Jun 5, 2026 · 44 min
Cramer warns crowded AI trades could deepen market losses
Mad Money w/ Jim Cramer 6/5/26
The episode weighs staged buying against a difficult market backdrop, while AstraZeneca’s CEO outlines how U.S. investment, oncology, weight management, and AI shape the drugmaker’s strategy.
- 1Cramer favors gradual buying in Lockheed Martin and McDonald’s while warning investors not to chase sharp rallies.
- 2Pascal Soria highlights AstraZeneca’s U.S. investment, oncology pipeline, weight-management medicines, and AI-driven drug discovery.
- 3Diversification, Cramer argues, can cushion portfolios when concentrated artificial-intelligence and data-center trades sell off.
Don't miss
Pascal Soria’s interview connects AstraZeneca’s U.S. expansion with oncology, weight-management treatments, and AI-driven drug discovery.
The brief
Cramer frames the difficult session as a possible cash-raising event ahead of major IPO opportunities, while arguing that some companies may be better positioned than others.
His stock advice follows one principle: build positions gradually rather than chase strength, whether discussing Lockheed Martin, McDonald’s, or names tied to AI infrastructure.
AstraZeneca CEO Pascal Soria discusses the company’s New York listing, U.S. investment and manufacturing, oncology ambitions, weight-management medicines, and AI’s role in drug discovery.
The sharp decline in athleisure stocks, including weakness at Lululemon and Gap, raises a broader question about whether the apparel sector can recover.
Cramer closes with the portfolio lesson: crowded artificial-intelligence and data-center trades can suffer together, making diversification valuable even when it includes laggards.
What was said on this episode
43 statements · 21 positive · 18 negative · 1 mixed · 3 neutral
Investors sold other stocks to raise cash for Elon Musk-related IPO exposure.
“People wanted that money so they could go buy some Elon Musk.”
Listen at 1:02
New stock supply can end a bull market.
“Supply can be the reason why the bull gets killed.”
Listen at 1:08
Strong job growth makes Federal Reserve rate cuts unlikely.
“the Fed doesn't cut when we have this kind of decent job growth. It's off the table.”
Listen at 1:36
Expected rate hikes are shifting investors from technology into slowdown-resistant companies.
“That means some buyers felt that they should pivot and start selling tech and buying companies that do better in a slowdown.”
Listen at 1:58
Bond traders expect several Federal Reserve rate hikes within a year.
“many bond traders are now betting the Fed will have to raise interest rates maybe several times in the next year”
Listen at 2:09
Amazon, Microsoft, or OpenAI could pursue financing.
“We don't know if Amazon or Microsoft might do a fundraise. How about OpenAI? Nothing would surprise me at this point.”
Listen at 3:09
SpaceX financing is currently funded by selling other stocks, especially technology stocks.
“right now it's coming from other stocks, particularly tech stocks”
Listen at 3:28
The market selloff is not harmful to Apple.
“it's not bad for Apple.”
Listen at 4:03
Apple does not need to raise tens of billions for its AI ambitions.
“Apple. which not only doesn't need to raise tens of billions of dollars for its AI ambitions”
Listen at 4:04
Siri will become substantially smarter.
“I think Siri's going to get smart.”
Listen at 4:33
Consolidation is necessary to save packaged-food companies.
“Only consolidation can save them.”
Listen at 5:24
J.M. Smucker’s stock will decline after its Tuesday report.
“I think it's going to get swept right back down when it reports Tuesday morning.”
Listen at 6:00
Adobe’s stock is not yet cheap enough to buy.
“I think it's not low enough to own.”
Listen at 7:29
Lower interest rates would help Lennar sell more homes.
“They need lower interest rates to sell more homes.”
Listen at 7:38
SpaceX’s IPO financing will be raised before the IPO date.
“I hope by this point that all the money needed for the deal will have been raised and then some”
Listen at 7:56
Investors should buy Lockheed Martin gradually, adding below $500.
“I want you to buy some, and then below 500, you'll buy the rest.”
Listen at 9:13
Coherent holders should sell half now and potentially repurchase later lower.
