in? i want to come in. >> tim's buying bank. >> two hands. you probably are to the cra really lags the regional banks. >> tim seymour will be at madison square garden tonight with his brother. >> so anybody care? in case anybody cares, tim is going. >> to be here. >> he loves hugs and kisses. >> right? i love. unexpected bristol-myers. >> thanks for watching. fast mad money starts now. >> my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise. >> to help. >> you find it. mad money starts now. >> hey i'm cramer. >> welcome to mad money. welcome to cramerica other my friends i'm just trying to make you a little money. my job is not just to entertain but to explain how we can have such good days. so call me one 807 4360. tweet me jimcramer. the president of the united states is a living breathing talking lightning round giving you buys and sells

rapid fire. you sure don't know his views ahead of time. sometimes of course they completely contradict each other. doesn't matter. wall street likes the energy loves the ideas that are coming fast and furious. which is why the dow gained 400 points. 408 points today. s&p advanced 0.53%. >> house of pleasure. >> but the nasdaq gains 0.22. this is all new though, so we have to spend some time talking about how to handle it. it's going to be an ongoing theme i think for four years. but we have no choice. i have to explain to you the way things are being translated from washington to wall street. i want you to stay current, and i want you to understand the presidential lightning round. so let me say a few things about what i now believe we can expect from the second trump administration. not political, but money, economic first. if you're a trader, trump's a dream come true. he generates a huge number of catalysts every time he talks. i don't think most people should trade too hard unless you do it professionally, but this is heaven on earth for them. second, there are analogs. when reagan came into office and of course i was old enough to be trading. then he talked about

building a 600 ship navy. if you bought the defense contractors, you made a fortune. the difference is reagan was not rapid fire. he was much more measured. but it's still the closest analog i've come up with. third, every time trump talks, it feels like there'll be repercussions on wall street. now, sometimes it's purposeful. mostly, it's to show he's more on the ball than his predecessor. not kidding. so let's start with today's speech given in washington, shown in davos, and the subsequent questioning by some executives about what he intends to do on certain issues. trump used his speech to frame his presidency. now we know he wants to make america great again. or for a given definition of what the word great. that's always going to be his theme. but when he speaks like this, you have to take what he says with a grain of salt. remember, this is mad money, not mad politics. it doesn't matter how you feel about trump. it only matters if you can make money off him. that's what we're here for. now, i know you could say, wait. wait a second, jim. what do you like? cal and steinbeck's east of eden buying bean futures to profit off of world war one. as i see it, though, i'm just trying to educate you about what's acceptable and what's not. the big picture stuff is not what moves. the market might excite

you, but it doesn't move stocks. next, the president wants to talk about energy policy all the time. take advantage of what he calls liquid gold. that's under our feet. i know this sounds crazy to those who don't remember what happened during the previous administration of trump, but the oil companies actually started drilling. they pumped like mad, and it ended up bringing the price of oil down and then really hurting their profits. since then, they have gotten disciplined, and they're holding back from drilling to keep prices high, and they're making much more money. many of you might be tempted to grab an oil stock because trump is so pro oil, but that would be wrong. as russia, brazil, our go to energy expert, said just last night, the oil companies pretty much operate as a herd. they got crushed last time when they drove the price down by pumping too much. president wants saudi arabia and opec to pump more to get prices lower. it's a possibility. but the us controls the price of oil these days, certainly more than the saudis and opec. our producers are disciplined. so i don't see the world flooded with crude. sadly, the drill baby drill stuff is uninvestable for the moment. if president trump finds a way to

get a pipeline built quickly out of the permian basin, or if he can help build the liquefied natural gas terminals faster and make it so ferc really loves them, the federal energy regulatory commission, then we can produce more of the stuff, because there's a huge market for natural gas overseas, but it's trapped right now in the permian. otherwise from wall street's perspective, non story. but it is why i own the natural gas oriented code tariff. my chapel trust though it's been a winner but it's natural gas is in pennsylvania. the president did greenlight about what i talked about last night the return of coal. all right. now, i personally don't like the coal stocks, but peabody has the cleanest coal, and alliance resource partners has one of the most lucrative utility coal businesses. utility coal's what's in play here. it can substitute for natural gas. natural gas goes to high. the president talked about that. coal's been losing market share for ages because it's so dirty, made up over 30% of our energy a decade ago, and it's down to 15%. but trump doesn't mind. he likes it. he actually said good things about it. and you know what? we need more stuff to power all these data centers. and coal can work. those stocks

can work. the president talks about interest rates should go lower. he wants to jawbone jay powell into lowering short rates. again nonstarter. trump can't pull rates down. he doesn't control interest rates. they're set by the fed the bond market. if trump really wants to set interest rates lower he needs to shrink the budget deficit. no amount of hectoring will make any difference at all. now, today, trump attacked brian moynihan, the affable ceo of bank of america, for allegedly discriminating against conservatives. now, i have no idea what to do with this one other than to say it's completely uninvestable. first, i've never heard of it, neither here nor there. second, bank of america's a good stock. he called for a decline in inflation, but to do that, he'll have to find a way to cut food prices, insurance prices, auto prices, auto insurance prices, home prices, health care prices. i didn't hear anything about how he's going to do that. all in all, not an actionable speech, even as there was plenty of action in it yesterday. however, we got catalysts galore. the president's data center press conference ignited the stock of oracle, even as oracle had already pledged to build many more data centers before this.

