>> carter braxton worth of worth charting. >> i've got to go with one of those singled out earlier today. so accenture obviously some would say a low beta boring kind of name, but i think you play it for a breakup. >> all right. thank you for watching fast money. have a terrific weekend. don't go anywhere. mad money with jim cramer starts right 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 friends i'm just trying to make you a little money. my job is not just to entertain but to educate. so call me at one 800 743 cnbc or tweet me jimcramer. we had two sessions today. the first one was a great. one where apple was soaring off. its better than expected quarter. nvidia stock was fighting its way higher and anything tech

taken up with him. but then we had the second session dominated by anticipation of the white house slapping tariffs on mexico canada and china. sure enough, at 3:46 p.m, we got 25% tariffs on mexico and canada, 10% tariffs on china and the market, which had been sagging, just slumped into the closing bell. >> sell sell sell sell sell sell. >> yep. that second session held sway with the dow sinking 337 points as ppe losing 0.5 percent, nasdaq declining 0.2 8%. oh, and adding insult to injury, by the way, president trump later came out and said he was, quote, not concerned about the market's reaction. i wish i had that luxury. we have a lot to cover. so let's go right to the game plan for next week. all right. the fireworks start on monday. well, of course we'll have to worry about the fallout right of the of the tariffs. but palantir is reporting after the close. now palantir is a really odd duck. so we're going to spend a second on it. data driven consultant that helps everyone from packaged goods companies to the pentagon to get more out of the resources. right now, they're focused on fixing

the military procurement system. we give way too much business to a handful of defense contractors, and it jacks up the price of all the hardware we, the taxpayers pay for. now, palantir's voluble, volatile, unabashed ceo alex karp is a messianic figure to some in a pied piper. to others, he caters to his retail investor base and the stock's a levitator. i call it gamestop of the brain. i've been saying it's going to 100. ever since it was in the 50s. now it's at 82. shows no sign of letting up. mark my words, $100 or bust. tuesday's jam packed. all right. now we start the morning with paypal and spotify, both of which could have terrific numbers. paypal is now being captain. alex. chris? i think he's returning to the company to solid growth mode. now, paypal used to be the king of digital mobile payments at one point, but then it fell on hard times as it frantically tried to play catch up to the buy now, pay later crowd. i believe chris can restore the growth rate and the luster, because paypal serves as the digital wallet that often is the first interaction that young people have with the payment

system. now, spotify is a classic beat and raise story that tends to blow away the estimates. i love these subscription businesses, you know that. think netflix and amazon because of prime and spotify is always in the conversation. we also hear from two huge drug companies, merck and pfizer. merck. despite some excellent acquisitions, it's still all about keytruda. it's revolutionary cancer treatment that just keeps working against so many different varieties of the disease. i bet the numbers will be good, but there are other issues. i also want to get more of a readout on the drugs that merck picked up in its recent wave of acquisitions, one for pulmonary arterial hypertension and a whole immunology franchise. pfizer bought seagen, the old seattle genetics, at the end of 2023. we still haven't seen the breakout anti-cancer drugs that would justify the deals. $43 billion price tag. now, maybe we'll hear something good this quarter. if so, the stock could soar very little downside at these low levels. the packaged food stocks have been dogs. dogs ever since the glp one drugs burst on the

scene, especially pepsico. one of my faves with its soft drink and snacks businesses. i think the new weight loss drugs make it hard for the this great company to play offense hasn't helped that the supermarket has become an inflation battleground, but pepsico yields 3.6%. you never know when you can catch a total rotation into this beaten down group. then again, if you want yield in this market, i'd much rather own merck or pfizer. after the close alphabet reports. and we want to find out if the search business is being cannibalized by its gemini ai offering. i think youtube is just on fire and that covers up any weakness. the new cfo, anat ashkenazi, you might remember she was at eli lilly. she tells a terrific story. we'll be listening for anything about the growth of google's cloud infrastructure business. if it is strong, the stock will fly. amd has been quiet of late, and i wonder if the chip maker has landed some big wins because in the wake of this deep seek affair which proved i outfits can do more with less computing power, amd's cheaper gpus

suddenly look a lot more attractive versus nvidia's best of breed chips. all right, that's my thesis. now let's see if it's true. now, we've been focused on a handful of great restaurant chains lately, especially the incredible rally in brinker, which, you know, is chili's. the premier growth stock in the group, though, has always been chipotle, but somehow it's been lost in the shuffle here. now, maybe this is a chance to get back in before the next big move. higher. buying chipotle on weakness is generally the right call, like forever. of course it has a new ceo, scott boatwright, but he's an old chipotle hand and the rest of the crew is intact, including friend of the show, jack hartung, former cfo, now president and chief strategy officer. it might be time to start a position. wednesday, we get results from walt disney. now, recent weather events could be noise as hurricanes impacted disney world last quarter. la wildfires likely impacted the outlook for disneyland this quarter, but i think everything else is hitting on all cylinders, including linear tv stocks soon, putting put in its recent weakness behind it. disney is historically cheap here, which is why we've been telling members of the investing club to buy it. novo nordisk

