Mad Money w/ Jim Cramer 11/6/26

Space Exploration Technologies

Across the shows: 50 speakers in other episodes, 67 bullish and 24 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  SpaceX's third-quarter results were very strong, with accelerating revenue, EBITDA beats and GAAP profit.

  SpaceX's third-quarter revenue rose 161% year over year to $14.6 billion, nearly $2 billion above expectations, with growth accelerating from 15% in Q1 and 92% in Q2. Adjusted EBITDA rose 306% to $8.8 billion against a $6.4 billion estimate. It posted its first GAAP profit as a public company, at 35 cents a share versus a 13-cent consensus. Q1 revenue guidance of $33-37 billion was well above the roughly $22 billion Street estimate, and all three segments beat. Cramer says the stock trades at over 16 times consensus 2028 EPS of about $8, which makes it cheap if the bull case holds. Starlink subscriber numbers missed, at 13.6 million against 14.23 million expected.

  “It's easy to see why SpaceX's revenue surged to $14,600,000,000. That's up a 161% year over year and nearly $2,000,000,000 above expectations.”at 15:16

• Jim Cramer · CNBCBullish

  SpaceX's push into wireless could make Starlink's addressable market much larger.

  SpaceX announced an $8 billion acquisition of a Spectrum leased portfolio in October. Reports suggest it might lease cell towers from Crown Castle or buy the low-cost carrier Boost Mobile from EchoStar. Cramer reads this as SpaceX wanting Starlink to be a fourth national wireless carrier, not just a rural satellite provider. If it succeeds, Starlink's total addressable market should be much larger than thought. He still wants to see a wireless service people actually want to use.

  “The point is that SpaceX clearly wants Starlink to be competitive for... Wants it to be the fourth national wireless carrier.”at 18:24

• Jim Cramer · CNBCBullish

  SpaceX's AI compute rental business is ramping fast; a $500B–$1T exit ARR for 2027 is not crazy.

  SpaceX's AI segment, which rents out computing power, grew from 17% of revenue in Q1 to 33% in Q2 and 52% in Q3, and 56% of EBITDA. Its revenue rose over 800% year over year. Compute deals with Google, which pays $920 million a month for access to Nvidia GPUs, and Anthropic, which is rising to $3.1 billion a month by December, have kicked in. Nameplate compute grew from 1.0 to 1.7 gigawatts through September. Musk expects about 3 gigawatts by year-end and 13 gigawatts by the end of next year. Spot pricing is above the top of the expected per-watt range, and payback periods could be under a year. Cramer says if SpaceX can add compute at that pace, a $500 billion to $1 trillion exit ARR for 2027 is not as crazy as it sounds.

  “At $7,600,000,000 the AI segment's revenue was up over 800% year over year... Google is paying $920,000,000 per month for access to SpaceX's NVIDIA GPUs.”at 19:11

• Jim Cramer · CNBCBearish

  SpaceX's compute buildout is extremely costly and needs more debt or share sales, which concerns him.

  SpaceX guided fourth-quarter capex to $35-40 billion, nearly double the $20.1 billion expected. Jensen Huang says a gigawatt of compute costs about $50 billion all in. Musk's 10-gigawatt plan for next year implies huge spending before adding the space and connectivity segments. SpaceX also agreed to a $40 billion debt financing with Apollo to buy Nvidia GPUs. Cramer expects it will need several more such deals or sell more shares, which is a concern.

  “The company also guided for $35 to $40,000,000,000 in capex in the fourth quarter, nearly double the expected $20,100,000,000.”at 24:27

• Jim Cramer · CNBCBearish

  A SpaceX–Tesla merger would be complicated, add noise, and undercut SpaceX's valuation case.

  Musk said the two companies formed special committees to discuss a merger. Cramer thought a merger would eventually happen, but says an all-stock deal between the roughly $1.8 trillion SpaceX and $1.4 trillion Tesla would be extremely complicated and add noise he is not sure he wants to ride out. He notes deal stocks have not been working. A Tesla deal would also undercut the valuation argument, since SpaceX trades for about 16 times 2028 EPS while Tesla trades around 100 times its 2028 estimate.

  “Now I've long thought that that merger would happen here, but a merger between the $1,800,000,000,000 SpaceX and the $1,400,000,000,000 Tesla, almost certainly by the way in an all stock deal, would still be extremely complicated”at 25:40

• Jim Cramer · CNBCBearish

  The blue wave in Congress raises political risk for SpaceX, including scrutiny and Texas plans.

  The week before earnings, the biggest story was whether Musk or President Trump ordered a slowdown of Starshield, Starlink service for governments and militaries in Ukraine. Service has been restored, but Cramer says it shows how hot-button the business is. After this week's election, a blue wave in Congress and Texas could bring scrutiny, possibly congressional hearings, and could affect SpaceX's plans for data centers and launch sites in Texas.