“I want you actually to own it to sell half. right around here, even if it's down 25, and then wait, okay? I want to do that for some of the stocks that I had talked about on air”
Listen at 10:37
AstraZeneca will be the largest British company with a U.S. share in the United States.
“We are going to be the largest British company with a U.S. share in the United States.”
Listen at 13:11
The New York listing enables U.S. shareholders to buy AstraZeneca shares directly.
“U.S. shareholders who are not comfortable or not able to buy an EDR can buy our shares.”
Listen at 13:32
AstraZeneca’s Kendall Square site will employ 3,000 pipeline scientists.
“where we will have 3,000 scientists working on our pipeline.”
Listen at 14:29
“we are on our way to getting there”
Listen at 15:06
AstraZeneca expects its oncology portfolio to defend its lung-cancer position.
“we think we have what it takes to defend our position in lung cancer treatment and continue improving the treatment of this condition.”
Listen at 16:59
AstraZeneca will present phase 2b oral GLP-1 data and advance it to phase 3.
“we will present data phase 2b, data with our oral GLP-1. And very exciting data. We're moving this product into phase 3.”
Listen at 18:07
AI can optimize drug molecules and remove potential side effects.
“AI helps you do this.”
Listen at 19:55
AstraZeneca’s Pathos agent helps predict phase-three trial success.
“helps us predict the probability of success of a phase three trial.”
Listen at 20:20
Lululemon is currently cheaper than its historical valuation.
“Lululemon is obviously a lot cheaper than it used to be.”
Listen at 26:32
McDonald’s investors should add shares at progressively lower prices through $260.
“Get a better basis, 25 to 279, 25 to 270, 25 to 265, and then 50 if it does get to 260”
Listen at 28:54
SpaceX will not enter the S&P 500 before June 2027.
“SpaceX won't be in the S&P until next June at the earliest.”
Listen at 32:07
SpaceX will continue reporting losses if heavy investment continues.
“the company will keep losing money.”
Listen at 32:42
Older investors should choose the S&P 500 for lower risk and returns.
“the safer, potentially lower return S&P 500, which I recommend for people who are a little bit older”
Listen at 34:51
Starwood Property Trust has been a poor stock and is not recommended.
“it's not been a good stock. And what can I say? I have not been recommending it.”
Listen at 37:05
Investors should avoid Rally because its stock has risen parabolically.
“The stock's going parabolic, and I've got to tell you, this show's dedicated to the idea of don't seek parabolas right now.”
Listen at 37:33
BorgWarner could fall from $72 to $60 rapidly after its parabolic rise.
“It's been an absolute winner. But again, it's another parabola stock. So what will happen is it's at 72. It could be at 60 in a heartbeat.”
Listen at 37:59
Reddit has a strong, unique business property.
“I like it. I like it. I think it's got a very, very good, unique property.”
Listen at 38:51
Investors should buy Reddit gradually rather than aggressively.
“we're going to buy Reddit very slowly, not aggressively.”
Listen at 39:09
Investors should not buy Blue Owl Capital Corporation.
“I've not recommended anybody's business development company. I can't start doing it now.”
Listen at 39:53
Concentrating in hot stocks can make money temporarily but eventually causes severe losses.
“you can make good money for a while if you go all in on what's hot. But I never do it because I know it will eventually blow up in your face.”
Listen at 40:41
Diversified portfolios inevitably contain some underperforming holdings.
“When you're diversified at any given moment, you're going to own some losers”
Listen at 40:53
Diversification provides protection during major selloffs in popular stocks.
“they preserve your sanity when you get a tsunami-like sell-off in the hottest stocks out there.”
Listen at 41:01
Stocks rising parabolically will eventually decline sharply.
“if it goes up practically in a straight line, then eventually it's going to come down in a straight line.”
Listen at 41:58
Parabolic stocks tend to fall faster than they rose.
“What goes up must come down twice as fast, if not as faster.”
Listen at 42:12
The CNBC Investing Club sold some Arm Holdings at $310 before it rose to $400.
“we sold some at $310, but then it went up to $400.”
Listen at 42:29
Arm Holdings fell more than 12% during the selloff.
“ARM down more than 12%.”
Listen at 42:49
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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