May 12, 2026 · 44 min
FedEx turns its Memphis hub into an economic signal
'Mad Money w/ Jim Cramer 5/12/26
FedEx’s package flows and network decisions offer a ground-level view of trade, industrial activity, consumer demand, and infrastructure investment.
- 1FedEx is using its Memphis network and operational data to read shifting trade patterns and economic demand.
- 2Raj Subramanian frames AI as a tool for predictability, customer service, and efficiency across FedEx’s physical network.
- 3Cramer weighs Shopify, CoreWeave, and data-center stocks against volatility, pullbacks, and the need for disciplined buying.
Don't miss
Raj Subramanian explains how FedEx’s package demand, network density, and hub activity can illuminate industrial and consumer conditions.
The brief
From the FedEx World Hub in Memphis, Jim Cramer treats the company’s package flows as a real-time window into tariffs, trade, industrial activity, and consumer demand.
FedEx CEO Raj Subramanian describes a network being rebuilt around physical and generative AI, digital twins, multiple providers, and better operational predictability rather than simple job elimination.
The Amazon comparison reveals a more complicated rivalry: Amazon competes in logistics but also remains a valuable customer, while FedEx emphasizes its integrated global network.
Subramanian links FedEx’s transformation to cost reduction, fleet recovery, network density, and growth in healthcare, automotive, aerospace, semiconductors, and data centers.
Cramer then shifts from logistics to markets, defending Shopify amid its selloff, cautioning on volatile CoreWeave, and urging discipline after a pullback in data-center stocks.
What was said on this episode
30 statements · 16 positive · 13 negative · 1 mixed
Current oil prices are harmful to society and the economy.
“oil is back to levels where it's a nemesis to our society”
Listen at 2:55
The Iran war is raising prices broadly for average Americans.
“the war is doing something even the tariffs couldn't do, raising prices across the board for the average American”
Listen at 3:47
The 30-year Treasury yield is currently above 5%.
“The yield on the 30-year treasury is now over 5%.”
Listen at 4:22
The stock market cannot sustain a rally without lower interest rates.
“the stock market won't be able to rally for long without the oxygen of lower interest rates”
Listen at 6:24
A 3.8% CPI makes interest-rate cuts difficult.
“It's very hard to cut rates with the CPI up 3.8%.”
Listen at 6:31
CoreWeave is an unsuitable stock for risk-averse investors.
“Core Weave is what I call a stock that's not for the squeamish.”
Listen at 7:06
CoreWeave can fluctuate by roughly 20% in either direction.
“you could be down 20 and up 20 and down 20”
Listen at 7:17
Johnson & Johnson is better suited to this investor than CoreWeave.
“J&J. was made for you.”
Listen at 7:19
The FedEx World Hub can process 474,000 packages per hour.
“they can process a whopping 474,000 packages per hour here”
Listen at 8:48
AI displacement concerns have pressured Shopify throughout the year.
“Shopify, the once high-flying e-commerce enabler for small and medium-sized business, which has spent all year getting roughed up by AI displacement worries.”
Listen at 30:38
Cramer remains positive on Shopify at its current price.
“I still like Shopify here.”
Listen at 31:18
Investors should be prepared to buy more of a high-quality stock during declines.
“you shouldn't buy a stock if you're not prepared to buy some more as it goes lower”
Listen at 31:21
The investment thesis for Shopify has not changed.
“I don't believe the thesis has changed here.”
Listen at 31:31
Shopify’s platform is unlikely to be easily replaced by Claude.
“I simply don't think this platform is something that could be easily replaced by something like... Claude.”
Listen at 31:38
Shopify’s core business remains strong despite the reported loss.
“the core business remains very strong.”
Listen at 33:22
Shopify has beaten revenue expectations for 15 quarters and may beat again.
“The company's beaten revenue expectations for 15 quarters in a row. I bet they can do 16.”
Listen at 35:27
Shopify trades at approximately 55 times estimated current-year earnings.
“Trading 55 times this year's earnings estimates.”
Listen at 35:41
Shopify is on track for 29% earnings growth this year.
“Shopify's on track to grow earnings at a 29% clip this year”
Listen at 35:54
Cramer considers Shopify undervalued below $100 per share.
“Down here below $100, I think Shopify's a steal.”
Listen at 36:47
Cramer would buy more Shopify incrementally at $92 and $87.
“if it does go lower, I would buy more on a five-point scale down, 92 than 87.”
Listen at 36:51
GDRX has limited downside from its current level.
“I'm going to say that there's limited downside”
Listen at 38:02
Cramer endorses buying Chevron.
“you're absolutely right to do Chevron”
Listen at 38:49
Chevron offers a 3.8% yield through its Brazil operations.
“you do get a 3.8 through Brazil”
Listen at 38:53
Vertiv has strong orders.
“I think they've got great orders.”
Listen at 39:14
Investors should buy only half a Vertiv position and wait for a decline.
“if you want to put a position on, you buy half and then you wait for it to decline”
Listen at 39:15
Investors should not buy TRL after its recent surge.
“You can't buy it here”
Listen at 39:56
Cramer considers buying TRL after its 52% move irresponsible.
“I just can't put you in that stock after it just had a 52% move.”
Listen at 40:02
Data-center stock selling may continue.
“This selling might not be done.”
Listen at 43:08
Data-center stocks will recover after the pullback.
“The data center will be back, no doubt.”
Listen at 43:17
Investors should remain cautious during a data-center-stock rebound.
“you don't let yourself get too excited.”
Listen at 43:23
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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