okay, now this is really interesting. see, this is the drug company behind ozempic. they report now, maybe they can give us clarity about how well these drugs are doing, because eli lilly has already announced soft fourth quarter sales but expects a very good 2025. remember we heard them when we were out in san francisco. i'd like to do the same thing for novo nordisk. if you do get good news from novo nordisk, get this. you might want to buy some eli lilly before it reports on thursday. after the close wednesday, we hear from ford motor. ford has been a disappointment, largely because of warranty costs, things that went wrong. but with long term interest rates high and likely going higher, their sales could be stalling. the stock's been awful, so there's limited downside at these levels i question the upside. thursday more drugs. yes this is a tough drug week or or four mentioned eli lilly reports. while ceo david ricks announced here on cnbc the 2025 will be a good year. we got to get some more details before we plow in. i remain steadfast. we have big position for the trust. next. another trust holding

bristol-myers. they got a whole series of great trucks, but the one people are watching very closely is coborn's. that's the first new class of schizophrenia medications in 30 years, far fewer side effects than the current standard of care. if really you want to call that a standard of care, i bet ceo chris boerner will give us some an early read on prescriptions written this year. now, this could be a nice upside. and i've got to tell you, with that yield, it's one of my faves. after the close amazon reports. although i predict terrific numbers, they might not be as terrific as they have to be to justify the stock's incredible recent run. we enter for the chapel trust. dude this is like our chapel trust week forever. it's a bonanza. but you may want to wait until after the quarter to do any buying. that's not being i'm not being negative. i'm just saying i don't want you after this big run to come in, and then there'll be this give up because people are just taking profits. that's when you want to buy. finally, on friday, we get the labor department's nonfarm payroll. and right now, the fed is concerned that the economy might be running too ho. if we get robust job growth with

higher wages, then i doubt we'll see any rate hikes in the first half of the year. if you're rooting for a higher stock market, what do you really want to see? you want to see. so employment report enough to keep rate cuts on the table, but not so much as to hurt quarterly earnings. bottom line when you get a week that's packed with important earnings reports and the monthly employment report plus the tariff news, you're usually better off sitting on your hands because there's just too much data for any individual to process, even even for an ai powered individual. by the way, let's just throw in this deep seat stuff which has made tech too maddening to buy or sell. and two, let's say boring. so if in doubt, do nothing. i want to go to my home state. i want to go to sam in pennsylvania. sam? >> jim. >> how are you doing? >> i'm all right. how are you, sam? >> i'm good. >> i got. >> an interesting company. >> for tonight. >> that is the fair. >> isaac and company. >> company is trading at a $45 billion, which seems fairly well, cheap for the company. that is one of the most important when it comes to. consumer lending. >> companies outpaced the s&p

over the last couple of years. five year return. >> of 365%. >> so i'm. >> curious what you. think about fico. >> in this. >> age of ai. >> where consumer lending and all this. >> data. >> i got to tell you, i. >> we love fico. we did a lot of work on this company. we came back and then we had will lansing on. i got to speak to will. someone put me on the phone with him. and i was out at a really beautiful hotel in montauk, and we were just talking to the guy. the guy is dynamite. he is a serious practitioner of the game. michael and michael in tennessee. michael. >> mr. cramer. >> how about. >> those tennessee. >> volunteers? the vols. how my question. >> yeah is. >> my question is with. the increasing demand. for copper driven by the energy transition. and electrification trends, do you see copper mining. stocks as undervalued plays right now? >> no, i do not. i keep thinking about simon janikowski when she came on the show as a private company is going to use glass. i'm so afraid that one day it

will wake up and it's going to be glass everywhere in the data centers. and we'll say, why didn't cramer say that copper was good? what was with cramer? i mean what was cramer doing. and the answer is he was thinking about glass okay. anyway next week is jam packed with earnings and economic data. and of course seatgeek is still going to be on. i got some more good tickets from that deep sea guy. mad money tonight is ibm's impressive quarter, a catalyst for more growth ahead? i'm looking at what sparked the stock's run. then i'm tracking the insider buying from the ceos of rh and marvell technologies. don't miss my take on what these moves could have been. foreshadowing. plus, after otis reported weakness back in quarter, i got a top brass saying, why is that stock ever go down? it's like that is press up and make sure you have that card. you know you have to do that. i hate that you got to show it on it. and then it goes higher. and if you know it doesn't. so 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 two eastern. cnbc. >> individually each of us is great. but from here you can see we're one big team. at atlassian, we believe real progress takes all of us working together on new sources of energy, cars that drive to the future, even pizza deliveries. together we can go beyond where we've ever been collaborating we've ever been collaborating from anywhere on everything. as your host, i have some rules. first, no showers longer than 5 minutes. this isn't a spa. (laughs) that's a rule. meanwhile, at a vrbo— when other vacation rentals make you

