Mad Money w/ Jim Cramer 10/8/26

PepsiCo

• Jim Cramer · CNBCBullish

  PepsiCo's guidance cut was expected and its core business is recovering; the stock is cheap at 15x.

  PepsiCo beat on organic revenue (3.1% vs 2.7% expected) and on EPS, and its savory snack volumes are rebounding after price cuts. It cut core earnings growth to 2.5–3.5% because it is spending more on promotion and share gains, which are paying off, rather than because the business is weakening. The cut was expected and the stock had already fallen 28% from its February low, so the guidance cut derisks the outlook. At 15 times the new earnings midpoint, versus the high twenties a few years ago, he feels much better and says buying here could be worthwhile, especially if the Iran war ends and oil falls. He notes the 4.6% dividend yield offers real income but little protection against high rates.

  “...the fact that PEP trades at just 15 times the midpoint of new earnings forecast... I'm feeling a lot better about this story. You could do a lot worse than buying the stock of Pepsico down here”at 29:44

• Jim Cramer · CNBCBullish

  PepsiCo's stock fell too far below its true worth, so it rallied despite a cut to earnings guidance.

  Cramer argues that PepsiCo's stock had undershot the company's real business value. That is why it rallied on a day it cut its earnings forecast. He says management recognizes what has gone wrong with the business and is working hard to fix it. The argument is that the market had already priced in too much bad news, so a cut to the outlook did not stop the rally.

  “Sometimes a company undershoots its value. Like I mentioned earlier in that show, PepsiCo stock went way too low versus its company's true worth business, which is why it rallied today even if we're cutting the earnings forecast.”at 43:15

McDonald's

• Jim Cramer · CNBCBullish

  McDonald's looks cheap at 17.2x next-year earnings; he likes it but worries about turnaround execution.

  McDonald's trades at 17.2 times next year's earnings estimates, well below its historical mid-twenties multiple, and the stock has not been this cheap since 2014, when the business was falling apart. That discount is the main reason he likes it. He hedges that he worries about execution of the newly unveiled turnaround plan, because McDonald's is almost entirely franchised and needs franchisees to buy in on any change to store design or company direction.

  “the best thing about McDonald's for a young kid is valuation. Right now, it's trading at 17.2 times next year's earnings estimates, a huge discount from its historical valuation.”at 3:10

The Home Depot

• Jim Cramer · CNBCNeutral

  Home Depot is rate-sensitive and has no reason to buy until mortgage rates fall; it is cheap meanwhile.

  Home Depot has been hurt by high oil prices, which discourage repair and remodelling, and by mortgage rates near 8%, which keep homeowners locked into their roughly 3% COVID-era mortgages and suppress home sales. He thinks rates will stay high while oil-driven inflation persists, unless the government subsidises new mortgages. Despite trading below 19 times next year's earnings with a 3.15% yield, he sees no real reason to buy now. He would buy it when it is out of favour, because it could chase toward 400 once rates start coming down, and he holds it as a diversifier.

  “Unless the president or congress finds a way to subsidize new mortgages... There's no real reason to buy the stock of Home Depot now.”at 7:21

OpenAI

Across the shows: 19 speakers in other episodes, 9 bullish and 22 bearish calls, past 30 days

• Jim Cramer · CNBCUncertain

  Doubts the FT report that OpenAI's revenue fell short; expects an accounting mismatch and an AI rebound.

  A Financial Times story said OpenAI's revenue was about $20 billion below expectations, which hit AI stocks. Cramer says he could not get confirmation from OpenAI and that the story contained nothing new. He expects the accounting behind the AI revenue story will prove not to be apples to apples, and he expects the AI trade to return to action within days. The evidence is thin and he admits he has no confirmation.

  “I'm sure in a couple of days, we'll find out that the accounting on the AI story isn't apples to apples. The AI trade will be back in action.”at 8:35

American Express Company

Across the shows: 2 speakers in other episodes, 1 bullish and 1 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  American Express is a premium card brand underperforming now; great brands deserve patience, he says.

  A caller argued that American Express keeps its full-year guidance while missing revenue estimates and that insiders are selling, so management is overpromising. Cramer concedes the stock is down about 16% and is underperforming. He defends the company as a premium card brand that younger customers are adopting, and argues that great brands and CEOs will have periods of underperformance. He also says now may not be the right time to buy, which tempers the bullish view.

