Mad Money w/ Jim Cramer 7/10/24
Digest
Jim Cramer begins by discussing the trillion-dollar stock club, which includes companies like Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta. He then explores the possibility of non-tech companies joining the club, highlighting Eli Lilly, Berkshire Hathaway, Tesla, Broadcom, JP Morgan, Walmart, Visa, and Exxon Mobile as potential contenders. Cramer also analyzes the recent performance of HIMS, a digital health and wellness platform, noting its strong growth and bullish guidance but also highlighting concerns about its reliance on compounded GLP-1 drugs. He then delves into the lumber market, explaining the decline in lumber prices due to a combination of increased supply and decreased demand. Cramer recommends considering Warehouse, a real estate investment trust, as a potential investment opportunity in the lumber sector. Finally, he discusses the love-hate relationship between the market and enterprise software, highlighting the recent layoffs at Intuit and the subsequent decline in its stock price. Cramer believes that the valuation for software stocks is going lower due to a lack of certainty and scarcity value. He concludes by emphasizing the importance of finding moment markets, those with potential for growth, and encourages viewers to stay tuned for more insights on Mad Money.
Outlines
![](https://s3.castbox.fm/webstatic/images/book.5d108c35.png)
Trillion-Dollar Stock Club
This Chapter discusses the trillion-dollar stock club, which includes companies like Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta. Cramer explores the possibility of non-tech companies joining the club, highlighting Eli Lilly, Berkshire Hathaway, Tesla, Broadcom, JP Morgan, Walmart, Visa, and Exxon Mobile as potential contenders.
![](https://s3.castbox.fm/webstatic/images/book.5d108c35.png)
HIMS: A Health Check
This Chapter examines the performance of HIMS, a digital health and wellness platform. Cramer discusses its strong growth and bullish guidance but also highlights concerns about its reliance on compounded GLP-1 drugs. He analyzes the recent short report from Hunter Brook Media and provides his perspective on the stock's future.
![](https://s3.castbox.fm/webstatic/images/book.5d108c35.png)
Lumber Market: Is It Too Late to Yell Timber?
This Chapter explores the recent decline in lumber prices. Cramer explains the factors contributing to this decline, including increased supply and decreased demand. He recommends considering Warehouse, a real estate investment trust, as a potential investment opportunity in the lumber sector.
![](https://s3.castbox.fm/webstatic/images/book.5d108c35.png)
Love-Hate Relationship: Tech Hardware vs. Enterprise Software
This Chapter discusses the market's contrasting sentiment towards tech hardware and enterprise software. Cramer highlights the recent positive performance of tech hardware companies like Taiwan Semi, Nvidia, and Apple, while noting the decline in enterprise software stocks like Intuit, Salesforce, and ServiceNow. He attributes this disparity to the changing valuation landscape and the lack of certainty surrounding enterprise software.
Keywords
Trillion-Dollar Stock Club
A group of publicly traded companies whose market capitalization exceeds $1 trillion. These companies are typically considered to be among the largest and most influential in the world. Examples include Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta.
GLP-1
A class of medications that are used to treat type 2 diabetes and obesity. They work by stimulating the release of insulin and suppressing glucagon, which helps to regulate blood sugar levels. Examples include Ozempic, Trulicity, and Mounjaro.
Compounded Medications
Medications that are prepared by pharmacists to meet the specific needs of a patient. They are often used when a commercially available drug is not available or when a patient has a specific allergy or intolerance. Compounded medications are not subject to the same regulatory oversight as commercially available drugs.
Lumber
A material that is made from wood and is used for construction, furniture, and other purposes. The price of lumber is influenced by factors such as supply and demand, weather conditions, and economic activity.
Warehouse
A real estate investment trust (REIT) that owns and operates industrial properties, including warehouses, distribution centers, and manufacturing facilities. Warehouse is also a major producer of wood products.
Enterprise Software
Software that is designed to be used by businesses to manage their operations. Enterprise software can include applications for customer relationship management (CRM), enterprise resource planning (ERP), and supply chain management (SCM).
Intuit
A financial technology company that provides software and services for small businesses and consumers. Intuit's products include QuickBooks, TurboTax, and Mint.
Salesforce
A cloud-based software company that provides customer relationship management (CRM) services. Salesforce is one of the largest software companies in the world.
ServiceNow
A cloud-based software company that provides IT service management (ITSM) and other enterprise software solutions. ServiceNow is a leading provider of cloud-based ITSM solutions.
Moment Market
A market or sector that is experiencing a period of rapid growth or change. Moment markets can offer investors the opportunity to generate significant returns, but they can also be more volatile than other markets.
Q&A
What are some of the potential non-tech companies that could join the trillion-dollar stock club?
Jim Cramer highlights Eli Lilly, Berkshire Hathaway, Tesla, Broadcom, JP Morgan, Walmart, Visa, and Exxon Mobile as potential contenders.
What are the main concerns surrounding HIMS's reliance on compounded GLP-1 drugs?
Cramer expresses concern that HIMS's business model is reliant on a temporary measure, as the supply of GLP-1 drugs could increase, leading to the discontinuation of compounded medications. He also notes the potential for litigation risk due to the unapproved nature of these drugs.
What factors are contributing to the decline in lumber prices?
Cramer explains that the decline is due to a combination of increased supply, driven by new mills in the Southeast, and decreased demand, resulting from higher mortgage rates and a slowdown in home building and remodeling activity.
Why is the market showing a contrasting sentiment towards tech hardware and enterprise software?
Cramer attributes this disparity to the changing valuation landscape, with software stocks losing certainty and scarcity value compared to tech hardware companies. He also suggests that enterprise software customers are less willing to commit to long-term subscriptions due to uncertainty about future economic conditions.
What is Jim Cramer's overall outlook on the lumber market?
Cramer believes that the decline in lumber prices is temporary and that the market is close to a bottom. He expects that as interest rates start to decline, home building and remodeling activity will increase, leading to a rebound in lumber prices.
What is Jim Cramer's advice for investors regarding enterprise software stocks?
Cramer suggests that investors should be cautious about enterprise software stocks due to their declining valuations and lack of certainty. He believes that the recent pullbacks in these stocks present buying opportunities, but investors should proceed with caution.
What is Jim Cramer's overall message to viewers?
Cramer encourages viewers to stay tuned for more insights on Mad Money and to focus on finding moment markets, those with potential for growth. He emphasizes the importance of staying informed and making informed investment decisions.
Show Notes
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.