still, you have to assume for many people, this is the first they've heard of that. we had arm holdings on squawk on the street yesterday. it's a company that designs the architecture for cpus in the data center. you go with nvidia's turbocharged gpus, but we also had arm on mad money last week. the ceo, he said pretty much the same thing. so the stock went up big yesterday. and then people realized, wait a second, that's already known. it went right back. but there was one real winner yesterday and it's one that went down. nvidia, if you want to build a first class data center, which is what trump's talking about, you have to buy chips from nvidia. because when it comes to ai, really the only game in town still now nvidia went up immediately yesterday, but then there was no follow through today because of an outfit called sk hynix. it's another semiconductor company based in korea. it reported a set of unimpressive numbers late last night. i think the weakness in hynix had nothing whatsoever to do with nvidia. my conclusion lots of people got faked into selling nvidia off this hynix story. however, the big data center build out verifies the demand for nvidia's products, so it's still worth buying, which was the case at the end of the day, it's still worth buying. i

think we have to expect that president trump will say something every day that gets a ton of coverage, just like i just described. we need to monitor these these statements. but look, we can't expect all of them to generate actionable investing ideas, even if they do produce bullish animal spirits to boost the market. go buy the s&p now. there will be one offs. call nvidia oracle. but for the most part, the energy, the flurry, the changing of the guard will simply lead to less regulation. and guess what? when you have less regulation, you don't buy any of these stocks. you buy the banks. that's what i told members of the cnbc investing club at my noon club meeting. that's right. you buy you buy blackrock because it's levered to the bull market. and trump wants to stoke and you buy goldman sachs, which will make a fortune from all the mergers and acquisitions that are on the way, especially when you no longer have to fear the wrath of khan lina khan. that is the ftc bottom line. trump wants the bank to succeed. a higher stock market is the badge he craves, even if he's saying bad things about bank of america. but just because there's a lot of bluster, there are only a few tradeable ideas. so i want you

to do this before you pull the trigger. filter things and take advantage of the fact that the pin action for the banks is extraordinary. mike in illinois. mike. >> hey. >> jim, it's mike. >> mike i thought it was you. >> great month. great monthly meeting today. >> very informative. >> thank you. very much. struck. >> structure. organized. >> the catalysts were great. >> great. very informative. anyhow. >> i've got a position. >> in costco. i'm wondering if i should buy, sell or. >> hold additional. >> okay, as we said, you know, we talked today on the call and our view was that costco could fall a little more, but it's never going to get cheap. so the answer is yes. you can buy some here because it is down from 100 from 142. i would wait to 900 though. that's when i would pull the trigger. dennis in new jersey. dennis. >> good evening. >> mr. cramer. this is dennis. >> from new jersey. >> what part of jersey?

>> hackettstown. >> over toward the. pennsylvania border. >> oh, okay. yeah. all right. go ahead. >> okay. >> my question for tonight is about ibm and. >> wondering why they're. >> not participating in. the. trump election or. >> well, i got to tell you, i think it's just a matter of time. i think ibm is doing very well. i'm not as close to it as i used to be, but i think ibm is doing well. and it's got a it's got a legitimate place when it comes to artificial intelligence and compute. so i like it. hey, why don't we go to gabriel in california, please? gabriel. >> yeah. >> hi, jim. >> i'm calling. >> from lincoln. >> near sacramento. >> i found. >> you. >> during the. financial crisis. >> and thanks to you, i've been able. >> to. >> build up a solid ira and investment accounts for our family, so thanks. >> that's what i want. that's what i want. we talk. well. i'm happy. let's go. >> my question. >> given the upcoming. >> merger of.

>> capital one and discover financial, and given that financial that discovers that all time highs, should i wait for. >> the merger. >> or sell my discovery? >> okay. it's a really interesting question, man. i'll tell you what, gabriel. this morning, this at 12:00 at my noon club meeting, i recommended the stock. i said that the merger, because it's going to merge with capital one, is going to be excellent. and i was talking to jeff marx and saying that we should add capital one to the charitable trust, so i can't tell you to sell it. all right, listen, we're going to have to monitor what president trump says every day. but we can't expect every day to produce actionable ideas. stop. look, listen. don't pull the trigger. tonight i'm getting a read on rates and more with sl green realty top brass. fresh off the companies. really nice report. boy it's i love new york. then what could a trump white house really mean for oil stocks and the energy landscape? i'm drilling through the details and telling you where i stand, and later i'm circling back on a health insurance player that you called in on. and you know how much we like to answer your

questions. i suggest that you stay with cramer. >> don't miss a second of mad money follow jimcramer on x. have a question. tweet cramer hashtag mad mentions. send jim an email to madmoney.cnbc.com. or give us a call at one 800 743 cnbc. miss something. head to madmoney.cnbc.com. brian sullivan joins kelly evans power lunch. weekdays at. >> two eastern. cnbc. >> if you're a small business owner, you don't have time to waste. that's why you go to