  “It is underperforming right now, but we must make allowances for great brands and CEOs that underperform, or else we're never going to be in great stocks.”at 10:45

Bitcoin

Across the shows: 5 speakers in other episodes, 2 bullish and 3 bearish calls, past 30 days

• Ammar Al-Joundi · Agnico Eagle Mines LimitedBearish

  Bitcoin lacks gold's monetary sovereignty because governments could control it; he's not convinced.

  He argues governments do not want alternative currencies and must control their own currencies. Governments can control Bitcoin but cannot control gold, which is why central banks buy gold for diversification. He is not convinced Bitcoin has the same sovereignty, though he hedges that he could be wrong and says he is agnostic. The stance is a lean, not a price call.

  “I'm frankly not convinced that Bitcoin has that same sovereignty because... I think it can be controlled by governments if they really wanted to.”at 21:26

Agnico Eagle Mines

• Jim Cramer · CNBCBullish

  Agnico Eagle is the best-run gold miner, which he says he would own if allowed.

  Cramer calls Agnico Eagle his favourite gold miner and says its leadership, CEO Ammar Al-Joundi and his predecessor, have run a fantastic operation, the best in show. He says he wishes he could own it, but his contracts keep him from holding individual stocks, so he holds gold instead. His praise rests mainly on management quality and the company's track record.

  “You and Sean have run a fantastic operation, the best in show.”at 21:42

Celsius Holdings

• Jim Cramer · CNBCBearish

  Celsius has an execution problem after cutting too many SKUs; he would not buy it now.

  A caller noted that Celsius admitted it cut too many SKUs, that core Celsius volume is down about 20%, and that Alani is growing 74%. Insiders bought stock after the post-acquisition selloff. Cramer says it is an execution problem. He liked the most recent acquisition, Alani, but the company is no longer executing at the level it once did, so he would not buy it.

  “I think it's an execution problem... the fact is they are not executing at the level that they used to execute. And I am... I would not take Celsius.”at 31:59

Pure Storage

• Jim Cramer · CNBCBullish

  Everpure's AI storage business is strong amid a data storage shortage; the stock has run hard.

  Cramer says data storage is in short supply, which has driven gains in memory and storage names. He argues Everpure, formerly Pure Storage, has a substantial AI business because its technology stores more information in less space with less electricity and more consistent performance. The stock is up about 125% year to date, including 66% in the third quarter. Bullish analyst-day targets for 2028 drove a rebound after an earnings selloff, though he asks whether it can keep running.

  “Take Everpure... They have a substantial AI business because their technology stores more information in less space while using less electricity.”at 33:09

Kulicke and Soffa Industries

• Jim Cramer · CNBCBullish

  Kulicke & Soffa is a good opportunity after its drop, since it does essential bonding work inside chipmaking.

  Cramer says the company does bonding inside semiconductors, which he describes as a lot of the nuts and bolts of the industry. He argues that the stock being off is a good opportunity for a buyer. He leans toward it while noting he still prefers Lam Research and Applied Materials. The case rests on the stock's position in the chip supply chain and its pullback, with no detailed financial analysis.

  “[It's a] company that does bonding inside of semis. There's a lot of its nuts and bolts. The fact that it's off is a good opportunity.”at 41:00

Intel

Across the shows: 3 speakers in other episodes, 0 bullish and 2 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Intel is oversold on GPU-related news; Cramer says buy it near $10 and lower because it's a 2028 CPU story.

  Cramer says Intel fell sharply on a story about GPUs and how much OpenAI can spend. He argues the selloff is misplaced because Intel makes CPUs, not GPUs. He advises buying at around $10.07, adding some now, and buying more if the stock keeps falling. He frames the thesis as a 2028 story, so the payoff is years away and short-term dips are not the test.

  “when we have a day where Intel is down gigantically off a story about GPUs and the price and how much, OpenAI can spend because Intel is CPUs... I think you got to buy Intel all the way down here at $10.07. Buy some here... because I'm talking about a 2028 story.”at 42:03

Constellation Brands

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Constellation Brands was cheap on cash flow after its selloff, and its September trends and Spike Day deal support that.

