Jan 7, 2026 · 44 min
Cramer tests tech leaders and aging-aircraft demand
Mad Money w/ Jim Cramer 1/6/26
The episode weighs whether market favorites can sustain their influence while aviation aftermarket demand and battered staples offer contrasting investment cases.
- 1Cramer reassesses the Magnificent Seven after uneven 2025 performance and focuses on weakness at Microsoft and Oracle.
- 2AAR CEO John Holmes links aging aircraft, constrained production, software margins, and defense demand to aftermarket growth.
- 3Consumer-staples companies face dividend appeal and market scale, but health concerns and weight-loss drugs pressure the category.
Don't miss
John Holmes explains why constrained aircraft production and an aging fleet are sustaining demand for AAR’s aftermarket operations.
The brief
Jim Cramer opens with the emotional patterns that shape early-year investing, then tests energy, restaurant, and technology stocks against profitability and valuation concerns.
The Magnificent Seven remain central to the S&P 500, but Cramer finds uneven performance beneath their collective influence, with Microsoft and Oracle facing distinct late-year pressures.
AAR CEO John Holmes explains how parts, maintenance, and Trax software reinforce one another, creating a business that can expand beyond traditional aviation services.
Holmes argues that constrained aircraft production keeps older planes flying, while defense demand helps balance commercial aviation cycles and supports AAR’s aftermarket operations.
The episode closes with rapid stock calls and a test of whether PepsiCo, General Mills, J.M. Smucker, and ConAgra can recover from a difficult 2025.
What was said on this episode
43 statements · 32 positive · 7 negative · 2 mixed · 2 neutral
Memory-chip manufacturing equipment shortages are driving storage-stock gains.
“Why do these stocks keep running? Because there is a shortage of machines that make memory chips for them.”
Listen at 1:48
Storage demand is overwhelming supply and raising prices for PC customers.
“Demand can't be sated. Pricing's going up so much that their non-data center customers, mainly PC makers, get killed.”
Listen at 3:02
Bank valuation multiples are expanding but remain below full valuation.
“The banks are seeing the price journeys multiples expand. They still have a lot to grow before they become fully valued.”
Listen at 4:19
Nike and Starbucks are showing early signs of a genuine rebound.
“I see green shoots in both these companies, and their strength, I've got to tell you, their strength this year so far reflects a real rebound.”
Listen at 4:42
“As for Starbucks, I think this is the year it comes back.”
Listen at 5:03
Starbucks’s operational problems are improving.
“I think everything is changing for the better.”
Listen at 5:21
Amazon’s weak stock performance did not reflect weakness in its business.
“So now Amazon's playing catch up based on the mistaken identity that it was a loser. It never was.”
Listen at 6:53
“I expect the emotional trading could last a bit, a little bit more as the year just started.”
Listen at 7:08
Early-year market trends can persist for up to ten trading days before correction.
“We've seen these trends last as long as 10 trading days into the new year before we've gotten even a sharp correction.”
Listen at 7:15
Investors should partially sell sharply appreciated storage stocks.
“It's time to ring the register tomorrow morning on part of your position.”
Listen at 7:28
Investors should hold turnaround stocks and buy temporarily misidentified stocks.
“I say hold on to the turnaround stocks and buy the mistaken identities because they're the ones that should keep running as we go further into the new year.”
Listen at 7:32
ONEOK and Enterprise Products Partners are preferable to Cheniere Energy.
“I think One Oak is better. And I really like enterprise product partners here. I think those are better, more growth, better yield.”
Listen at 8:26
Sweetgreen’s stock will fall further unless the company becomes profitable.
“They've got to start making money, I got to tell you, or else I think it is going to go even lower.”
Listen at 9:06
Texas Roadhouse is preferable to Sweetgreen.
“And I like that one much more than one you're in.”
Listen at 9:24
“I think, are going to be two huge outperformers just like 2025.”
Listen at 12:03
Gemini 3 was quickly recognized as the leading generative-AI system.
“Gemini 3, which was almost instantly recognized as the best in the business.”
Listen at 14:30
Waymo is the leading robotaxi company.