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♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month. >> chef is in. >> for the past two years, we've seen some incredible gains in the office real estate investment trust, including once we like this group was left for dead during the pandemic. but over time, people gradually started going back to work. business made a huge comeback. take sl green realty, the manhattan focused office reit with a portfolio of newer, high

quality buildings, especially in what's known as the park avenue corridor, the area just north of grand central station. have you ever been there? it has changed so much. it's really great. possibly the hottest part of the city right now. sl green bottom at $19 in march of 2023, but then more than quadrupled, topping out at $82 and change in november while the stocks pulled back. since then, thanks to the interest rates went up. it's still holding up well in the mid 60s now. last time, the company reported a pretty solid quarter higher than expected funds from operations. the key measurement of profitability, by the way, for rights and same store sales, same store occupancy, 92.5% manhattan stock pulled back a little today. i'm thinking buying opportunity. let's check in with mark holiday. he's the chairman and ceo of sl green. he had a better sense of the quarter and what comes next. hello and welcome back to mad money. >> thank you. thank you jim. great to be back. >> okay. i've got to tell you i'm going to put this up so people understand not only is real estate come back, it has come back with an alacrity that i think no one other than you and a couple of other people expected. this quarter again,

was a great quarter. >> yeah, it. >> certainly was. >> and we've been beating this. >> drum, i would. >> say. >> for almost. >> 15 months. >> now because we've. >> seen the dynamic. increasing demand, diminishing. >> supply that. >> really. >> you know, it doesn't take a lot to figure out where that's headed. we did three point 6,000,000ft■!s of leasing last year. that was the third highest. >> in our. >> 27 years as a public company. >> i thought this was like everybody was supposed to be at home and businesses were failing. all wrong. right? wrong. >> well, everyone just delayed, delayed, delayed. >> and then it was. >> like, you know. >> the. >> floodgates opened up. we did 188. >> lease deals, most of them almost almost exclusively straight. >> renewals and expansions. >> nobody's nobody's shrinking. >> okay. so we have we did a little guessing game today. we were talking about how much one vanderbilt is worth because you sold it 11% stake in the building and no one got even $2 billion as close to what it was. how is this building worth so much? >> well, it's quite possibly. i

don't. >> want to. >> you know, i'm a little biased here. quite possibly the. >> best. >> building. office building in. >> new york or in the country. >> and that could be a 4.7 billion. >> it can. >> it can. >> be higher. actually, because that noi from that building. >> is about. >> is going to be nearing $250. >> million of. >> net operating income from one. >> asset, which. >> just shows. >> you what can be done. >> in new york. >> city when you. >> when you mix it all the right way. >> all right. now, many years ago, i was at a dinner where you were at. you talked about the idea that if a governor would possibly make some concessions, there would be actual conversions happening and they would be terrific. i was skeptical, but you were right, and it's happening right now. 754 park avenue. >> seven 53rd third. >> that's a beautiful building. >> thank you, thank you. i got you know what? >> that's another example. >> where private sector. public sector got together. >> got it right. >> and now on. >> the slate. 15,000,000ft■!s of conversions of kind of

secondary. >> and. >> tertiary office into. prime residential. >> it's a triple win. >> it it. >> winnows up the available. >> office space. >> it puts critical. >> housing on the. table and it. >> livens up. >> these cbds. >> which are. >> dead nights and weekends. >> residential makes it 24 over seven. >> well, then it makes you feel like downtown. i don't want to get away from your specialty, but downtown's got a lot of things. are you telling me that as the conversions occur and there's three conversions right here, it can just pop. >> like that. it's conversions with. >> increasing demand. >> it's like. >> a compounding. >> effect, right? >> yeah. if you take the top. >> buildings, not. >> the conversions. >> the trophy buildings, 46,000,000ft■!s. >> in manhattan. >> in the third quarter. 8.5% availability. rate this quarter, 6.7%. >> it happened. >> just like that. >> and that's how. it'll be a latent effect downtown. but that's how it's going to happen. >> okay, so when we have the cars where you got to pay midtown, people are saying that the traffic's down a lot because

of it affect you or not? >> well, i mean, look, it plays right. >> into our strength. >> because all of our buildings. >> are right around transit. >> hubs, right? that's been our specialty. >> grand central. >> you know. >> midtown centric. everything is. >> off a subway. >> or a primary commutation line. >> so, you know, the. >> more people are taking. >> subway, the better our buildings. >> are, because that's core. midtown. >> a big lease ibm. >> yeah. well, that's look, they they've. >> only been in the building like less than a year. >> and they just grew by 35%, took. >> 93,000ft. >> and credit to arvind. >> krishna. >> ibm ceo. bringing his people back, building. >> space that makes them want to come back in a building that gave him the template for everything he. >> needed. now last to talk. what's a fortress area? >> a fortress area? are those, you. >> know. >> those areas. around transit hubs that. >> have 24 over seven lifestyle people don't want to, you know, be in. >> dead places.

