Oct 10, 2025 · 44 min
Cramer weighs trade tensions, breakups and AI’s software test
Mad Money w/ Jim Cramer 10/10/25
The episode connects a market selloff to questions about corporate structure, banking technology and whether AI will erode software valuations.
- 1Renewed U.S.-China trade tensions drive the selloff, while Cramer reassesses Ford after an operationally damaging fire.
- 2Corporate separations at DuPont and Honeywell become case studies in how breakups might unlock shareholder value.
- 3Ana Botín presents Santander’s digital, cross-border and AI strategy as a path to growth, productivity and stronger shareholder returns.
Don't miss
Ana Botín explains how Santander uses OpenAI and AI assistants to raise productivity while maintaining an ambitious digital-banking strategy.
The brief
Jim Cramer opens with a sharp market decline tied to renewed U.S.-China trade tensions, then considers whether Ford remains a sound long-term holding after a damaging fire.
Cramer argues that corporate breakups can expose hidden value, using DuPont’s electronics spinoff and Honeywell’s planned three-way separation as central examples.
Ana Botín discusses Santander’s geographic diversification, digital platform, instant U.S.-Mexico transfers and use of AI assistants to improve productivity rather than simply cut headcount.
Botín says Santander aims to compound tangible book value and dividends, while Cramer argues the bank’s shareholder returns deserve a higher valuation premium.
The closing stock discussion turns skeptical: Cramer rejects UiPath after its surge, urges patience on Archer Aviation and questions how AI may challenge Salesforce’s software model.
What was said on this episode
46 statements · 29 positive · 15 negative · 2 mixed
The market sell-off will probably continue.
“the sell-off, probably not done yet”
Listen at 1:03
The current multi-year stock-market rally has not ended.
“Do I think today marks the end of the multi-year rally? No.”
Listen at 1:22
Investors have become complacent and overly optimistic about Trump’s trade policy.
“we've grown complacent and overly optimistic about President Trump's trade policy”
Listen at 1:26
The additional U.S. tariffs will hurt many Chinese businesses.
“it is sure to hurt many Chinese businesses”
Listen at 1:57
China-U.S. relations will not deteriorate enough to justify all market declines.
“I don't expect relations with China will sour to the point where all of today's declines can be justified.”
Listen at 3:06
China will be hit harder than the United States by the new tariffs.
“they're hit a lot harder than we are by these new tariffs”
Listen at 3:14
Goldman Sachs is likely to deliver the biggest earnings upside surprise among the listed banks.
“I think Goldman Sachs is liable to have the biggest upside surprise.”
Listen at 4:32
JPMorgan will report another excellent quarterly result.
“it should be a usual superb quarter”
Listen at 4:44
Citigroup will report the strongest numbers among the banks discussed.
“the closest ever since that bank run by the affable cerebral Jane Frazier will put up the best numbers of all”
Listen at 5:01
Johnson & Johnson will report the strongest numbers among pharmaceutical companies.
“Johnson & Johnson, which should have the strongest numbers of any pharmaceutical company”
Listen at 5:08
Dollar Tree will be hurt by tariffs and its financial estimates will decline.
“I think they will get hurt and numbers have to come down”
Listen at 6:26
Taiwan Semiconductor will report a very strong outlook.
“I expect a very rosy picture”
Listen at 6:59
Oil prices could fall to $55 per barrel.
“I think you could go to 55, and that's a distinct possibility”
Listen at 7:57
Ford remains fundamentally good, but the fire may make current estimates too high.
“I do think that Ford's good, but I think numbers might be too high because that fire hurt so many parts of their operation.”
Listen at 8:44
Ford may provide good news after another small decline.
“after another little dip, perhaps some money, that we could get some good news”
Listen at 8:57
Corporate breakups can unlock value and generate large shareholder gains.
“when a company breaks up, it can often unlock value and generate big gains for shareholders”
Listen at 10:18
CUNITY’s financial outlook appears strong.
“CUNITY look pretty darn good”
Listen at 13:53
Cramer favors CUNITY Electronics as an investment.