  “Now we have to worry about what the blue wave in Congress and Texas means for SpaceX.”at 26:46

• Jim Cramer · CNBCBearish

  Heavy share supply from lockup releases could overwhelm demand in the short term, so he is waiting to buy.

  SpaceX's float was less than 5% of the IPO shares at first, but now about a third of shares outstanding are free to trade. The rest will be released gradually over about the next eight months. The final release from Musk and core insiders comes after the Q2 2027 earnings report, likely in July 2027. Each release adds supply against the same demand, so Cramer expects to get a better price later. He says this supply could overwhelm demand in the short term and is the main reason he has not bought the stock, even though the shares are down almost 30% from their first-day close.

  “I think that supply short term could overwhelm demand.”at 27:25

CoreWeave

Across the shows: 85 speakers in other episodes, 25 bullish and 91 bearish calls, past 30 days

• Jim Cramer · CNBCBearish

  CoreWeave's debt costs are too high, and it must explain how it can repay and keep funding growth.

  CoreWeave is a neocloud building data centers while borrowing heavily. Its cost of debt is now very high, which Cramer calls too high. He questions how it can pay the debt off and what its plan is if it cannot issue more debt, since the cost has become too expensive. He notes its public bonds carry mid-teens interest rates and says the stock's 6% relief rally needs a catalyst to go higher.

  “The cost of their debt is now sky high. Too high. ... Can they give us a reason not to worry about the mid teens interest rates for their public bonds?”at 4:43

Cisco Systems

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

• Jim Cramer · CNBCBullish

  Cisco is oversold after its AI-driven selloff, and CEO Chuck Robbins should deliver, so the stock is cheap.

  Cisco reported strong AI orders earlier in the year, but its stock was dragged down in the broader AI selloff and has fallen back to the 90s. Cramer believes the stock has become oversold and that CEO Chuck Robbins will deliver, so the shares look cheap. He says it might be worth buying some after the upcoming earnings report if the Core Weave and Nebius reports go well.

  “The stock has been caught up in the incredible tsunami of AI selling. It's fallen all way back to the ninety's. Now I think Cisco has gotten oversold. I think Chuck Robbins is gonna deliver. I think his stock's actually cheap.”at 6:29

The Kraft Heinz Company

• Jim Cramer · CNBCBullish

  Kraft Heinz CEO has a plan to unlock value and reduce debt, so he can repeat his Kellogg success.

  Ahead of Kraft Heinz's investor day, Cramer says the CEO made money for shareholders at Kellogg and can repeat that. The company has already sold a majority stake in a unit that includes Maxwell House for nearly $500 million to pay down debt. Cramer says the company has far too much debt and that the CEO has a plan to bring out value.

  “They got way too much debt. I think this man is a moneymaker. I think he has a plan to bring out value.”at 7:47

AT&T

Across the shows: 7 speakers in other episodes, 3 bullish and 4 bearish calls, past 30 days

• Jim Cramer · CNBCBearish

  AT&T represents old technology, so investors should not own it given Starlink's competition.

  Cramer uses Starlink in Europe as an example. He says he could replace a $150 system with a $50 system that is much better and much faster. He calls Elon Musk a vicious competitor and says AT&T represents the old way while Musk represents the new. On that basis he tells listeners they should not own AT&T.

  “I think that Elon Musk is a vicious competitor. I think ATT represents old and he represents new. So I am going to say you should not own ATT.”at 10:16

Broadcom

Across the shows: 10 speakers in other episodes, 10 bullish and 5 bearish calls, past 30 days

• Jim Cramer · CNBCNeutral

  Broadcom is a great company, but investors should not be overweight data center stocks like it.

  Cramer is cutting his exposure to data center stocks, including Broadcom, where he had large gains. He says Broadcom is a great company and that holding a position is fine. He says investors cannot be overweight data center companies because another downdraft could cost them money. He is selling a stock he likes to reduce concentration risk.

  “I think I'm trying to cut where I can exposure to data center, particularly where I had very big gains like Broadcom. ... Broadcom is a great company.”at 10:59

Cardinal Health

• Jim Cramer · CNBCBullish

  Cardinal Health's stock has recovered after two good quarters, and the club will keep most of its position.

  The club bought Cardinal Health all the way down after the stock fell about 60 points. Two good quarters in a row followed. The club trimmed a little because the position had grown large, but Cramer expects management to tell a great story at the JP Morgan Healthcare Conference in January and wants to keep most of the shares.