>> they want to be. >> in. >> places where. >> you know, they can go out at night. >> get. >> you know. >> great bite to eat. and as a matter of fact, the one madison. >> which i think. >> is a fortress asset. >> we just. >> opened. >> up la tete d'or. great steak house. >> i can't wait to host you there. >> i think that people are are buzzing about all these places and they're your places. i am worried if interest rates keep going higher that things could get negative, but that's up to you. you tell me. >> well, i got the. >> memo today, donald trump said. president trump. said rates are coming down immediately, wants them down immediately. so you know that'll have to. >> we'll see. >> how that. plays out. >> i can tell you is, is that we've been we couldn't we went midtown. we saw all your names because it's on the buildings. we said, these are amazing buildings. this is new york city. the way that that the east part. i used to live at 44th and second. i now covet where i used to live. it is amazing over there. i know a lot of it is. credit to you. so congrats. >> thank you very much. >> and you've really had a big impact on the city. thank you. big impact. thanks. that matters. that's mark allen. he's

the chairman and ceo of sl green. come to new york. go to the east side. there's been nothing there for years other than a train station. now it's the best place to go and to eat to. everybody's back there for the break. >> coming up, donald trump just made energy a top priority. >> we will drill, baby drill. >> stocks in the oil patch have ignited. but does the move have staying power? cramer drills down next. >> we do something nobody else does. we tell you what we're going to do before we do it. >> what am i. >> about jim is. >> he's direct. >> he's absolutely to the point on everything. he makes it easy for someone like me to understand how to invest my money properly. >> i've always thought he's. >> an honest broker. >> somebody that you could. >> really trust. and i thought i would be able to. get more. >> insights from. >> joining the. >> club. >> get invested, join the club today. go to cnbc.com. slash join jim.

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>> let's talk some oil, because that's what everybody's doing. you're only a few days in the second trump administration like everybody else. i got to figure out what all these executive orders flying around mean for particular industries. for example, the oil service space seems like an obvious winner, right? i mean, you think slb or halliburton, as the president who signed an executive order on monday that basically removes virtually all barriers to drilling. of course, that doesn't mean the producers will just drill baby drill, though, as our go to energy expert, rusty brazil of rb energy explained on the show last night, trump may want production. i don't blame him once price is lower, but it's up to the oil and gas companies to actually do the producing, and they know that more supply translates into lower prices. so thankfully, both of the major oil service places, slb and halliburton, have now reported their fourth quarter results, slb reported last week.

halliburton turned in numbers just yesterday morning, so we've got a better sense of what's happening in this industry because there may be some real value here. first, let's talk about slb. now it's formerly known as schlumberger, which is the larger and more international of the two. the stock took off last friday in response to a strong quarter. slb posted modest top and bottom line beats. their north american business delivered the most upside comfortably ahead of their expectations. their larger international business was in line thanks to some softness in latin america. but the real story from slb, as is typically the case, was management's commentary about the future, which i'm going to have to classify as cautious but not terrible. one analyst from jp morgan called it better than feared. and that sounds about right, at least to me. ceo, cfo, ceo olivier lapouge. he noted that in the back half of 2020 for his customers, meaning the oil and gas producers, quote, adopted a more cautious approach, primarily driven by concerns of an oversupplied oil market. end quote. but then he added, quote, although these concerns persist, we anticipate

the oil supply imbalance will gradually abate, end quote, citing global economic growth and a heightened focus of energy security, coupled with rising energy demand from ai and data centers. yes, for this year specifically, lapouge said, quote, we expect global upstream investment to be steady in 2025 compared to 2024. end quote. for the smaller north american side of the business, he sounded less optimistic, explaining that oil and gas activity is expected to decline due to lower publicly announced capex and us land, higher drilling efficiency, and a slow recovery in gas until lng capacity expansions are resolved. now, the stock still got a nice pop on these numbers, and that commentary gained 6% last friday because the results were better than feared. keep in mind this is a stock that fell 26% in 2024. but you know, as i see it, the quarter was neutral at best, especially for the north american side of the business. slb has already given back most of last friday's gains this week, and that seems about right after a quarter that was

not terrible, but also wasn't particularly encouraging. so what about halliburton, which reported yesterday morning. all right. well how stock is simply beaten down having fallen almost 25% last year. it didn't get an slb style bounce yesterday. in fact it lost another 3.6%. and then today it got hit for another 1.8%. why? well, halliburton had mixed headline numbers. revenue was down 2% year over year, slightly lower than expected, while the earnings only beat estimates by a penny. halliburton is much more levered to north america than slb, and right now that's hurting them as north american revenue fell 7% even as the international business was up 3%. but north america is where the action is for these guys. looking forward, halliburton says it expects flat international revenues in 2025, with halliburton ceo jeff miller saying, quote, growth in most international markets is offset by activity reduction in mexico. end quote. other than mexico, the rest of the world is actually looking good for them. for north america. halliburton actually sounded pretty optimistic for the long term, but not necessarily for this

year. for 2025, halliburton expects north america to be down low to mid single digits from last year. that's not good. miller added that they're taking a real hit on pricing in america. that's even worse. longer term, though, he's much more sanguine. miller noted that after conceding and giving those price breaks i just mentioned, halliburton is now sold out with all of its fleets working under committed or contracted programs. good. he also mentioned some new technologies, including zeus, the company's new electric fracturing pumping unit. that's a fracking tool, and this is the part that i like best, miller explained. quote, i believe the next catalyzing inflection from north america services will be up, not down. i believe the most pressing energy problem in north america today is the power shortage, driven by the electrification and power demand for ai, and this cannot be solved without significant amounts of natural gas. end quote i totally agree with him. he goes on to say this is on top of the expected increases in lng exports. these are all very good things for halliburton in 2025. same story as slb. i think it's

