My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a little more consumer, and I promise to help you find it. Man money starts now. Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramer, my friend. I'm just trying to make a little bit of money here. My job is not just to entertain, it's to teach you. So call me at 1-107-4-3-C-M-C. Tweet me at Jim Kramer. Something is not right. And we got to talk about it. Remember what happened last year when speculative stocks took over the market? They climbed and they climbed and they climbed ever higher. As complacency and over-enthusiasm took over the field. I called it the year of magical investing. I said enjoy it while it lasts because it's going to end. And then badly sure enough in the middle of October speculation peaked. And the year of magical investing came crashing down. I bring that up because we've had a huge run here. A run that continued today with the Dow gaining 115 points. SB advancing point two, six, ten, Nas, that edgeing up point three, six, ten. And those same speculative stocks unfortunately are leading the way. But let's pull to part. I can tell you what's really going on because I don't want you to get hurt. First is I explain last night we've come up real far real fast. The rally is now long in the tooth by every single admission. Nevertheless there are plenty of people who get too enthusiastic right about now. Every time there's a rally they think that anything they buy goes higher. They actually think they're geniuses. They lost all this but they're too cocky. Same as last year. Cocky's not a positive trait when you're buying stocks. You know nothing. Incredibly what did these people get excited about today? The exact same stuff that first made and then lost them tons of money last time. Nuclear power, quantum computing and space. I love nuclear power but even with a more favorable regulatory environment. It's just not a great business. Building nuclear plants costs too much and by the way take way too long. That's why the vast majority of publicly traded utilities want nothing to do with them. Now after the disaster Southern company which had severe overruns when it tried to finish the last two out of four new projects that it had. It took 15 years for Southern to build two new units thanks to design complexity and problems with the splodging. As well as bankruptcy of the builder. It became a joke. Everything could go wrong. It didn't go wrong. The original estimate? 14 billion. Final cost? About 36 billion dollars. Look I'm not dismissing nuclear power. If you want clean energy it is your best solution. I'm just saying that because of its complexity you need to go with bigger companies that aren't going to go bankrupt during the construction. The other that is StockswimmyRan looking for discounted growth-based service Vistra. That's a very good independent power producer with plenty of nuclear exposure. I buy it. I also like consolation energy which is trying to restart 3 mile oil and the company knows NUX has a bunch of NUX in its fleet and I think represents decent value at these levels. I also like G.V.Nova as well. That's the power plant maker which is building a small form nuclear reactor in Ontario. And it's also partners in building a nuclear reactor plant for the Tennessee Valley Authority. G.V.Nova is a terrific company and we talked about that today at our monthly CNBC investing club meeting. We're comfortable with the numbers and the time for it. How about the quantum stocks? I believe that one day quantum computing will be very important. But today is not that day. Right now the publicly traded companies are just science projects. They all talk a big game. But again the only viable quantum businesses belong to Google, IBM and Honeywell. I own Google for the Childhood Trust. I also think IBM is a terrific buyer. Honey's will spin it off its quantum business known as a Quentinium later this year. It owns 54% of it. It looks a little more than 50. But it's still. It's a very valuable asset. Space is easier because of the mammoth IPO of SpaceX. But to us soon by Elon Musk maybe later this summer. I think it's going to be a huge hit. The interim anything that looks like SpaceX should go higher, including rocket lab. I'm blessed in rocket lab because it's got a 1.85 billion dollar backlog. Giving them terrific visibility to future of what was up a lot today. It needs to say to get your hands on any SpaceX might be difficult. But I think it'll be a better performing in Tesla. Why am I so adamant that speculation is getting out of control again? Well exhibit A has to be a company called All Birds. I got a pair of All Birds in my closet. Then I threw anything. I bought them there cool. Not so much now. These new balances. I have a problem with my ankles. These new balances are a lot cooler. Six weeks ago All Birds seemed to be headed into the dustbin of history. Stock was at two bucks and changed. A couple of solutions. It has been ever since it came public. It doesn't make any money. But rather than shut down, it did something I'm sure it thought was genius. All Birds sold its shoe business to American exchange group. And it announced a definitive agreement with an institutional investor for a $50 million convertible bond, which I'm quoting from the release here. Will enable the company to pivot its business to AI compute infrastructure with a long-term vision to become a fully integrated GPU as a service and AI native cloud solutions provider. And quote, "Yep, they pivoted from casual shoes to AI. And they're changing the name to New Bird AI." The company sees a need for more