Jan 8, 2026 · 44 min
IPO wave could reshape portfolios as markets turn selective
Mad Money w/ Jim Cramer 1/7/26
The episode weighs whether a potentially historic IPO market will draw capital away from existing holdings while investors navigate weak markets and uncertain oil supply.
- 1Cramer urges selectivity as market weakness complicates decisions across technology, defense, beverage, and restaurant stocks.
- 2A crowded 2026 IPO pipeline could redirect investor demand toward high-profile private companies and pressure existing portfolios.
- 3Rusty Braziel argues Venezuela’s vast oil reserves will not quickly translate into a surge of global production.
Don't miss
Rusty Braziel explains why Venezuela’s headline oil reserves are unlikely to produce a flood of global supply for many years.
The brief
Jim Cramer opens against a weaker market, arguing that investors should be selective rather than chase stocks near their highs, then tests that discipline across several viewer questions.
The episode’s central market thesis is a potentially historic 2026 IPO wave, fueled by regulatory changes and a backlog of private companies preparing to seek public investors.
Rusty Braziel of RBN Energy challenges the idea that Venezuela’s enormous reserves can quickly transform global supply, citing heavy crude, damaged infrastructure, and production constraints.
Cramer contrasts speculative Roblox with the excitement surrounding possible mega-IPOs, including OpenAI and SpaceX, as investors weigh growth stories against profitability and valuation.
The closing warning is about demand: a flood of celebrated new listings could pull retail enthusiasm and capital away from companies already sitting in portfolios.
What was said on this episode
41 statements · 22 positive · 17 negative · 2 mixed
A major Venezuelan production increase would sharply reduce crude prices within 18 months.
“if Venezuela boosts its production dramatically over the next 18 months, the price of crude is going to get slaughtered.”
Listen at 2:02
Jim Cramer assesses JPMorgan stock as undervalued at 16 times earnings.
“J.P. Morgan reports, I think this, the biggest bank, is it's cheap. Stock's way too cheap, actually, 16 times earnings.”
Listen at 2:22
Investors should buy JPMorgan after Jamie Dimon issues cautious commentary.
“Now, that's when you want to buy, after he lowers the boom, not up here after you run”
Listen at 4:11
A favorable CrowdStrike entry price gives investors a strong position.
“when you can get a good cost basis like you did in CrowdStrike this morning. You're playing with a very strong hand.”
Listen at 6:08
Microsoft rarely trades at $485 after trading at $555 previously.
“How often do you get to buy the stock of Microsoft at $485 if you're traded at $555 last summer? I know the answer. Not very often.”
Listen at 6:37
Procter & Gamble has raised its dividend for 69 consecutive years and yields 3%.
“It's a dividend risk grant. Some people call it a dividend king because it's increased its payout for 69 consecutive years. You're now getting the stock with a 3% yield.”
Listen at 7:28
Investors should build Procter & Gamble positions gradually rather than buying all at once.
“Only buy 25 shares. Then you wait for it to fall to another level.”
Listen at 8:00
Jim Cramer evaluates AeroVironment as a terrific company.
“That's a terrific company.”
Listen at 9:49
Cramer expects Celsius stock could gain about 10 points after its acquisition.
“I think it could put 10 points on because the company's doing quite well and it just closed that acquisition.”
Listen at 10:46
2026 will be a major year for banking mergers, acquisitions, and IPOs.
“this will be a big year for banking with a ton of M&A deals and IPOs.”
Listen at 12:16
IPO market self-correction is beneficial for the broader stock market.
“I think that's actually a huge positive for the broader stock market.”
Listen at 15:50
Fermi stock fell from $32 to below $10 after its IPO.
“Fermi was at $32 back then. Now it's at under $10.”
Listen at 17:33
Medline stock would be a buy if its price declines.
“if the stock comes in, it's a buy.”
Listen at 18:16
2026 will be the year of mega IPO deals.