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dude, i really need a new phone. check out my new samsung galaxy s25 ultra. it's got galaxy ai. imagine this thing running on our superfast xfinity mobile network. and i also heard that it can do multiple things

with a single command. —with google gemini. let me try it. add recipes with overripe bananas to my “dessert ideas” note. that's what you chose to ask it? i had other things planned. ask how to get up to one thousand dollars off the new samsung galaxy s25 ultra with xfinity mobile. >> that's my secret to better odor control everywhere. >> we're halfway through the craziest two weeks of earnings season this week. for nearly a fifth of the companies in the s&p 500. next week, we hear from roughly a quarter throw in the deep sea induced. i sell off some craziness in washington and several extremely high profile quarters. and it's almost impossible to keep up with everything. and that's why i want to focus on some tremendous quarters that might have gotten lost in the shuffle. and i'm going to start with ibm, the legacy tech colossus that found

new life and also new growth under ceo arvind krishna after ibm reported great numbers on wednesday night. the stock shot up 13%. and all i can tell you is i told you so early last year, i explained that ibm stood to be a major winner from artificial intelligence through cramer fav red hat, which is used by developers to create ai applications through its new watson x platform that allows enterprises to create, train and deploy custom ai models, as well as his consulting business, which can hold customers hands, show them how to use artificial intelligence. ultimately, the stock finished 2024, up more than 34%. although it was an open question whether they could keep climbing after that kind of move. but on wednesday night, we got the answer. ibm reported in-line revenues with 1% growth. i know it doesn't sound like much, but now they've had six straight quarters of positive sales growth that matters. given that ibm spent roughly a decade with no growth or negative growth. if you can have such a thing as negative growth, that translated into a 14% earnings, beat off a $3.78 basis, not to

mention much better than expected free cash flow. and that's a statistic that many use to measure the success of this enterprise. the quarter isn't the reason the stock caught fire, though. wall street got really excited about the full year forecast for 2025. ibm's guidance is simple. they gave you revenue growth and cash flow targets. and both of those were frankly, excellent. first, they expect revenue growth to accelerate slightly in 2025. the company projects full year, constant currency revenue growth of at least 5%. not only is big blue glowing, but that growth is accelerating. even if it's happening off a very low base, it doesn't matter. accelerating revenue growth is what we want. as for free cash flow, ibm says it can reach 13.5 billion this year. analysts are looking for over 13 billion and that's 6% growth versus last year. i think that's what sent the stock up 13% yesterday, sent it to a new all time high. now when you look at ibm's three segments infrastructure okay unimpressive down 8% year over year. that's all right. consulting was okay

down 2%. but software the largest segment accounting for 43% of total revenues last year, is on fire. it's up 10% in the fourth quarter. and that's the division i like the most. software got stronger throughout the course of the year, with revenue growth accelerating every single quarter. oh, and let me repeat this again. ibm, once known as an old metal vendor, is now 43% software. i think that could go to 50% before you know it. within the software business, the standouts are red hat, which was up 16% year over year, and automation up 15%. in terms of specific products, management called out that watson x and red hat families of products, both of which have incredibly strong tailwinds from yes ai. speaking of ai, ceo arvind krishna said, quote, we continue to gain momentum with our gen ai book of business growing to over $5 billion in inception to date, up by about $2 billion quarter over quarter. end quote. that is huge. he explained that quote, one fifth of this business comes from software. and the remaining 4/5 is consulting. end quote. krishna touted the company's

flexibility in assisting customers with ai, saying ibm's ai portfolio is tailored to meet the diverse needs of enterprise clients, enabling them to leverage a mix of models. ibm's their own open models from hugging face, meta and mistral. he also cited ibm's granite models, which are designed for specific purposes and are 90% more cost efficient than larger alternatives. that note, on the granite models cost efficiency was interesting, given that so much of wall street and silicon valley has been focused on the deep, deep sea news. this week, when christian was asked about deep sea specifically on the conference call. he called it, quote, a point of validation, and explained that ibm has been saying for about a year that smaller models with faster training times and lower inferencing costs will be needed for enterprise to truly get value from ai. he got it right. this gets to a wider argument with ibm's ai exposure. the company is thinking holistically about how to make sure that its customers are actually benefiting from whatever investments they make in artificial intelligence. see, that makes me think that this team has got some longevity for ibm, because they can become an essential partner for companies

looking to embrace ai for their business, and the customers will keep coming back because they're not getting ripped off. now, i mentioned earlier that ibm spent most of last year rally, but then the stock traded sideways into the end of 2020 for one big reason it lost its mojo is that when the company reported last last quarter in october, management had some mixed commentary on their consulting business. while the consulting division technically missed expectations slightly in the fourth quarter. i'd say that it was better than feared after the downbeat commentary last quarter. more importantly, thanks to the ai tailwinds, management believes their consulting business can return to growth next year. discussing the 2025 outlook straight shooting, cfo jim cavanaugh explained, quote, in consulting, the combination of our backlog levels, record signings in the fourth quarter and our book of business in gen ai support an acceleration in growth to low single digits. end quote. now, it is worth noting next tuesday, ibm hosts an investor day meeting. it's the first since 2021, and this could potentially bring more positive news. now i'm hoping we get a call for