compute and it's going to bridge the gap. They say that New Bird AI will, and I quote, "Innocently seek to acquire high-performance low latency compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyper-scalers are unable to reliably service." Oh, I got it. There's a compute shortage and we know who to call a casual shoe maker. Who would know more? I can't think of anyone better positioned to negotiate toe-to-toe with Taiwan semiconductor. Or go out at Hammer and Tonks with Jensen Wong from Invitator for chips. Then the all birds people think about it. They know laughs, they know campus, they know rubber souls. Those are three of the most valuable traits when you're butted up against Michael Intrator Coruille, right? Oh, and of course, they probably think that if Intrator wants a Bitcoin miner, he can switch to a data center manager. Why can't a shoe maker do the same thing? Of course, there's a simple answer. Bitcoin miners already run data centers as part of their business. All birds wasn't even a successful shoe company for having to say, "You have to stock rally nearly 600% yesterday on this Bafo news story." It does have to be thinking though, Nike's been a real tough stock to own. Why not open a Jordan line of GPUs? Just do it. Maybe one holding could do a line of always one holding that could rival Coruille. The way for Under Armour to get back in the game is to go all in on GPUs. CEO Kevin Plike wants to own a liquor business. He's versatile. Seriously, you want exposure to this area? Last night, Tyler and Sammy, the actual maker of chips for a video, said that CPUs are in short supply. That means go buy AMD and Intel, like everyone else, so stocks are up a lot, but it's certainly better than buying this convert. We buy in the stock. I mean, I just think that, well, you know how I feel about this. I would not wait to say, "I got a better idea." Instead of buying all birds, maybe buy Nvidia. Call me crazy, but when it comes to GPUs and service, I want to go with Chancin. I would look really nice people from all birds. I just think you know this more and has a real sense in the industry. All birds couldn't even figure out footwear. And I have still one more idea. All birds, I'm an idea machine. All birds is basically creating an all-new company here. It's doing so without any vetting, any actual scrutiny, because it's publicly traded, it's gel-led and creaping too. Before this gets too far down the road, maybe the SEC gives the people from, give the bird people an a jingle. And she's just maybe, I don't know, review the company to be sure it isn't just a colossal joke. Look, I'm a free market guy from way back. But the bottom line is, this one's a speculative bridge too far from me. New bird AI belongs where all birds belong. At the back of your closet, if not a cage. Norman, New Jersey, Norma. Hi, Jim. How are you? I'm trying to buy part of my stock portfolio with stocks that I know. Yes. And so when I'm a customer, and I use the product, I know you always recommend that. And so I tried to do that. The stock that I own and want to talk about is Cava. I enjoy eating in their cafe. I find the food fresh and good value for a food restaurant. I purchase Cava at 88. Hold on. And I'm really into red. Your opinion, should I buy more? You're in the red. Cava's at 91. You're not in the red. You're doing great. And I totally agree with you. 212 Cava. I just think it's exactly what you said. I think it actually might be the next to polly. I want you to hold on to it and it becomes down. I think, Norman, you should buy more. Thank you for calling. How about we go to Eugene in Ohio, Eugene? Who's your gym? 25 years watching Mad Money. Holy cow, thank you. Well, apparently to Ohio here, Jim, my plate is on Snapchat. Kicker's Snap. With any investigation. No, there's nothing there. But let's just like, you know, I've been fighting this snap now for, I don't know, how many years. Saying, don't invest in it. So far, I'm looking pretty good, frankly. Let's go to Rich in Texas. Rich. Hey, Jim, hello from low to Texas. How are you doing today? I'm doing well. How are you, Rich? I'm doing great. Hey, listen, I bought this social media company at 141 and wrote it down to $120 under fears of the New Mexico judgment against meta and systemic profitability concerns. But with its recent deal with net or social, it's clear that Reddit's profit and growth will expand. But given the hyperbolic gains of $42,000,
to share over the past weeks to $162. Has it gone too far to fan? - No, no, Reddit should not have been down that much. I always Steve would have been with Kamuong, 'cause he knows how much I think Reddit is a very, very valuable company. And I gotta tell you, if I had a bigger company than I could and snap up that $31 billion business, I would do it. I think that you can train on their stuff. It's very exciting. Yes, it's been up a lot in the last week, but so many other stocks. I really think that that is one that you want to own. Okay, guys, listen to me. The symbol is bird. All right, I am all for free markets, but what's happening with all birds is just one speculative bridge just too far from me. On my money time, shares of shake shack have been put on a back burner this year. But could the burger chain start serving up some big gains for you? I'm taking a close look. Then, wow, it debuted today. Madison air solutions. You hear them people going like, "Maddie, when I was trying to do the show at nine o'clock and they wouldn't let me think, "that's okay, I don't need to think, I can just do it." I read two cards, actually not. But I'm running through the name to tell you if it's a buy and bulwag plays a pivotal role in keeping our financial markets running. So why has this stuff been taken to the wood shed? I say we talked to the top brass to find out. So stay with Kramer. (upbeat music) Don't miss a second of Mad Money. Follow @Jim Kramer on X. Have a question, tweet Kramer. #MadMentions. Send Jim an email to