“I'm thinking this will be the year of the mega deal”
Listen at 19:19
Databricks is likely to be a major success.
“I think this one's going to be a big success.”
Listen at 19:50
“these guys might be willing to come public probably in the second half of the year.”
Listen at 20:45
Cramer favors a Databricks IPO if priced appropriately.
“I kind of like it if it's priced correctly.”
Listen at 20:49
SpaceX’s satellite internet is fast, inexpensive, and works globally.
“It's fast, it's cheap, and it works many places around the globe.”
Listen at 21:12
SpaceX is projected to generate $22–24 billion in 2026 revenue.
“SpaceX is on track to generate $22 to $24 billion in revenue in 2026.”
Listen at 22:09
Cramer evaluates Anthropic as an attractive business.
“I really like Anthropic as a business.”
Listen at 24:50
Cramer judges Anthropic’s approximately $350 billion valuation excessive.
“$350 billion, that's a monster valuation.”
Listen at 24:55
OpenAI would likely report huge losses and substantial cash burn if it went public.
“I bet we see huge operating losses and a massive cash burn rate.”
Listen at 26:11
OpenAI should raise substantial funding privately rather than through an IPO.
“I believe OpenAI would be much better off raising a big chunk of money privately from venture capitalists instead.”
Listen at 26:19
Up to four mega IPOs could occur in 2026.
“This year, we've got the potential for as many as four mega IPOs.”
Listen at 26:34
Cramer permits only a speculative position in Roblox.
“I wouldn't mind a speculative position only on robots.”
Listen at 27:40
Venezuela currently produces approximately 900,000 barrels of oil daily.
“in terms of production, it's only about 900,000 barrels a day, which is tiny.”
Listen at 29:34
Most Venezuelan refining infrastructure is currently nonfunctional.
“the majority of that infrastructure does not work.”
Listen at 30:17
Venezuelan refineries operate at approximately 20% capacity.
“their refineries, which is not hardly working like 20% or so”
Listen at 31:47
Venezuela’s reported $300 billion oil reserves figure may be fabricated.
“be suspicious of that 300 billion number for reserves. That very well could be a made-up number.”
Listen at 33:50
Venezuelan oil will not surpass the Permian’s U.S. importance soon.
“it'll be a long, long time before it's more important to the United States than to the Permian.”
Listen at 34:22
Venezuela is unlikely to flood global oil markets soon.
“I think it's going to be a long, long time before Venezuela floods the world.”
Listen at 35:44
A Venezuelan oil-market flood may be roughly a decade away and is unlikely.
“maybe a decade out. So I think that's very unlikely.”
Listen at 36:12
Cramer recommends buying Palo Alto Networks.
“I think it is a buy.”
Listen at 37:20
Rambus is attractively valued relative to its growth rate.
“It's not that expensive versus growth rate.”
Listen at 39:05
High food inflation prevents Cramer from strongly endorsing restaurant stocks.
“I can't pound the table when we still have too high food inflation.”
Listen at 39:46
Cramer advises against buying Wingstop.
“So I'm going to have to say no to wing stuff.”
Listen at 39:50
Investors and traders will strongly demand OpenAI or SpaceX shares.
“I think we'll find that investors and traders will all want a piece of OpenAI or SpaceX at any price.”
Listen at 40:42
Several enormous IPOs could severely damage the broader stock market.
“it could be deadly. for the rest of the stock market.”
Listen at 41:13
Investor capacity may be exhausted by the third mega IPO.
“by the time we get to the third mega deal, we're going to find out, I believe, that we're maxed out.”
Listen at 42:17
Excess mega-IPO supply will overwhelm investor demand.
“Supply, that's excess stock, will overwhelm demand.”
Listen at 42:29
Existing stocks could fall as investors sell them to fund mega-IPO purchases.
“Older stocks, stocks in your portfolio will get hammered because that's the only way the buyers can raise money.”
Listen at 42:50
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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