Dec 18, 2025 · 44 min
Cramer weighs buybacks, AI rivalry and tariff risks
Mad Money w/ Jim Cramer 12/17/25
The episode connects individual stock calls to broader forces shaping earnings, consumer competition, technology leadership and trade policy.
- 1Share buybacks can lift earnings per share even when underlying business growth remains limited.
- 2AI leadership is shifting quickly as users compare Anthropic, ChatGPT and Google Gemini on product quality.
- 3A Supreme Court tariff decision could materially affect retailers that import goods from China.
Don't miss
Rob Pace and Cramer examine how quickly AI leadership can change as users compare Anthropic, ChatGPT and Google Gemini.
The brief
Jim Cramer opens by framing his role as putting market developments in context, then recalls the difficulty of building a stable business at TheStreet.com.
Viewer questions turn to Roku, Take-Two and Robinhood, with Cramer emphasizing patience after Robinhood’s sharp rise and Take-Two’s GTA 6 delay.
Medline’s unusually large IPO leads into a broader explanation of how share repurchases can boost earnings per share without rapid underlying growth.
Rob Pace joins Cramer to discuss fast-moving AI competition among Anthropic, ChatGPT and Google Gemini, alongside Netflix, YouTube and T-Mobile.
The Lightning Round compresses judgments on pharmaceuticals, banks, advertising, speculative stocks and Diageo before Cramer examines tariff risks and prediction markets.
What was said on this episode
29 statements · 20 positive · 9 negative
The artificial-intelligence bubble has been bursting for weeks.
“the bubble's been bursting for weeks now”
Listen at 1:59
OpenAI’s obligations greatly exceed its ability to generate cash.
“OpenAI has a very stretched balance sheet with huge obligations that dramatically exceed its ability to bring in cash.”
Listen at 2:38
OpenAI should not be valued at $500 billion.
“the most ballyhooed $500 billion valuation may be off the mark and people shouldn't be valuing it that high.”
Listen at 3:51
Oracle’s stock has fallen as concerns about its OpenAI relationship increased.
“Oracle stock has gotten crushed as we found out more about that open AI relationship and how fraught it is becoming.”
Listen at 5:06
Greater discipline will reduce hyperscalers’ excessive capital-expenditure budgets.
“Discipline will rein in the out-of-control capital expenditure budgets from all the hyperscalers.”
Listen at 7:13
Investors will be able to buy Nvidia and Broadcom after spending discipline returns.
“You will then be able to buy NVIDIA and Broadcom again.”
Listen at 7:23
Roku is attractive because its numbers are receiving positive market commentary.
“I like it. I'll tell you, it's got a lot of positive chatter about the numbers.”
Listen at 8:33
Take-Two’s GTA franchise is exceptional, and investors can buy shares incrementally.
“It's the greatest entertainment franchise of all time. I think you can buy some here and buy some a little lower.”
Listen at 9:07
Strauss Zelnick will deliver successful results for Take-Two investors.
“Strauss Zelnick will deliver for you.”
Listen at 9:14
Investors should wait for Robinhood near $95 before buying.
“let Robinhood come down below that last dip, which took it down to one hundred and three. Maybe you go to say ninety five and then pull the trigger.”
Listen at 9:58
Investors should wait for Medline to pull back toward $20–$30 before buying.
“I wouldn't buy the stock up here. I'd say wait for a pullback maybe down to $20 or $30 before you pull the trigger.”
Listen at 17:46
Large share repurchases can raise earnings per share by shrinking share counts.
“as long as they're repurchasing enough shares, they shrink the share count and therefore their earnings per share soar.”
Listen at 18:38
Ralph Lauren remains a buy.
“It is still a buy.”
Listen at 20:56
Domino’s can perform well because consumers currently prioritize value.
“I think Domino's can win in this current moment because it offers great value at a time that's what consumers care most about.”
Listen at 21:50
General Motors’ stock can continue rising, especially with additional Fed rate cuts.
“I bet it can keep climbing, especially if we get more rate cuts from the Fed.”
Listen at 22:46
HCA Healthcare is an attractive stock to buy after its pullback.
“I think it is a terrific one to buy.”
Listen at 24:31
Investors should buy AutoZone after its pullback.
“You know, I'd be a buyer.”
Listen at 25:07
Investors should wait before buying SoFi during its pullback.
“I don't want to buy it until I think we're further along in the pullback”
Listen at 25:48
Cramer wants to buy Dover stock.
“I want to buy, D-O-V, a club name.”
Listen at 26:35
Companies investing in OpenAI at a $500 billion valuation should reconsider.
“If I were one of these companies that's putting money in this thing at a $500 billion valuation, I would think again.”
Listen at 33:43
Pfizer is a weak hold.
“I'm going to say just week hold.”
Listen at 35:03
Elanco is executing well and has successfully turned around its business.
“They are doing everything right. I am so impressed with the way they've turned that company around.”
Listen at 35:38
Rocket Lab is a good speculative investment ahead of another major rocket offering.
“I think Rocket Lab is better than that. I don't think it's a magical thing. I think it's a very good spec ahead of another big offering in the rocket world next year.”
Listen at 36:05
The advertising scoreboard business is not compelling enough for investment.
“Advertising, it's just not compelling enough to put your money into.”
Listen at 37:11
Diageo’s 5.6% dividend can support its stock price.
“I think that the dividend at 5.6 can keep it here.”
Listen at 38:10
Investors should buy M&T Bank stock immediately.
“I would buy that stock tomorrow morning”
Listen at 39:14
Striking down presidential tariffs would greatly benefit retailers importing from China.
“if they strike down the tariffs for being unconstitutional, that would be a huge win for multiple retailers who import so much from China.”
Listen at 40:56
The discussed retail stocks would rise if the Supreme Court strikes down tariffs.
“I think that every one of these stocks would go up if the Supreme strike down the tariffs.”
Listen at 43:12
Tariff-exposed retail stocks offer better risk-reward than prediction markets.
“the better risk reward is with the stocks, not the prediction markets, because the prediction markets are pure gambling.”
Listen at 43:21
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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