Aug 13, 2026 · 44 min
Cramer tests market expectations against company fundamentals
Mad Money w/ Jim Cramer 8/13/26
The episode examines how investor expectations can overwhelm strong operating results as the data-center boom reshapes market judgments.
- 1Cisco’s selloff shows how guidance and elevated expectations can matter more than an initially positive earnings reaction.
- 2Brinker’s growth rests on Chili’s traffic, value pricing, premium offerings, and post-pandemic restaurant momentum.
- 3Stanley Black & Decker is pursuing a focused transformation through professional construction, debt reduction, and U.S. manufacturing investment.
Don't miss
Cisco’s initial after-hours rally turns into a steep selloff, prompting Cramer to explain how expectations and guidance can outweigh operating performance.
The brief
Cramer frames the data-center boom as a test of investor discipline, using questions about Intuitive Surgical and Solstice Advanced Materials to examine competitive pressure and acquisition-related concerns.
Brinker International’s strong quarter leads to a conversation with CEO Kevin Hochman about Chili’s traffic, value pricing, premium offerings, marketing, food safety, and sustained post-pandemic growth.
Cisco’s sharp reversal after earnings becomes the episode’s central market lesson: expectations and guidance can drive a selloff even when the underlying business appears solid.
Chris Nelson outlines Stanley Black & Decker’s transformation around professional construction, core brands, debt reduction, dividend safety, tariffs, reshoring, and investment in U.S. manufacturing and skilled trades.
The Lightning Round compresses the same discipline into rapid judgments, with Cramer rejecting DXC Technologies as a value trap while favoring HES Midstream, Mercado Libre, Amazon, and Carpenter Technology.
What was said on this episode
27 statements · 18 positive · 6 negative · 3 mixed
NVIDIA chips retain value differently from older semiconductor generations.
“Now, NVIDIA chips are made differently.”
Listen at 3:38
NVIDIA software helps its chips retain value.
“When you buy NVIDIA chips, you're buying NVIDIA software right along with them, and that's the big reason why they hold their value.”
Listen at 4:53
Intuitive Surgical is a good company but Cramer does not want to buy it.
“I think ISRG is good. I don't want to buy it, but I think it's good.”
Listen at 8:49
Solstice Advanced Materials faces acquisition pressure and is unlikely to rise soon.
“I happen to like Solstice Advanced Materials. Here's the problem. It's making an acquisition, and the acquisition is putting a lot of pressure on the stock. I don't expect it to go up any time soon.”
Listen at 9:14
Chili’s value pricing will help it gain market share.
“If you can offer people a great deal like Chili's does, you'll be able to take share in this environment”
Listen at 11:23
Chili’s can maintain low prices while remaining profitable for shareholders.
“we'll be able to keep those prices and make money for our shareholders, and that's exactly what we're doing.”
Listen at 13:23
Chili’s guest experience is at an all-time high and supports continued success.
“Guest experience is at an all-time high, and we're going to continue to win as long as we continue to do those things.”
Listen at 17:34
Cisco’s guidance was likely deliberately conservative.
“Cisco has so much business that this was almost certainly lowball guidance.”
Listen at 20:24
Cisco’s selloff creates a buying opportunity.
“Luckily, it's given you a great buying opportunity. And I think Cisco is absolutely worth buying.”
Listen at 20:32
Investors should continue holding Meta despite its decline.
“Please hold on to Meta even when it's down 24%.”
Listen at 23:39
Motorola is a very good company.
“Motorola is a great company.”
Listen at 23:54
Stanley Black & Decker has shifted toward core brands and professional construction.
“we've really, in the past couple of years, put in a lot of work to transform the company and focus it on not only our core businesses of tools. fasteners and power equipment, but on our core brands of DeWalt, Craftsman, and Stanley, and really focus on that professional, the professional construction market.”
Listen at 26:00
Stanley Black & Decker’s industrial and commercial channel grew double digits and should continue growing.
“Last quarter, that channel, which is our industrial and commercial channel, was up double digits. And we see that continuing on.”
Listen at 27:17
Stanley Black & Decker used $1.8 billion from an asset sale to reduce debt.
“used the proceeds of that asset, about $1.8 billion, to pay down debt. Now our balance sheet is in tremendous shape”
Listen at 28:30
Stanley Black & Decker expects debt-to-EBITDA to reach 2.5 by year-end.
“We had committed to get to a two and a half debt to EBITDA ratio by the end of the year. We're going to be there.”
Listen at 29:13
Stanley Black & Decker expects China-sourced U.S. imports to reach roughly 5%.
“by the end of this year. We'll be at roughly 5% of imports coming from China for the U.S.”
Listen at 30:05
Stanley Black & Decker will invest $60 million in trades education by 2030.
“we're going to be investing $60 million. by 2030 in education, tools and training”
Listen at 32:18
Housing demand should recover eventually.
“I would see that recovering at some point as well.”
Listen at 32:59
DXC Technologies is a value trap without a meaningful competitive moat.
“I regard DXC as a value trap. I just don't see that they have any real moat, that they have anything proprietary.”
Listen at 34:51
The drone industry has become highly competitive.
“I think a lot of companies now in the drone business, it's gotten to be a very competitive business.”
Listen at 35:42
SENS is a speculative investment in a crowded glucose-monitoring market.
“It's crowded, but it's a spec. If you want to speculate, then I bless it.”
Listen at 37:11
UL Solutions is potentially an attractive purchase.
“So I think it's kind of interesting and might be a buy.”
Listen at 37:50
Cramer prefers Mercado Libre and Amazon over Coupang.
“I'd rather buy Mercado Libre, but first, of course, I'd like to buy Amazon”
Listen at 38:12
Carpenter Technology is a buy at its current price.
“I think CarTech is a buy. I would buy the stock right here, right now.”
Listen at 38:55
Investors generally should limit any single stock to 10–15% of a portfolio.
“I tend to not want more than 10% to 15% in one particular stock.”
Listen at 42:28
Recursion Pharmaceuticals has been a failed investment.
“the stuff has been a failure.”
Listen at 42:59
CoreWeave is an attractive but highly speculative investment due to debt and GAAP losses.
“I think the CoreWeave is a great spec. I say spec because it's got a lot of debt on the balance sheet, and people don't like that, and it's not going to actually make money in traditional gap ways.”
Listen at 43:19
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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