durable mid-single digit growth going forward and potentially new buyback program. given how strong the cash flow has gotten, that could boost ibm's earnings per share even further. so let's see what they have to say. but i am pretty i'm pretty sure it's going to be good. now, full disclosure ibm's price to earnings multiple is higher than it's been in a long time. that always worries people. after yesterday's gain, the stock now sells for nearly 24 times this year's earnings and just north of 22 times next year's numbers. a lot of us are used to low teen to even high single digit for this company, but i'd argue that the overall company's return to steady growth justifies a higher valuation than ibm was getting back when it was a slowly melting ice cube of a business. plus, as the mostly recurring revenue software unit becomes a larger and larger part of the company's mix, you got to expect that the company's going to get a higher multiple because wall street loves recurring revenue, particularly from software. here's the bottom line even in a really busy week, ibm's results totally stood out. the company had solid numbers for the fourth quarter and more importantly, a very strong outlook for the full

year. because this is one of those less direct ai plays that isn't hurt by this deep sea news. now, why did the stock hit new highs this week? and by the way, i wouldn't be surprised if ibm's got a lot more room to run. you know what? it's a terrific tech story for turbulent times. mad money is back after the break. >> coming up, what do marvel technology and the stock formerly known as restoration hardware have in common? cramer helps solve the riddle next. >> join the club and start your investing day before the opening bell with specific strategies for members only. >> by joining the club, it gave me access to. that knowledge. >> from jim that gave. >> me. >> more confidence in my. >> investing decisions. >> it's very helpful. >> it's information. >> that you. >> have is privileged information. there is no other source of information that you can get. >> as much as you. >> can. get from him. >> get investing. join the.

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on most 2024 jeep wrangler gas-powered models. hurry in today. >> yesterday, goldman sachs published a note on the specialty hard line segment. really caught my eye. they reiterated their dim view on anything housing related, but they also decided to upgrade rh, the old restoration hardware from sell to hold. the goldman analyst cited a bunch of reasons. new products, heavy marketing and improved supply chain. bullish guidance. but really, this was just purely an act of capitulation. you see, goldman had stuck rh on their americas sell list. and then the stock proceeded to gain 67% beating the s&p. so they finally threw in the towel and upgraded it to a hold. now i bring this up not to bash the guy okay. because this was the third upgrade for rh in the past month. on january 13th, morgan stanley took it from equal-weight to overweight

january 8th. barclays did the same thing. wedbush also added the stock to their best ideas list in early january. people were really down on this company, even though it's likely that their hamptons house. well, probably brimming with rh hardware. and hey, can you blame them for throwing in the towel? rh has very quietly nearly doubled from its lows last june. very hard to dislike the stock with that kind of performance, but the crazy thing about this run is it is the fact that it happened without a clear turn in the underlying business. the big rally began in earnest with a gap up after the company reported in september. and while these quarterly results were strong. rh also slashed its full year forecast. at that time, the stock then had a positive initial reaction to the company's latest quarter in december, but that quarter included a big earnings miss. rh only rallied because the company raised its full year forecast, and it should optimistic guidance for the current quarter. but the whole time rh has been running, there's been no beat and raise quarter to act as a kind of all clear signal like you would get from so many other companies. and that's how it goes in this business. when

you're investing in a comeback story, you get the biggest gains by sticking your neck out before there's any actual tournaments, any evidence at all of a turnaround. that's what happened here. however, at least in the case of rh, there was one crystal clear sign that the stock was ready to bottom in june. so on june 27th, two weeks after the company reported a particularly soft quarter that crushed the stock, rh disclosed that its visionary chairman and ceo, gary friedman, had personally bought $10 million worth of stock in the open market at an average price of 216, a change. yep, he hit us with a decent slug of insider buying. i'm calling it a cold shot for certain. that's separate from our own corporate buyback, which was enormous. back in 2023, they retired $1.25 billion worth of stock, on top of 1,000,000,000in 2022, before ratcheting that back to almost nothing in the first nine months of the of the 2024 fiscal year. now, keep in mind rh has a market capitalization of less than $8 billion, and that's even after a huge run, given that the stock is now well above $400,

those previous buybacks in the high two hundreds and low three hundreds, which many thought were foolish, are now looking pretty darn smart. but again, the buyback is neither here nor there. i'm talking about the insider buying side ceo ceo gary friedman buying $10 million worth of stock with his own money in his first open market purchase since september of 2018. now, let's establish a couple of things. that $10 million purchase is nothing compared to friedman's overall holdings. he bought about 46,000 shares. that brings his total stake to 3.35 million shares. also, he did some big insider buying and i'm sorry, he did some big insider selling. in 2022, he unloaded nearly $1.5 billion worth of stock. but let me tell you what really matters. as i said before, insider sell for lots of reasons. maybe they think the stock is headed lower, but maybe they need to raise some cash. buy a boat, private island. a lot of guys doing that. however, insiders only bought for one reason. that's because they think the stock's going higher. by the way, if you missed that open market purchase from friedman, well, you had a

