Dec 11, 2025 · 44 min
Cramer urges fundamentals after Fed rate cut
Mad Money w/ Jim Cramer 12/10/25
The episode tests whether investors should follow familiar Fed-driven market narratives or prioritize companies with revenue, profits, and durable demand.
- 1Cramer argues the latest rate cut does not revive speculative investing and favors companies with tangible revenue and business fundamentals.
- 2Chewy and ServiceTitan illustrate two growth stories built around expanding operations, customer value, and improving economics.
- 3The stock calls favor selectivity, with Boeing, Carvana, and AES receiving support while unprofitable speculative names face rejection.
Don't miss
Cramer’s closing critique of unprofitable speculative investing crystallizes his case for companies with tangible revenue and durable fundamentals.
The brief
Jim Cramer opens by challenging the market’s reflexive response to the Federal Reserve’s latest rate cut, arguing that familiar monetary-policy narratives can obscure what businesses actually earn.
Chewy CEO Sumit Singh discusses revenue growth, profit expansion, market-share gains, Chewy Plus, veterinary clinics, and fresh pet food as the retailer seeks more customer spending.
ServiceTitan CEO Aaron Modessian explains how software for plumbing, HVAC, electrical, and other contractors can improve scheduling, service, revenue, and profitability amid a skilled-labor shortage.
The stock calls turn selective: Cramer prefers Boeing to its suppliers, favors Lemonade over Root, remains bullish on Carvana, and sees an opportunity in AES.
The closing argument rejects magical investing in unprofitable AI, crypto, quantum-computing, nuclear, and flying-car names, redirecting attention to revenue and fundamentals.
What was said on this episode
38 statements · 31 positive · 7 negative
Investors should buy stocks after a Fed rate cut unless it is the final cut.
“If it's a cut, you buy, unless it's the last one.”
Listen at 1:07
Investors should buy quality stocks after Powell lowers the federal funds rate.
“We can go about our business of buying good stocks that have been kept down while we waited for Jay Powell to take the Fed funds rate down a quarter point.”
Listen at 1:24
The Federal Reserve remains supportive of bullish stock-market conditions.
“the Fed's still on the side of the bulls because it's still in easy mode”
Listen at 2:21
Cash will flow strongly into markets after the Fed rate cut.
“the floodgates are now open, and there's a jailbreak of cash going into the market.”
Listen at 2:45
Investors should buy homebuilders and related retailers when rates decline.
“You buy the homebuilders and you buy the retailers that are connected to the homebuilders.”
Listen at 3:57
Investors should buy Toll Brothers after the rate cut.
“That means you buy Toll Brothers”
Listen at 4:02
Home Depot shares are undervalued by roughly 100 points.
“You still have a chance to buy it here. It's way down to 100 points below where I think it should be.”
Listen at 4:17
Investors can buy J.B. Hunt as rates decline.
“I think J.B. Hunt can be bought.”
Listen at 4:38
The long trucking recession has ended.
“I think the long trucking recession is over.”
Listen at 4:41
Investors should buy Federal Express during the holiday season.
“You can buy Federal Express because we're in the holiday season and Raj Subramanian is one great CEO.”
Listen at 4:43
Investors should buy Union Pacific and Norfolk Southern because of the takeover.
“You can buy Union Pacific and Norfolk Southern because that takeover is a good one.”
Listen at 4:49
Investors can buy expensive growth stocks because rate cuts support higher multiples.
“you can buy the high flyers, the expensive stocks, because people will pay even more for their earnings or just their sales if they don't have earnings.”
Listen at 4:53
Palantir is a suitable stock for the post-rate-cut market.
“I'm thinking of the stock of Palantir.”
Listen at 5:25
Palantir will win many additional Pentagon contracts.
“I believe there'll be many more Pentagon contracts coming.”
Listen at 5:37
Palantir could receive contracts across much of the U.S. defense arsenal.
“It wouldn't surprise me if the whole arsenal of freedom goes to Palantir.”
Listen at 5:44
Industrials benefit from lower interest rates.
“you can buy any industrial because the hedge fund playbook says that industrials benefit from lower rates”
Listen at 6:00
Powell’s successor will try to continue cutting interest rates.
“I expect whoever replaces J-PAL next year will try to keep the cuts coming.”
Listen at 6:36
Trump accounts will create millions of new stock-market accounts.
“We're going to get millions of new stock accounts because of the Trump accounts”
Listen at 6:53
Investors should buy Capital One stock.
“I want you to go buy the stock in Capital One”
Listen at 8:24
Capital One stock should be included in investors’ portfolios.
“It should be in your portfolio, not just your wallet.”
Listen at 8:40
“you better believe a decent chunk of this bail is going to tractors and other kinds of ag equipment.”
Listen at 23:31
Deere stock is likely to rise again soon.
“I think the stock's ready to start running again, if not now, then soon.”
Listen at 23:45
Wall Street is likely underestimating Deere’s prospects.
“I think most likely at its own peril.”
Listen at 24:12
Investors should prefer Nike over Deckers Outdoor.
“I would rather see you in Nike.”
Listen at 25:09
Nike will be the best athletic-apparel investment over five years.
“that's going to be the one that I think is, for the next five years, the best in show.”
Listen at 25:19
Skilled-trade jobs are among the least likely to be disrupted by AI.
“These are the ones that are least likely to get disrupted by AI.”
Listen at 35:31
SoundHound is currently unprofitable.
“SoundHound doesn't make any money.”
Listen at 37:30
The era of magical investing has ended.
“that year is over.”
Listen at 37:35
Root’s expected earnings will not fully materialize.
“I don't think all the earnings are going to come through.”
Listen at 37:53
Investors should consider Lemonade instead of Root.
“you ought to think about lemonade.”
Listen at 37:55
Dow stock may rise only another one or two points.
“It could have another point or two, but that's all.”
Listen at 38:21
Carvana stock will rise further.
“The stock is going higher.”
Listen at 38:39
Ernie Garcia has the best business model in the used-car market.
“I think Ernie Garcia has a better model than anybody else.”
Listen at 38:48
AES presents a buying opportunity.
“I think you've got a buying opportunity in AES.”
Listen at 39:14
Speculative stocks will not rally into year-end.
“I said no chance.”
Listen at 40:15
Most speculative stocks have fallen at least 50%.
“Most of them have been cut in half or worse.”
Listen at 41:01
Jiva Nova and Palantir will continue rising.
“Neither stock is done going higher.”
Listen at 43:11
The speculative-investing era ended in September and will not return soon.
“the year of magical investing came to a close at the end of September. And it's not coming back anytime soon.”
Listen at 43:28
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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