[email protected]. Or give us a call at 1-800-743-CNBC. Miss something, head to madmoney.cnbc.com. (upbeat music) - Everybody likes shake shack. The burger chain this started as a hot dog cart in Madison Square Park. You know what, and that's why the stocks been so frustrating. When you walk into a shake shack, there's usually a line and it's one of the best burgers yet. Yet if you bought $1,000 with a shake shack five years ago, you'd have only about $850 left today. I mean, don't have to sum up the return. Company was doing great when COVID showed up, but the pandemic gutted their business and it took three years for shake shack to become profitable again. Even after the world reopened, shake shack still had to prove more to Wall Street. Investors became less willing to pay up for companies that felt special, but didn't look efficient enough. Then the GOP dashed one weight loss worry set, and consumers also started pushing back against high prices. Shake shack ain't exactly cheap, but you're gonna spend at least 20 bucks if you want a real meal, a burger, fries, and a soda. It's a premium fast food chain. There are not a lot of those. It's hard to figure out what the peers are, but that does mean you pay premium prices. I bring all of this up though, because I think the business has improved dramatically in recent years. Something that's not really reflected in the share price, even with the stocks nearly 23% bounce year to day. Let me set the seat. After the pandemic, the business only really got going again in 2023, when shake shack's revenue hit $1.08 billion, with profits of $16.2 billion. In 2024, the revenue climbed a $1.25 billion. That income's still growing to $40.5 million, despite rising beef prices. Then last year, revenue hit $1.445 billion, and then income jumped to 58.3 million. So I mean, long story short, without your jack drink, I think shake shack's back. Now a lot of that is thanks to Rob Lynch, a guy with head on the bus show a bunch of times, he's just terrific. He took over a CEO of Shake Shack and March of 2024. After long stint running, and I think turning around Papa John's, when Lynch took over, he didn't hurt a broken brand. He got a beloved brand that simply needed better execution. That's the opportunity here. You see, shake shack never had to fix the product. It's burger. It never went bad. It had to fix the machine around the burger. And that's exactly what Lynch has been doing. He's great at that stuff. You can already see some of that deeper in the numbers. The company's restaurant level margin got to 22.6% for the full year, driven by operational improvements, supply chain savings, and labor efficiency. Build costs for new stores came down 20%. That matters a lot because investors don't just want more locations. They want more locations with better returns. The stock style up nearly 23% since the start of 2026. There's a real chance that Shake Shack reports again in early May. Same store sales will come in at the high end of expectations. Help by value-walkers. You love those menu innovation and improving trends over the course of the quarter. But even if the quarter's strong management may not rush to raise the full year forecast, because beef prices are rising. And their international licensing business has meaningful exposure to the middle east. That could potentially give you a buying opportunity, but I'd have to tell you, it's going to hurt the numbers. Long term, though, I think Shake Shack's biggest advantage is the fact that they have an alienated their customer basis, like so many other restaurant chains, which have-- they took the price up a lot of these places. People got very upset. Most chains spent the last few years leaning too hard on price. They kept pushing menu prices higher and higher, sometimes because they had to, and sometimes because they could get away with it. And the process cost-refelt ripped off. Well, Shake Shack's-- oh, I've always been on these pensive sites. They were less aggressive in the price sites. And they always made sure to keep some cheaper alternatives on the menu. Now, historically, Shake Shack is under-invested in marketing. Now that they're firmly profitable, again, there's a real push to spend more on ads. I think that's a smart move. This is a brand that still has lots of room left to widen its audience. And then there is the operational stuff that matters more than people usually realize. This is not just about ads and new menu-uses. It's a throughput issue. They're getting faster and tighter in the stores. Ticket times have improved. Kiosk now account for more than half of the INshack. I can even use the Kiosk. I actually figured them out. And I'm terrible at Kiosk. Labor deployment's gotten smarter. There are small equipment changes and kitchen changes that can improve speed and speed consistency and get rid of waste. Now, none of that's flashy, but it improves throughput. And throughput's the name of the game in this business. Of course, that does not mean the risk is gone. The biggest swing factor for Shake Shack is still beef. The stock's been heavily tied to cattle and beef losses. The stock won the company, OK? Which is one reason why it's been such a frustrating performance years. If beef spikes, the margins get hit, and then