chance to hear about his conviction and his company when he came on the show back in september. now, the stock was at 344 at the time. in that interview, he mentioned rh, his history of buybacks. >> since 2017. we bought. back 3.75 billion of our stock. >> and, you know. >> history would prove that we're. generally directionally right. >> you know. >> when we. >> make bets. >> of that size. and so. >> are we excited. >> we couldn't be more excited. >> wow. >> i mean history certainly proven him right. long story short, rh has made a huge move ever since gary friedman did that insider buying back in june. and now wall street is scrambling to get behind this red hot stock. now, look, this is why you have to pay attention to insider buy. which brings me to the next example. oh man, was this. i actually did everything i could to shout this one from the rooftops. it involves marvell technology. now, back in october of 15, chairman and ceo matt murphy, a frequent guest on the show, disclosed that he

purchased just over $1 million worth of stock the previous day, and that was at a price of 77. change just went into the market and bought it. now, this was a much smaller purchase than friedman's, at least in dollar terms, but it represented a much larger increase in percentage terms that 13,000 shares purchased by murphy increased his overall stake in marvell tech by more than 6%. sure enough, that insider buying was a tell as marvell stock rallied aggressively into the end of last year, climbing from just over $70 at the end of september to an all time high of $127 and change last week. and after a bit of a pullback this week when the deep sea news just under 113 now is up today. now, most of these gains came in december when the stock gapped up 23% on december 4th after marvell reported a really amazing quarter with incredibly strong guidance for the next quarter. management had some very positive things to say about how their custom silicon is being snapped up to build ai data centers. it's really taken off since then. custom silicon has a way to be able to save money for these companies. that last quarter was where the narrative all came together for marvell.

management explained that the more cyclical portions of the business were finally at last turning. those have been weighing them down like it was a real albatross. they gave more detail than ever on the scale of the ai opportunity. in response to stock called pfizer, and all that was foreshadowed by matt murphy's relatively small, totally, maybe symbolic, i don't know, million bucks. still a million bucks. insider purchase in october. here's the bottom line. insiders again can sell for a host of reasons, and i tend to discount them. but i don't discount insider buying because they buy for only one reason because they think the stock's going up. last year, gary friedman, the ceo of rh, and matt murphy from marvell tech, made some small insider buys right before the stock soared into the stratosphere. so next time you see something happening similar to that, take a good, hard look at the company in question, because it just might be ready to roar. arthur in california. arthur. >> hey, jimmy. jim? jim, how's it going? >> how about that? i don't know. i have a little tariff action there at the end of the day. i'm trying to figure that out. you

know what is. what is that about? go ahead. >> all right. >> big fan of your show. >> even so. >> my middle son. >> he's a bigger. >> fan. >> of your. >> great. >> enthusiastic advice and. >> all the. >> buttons you press. and he. >> enjoys watching the show with me all the time. >> i am thrilled, you know, younger people, everything. everything. thank you. >> so here's. >> my question. okay. >> i took a little piece of a bite. >> out of this. >> position. this stock, a couple of days ago and planning to take smaller bites out of it. if it goes any lower. but this stock is about 75% down. >> from its all. >> time highs. and that stock is super microcomputers. >> you know, as you were talking, i started getting very interested. i said, oh, down 75% from its high. that could be very good. maybe it's a good company, but you just named a company that had accounting irregularities and accounting irregularities in my book. always equal one thing. sell, sell, sell and always will. and that's what you have to do with

that stock. now i want to go to naveen in pennsylvania. naveen? >> hey, jim. >> hey. >> doug emhoff from. >> bucolic bucks county, pa. >> oh, man. >> were you close to me? you're probably right around the corner. go, eagles! you're probably right around the corner from me in bucks county. >> yeah. >> yeah, i'm. >> in langhorne, so. >> yeah. not far. not far from my. my box made it at the eagles game. it's terrific. what's going on. >> nice. >> so this company seems to do everything right, including e-commerce. >> they're up like 75%. >> over the last year wmt and why don't we have it in the truss portfolio as an investing. >> club member? >> okay. just an honest great question. i've said i have talked about this with the walmart people too. the answer is i thought that if i had costco and i had tj, i shouldn't have walmart. and the answer is that was wrong. when you think the stock's going higher, you should break discipline a little and buy the stock. walmart is amazing. and boy do my kids and i love to shop their bargains.

hey the clothing there by the way. fantastic. all right look the next time you see insiders buying up shares like we saw in rh and marvell, i want you to be thinking take a hard look, okay? because it may be the right thing to do. buy much more mad money, including my exclusive with elevator maker otis after this week's fourth quarter report. hey there. i'm going to break down this deep sea thing. you know, you're probably tired of hearing about it. i don't care, i got you got to hear my take. then all your calls. rapid fire in tonight's edition of the lightning round. so stay with cramer. >> you want to apply to be on cnbc's disruptor 50 list. is your startup disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to apply before february 10th. >> 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?