“Waymo's the undisputed leader in robotaxis.”
Listen at 14:59
Alphabet’s stock will continue rising in 2026.
“I bet it keeps climbing 2026.”
Listen at 15:38
NVIDIA leads AI chips and has software advantages over competitors.
“NVIDIA remains firmly at the center of the AI ecosystem with the best chips that money can buy and a software moat that makes it very hard for other semiconductor players, including Google, including AMD.”
Listen at 16:24
Investors should own NVIDIA rather than trade it in 2026.
“So, yes, I still like NVIDIA very much entering 2026. Own it, don't trade it.”
Listen at 17:04
NVIDIA trades below 25 times estimated current-year earnings.
“NVIDIA currently trades at less than 25 times this year's earnings estimates.”
Listen at 17:17
Alphabet and NVIDIA will outperform in 2026 and are buys now.
“I think the two outperformers, the Magnificent 7, Alphabet and NVIDIA, will keep winning in 2026. I buy them both right here.”
Listen at 17:54
Microsoft remains an attractive investment despite recent weakness.
“I am a believer in Microsoft, which is why we own it for the CMBC Investing Club.”
Listen at 20:14
Meta’s constrained AI spending could benefit its shareholders.
“I think you'll be constrained. I think it's going to be positive for you if you own the stock.”
Listen at 21:56
Tesla’s core electric-car business is performing poorly.
“The core electric car business, I'm calling it awful, down for the second straight year.”
Listen at 22:07
Apple’s strong iPhone sales cycle can continue.
“I think the strong iPhone cycle can continue.”
Listen at 23:56
Apple deserves to trade at a premium valuation multiple.
“I think Apple deserves a premium multiple, given how great it is.”
Listen at 24:16
Amazon will deliver substantially larger gains in 2026.
“I'm looking for Amazon to put up much bigger gains in 2026.”
Listen at 25:26
Oracle would become a buy if its stock declines further.
“If it got down a little bit more, I would just tell you to buy it.”
Listen at 26:31
Taiwan Semiconductor is a high-quality company.
“Taiwan Semi is a very good company.”
Listen at 27:29
AAR faces strong demand because aircraft utilization is high.
“But the demand environment for what we do is great right now because what we want to see are lots of aircraft flying.”
Listen at 29:55
AAR’s software business remains a relatively small contributor.
“it is still a relatively small contributor.”
Listen at 32:19
AAR’s Trax software revenue has doubled and is expected to keep growing.
“We've doubled the revenue since we acquired the company. We see a clear line of sight to continue to drive that revenue growth.”
Listen at 32:21
AAR’s defense and government sales rose 23 percent this quarter.
“our defense sales, our government sales were up 23 percent this quarter”
Listen at 32:52
Aircraft can remain operational for decades.
“Aircraft can last for decades.”
Listen at 33:59
Cramer would buy Teradyne if its stock pulls back.
“If it pulls back, I'm still a buyer, Dave. It's that good a company”
Listen at 36:47
Cramer does not endorse USA Rare Earth because it is losing too much money.
“I can't bless it. Losing too much money.”
Listen at 37:19
Fifth Third’s merger with Comerica is beneficial and the stock is a buy.
“This is a good combination. I've wanted it. They are going to bring some, they will bring some discipline to Comerica. I think it's a buy.”
Listen at 37:44
SI-BONE is a highly attractive speculative investment.
“this is a great, great speculation. I mean, terrific.”
Listen at 38:21
Home Depot is preferable to Fortune Brands as a housing investment.
“I'd like to be in that one more than I would like to be in Fortune Brands.”
Listen at 39:03
Packaged-food companies should break up and sell divisions to improve performance.
“The only way to change the trajectory, I believe, is to break up and sell parts of the businesses after demonstrating you can put up some decent, even if unexciting, growth.”
Listen at 40:19
Cramer’s earlier negative judgment about the Kellogg breakup was incorrect.
“That judgment was wrong.”
Listen at 41:23
Packaged-food companies must take immediate action to improve performance.
“The untenable performance of these stocks demand action and demand it now.”
Listen at 43:08
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.
Books & mentions
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