the stock gets punished. That's right. But even if Lynch is doing a good job, even if Travis holding up, even if the long-term unit growth story is improving, this thing can still get clipped if input costs move against them. That's just the reality of the business I saw with Texas Roadhouse. And for the past three years now, beef's been moving in the long direction. There's also some macro consideration we had talked about. The World Cup could matter, especially given how many Shake Shack locations sit in your host cities and high traffic areas. I don't want to over-emphasize that point. This isn't a constellation brand, which will make a fortune from the World Cup. But it's fair to say Shake Shack may have more traffic help coming this summer than the average burger chain. Then there's the all-important store growth. Shake Shack put a 45 new locations last year, and this year, it's expected to grow its footprint by around 15% with cash on cash returns moving toward 50%. If the company can keep getting better unit economics, then this stops being viewed as a recovery story and starts becoming the great growth story that it used to be. Of course, the stock's been a disappointment for six years now, but that's exactly why I think it's really interesting. The expectation's got reset. Story got less romantic. The market got tougher. And in the middle of all that, the business actually seems to improve dramatically. That's why I think Shake Shack should not be held down forever by its reputation. If CEO Rob Lynch keeps doing what he started doing, tightening operations, lowering building costs, a bill costs protecting the customer relationship, spending more intelligence behind the brand, and scaling without messing up what made Shake Shack special. Then this can absolutely come one of those stories where the company quietly fits itself up before the stock really caught on. Does it mean Shake Shack will go straight up? I told you, I can't if it's not that tough beef is. The high price journey's multiple here. It also can still hurt them. One bad quarter can still knock the stock around. But the bottom line, when you zoom out, the picture looks pretty clear. Shake Shack was doing well, got four by COVID. Then sales came back first with profits lagging. (upbeat music) Now if I'm losing the turnaround, maybe real. I know I'm a believer and more importantly, I am a satisfying customer. And my money's back if the break. Coming up, the largest IPO of 2026 so far just dropped. So should you be buying in? Cramer's looking into Madison Air to see how fresh it could be. Next. (upbeat music) With the market now fully recovered from its aram related weakness and back to setting fresh all time highs, it makes sense that the IPO window would open again. And sure enough, today we got the largest through listing of the year, the IPO of Madison Air Solutions. That's M-A-I-R for you home gamers, which is a commercial airflow and cooling company. All right, this one's intriguing because Madison Air places some really attractive end markets. Like semiconductor production, advanced manufacturing, and of course equipment for the data center. (upbeat music) That's why tonight I want to walk you through this story. Pictures of windmills can't beat that. Let's start with the basics. Madison Air calls itself a quote, "Leader in the Mission Critical Indoor Air Solutions Market. "Are you mission critical or mission critical?" All three of his customers [BLANK_AUDIO]
Advanced air flow and cooling technologies that quote, "flipers superior air quality and tangible results, higher productivity, lower energy costs, and improve operational performance than most demanding." If I'm saying quote, "their business includes a data center cooling unit, a division that purifies air for semiconductor fabrication facilities, a commercial high volume low speed fan business for the name I can't repeat on air, and a couple residential focus brands that take air purifiers and midifiers." Overall, 60% of mass and air sales come from commercial products with the other 37% being residential. Now sometimes companies can go a little overboard in creating a story for themselves, a bit of mystique as they come public. And some of that's happening here. Mass and air said in its perspective that it's focused on R, O, A, or return on air, which says the final is the tangible value created when air becomes a strategic asset. They cite all kinds of stats to elaborate on this. Their equipment can save up to $9,000 per minute by preventing downtime for data centers. Clearing room air flow control can reduce contamination instance by up to 30%. Standardized test scores go up as much as 5% for students and classrooms with improved air quality and so on and so forth. Hey, I'm unmoved by this idea of R, O, A, return on air. There's no need for mass and air to overhype itself like this. At the end of the day, we're talking about a company that makes high quality products for a series of attractive end markets. What's more do you need, frankly? This is basically a successful roll-up that's made a bunch of smart acquisitions over the past decade to build itself into an air flow and cooling powerhouse. That's the best way to think about Madison air. It's a shrewd roll-up within a tractor set of industrial end markets. It's somewhat similar to forging power solutions. Another one we like to roll up of the electrical equipment space, which was the largest IPO of the year until Madison Air came strong, came along. So that's the basic story of how do the numbers look? Honestly, pretty good. Thank you some adjustments to smooth out the