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expected quarter full year forecast. but because this company is just such a steady operator, the stock only got dinged a little over a buck on the news. plus, while this year looks like it's going to be challenging, otis still put up 8% earnings growth last year despite a not so hot backdrop. so is that why the stock barely got hit in response is really holding in there. let's check in with judy marx. she's the chair president and ceo of otis worldwide to learn more. miss marx, welcome back to mad money. >> jim, great to be. >> with you. >> all right, so i got to tell you, i was worried because obviously we see that a lot of commercial construction has been not growing. we've got a deflationary environment in china, too. but you still manage to have the highest cash flow since the spin. how is that possible? >> yeah, jim, first and foremost, i want to thank our 72,000. colleagues across the globe for delivering. >> for our customers, for the. >> 2.4 billion people a day. >> who touch our product. >> and for our. >> shareholders and each other. how it happened is.

>> it's all. >> about service. >> both in the fourth quarter and the full year. >> we had a stellar service year. >> service 90% of our profits. >> we were. up 7% in. >> revenue for. >> for the. year in. >> service, and. >> our service portfolio. grew by another 100,000 elevators and escalators to. 2.4 million. it helped us drive cash, and that cash was a record. >> for us. >> that 1.6 billion. now that we. generated in cash by driving. down net working capital. >> focusing on collections, we took all. >> 1.6 billion, gave back. >> a billion through. share repurchases. >> and the rest through dividends. every bit of it went to our shareholders. >> well, it's extraordinary. and you basically, if you had told me that you could do these numbers with the amount of actual new equipment sales, i would say that it would be inconceivable. but you've obviously pivoted and pivoted. well, because one of the things i see you're doing amazingly, the, the, the numbers for

modernization are extraordinary. that's a pretty good business, isn't it? >> it's a business. >> that's just at its early stages. >> there's 22 million elevators in the world. 8 million. >> of them are getting to that. >> modern window 20 years and older. and that's just going to add every year. you know, we grew both our orders. and our revenue, almost 18% in modernization. >> in the fourth quarter. >> we're excited. >> going into 2025. >> with. >> about a 13%. >> backlog at. constant currency, and. >> it's going to grow from here. >> we said high single digits. >> in terms. >> of revenue in our guide. we hope to exceed that based on the. >> backlog and. >> just the continuing steady growth. and that growth is happening in every region of the world. >> now, i know a lot of people are worried about about tariffs. we know that there was a kind of late afternoon tariff put on. i don't think the numbers were actually surprising, not even that dramatic. but at the same time, i would think that you're one of the businesses. you don't put a tariff on safety. there's no hope. you can't get out of

it. right? i mean, safety, even in every country on earth, can't be impacted by a tariff. >> yeah, jim. >> and listen, we have. redesigned over. >> the years not just our. >> supply chain for resiliency like many have, but our manufacturing footprint for. >> for resiliency as well. again, well over. >> 60%, 62% of our. >> revenue is. >> in our service business. and that. >> that is growing every. >> year with that high 90 plus percent profitability. but, you know, we like most people in the 90s, we moved and put a factory in mexico. and what we did actually in 2012, we closed that nogales factory. we decided we want our manufacturing to be closer to where we're selling here in north america and closer to where we're delivering and installing. we opened a factory in florence, south carolina, and it supports all of our north america business. and we left mexico a little over a decade ago. so tariffs on the equipment side should be very, very de minimis for us. they were in

2018. >> well, now i remember when the plant was opened and there were huge number of problems that it was a shame too because the problems made people feel like, wait, if you do reshore, we don't know what we're doing in america, but those were completely resolved by the time you took over, weren't they? >> yes they were. and actually in 2024. >> we had hit our highest production level ever in florence. so when. >> people look at the us market. >> i mean, our north america. >> orders in third and fourth quarter. were up 15% plus each. there is construction going on in north america. >> we've got the talented field professionals to do it, and we expect america new equipment to be up low single digit and the service business and modernization to grow significantly here, right at home. >> so tell me about what the commercial real estate market is. we've seen all the bank earnings. turned out it really wasn't so bad. and in some places like new york, we have huge conversion. as a matter of fact, i only saw san francisco to be trouble. are you finding that the so-called real estate commercial real estate crisis

isn't a crisis at all in this country? >> well, i can't talk to, you know, the real estate investors, but. >> what i can tell. >> you is what we're seeing from the developers. from the general contractors. >> and from. >> people who are now making investments versus class b real estate and other places that right now are getting renovated. otis wins in all of those. jim returned to office. we get. >> more wear and tear. >> we get more repair work on on on elevators, residential multifamily was up fourth. >> quarter for the first time. >> in well over a year. and we continue to see kind of that 2 to 8 story building, no matter what the use is, whether it's industrial, commercial or residential, continuing to be the power horse of our business. and then any of the buildings that are maybe not as fully. >> fully loaded. >> or fully inhabited, we're seeing. residential conversions, and we're also seeing people modernize because it's really important to have amenities and