  Constellation fell from about $115 to $107 after a good quarter with no raised full-year forecast, which the Street read as an implicit estimate cut. On the next morning's conference call, management said September, the first month of the quarter, was strong. Cramer says the stock was very cheap on a cash flow basis. He also points to the Spike Day acquisition, with $75 million upfront and up to $278 million in earnouts, as a popular product move. He cites the stock rebounding to about $123 as confirmation.

  “But when [Constellation] had their conference call the next morning, we heard that September, the first month of the quarter was strong, and the stock was very cheap on a cash flow basis.”at 43:45

Space Exploration Technologies

Across the shows: 7 speakers in other episodes, 10 bullish and 4 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  SpaceX will become more profitable than people think; stock is overvalued now, but worth buying on weakness.

  Cramer believes SpaceX will become much more profitable and faster than people expect. He argues the market is not giving it enough credit for its ability to buy NVIDIA GPUs and rent out the compute to AI labs and hyperscalers. He cites Starlink's new low-frequency spectrum as removing the knock that it won't work in cities. He also highlights its reusable rockets. He says the stock is too high versus the underlying business and speculative at the moment, so he would buy it on any significant weakness.

  “For example, right now, I really like SpaceX, the company, because I believe they'll become much more profitable and faster than people think. It's not going to get enough credit for the ability to vacuum up NVIDIA GPUs then rent out the resulting compute, AI labs, and hyperscalers like it should.”at 45:03

Gold & precious metals

• Ammar Al-Joundi · Agnico Eagle Mines Limited

  Central banks are buying gold to hedge dollar reserve risk; gold has risen from $250 to $4,200.

  Gold has risen from about $250 an ounce around 2000 to about $4,200 today, driven by government money printing and concern about the system. Central banks are now the biggest buyers. They are worried about access to their US dollar reserves, so they are moving toward gold. He argues that central banks are not dummies and are reading the world correctly.

  “The biggest buyers right now are central banks around the world... They're worried about access to their US dollars in their reserves. So they're moving towards gold.”at 15:54

• Jim Cramer · CNBC

  Now is a good time to be in gold, which is at a seasonal low point.

  Cramer says it is historically a decent time to buy gold, citing seasonal demand from Indian weddings and Chinese buying, and that this is a low point of the year. He says gold is a great time to be in, while acknowledging he is biased. He also argues that gold can be part of a diversified portfolio, and he leans on the Agnico Eagle CEO's view that central bank buying supports prices.

  “It's a good time, frankly, in my view, and I'm biased naturally. It's a great time to be in gold.”at 16:13

US rates & the Fed

• Jim Cramer · CNBC

  Oil-driven inflation means rates won't fall much soon; Fed hikes possible.

  Oil prices are up sharply and inflation is spreading through the economy. Cramer cites Fed Governor Christopher Waller signalling that there could be two more rate hikes. He says that is not a shock but was a tough speech to read. From this he concludes that rates will not come down much anytime soon, which keeps rate-sensitive stocks such as Home Depot under pressure.

  “With oil up big and inflation spreading throughout the whole system, you're not gonna see rates down big anytime soon.”at 7:05

AI chips & semiconductors

• Jim Cramer · CNBC

  Data storage is in short supply, driving big gains in memory and storage stocks.

  Cramer says everybody knows there is not enough data storage to go around, which explains the incredible gains in classic memory and storage names such as Samsung, Micron, Sandisk and SK Hynix. He presents this as a supply-shortage dynamic tied to AI demand, but gives little detail on pricing or supply.

  “At this point, everybody knows there's not enough data storage to go around. Hence, the incredible games in the classic memory and storage names.”at 32:57

US Treasuries & yields

• Jim Cramer · CNBC

  Bonds yielding near 6% are compelling, making high-rate growth stocks with no earnings look too expensive.

  Cramer says a bond yielding almost 6% is risk-free and very compelling versus the stock of a money-losing company. He argues that when interest rates are high, growth companies' future revenue and earnings are worth less, because investors judge them against bond returns. He says Wall Street pays less for earnings four or five years out when rates are high. This is why he is more bearish on expensive stocks with no earnings and prefers to wait for lower prices.

  “If I can buy a bond that yields almost 6%, it's very compelling. In other words, risk free, too compelling versus the stock of a company. It also loses money.”at 44:29