numbers after the acquisition of April Air last year. We can see that Madison Air's pro-former revenue grew modestly from $3 billion in 2023 to $3.1 billion in 2024. But then jumped to $3.5 billion in 2025, a 13% increase from the prior year. The fact that Madison is accelerating revenue growth, R, makes the story even better. Companies also solidly profitable with their EBITDA margins rising from the low 20s to the mid-20s over the past few years. Pretty good. What else? First and balance sheet looks fine here. Madison Air is going to use all the proceeds from this IPO, meaning over $2 billion to pay down debt. After that, especially to have about $3.3 billion net debt, an leverage ratio of about three and a half times, which is not bad at all in this industry, especially from a roll-up. The company also has strong cash flows. And I like to see that it had $4.39 billion in orders last year. And it ended 2025 with a backlog that was just over $2 billion. Again, the numbers are overall really strong for Madison Air. So this company's got a good story and impressive financial. But what about the valuation here? If the stock shut up more than 17% today is part of the debut, the deal price is 27 at the high end of the proposed range. It took a long time to get the stock open. Today it opened for trading at $32 before finishing the session at $31.31 in change. I think the best way to look at the valuation for Madison Air is what's known as an enterprise multiple. Measured as enterprise value, enterprise value means that's the market capitalization plus net debt divided by earnings before interest taxes depreciation and memorization. For anything capital intensive, that's a more informative way to look at things than the price journey is rollable. We have to use last year's numbers. Not ideal, I know, because we don't have enough information to come up with even a back of the envelope forecast for 2026. I want to compare Madison to vert of another company I really like, a leading supplier of power and cooling equipment for the data center, as well as street classikating ventilation air conditioner, HVAC companies, carrier, global, Johnson controls, and trained technologies. When you stack these stocks up against each other, I have to say that I think Madison Air looks pretty darn reasonable. And nearly $32, the company has an earnings and enterprise multiple of around 20. That's well below vert of, but it makes sense as vert of has better earnings growth and is strictly a data center and industrial story. An enterprise multiple of 20 is basically in line with the three classic HVAC players I mentioned, which have enterprise multiples in the range of 16 to 25, despite the fact that Madison has the best EBITDA growth of any of these companies last year. So you know what? I think M-A-I-R or mayor can be bought right here right now, even after the stock's strong debut. Buy, buy, buy. For an initial price target, I'll throw out 41 bucks, which would give the company roughly the same valuation as trained, the most expensive HVAC comparison. Of course, we'll have to see how the estimate looks once the analyst's quiet period ends, but I'm pretty optimistic about this. In fact, because I like the story and because I like the ticker, I'm going to do something that I don't usually do except for really well established companies like Microsoft, Mr. Softy or of course, in video, which is the name of my late dog. I'm going to give Madison air solutions a nickname, mayor of Eastown, after one of the best HBO shows in recent memory. Most authentic Delaware County Pennsylvania accident impression that I've ever seen, painfully authentic, even as I am from boardroom, Montgomery County. But here's the bottom line. The market has bounced back. And now the IPO market has reopened for business with the largest deal of the year. Fortunately, it was a good one. I like the Madison air story. I like the numbers and the price toll looks fine to me, even after solid pricing and good open today, even after this move, I think mayor of Easttown is a bar. Sam Pennsylvania, Sam. Jim, so I got to stock here at F.A.'s Energy It's a stock that I've been invested in for a while. The company has been struggling recently, but there is a rebound going on. What's interesting with the company is that they have a 2% margin headwind that they attribute to the tariffs. Of course, with the IEP ruling, those tariffs are now what has been a headwind is going to be a tailwind. So Chris, what you think about the potential for margin expansion as a result of this 2% expansion. And I also want the company's management to look into selling those inverters to potential data set of customers. So cool. Maybe they should do that. This has been such a disappointing stock. The other day, Sam, we talked positively about first solar. I know you don't want to hear that. You're looking for it in face. But we think first solar is better. And I think end phase has just been a disappointment for too long. Let's go to Ronnie in North Carolina. Ronnie. Hey, Jim, long time view of the sun. You're very much. Oh, thank you, Ronnie. What's going on? Not much. I've got my question on Cisco. I held Cisco for several years. But the share prices seem to grow very slowly. I've been looking at right now. This is like it's up about 27 bucks a share over the past year. So with very interest, investments in AI, do you think they're good by or profitable by? Yeah, I do. I do. Now, we did solve the tablet just meeting. Nice came. But we have so much data center. I felt like that we were just taking on too much talk about that in today's meeting. I