to have a fast, safe, esthetically pleasing, capable elevator in your building. >> and i don't want to beat a dead horse. but if you're a canadian real estate company or canadian office, somebody who's a manager of a canadian office tower that has otis in it just because it's american, that they can't just switch to some canadian operator, that canadian operator won't know how to handle it. correct? >> yeah. listen. >> jim, we are the we founded this industry 171 years ago, and we're still leading it. we when we service, we service as a local otis company everywhere in the globe. our equipment gets shipped everywhere. and everyone thinks of us as local. >> wow. >> well, look, i, i congratulations to you. everyone's so worried about so many different things involving overseas. maybe you're the answer. if you want to stay and have a balanced portfolio of united states and other countries around the world. judy marks, president and ceo and chair of otis. great job in a tough time. good to see you.

>> thanks, jim. it's all. >> about predictability. >> yeah, i guess so. >> really is dead. money is back after. >> the break. >> coming up. lightning doesn't just strike twice in cramerica. >> yeah. >> jimmy choo! >> booyah! booyah! >> booyah! >> thanks for taking my call. >> it strikes every day. cramer is back in a flash with your questions next. monday the top 100 public companies ranked on issues of workplace ethical leadership and environmental responsibility. america's most just companies revealed who's in the top spot monday. squawk box, 6:00 eastern. >> cnbc ready. >> for. >> the big meeting? >> i have to write this project plan. >> i just need to reply. >> to 40 emails. >> every day. your team gets sucked into endless writing tasks and every day hours disappear for everyone except pam. hey, pam. because pam uses grammarly's ai to write in a few clicks, not a few hours. it's one seamless experience everywhere, and it works for the

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>> sell. >> and then the lightning round is over. are you ready? ski. lightning round. i want to start with lou in pennsylvania. lou. >> hi, jim. >> thanks for. >> taking my call. thanks for all the help that you provide. >> to the. >> millions by now. >> of investors. >> to help. >> thank you. >> i'm calling about a company. >> that's a british bank, a large bank. >> that's been. >> involved in. >> investment banking. >> and other parts of banking and in europe and the. >> us for many years, but is now. pivoting away from investment banking in the uk. >> us and. >> england to asia and the middle east, especially china. spc is a company you probably know. >> it's a good company. it is at its 52 week high. if i'm going to buy one of those that's a foreign bank. i'm going to recommend banco santander because i think that is doing a great job. get a little bit better yield. we're upside spain. let's go to fred in illinois fred. >> jimmy. choo choo choo was a tough day to buy a sweater anyhow. >> it was very hard.

>> very hard. >> in order. >> to rise. >> to summit, one must. have paul's summit. therapeutics closed at 2150. >> paul's closed at 2093. robert w dougan. >> you probably know him from. the company they have, pcc pharmaceuticals. they are. >> companies know their companies know revenues. i don't know. and it has not made money. it's obviously just a very big spec. i can't i can't. >> go there. >> let's go to sal in florida. sal. >> hey, i need a little help, mr. >> see. >> then you came to the right guy, my friend. what do you got? >> i have a ten point profit. >> on this company. >> it has a. >> nice balance sheet. >> they just did. the company just did a split, though, not a stock split. they broke. >> it in two. >> but i don't know if. >> it's the problematic 710. >> split like. >> in bowling. or should i just take my profit and split? the company is rescued digital. >> i have read so many upgrades

in western digital that i have to believe the stock is way too cheap. i'm calling that one sunny side up. all right, let's go. let's go to justin in new jersey. justin. >> new jersey justin, you said it right. hey, jim. >> long time fan, short time. >> investor, and maybe a club. >> member soon. how's it going? >> i want you to join the club. we've been having a rocking good time. how can i help you? >> yeah, i would love to. >> well, i'm in property management, right. >> and i see. >> a lot of companies. >> using appfolio, the online. >> property management software. right. >> right, right. it's actually a cheap stock. it's a cheap stock. it's a good one. i typically find enterprise software is too expensive. that one rocks. you're on to something. but see, you know that group i now learn from you. you don't learn from me. i learn from you. thank you very much. let's go to zach in pennsylvania. zach. >> hey, jim. >> calling from philadelphia. how are you? >> good. go, bears! >> go, bears! >> hey. >> calling about a. >> company i. >> own that. >> i'm getting pretty. >> concerned about.

