Feb 5, 2026 · 44 min
Cramer warns rotation punishes high-flying stocks
Mad Money w/ Jim Cramer 2/4/26
The episode connects market-wide risk management with pressure facing drugmakers, banks, and game publishers confronting demanding investors.
- 1Cramer argues diversification matters as investors rotate away from parabolic technology stocks.
- 2Novo Nordisk faces pricing and GLP-1 competition pressure as it launches a weight-loss pill.
- 3Santander and Take-Two outline U.S. expansion and Grand Theft Auto VI plans despite market skepticism.
Don't miss
Strauss Zelnick lays out Take-Two’s outlook ahead of the November 19 launch of Grand Theft Auto VI.
The brief
Jim Cramer opens with a warning against chasing parabolic stock moves, arguing that painful rotation out of high-flying technology names makes diversification essential.
Novo Nordisk’s CEO discusses pricing pressure, GLP-1 competition, supply, patient demand, and the launch of a weight-loss pill as the company’s stock declines.
Ana Botín explains Banco Santander’s U.S. expansion, including the Webster Financial acquisition, digital banking, auto finance, and its focus on profitability and scale.
Take-Two CEO Strauss Zelnick addresses artificial intelligence, mobile games, NBA 2K, marketing, and the November 19 launch of Grand Theft Auto VI.
The lightning round moves through miners, biotech, solar, airlines, finance, and energy before Cramer questions whether traditional coding companies are losing dominance.
What was said on this episode
38 statements · 26 positive · 10 negative · 2 mixed
Cramer hesitates to recommend parabolically rising stocks because their declines can erase gains.
“I always hesitate to recommend the hottest stocks in the market.”
Listen at 0:40
Investors should own individual stocks because profitable diversified companies offer upside.
“These winners are why you should be invested in individual stocks.”
Listen at 3:42
Investors should avoid quantum stocks because their commercial prospects are distant.
“We don't want to own quantum stocks anymore because they're 2030 science projects”
Listen at 4:36
Nuclear power is the best long-term clean-energy source for powering data centers.
“Long term nuclear is the best way to generate clean energy and keep all these data centers running.”
Listen at 4:55
Several nuclear projects will not be ready before 2032 and may be delayed further.
“We're building up. Potemkin Village, Gemini, of nuclear shells that won't be ready until 2032 at the earliest. Probably later than that.”
Listen at 5:00
Google's Gemini is currently leading consumer AI competition.
“Gemini is winning the AI race, at least on the consumer side.”
Listen at 6:26
Google's elevated AI capital spending is justified by Gemini's consumer leadership.
“I think it's worth every penny to spend.”
Listen at 6:29
Undiversified investors face substantial losses if market volatility persists.
“If you despise diversification, I got some real bad news for you.”
Listen at 7:53
Persistent volatility will severely hurt investors who remain concentrated in Bitcoin derivatives.
“If this volatility keeps up, volatility being a codename for getting the bejesus kicked out of you, and you stay undiversified, then you're going to get smashed by a Bitcoin derivative”
Listen at 7:56
Investors should remain diversified during the market rotation away from technology.
“you have to stay diversified while this rotation plays out”
Listen at 8:58
Novo Nordisk's weight-loss pill is receiving 50,000 weekly prescriptions.
“we have now, on a weekly basis, 50,000 prescriptions coming in”
Listen at 11:37
Novo Nordisk's pill reached 170,000 American users within four weeks.
“that actually translates to 170,000 Americans are on the pill in four weeks' time”
Listen at 11:44
Novo Nordisk's 7.2-milligram semaglutide matched tirzepatide's weight-loss efficacy in a trial.
“We have done a trial called Step Up with semaglutide at 7.2 milligram that shows actually weight loss efficacy on par with trisepatide.”
Listen at 13:57
Semaglutide provides cardiovascular, liver, and kidney protection.
“semaglutide gives you cardio protection, liver protection, kidney protection”
Listen at 14:27
Novo Nordisk expects lower prices to drive future volume growth and improve results.
“Better days are ahead of us because volume uptake will come on the back of lower prices.”
Listen at 17:39
Novo Nordisk believes it can supply its weight-loss pill adequately.
“We feel very confident from a supply point of view”
Listen at 18:25
“we're now at 180 million customers”
Listen at 21:55
Santander and Webster expect combined 18% return on tangible equity by 2028.
“combined, we'll get to 18%. Return on tangible equity by 28.”
Listen at 23:15
Banco Santander assesses the U.S. consumer as resilient despite lower-end pressure.
“We see the U.S. consumer very resilient.”
Listen at 24:58
Santander expects Europe and the Americas to perform better economically in 2026 than 2025.
“overall looks better in 26 than it did in 25”
Listen at 27:20
Santander expects Brazil and Latin America to slow but continue growing.
“Brazil will slow down a bit, Latin America, but still with growth.”
Listen at 27:43
Cramer believes Take-Two may offer its last major buying opportunity before GTA VI.
“I think this may be the last great buying opportunity before.”
Listen at 29:10
Take-Two's AI projects are already improving efficiency and creativity.
“We have hundreds of AI projects going on now at Take-Two and our subsidiaries. This is a good thing.”
Listen at 30:43
Take-Two's mobile business revenue is up 19% year over year.
“Yeah, we're up 19% year over year”
Listen at 31:19
NBA 2K sales rose 30% year over year to eight million units.
“We're up 30 percent year over year. We've sold in eight million units.”
Listen at 32:03
Take-Two's catalog generates approximately 35% of annual net bookings.
“our catalog alone generates, I don't know, 35% of our net bookings year in, year out”
Listen at 32:21
Take-Two plans to launch Grand Theft Auto VI on November 19.
“November 19th.”
Listen at 33:25
Grand Theft Auto VI will probably increase sales of current-generation consoles.
“I think will probably energize console sales.”
Listen at 34:44
Investors should own bullion rather than speculative gold-mining stocks.
“Own a bullion other than that, and I think you'll be fine.”
Listen at 36:38
Investors should avoid BioCryst Pharmaceuticals.
“just stay away from that”
Listen at 37:17
Investors should buy NextPower.
“Just go buy it.”
Listen at 38:03
Cramer prefers Capital One over Synchrony Financial.
“I don't want to own Synchrony. I want to own Capital One”
Listen at 38:39
Investors should avoid EOS Energy Enterprises.
“We don't want to touch that one.”
Listen at 39:13
The enterprise software boom has largely ended because of artificial intelligence.
“The enterprise software bonanza seems to have run its course.”
Listen at 41:19
AI coding platforms can write code better than human programmers, reducing the need for programmers.
“With AI, you don't need programmers because these platforms can write code better than humans.”
Listen at 41:26
Anthropic's AI tools may help businesses reduce costs by eliminating expensive coding labor.
“I think Anthropic can find all sorts of ways for businesses to save money by getting rid of expensive coders.”
Listen at 42:08
Profitable enterprise software companies' median P/E multiple fell from 28.4x to below 21x.
“the median price to earnings multiple for the profitable companies in this thing has shrunk from 28.4 times earnings at the end of 2024 to less than 21 times earnings today.”
Listen at 42:26
Enterprise software stocks may rebound but probably will not regain prior valuations.
“The enterprise software stocks can bounce. They will bounce, probably. But they may never be worth what they once were”
Listen at 43:15
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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