think you're in great shape without Ronnie. It's doing very, very well. Chuck Robbins doing a terrific job there. I like what I'm seeing from Madison Air. I think it stopped to me for right here right now. I don't know if you listen to the CDO. It's pretty terrific. Now, as much more made money, including my sit down with broad ribs, the Fintech players been the champion for you for retail and best of the years. I'm learning more about the coming road. Coming to road where it's headed with the CDO. And investing in tech might seem like the only way to get ahead in this market. But today I'm thinking into one household name. It deserves more attention from investors. And of course, all your calls wrap up in parts and nights since the lighting round. The scale of Clamp. [MUSIC PLAYING] One of the most exciting things about being a shareholder and publicly traded company is the fact that, at least in theory, you got to say in that company's affairs through your stocks, voting rights. But far too often investors don't even take advantage of it. Or maybe they can't. That's why I want to talk to broad bridge financial solutions. It's a financial technology company that helps banks and brokers operate more efficiently, communicate more directly with their clients, while also processing proxy voting for some of the largest companies in America. They've made a big push to increase shareholder voting participation, which we know we like here, especially for retail investors. At the same time, the brokerages the stock. I don't really get it. It's going down 40% from its peak last August. It could be 27% decline year to date. We're going to find out about this. It's one of the many professional services companies that's been hit by AI displacement worries, not facts. So let's take a closer with Tim Gokies, the CEO of Broadbridge Financial Solutions. Tim, welcome back to my money. Oh, Jim, thank you very much. It's great to be here today. All right, so Tim, there's a lot to talk to you about. But I don't want to talk about the decline of the stock yet. You're doing something that is very interesting, which is tokenization. But I think a lot of people, when they hear that, they say, oh, I don't understand that. I wish they would just talk about playing old. But it's too exciting. And you're involved with Mr. Novogratz, who's a really terrific guy. Yeah, we're excited about this opportunity. We think it gives retail investors another choice. I think it's going to draw more investors into US equities, foreign investors, younger investors, people that currently have coin. But as you know, being able to vote is one of the core things about owning an equity. And it can be complicated. And we're going to simplify all that for retail investors, but also for the public companies who [BLANK_AUDIO]
thing is sort of incoming votes from a variety of different channels now and bring all that together to simplify it for them. Okay, but what is tokenization? What does that mean? Well, it's a representation of an equity and it can be either issued natively on chain, which is sort of a new technology, or it can be a representation of a traditional equity, which would be a mobileized someplace, but then represented on chain so that it can be traded real time 24/7. All right, so that would be something that maybe younger people would be interested because it's like they're fastened with that. I don't know if the older folks would really be that focused on this. Maybe they would. They may be. It depends. You know, there are people today that have a lot of, a lot of say, Bitcoin or other holding that they want to hold equity, so they want to see it all in one wallet. Also foreign investors. Oh, okay, that's right. I mean, particularly I know we had a fellow that was, it would represent African gaming and they would much, you have much more at home with this. I don't plan, especially to some of their currencies are not that strong. What is the announcement with Galaxy earlier this month that I thought was pre-revolutionary? Yeah, we are excited because Galaxy's a core company in this space. They have shares that are both traditional shares, but they also have natively issued on-chain shares. Right. They are providing the voting for those on-chain shares for their annual meeting, which is coming up in just a couple of weeks. So we are going to be providing the full end-to-end voting for on-chain shares. And again, we think tokenization is going to be a real tailwind for our company because as it drives the new investors, we're going to be able to do that whether they're tokenized by the company, the way Galaxy is, or whether they're tokenized with a broker dealer or an exchange. How are you at helping us get some voting rights if we have our money with an index fund? Well, great point. I'm really glad you raised that. Voting choice is something that is really growing. So one of the issues, if you're a fund holder, is, well, how do you have your voice be heard? And over the past few years, it's really developed to enable retail investors to have their voice heard. We did this for eight funds three years ago, 100 funds two years ago, 400 funds last year, 900 funds this year, with four trillion in assets. And what it allows you to do is to express sort of a choice among several different policies to say, broadly, both my shares in line with that policy, and really gives me talent best of that choice. Now, how much money do you make perv? I don't know, vote or by a contract that you make with the company. Is that how it works? Yeah, for voting choice, it is, it's a technology service that we provide