  “We bought it all the way down for the club and then boom two good quarters in a row. We had to trim a little because it's so big.”at 42:00

Chevron

Across the shows: 7 speakers in other episodes, 6 bullish and 1 bearish calls, past 30 days

• Jim Cramer · CNBCBullish

  Chevron is the best oil major to buy, citing its buyback, dividend, and CEO.

  Asked about Chevron as oil prices rise, Cramer calls it the number one oil company in the world and the one to buy. He points to the best buyback and the best dividend in the sector, and to CEO Mike Worth as the best leader in the group.

  “Chevron's the number one oil company in the world. That's the one to buy. It's got the best buyback. It's got the best dividend.”at 43:59

AI infrastructure & data centers

• Jim Cramer · CNBC

  Data center stocks' decline has not run its course; the recent bounce was a dead cat bounce.

  Cramer heard nothing positive about data centers after the public rebuke on Tuesday. He saw no tech numbers that were too low, so he called the rally a dead cat bounce. He says plenty of sellers are waiting for data center stocks to recover so they can sell into the rally, and he thinks the nasty decline has not yet run its course.

  “I didn't feel that any numbers in tech were too low. I felt like it was a dead cat bounce.”at 2:35

• Jim Cramer · CNBC

  Data center trade has too much money riding on it; new sites will be slower and fewer builds than expected.

  Cramer says the club and the charitable trust still hold a lot of money in the data center trade, in both stocks and bonds, so too much has to go right for it to pay off. He disputes Elon Musk's view that data center unpopularity is fleeting, saying Musk has misread voters and politicians. He expects elected officials to slow permits, so new sites will be a slog and fewer builds than expected. Projects once considered a given may not happen, which could bring price target and estimate cuts for semiconductor stocks.

  “We are in a difficult moment where we still have so much money in the data center trade, investing in both common stocks and bonds, that too much has to go right from here to make the trade pay off.”at 44:45

US rates & the Fed

• Jim Cramer · CNBC

  Fed could hike again unless inflation falls sharply; recent rate moves reflect oil, not cooling CPI.

  Cramer says inflation must come down or the Fed, under [Warsh], may hike rates further. He likes the recent bond rally but thinks it reflects the chance that oil prices fall because a war might wind down, not a lower CPI. He says the market needs a surprise, dramatically lower CPI number. He notes rent is still rising and food prices are too high, and he doubts a surprise is likely.

  “inflation must come down if we don't want more rate hikes from Fed Chair [Warsh]. ... I think it reflects the potential for lower oil prices from a war that might wind down and not a lower CPI.”at 4:10

US tax & spending policy

• Jim Cramer · CNBC

  A Democratic win could restore a 35% corporate tax rate, cutting after-tax profits about 18% and lowering multiples.

  Cramer worries Democrats will raise corporate and capital gains taxes. The 2017 cut took the corporate rate from 35% to 21%. Restoring the old rate would be a 67% increase and would reduce after-tax profits by about 18%. He says this would cut the future price-earnings multiple for the whole market and make the long-term capital gains rate potentially match ordinary income. He says this is not imminent, possibly by 2028, and calls all of it negative for stocks.

  “I worry that the Democrats will raise the corporate and capital gains taxes.”at 45:28

Banks

• Jim Cramer · CNBC

  A Senate Banking Committee chaired by Elizabeth Warren would hurt banks.

  Cramer lists the possible consequences of a Democratic win, including new regulations and a Senate Banking Committee chaired by Elizabeth Warren. He says that would not be good for banks. He says these risks are a couple of years out.

  “A Senate Banking Committee chaired by Elizabeth Warren. That won't be good for banks.”at 46:06

AI chips & semiconductors

• Jim Cramer · CNBC

  Semiconductor stocks are vulnerable; analysts may start cutting targets and estimates next week.

  Analysts have defended the stocks all week, but Cramer expects some to break ranks next week and start cutting price targets and estimates. Many chip stocks have fallen substantially from their highs but are still far above support, so he doesn't see how they bounce. He calls the group vulnerable and says it's reckless not to cut back on these names.

  “While many have come down substantially from their highs, the stocks aren't anywhere near support. So I don't know how they can bounce. I regard the group as vulnerable.”at 46:53

US stock market outlook

• Jim Cramer · CNBC

  The US stock market is not yet out of the woods; too much has to go right to get back to highs.

  Cramer says it will take a lot to get the market back to its previous highs. Heavy exposure to the data center trade needs too much to go right. Elected officials are not in a bargaining mood on data center sites. Analyst target cuts for semiconductors may come, and election-related tax and regulatory risks loom. Because of these, he says he is not yet optimistic that the market is out of the woods.

  “I wish I could be more positive, you know that. But as I talk to members today, I don't think we're yet out of the woods.”at 47:25