compelling, even if it will take time to play out. so then let's ask ourselves are the oil service plays a good bet under the new trump administration? my short answer is not quite yet. could be soon looking at just slob and how that's what we used to call it slob on the trading desk. i'm underwhelmed by the results from the fourth quarter and their outlooks for 2025. i'm also tempered by rusty brazile's comments last night, because getting more production here in the us might not be as simple as drill, baby, drill. the declaration from the white house won't cut it. you know what? i'm going to go a step further, as president trump's main goal in energy seems to be getting prices down, which would be great for consumers. but as i said at the top of the show, it would be terrible for the oil and gas industry longer term, say, over the next four years. i certainly think the oil service corps could make a comeback. the rollback of regulations will make it easier to drill once the oil and gas companies decide they want to drill, it could make a huge difference. plus, well, i think the oil service plays could remain challenged for a while, maybe the entire year. these stocks right now are incredibly cheap, as will be 12 times this year's earnings 2.7%

yield. halliburton ten times with a 2.4% yield. that said, it's hard to predict when these stocks are going to bottom given how cheap they are. though i could countenance starting a small position now. as long as you prepare to go slowly, buy more on the way down. except that these are value plays. deep value. bottom line the whole oil and gas industry loves to drill baby drill of white house, but doesn't automatically take up the oil service stocks or the producers for that matter. after listening to what slb and halliburton have to say, i'd have to say over the past week, considering the macro environment and the new geopolitical factors, i think their stocks can work over time, just perhaps not necessarily right now. still, given how cheap they are, i can't blame anyone for wanting to pick at them down here. just please, i'm begging you, buy them gradually because my bet is we'll get more near-term weakness as american oil companies hold back to keep prices high and profits robust. let's go to dawn in california. dawn. >> booyah. >> jim i'm. >> a three. >> time investment. >> club member.

>> yes i hope you like the talk today. >> thank you. >> great i. >> loved our morning meeting. >> thank you for. >> inspiring me to. >> take control. >> of my. >> finances and learn. >> more about investing. >> that's it we are trying to keep we're trying to teach. we have a menu of stocks you can choose among them. we're trying to teach you how to identify value, teach you how to do it right. and i thank dawn for seeing exactly what we're doing and let's go to work. >> due to all the. firefighters working. >> tirelessly, tirelessly in. california to protect our communities from the. >> fires. >> i totally agree and what a great bunch of people we've got someone who's a relative in there, and all i can tell you is, is that they are fighting a war. there's a war. >> yes, sir. >> jim. >> three separate times. >> i wanted to pull the. >> trigger on this. >> leading integrated power company. >> is it. >> too late? >> the company. >> is. >> vst.

>> you know what, dawn? i have to tell you, it has gone up so, so much. maybe if it comes down, you can buy a little bit. it is just on fire. i can't countenance buying in here. i'm afraid i'll hurt you. but i do appreciate your comments. and i also think i echo your what you're saying about the firefighters. let's go to craig in ohio. craig. >> hey jim a big. >> booyah from southeast ohio. >> oh yeah. >> i my stock is a s corporation. and my old method methodology for utility. >> companies i've. >> always picked up utility companies like aep or southern. sure. >> and their. >> yield is around 5%. so this one as you probably know yields over 6%, but it can't seem to get out of its way. >> no. >> i wrote it all the way up to the 20s. and now i'm actually below my cost, which i should have stuck with it. >> here's what i want to do. i got to get them on because i've got to tell you, when you see a

utility yielding 6% does renewables, there's something very wrong with it. and i'm going to say, don't touch it. let's find out more about it. yes, it is out of whack with the rest of the utilities. all right. after hearing what halliburton and slb had to say over the past week, you know, i think their stock is going to work over time. i wanted to do some value stocks, not just the visitors, not just the constellations. some things that represent real value and how an slb do that. now we've got much more mad money ahead, including my look at another interesting stock that you asked about called alignment healthcare. does it deserve a spot in your portfolio? then what should you make of the latest headlines about tech billionaires? i'm breaking down the intersection of wall street and washington. of course, all your calls rapid fire in tonight's edition of the lightning round. so stay with cramer. >> first on cnbc. verizon ceo hans vestberg earnings outlook and opportunities for growth plus investing legend mario gabelli where he's putting his gabelli where he's putting his money to work. now stay ahe

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i'm not happy with the way that pg&e handled the wildfires. yeah. yeah. i totally, totally understand. we're adding a ton of sensors. as soon as something comes in contact with the power line, it'll turn off so that there's not a risk that it's gonna fall to the ground and start a fire. okay. and i want you to be able to feel the improvements. we've been able to reduce wildfire risk from our equipment by over 90%. that's something i want to believe. [skateboard sounds]