to the asset manager. And so it's a negotiated fee sort of as a platform that provides. Okay, all the things that I'm hearing don't seem to be things that anthropic would hurt or open AI. But your stock is clearly reflecting a drag from AI. Can you tell me it has anyone knocked on the door of any of your clients with a superior product because otherwise it to me, it's just something that doesn't make sense? Well, I'm glad you're raising this because I think it's a real opportunity for broader shareholders. I've been a buyer myself. And, you know, it is true that many SaaS companies, particularly ones that have a seat-based model, where if the number of people go away, the number of seats would go down, have been hit. And I think we've been somewhat caught up on that, but we're very different because as you point out, what we do is we connect thousands of public companies to hundreds of broker dealers to literally almost 200 million retail investors. And that's not something that is going to be vibe-coded away. And on the contrary, AI is actually a tailwind for us because we can move faster. We can provide more new products which we already are with real revenue today. And it's going to be a great source of efficiency for ourselves and for our clients. When I checked research, I didn't see anyone who was just thinking you're in danger. I mean, look, I get it. I get it. Like, you know, into what I didn't think was in danger. And then Proplexie sends me a ballot and what it could look like. Or it sends me how to write it my taxes. I mean, is someone sending me a ballot, a mock ballot, and I just don't get it, like from one of these. There's, we are not seeing anything, Jim. And it's when you think about the connectivity that you had to provide, the end-and-autodibility, all the regulatory reporting. This is a highly regulated area. So, again, we feel this is just really much more of an opportunity for that authority. Okay. It can't talk about your program, but Exxon, which is a stock that actually had a great performance. Yeah. You know, this is, again, another really exciting development that gives voice to retail shareholders. So, as you know, retail shareholders hold about 30% of shares. They vote at a lower rate because as convenient as we make it, it still lets the buttons to push. What this allows people to do is to sign up to say, look, it tends to be that retail shareholders vote with management because if they don't like management, they sell the shares. So, it allows them, and we're used to defaults in other parts of our life to basically subscribe to say, hey, I'm going to get the materials. But if you don't hear from me, I want to vote with management, and it makes it much more convenient. And what we've seen is nearly 10% of Exxon's investors signed up in the first go around this year. That's going to build over time. And as we look across all the data, we're seeing that about a third of those are new voters that haven't voted before. What are you making a commonsense school? I'm in favor of commonsense. This is really one of the very exciting development. I'm waiting for anthropic to really decide, you know what, I'm going into a broad rich, not going to happen to him going to the CEO, Robert Finch services, solutions, who stock is down 40% for, I'm going to say it, no reason at all. Thank you for that. Well, welcome to my back edge of the break. [MUSIC] It is time to lighten up the trend. [INAUDIBLE] I also know there's a little coach that's on my step where you play the cell. [BUZZER] And then the lightning round is over. Are you ready? Get down to the lighten up, there's no way to start with. Marty, in Arkansas, Marty. Yeah, we're at 340, you're doing for retail. Thank you, it's everything to me. All right, my company had 2025 revenue, 440 billion. It's in a growth phase of transform from legacy tax on into the digital AI. We used to have been in the spot, and it was announced Microsoft, the real power sales thought, and yesterday, AWS. I'm asking about getting back from the asses, lemon. You know what, and you know what better than I do, I know it's from Monroe, Louisiana, and I've always felt that it was a decent spec. And you qualify by 40 out of a lot of interesting customers there, I'll go with you on that one. Let's go to Mara in 4A Mara. Hi, Jim. Thanks for taking my call. Okay. I'm good. I'm good. I learned a lot from your book. Oh, thank you. I have very modest portfolio, anyway. I'm thinking of selling my venture global stock and buying DKV corporation stock. What do you think? Oh, geez, I like venture global. I think venture global could, you know, I didn't like it initially, but it's come down. It's, you know, the world is going to be a change place. venture global has the net, the LNG. We had the car. I'm saying, don't make that move. Let's go to BK and Massachusetts BK. Professor Kramer, this is BK. By the way, I want to say that you brought so much energy this afternoon at the monthly meeting. I signed up to pull trigger on P-Song, but that was a fun call. Oh, my gosh. Oh, my gosh. I wanted to get things rocking and rolling. Thank you. Thank you. Yes. Anyways, so I wanted to get your thoughts on poet technology. Poet technology. There you come into the quick. I do not know poet technologies. I am a poet. I am not a poet and I don't know it. Okay, let's go to Robin and Michigan. Robin. Hi, Kim. Robin. I'm in the time that I love your show. We watch every single night. Oh, thank you. Thank you. Oh, it's great. I'm happy to talk about that. Oh, awesome. So I bought this stock a few months ago. I sold it, then I bought it back in and