or false negative signals force premature investment decisions, framing the show as a corrective to market noise.
January’s market review centers on the Russell 2000’s strength, shifting sector leadership, and a market environment less dominated by the biggest technology names.
The month’s weakest stocks expose a sharper concern: investors increasingly question whether artificial intelligence can displace established enterprise software businesses.
Stock calls range from Dollar General’s operational turnaround to Marvell’s specialized-chip business and Axon’s failed move higher, where Cramer advises taking gains.
The standout argument arrives at the end: Cramer declares the Magnificent Seven label obsolete because its companies now have increasingly divergent businesses and prospects.
What was said on this episode
39 statements · 21 positive · 15 negative · 3 mixed
Natural-gas price declines benefit households using natural-gas heating
“This decline is fantastic for every home that's heated by NatGas.”
Listen at 2:47
High silver prices hurt the economy, while rapid declines benefit it
“Expensive silver is a clear negative for the economy. On the other hand, a rapid decline is terrific for the economy.”
Listen at 3:41
Bitcoin declines could severely strain Strategy because of borrowed-money purchases
“The only real fallout might be severe strain in a company called Strategy, which has bought a lot of Bitcoin with borrowed money.”
Listen at 4:06
S&P 500 futures incorrectly fell despite positive commodity reversals
“The S&P futures should have been higher, not lower. They were just clearly wrong.”
Listen at 4:38
Oracle’s financing deal was already heavily oversubscribed
“the deal was already wildly oversubscribed.”
Listen at 5:21
Memory and storage companies face insufficient supply to meet customer demand
“These companies are trying to allocate product to their customers because there's just not enough to go around. That's a good hand.”
Listen at 7:24
Cramer does not think NVIDIA is bad but would say so if it were
“I don't think it is, but I will.”
Listen at 7:53
Dollar General’s store operations remain excellent
“Dollar General was terrific. And you know what? It remains terrific.”
Listen at 9:53
Memory and data storage is currently the strongest bull-market sector
“This memory storage sector is the hottest bull market around”
Listen at 12:00
Future production capacity may make high storage prices difficult to sustain
“once more capacity comes online, it might be hard to maintain these sky-high prices.”
Listen at 13:33
Investors should build a Lam Research position gradually
“Put a quarter of the position on if you want to buy Lambert Church and then leg in. I think it's really worth doing.”
Listen at 14:19
Moderna is deeply unprofitable and likely will remain so for years
“Moderna remains deeply unprofitable. It's likely to remain that way for years to come.”
Listen at 15:10
Lockheed Martin may have further upside
“I wouldn't be surprised if it's got more upside already.”
Listen at 15:50
Bunge may be undervalued at 13 times estimated earnings
“maybe Bungie still looks pretty cheaper, trading just 13 times this year's earnings estimates.”
Listen at 16:19
SLB may have durable strength among energy stocks
“If any energy stock has staying power, it could be SLB.”
Listen at 17:10
Intel’s weak guidance reflects supply constraints rather than weak demand
“There's no problem with demand at all.”
Listen at 17:51
Intel’s stock has further upside potential
“I think the Intel's got more upside.”
Listen at 18:06
Investors fear AI will severely damage AppLovin’s business
“Wall Street's terrified that AI will eat Apple of it alive.”
Listen at 20:05
Cramer recommends avoiding AppLovin stock
“I don't want to own the stock.”
Listen at 20:23
ServiceNow and Salesforce may be oversold and are preferred enterprise-software choices
“At this point, you could argue that there's some overshooting on the downside. If you believe in this industry, I'd recommend going with ServiceNow or Salesforce.”
Listen at 22:33
Humana and Medicare Advantage insurers are currently uninvestable
“I think it really is spells like I don't say the end of anything because these are smart companies, but you can't touch them.”
Listen at 23:56
Investors should buy Constellation Energy during price weakness
“I do think Constellation is worth buying into weakness”
Listen at 24:22
The Trade Desk is not worth its investment risk
“I think it's just not worth the risk.”
Listen at 24:50
Wynn is preferred for a potential gambling-industry rebound
“I'd rather do it with a company that gets most of its business from the United States. I do like Wynn, for instance.”
Listen at 25:27
Marvell is an excellent but derivative semiconductor company
“They are an excellent company, but they are a derivative company.”
Listen at 26:16
Marvell makes some of the world’s best specialized chips
“They make some of the best special chips in the world”
Listen at 26:28
Axon shareholders should reduce their position again
“I want you to trim it again”
Listen at 27:41
Axon’s rapid reversal indicates the stock remains overextended
“The fact that it erased that gain very quickly tells me it's still too heavy a stock.”
Listen at 27:47
Bitcoin below roughly $73,000 would sharply increase speculative-stock selloff risk
“If we break down below 73,000 into boys, I look at it all weekend to see if we can get close to that. And then all bets are off and the risk of a sharp, disorderly sell-off in the most speculative stocks goes through the roof.”
Listen at 34:05
Investors should reduce exposure to highly speculative stocks
“I need you to cut your exposure to these things.”
Listen at 35:34
Centrus Energy’s stock is unjustifiably under pressure
“This stock's been under pressure for no particular reason.”
Listen at 36:42
Investors should sell Teladoc because it lacks an ownership case
“Just get rid of it. I don't see any reason to own it.”
Listen at 37:08
Spirit Airlines is an attractive company
“I think Spirit's great.”
Listen at 37:41
Cramer has a negative view of Dillard’s
“I just don't think that much of it.”
Listen at 38:27
The Magnificent Seven grouping is no longer a meaningful category
“I'm pronouncing it dead tonight. Why? Because the grouping no longer makes sense.”
Listen at 39:40
NVIDIA’s pause may precede a major upward move
“I think NVIDIA is taking a breather, which is usually what you see before it makes a gigantic move.”
Listen at 40:21
NVIDIA appears attractively valued and poised for a move
“The darn stock now trades at just 24 times earnings. I call it a coiled spring.”
Listen at 40:25
Alphabet may substantially exceed earnings expectations
“When Alphabet reports on Wednesday, I think you can blow away the numbers.”
Listen at 40:51
Amazon may report strong results this week
“Amazon reports this week. I'm optimistic that maybe it could do a good number.”
Listen at 42:03
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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