>> get started today with a prescription that's right for you at rex com. >> every time you call in and ask about a stock that i either don't know or haven't looked at in a while, i put it to the side and promise to do some homework before coming back to you with a more informed opinion. you deserve that. for instance, last week, bruce in california asked about a company called alignment healthcare. now that wasn't on my radar screen at all, which is why i said i'd get back to him. so before earnings season goes into a fever pitch, let's get this one. what exactly is alignment healthcare? this is a health insurance company that makes its money in the medicare advantage space, primarily operating in california, but also north carolina, nevada, arizona, florida and texas. young company. under medicare, senior citizens have two primary choices for health insurance once they reach the age of 65. not that i would know. they can either enroll in a traditional medicare fee for service administered by the government, or they can get a medicare

advantage plan run by a managed care company. look, i'm not a health insurance expert, but i know that medicare advantage is a great business. people are living longer than previous generations, and their lifespans are only growing. according to the census bureau, roughly 10,000 adults become eligible for medicare every day. in 2022, we had 57.8 million senior citizens. by 2023, we're going to have 71.2. that's incredible. seniors aren't going anywhere. they're growing like weeds. weeds that need government subsidized health care. from alignment health care's perspective, this is an $826 billion market opportunity. that's one of the biggest i've ever heard. that should grow by 7% annually over the next decade. that's a dire projection. but if you're worried about the budget deficit, but it but, you know, not if you're running a medicare advantage plan. you know, i've been covering this about the government running this deficit. and i'm very worried about medicare now. alignment health care is a company with an agenda. they think our legacy health care system is a disaster. it's broken because we pay health care providers based on the volume of services they

provide, rather than the quality of care. with their medicare advantage plans, they can do things a little differently. there's a reason so many senior citizens have been switching from traditional fee for service medicare to privately run medicare advantage plans. more than half of eligible seniors have already embraced these things, so not the most exciting business in the world. there's no mention of artificial intelligence, nuclear energy, driverless cars, quantum computing, or even space. but if you just look at how the stock is traded, this is up more than 200% from its lows last april. do you think alignment must be some kind of a meme stock? this thing's been rallying like crazy, and it's kept running, even at a time when the rest of health care has gone out of style. the wall street fashion show. you don't see a lot of those stocks moving. what in the world is driving this one? okay, to give some of the analysts credit, there was a fair amount of interest in alignment health care before stock began its meteoric rise. there was particularly exuberance around alignment technology platforms called ava that helps companies identify and proactively manage care for its sickest patients. by using advanced analytics, they can deliver personalized

care and prevent costly hospital visits. that gives it a leg up on the competition. now, alignment health care began its impressive rally at the beginning of last may, when the company reported tremendous quarter and issued strong guidance. the analysts were impressed by alignment's ability to scale its business efficiently, noting that its sales to general and administrative expenses are approaching levels comparable to much larger competitors like humana. as noted by analysts at baird, humana is 45 times larger than alignment in terms of revenue, so it's remarkable that alignment to achieve similar cost efficiencies now, october was the pivotal time for the space, as that's when the centers for medicare and medicaid services released the new their star ratings, which led to analysts filtering these medicare advantage plans by stars online to see if they could get some early intel before the formal announcement. but when those results were finally released, it turned out that alignment healthcare did pretty well. the primary medicare advantage plan maintained its four star rating, and the and their second biggest plan increased from 3 to 4.5 stars. that's very hard to do.

why do these ratings matter? because medicare advantage plans that may maintain their ratings. last year, they grew enrollment by 19% versus only 3% enrollment growth for the plans. where the ratings decline. it's real bad if your stars go down. this momentum continued later that month when alignment reported terrific third quarter, better than expected for both revenues and membership growth. that gave the analyst confidence that this company could convert its new members into durable earnings growth this year. now, earlier this month, alignment reported an impressive annual enrollment period, numbers beating analyst expectations, solidifying its position for the new year. the company's tech enabled medicare advantage plan continues to outperform competitors struggling with lower star ratings and regulatory changes. they've also doubled their membership outside california, now serving roughly 28,000 members beyond the state. it's a little company which now makes up 14% of its total base. this kind of execution has earned alignment. a lot of praise from analysts who believe it's well positioned to continue to take market share. the company also benefited from some of the struggles of the larger names in the space, which i've talked

about before. this has not been a great time for unitedhealth or humana, so that's how we got to where we are today. what about the future? how do you value this thing? well, its prospects are looking bright. you should know that alignment still isn't profitable on adjusted earnings per share base. i don't like that, and i expect to be profitable in the near future. but we like to recommend profitable companies. it's basically a small early stage managed care play. on the one hand, i wouldn't be surprised if alignment can keep beating the estimates, but after the incredible run in the stock, it's basically priced for perfection. for example, the analysts that cover the name like to value the company based on its enterprise multiple. that's enterprise value divided by earnings before interest, taxes, depreciation and amortization, or ebitda. and using their consensus estimates for 2026, alignment healthcare trades at nearly three times the level that humana does. i don't like that tall order, and something to keep in mind when investing, even when you really like the prospects of a business is growing like a weed. plus, let's not forget if you want to bet on a company that only does medicare advantage plans, you're totally hostage to washington.