“I am a fan of this one”
Listen at 14:14
DuPont cannot meet its medium-term targets without multiple rate cuts.
“they won't be able to hit those numbers without a series of rate cuts”
Listen at 15:43
Cramer is very bullish on the CUNITY spinoff.
“I'm very bullish on the CUNY spinoff”
Listen at 16:04
The AI boom will keep semiconductor demand strong.
“Semic doctors stay hot, thanks to the AI boom”
Listen at 16:09
Cramer judges Honeywell CEO Vimal Kapoor’s performance excellent.
“I think he's doing a fantastic job”
Listen at 19:06
Solstice is fundamentally solid despite operating in a challenged industry.
“Solstice is a solid business in an industry that's currently challenged”
Listen at 21:50
Solstice stock may decline after beginning independent trading.
“I wouldn't be surprised to see the stock dip after it starts trading independently”
Listen at 22:12
Solstice could become a major winner after economic stabilization and rate cuts.
“once the economy stabilizes, ideally after we get some rate cuts, you know what? This is going to be a winner, maybe a huge winner.”
Listen at 22:26
Honeywell will be worth substantially more after its other divisions are spun out.
“I think that will be worth a heck of a lot more once the other divisions get spun out”
Listen at 23:58
Cramer recommends buying Boeing.
“I think Boeing is a must buy.”
Listen at 24:40
Honeywell’s breakup will substantially increase its value.
“I think this breakup will make it worth a heck of a lot more.”
Listen at 25:05
Mexico, the United States, and Spain are Santander’s strongest geographies and likely remain so.
“Mexico, U.S. And Spain. I think those are the strongest geographies in the last 12 months, and it looks like going forward.”
Listen at 27:47
Santander’s strongest performance lies ahead.
“the best is yet to come”
Listen at 29:17
Santander expects to connect its U.S. and Mexican Openbank platforms within 12 months.
“hopefully in the next 12 months we'll be able for example to connect open bank us with open bank mexico”
Listen at 30:47
Santander customers can transfer money instantly between U.S. and Mexican Openbank accounts.
“you're able to transfer instantly”
Listen at 31:07
Santander will enable individuals and companies to operate cross-border during 2026.
“we can allow you to actually work cross-border as an individual as a company during 2026”
Listen at 31:28
“by the end of this year we're going to have 30 000 open ai users inside santander”
Listen at 32:05
Santander’s costs are flat to declining and its 41.5 efficiency ratio is best in class.
“our cost, a flat to down across the group. And our efficiency, 41.5. That's best in class among the best banks.”
Listen at 32:35
Santander believes AI will improve customer outcomes and shareholder value.
“we see AI as helping us do better for our customers and better for our shareholders”
Listen at 33:08
Santander’s EPS increased 19% over the previous two years.
“Over the last two years, our EPS is up 19%.”
Listen at 33:22
Botín aims for Santander to compound tangible book value and dividends over time.
“My goal is to be a compounder of tangible book value. and dividends over time.”
Listen at 35:41
Santander deserves a valuation premium because it continues growing and can increase profitability.
“I think we should deserve a premium because we continue to grow and we can deliver even greater profitability.”
Listen at 36:17
Cramer does not recommend buying UiPath after its large recent rise.
“It just had such a big move, I can't recommend it.”
Listen at 37:45
Customers’ own AI may replicate or augment Salesforce products, reducing Salesforce payments.
“Products that some customers are trying to replicate or augment using their own AI so they don't have to pay Salesforce.”
Listen at 39:20
Salesforce’s business model is currently under pressure from customer AI use.
“the Salesforce model is being challenged”
Listen at 39:28
“I think we'll see that pattern play out again with so many of these red-hot speculative names”
Listen at 41:32
IonQ’s offering may be followed by more offerings that pressure speculative stocks.
“I think this offering will be the first of many, and they could weigh on all these stocks.”
Listen at 42:04
Investors should sell some speculative holdings before companies and insiders sell shares.
“Please sell some of these specs before the companies and the insiders do the same.”
Listen at 42:58
Investors should at least recover their original investment from speculative stocks.
“At a minimum, please take out your cost basis.”
Listen at 43:03
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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