now I just don't know what to do. And this stock is fastly. At 6 I was recommended this thing and it went up to like 35. It's a 24. I think it's a buy. I do like cloud flare more. I'm reading a Matthew. He's probably posting some interesting things on Twitter. I think, oh, Jesus, what's up 7 today. Hold on to it. Hold on to it. But if it goes down by more, it's 5.6. It was just way too cheap. Let's go to Mary and Illinois Mary. Wow, Mr. Kramer. Thank you for taking my call. Okay, man. I'm full too. It's about a financial real estate investment trust. It's ARR, $2 billion company with a PE of 5.3. I've not heard from all time. I don't understand why the yield so high and it does concern me. I know that higher rates don't necessarily help it. I've never really been a big fan. But I can see that you wouldn't buy it. And that led to a conclusion of the nightingrow. The lightning round is sponsored by Charles Schwab. Coming up, has PepsiCo cracked the code to succeed in the new consumer packaged goods space? Kramer is popping the top on what's working next. Tomorrow, kick off the trading day with "Swac on the Street".
Live from post-9 at the NYSE. Like the old days, Jim. What were the old days like, Jim? I'm Meda Kiv. [laughs] Really? Nothing? Not taking anything today? Sometimes, yeah, the beauty. It all starts at 9 a.m. Eastern. [music playing] [cheering] [cheering] Do we spend too much time talking about tech? I think we forget the big gains can come from all sorts of areas. Isn't the 3% gain in PepsiCo the same as the 3% gain in the video? This morning PepsiCo's went on the guard and put on a clinic about how to grow earnings in a group that we've all for the most part given up on consumer packaged goods. From escalating raw costs to a consumer who feels hard-pressed about spending on expensive snacks to pesking competitors taking share, we've learned not to trust these companies when they tell us everything's fine. But the quartzist lesson is quite different. He tells us you can win by innovating and win by paying attention to detail. These traits come with a consumer that might have changing tastes or allowing PepsiCo to triumph over all sorts of diversity hence the $3.00 and change rally today after better than expected quarter of solid hour. Let me walk you through the details here because I think it's an important story. PepsiCo is a complex company and doesn't lend itself to easy analysis. There's free to lay the snacking business as the cheap move to the stock. Then there's the beverages led by Pepsi but also of course with the inclusion of Gatorade which is at a total facemake facelift today. The company's been challenged by a multitude of hardships. There's the younger consumers, newfound affection for foods that are natural and organic, not really fruity-less stock. There are people who are on the G.O.P.D.S. One weightless drugs who make them avoid binge eating junk food. There's a whole cohort that's been priced out of them because of all the willing to leave price increases in the food aisle. They're belly. Now some of these headwinds have dissipated. We're seeing some behavior change among people in G.O.P.D.S. ones. They seem to have accepted that they aren't going to eat as much as they used to but it hasn't changed taste. The solely snacks still taste good to them. You just can't eat as many. The answer is sport packages. That's what Raymond figured out. A small form factor pack of chips with a good price is question of year. The price differential of a smaller bag is work for more than just G.O.P.D.S. One years. It seems like a great deal for consumers who are tired of inflation. Second, Raymond's winning with innovation. The fast hydration system of G.O.P.D.R.A.D. Fast food to hydrate the water was just introduced. I think it's going to be a home run. There's acquisitions like Poppy, a more natural drink that's doing quite well. And it all seemed a little cool about these changes though. Most focused on how Raymond's been able to control costs and everyone filmed that contains the chips and the plastic and aluminum that the drinks come in could of course run away inflation but didn't. Having been through COVID, Raymond's learned how to source from around the globe and he's hedged an aluminum until the end of the year. Plus Pepsi goes scale us into a crush on price. The smaller players who can't keep up with the sourcing and they certainly aren't hedged on aluminum until the end of the year. So Fritos taking share. He's盯 down in the analysts who are mostly focused on gross margins and not the bigger picture of Pepsi goes business. They seem to be expecting the same shortfalls, the other food companies get them. Now with this one, what Raymond's work shows is that you have to be inventive. You have to be willing to cut price which the old, which he only did with the chips by the way. And you have to source from around the globe. Oh, and you need some luck like the changing attitudes of consumers on the GOB dash once. That's how you get a Pepsi go style of such a price. And the day you should always look for wins wherever you can find them, whatever aisle they're in. And there are plenty of wins outside of tech. The bank doesn't asterisk that money. Go make some of it. I said there's always a bookmark in summer. I promised I'd find it just for you or your man money. I'm Drew Kramer, Cedar Ma. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable. But neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. If you have the full mad money disclaimer, please visit CNBC.com/madmoneydisclaimer.
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