if somebody in the trump administration gets it in their head to shrink the budget deficit by controlling medicare spending, this entire group is toast. i know it's very hard for our elected leaders to cut medicare. i mean, like really hard, not popular, but someone like elon musk doesn't have to care about the electorate if he's empowered to. and if he so much as mentions medicare cost savings alignment is going to roll over. bottom line right now, alignment healthcare seems like a promising company. they're clearly very good at what they do, but i think it could be a tough stock to own given how much it's already run. in other words, we're late to align. mad money is back after the break. >> coming up, lightning doesn't just strike twice in cramerica. >> we are. >> jimmy choo. >> booya booya booya. >> thanks for taking my call. >> it strikes every day. cramer is back in a flash with your questions next. take the bull by the horns every morning with jim's top ten. the biggest

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don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! >> it is time. >> for the lightning round. chairman the stock. buy buy buy sell sell sell the stock you plan to sell. and then the lightning round is over. are you ready? ski the lightning round. i want to start with carl in new jersey. carl? >> hey, jim is sound. hey, i a buy or sell? >> okay, this is a meme stock, and they kind of get it going. i'm never going to get in the way of meme stock because you never know how high they can go. let's go to paul in ohio. paul. >> hey another big. >> buckeye booyah. >> to. >> you jim cramer.

>> i like that. >> good good. booyah. what's going on. >> hey i'm. >> a club member. >> and i just. >> wanted to thank you and. your staff for everything you guys do. >> thank you. >> thank you very much. >> oh you're welcome. >> hey i'm. >> calling about lam research. >> that stock is so cheap. oh i want to buy it. i want to buy. we have so much semi in the travel trust, but that stock is the cheapest i've seen in a long time. i really like lrc x. let's go to william in new jersey. william. >> hey jim, long time viewer. i have a question about a stock that's been on a nice run of late. it has a nice dividend. i'm talking about epd. what you. >> thought oh my god it's my absolute absolute favorite of the group. i think you just got to just stand there and buy it. it's cheap. it's got a good yield and its business is fabulous. thank you, rusty brazile, for pointing that one out for me a long time ago. i need to go to joseph in north carolina. joseph. >> hey. booyah jim, how are you doing? >> i am doing well. how about you? >> wonderful wonderful.

>> congratulations on your eagles i'm rooting for. >> him all the way. >> well we got we got to hope we got to hope we got to stop jaden we stopped jaden. we win. it's just that simple. what's going on? >> yes, sir. >> well. >> i'm a second time caller. >> long time listener. i talked to you about a year and a half ago when i told you that i had sold my nvidia and made about $300,000 on it. >> yes. >> yeah, i love nvidia. i turn around and i invested that money in a company called crowdstrike, which i know you're familiar with, joe. >> and that one's going higher. we're going to anniversary of the july outage. don't forget. and then it's going to fly okay. >> yeah i know that's that's the thing. and i implored one of your principals, you know, i had 2500 shares of crowdstrike and i waited for earnings out in may, and i sold 1500 shares at 382. and then, of course, the debacle happened in july. and i wound. >> up he doubled down, doubled down on that one. so what's one that we can work on right now?

>> well i've started reacquiring nvidia and that's my question for you. so i love nvidia. i'm back to 2900 shares. but while i was researching nvidia a couple of weeks ago, a company came across to me that was very interesting. i noted that nvidia had taken an investment in it. it's got a balance sheet of $3 billion, low debt to equity of less than 5%, less than $10 billion. market cap, short shares are less than 3%. and it's on nvidia's preferred partner list. innovative ai company, multifaceted. and it's a company called nebulous, ticker symbol nbis. what do you. >> nebulous? >> i don't know, nebulous. i've never heard. >> of it. >> that's terrible. i should have heard of it. well, you know what? i'd rather just own the fact that i have that i don't know it. that's what i'm going to do. the. i have to do the homework. let's go to rich in new york. rich. >> hey, jim, hats off to you and your staff. >> they're the best, aren't

they? they're amazing. what's going on? >> hey, and gold bills. >> oh, yes. >> absolutely. we just have to stop. just get tired of saying that. all right? jayden daniels, i had a guy here who's going to come to the game with me. he's threatening to wear burgundy. and i told him i'm going to pour a bottle of burgundy over his head. he does that. what's going on? >> well, jim. hey, this has been a loser since we bought it back in june at 139. it's now around 121. most analysts are bullish on it. piper sandler has a price target of 193. the average price target is 173. profit margin of 47.6% and a dividend. what are your thoughts on c h d? >> no, not an oil guy here. i mean, you know that in the club we know we're selling our kotara. now let's hit 30. we think you can go still higher, but we don't want to add jeff marx and i talked to the club today. we're not adding any more oils. and that, ladies and gentlemen, is the conclusion of the lightning round.