>> companies down over. >> 30% from its all time highs. a company. >> would be adobe. >> i'm worried too. you know, shantanu and ryan is so good. the product is like a lamborghini versus the guys that it's up against. i don't think i want to sell the stock down here. it generates too much cash. i know that it seems like a tough stock to own. i can't sell it at 21 times earnings. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by charles schwab. coming up, the deep sikh debate rages on. but with the long knives out for nvidia, cramer makes his call on the stock next. >> booyah, jim. your integrity makes you the brioche saint of wall street. >> booyah jimmy choo. >> booyah jimmy choo. >> bup bup bup. booyah jim. >> bup bup bup. booyah jim. >> quadruple. that's a lot of carl: believe me, when it comes to investing,

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checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. nate jones... lines things up... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. mind. get your solar generator and free panel at four patriots.com. >> it's not just about. >> the. >> ticket sales. this maintaining that connectivity. with her. >> fans. >> the power of a fan base. >> she's built this billion dollar brand. >> she's able to do that in a pretty unique way. >> this swift effect. coming up next, cnbc take the bull by the horns every morning with jim's top ten. the biggest headlines, earnings reports and jim's hot stocks right to your inbox. sign up now for free at cnbc.com.

slash top ten. >> everyone's gunning for nvidia now. and why not. it's the king of artificial intelligence. it can charge a fortune for its chips because they're the only game in town to get the most out of them. companies need to buy tens of thousands of chips. long live the king! this week, however, we learned that maybe, just maybe, we don't need to buy as many of those chips as we thought. a chinese outfit called deep seek has purportedly figured out a way to get much more out of nvidia's cheaper lower end chips, which makes you wonder why should anybody buy the most expensive ones? instead of spending hundreds of millions of dollars on hardware to build and train an ai model? deep sea claims it only spent $6 million and got something almost as good, if not better, ai for the masses. now, if you're like me, you found all this deep sea chatter unsettling. so let's analogize. let's say we were talking about oranges and orange juice. that's a simple concept.

suppose you want to make orange juice with the most expensive juicer in the market, the openai juicer. it can make one glass of oj from one orange, with an nvidia gpu being the orange in this analogy. but deep seek? well, that's like a brand new juicer that can get ten glasses of oj out of the same one nvidia orange. now, if that's the case, then you obviously don't need to buy as many oranges. you can cut your order by 9/10 and still get all the oj you need. yeah, instead of buying ten nvidia chips, you can buy one and use deep sea allegedly to get the same amount of compute and intelligence. yeah, i snuck in a critical adverb there, didn't i? allegedly. so this declaration by deep sea rocked our world. this week. we took it as gospel. that deep sea spawned by a chinese hedge fund has ended nvidia's ability to charge high prices. and if that's the case, you have to expect that the company will cut prices because its customers won't need as many chips as they did before, when demand was the same. if prices are indeed coming down, then so are the earnings estimates, which means nvidia stock is too

high and therefore must be sold. all very logical. so naturally the stock got pulverized. and made much worse by the way that most stocks, because there are so many one day gamblers who like to play nvidia like it's a roulette wheel. i mean, it's incredible how much this stock is what we used to call football, but not everything that's logical is true. what if the chinese hedge fund isn't giving us the full story? what if the reality is totally different? what if deep sea spent a lot more on its hardware than the $6 billion that they're reporting? what if they didn't get ten glasses of oj out of one orange, but actually just bought ten oranges? and that's what an article in a known authority called semi analysis said today. this publication, which has covered deep sea for longer than most people knew it existed, speculates that the $6 billion cost is highly misleading. they say deep sea is real. hardware spending all in could be more than $1.6 billion. i wonder if the prc subsidizing them. so if you sold nvidia on the deep sea revelations, and now you're finding out that it might not be

the real story, perhaps it was a huge mistake. it makes sense to me if there were really a way for businesses to save a fortune on gpus for ai, then you'd have to believe virtually everyone in tech is a complete moron. and that seems unlikely. but consider this we learned in the last few weeks that mark zuckerberg, ceo of meta. elon musk, ceo of tesla, and larry ellison, chairman cto of oracle, are all paying full price for the chips from nvidia. now, maybe all three are knuckleheads, or maybe there's so much demand that they simply don't have a choice. you have to believe that before they laid out the billions, they did their due diligence, which has to include the deep sea software story that supposedly lets you do more with less. it's not like deep sea was a secret, it just got a lot more attention this week. i am sure they knew everything that was in that semi analysis piece and still went forward and paid full price. so is deep sea in an alternate universe. that bodes terribly for nvidia's pricing down the road? hey, anything's possible, but if you had to design the most punitive way to bring down the price of this great stock, you'd invent something like deep

sea. i think the semi analysis piece is spot on. it may just be one more long knife aimed at nvidia and nothing more. maybe it's not so great to be the king after all. i like to say there's always a bull market somewhere and i promise to find it just and i promise to find it just for you right here. mad money and i promise to find it just for you right here. mad money has been able to have this kind of effect on the world. the glitter, it has settled, and taylor swift has moved on to her next concert venue. it's very top secret with taylor swift, and rightfully so. the biggest possible show you can put on, right? the local economies are benefiting. reporter: swift's eras tour has generated more than $4 billion in spending. how has she been able to change the game with her music, with her fan base? woman: it's someone to whom a lot of people find it easy to connect. she has a way of making everyone feel special and connected. what do you make of the taylor swift phenomenon? it empowers women to feel like they can buy and do anything.