>> the lightning round is sponsored by charles schwab. coming up is the apprentice oligarch edition already at risk of being canceled? cramer talks the billionaire battle heating up on pennsylvania avenue next. >> booyah, jim. your integrity makes you the booyah saint of wall street. booyah jimmy choo. >> booyah jimmy. >> choo boo boo boo boo. booyah jim. >> quadruple. that's a lot of >> quadruple. that's a lot of booyah. knock, knock. #1 broker here for the #1 hit maker. thanks for swingin' by, carl. no problem. so, what are all of those for? ah, this one lets me adjust the bass. add more guitar. maybe some drums. wow, so many choices. yeah. like schwab. i can get full-service wealth management, advice, invest on my own, and trade on thinkorswim.

you know carl is the only frontman you need... oh i gotta take this carl, it's schwab. ♪ schwaaaab! ♪ have a choice in how you invest with schwab. >> maybe it. >> didn't. >> but my sketches slip into a completely hands free. i just step in, and they're on. >> when you sell with the realreal, we handle photography, pricing, shipping, customer service, and so much more. resale is what we do. so you have time to do you first time consignors get $100 extra. terms apply. >> welcome to reinvented with accenture. today i'm here with margherita della valle, ceo of vodafone. you were employee 25 in vodafone italy. today you're the ceo of vodafone. what is your strategy and vision for the

future? >> we are changing our culture to really. focus on. our customers. we need to acknowledge that. >> change is. >> hard, but if people understand it's for the right reason gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. gina costa... looking simply stunning... what's this? she's opening her fidelity app....

to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. pack. generics now only $1 per. >> tablet at. wrexham.com slash 30. >> what you've been. >> able to. >> accomplish is phenomenal. >> i always love it when somebody. >> tells me i can't. >> do something. >> make a decision. >> we'll take that deal. >> i'll take your deal. >> in a second. >> we'd love to take your deal. >> shark tank coming up next, cnbc. >> join the club and we'll teach you how to manage your portfolio. >> for my mom. >> and jim cramer. >> i've learned how to manage money. >> grow your portfolio. >> and save for retirement. >> get invested. join the club today. go to cnbc.com. slash join jim. >> we're not even a week into trump's second term. and we're already seeing discord among the billionaires. these oligarchs

don't play for dinner. the white house needs to keep them in the game. already some of the billionaires are starting to leave. there has to be some discipline among the players that things will dissolve before they can accomplish anything positive for the stock market. i'm talking about this high stakes game for the nation. let's call it the titan apprentice that president trump is in charge of. but there's no prize available that's big enough to keep these participants playing. as a former judge on celebrity apprentice, i know the drill. like any successful reality show, from the apprentice to the traders to survivor, you need some real competition. you need the backbiting and you need prizes. everyone has to stay motivated. that means you need to see elon musk go off on sam altman from openai. you have to wonder whether satya nadella is being blown out by larry ellison. great stuff there. you need to see some of the photo op ceos pop in and pop out. trump needs them. maybe it'll help when davos is over. get some more players playing. but what you can't have is people leaving the game entirely. when vivek ramaswamy, the weaker half of doge, departed for ohio without

saying a word that wasn't cricket, we heard today that he clashed with musk. he could have stuck around a little more. come on. but why bother? when you're a billionaire, you don't need to put up with the hassle. he reminded me of one of my times as a celebrity apprentice judge when one of the contestants, gene simmons. yeah, the kiss guy, he blew off the contest for god knows what reason. but he didn't even get fired. he just left. he didn't need to stay because he was rich. the others needed the prize to restart their careers. but somehow kiss never went out of style. right now, trump is having the same problem corralling and motivating the billionaires. they need some reason to roll up their sleeves beyond just access. tiktok's. we know elon musk's team can come in and figure out why the drug middlemen keep making more money than the drug companies, given that pharma companies actually do the innovation while the middlemen just get a bigger and bigger cut. you need an outsider to come in and shine a light on this darn thing. take defense spending. right now, the military spends a fortune on hardware, but that spending is incredibly wasteful because we've got this oligarchy of five large defense contractors that control the entire industry. that's why we need someone like palantir, again, a solid gang of

billionaires to run the procurement system, not just update the software, suggest management skill changes like they're accenture or mckinsey or something, but only the richest man on earth can make that happen. what if musk gets bored? i mean, sure, starlink needs government help to take big telco contracts. tesla needs trump to greenlight the federal interstate highway system as designated hands free self-driving zone, including maybe for trucks. no surprise there, but maybe it's not enough. at the end of the day, it's hard to get the richest man in the world to do something he doesn't particularly want to do. we need more big prizes or more commitments that can't be broken, and we need them now, or none of these initiatives will amount to anything. so mr. trump, keep them in the game. the billionaires can get something done. business as usual means more money is spent while entrenched interests dig ever deeper. there are a lot of things going on that you may or may not like, but the one show that can't be canceled. cleaning up our country's heinous balance sheet. we got a unique chance to pull it off here, because the billionaires genuinely don't care about upsetting the big defense contractors, the drug

middlemen, even perhaps maybe social security or medicare, the dreaded entitlements that are eating us alive. but you got to keep these guys motivated. so i hope the president is pulling out all the stops here to keep the game riveting for the billionaires. i'd like to say there's always a bull market somewhere just for you and your mad money. i'm jim cramer. see mad money. i'm jim cramer. see you tom are you ready to help us get the country really hooked on our smoked fish dip? -[ laughter ] -who's ready to get their snuggle on? this company only has one direction to go, and that's up. i think you have something clever. what are your sales? $54,000. -[ whistles ] -oh! john: you've been watching "shark tank." where did we go wrong? you've got so much work to do. it's always bad when sharks are redefining your business plan. you won't budge at all? o'leary: none! zero! -you're giving me no wiggle room here. -oh! i fell in love with just wanting to hang out with you guys. i've got an offer for you. whoo! "you never finish what you start." what?! ♪♪